Naida's College Portfolio



Naida Cakarevic & Amar Zele April 4, 2016 MKTG 2350 Breath VS Depth Wal-MartOffice- DepotBinders$1.94 – 4.95 1.65 – 7.95 Glue.50 – 2.502.39 – 5.59Pencils .89 – 3.501.19 – 5.69Pens.99 – 3.99.89 – 4.95Folders.39 – 3.49.29 – 5.49Colored P. & Paints.89 – 2.951.29-3.49Planner3.95-12.955.95- 15.49 Part I: GO SHOPPINGWhat are the advantages and disadvantages of breadth versus depth for each retailer? Why?- The stores I visited both offered similar supplies and the prices varied. With some products, Walmart was cheaper and with others, office depot was cheaper. The advantage for Walmart would be that they don’t offer as many products but they sell most for cheaper so many customers would probably prefer them, disadvantage is they don’t have too many options. Office depot’s advantage would be they have way more in breath than depth. They have many things to choose from. The disadvantage is they might not get enough sales. 2) What are the advantages and disadvantages from the consumer's perspective? Why?- Walmart - Advantage: You could get supplies while grocery shopping. - Disadvantage: The store isn’t very organized. - Office Depot - Advantage: They offer everything that your office might need. - Disadvantage: People could feel over whelmed with how many things they carry. Part II: Read the Chapter and Answer the Following Questions:1) How and why would you expect variety and assortment to differ between JCPenney's store and internet channel? - JcPenny would have much more variety an assortment than a internet channel would. We had a comparison in class between JcPenny and an internet channel and of course JcPenny had much more items and sizes to choose from. 2) Simply speaking, increasing inventory turnover is an important goal for a retail manager. What are the consequences of turnover that's too low? Too High? - A too high turnover can be very misleading, you buy more products to keep up with customer demands, but end up not selling it all really messes you up. Too low of turnover costs a lot more to get on your end and you miss out on the sales that you could be getting. 3) Assume you are the grocery buyer for canned fruits and vegetables at a five-store supermarket chain. Del Monte has told you and your boss that it would be responsible for making all inventory decisions for those merchandise categories. Del Monte will now determine how much to order and when shipments should be made. It promises a 10 percent increase in gross margin dollars in the coming year.Would you take Del Monte up on its offer? No, I wouldn’t not. Justify the answer - I wouldn’t want anyone else making decisions for my business, you never know what could go wrong. 4) A buyer at Old Navy has received a number of customer complaints that he has been out of stock on some sizes of men's T-shirts. The buyer subsequently decides to increase this category's product availability from 80% to 90%.What will be the impact on backup stock and inventory turnover? If product availability was increased, then backup stock would have to be increased as well. Inventory turnover will decrease in that case since inventory investment is going up. Would your answer be the same if the product category were men's fleece sweatshirts? - No matter what product, if you are increasing product availability, you would still have to increase your back up stock too. 5) The fine jewelry department in a department store has the same GMROI as the small appliances department, even though characteristics of the merchandise are quite different.Explain the situation - Jewelry and house appliances are two of the products that have the highest gross margin percentage. With regards to adornments, it has a low stock to sales apportion subsequent to the jewelry department should be loaded with various things, since customers need to have numerous choices to look over before settling on a choice. And house appliances have a higher sales volume along with much smaller variety. Even though their sales are different, in the end they will have a similar GMROI. ................
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