Bhat-Bhateni Supermarket and Departmental Store is one of my favorite retailer, I chose to go ahead with for the discussion post. It is the largest supermarket and department store chain in Nepal serving more than 50,000 customers from its fourteen stores in different parts of Nepal. The supermarket offers more than 150,000 varieties including groceries, kitchenware, sports and toys, clothing, liquor, electrics and even jewelry from more than 750 local and international suppliers (“About Bhat-Bhateni”, 2018).
This supermarket uses horizontal marketing system. This is the structure that most businesses use around the world. With the use of horizontal marketing system, the economic incentive to help other succeed doesn’t exist (Mathur, 2012). The store has the power to replace any product that it has in its store for the other competitor of the same category, move the product to a different section or make any other changes. For example, Bhat-Bhateni can decide to replace soap products from ‘ABC’ company with another company in ‘XYZ’. Their recent tie-up with eSewa to convert their online shopping system to integrate with eSewa (a digital wallet owned by F1Soft) to run a full-scale e-commerce system is something that further explains their practice of horizontal marketing system.
I would like to see the business also move towards vertical marketing system as with horizontal marketing structure, the cost multiplies with every new additional location, creates competition between other business for self-space where no business benefit from each other effort as they’ll be cutting off their own profit, time and resources as an owner yourself is spread out along with the resources. Having said that I would like to see the business also move towards vertical marketing system, it’s not that I like the business to shift completely towards this system but also incorporate contractual vertical marketing system to practice by allowing licensing of the model. A license would allow more control with the superstore to ensure that the quality and control of the stores aren’t lost while also providing (allowing to rent) the brand of Bhat-Bhateni after paying the certain license fee. In addition to that, the business can also opt to add a certain percentage of royalty in addition to it for the profits or an annual license fee. This will help them maximize the profit with equal effort as of now while working in isolation, those will also help spread the name out to add more value to the initial business. An example of successful venture putting this into practice can be Starbucks of whose almost more than 5,000 stores worldwide are licensed.
Multiple channel is something that might be something I might probably use them. This is because it provides a different way for the business to reach to the customer like having a web-based platform where they can sell things online and provide a home delivery system. All those are some form of luxury which you always look out from in the current age and time and help reach out to more people while also maximizing the sells (Aldin & Stahre, 2003). In addition to that, Bhat-Bhateni also produces some of the exclusive items which are consumed in day to day life, they can use other wholesalers, retailers to market and sell those products, with the pricing being reasonable and those products of good quality - I’ll certainly buy those products from these channels as well.
Aldin, N., & Stahre, F. (2003). Electronic commerce, marketing channels and logistics platforms–a wholesaler perspective. European Journal Of Operational Research , 144 (2), 270-279.
Bhat-Bhateni Supermarket and Departmental Store is one of my favorite retailer, I chose to go ahead with for the discussion post. It is the largest supermarket and department store chain in Nepal serving more than 50,000 customers from its fourteen stores in different parts of Nepal. The supermarket offers more than 150,000 varieties including groceries, kitchenware, sports and toys, clothing, liquor, electrics and even jewelry from more than 750 local and international suppliers (“About Bhat-Bhateni”, 2018).
This supermarket uses horizontal marketing system. This is the structure that most businesses use around the world. With the use of horizontal marketing system, the economic incentive to help other succeed doesn’t exist (Mathur, 2012). The store has the power to replace any product that it has in its store for the other competitor of the same category, move the product to a different section or make any other changes. For example, Bhat-Bhateni can decide to replace soap products from ‘ABC’ company with another company in ‘XYZ’. Their recent tie-up with eSewa to convert their online shopping system to integrate with eSewa (a digital wallet owned by F1Soft) to run a full-scale e-commerce system is something that further explains their practice of horizontal marketing system.
I would like to see the business also move towards vertical marketing system as with horizontal marketing structure, the cost multiplies with every new additional location, creates competition between other business for self-space where no business benefit from each other effort as they’ll be cutting off their own profit, time and resources as an owner yourself is spread out along with the resources. Having said that I would like to see the business also move towards vertical marketing system, it’s not that I like the business to shift completely towards this system but also incorporate contractual vertical marketing system to practice by allowing licensing of the model. A license would allow more control with the superstore to ensure that the quality and control of the stores aren’t lost while also providing (allowing to rent) the brand of Bhat-Bhateni after paying the certain license fee. In addition to that, the business can also opt to add a certain percentage of royalty in addition to it for the profits or an annual license fee. This will help them maximize the profit with equal effort as of now while working in isolation, those will also help spread the name out to add more value to the initial business. An example of successful venture putting this into practice can be Starbucks of whose almost more than 5,000 stores worldwide are licensed.
Multiple channel is something that might be something I might probably use them. This is because it provides a different way for the business to reach to the customer like having a web-based platform where they can sell things online and provide a home delivery system. All those are some form of luxury which you always look out from in the current age and time and help reach out to more people while also maximizing the sells (Aldin & Stahre, 2003). In addition to that, Bhat-Bhateni also produces some of the exclusive items which are consumed in day to day life, they can use other wholesalers, retailers to market and sell those products, with the pricing being reasonable and those products of good quality - I’ll certainly buy those products from these channels as well.
Reference
About Bhat-Bhateni. (2018). Retrieved from bbsm.com.np/about-us/welcome-to-bbsm/ 8
Aldin, N., & Stahre, F. (2003). Electronic commerce, marketing channels and logistics platforms–a wholesaler perspective. European Journal Of Operational Research , 144 (2), 270-279.
Mathur, P. (2012). Designing and managing integrated marketing channels. Retrieved from slideshare.net/PranjalMathur/desig...