What Should Retailers Do as “Big Soda” Declines?

The major soda (carbonated beverage) marketers are having a tough go of it some locales where sales are saturated. But an even bigger issue is that many people are turning away from soda because of health concerns.
Recently, the New York Times ran a major story entitled: “The Decline of ‘Big Soda”; it reported that “the drop in soda consumption represents the single largest change in the American diet in the last decade.”
In this story, observed that:
“Even as anti-obesity campaigners have failed to pass soda taxes, they have accomplished something larger. In the course of the fight, they have reminded people that soda is not a very healthy product. They have echoed similar messages coming from public health researchers and others — and fundamentally changed the way Americans think about soda. Over the last 20 years, sales of full-calorie soda in the United States have plummeted by more than 25 percent. Soda consumption, which rocketed from the 1960s through 1990s, is now experiencing a serious and sustained decline.”
“Sales are stagnating as a growing number of Americans say they are actively trying to avoid the drinks that have been a mainstay of American culture. Sales of bottled water have shot up, and bottled water is now on track to overtake soda as the largest beverage category in two years, according to at least one industry projection.”
Click the image to read more.

                           Photo by Ruth Fremson/The New York Times

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Social Media and Retailing | Tagged , , , , , , , , , , | 1 Comment

The Effect of Online Reviews on Sales

Amazon has shown customer reviews and ratings for years. Many other retailers have followed suit. So, a vital question is: What is a good online rating score for a retailer or a specific product? The results of a recent study may surprise you, since a 5.0 out of 5.0 rating is NOT the one eliciting the most customer purchases.
As reported by Retail TouchPoints:
“While every retailer pushes for perfect ratings to illustrate the effectiveness of their products, these ideal ratings may not be optimal for sales. On a scale of one to five, the likelihood of purchase peaks for products with an overall average star rating between 4.2 and 4.5, according to research from Northwestern University.”
“Above 4.5, purchase likelihood drops as the rating approaches five stars. Five-star reviews actually are often considered ‘too good to be true’ by the consumer. As counter-intuitive as that logic may seem, negative reviews can have a positive impact because they help establish trust and authenticity with the consumer.”
To download the full Northwestern University/PowerReviews study on online ratings, click the image below. NOTE: A free signup is required.

 

 

Posted in Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 7: Communicating with the Customer | Tagged , , , , , , , , , , | 1 Comment

UPS: Monitoring Change in the Global Supply Chain

The global supply chain is sure getting more complex. UPS annually conducts a B2B survey to see what is changing in how the supply chain moves merchandise from manufacturers to their customers.
To read about UPS’ latest research and view on track industry trends, download its 5th annual UPS Change in the (Supply) Chain survey by clicking here.
And take a look at this summary UPS video.

 

 

Posted in Global Retailing, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Technology in Retailing, Video Clips (non-career) | Tagged , , , , , , | 1 Comment