Short Term

• Increasing Employee Productivity

• Productivity=Sales/Number of Employees

Long-Term

• Employee atitude-> customer satissfaction and loyalty-> long term performance

• Increasing Employee Satisfaction-> Reducing Turnover

• Employee turnover

=# of employees leaving their job during the year OVER

# of positions

Employee Response:

• Decreased motivation and effort
• Poor customer service
• Lower job satisfaction
• Greater turnover

This all leads to Financial performance problems:

• Low profits
• High costs

This then leads to Retailer's response:

• Layoffs
• Freeze on hiring and promotion
• Reduced training
• Salary freeze
• Greater use of part time employees and more outsourcing. 

National(Manufacturer) Brands

• Designed, produced, and

marketed by a vendor

and sold by many

retailers

Private-Label(Store)Brands

• Developed by a retailer

and only sold in the

retailer’s outlets

Categories of Private Brands

Premium-Comparable to, even superior to, manufacturer’s brand quality, withmodest pricesavings

Copycat-Imitate the manufacturer’s brand in appearance and packaging, perceived as lower quality, offered

at a lower price

Exclusive Brands-Developed by a national brand vendor and sold exclusively

by the retailer

 Generic Brands-Target a price-sensitive segment by offering a no-frills

product at a discount price 

• Attract Customers
• Build loyalty
• Higher prices leading to Higher gross margin
• Reduced promotional expenses
• Facilitates entry into new markets. Gap-->Gap kids

• Promises consistent quality 
• Simplifies buying process
• Reduces time and effort searching for information about merchandise/retailer

Interactive/online: Direct marketing for example mobile marketing. Online marketing for example websites, blogs, social media.

Passive/online: Direct marketing for example email

Interactive/offline: Personal selling. Sales promotions such as contests, sweepstakes, special events, in-store demonstrations, pop-up stores)

Passive/offline: Advertising. Sales promotion for example coupons, Public relations, Direct marketing for example mail and catalogs. 

• Varies Dramatically By Type of Retailers

-Specialty Store vs. Department Store

• Entrepreneur -P&L Responsibility -Manage People

• Responsible for Two Critical Assets -People: Sales/Employees -Real Estate: Sales/Square Foot