Marketing channels are very important as the producer may not be good at selling or many not have the network to get his product to the customer. As explained by Kotler and Kellar, "A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and possession gaps that separate goods and services from those who need or want them. (Kotler & Kellar, 2012)” Big Mart is the new upcoming retailer that has taken the departmental store segment by surprise by their aggressive expansion to every local places available. I have personally seen it presence grow in Lalitpur from the first one that opened in Ekantakuna to Jahmsikhel, Kupondol, Sanepa in a period of a year. What they have done is gone where the customers are. They have used a pull strategy which I find similar to the 7/11 stores strategy.
Big marts aggressive expansion has challenged both the local shops and the bigger departmental stores such as Salesway, Namaste Supermarket and Bhatbhateni situated in Krishna Galli. Their location presence has made the life of people easier as almost everything can be found there. Many café’s such as Himalayan Java have also opened up their branches in and around Bigmart adding value for both of them.
For now we can see that they have only used one source of channel and that is by opening their own branches. They can do better by opening up multiple channels. Opening up smaller shops packed with the essential items just as the 7/11 has done. Their expansion is trying to gain market share and pull customers in but there is larger investment in this. Instead smaller shops catering to home delivery of rations would also be an added channel system of not waiting for the customer to come but to get the product directly to the customer. Push strategy in selecting channels could be good for them. Also opening up late till 11 would be great as there are demand at night as well. The night demand has not been met by any stores. Setting up vending machines could be another channel that they could incorporate for the night time.
I would suggest multiple channels to Bigmart as one channel is not sufficient to pull the customers made even more difficult by competitors such as local vendors who have relationship marketing and larger supermarkets that already have hold in the market. According to Kotler and Kellar, "In multichannel marketing, each channel targets a different segment of buyers, or different need states for one buyer, and delivers the right products in the right places in the right way at the least cost. When this doesn’t happen, there can be channel conflict, excessive cost, or insufficient demand. (Kotler & Kellar, 2012)” Thus understanding that multiple channel is better for marketing and reaching the customer also has negative implication in not handled well.
Reference
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
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Marketing channels are very important as the producer may not be good at selling or many not have the network to get his product to the customer. As explained by Kotler and Kellar, "A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and possession gaps that separate goods and services from those who need or want them. (Kotler & Kellar, 2012)” Big Mart is the new upcoming retailer that has taken the departmental store segment by surprise by their aggressive expansion to every local places available. I have personally seen it presence grow in Lalitpur from the first one that opened in Ekantakuna to Jahmsikhel, Kupondol, Sanepa in a period of a year. What they have done is gone where the customers are. They have used a pull strategy which I find similar to the 7/11 stores strategy.
Big marts aggressive expansion has challenged both the local shops and the bigger departmental stores such as Salesway, Namaste Supermarket and Bhatbhateni situated in Krishna Galli. Their location presence has made the life of people easier as almost everything can be found there. Many café’s such as Himalayan Java have also opened up their branches in and around Bigmart adding value for both of them.
For now we can see that they have only used one source of channel and that is by opening their own branches. They can do better by opening up multiple channels. Opening up smaller shops packed with the essential items just as the 7/11 has done. Their expansion is trying to gain market share and pull customers in but there is larger investment in this. Instead smaller shops catering to home delivery of rations would also be an added channel system of not waiting for the customer to come but to get the product directly to the customer. Push strategy in selecting channels could be good for them. Also opening up late till 11 would be great as there are demand at night as well. The night demand has not been met by any stores. Setting up vending machines could be another channel that they could incorporate for the night time.
I would suggest multiple channels to Bigmart as one channel is not sufficient to pull the customers made even more difficult by competitors such as local vendors who have relationship marketing and larger supermarkets that already have hold in the market. According to Kotler and Kellar, "In multichannel marketing, each channel targets a different segment of buyers, or different need states for one buyer, and delivers the right products in the right places in the right way at the least cost. When this doesn’t happen, there can be channel conflict, excessive cost, or insufficient demand. (Kotler & Kellar, 2012)” Thus understanding that multiple channel is better for marketing and reaching the customer also has negative implication in not handled well.
Reference
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.