Marketing For The Future November 2016 - Page 32

CHRISTHIN Multipurpose template Ucia et acepuda estinis inihitat officipsanim quiat. Itasinvendit experi assimus dic tem autem quidel ipit, nem aut etur, se voluptatis estiur arum non reperum voles sit aut liqui voluptum, il iditat reste name voluptatius sequunt ut aut doluptur molorepudit et explita eiusa se exerumq uiandun tionsediti iducipisquia These technologies however are not found to add value in small scale retail, because of costs associated with implementation. This is especially interesting when considering that substitution is high in this industry, observing the quantity and reach of minimarkets and other convenience outlets. Incumbent upstream retailers see these outlets, rightfully so, not as competitors. The threat, as substitutes however need to be examined closely. These outlets have an extremely low overhead that creates a huge advantage over mainstream retailers. They leverage real estate and enjoy family based employment/partnership that are uncommon in the 32 Marketing For The Future upstream market. In addition, they are usually located in lower income neighborhoods, adding another layer of competitive advantage. Citizens living in lower income neighborhoods often don’t have the luxury of being able to travel far to do their groceries. Thus offering a critical assessment to take place when choosing where to shop. OOS and OSA are not big issues for these outlets also because they are not expected to dispose of a wide range of goods, which can (over time) shape consumption patterns. These advantages can drive away customers from the supermarkets, which can lead to inventory loss and other negative externalities. Respondents indicate that POS (Point-Of-Sale) systems enable them to maintain their PI (Perpetual Inventory) data and keep OOS low. Even though OOS interrelated, due to a concentration in suppliers, POS systems generally add value for the technologically savvy. We also found that the stores use visual checks to maintain a high OSA. However, the assigning of shelf space is often based on two factors: the turnover rate and the profitability of the products. This provides them with the freedom to decide the location of different items in their store. The main conclusion of this paper indicates that the methods currently employed by management of the re-