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INTERNET EXERCISES
Chapter 16: The Many Faces of Retailing: In-Store, Direct,
and Internet
Exercise 1 – Changes and Opportunities Occur in Retailing
Exercise 2 – E-tailing is Attractive for Small, Specialized
Businesses
Exercise 1 – Changes and Opportunities Occur in
Retailing
Vignette: La Senza Corp. recognized that there was a
large underserved market in Canada for lingerie. Its success in focusing
on this and other underserved markets demonstrates the importance to retailers
of being alert to new trends.
Featured URL:
www.lasenza.com
Retailing is About Putting Together the Right Mix to Meet Customer
Needs
The La Senza stores were a subsidiary of Suzy Shier Corp. In May, 2001,
Suzy Shier changed its corporate name to La Senza in recognition of the
remarkable success of its La Senza chain, which specializes in lingerie
and nightwear. Beginning with four stores in 1990, the La Senza chain
progressed to 85 in 1993, and today has 188 Canadian units under the La
Senza and silk and satin banners. This growth was achieved in large part
by recognizing a change in women’s shopping habits. Buying underwear
and nightwear was once a functional purchase, but is now viewed as more
glamorous. However, La Senza also recognizes the continued importance
of store “atmospherics” and pricing, so tries to give its
stores an expensive feel through store design and fittings while offering
its goods at a moderate price range.
Activity
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Tour the featured Web site for the La Senza chain. Click on “About
La Senza” and review the chain’s mission and its current
status in terms of number of stores. Note that this Canadian company
not only operates many stores in Canada, but also has several in the
United Kingdom and the Middle East. Their specific locations are available
by clicking on the “Store Locator.”
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A major determinant of success in retailing is to develop a “differential
advantage” over competition. Based on the information provided
on La Senza’s Web site, define this chain’s “differential
advantage(s)” in your own words.
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According to the differentiation triangle shown in Figure 16.2, retailers
typically differentiate themselves based on price, location, and store
atmosphere and service. What type(s) of differentiation has La Senza
used relative to this triangle?
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According to the “wheel of retailing” hypothesis, new
types of retailers gain a competitive foothold by offering lower prices
to their customers through the reduction or elimination of services.
Consider whether the “wheel of retailing” hypothesis can
be applied to La Senza. Is it a “new type of retailer”?
If so, does it now (or did it when it was launched) meet the criteria
of “offering lower prices to their customers through the reduction
or elimination of services”? Has it evolved by adding more services
and letting its prices rise?
Resources
Other major retailers in Canada:
The
Bay: – a major department store chain; operating in Canada since
1678
Canadian
Tire: – one of Canada’s leading franchises; also owns
Mark’s Work Wearhouse chain
Chapters/Indigo:
– one of Canada’s leading booksellers
Information about and assistance with retailing in Canada:
Industry
Canada: - the Canadian government’s guide to retailing on the
Internet, including statistics
Power
Retailing: – a U.S. based consulting firm that specializes in
building retailers’ traffic, sales, and profits
Retail
Solutions Unlimited Inc.: – a small consulting firm based in
Fergus, Ontario that specializes in helping small retailers improve their
business
Exercise 2 – E-tailing is Attractive for Small,
Specialized Businesses
Evaluating Competitive Internet E-tailing Sites
E-tailing has allowed many small, specialized businesses to gain access
to more customers than they would have operating out of a bricks-and-mortar
location. However, it also means that they compete with similar companies
outside their local territory and thus have many more competitors than
they would otherwise have. It is critical that an individual e-tailer,
no matter what its size is, assess its long-distance competitors.
Activity
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Enter Industry Canada’s retail interactive site. Note the
“e-tailer evaluator site rating tool.” Read about the
tool under “Assess the Competition”; the section entitled
“E-tailer Profiles” provides examples of its use.
- One of the featured
sites is for a small company operating out of Mississauga, Ontario
that specializes in golf gifts. Golfinn competes with companies of all
sizes across North America, including Golfingly
Yours , a small business specializing in high quality golf gifts,
and Golfsmith
, a large American bricks-and-mortar chain with an e-tailing arm. Use
the “e-tailer evaluator site rating tool” to evaluate these
three sites. Is it an effective tool for small business use?
Back to Internet Exercises
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