Customer is King: Evolution of the Retail Food Industry Essay

It is common understanding that you cannot have a business if you do not have customers to buy the product you produce or services you deliver; therefore customer is an integral part of every business. There was a time when customers was treated less critical and vocal by the businesses and markets was treated just as dumping grounds for the products, however this situation does not prevail anymore because of the tremendous transformation happening in the retail food industry since last five decades. Today customers have more choices than ever before, through more diverse channels. Even the expectations of customer are higher than ever before. Companies who fail to leave up to the expectation are finding hard to get or retain the customers- Majority of the unsatisfied customer do not complain they just change the suppliers. Therefore retailers have realised that the only way to sustain in the competitive market is by being customer centric. (Barnes & Glynn, 1993) Today every businesses treat customer as king and aware that only exceptional level of customer service can differentiate them from the competition in an increasingly saturated marketplace. Customer is often treated as the asset of the company and considered in the strategic level decision making. Therefore I certainly agree with this frequently used marketing cliche â€Å"customer is king†. To better explain my position I have presented my views based on two contexts. The first being how customer is king? This is explained by describing the customer’s role in the evolution of the retail food industry and its implications. The second being why customer is king? This is explained by detailing the significance of customers in the retail food business. The evolution of the retail food industry and its implications: Retail food industry has undergone a tremendous transformation in the last five decades, these transformations can be classified into four different phases- Predevelopment, Development, Saturation and Decline phase (Terbeek, 1999). During the predevelopment phase shopping was a social event, relationships between the customer and grocer was important. Shopping experience was logical, retail was more of a personalised business where the customer was treated as an individual and his or her needs were well known and understood by the businesses. Also there existed a long term personal relationship between the businesses and the customer (Steidtman, 2005). Therefore during this phase more emphasis was given to the customer and customer service, however this situation did not prevail long. During the development phase, small and neighbourhood stores started to decline due to the raise of supermarket. Customers were no more trusting grocer rather they started to trust brands. No longer there existed a personal relationship between the businesses and the customer. Even management was centralised and employees were ignorant of the customer behaviour, old values which existed during the predevelopment stage relating to employee and customer relationship almost disappeared, the customer becomes a consumer. However due to logistics efficiency and introduction in new model of central buying and distribution of standard products to standard stores led in the decline of product prices. Even though retailer was the ultimate connection to the customer but manufacturer had more control over the market demand and retailer was just acting as distributor. Manufacturer assumed that every market was standard and started using push marketing model to sell his products, therefore emphasis on customer was neglected and customer service was taken a backseat (Terbeek, 1999) During the saturation phase the competition between the retailers intensified, there was a rise of many stores even the products increased from 8000 to 30000 items and above, which resulted in making a decision making stressful for the customers. However the growth of the industry slowdown and the real growth for supermarkets came from taking businesses away from each other. Marketing cost intensified because of the competition between supermarkets, even value created by supermarkets become less easy to distinguish because of the availability of the identical products in every store. Therefore Price become the way for many stores to differentiate them, which gave rise to the new mantra of super markets called â€Å"more products and lower prices†. Competition among the manufacturers also heated up which led retailers to get better incentives for the self-space. Therefore retailers was busy concerned on making deal money which was more profitable then customer service, Customer was almost invisible and the relationship between the retailer and the customer no longer existed(Terbeek, 1999). During the decline phase the might of the supermarkets reduced drastically by the entry of fast food chains and low cost department stores (Wal-Mart, Target etc. – which started competing for the stomach share of the consumer. Therefore retailers try to differentiate themselves by introducing new merchandising strategies such as home meal replacement and solution selling, also another strategy for growth was geographic expansion through consolidation and globalisation. Retailers were more concerned on making profits and increasing market share, however even in this phase they neglected the fact that customer is one of the important ass et and failed to be customer oriented. Therefore retailers still moved even further away from the customer. Following the decline phase of the retail food market is the â€Å"current† (2000+) situation which can perhaps be termed as the frictionless phase (Terbeek, 1999). It’s not surprising that in this phase, the focus is once again on the customer. The one size fits all concept of retail is no longer applicable and there is need to deliver personalized services and products on an individual basis to distinguish them from others and to stay ahead in the market. Therefore customer has become the central focus in this era, even the retailers have realised that customer service, customer loyalty and customer retention plays a major role in sales and profitability of the concern. Thanks to Technological transformation, which has enabled retail to return to what it once – a personalised business, today businesses have realised that customer is a strategic asset of the organisation and treating customer as a â€Å"King† is vital for the long term sustainability. Significance of customers in the retail food business: The food and beverage market is often the largest industrial sector in developed economies. In the US, expenditures on food in both retail stores and food service establishments account for nearly 30 percent of all retail spending. Food retailing alone is among the largest of all retailing sectors in most countries(Gomez, McLaughlin, & Wittink, 2003). The most recent Consumer Expenditure Survey from the Department of Labour indicates that 58 percent of food expenditures are on food consumed at home and Groceries represent a $700 billion business in US alone (George, 2005). Due to the market size today retail sector is not only growing in the rapid pace but also becoming more competitive, even the customers have become more demanding than ever. Retailers have realised that the only way to sustain in the competitive market is through differentiation; Rita Heise of Cargill says differentiation must be a top priority of almost any company today (Tuck, 2003). Today differentiation in terms of pricing, product offering are also becoming commonplace so companies need new ways to differentiate themselves. In the verge of finding differentiating strategies, retailers have realised that the only way of differentiating them form others is by being customer centric(Gomez et al. , 2003). Today customers are vital for the retail businesses, treating customers like a King is really important because this leads to more satisfied customers. The more satisfied the customers are, the more loyal the customers will be- which in turn helps in maintaining customer loyalty. Therefore customer satisfaction, customer loyalty and customer retention all these three terms are interrelated which has a significant impact on the profitability, sales and market share of the businesses. Customer satisfaction: Customer satisfaction and retention are generally considered among the most important long term objectives of firms (Cooil, Keiningham, Aksoy, & Hsu, 2007). The satisfied customers will remain loyal to the company and also create a positive brand image by word of mouth. In recent research of over 1,000 kiwis, respondents said they were twice as likely to tell others about a bad experience over a positive one. With stories being told online, rather than person-to-person, they are accessible to a much wider audience and live on long after the initial compromising incident occurred (Meyer, 2011). Therefore businesses which fail to meet the customer expectations will not only lose customers but also may create a negative brand image. Linking customer satisfaction and customer loyalty/retention: The marketing concept suggests that a satisfied buyer will likely return to purchase again, or at least, consider purchasing again(Keith, 1960). According to Reichheld and Sasser repeat customers cost less to serve than new buyers, benefiting a firm’s cost structure. Additionally, maximizing customer retention rates and minimizing customer defections are primary strategic objectives for most firms because of the competitive retail environment and low switching costs(Reichheld, 1990). Customer satisfaction is positively linked to loyalty and customer retention, therefore businesses should be customer oriented in order to maximise the profits, market share and also to increase the sales. Linking profitability or market share to customer satisfaction and customer loyalty: According to one study, a 2 percent increase in customer retention has the same effect on profits as cutting costs by 10 percent. Similarly, a 5 percent reduction in customer defection rate can increase profits by 25-125 percent (Min, 2011). It is logical that both satisfaction and loyalty are directly related to profitability(Pleshko & Baqer, 2008). Loyal and satisfied customers will increase the customer base by positive word of mouth advertising, which in turn increase the market share and also the sales, even lowers the market retention costs. Satisfied and loyal customers gives businesses a clear understanding about their needs and wants which helps the retailers to grow businesses and profits based on their deep knowledge and understanding of customers. Satisfied customers also create brand equity and even retailers will be insured with better protection during downturn- due to more loyal customers. Therefore today retailers are continuously focusing on keeping their customers happy and satisfied. Businesses which do not satisfy the customers run the risk of customer base eductions, smaller sales and also lose the market share for the retailers who serve better to the customers. Being customer centric cannot be treated simply as the strategy of an individual company because modern food system is complex, dynamic and international (Schaffer, 1998). It includes suppliers of farm inputs, agricultural producers, packaging suppliers, processors and manufacturers, commodity merchants, wholesalers, food retailers, restraints, institutions, and facilitating industries etc. (Schaffer, 1998). Therefore to be successful and competitive, all the players in the food system should be customer centric. Businesses in the food supply chain have realised this and every businesses are taking customer centric approach in the recent years. Today’s retail market in the developed world are becoming more customers centric and treating customers as Kings because retailers have realised that customer centric approach is directly linked to profitability of the firm and also can become a key source of competitive differentiation. By excelling at the strategic customer-centric approach can deliver a superior shopping experience that could not only result in consistently high customer satisfaction but also might encourage customers to shop more often and spend more with their favoured retailers. Therefore we can say that today businesses have realised that customers have the power to dictate their profits, market share and also the sales in the businesses, so treating customers as Kings has become vital for the retail businesses success today.

Obesity Has a Deep Impact in the Life of a Child Essay

Using the Center for Writing Excellence and MyFoundationsLab resources, provide the topic sentence and informal outline for your Personal Ethics Statement. †¢ Topic sentence: Obesity has a deep impact in the life of a child. †¢ Informal outline: 1. Explain how obesity affects the child’s physical health. 2. Explain how obesity affects the child’s mental health. 3. Give ideas of how parents can be involved in the change of habits in the obese child. 5. Summarize why obesity has a deep impact in the life of a child. Obesity has a deep impact in the life of a child, physically, and mentally as well. An obese child is at risk of having health problems, such as diabetes, heart disease, and strokes as an adult, if he or she is not treated in an early age. An overweight child can be a target for bullying at school, making his or her social life poor, creating anxiety, depression, and lowering their self esteem. The parents play an important role in the life of an obese child. does not matter if the child is obese because a genetic factor, or just because his or her does not have a proper eating habit, the condition it is treatable. Encourage the child to follow a healthy diet, being an example for him or her, and being supportive, are examples of how a parent can be involve in the life of an obese child. Taking obesity in a child seriously, and trying to find ways to improve this condition, are the first steps to a better future in an obese child’s life.

Debenhams International Expansion Strategy Essays

Debenhams International Expansion Strategy Essays Debenhams International Expansion Strategy Essay Debenhams International Expansion Strategy Essay DEBENHAMS INTERNATIONAL EXPANSION STRATEGY History Debenhams is a chain of department stores based in the United Kingdom. Debenhams Retail Plc is part of the Debenhams Group of Companies. The company started as a retail outlet in 1778 with a nice British gentleman, William Franks and a fancy boutique: expensive fashionable clothing, gloves and bow ties, only for high class London society and grew to acquire other stores in town and cities in the UK such as Pauldins in Manchester and Browns of Chester. Most stores retained their former identities until a unified corporate image was rolled out across the stores. Debenhams was listed on the London Stock Exchange in 1928 and continued to expand. In 1985 the company was acquired by the Burton Group. At this point the company owned 65 stores. Debenhams demerged in 1998 and was once again listed as a separate company. Nowadays Debenhams is a business listed on the stock market, with about 200 stores in UK and worldwide and an annual turnover of 2,3 billion GBP, especially after the quick expansion through the 90’s. Debenhams stores are departmentalized as follows: Health and Beauty; Women’s wear; Menswear; Fashion Accessories; Young Fashion; Home; Children’s wear; Media Entertainment (ME depts. n all stores closing early 2004); Food Services; Customer Accounts. Debenhams stores vary greatly in size from country to country and from city to city; smaller stores do not have a full range of departments. A major source of business is concessions. These are shop-in-shops which can be found in most Debenhams stores such as Young Fa shion companies Oasis and Ladieswear outlet Evans. The companys innovation has proved successful by introducing branding into its mens and ladieswear lines. The Designers at Debenhams include Jasper Conran , John Richmond and John Rocha. In 2002 the Nectar loyalty card was introduced with Debenhams as a major sponsor. This card now allows customers to collect loyalty points from a range of retailers such as Sainsburys, BP, Barclaycard, Vodafone and Ford amongst others. Despite some criticism, the Debenhams Account Card is still a major source of revenue for the company ensuring customer loyalty and targeted mailings. The company was taken over by a private consortium later in 2003 and their exact future is uncertain in terms of future development.

5 Great Career Paths You Can Take if Youre Working in Retail

5 Great Career Paths You Can Take if Youre Working in Retail Working in retail and wondering whether there’s any upward mobility? Just remember that actually selling items in store is only about 56% of the retail picture. The other 44% of retail employees are working behind the scenes in design, marketing, admin, and logistics. Chances are you have skills that could transfer to these non-sales positions and help you move up the corporate ladder- or to another industry entirely. Cross-training here is key. Find a way to build your expertise in the most in-demand skills in your field, i.e. project management, people management, leadership, customer service, operations, and, yes, sales.Take every opportunity you can to build your arsenal and develop these skills, and build your retail resume. Then you’ll be ready to consider making the jump to one of these 5 promising careers in retail.1. Field ManagementIf you can work your way up to Store Manager, there’s nothing to stop you advancing to Area or District Manger. From there, you could become a Regional or Field Manager and oversee some 50 stores. You’ll need strong leadership and coaching skills, and the ability to manage others effectively, but it can be quite rewarding and lucrative. Expect to make anywhere from $42k to well over $60k per year.2. Visual MerchandisingIf you really like store work, and are creative and very attentive to branding details, you might be a good fit as a visual merchandiser. Make the store look great and help draw attention to what’s special about your store’s brand. Determine the shopper’s experience, what they see, and where. You can work either in the field or in the corporate office, and you can expect to make between $40-50k per year.3. Buying/PlanningBuyers and planners make the decisions about what things (and how many of each) should go in stores. Buyers procure things from wholesalers and Planners are in charge of the logistics of getting products from point A to point B (the shelves). Y ou’ll have to have a good sense of the brand, plus a bit of knowledge about supply and demand cycles, but the range for each position is wide: between ~$45 and over $95k per year.4. Supply Chain ManagingYou’ll have to have a good financial head on your shoulders and be an extremely competent project manager, not to mention know a thing or two about procurement, contracts, and legal and ethical issues. But you could work your way from a driver or warehouse worker to dispatch and beyond. Cross-cultural comfort is an asset here, and the pay scale ranges from an average of $59k per year to over $84k.5. Security/Loss PreventionIt can be a good gig making sure no one runs off with the merchandise. Loss Prevention Managers, i.e. specialists in security and loss prevention, can be brought in to stores to work undercover and prevent theft- and can make an average of $45k (or as much as $64k) per year.The bottom line is this: Retail jobs aren’t just about ringing purchase s and completing returns. If you like the field, there are many upwardly mobile career opportunities just waiting for you to pursue them.

Evaluating human resource management Essay Example | Topics and Well Written Essays - 2500 words

Evaluating human resource management - Essay Example A large number of firms and organizations are offering flexible working arrangements for their employees, as a strategy to retain them by satisfying them to an extent. These arrangements help the employee in maintaining balance life between career and family, this way it motivates the employees to give productive results by working in an efficient manner. Although the advantages derived from flexible working arrangement are considerable, still due to a large number of reasons it is not carried out in an efficient manner in the firms. In this paper, we address the benefits derived by firms by opting flexible working arrangements, the issues faced by them and the various methods by which the obstacles can be overcome. The data was derived upon after referring to surveys which were done in the past and also based on the results of the questionnaire which was filled in by the professional employees.The term ‘human resourcing’ is used to describe a set of principles through which the strategic possibilities of an organization’s workforce and employment structure is evaluated. The methodologies of human resourcing derive from two concerns ( Zeytinoglu,1999) :1. The auditing of current human resources in relation to possible future product/ service and labor market scenarios.2. The promotion and maintenance of optimal human resource performance through the management of work patterns and organization structures.... This approach rested on three sequential steps (Catalyst,1997): 1. An estimation of the organization's future manpower needs in terms of numbers andskill composition. 2. An analysis of labor flows into, within and out of the organization, and the ability ofrelevant labor markets to supply existing or future demands. 3. The identification of gaps between supply and demand and the development ofpolicies to 'close' these. LITERATURE REVIEW The need to consider strategic planning for human resources has been recognized in the HR literature over the last couple of decades and more recently by chief executives and senior HR specialists. Various external factors - such as move towards globalization, changing economic trends, changes in the demographic-make up of the labor force and the shortage of key skills, knowledge and experience - have contributed to the urgency with which the subject is now debated. Also there is a realization between organizations of the changing and more 'flexible' nature of the workforce and their need to combine diverse careers with their personal lives. In essence manpower planning has been associated with a more tactical approach of getting the right people, with the right skills, in the right place, at the right time. The definition of 'right' is not made in the literature, but should be taken to mean 'what is right for a particular organization'. Part of the difficulty with this rationale is its static nature, where people are seen as a cost to the organization (Walsh, 1999) instead of an investment. The focus of manpower planning is on management and control. It usually includes various

Korea impacted by cold war, changes of the country 1991-2014 Assignment

Korea impacted by cold war, changes of the country 1991-2014 - Assignment Example In terms of economics, the greatest change was that South Korea came to integrate with the global economy to a more full and complete degree. As a result of the continual threat of invasion and the protective shield the United States provided, South Korean markets were almost entirely restricted to US export. Although this was not based on extant treaty obligations, it is clear and apparent that the United States sought to defray the massive cost of having a military presence in South Korea by essentially creating a captive market for American products and a captive market for most exports (Ginsberg, 2014). Societal changes that have taken place within Korea are mainly contingent on the societal changes that globalization has provided over the past several decades. Essentially, recognition of the fact that Korean culture is unique but not the only means by which social norms should be constructed has come to play a primary role with respect to the way in which individuals live their lives, order their families, and seek to deport themselves (Dong-Hoon & Jungmin, 2014). Changes to expectations of morality and other issues pertaining to the way in which the average Korean lives their lives have also fundamentally changed as a result of the fact that after the collapse of the Soviet Union and the end of the Cold War there has been a much lower focus on the need for upholding existing tradition. Whereas this is not to say that tradition does not play a valuable role in the life of the average Korean, its prominence now as compared to 20-30 years ago is most demonstrably diminished. Of all of the changes that have been effected, the area of gender roles are likely the most recognizable shift that has taken place since the collapse of the Soviet Union and the end of the Cold War. With the impact of globalization and western norms that flooded South Korea as a result of this geo-political shift and the increased

Enterprise Development Essay Example | Topics and Well Written Essays - 750 words

Enterprise Development - Essay Example No it is not! It is also not possible for a gambler to gain consistently over a large period of time. Even the best of gamblers lose money consistently which proves that the role of chance is quite significant in gambling. This is not the case in entrepreneurship because there are many examples where entrepreneurs have earn large returns over a long period of time. Entrepreneurs and gamblers are different in the way that gamblers leave many things to chance whereas entrepreneurs do not (Wee, Lim, & Lee, 1994).There is no doubt that the role of chance in the success of an entrepreneur is also not negligible but this is nowhere similar to chance taken by gamblers. Entrepreneurs like Bill Gates, Mark Zuckeberg etc all started their business as entrepreneurs but today they are known to the whole world. This cannot be said for any known gambler of the world. Entrepreneurship is not gambling because there are many controllable factors in entrepreneurship. Entrepreneurs have a lot of control in how they manage their business and risk which is why entrepreneurship is not equal to gambling. Entrepreneurship is much more than gambling as it involves studying markets and taking calculated risks in hope of yielding high returns. One can easily gauge customer demand and using sampling and other procedures to do a trail run in order to test a particular product or service. Measures like these can be taken to cut down the risk and decrease uncertainty of any business. This is why gambling cannot be equated to entrepreneurship. There are many factors that play a role in the success of entrepreneurs like innovation, strong will, and farsightedness. All these factors decide whether an entrepreneur will be successful in the longer run or not. This shows that the success and failure of entrepreneurial ventures is not dependent on chance but on factors like innovation. Will innovation, strong will, and farsightedness makes a gambler