Chapter 3 Nonstore Retail Operations The Internet has changed the way people fi nd and buy products and services. It has also created a whole new culture. Terms like websites, online stores, apps, dot-coms, and search engines are now common. Online shopping has become a natural way to shop and is now necessary for many retailers to remain profi table. Some nonstore retailers do have a physical presence, such as sales through catalogs, in-home parties, and street vendors. These options are still very convenient and often involve some face-to-face interaction. Nearly every brick-and-mortar store also uses one or more nonstore retail option. Adding nonstore retail options increases how many customers the retailer can reach and potentially boosts sales. Reading Prep Before reading this chapter, review the table of contents for this text. Create a graphic organizer that traces the content from simple to complex ideas. Case Study Omaha Steaks At a time when very few people would consider buying groceries through phone ordering, Omaha Steaks proved to be a thriving retail food business. How did Omaha Steaks become so successful in a market that others did not dare to enter? The answer is a good product and a good system, with an excellently integrated marketing strategy. The company strives to make shopping easy for customers. Omaha Steaks began selling its products to customers through catalog sales. It was one of the fi rst companies to implement a toll-free sales number for ordering. Today, Omaha Steaks has an easy-to-use website. The company also has an aggressive marketing strategy. Customers receive regular mailings, telephone calls, and e-mails with specials and promotions. In addition, a mobile app is available to help customers cook their products to perfection. Approximately 94 percent of Omaha Steaks’ sales occur in places other than brick-and-mortar stores. With more than 1.5 million customers and about $450 million in annual sales, Omaha Steaks is the consummate nonstore retailer. The company proves that customers are not always looking for the lowest price, but rather quality products and a good shopping experience. Smart, strategic planning of the customer experience led to successful nonstore retailing for this retailer. College and Career Readiness
Previous Page Next Page