The expansion model of the major Chilean retail chains

Includes bibliography

Fifteenth census of the United States. Census of distribution. Retail distribution. Retail chains.

At head of title: U.S. Department of commerce. Roy D. Chapin, secretary. Bureau of the census. W. M. Steuart, director.

Food Retail Chains: Hungary in the EU

The role of retail chains is signifi cant, not only in the European but also in the Hungarian market. Major changes can be seen in the food trade, and hypermarkets and supermarkets are becoming more widespread, which has an international tendency. We are able to see the transformation of trade structure and changes in customer behaviour. On the customers’ side, this means newer demands on retail chains, which fact greatly determines the location and shape of stores. In Hungary, the presence of small shops is still signifi cant, in accordance with European and international trends; yet on the basis of turnover, the increasing dominance of larger sales centres can be seen.

Integração vertical como estratégia de apropriação de valor: um estudo exploratório no canal de distribuição de produtos agrícolas

Neste artigo, investiga-se a adoção de canais alternativos para a comercialização de produtos agrícolas como forma de atenuar o poder, cada vez maior, exercido pelas grandes redes varejistas. O artigo investiga a decisão - e os efeitos daí decorrentes - de uma determinada empresa sediada no interior paulista, agrícola Pedra Branca, quanto à operacionalização verticalizada de uma butique de frutas, legumes e verduras (FLVs). Consciente dos novos padrões demandados pelo consumidor, a estratégia da empresa alvo do estudo foi combinar a oferta regular de produtos frescos, de qualidade intrínseca padronizada e preços atrativos, a um serviço diferenciado, baseado em um alto valor na experiência de compra. Esta estratégia fundamenta-se no anseio dos consumidores de, mais do que simplesmente adquirir produtos, experimentar sensações, as quais vividas em momentos de lazer exerceriam um grande poder de diferenciação. Realizou-se um estudo de caso baseado em entrevistas em profundidade semiestruturadas com diretores e gerentes da empresa. Como resultado, as evidências empíricas sugerem: 1) a verticalização (integração vertical) da atividade de comercialização como uma alternativa para a apropriação de valor da produção ao longo do canal de distribuição; e 2) o desafio da gestão do suprimento como requisito-chave para a adequada gestão do valor de uma marca. Considera-se oportuno lembrar, porém, que, em decorrência das limitações próprias da metodologia de estudos de caso, estas tais evidências devem ser entendidas como proposição a ser testada em trabalhos quantitativos futuros, ou mesmo melhor embasada via condução de estudos multicaso.

Da embalagem à confiança: viagem ao maravilhoso mundo das marcas próprias

Dissertação apresentada à Escola Superior de Comunicação Social como parte dos requisitos para obtenção de grau de mestre em Publicidade e Marketing.

Distribution systems of the food sector in Russia: the perspective of Finnish food industry

Finnish food producers' trade with Russia has experienced profound changes since the collapse of the Soviet Union. Simultaneously, the distribution systems of foodstuffs have changed remarkably. This study sheds some light into these changes and analyses the current situation in distribution systems of foodstuffs in Russia. In addition, the study discusses the possibilities of Finnish food producers to get more of their products to the shelves of Russian food retail stores. Before the 1998 financial crisis, the import of foreign foodstuffs was booming in Russia due to the overvalued rouble. As a result of the financial crisis, food import collapsed. The export of Finnish foodstuffs to Russia has been slowly recovering during the past few years, but in the most important product categories the pre-crisis levels have so far not been reached and maybe will not be reached. In certain product categories the growth has been only marginal. It seems that starting localproduction will become increasingly important in the future. This is further encouraged by the fact that Russian consumers favour domestic food products. Russian consumers are very price conscious and demand quality in food products. The perceived price-quality ratio is an important criterion in the purchase decision.The majority of foodstuff retail is still conducted via unorganised forms of trade (e.g. kiosks and marketplaces) but modern retail chains are developing at a fast pace in Russia. They are also expected to dominate the retail trade in foodstuffs over the unorganised forms of trade in the future. This will change the distribution systems as well. The retail chains are trying to shorten the distribution chain, similarly to what has been seen in the Western countries. This together with the strengthening of retail chains is likely to shrink the role of wholesalers, as the chains increasingly want to work directly with the producers. Many large retail chains are acquiring or have already acquired a distribution centre or centres in order to boost efficiency and control the flow of products. The strengthening of the retail chains also gives them power in negotiations, which the producers and distributors have to adjust to. For example store entry fees and retail chains' own private label products pose challenges to the food producers. In the food production sector the competition is fierce, as large Russianand foreign producers want to ensure their piece of the market. The largest producers utilise their size: they invest in big marketing campaigns and are willing to pay high entry fees to retail chains in order to secure a place on the store shelves and to build a strong brand in Russia. This complicates the situation from the viewpoint of small producers. Currently, the most popular type of distribution system among the interviewed Finnish food producers is based on a network of local distributors. There is, however, a strong consensus on the importanceof starting local production in order to be a serious actor in Russia in the future. Factors that hinder the starting of local production include the lack of local infrastructure and qualified staff, and the low risk tolerance of Finnish firms. Major barriers for entry in Russia are the actions of authorities, fierce competition, fragmented market and Finnish producers' heavy production costs. The suggested strategies for increasing the market share include focusing geographically or segment-wise, introducing new products, starting local production, andcooperation between Finnish producers. Smallness was one reason why Finnish producers had to cut down their operations in Russia due to the 1998 crisis. Smaller producers had fewer resources to tolerate losses during the period of crisis. Smallness is reflected also on trade negotiations with retail chains and distributors. It makes it harder to cope with the store entry fees and to differentiatefrom the mass of products propped up by expensive advertising. Finally, it makes it harder for Finnish producers to start or expand local production, as it is more difficult for a small producer to get financing and to tolerate the increased risks. Compensating for the smallness might become the crucial factor determining the future success of Finnish food producers in the Russian market.

Las marcas propias de productos alimenticios y su impacto en el momento de compra: caso de análisis en la cadena minorista éxito de la ciudad de Bogotá

Esta investigación se va a enfocar principalmente en el comportamiento del consumidor final con relación a la compra de una marca propia. Estas han tenido un gran crecimiento en el país lo cual ha creado una nueva tendencia de compra para los consumidores colombianos. Según un estudio de “El poder de las marcas privadas” se establece que Colombia se cataloga como uno de los 10 países con un crecimiento más rápido a nivel mundial. Aunque, el mercado de marcas privadas esté en crecimiento, existen diversos factores como los ingresos de los individuos, el riesgo percibido y la calidad percibida del producto que influyen drásticamente en la elección de estas marcas con respecto a las reconocidas. El problema que se va a desarrollar en la presente investigación es conocer detalladamente cuál es el impacto que tienen las marcas propias de acuerdo con los ingresos de los individuos la percepción de riesgo y calidad que tiene el consumidor final a la hora de tomar la decisión de comprar una marca propia a una marca reconocida de productos alimenticios en la cadena minorista Éxito en la ciudad de Bogotá – Colombia? Esta investigación busca, mediante la aplicación de la teoría y los conceptos básicos del comportamiento del consumidor encontrar explicaciones y soluciones para las cadenas minoristas que fabrican marcas propias, ofreciéndoles sugerencias para que sus estrategias de mercadeo en la venta de marcas propias sean exitosas y aceptadas por el consumidor final y el mercado.

Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere

The paper examines how European retailers are using private standards for food safety and,quality as risk management and competitive tools and the strategic responses of leading Kenyan and other developing country supplier/exporters to such standards. Despite measures to harmonize a 'single market', the European fresh produce market is very diverse in terms of consumer preferences, structural dynamics and attention to and enforcement of food safety and other standards. Leading Kenyan fresh produce suppliers have re-positioned themselves at the high end, including 'high care', segments of the market - precisely those that are most demanding in terms of quality assurance and food safety systems. An array of factors have influenced this strategic positioning, including relatively high international freight costs, the emergence of more effective competition in mainstream product lines, relatively low labor costs for produce preparation, and strong market relationships with selected retail chains. To succeed in this demanding market segment, the industry has had to invest substantially in improved production and procurement systems, upgraded pack house facilities, and quality assurance/food safety management systems. (C) 2005 Elsevier Ltd. All rights reserved.

Trabalho e reestruturação na Rede Carrefour: uma análise crítica

Pós-graduação em Ciências Sociais - FFC

Collaboration intensity in the Brazilian supermarket retail chain

Purpose - This paper seeks to identify collaboration elements and evaluate their intensity in the Brazilian supermarket retail chain, especially the manufacturer-retailer channel. Design/methodology/approach - A structured questionnaire was elaborated and applied to 125 representatives from suppliers of large supermarket chains. Statistical methods including multivariate analysis were employed. Variables were grouped and composed into five indicators (joint actions, information sharing, interpersonal integration, gains and cost sharing, and strategic integration) to assess the degree of collaboration. Findings - The analyses showed that the interviewees considered interpersonal integration to be of greater importance to collaboration intensity than the other integration factors, such as gain or cost sharing or even strategic integration. Research limitations/implications - The research was conducted solely from the point of view of the industries that supply the large retail networks. The interviews were not conducted in pairs; that is, there was no application of one questionnaire to the retail network and another to the partner industry. Practical implications - Companies should invest in conducting periodic meetings with their partners to increase collaboration intensity, and should carry out technical visits to learn about their partners` logistic reality and thus make better operational decisions. Originality/value - The paper reveals which indicators produce greater collaboration intensity, and thus those that are more relevant to more efficient logistics management.

The structure and development of Russia's food retail sector from the point of view of Finnish food industry

Tämän diplomityön tavoitteena on selvittää Venäjän ruoan vähittäiskaupan rakenne ja sen tuleva kehitys. Tällä hetkellä se on yksi maailman nopeimmin kasvavista markkinoista. Kasvun syynä on korkea öljyn hinta, jokaon kumuloitunut ihmisten palkkoihin. Kuitenkin vaikka tulot kasvavat, ruokaan käytetty osuus tuloista on pysynyt suhteellisen vakaana. Kulutus on siis siirtymässä laadukkaampiin ja arvokkaampiin tuotteisiin Modernien kauppojen osuus markkinoista on vielä pieni, koska Venäjän vähittäiskauppasektori on yhä hajaantunut perinteisiin kauppaformaatteihin kuten kioskeihin, toreille ja pieniin ruokakauppoihin. Kauppaketjut ovat kuitenkin tulossa merkittävämmiksi. Suurin markkina-alue vähittäiskauppiaille on Moskova, mutta tällä hetkellä ketjut laajentavat toimintojaan nopeasti myös muille Venäjän alueille. Parhaat kasvunäkymät ovat alueilla, vaikka Moskovan markkinat eivät olekaan kyllästyneet. Tärkein kasvua rajoittava tekijä Moskovassa on rakennustonttien ja kiinteistöjen saatavuus. Vähittäiskauppamarkkinat lähestyvät kyllästymispistettä, josta seuraa markkinoiden konsolidaatio. Tämä prosessi on jo alkanut, mutta kovin paljon yritysostoja ei ole vielätehty. Toistaiseksi kauppaketjut ovat tyytyneet muodostamaan alliansseja. Ketjut pyrkivät parantamaan asemaansa hintaneuvotteluissa muodostamalla osto-alliansseja, luomalla omia brändejä ja käyttämällä alueellista laajentumista lyömäaseena. Jotta ruoan tuottaja pääsisi myös alueellisille markkinoille, on sen ehkä suostuttava myymään tuotteitaan edullisempaan hintaan. Tavarantoimittajat ovat vahvassa asemassa silloin, kun heillä on toimiva jakeluverkko, kyky JIT-toimituksiin,kunnollinen dokumentaatiokäytäntö, vahva brändi ja edullinen hinta. Ns. listausmaksun suuruus voi määrittää tuottajan tuotteilleen saaman hyllytilan koon.

Russia's food retail sector from the point of view of Finnish food producers

This research paper focuses on the Russian food retail sector and its structure and development. At the momentit is one of the fastest growing markets today with 12.1% growth last year (2004). The growth originates from high oil price, which has been accumulated to people's wages. They are growing nominally more than 20% annually. But even though the income increases, the share of food of all retailtrade has been fairly stable with only a slight decline. Thus, the consumption is shifting to products with more quality and value. The shareof modern retail outlets is low, as the Russian retail sector is still very dispersed to traditional retail outlets such as kiosks, open markets and small grocery stores. The store chains are, however, becoming more and more significant. The biggest market for retailers is Moscow but nowadays the chains are expanding rapidly into other regions. Even though the markets have not been saturated in Moscow, the best prospects for growth are in the regions. The most important factor restricting the growth in Moscowis the availability of real estate and land plots for stores. The market is moving forward to saturation, and a consolidation process will follow. In fact, it has already started but not many acquisitions have been made so far. To this point the domestic chains have settled to form only alliances. The foreign players will be very strong in the tightening competition in the future. The problem of domestic chains is that the stores are nonstandardized, which is not cost-efficient. The chains are trying to enhance their power in price negotiations by forming purchasing alliances, introducing private label goods and using the regional expansion as a striking weapon. In order to follow the growing chains to other regions the producer must sell its products to the chains at favorable terms. Suppliers are strong in negotiations when they have a functioning distribution network, ability to JIT deliveries, proper documentationpolicies, a strong brand, reliability in deliveries and a fair price. The size of the entry ticket, i.e. the listing fee may define the shelf space a producer gets in the stores.

Carrier selection and management : A case study on Neste Oil Retail

Service provider selection has been said to be a critical factor in the formation of supply chains. Through successful selection companies can attain competitive advantage, cost savings and more flexible operations. Service provider management is the next crucial step in outsourcing process after the selection has been made. Without proper management companies cannot be sure about the level of service they have bought and they may suffer from service provider's opportunistic behavior. In worst case scenario the buyer company may end up in locked-in situation in which it is totally dependent of the service provider. This thesis studies how the case company conducts its carrier selection process along with the criteria related to it. A model for the final selection is also provided. In addition, case company's carrier management procedures are reflected against recommendations from previous researches. The research was conducted as a qualitative case study on the principal company, Neste Oil Retail. A literature review was made on outsourcing, service provider selection and service provider management. On the basis of the literature review, this thesis ended up recommending Analytic hierarchy process as the preferred model for the carrier selection. Furthermore, Agency theory was seen to be a functional framework for carrier management in this study. Empirical part of this thesis was conducted in the case company by interviewing the key persons in the selection process, making observations and going through documentations related to the subject. According to the results from the study, both carrier selection process as well as carrier management were closely in line with suggestions from literature review. Analytic hierarchy process results revealed that the case company considers service quality as the most important criteria with financial situation and price of service following behind with almost identical weights with each other. Equipment and personnel was seen as the least important selection criterion. Regarding carrier management, the study resulted in the conclusion that the company should consider engaging more in carrier development and working towards beneficial and effective relationships. Otherwise, no major changes were recommended for the case company processes.

ATTITUDES TOWARD RUSSIAN CUSTOMERS IN THE FINNISH RETAIL TRADE SECTOR – A salesperson’s point of view

The amount of Russian tourists in Finland has increased significantly in the past years. The impact of Russian tourism to the Finnish retail trade sector is enormous, since Russian tourists often spend a lot of money particularly on shopping. Shopping tourism is mainly focused in the near border cities, such as Imatra and Lappeenranta, and in addition in Helsinki metropolitan area. The purpose of this study is to map the attitudes and perceptions of the sales personnel who are working in the Finnish retail trade sector towards Russian customers and to discover which elements affect these attitudes. The theories in this study are based on cultural elements and elements related to sales behavior and performance. Cultural differences between Finland and Russia, cultural distance and cultural intelligence form the cultural aspect of this study. Customer orientation vs. sales orientation (SOCO), adaptive selling, selling skills and job competency, salesperson’s affect and empathy toward customers, and job autonomy form the elements concerning sales behavior and performance. Furthermore, the attitude – behavior link, based on social psychology is addressed. A survey was conducted in two retail trade chains operating in Finland. These retail companies have stores and department stores in different geographical areas in Finland and the survey was conducted in altogether 19 cities. In addition to the theories that were discussed, two expert interviews were conducted in order to get a deeper understanding of the phenomenon at hand. Moreover the interviews helped in the formulation of the hypotheses and the questionnaire design. The questionnaires were sent directly to the stores, where they were placed so that they were available for the sales personnel. Altogether 487 usable responses were collected. The returned questionnaires were analyzed with IBM SPSS 21 statistics program. The results of this study indicated that the attitudes toward Russian customers are more negative compared to other foreign customers. However, the respondents’ attitudes toward and perceptions of Russian customers varied a lot. From the background variables age, education level, length of employment in current workplace, and length of experience in customer service had an effect on the attitudes of the respondents. In addition, the perceptions of Russian customers were more positive in the Eastern Finland compared to Helsinki metropolitan area. The cultural elements; cultural knowledge, cultural distance and cultural intelligence all affected the attitudes of the respondents. From the elements related to sales behavior and performance customer orientation, salesperson’s affect and empathy toward customers, and perceived job autonomy had an effect on the attitudes

Trust and governance of global value chains: The case of a Brazilian beef processor

Purpose - The purpose of this paper is to offer an exploratory case study comparing one Brazilian beef processor's relationships supplying two different distribution channels, an EU importer and an EU retail chain operating in Brazil. Design/methodology/approach - The paper begins with a short review of global value chains and the recent literature on trust. It gives the background to the Brazilian beef chain and presents data obtained through in-depth interviews, annual reports and direct observation with the Brazilian beef processor, the EU importer and the retailer. The interviews were conducted with individual firms, but the analysis places them in a chain context, identifying the links and relationships between the agents of the chains and aiming to describe each distribution channel. Findings - Executive chain governance exercised by the domestic retailer stimulates technical upgrading and transferring of best practices to local. suppliers. Consequently, this kind of relationship results in more trust within the global value chain. Practical implications - There are difficulties and challenges facing this Brazilian beef processor that are party related to the need to comply with increasingly complex and demanding food safety and food quality standards. There is still a gap between practices adopted for the export market and practices adopted locally. The strategies of transnational retailers in offering differentiated beef should be taken in account. Originality/value - The research outlines an interdisciplinary framework able to explain chain relationships and the kind of trust that emerges in relationships between EU importer/retail and a developing country supplier.