Big Lots Inc.
Big Lots Inc. is not your everyday retail store such as Wal-Mart or K Mart. Big Lots, Inc. is the largest broadline closeout retailer in the nation. Big Lots’ theme is “Brand names at closeout prices!” This motto is the foundation of what the company is built upon. More than 3,000 manufacturers provide the company’s stores with brand-name products at prices 20-40% below traditional discount retailers. Big Lots meets the needs of customers by providing an assortment of merchandise, including consumables, seasonal products, furniture, housewares, toys, and gifts.
Big Lots was established in 1982 through Consolidated Stores Corporation. The stores name was called Odd Lots which made its debut in Columbus, Ohio. In 1985, the company made its initial offering on the American Stock Exchange. At this time Big Lots was first launched. Thanks to their buyers, managers, associates, and other supporters, the company celebrated its first billion dollar year in 1993. In 1994, the company acquired Toy Liquidators which added 82 stores in 38 states. Two years later Consolidated Stores Corporation doubled its size and sales with the purchase of KB Toys. Big Lots Furniture became one of the fastest-growing furniture retailers after it began with 9 freestanding stores and 53 in-store departments in 1997. After gaining shareholder approval, Consolidated Stores Corporation changes its name to Big Lots, Inc. in 2001. After rebranding was complete in 2002, the company made many improvements in the Big Lots shopping experience, including updated, attractive stores and even better customer service. The changes bring record-setting increases in customer transactions.
Most closeout retailers rely on the distribution of weekly or monthly circulars to inform customers of the latest deals. Big Lots uses targeted mixtures of circulars to drive immediate customer traffic along with network television advertising to build awareness with consumers. In 2003, launched it’s first-ever $50 million television advertising campaign. Commercials can be seen all over daytime and nighttime television. With a host of different types of products to market, Jerry Van Dyke plays the lead role in promoting the company’s products. Consumers also receive a weekly sales promotion in the mail that brings to life what Big Lots has to offer in its “Here today, gone tomorrow” deals. Advertisement strategies have the potential to make or break a company. Fortunately, the company seems to be moving in the right direction. Location on the other hand is also a key factor in a company’s success.
...ir advantage. Franchises such as Walmart, manipulate product advertising and put items in specific places to increase chance of sales.
Considering 4 elements of the marketing mix and the case discussion of the general trends in the industry, it seems that MCB is experiencing problem with place and determining its target market. The case provides many examples of the company's difficulties in gaining more retail locations, maintaining sufficient inventory level, and, the most important, improper positioning of its product, which impeded the MCB to reach its potential customers.
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
Persuasion has always played an intricate role, in many ways, when it comes to promotion of a Fortune 500 companies like C.V.S. corporation. With the largest pharmacy chain of over 7400 stores in United States; no wonder they are at the top five largest pharmacies in the United States based on revenue generated from prescription only. However it's not only prescription is sold in stores; there are assortment of general merchandise including food, sundries, beauty products as well as health products sold there. In one of the stores I visited for this paper, located at 39th and Main street, I noticed that the products were sold in minute quantities so as to reduce the price of the merchandise.
Usually, television sales choose a time when consumers are free to watch television to present fancy commodities like jewelry. The announcer talks about the features of the product over and over for a half an hour. It gives the consumers a feeling that something he/she needs that product ever if it was expensive, they can be offered. Different brands send direct mail catalogues with their websites or phone numbers for ordering, it gives consumers the opportunity to shop when and where they want, and how the brands are collecting votes for their commodities. What all the companies need to do is let consumers vote for their brand by hiring people who can innovate a now features for their commodities or produces.
Sears Holding Corporation is the fourth largest retailer in the United States and Canada. Their supplements include Sears, Roebuck and Co. as well as K-Mart. “The closing of the merger between Sears and K-Mart took place on March 24, 2005. Sears has more than 4,000 retail stores across the United States, Canada, Puerto Rico, and Guam. Sears offers products and services through over 2,700 branded and affiliated stores. Sears operates 894 broad-line stores and 1,354 specialty stores. Sears’ broad-line stores are mall-based locations. The specialty stores include Sears Hometown Stores that are mostly independently owned, Sears Home Appliance Showrooms, Sears Hardware Stores, Sears Auto Centers, and The Great Indoor Stores (Sears Holdings, 2011).”
To Justify why use mass media like Radio and billboards. Being in Poland for a summer vacation taught me a thing or two about business. One would learn about KFC by radio plus street advertisements and billboards, ads on buses, train stations, and parks. With everyone walking and taking public transportation, radio, billboards, and flyers will prove to be the best delivery method in this country. With smartphones, technology is the way to deliver promotional offers to the consumers. Our research will show finding people at train stations that walk around are bound to see billboards and especially leaflets. Leaflets and smartphone apps will be the best methods to reach the consumer that is constantly on the go
Today, Target is the second largest general merchandise in America with many competitors but limited competition. As one may look at it, Target isn’t really a discount store but rather a superstore where a customer could get everything they need at one single location. Target isn’t an ideal store where one would want to go if they are looking for low cost product but due to their remarkable instore experience allows a consumer to spend more money than they wanted too and persuade them to come back and shop again. Target was able to grow has a second largest merchandise in America because mangers are investing in employees that are there for customers whenever they are needed.
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
According to the Kohl’s Corporation Hoover Report (2014), in the late 1920s, a man named Max Kohl opened a grocery store in Milwaukee, Wisconsin (Hoover Report, 2014, pg. 9). By 1938, Max and his three sons had developed his store into a successful chain and incorporated the business. Max Kohl had experienced enough success by 1962 that he opened a department store right next to his Kohl’s grocery store. In 1972, Max Kohl and his family’s “65 food stores and five department stores were generating about $90 million in yearly sales” (pg. 9) In the same year, the British American Tobacco’s Brown & Williamson Industries (BATUS) purchased 80% of the Kohls’ two operations. Six years later, BATUS proceeded to purchase what remained of Kohl’s. In the early 1980s, BATUS decided that “Kohl’s discount image did not fit in with BATUS’s other retail operations” and decided to ultimately separate the two operations in order to put them up for sale (pg. 9). The president and chief executive officer at the time, William Kellogg, “and two other executives, with the backing of mall developers Herbert and Melvin Simon, led an LBO (leveraged buy-out) to acquire the chain’s 40 stores and a distribution center” (pg. 9). By the time Kohl’s managed to go public in the year 1992, they “had 81 stores in six states, and sales topped $1 billion” (pg. 9). At this time Kohl’s began its expansion and within the next five years managed to top sales at two billion dollars. Kohl’s then “acquired a former Bradlees store to enter New Jersey and opened stores in Washington, DC; Philadelphia; New York; and Delaware” (pg. 9). The following year Kohl’s managed to expand into Tennessee by adding new stores. The company named Larry Montgomery CEO in 1999 and short...
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
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Advertising generally tries to sell the things that consumers want even if they should not wish for them. Adverting things that consumers do not yearn for is not effective use of the advertiser’s money. A majority of what advertisers sell consists of customer items like food, clothing, cars and services-- things that people desire to have. On the other hand it is believed by some advertising experts that the greatest influence in advertising happens in choosing a brand at the point of sale.
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