零售学英文论文.doc

National Chiao Tung University
Department of Management Science
De

Final Examination

Term: Fall Year: 2009

Student Name (Chinese Characters): 關樂生 Student ID Number: 9531049
Student Name (Chinese Characters): 許育凡 Student ID Number: 9632035
Student Name (Chinese Characters): 吳東陽 Student ID Number: 9631051

Course Abbreviation and Number DMS4633

Course Title 零售學, Retailing

Instructor 張力元老師, Professor Trappey

Final Project Final Project
Due Date January 7, 2010
Number of Homework Pages 25
Homework Type Group, typed, class hand-in, e3 log
Additional Materials Allowed Textbook

Marking Scheme:

Grade:
1

Table of Content
Introduction 1
Literature Review 1
Section I: Family Mart 2
Research Background 2
Research Objects 2
Types of Merchandise 2
Variety and Assortment 3
Services Offered 4
Prices and the Cost of Offering Breadth and Depth of Merchandise and Services 4
Customer Buying Behavior 4
Retail Market Strategy 4
Section II: Bellavita 5
Research Background 5
Research Objects 5
Types of Merchandise 5
Variety and Assortment 5
Services Offered 6
Prices and the Cost of Offering Breadth and Depth of Merchandise and Services 6
Customer Buying Behavior 7
Retail Market Strategy 7
Section III: H&M Location 7
Introduction 7
Product’s Categories & Markets 8
Supply Chain 8
Why no H&M in Taiwan? 9
ECFA 9
The Economic and Political condition 9
Competition 10
Comparison 10
Locations in Hong Kong and Taiwan 11
Trade area 12
i Taipei – Q square 12
ZhongXiao DunHua TongLin Department Store and Breeze ZhongXiao 13
Hankyu Department Store 13
Huff Gravity Model 14
Transportation Categories 15
Section IV: Costco 15
Introduction 15
Membership Warehouse Club 15
History 16
Retail Market Strategy 16
Target Market Strategy 16
Products 16
Promotions 17
Price 17
Presentation 18
Layout 18
Personnel and Customer Service 19
Human Resource Management 19
Human Resource 19
Objectives 19
Organizational Structure and Plan 20
Information System 20
Customer Relationship Management 20
Merchandise Management 20
Managing Merchandise Assortments 20
Warehouse 21
Conclusion 21
References 22

22

Introduction
To realize the whole concept of retailing, we try to analyze four retailers-Family Mart, Bellavita, H&M and Costco-in Taiwan Market. From different manners of retail concepts-such as types of retailers, customer buying behavior, retail market strategy, retail locations, human resource management, information systems and supply chain management, customer relationship management, merchandise management and customer service- we realize the basic knowledge of retailing. We discussed the four store through the semester and then make some survey to apply the retailing concept.
Literature Review
Retailing is the set of business activities that adds value to the products and service sold to consumers for their personal or family use.* In the retailing world, retailing managers need to know the environment in which they operate before they can develop and implement effective strategies. So what they do first is to realize the customers’ buying behavior, from observing customers’ daily buying behavior. Then they make retailing strategies based on these observations. Finally, they implement the effective strategies.
Variety is the number of merchandise categories a retailer offers. Assortment is the number of different items in a merchandise category.* Different kinds of retailers have different combinations of these two characteristics. Specific kind of combinations will attract different kinds of customers. How to choose proper products and services combinations and variety becomes an important thing to the retailing managers.
Customers usually have their own buying behavior based on the following process: need recognition, information research, evaluation, choice, visit and loyalty.* An effective retail strategy satisfies customer needs better than do competitors’ strategies. Use the information of customer buying behavior, we know about how consumers can be grouped into market segments. How individual customers evaluate and select stores and merchandise, the factors affecting their decision making and retail market segment are three important manners for retailers.
A retail strategy is a statement identifying: the retailer’s target market, the format the retailer plans to use to satisfy the target market’s needs, and the bases upon which the retailer plans to build a sustainable competitive advantage.* The growing intensity of retail competition—due to the emergence of new competitors, formats, and technologies, as well as shifts in customer needs—is forcing retailers to devote more attention to long-term strategic planning. The retail strategy provides the direction retailers need to deal effectively with their environment, customers and competitors. Three important elements of retail strategy—the target market segment, retail format, and sustainable competitive advantage—certainly influence the direction of the retailer to face and grow.
Section I: Family Mart
Research Background
Family Mart was introduced from Japan in 1988 and the company was founded on August 18 with NTD$0.2 billion capital. In the same year, the first store “Taipei Main Station Branch” opened in the Taipei train station area. Until Sep. 2009, there are already 2,387 Family Mart branches opened in Taiwan.* Family Mart, being a convenience store, offers useful things in the daily life in a very convenient way. The object we chose in this report is located near the Dormitory Thirteen in National Chiao-Tung University (NCTU). The surrounding in this store is bright and clean. The estimated floor space is 81 square meters ( 10.8 * 7.5 ).
Research Objects
Types of Merchandise
The types of merchandise in Family Mart are described in Table.1. They can firstly be divided into cigarettes, fast food, cold drinks, drinks, frozen foods, snacks, instant foods, media goods, household, prepared goods, and health and beauty items. During the merchandises, we can obviously realize that there are no really major brands in the category Media goods, Household, Health and Beauty items, which is marked “balanced” in the tree diagram. But for the categories of others, especially for the fast food and prepared foods, there are major brands and most for Family Mart itself as listed in Table 1 below.

Table 1 Types of Merchandise in Family Mart
Category
Type
Major Brand
Cigarette
Cigarette
Mild Seven
Fast Food
Rice Balls
Family Mart
Lunch Boxes
Sandwiches
Fruit
Noodles
Jelly and Puddings
Cold Drinks
Milk
Kuang Chuan
 Drinks
Tea
Uni-President
Coffee
Uni-President
Juice
Uni-President
Drinks
CocaCola
Cigarette

Mild Seven
Frozen Foods
Microwave Foods
Family Mart
Snacks
Chips
Lay’s
Chewing Gums
Airwaves
Bread

Family Mart
Instant Foods
Instant Noodles
Uni-President
Instant Coffees
King Car
Instant Tea
Uni-President
Household
Household

Prepared Foods
Prepared Foods
Family Mart
Healthy and Beauty
Healthy and Beauty

Variety and Assortment
For a convenience store, Family Mart plays a good role on this. They have different kinds of products for people daily lives. With a huge variety, you can find various kinds of products you need in Family Mart, but may not be all what you want. Basically, Family Mart offers you the basic needs of daily life. And for the storage of Family Mart, there are nearly 600 SKUs in their storage, except of the fresh foods, prepared foods, and fast foods. As illustrated in Fig.1, it shows the variety and assortment in Family Mart.

Fig. 1 Floor Diagram of Family Mart
Services Offered
To do the whole service of daily operation, for Family Mart, there would be three people working in every period. But in the midnight, there would be fewer servers in the store. To provide sufficient services, such as copy, fax, ticket order, and food heating, they adjust number of servers to hand all conditions. The servers always open one cashier when they are not in the busy hours, and in the rush hours, usually in the dining time, they open two cashiers, to prevent a long waiting period.
Prices and the Cost of Offering Breadth and Depth of Merchandise and Services
Most of merchandise won’t have high cost. For the food (including frozen food), drinks, and snacks, their costs are about from 15 to 60 NT dollars. Cigarettes are belonging to higher cost level, and their average costs are 20 to 30 NT dollars. Media goods’ cost are higher than food, they are estimated about 50 to 300 NT dollars. Household includes bigger varieties, so the cost of the household from about 10 to 250 NT dollars. Family Mart keeps the amount as twice as the good on the shelves, except of food that easily get rotten.
Customer Buying Behavior
Because there are not lot’s of brand for each type of merchandise, except snacks. The consumers who go to the Family Mart usually don’t put emphasis on the brand, but they choose the exactly merchandise they want. Usually they buy bread, milk, or juice in the morning before 11 o’clock as breakfast, for easy to carry to the class. In the lunch time and dinner time, consumers go to Family Mart for some instant food or frozen food. These three times are most crowded time, and the other times are not as busier as the rushers. There are still consumers go into the store to buy some other things, like drinks or snacks. Because the convenience store mainly offers the daily items, consumers go there to buy some immediately things they want.
Retail Market Strategy
As mentioned in background, Family Mart was founded on August 12 1988 with NTD$ 0.2 billion capital. In ten years, Family Mart opened 500 stores in Taiwan. With store expansion, Family Mart was listed company in 2002, with NTD $ 2.23 billion. With the spirit of innovation, Family Mart has successfully introduced new services that brought in profits and better services for customers. For instance, in 198 the company launched the payment service for parking fees in Taipei city, pioneering in the industry. In 2002, Family Mart created the pre-order service for Chinese New year’s banquets, also a whole new business model in the industry. In 2005, the company introduced Virtual Distribution Center, which enables game point card selling through information system, not physical logistics. Service is the driving force of Family Mart’s competitiveness. Family Mart tops the convenience store category in the survey on service capability conducted by the Global Views magazine for 2004, 2005 and 2008.
Section II: Bellavita
Research Background
Bellavita is a new shopping center that held it’s opening on September 21, 2009. Bellavita own the luxury stores of international top brand was kept eyes on by the high-scale clients, which Taipei 101 and Breeze Center might not have reached in the past, and aims to give these “walking spending powerhouses” tailor-made services. With 20,879 square meter, Bellavita houses more than 15 international luxury brands including BVLGARI, Christofle, Hermes, John Lobb, Roger Vivier, Tod’s, Giuliano FUJIWARA, etc. to attract customers shopping. With different kinds of retailer brand stores, how Bellavita organized is now we are going to discuss.
Research Objects
Types of Merchandise
As mentioned in Fig. 2, the merchandises of Bellavita can be grouped as the floor directory. We can classify them into several parts, food, luxury products, life style, and body shaping, etc. As for the major brands, for every store in Bellavita, there are all major brands since the retailing type is a shopping center.

Variety and Assortment
We conclude the variety and assortment of Bellavita as Table 2 below.

Table 2 Variety and Assortment of Bellavita
Floor
Brand
Type
B1
Starbucks
Coffee shops
1F
Bar & Restaurant a3
Sandwiches shops
Bvlgari
Jewelry
Christofle
Silverware
Hermes
Clothes
Hermes、Puiforcat、Saint Louis
Metal Plates
John Lobb
Shoes
Roger Vivier
Shoes
Tod’s
Bags, Clothes
Van Cleef & Arpels
Jewelry
2F
03
Clothes
Giuliano Fujiwara
Clothes
Brand
Type
Level 6ix
Clothes
3F
Salon De The de Joel Robuchon
Coffee, desserts
Eros
Hair stylist
Socie
Body stocking
4F
Beata Te
Restaurant
Haleakala
Restaurant
5F
L’atelier de Joel Robuchon
Restaurant
6F
Ton 28
Restaurant
Services Offered
For Bellavita just open for few days, many services are still in planning. For example, the special service for VIP and the website of Bellavita. Moreover, all stores and floors have not opened for customers yet. In the opening day, Bellavita provided some services like free parking service and the waiters help to place dishes for free.
Besides, the famous stores in Bellavita provide different services. For example, Borsalini and Job Lobb provide products of personalization and customization.
Prices and the Cost of Offering Breadth and Depth of Merchandise and Services
To collect famous luxury store, Bellavita plays a good role to provide high price products, with good service of every brand store. Focus on high-end customers, what Bellavita provides some limited categories during the stores, such as shoes, clothes, foods, desserts, body shaping, etc. In the manner of merchandise depth, Bellavita provides only the types of products that the stores being famous. With narrow breadth and large depth of merchandise, the prices and cost of offering the products are high. For example, a hand-made pair of shoes of John Lobb is priced above 127,000 NT dollars; a hand bag of Roger Vivier is priced from 170,000 to 900,000 NT dollars.
Customer Buying Behavior
Most of the consumers in Bellavita do window shopping, or just enjoy the environment of Bellavita—build like a European palace. Focus on high-end customers, people who can afford the high prices of products usually just pick up what they want and pay for them, as the custom shopping behavior for most customers in ordinary department store. But for other people, they usually come to Bellavita just for feeling the glory and beautiful environment, or they try to buy products with a test attitude. Besides, customers of Bellavita usually come for shopping during afternoon and night of a day. There are no obviously peak hours in Bellavita.
Retail Market Strategy
With more than 8 billion NT dollars investment, Bellavita was held on Sep 21, 2009. C.C. Leung, Quanta Computer Inc’s vice chairman and president, use five years to build up this shopping mall, focusing on high-end customers including Taiwan and Mainland China. In the manner of focus customer group, with the structure of luxury brands, Bellavita makes a definite manner on rich customers. As mentioned in the textbook, Bellavita can be located in the first class of department store: includes upscale, high fashion chains w