TyroCity

Discussion on: Channel System Integration

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Kotler & Keller (2016), in their book Marketing Management, marketing channel also known as distribution channel is the set of activities involved in the process of making product or service available for the consumption by the consumer or business organization. Effective marketing channel aims in reaching out or attracting more customers to bring profitability.

BigMart is the best retailer for now as they have been doing really well with the retailing and mainly the groceries. They have around 25 stores within Kathmandu valley, in small and residential area that makes them popular among the households. Currently, they are in focused for Kathmandu valley only. They sell each item required in an household and has proved them as a one stop solution mainly for the working women who cannot go to each shop for purchasing things and also can’t go too far distance early morning sometimes. They targeting the households on different part of cities have been successful as for groceries; people in Nepal would still go to the stores and buy things by themselves. They are more focused for finished groceries, but, the customers are now demanding morning milk and vegetables also. So, they have separate stall for the vegetables which are organic. The growth has been increasing rapidly that they have introduces BigMart app for online purchase to their shoppers.

BigMart, a year’s back, there is no other distribution channel other than the retail stores. Therefore they sell only through their retail stores that are placed in various parts in the cities and mainly in the residential area including; Pepsicola, Lazimpat, Battisputali, Koteshwor, Shantinagar, Ekantkuna, etc. Their target market being the residential areas and the household, they have been doing well. In current, they have also developed BigMart app which provides ways to customers to interact with BigMart Loyalty system and get benefited with various promotions and discount vouchers offered by BigMart Stores. Customers can make mobile order and choose from nearby store to pick up the items. The ultimate purpose of the app is to provide value and savings concept to their shoppers.

According to Morash & Clinton (1998), supply chain integration customer value through collaborative closeness versus operational excellence. It is a collection of physical entities such as manufacturing plants, distribution centres, conveyances, retail outlets, people and information, which are linked through consumption. Effective and efficient supply chain increase customer value while maintaining competitive prices. In my view, BigMart should particularly focused for their competitiveness on supply chain, as their computers like Mall, Bhatbhateni are extending their branch too. Their online presence and the demands can fulfil by the nearest stores form the ordered place. There was a research on US female m-internet users, mobile retail apps offer customers reward opportunities when they physically walk into stores or scan the barcodes of certain products using mobile cameras (Kang & Johnson, 2015). People are looking for ease in everything and this online presence has helped their shoppers so far. They have been able to build the customer value and place in people’s heart, which they are also hoping for the same through their online service.

The BigMart innovation network encourages new products and ideas. Previously, they have introduced only the finished packaging goods, but, as per our needs they have introduced organic vegetables which has made us ease. In current, their online presence will definitely help us purchase from our homes. I am regular customer for BigMart, and this online presence has really helped me in ordering grosser.

References

Kang, J. Y. M., & Johnson, K. K. (2015). Positive word-of-mouth for mobile location-based service retail apps usage. International Journal of Mobile Communications, 13 (6), 599-618.

Kotler, P., & Keller, K. L. (2016). Marketing Management . Boston: Pearson.

Morash, E. A., & Clinton, S. R. (1998). Supply chain integration: customer value through collaborative closeness versus operational excellence. Journal of Marketing Theory and Practice, 6 (4), 104-120.