Scrambled merchandising
| Scrambled merchandising |
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| See also |
Scrambled merchandising is a retailing practice of combining dissimilar product lines to boost sales volume[1].
Scrambled merchandising in which a retailer dissimilar product lines in an attempt to boost sales volume - has also muddied the waters. Drugstores, such as the newly renovated Shoppers Drug Mart stores, not only fill prescriptions but offer:
- cameras,
- cards,
- magazines,
- small appliances,
- home decor accessories,
and even fresh and prepared foods.The company is allocationg as much as 75procent of its new square footage to general marchandise such as clothing, housewares and toys[2].
Innovation is at the heart of competitive change. Innovative merchandising strategies and operational tactics are constantly developed to meet commpetitive threats. Innovation by merchants But 50 yers ago, the idea would seem redical because specialised limited-line retailers used to sell fresh produce. WHen grocery shops combined these two categories, they were using a scrambled merchandising strategy, in which the merchant uses unconventional combinations of product lines.Today, the meat department, bakery, deli section, seafooddepartment and many other sections combine naturally in a modern supermarket, And many supermarkets are adding other products and services, such as a coffee bar, bank, bookshop, dry cleaners, shoe repair service, hair salon, photographer, flower shop, post, office and so on. In the same way, petrol stations combine with fast-food restaurants and conveniience stores to offer pit stops for both car and driver. Thesescrambled merchandising concepts are now widely accepted[3].
Innovation
Innovation by scrambled merchandising is a strategy for increasing sales of existing stores in with new products and services are sold that are unrelated to the store's marchandise assortment[4].
Innovation by merchants is frequently a deteminant of profi or survival in retail trade ans is often at the core of an evolving marketing system. There are risks involved, however, such as nisreading customer interests and ending up with large inventories of unrealized profit. An example of innovation amazon,com, which pioneered theonline bookselling industry in the 1990s. Amazon.com successfully dominated the market by utilizing the Internet and electrroniccommerce, a unique method of distibution for booksellers at the time, to maximize selection while iniizing inventory. Toys „R” Us in the past struggled against discounters like Wal-Mart and Target but today has stronger competition, an onlie retailer called eToys[5].
Innovation includes not only invention but also adjustment and adaptetion. Toys „R” Us responded to the new competition by setting up its own online toy businessoperations. New consumer purchasing patterns may serve as an impetus for the implemenation of innovation as demonstrated by the proliferation of Interne Wesites and online commerce in recent years[6].
References
- Brooks G. (red)(2011).Marketing For Dummies,John Wiley and Sons, England
- Dunne P. (red)(2007).Retailing, Cengage Learning, United States
- L. Kurtz D.(red)(2009).Contemporary Marketing,Cengage Learning, United States
- Pride W. (red)(2009).Foundations of Marketing,Cengage Learning, New york
Footnotes
Author: Sylwia Szrajber
