TITLE

COMMENTARY: DECIPHERING DISTRIBUTION EFFECTS

AUTHOR(S)
Kruger, Michael W.; Dennerlein, John; Power, Anthony
PUB. DATE
March 1989
SOURCE
Marketing Science;Spring89, Vol. 8 Issue 2, p129
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In smaller outlets, large brands will dominate. For example, SamScan supermarket data for Kellogg's Frosted Rakes in St. Louis shows its share in the largest stores is 5.6%. As they look at successively smaller store strata, share rises from 7.2% to 7.4% to 9.5% to 10.6%, all at 100% distribution. Small brands find their easiest distribution in large retail outlets, where there is room for more brands. They may also find easier distribution in larger chains, wholesalers, or distributors, independent of the size of the individual retail outlets served. This is because distribution, consumer preference, and in-store attractiveness are generally positively correlated. Temporarily doubling a brand's distribution will result in some of that distribution being unsustainable due to insufficient movement. The probability that a product will be distributed in a retail store of given size is a function of demand for the product. Retail distribution will tend to seek a level appropriate to demand. Outlets already carrying a product are generally above-average candidates for the product.
ACCESSION #
6703709

 

Related Articles

  • Gimme a (tax) break. Schlosser, Julie // Fortune International (Europe);9/6/2004, Vol. 150 Issue 4, p18 

    Reports that most U.S. retailers are predicting modest growth in the third quarter of 2004. Projections for how much consumers with children will spend on back-to-school shopping; Question of taxes; How some states are letting consumers shop tax-free; Why electronics sales are projected to be up.

  • Gimme a (tax) break. Schlosser, Julie // Fortune;9/6/2004, Vol. 150 Issue 5, p32 

    Reports that most U.S. retailers are predicting modest growth in the third quarter of 2004. Projections for how much consumers with children will spend on back-to-school shopping; Question of taxes; How some states are letting consumers shop tax-free; Why electronics sales are projected to be up.

  • Italian Retailers Look To Raise Profile.  // WWD: Women's Wear Daily;7/9/2008, Vol. 196 Issue 6, p7 

    The article reports that Italian fashion houses are investing in new store concepts to show their market presence and gain market share. Despite the slow economy, they are going for high-tech service, exhibition spaces etc. Footwear designer Gianvito Rossi is working in a confidential mood for...

  • A Model for Allocating Retail Outlet Building Resources across Market Areas. Lilien, Gary L.; Rao, Ambar G. // Operations Research;Jan/Feb76, Vol. 24 Issue 1, p1 

    Many factors affect retail outlet profitability, including market potential, distribution and product costs, market pricing levels, cost (and availability) of land or space, and the relation between share of outlets and share of market. This paper presents a model that was used to plan building...

  • Experimental choice analysis of shopping strategies. Popkowski Leszczyc, Peter T. L.; Timmermans, Harry // Journal of Retailing;Winter2001, Vol. 77 Issue 4, p493 

    Recent changes in retail structure have created additional ways for consumers to organize their shopping trips. This study examines the prevalence of different shopping strategies and the impact of managerial decisions related to pricing. promotions, service, and assortment on the choice of...

  • Wow customers and your bottom line with visual merchandising. Swoboda, Debby // Natural Foods Merchandiser;Jun2007, Vol. 28 Issue 6, p32 

    The article provides information about visual merchandising system. The author asserts that the system applies an appropriate arrangement of items to maximize the visual space of the customers. It is stated that it is important to hire someone who has a merchandising vision to create an inviting...

  • Cramped Quarters? Michaud, Christy // Dealernews;May2006, Vol. 42 Issue 6, p42 

    The article discusses on how should dealers organized small retail spaces. Dealers should create a categorized list of products and decide how those items should be arranged and displayed. Fixtures to be used should be consider so that all the retail square footage could be utilized efficiently....

  • OMNICHANNEL RETAILING: THE MERGING OF THE ONLINE AND OFF-LINE ENVIRONMENT. Frazer, Mariette; Stiehler, Beate Elizabeth // Global Conference on Business & Finance Proceedings;2014, Vol. 9 Issue 1, p655 

    The technological environment is rapidly influencing the way in which shoppers go about retail activities. Shoppers are not only shopping online, but are in fact merging their online and offline shopping practises. The use of multichannel retailing (where different channels of shopping are still...

  • Christmas opening times.  // Music Week;12/13/2003, Issue 49, p8 

    Presents a chart of the opening times of various distributors of music during the Christmas season.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics