Distribution in the retail segment

Extract

[...] But it is in the non-food segment that the majority of mergers took place. In the pharmaceutical industry adequate buying power is required to negotiate with the major insurance companies, it is this logic that has governed the conduct of concentrations of one part by Penney and Eckerd's and secondly by Shopko and Phar Mor. All these comparisons are intended to minimize costs and have a strong bargaining power over manufacturers in a market where price competition is increasingly fierce. [...]

[...] Brands The emergence of the first-price brands launched by dealers experience a lower inflow of customers to the stores. With the emergence of brands France, Italy and Britain saw the rise of Tesco Value Line, Primi Prezzi Italy and Auchan. The introduction of these brands witnessed the problems of positioning and merchandising, as the consumers associated the product assortments and pricing with the economic feasibility of the company, which would have devalued the image of these companies. The major chains were well placed to provide products of equal quality to that of the top brands under one label. [...]

[...] However, coming up with a differentiation may be easy but implementing the same especially in the retail segment is a Herculean task. Differentiation is based on the analysis of purchasing behavior of the consumer, segmentation of the application and the choice of positioning the part of the company. However the risk of imitation is high in these areas. We will discuss three important aspects of differentiation strategies, including the growth of private labels (brands) and the role of communication and e-commerce. [...]