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International Retail Marketing Dedication International Retail Marketing Dedication Michael, Sarah and Matthew Carter To Mrs Moore – thanks for fish suppers To Chloe International Retail Marketing A Case Study Approach Edited by Margaret Bruce, Christopher M. Moore and Grete Birtwistle AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Elsevier Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington, MA 01803 First published 2004 Copyright © 2004, Elsevier Ltd. All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (ϩ44) 1865 843830, fax: (ϩ44) 1865 853333, e-mail: [email protected]. You may also complete your request on-line via the Elsevier homepage (http://www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 5748 0 For information on all Elsevier Butterworth-Heinemann publications visit our web site at http://books.elsevier.com Typeset by Charon Tec Pvt. Ltd, Chennai, India Printed and bound in Great Britain Contents List of figures xi List of tables xii Preface xv Foreword xvii List of contributors xix Acknowledgements xxiii Introduction xxv Section 1 Perspectives of international retailing 01 1 Retailing within an international context 03 Christopher M. Moore and John Fernie 1.1 Introduction: who are the international retailers? 03 1.2 The nature and scope of retailer internationalisation 06 1.3 The motivations for international expansion 11 1.3.1 Push and pull of retailer internationalisation 12 1.4 The direction of international expansion 14 1.5 Methods of market entry 16 1.5.1 International market de-entry: divestments and withdrawals 20 1.6 Strategies for managing foreign operations 21 1.6.1 Towards a conceptual framework of retailer internationalisation 23 1.6.2 Conceptualising the future: international retail strategies 26 1.7 International fashion retailers’ strategies 27 1.7.1 Fashion experiences 28 1.7.2 Fashion boundary extension 30 1.7.3 Fast fashion 31 1.8 Concluding remarks 34 References 35 Study questions and guideline answers 37 2 Retail logistics 39 John Fernie Aims 39 2.1 Introduction 39 2.2 Supply chain management: theoretical perspectives 39 2.3 Efficient consumer response 45 2.4 The retail supply chain 47 2.4.1 Differences in logistics ‘culture’ in international markets 50 2.5 Consumer choice and retail formats 51 2.6 Manufacturer–retailer relationships 51 2.7 Logistics cost structures 53 2.8 Role of the logistics service provider 54 2.9 The internationalisation of logistics practice 54 vi Contents 2.9.1 Tesco in Ireland and Poland 54 2.9.2 Ahold in Europe 55 2.10 Future challenges 56 2.11 Solutions to the last mile problem 59 2.12 Outsourcing of home-delivery operations 60 2.13 Summary 61 References 62 Study questions 63 3 The anatomy of retail buying 64 Christopher M. Moore 3.1 The importance of buying and merchandising 64 3.2 The principle buying activities 65 3.2.1 Analysis of trading market opportunity 65 3.2.2 The development of a buying plan 65 3.2.3 Management of the supplier strategy 66 3.2.4 Product development for own-brand ranges 66 3.2.5 Marketing of products and presentation at point of sale 68 3.3 The nature and characteristics of retail buying structures 68 3.4 Evaluating buyer’s performance 69 3.4.1 Financial and resource performance measures 70 3.4.2 Customer satisfaction indicators 70 3.4.3 Innovation and market-development measures 70 3.5 New supplier selection and evaluation 71 3.6 Summary 74 References 74 Study questions and guideline answers 75 4 Retail store design 78 Stephen Doyle 4.1 Introduction 78 4.2 Definitions of design 78 4.2.1 Background 78 4.3 The design principles 80 4.3.1 The principle of totality 80 4.3.2 The principle of time 81 4.3.3 The principle of value 81 4.3.4 The principle of resource 81 4.3.5 The principle of synthesis 82 4.3.6 The principle of iteration 82 4.3.7 The principle of change 83 4.3.8 The principle of relationship 84 4.3.9 The principle of competence 85 4.3.10 The principle of service 85 4.4 Conclusions 86 References 87 Study questions 87 Section 2 Issues and cases 89 5 The scope of e-commerce in retail strategy 91 Ruth Marciniak and Margaret Bruce Contents vii Aims 91 5.1 Introduction 91 5.2 What is retail strategy? 91 5.3 Definition and scope of e-commerce 92 5.4 Appropriate goods and services for selling online 95 5.5 What is e-commerce strategy? 95 5.6 Stages approach to e-commerce evolution 96 5.7 Positioning in e-commerce 97 5.8 Market opportunities via e-commerce 98 5.8.1 Market penetration 98 5.8.2 Market development 98 5.8.3 Product development 99 5.8.4 Diversification 100 5.9 Clicks and bricks retailing: integration or separation? 101 5.9.1 Brand 101 5.9.2 Management teams and operations 102 5.9.3 Equity 102 5.10 Conclusion 103 References 104 Study questions and guideline answers 106 6 The emergence of supply chain management as a critical success factor for retail organisations 108 Tony Hines Aims 6.1 Introduction 109 6.2 Historical developments 109 6.2.1 Metaphorical descriptors: pipelines, chains and networks 109 6.2.2 Levels of analysis 110 6.3 Themes in the literature 110 6.3.1 Transaction costs 110 6.3.2 Manufacturing supply chains and efforts to lower inventory costs 110 6.3.3 Time compression and responsiveness 111 6.3.4 Recent concerns with ethical trading and environmental issues 112 6.3.5 Strategic perspectives 112 6.3.6 Supply chain structures and relationships 112 6.3.7 Empirical evidence 113 6.4 Why quick response? 114 6.5 Mass customisation 115 6.6 Electronic-business strategies, fulfilment and digital supply chains 116 6.7 Future directions and research agenda 117 References 118 Study questions and guideline answers 120 7 Young consumers: the influence of celebrity on clothing choices 123 Emma Bannister and Heva Nejad Aims 123 7.1 Introduction 123 7.2 Young consumers 123 7.3 Marketing to children 124 7.4 The celebrity endorser 125 viii Contents 7.4.1 The endorsement process 126 7.4.2 Celebrity effectiveness 126 7.4.3 Possible negative consequences of celebrity endorsement 127 7.5 Children’s media 128 7.6 A study of young female consumers and celebrities 129 7.6.1 Focus groups 130 7.6.2 Findings 131 7.6.3 Awareness of celebrities 131 7.6.4 Celebrity personality 131 7.6.5 Celebrities and clothing 132 7.6.6 Recognition of celebrities’ fashion and style 133 7.6.7 Celebrity endorsement 134 7.6.8 Appropriate endorsers 136 7.6.9 Media preferences in the endorsement process 136 7.7 Conclusions 137 References 138 Study questions and guideline answers 139 8 Undressing the ethical issues in fashion: a consumer perspective 141 Deirdre Shaw and Dominique A.C. Tomolillo Aims 141 8.1 Introduction 141 8.2 Defining fashion and clothing in an ethical context 142 8.3 Ethics and fashion in today’s marketplace 143 8.4 Ethical consumers and clothing in the UK 144 8.5 Research findings 145 8.5.1 Focus groups and in-depth interviews 145 8.5.2 Ethical issues 145 8.5.3 Attitudes towards fashion 146 8.5.4 Behaviour 146 8.5.5 Difficulties 147 8.5.6 Normative influences 148 8.5.7 Feelings 149 8.5.8 Salient beliefs 149 8.6 Conclusions and implications 150 References 151 Study questions and guideline answers 152 9 A contemporary analysis of global luxury brands 155 Tim Jackson Aims 155 9.1 Introduction 155 9.2 Luxury or fashion? 155 9.3 What is luxury? 157 9.3.1 What is a luxury brand? 158 9.4 Brand personality 159 9.5 National image 159 9.6 Quality and heritage 160 9.7 Main markets 161 9.8 Structure of the luxury goods industry 161 9.8.1 The major groups 161 9.8.2 Moët Hennessy Louis Vuitton or LVMH 161 Contents ix 9.8.3 Gucci Group NV 163 9.8.4 Prada 164 9.8.5 Multi-brand expansion 165 9.8.6 Management and creative partnerships 166 9.8.7 Distribution 166 9.9 Luxury unlimited? 167 References 168 Study questions and guideline answers 168 10 International bank retailing: identifying cross-cultural differences in consumers’ service-quality expectations 170 Anne Smith 10.1 Introduction 170 10.2 Aims 171 10.3 International retailing within a services context/the impact of technology 171 10.4 Examining cross-cultural differences: problems of defining and classifying culture 173 10.5 Determinants of consumers’ service-quality evaluation 175 10.6 Relationships between consumers’ service-quality evaluation and their behaviour: evidence of cross-cultural differences 178 10.7 Collecting cross-cultural perceived service-quality research data 180 10.7.1 Cross-cultural research: the need for equivalence 180 10.7.2 Assessing the potential impact of response styles on cross-cultural service-quality data 181 10.8 Conclusion
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