1.A Value pro.-is a promise of value to be delivered. It’s the main reason a prospect shuld buy from us.VP should include these characteristics:relevancy-explains how your product solves customers problems and improves their situation,delivers specific benefits,have the reasoning why they should by from us and not from the competition.In other words VP is a clear statement of the tangible results a customer gets from using your products/services.CostoVP would be their merchandise at lower prices, members-only warehouse format, emphasis on higher-quality brands,they have number of exclusive products under its Kirkland brand, company creates a more hospitable environment for customers by focusing first on its empoloyees.All of these factors ad up to strong VP for costco.
B-Independent retailers-very targeted cusomter base, word of mouth.owns one retial unit,chain retailers-multiple outlets under common ownership,franchise-has a franchisor-franchisee relationship,leased departments-space is rented out to an outside party.vertical mark.sys-all the levels of independently owned businesses along a channel of distribution,consumer cooperative-retail firm owned by its customer members
costco chain retailers-Buying in bulk direct from the manufacturer would give the large retailer better discounts therefore a lower cost of goods,, The use of an own well-known brand for this retail chain- Some large retailers are able to have goods manufactured according to their own special requirements,, Saving on transport-they buy in bulk, they can also have their own fleet of transport vehicle where its more cheaper then hiring them from others.. Large capital-A larger amount of capital is needed since the business stocks a great variety of goods which it buy in bulk direct from the manufacturers,,Greater risk of loss-Since the overheads (e.g. rents, advertising, wages, maintenance cost) are very high, and if turnover does not come up to expectations, profit will fall even...