Next step in your continuing assignment is to ”Go shopping” at the retailer you have selected for the continuing assignment.
1.
Audit the variety and assortment for a specific merchandise category (1-3). Record the breadth and depth of the assortment and the level of support and SKU’s in the category
CARB, Retail Management and Retail Marketing, 2 nd semester 2015

2.
Compare the variety and assortment in the same category in a competing retail store
Webshop
Kærebørns assortment of strollers is almost in every category smaller and not as deep as
BabySams.
Kærebørns assortment of auto chairs are wider than BabySams, but not as deep.
Fysisk Butik
Kærebørns assortment in the shop matches the one on their website, whereas BabySams assortment does not. BabySam has a much bigger assortment at their webpage, than in the shop, but you can order a product on the Internet and see it in the shop instead.
Thereby, the shop seems more foreseeable than the kærebørns, because it’s not that messy.
1.
Does your retailer use high/low pricing or an EDLP strategy?
They use high/low pricing because the strollers are in the high end and there is an inelastic demand because people need a stroller, when they have a child. It is also a market where customers demand a high quality which makes them more willing to pay a high price
.
The clothing line and the accessories are in contrast not that expensive and the demand is elastic.
They also have discount on several merchandises.
2.
If possible talk to the manager about mark-ups
3.
Does the retailer use techniques for stimulating sales such as price lining, leader pricing, bundling, multi-unit an odd pricing)
They Use Odd-pricing unless things are on sale. The prices normally either end on 99.00 or
99.95. And they give discount to members.
CARB, Retail Management and Retail Marketing, 2 nd semester 2015

They also uses Price lining is used to show different levels of quality. It's for example seen with the prams that has three price ranges.
1. Odder (between 9,000 – 11,000 DKK)
2. Emmaljunga (approx. 8,000 DKK)
3. Brio (approx. 7,000 DKK)
It's even clearer with the strollers:
1. Stokke 4,300 – 10,000 DKK
2. Emmaljunga, 2,800 – 5,700 DKK
3. Mamas & Papas, 5,000 DKK
4. Nuna, 2,500 – 5,000 DKK
5. Britax, 3,500 DKK
6. Cybex, 2,300 – 3,000 DKK
7. Brio, 2,700 DKK
8. Hauck, 2,400 DKK
9. Scandia 2,300 DKK
10. Quinny, 2,000 DKK
11. I'coo, 1,700 DKK
12. Chicco, 1,500 DKK
13. ZERO2FOUR, 800 DKK
It's clear to see that the market is competitive. A lot of the more well known brands have various types of strollers at different price ranges and with different features. Some of them even have extra equipment to buy so the customer can design their own stroller, which also differentiates the more well known brands from the rest.
4.
Are the prices on its website the same as those in the store
They don’t have the exact same discount in the online shop as in the store.
The assortment on the online shop is similar to the assortment in the physical stores and the prices likewise. However, the offers on the online shop may be different from the physical store and vice versa.
5.
Evaluate your findings. Do you believe the retailer is using the best pricing strategy and
tactics for its type of store – what can be done to improve
Give more discount to first time first time parents, that might have to buy a lot of things, and maybe offer them a starting package with free diaper.
Because the strollers is a one time buy, costumers could get some discount if they bought something else with it (cross sale).
CARB, Retail Management and Retail Marketing, 2 nd semester 2015

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CARB, Retail Management and Retail Marketing, 2 nd semester 2015