scrambled merchandising

6/15/2015 RetailHitsandMisses:ScrambledMerchandising

http://retailhitsandmisses.blogspot.in/2008/09/scrambledmerchandising.html 1/2

F R I D A Y , S E P T E M B E R 1 2 , 2 0 0 8

ScrambledMerchandisingYou'veseenitallaroundyounowthere'satermforit.ScrambledMerchandisingreferstoapracticebywholesalersandretailersthatcarryanincreasinglywiderassortmentofmerchandise.Itoccurswhenaretaileraddsgoodsandservicesthatareunrelatedtoeachotherandtothefirm'soriginalbusiness.

Itusedtobethatyouwenttoadrugstorefordrugs,hardwarestoreforhardware,apetstoreforpetfoodandagrocerystoreforgroceries.Nowyoucanbuygroceriesatthedrugstore,findpetfoodatthehardwarestoreandgetanythingyouwantatWalMartorTarget,nottomentionZapposorAmazon.

TheConsumerElectronicsAssociationpresentedatRetailVisionresultsfromarecentconsumersurveyaboutbuyingpreferences:25%wouldbewillingtobuyconsumerelectronicsproductsfromStarbucks,30%fromIkea,40%fromBed,Bath&Beyondandalmost60%fromHomeDepot.WhatdoesthismeanforcategoryleaderBestBuy?ForRadioShack?ForCircuitCity?Howcananyretailerfacinginroadsfromnontraditionalcompetitionprotectitsturfandretainitscustomers?

Theanswerliesinunderstandinghowpeoplemakedecisionsaboutwheretoshop.Ourresearchsaystherearegenerallytwomainconsiderations:thelikelihoodthatthestorewillsatisfytherequirements(i.e.,Selection)andtheavailabilityofknowledgeablehelp(i.e.,Expertise).Price,location,andloyaltyareusuallysecondary.LastyearinresearchingthehomecentermarketwelearnedthatpeoplegotoHomeDepotwhentheyfeelprettyconfidentaboutwhatthey'redoingbecauseHomeDepothasthebestselection.Conversely,whenhelpis

S I G N M E U P !

B L O G A R C H I V E

2009(53)

2008(56)December(5)

November(8)

October(12)

September(12)CMOs&Marketing

AccountabilityALookatHomeD...

WaMu'sRetailBankToxic,Too?

InRetailasinPolitics,EverybodyLovesaWinner...

UpClose&PersonalatNFLGames

ValueHasBecomeTableStakes

GoogleHidingBehindTechnology

ScrambledMerchandising

Inpoliticsasinretail,themorechannelsofint...

Goingfor"Good"

DoesBighavetobetheOppositeofSpecial?

0 More NextBlog CreateBlog SignIn

RE T A I L H I T S A ND M I S S E ST H I S B L O G I S A P L A C E T O H I G H L I G H T W H A T S N E W I N T H E R E T A I L C U S T O M E R E X P E R I E N C E A N D

C E L E B R A T E W H A T W O R K S . . . T O C H A M P I O N T H E R E T A I L E R S W H O G E T I T R I G H T , A N D S P U RI N T O A C T I O N T H O S E W H O D O N T .

Posts

Comments

6/15/2015 RetailHitsandMisses:ScrambledMerchandising

http://retailhitsandmisses.blogspot.in/2008/09/scrambledmerchandising.html 2/2

NewerPost OlderPost

needed,consumerswilltradeoffalittleselectiontomakesuretheycantalktoarealpersonwhoknowswhattheyaretalkingabout.Incategoryaftercategory,wehaveseenthissamebasictradeoff.

So,shouldBestBuybeworriedaboutHomeDepotmovingintoelectronics?Hardly.ForHomeDepottomakeagoofit,they'llhavetochangealot.Topprioritywouldbetogetmoreemployeesinthestorestoanswerpeople'squestions.ThefolksatHomeDepotarefriendlyenoughandifyoucanfindthem,theyareactuallyhelpful.Problemis,forcostreasons,employeesarefewandfarbetweenatmostHomeDepots.Eventhoughwe'recomfortablebuyingCE,westillhavequestions,oruniquesituationsthatrequiretalkingtosomeone.AslongBestBuykeepsinnovatingthecustomerexperience,theyshouldbeabletodefendagainstscrambledmerchandising.

POSTED BY JUDY HOPELAIN AT 11:01 AM

LABELS: BEST BUY, CONSUMER ELECTRONICS, HOME DEPOT, INNOVATION,RETAIL CUSTOMER EXPERIENCE

NO CO MMENTS :

PostaComment

Home

Subscribeto:PostComments(Atom)

DoingaWorldofGood

BRisTurning30

August(14)

July(5)

G O O D L I N K S

FollowMeonTwitterRetailCustomerExperience.comWhowritesthisthing,anyway?See

myLinkedInprofileCustomerInsight&BrandStrategy

Consulting

PositioningsthatBeatPlan!MillennialMarketingBlog

AddtoTechnoratiFavorites

BookmarkthisonDelicious