Chapter 14: Format Strategy

Question 1

We are seeing more and more different types of shops (formats) from the same company (for example, Albert Heijn with an AH to go and Albert Heijn XL and the online market through ah.nl).

Answer 1

Retail is a field in which scalability and duplicability (of its own format) are of great importance. This is how retailers have been able to achieve their growth by duplicating as much as possible, they achieve economies of scale in terms of both procurement and sales.

Question 2

multi-format approach

Answer 2

can be pursued through acquisition, or by starting a new formula. These multi formula companies are often in the same catchment areas and sometimes even in the same market segments, and all for the sake of more market share and lower costs, because they want to achieve economies of scale.

Question 3

Format strategy is

Answer 3

demand driven = customer-centric, based on needs.

Environmental factors in retail are changing rapidly. This means that, if retailers want to get the most out of a catchment area, a single-format approach will no longer do the trick. Although a formula is tailored to a target group, the target groups differ greatly by catchment area. Even this change requires a different product range within the same formula. In addition to the choice of channels, a retailer must also look at the choice of format.

Question 4

Research shows that shopping can have both utilitarian and hedonistic values

Answer 4

• Utilitarian shopping: Getting to a solution as efficiently and quickly as possible while shopping
  o Efficiency: The importance for the consumer of saving time and resources
  o Performance: The importance of the successful purchase (finding what you came for)
• Hedonistic shopping: Is more about the experience, the stimulation of senses and imagination. Shopping is fun and the emotional experience is positive, regardless of whether you have been able to make a purchase.

Question 5

types of commerce:
E
M
S
P

Answer 5

• E-commerce = own web shop
• M-commerce = mobile web shop / app
• S-commerce = selling through social media
• P-commerce = platform (selling through Amazon)

Question 6

The endless fight in retail:

Answer 6

standardizing Vs differentiation

Question 7

multi format

Answer 7

format strategy: customer centric based on needs from utilitarianism to hedonic

multi format so
- efficiency & achievement
- experience regardless of purchase

DRIVES ASSORTMENT

Question 8

multiformat in table

Answer 8

horizontal = need = utiliarian OR hedonic
vertical = channel = offline OR online

to for instance location would be:
online : E, M, S, P commerce
offline: high traffic, inner city center, heighborhood centre, out of town

Question 9

Conceptual e-strategy retail growth model

Answer 9

horizontal axis:
Low: Brick & morter origin
High: origin online

vertical axis:
left: food
right: non food

Question 10

Conceptual e-strategy retail growth model where to go

Answer 10

to the middel

AH - started low left
bought bol.com - high right