119) List the four categories of non-store retailing and briefly explain each.
120) In what ways does franchising benefit the franchisor? In what ways does it benefit the
franchisee?
121) List some recent trends in retailing.
122) List some differentiation strategies retailers can use to compete successfully in the market.
123) The growth of “house brands” has skyrocketed in recent years. What benefits do
intermediaries receive from sponsoring their own brands?
124) List the major types of limited-service wholesalers and explain how each type functions.
125) Why do retailers prefer to deal with wholesalers rather than directly with manufacturers?
126) Describe the four steps in market logistics planning.
127) Differentiate between brokers and agents.
128) Sandy’s Stores is a small chain of grocery stores located in a few neighboring towns. The
stores have always been largely self-service, but the company is considering making a switch to
full-service stores. Offer reasons why Sandy’s should stick with its current system.
129) Sandy’s Stores is a small chain of grocery stores located in a few neighboring towns. The
stores have always been largely self-service, but the company is considering making a switch to
full-service stores. What can Sandy’s do to justify this move?
130) Sandy’s Stores is a small chain of grocery stores located in a few neighboring towns. The
stores have always been largely self-service, but the company is considering making a switch to
full-service stores. Offer one possible reason why this move is justified.
131) Skincare company E&OE has realized that its customers are very loyal to the brand and
play a large part in popularizing it by word of mouth. E&OE wants to leverage this customer
loyalty by using it to generate sales outside its store format. How can E&OE achieve this?
132) Mal’s father and grandfather ran Reynold’s, a general store in the town of Bayswater. When
Mal inherited the store, the town was expanding rapidly and a number of multinational
franchisors showed interest in entering the town. Mal wants to turn Reynold’s into a franchise of
Blue Sun, a fast-food chain. What benefits can Mal gain from this move?
133) Mal’s father and grandfather ran Reynold’s, a general store in the town of Bayswater. When
Mal inherited the store, the town was expanding rapidly and a number of multinational
franchisors showed interest in entering the town. Mal wants to turn Reynold’s into a franchise of
Blue Sun, a fast-food chain. Why shouldn’t Mal go the franchise route?
134) Skincare company E&OE retails its products through standalone stores or through its own
stores within malls. The management uses this method so that customers are sure of finding only
E&OE products at the stores and the brand image remains strong. In this scenario, what can
E&OE do to generate consumer interest while retaining its exclusivity?
135) Over the past three years, skincare products retailer E&OE has realized that it is losing sales
to competitors who sell products online. E&OE has always cultivated an exclusive upscale
image, and the management feels that shifting to the online route will only harm the brand image
and sales in the long run. How can E&OE encourage customers to frequent its stores?
136) Imagine that you are in charge of creating a distinctive store atmosphere at a clothing
retailer. What can you do to make your store stand out in the customer experience?
137) Give one example of a retailer that uses stand-alone stores as opposed to stores located in
malls. Why do you think retailers opt for this channel?
138) Supermarket chain Reynold’s is considering making a switch to stocking almost exclusively
private-label products in order to offer customers the lowest prices. Offer reasons why Reynold’s
should think twice before opting to stock exclusively private-label products.
139) Supermarket chain Reynold’s is considering stocking a number of private-label products in
order to offer customers the lowest possible prices. Explain how this strategy could benefit the
company.
140) JGB manufactures the K-Nine brand of dog food that is carried in supermarkets across the
country. The company has always used wholesalers instead of selling directly to the retailers.
However, recently, the sales team at JGB has noticed that wholesalers don’t aggressively
promote JGB’s product line. They often don’t carry enough inventory and therefore don’t fill
customers’ orders fast enough. However, the marketing team insists that the wholesaling route is
the best. What reasons can the marketing team offer to justify this?
141) Reynold’s, a supermarket chain, carries the K-Nine range of dog food manufactured by
JGB. However, the chain does not interact directly with JGB, but obtains stocks from
wholesalers. It has been suggested that Reynold’s save costs by sourcing products directly from
JGB. However, Mal, the CEO of the Reynold’s, insists that wholesalers are the most hassle-free
option for Reynold’s. What can Mal say to justify this?
142) How would merchant wholesaler HCN operate?
143) Jayne runs a small grocery store in a small town. As there are only few customers, the store
does not require to stock goods in large quantities. Explain why sourcing products from a
wholesaler will be beneficial for Jayne.
144) HCN is a wholesaler that supplies consumer goods products to a number of retailers. HCN
has witnessed the worrying trend of its competitors losing out on suppliers, who approach
retailers directly. How can HCN strengthen its relationship with manufacturers and prevent this?
145) ShoeZone is a shoe retailer with outlets across the country. The company is trying to reduce
its inventory and warehousing costs, but needs to keep delivery speeds as short as possible. What
can ShoeZone do to achieve this?
146) E&OE is looking to reduce its inventory costs for all its products. The company realizes
that its inventory depends on the setup costs of its various products. How do setup costs affect
E&OE’s inventory costs?
147) E&OE wants to minimize inventory costs as far as possible. Explain one way by which it
can achieve a near-zero inventory.