Retailing Principles Using Kolbs Model - Case Study Example

Retailing Principles Using Kolb’s Model Subtopic 1: The Purpose of Retailing as a Function of the Marketing Distribution Process Description of Concrete Experience I believe that the majority of my experience that fits this category is my work as the director of business operations for the Marine Corps Exchange. My headquarters was at Camp Lejeune, North Carolina and in Iwakuni, Japan. I had to make purchases according to the specifics that were given to me as a supervisor. As an example, I had to make sure that inventory was done so that we had enough stock to cover the shelves. This meant that I had to know from each store what consumers were purchasing so that I could create a balance between what was stored, and what needed to be constantly moving in the Exchange. This also meant that the needs of the customer had to be known at all times. I was constantly talking to the families that came into the Exchanges and asking them questions about why they came there, whether they found everything they needed and how the exchange was working to fit their needs. Reflections: My work in the Exchanges helped me to understand how marketing and retailing worked together. As an example, the marketing department sends emails, flyers, and other information to all Exchanges. They also send out surveys to each area. The surveys often determine the retail items that are purchased for the Exchanges. In any business, marketing distribution happens to make products available for the market. There are different distribution channels that come into play in this process because there must be a way for products to enter the market. Generally, they enter the market through some type of distribution channel. The Marine Corp Exchange is the distribution for the Military and it is located on the base. The Exchange provided a way for Marines to find everything from uniforms to electronics and items for the home. I found during this time that I was helping not only my fellow Marines, but also the Exchange. I was able to successfully reduce costs by 15% through the implementation of an electronic point of sale system that combined three sales positions into one. This made me feel very good about my ability to help and I was proud of what I was able to do and how I was able to resolve issues as they appeared. Generalizations, Principles & Theories: When working with Marines, there are certain standards that must be met. All retail outlets have to conform to these rules and I am responsible for making sure that the merchandise that comes into our Exchanges, meet our criteria for merchandise. Although other retail outlets are able to provide specific merchandise to their customers that many different types of stores have, we have a limited amount of merchandise for our shelves, and they must be befitting of Marines and their families. I have to always think about what will be best for the Marines who come into the Exchanges and make purchases based on budget and on the needs of the men and women who come into the Exchange. I also had to make sure that I found ways to save money while getting the products that were needed. Testing and Application: I have specific knowledge in retailing and I understand the supply chain that we have in place. I also understand that there are many different manufacturers of the same goods, and many thousands of ways to bring products into the Exchanges. I understand the intricacies of how to reduce costs, and how to create a difference in the types of merchandise that each situation will entail. As an example, I know what will sell bet in a convenience store versus a food and hospitality center. There are different types of needs within each of these types of stores. Another example is that I received an award for successfully completing an intermediate purchasing training so that I could work within the Exchanges. When I am not working, I realize that I can go into any store and purchase something that I want. Because of my training however, I have learned to become more specific about what I want and about the quality of the merchandise. I teach my children how to find the best merchandise also, because I do not feel they are too young to learn about this process. There are many different retailers who sell the same merchandise, but the quality is not always the same. I want to be a responsible consumer who provides good quality merchandise for my family. Subtopic 2: Store Location and Non-Store Accessibility Description of Concrete Experience: Store location is very important to the study of retailing. There are many businesses that fail because they chose the wrong location. Some retailers choose a store location because they see traffic going to and from the location, but this does not mean that the retailers in this situation are actually busy enough to make a profit. In my job as a director of business operations, I was not in charge of choosing the location for the Exchange or the business outlets; these were already in place. Specifically, the floor plan was established by Head Quarters, and Human Resources provided the training for how the store was to be laid out. I did oversee the construction and opening of the first Marine Corps recreational indoor shooting range because it also provided a four bay car wash. This was important so that the Marines who used the range could have full service within the range. My background in purchasing is very helpful for viewing where the exchanges are and how they work for accessibility for Marines. We have had to take into consideration the fact that some Marines are injured, may be in a wheelchair, or may have adaptive devices after they return from the wars. The Exchanges and other retail outlet opportunities must be fully accessible in both their location and their access for the Marines who use them. Reflections: When I initially began work in the Exchanges, I do not think that I thought much about location. However, as I have gone through this course, I realize that the Exchanges were all located in specific areas on the base. The reason this was done was so that Marines did not have to spend a lot of time trying to find what they need in other parts of the city. I also noticed that as the Exchanges grew and there were more people coming to the Exchanges that the Marines had to revamp some of the areas to meet the needs of Marines and their families. As an example, today, the Exchanges must be handicapped accessible so that any Marine who has a permanent disability is able to access the Exchanges, the convenience stores or the food service areas. The Marine Corps has also upgraded many areas and redesigned some buildings to accommodate more merchandise where necessary. Generalizations/Principles/Theories: The target market for our Exchanges is Marines and their families. This means both active and retired Marines. This also means those who are at different levels of deployment. It is very important for us to understand what the target market needs and how to provide these needs under one roof. Each Exchange or retail outlet has to have a certain amount of parking spaces with some that are handicapped spaces, and everyone who needs them must be able to find them. These basic principles for retailing are important to consider. Generally, the Marine Corps Exchanges do not have competitors per se, unless the individual goes off base. This may or may not occur, if we are providing the merchandise sought at a good price. The fact that the Exchanges are the only place that specifically caters to the Marine and their family is a plus for the retail side of the Marine Corps. Testing and Application: Today, the retail branch of the Marine Corps has 17 Exchanges, 69 Marine marts, 40 branch stores, and six independent package stores. A Marine can go into any of these stores and purchase everything from guns to household items and clothing. The military continues to revamp and update their stores so that everyone can receive what is needed. As an example, buying for the Exchanges is centralized so that each store can concentrate on the selling of the merchandise rather than purchasing. In this way, the Marine Corps was able to consolidate the buying power and narrow its distribution channels so that their strength in buying could be realized. This action has allowed the Exchanges to find new merchandise where offered. Also, the bases have remained decentralized so that the base commander can run their Exchange according the needs of their individual base. The Marine Corps also created a new branding for the Exchanges that, in addition to a new logo, presents a “Core Brands, Corps Value” image. This presented a representation of the strength of the Marines, which also represents the strength they have as a retail outlet; in many cases, the Marine Exchanges have merchandise that cannot be found in other retail stores, at a good price. Subtopic 3: Principles of Merchandising Description of Concrete Experience: In all areas of merchandising, it is important to create a plan that reflects what the merchandise is and how it will be regulated. In the Marine Exchanges, SAS retail analytics are used to make sure that the needs of the Marines in each area are being met. I believe that I have many types of experience that provide me with concrete experience in merchandising. I believe that I have learned how to create powerful value in what was offered in the Exchanges. I saw right away that there was a need for a consolidation in the buying efforts and helped to centralize the buying of merchandise so that we could reduce cost. I was able to reduce cost as a director of business operations and also as a purchasing specialist. The reduction of costs in purchasing was passed on to the Marines in savings. As an example, I took my orders to purchase goods from Head Quarters, but at the store level, we were in charge of the merchandise that we were supposed to sell, and we oversaw the warehouse that stored the merchandise. We were to inform the warehouse when the merchandise had to be replenished. I have also learned to create strong messages to help Marines make decisions about merchandise they are buying. As an example, if given a choice between going into the community and purchasing something or purchasing it from the exchange, I am able to provide my fellow Marines with the information needed to make this decision for themselves. This is not always about money, but it is often about the quality of merchandise that they can receive from the Exchange. In doing so, I was responsible for helping to grow the Exchanges and in improving the Marine’s ability to understand what they were purchasing and why. Reflections: Merchandising is a social process although we do not think of it as such. In most situations, the retailer is creating a need for the merchandise, and then helping the consumer to understand how that merchandise will best fit their needs. While working with the Exchanges, I understood that Marines want more than their basic needs met: They want luxury items that can enhance their lifestyle. By providing both basic needs and luxury items, at a price they can afford, a consumer will purchase regularly from a retail outlet that they can trust. Generalizations/Principles/Theories: Merchandising has a long history with the Marines and they constantly scrutinize their transactions and develop what Marines need. Consistently, the Exchanges have received positive reviews from Marines who say it is one of their best non-pay benefits. The Marine Corps takes the profits from the Exchanges and reinvests them into the Marine Corps Community Services (MCCS). This is the branch of services that are provided to better the quality of life for Marines who are retired and their families. This branch also provides an opportunity for Marines to interact with other Marines who understand the challenges that they may be going through getting back to civilian life. If I were ever going to work as a manager for a retail store as a civilian, I would understand exactly how to run this operation. I would be able to take what I have learned about retailing for Marines to enhance the needs of consumers in a particular store. As an example, if I were working for Neiman Marcus, I would be able to understand what their target market needed, and help them provide a program that would present these needs to their consumers. I would be able to increase their sales as I have for the Marines. Testing and Application: I was able to take what I learned as a project manager into the areas of retail and sales. The reason this was applicable was that working with contractors is very similar to working with vendors. As an example, by revising the procedures for usage of the International Merchant Authorization Cards through my job as a subcontracts manager, I was able to create the electronic point of sale system and combine three sales positions. This knowledge was similar and I was able to spot where there needed to be changes as the director of business operations. In the future, I believe that I could reduce the cost of any retail store that I worked within to increase the profits of the company. Subtopic 4: Store Organization and Human Resource Decision-Making. Description of Concrete Experience: As a director of business operations, I was responsible for making sure that the store was organized, cleaned, and available to everyone. I had to make sure that we kept the shelves stocked and that the people working in the various retail outlets were friendly and helpful. I supervised a staff of over 290 civilians and 15 Marines for multiple exchanges. I directly oversaw operations of the Main store, 16 convenience stores, two full service stations, a food and hospitality center, and 36 service and concessionaire contracts. All exchanges have a specific store layout that provides the easiest access for anyone moving throughout the store. I made decisions of who to hire or fire, and provided general and specific feedback to my employees regularly. Human Resources provided the training and made decisions as to what types of training we would receive. In my case, I received training in purchasing, retailing and the aspects of store organization. Reflections: This was a very big job for me and if it had not been for my mentors, this would have been an overwhelming job. I had so many duties that I had to carry out that I had to make sure that I was organized, so that my employees would model what I was doing. This created a well oiled machine (not that we did not have challenges sometimes). I was able to work with commanders at each base and insure that they had what they needed to run their particular Exchange. I presented my work strongly and worked to save money in each situation. Human Resources dealt with the hiring and firing process, but I had to make recommendations based on their performance. I worked with vendors in a similar fashion as I did with contractors and found ways to help vendors provide the merchandise we needed at a cost that was lower than other retail stores. Generalizations/Principles/Theories: Stores are generally arranged so that consumers can move through the store in such a way that makes the process flow well. Within an exchange, there is the merchandise, but the Exchange also includes an environment like a mini-mall. The Marine and their family can come into the Exchange to find merchandise, but also a barbershop, a pharmacy, a food court, and other areas that a consumer would expect when they went to a mall. One of the things I learned was that when a Marine wants something in particular, they want to see it on the shelf or within the mall. I think that this is what the Marine Corps tries to do with the Exchanges. I also learned that the best way to make sure that everyone is happy is to be extremely organized in the presentation of merchandise as well as with the provision of services. Testing and Application: Personnel challenges are not always easy when you are working with a variety of people. The supervisor has to provide a balance between disciplines where necessary and mentoring to make sure that an employee can do their job to the best of their ability. A manager must also allow the employee to bring their own ideas to the table. I also learned than when working inside a retail establishment, the manager must make sure, that consumers can access the merchandise easily, and that it is provided in such a way that it is aesthetically pleasing to the eye. The store must be laid out in a way that creates a flow throughout the process of moving through the store. Also, merchandise should be displayed in an organized and Subtopic 5: Inventory Turnover and Control Description of Concrete Experience: All of the jobs that I have held have to do with inventory turnover and control. As a director of business operations, I had to continually check inventory and make sure that our shelves were stocked properly. I also had to make sure that my budget reflected cost control, and that it was consistent with the merchandise that we needed. As a purchasing specialist, my concern with inventory was concerned with purchase agreements and making sure that the contracts required were fulfilled. In looking at inventory turnover and control, a manager must understand how each element of what they are purchasing will reflect on the needs of the consumer. In this case, I had to make sure that my inventory was large enough to keep the shelves stocked, but small enough to insure cost reduction. Reflections: Inventory control is important because it allows a business to run smoothly. As a manager, it was important for me to check inventory regularly to make sure that we had enough of the popular items and found ways to move the merchandise that was not as popular. I realized that Marines have a particular way of purchasing that is based on the merchandise’s availability and on the price. This is not different from most consumers, but there is a different way that Marines express their needs. Generalizations/Principles/Theories: I understand that there are a variety of ways that merchandise is categorized and that inventory control is imperative if a retail business wants to remain solvent. When I have gone into retail establishments, I can find areas where specific merchandise is missing and other merchandise is plentiful. The challenge is that in some situations, the merchandise that is plentiful is not selling. This makes me wonder who is doing the buying for this retail establishment. I think that the Marines understand better how to purchase and move inventory than other types of retail stores. I find that moving merchandise is easy as long as it either provides a need or creates a need for the Marines who purchase our products. Testing and Application: I moved out of purchasing, but my current job involves some aspects of purchasing. As an example, I create solicitations, conduct price and cost analyses, and negotiate price/cost related terms. I have to be on top of the inventory we have when we are working on projects, and I have to make sure that subcontractors are providing the materials that are needed for the project at a cost that is good for what we need. There are many aspects of inventory turnover and control that I work with directly or indirectly. The training that I received in this area from direct sales programs, has prepared me for what I do now. Subtopic 6: Current Trends in Retailing and E-Tailing Management Description of Concrete Experience: Some of the areas that must be considered in current trends in retailing are the fact that the Baby Boomers are getting older, the fact that our country is more diverse than ever before, and shoppers are more sophisticated and well informed about the retail market. Also, more people are shopping online than going into brick and mortar stores for certain things. In order to understand the trends in retailing and e-tailing for the military, I read the Military Exchange magazine, read all directives that come my way, and an interesting thing is that military apparel has become very popular in the general retail market. As these trends are popular with general retail, they also become important to the Marine Exchanges. I did not have direct interaction with the website as to what should go on it because that was our technology department. I studied the website and provided ideas of what my customers were saying that should be presented on the website. One point in this area is that the families of military personnel reflect the general consumer trends. Because of this, the Exchanges must have the merchandise that the families are used to seeing on commercials, and that they want. In order to keep abreast of these trends, I read articles in magazines and throughout the Internet about the newest trends in retail. My experience with creating the electronic purchasing systems and creating the electronic point of sale system, helped in understanding the e-tailing management. Although I had experience with retail brick and mortar retail, I had to gain experience in retailing online. Each Exchange has a website component but what is advertised on the website, has to be inventoried somewhere. The understanding of this is important to the knowledge that a manager has about his or her operations. Reflections: Although we want to believe that the civilian market does not influence the military market, this is not true. What I have learned from reading trends is that civilian consumers are currently obsessed with military garb. They want to wear it and they want to do it to support the troops. I also realize that most things that are trends for general consumers are also trends for military families. As an example, some of the children of military officers want to wear the clothes, have the lunchboxes, or have the types of video games that other children want. In other words, trends are not exclusive of military vs. civilians. By understanding this, I was able to bring in popular items that sold well in the Exchanges. Generalizations/Principles/Theories: Most consumers today spend their time online looking for purchases. These may be at popular sites like Amazon.com, or at Wal-Mart or other retail stores. The military, through the exchanges, has this opportunity for military families. In order to present this information, the Exchanges had to develop a website. The website not only has merchandise on it, it also has information about tickets that can be purchased at a discount, and the services provided for the community. The point of the website is to encourage military families to use the services that are specific to their needs as military families. In so doing, the websites have created an extension for those military families who are living away from the nearest exchange. Keeping up with the trends in the general consumer market allows the military personnel to keep the Exchanges stocked with merchandise that is needed and that is popular for the military families. The awareness of this for me was a huge shift in appropriating contracts, in developing contracts, and in helping my supervisors understand what is needed for our continued growth. Testing and Application: Keeping abreast of the trends in retailing and e-tailing are important if an individual or a business wants to stay solvent. I cannot say that every new trend will be used in the military or with the Marines, but the trends are important to understand how to strategize in working with Marines and their families. Although we are a particular group, we grew up as general consumers, and we have a tendency to enjoy the same things as other people do. We want to be sure that in the Exchanges, the Marines and their families are able not only to have the trends that are available, but also the practical things that are important, in governing their lifestyles. As a consumer myself, I stay abreast of the trends so that I can make referrals about merchandise to my superiors. I also listen to what Marines say that they would like to see, and I listen now to the sub-contractors in their fields. I believe by listening to everyone, the action provides me with a continuous understanding of what is going on outside the Marines. I am also able to provide better service because anything I do not understand, I can research. Research is a large part of what I do as a senior subcontract specialist because I have to provide reports to my superiors about what we are doing and why we are doing it. The more I read on my own, the better I am prepared for various exchanges in reporting and in working directly with people. Read More