Chapter 15: Distribution - McGraw-Hill Introduction to Business

Forever 21’s Granola Promotion Causes Social Media Uproar

July 30, 2019

From free finger food at Costo to complimentary mini-sized makeup at Sephora, companies have long depended on free samples as a powerful promotional tool. But as the clothing retailer Forever 21 recently learned, this time-tested strategy can backfire when paired with the wrong type of product.

Forever 21 routinely includes sample items when shipping out orders to its customer base of young women. Last week one of those products was a free Atkins-branded lemon granola bar that encouraged customers Continue reading →

Marketing, Ethics, Promotions, Retail, Product Distribution, Forever 21, Free samples

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] The Environmental Cost of Rush Shipping

July 26, 2019

NickelsMcHughMcHugh

For major online retailers like Amazon and Walmart, few matters are more important than quickly shipping products out to customers. But while free two-day shipping has largely become the norm in e-commerce, all those packages moving across the country can have a major impact on the environment. This video looks at the ecological effects of rush shipping and how retailers could seek to limit its use in the future.

Questions:

In what ways does rush shipping harm the environment? Continue reading →

Operations Management, Ethics, Retail, Transportation, Amazon, Sustainability, Product Distribution, E-commerce, Shipping

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Airports Gradually Allow Non-Travelers into Terminals

July 9, 2019

NickelsMcHughMcHugh

In the years before the Transportation Safety Administration (TSA) and heightened security measures, airports opened their doors to pretty much anybody who wanted to come in. Of course, most of the non-travelers who spent time in terminals were people waiting for passengers to disembark. After all, 20th century airports didn’t have much else besides a few newsstands and small restaurants.

Nowadays, though, many airport concourses are starting to look more like resorts than travel hubs. For instance, Tampa International Continue reading →

Marketing, Global, Travel, Product Distribution, Facility Location, Airports

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution

Party City Will Close 45 Stores Due to Helium Shortage

June 25, 2019

NickelsMcHughMcHugh

For decades, the New Jersey-based party supply retailer Party City has relied on balloon sales to keep it afloat. Doing so requires a plentiful supply of helium, the second-most abundant element in the universe that is nevertheless increasingly difficult to find on Earth. Due to both supply chain and production problems, companies are currently using up helium at a quicker rate than it can be produced. As a result, the skyrocketing price of helium has begun to spoil the fun Continue reading →

Economics, Operations Management, Retail, Supply chains, Product Distribution, Supply & Demand, Party City

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 15: Distribution

Register Outages Cause Trouble for Target

June 21, 2019

NickelsMcHughMcHugh

Last weekend, Target shoppers around the country received some unwelcome news when they reached the checkout counter. Due to an “internal technology issue,” the retailer’s registers crashed for about two hours on Saturday afternoon. Soon social media became filled with footage of long lines at Target stores as employees completed cash transactions by hand. Of course, many customers abandoned their carts and went home after they learned about the problem.

Eventually Target announced that the registers had come back online, Continue reading →

Operations Management, Retail, Security, Product Distribution, Credit Cards, Reputation, Payment systems

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Independent Shoe Stores Struggle after Losing Major Accounts

June 18, 2019

NickelsMcHughMcHugh

For most of the 20th century, American consumers relied on small local shoe stores to fulfill all of their footwear needs. Then big sporting goods retailers arrived on the scene followed by sophisticated online operations like Zappos. Although this increased competition forced some independent outlets to close, many others managed to survive thanks to their high level of service. At Colburn Shoe Store in Maine, for example, employees remember exactly what size shoe their customers wear as well as their Continue reading →

Ethics, Entrepreneurship, Retail, Nike, Product Distribution, E-commerce, Apparel, Footwear, Adidas

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Claire’s Recalls Asbestos-Contaminated Makeup

June 13, 2019

NickelsMcHughMcHugh

The last few years have not been good for Claire’s, the mall-based retailer known for its adolescent-focused cosmetics and accessories. In early 2018 the company filed for Chapter 11 bankruptcy protection after it accrued more than $2 billion in debt. Although Claire’s eventually emerged from bankruptcy, the end of the year also brought an unwelcome announcement from the Food and Drug Administration (FDA). According to the federal agency, Claire’s had been under investigation since 2017 for “high levels of asbestos” Continue reading →

Ethics, Branding, Retail, Product Distribution, Crisis management, Recalls, Claire’s

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution

BroadwayHD Aims to Become Netflix for Theater

June 11, 2019

NickelsMcHughMcHugh

On Sunday night CBS aired the 73rd Annual Tony Awards, one of the most important evenings in American theater. But while this prestigious ceremony has been compared to Broadway’s version of the Oscars, the Tonys don’t attract nearly as large of an audience as Hollywood’s big night. For instance, 30 million people watched the Academy Awards in February compared to just 6 million viewers for Sunday’s show. Although Broadway continues to enjoy strong box office sales, many theaters have had Continue reading →

Entrepreneurship, Product Development, Entertainment, Netflix, Streaming, Product Distribution, Broadway, Theater

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Celebrity Chefs Struggle to Keep Restaurants Open

June 6, 2019

NickelsMcHughMcHugh

For more than a decade, the British chef Jamie Oliver has been world famous for his global empire of restaurants and campaigns against junk food. But while he remains committed to using his platform to promote healthy eating, his name doesn’t appear to hold the same branding power as it once did. A few weeks ago, the celebrity chef announced that 22 of his 25 U.K. eateries would close after the Jamie Oliver Restaurant Group filed for bankruptcy protection. Although Continue reading →

Marketing, Entrepreneurship, Product Development, Branding, Promotions, Food & Drink, Celebrity chefs

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] How Subscription Services Became So Common

May 30, 2019

NickelsMcHughMcHugh

From music and movies to everyday items like clothes and toilet paper, today’s consumers can order all sorts of products through monthly subscription services. But as more companies adopt this sales strategy, it’s possible that consumers could get tired of subscriptions once all the monthly fees start stacking up. This video looks at why these services have become so widespread and offers advice for consumers who feel they’ve taken on too many subscriptions.

Questions:

Why are more companies starting to Continue reading →

Marketing, Pricing, Innovation, Product Distribution, Subscriptions

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos