Business Marketing

Business Marketing is said to be a marketing process in which organizations or individuals tries to sell their products or services to other companies, so as to use them as “components in products or services they offer, or use them to support their operations”. Primarily, Retailing is a business marketing concept in which several companies use as means to sell their products. Originally, a retailer is a part of supply chain; it basically “purchase goods or products in large quantities directly from manufacturers or wholesalers, then sell in smaller quantities to consumers to make profit. On the other hand, there are certain products also used by retailers from other companies in which they use to support their own operations such as cash registers, scanners, refrigerators, etc. As been mentioned earlier, looking at the general concept of a retail business, a business marketing is important.

Duane Reade as retail and a chain store, now popularly known as drug store that offers prescription and over-the-counter drugs, vitamins and nutritional products, health and beauty care items, cosmetics, greeting cards, food and convenience items, and photo processing product items for other companies and many more. Pragmatically, on Duane Reade part as a retailer, it does not engage in this kind of marketing activity; instead it uses several components of promotional mix like retail marketing plans, sales promotion ideas, branding and advertising resources, to target its own customers/consumers. However, we can also say for the fact that Duane Reade carries several product items originally owned by other companies, it also involve in business marketing i.e. to support its own operations and business. The relationship between Duane Reade and other companies in which it carries their products, would be deemed 'Business Marketing'.We might want to mention one or two products used by Duane Reade as an example of business marketing i.e. between Duane Reade and other companies such as cash registers, scanners and refrigerators. Having said all these, business marketing can be considered very essential for the viability and sustainability of any business, especially to support its operations.

 

Segmenting and Targeting Market

 

Segmenting Markets is a strategy used by companies to improve their market share, competitive advantage and profits. According to my marketing text, “Market segmentation is the process of dividing a market into meaningful, relatively, similar and identifiable segment or groups”. In other words, the process in which a company tries to breakdown its larger target market to a smaller, with “more homogeneous groups of customers that you can more efficiently market to”. However, effective market segmentation definitely requires a good understand of the market, and the rightful skills to select the appropriate segment(s). 

As for Duane Reade, a chain store well known over the years as ‘drug store’ appears not to be what it used to be, seen beyond just ordinary drug store. Duane Reade is a good example of companies that have chosen a good, viable and effective market segment to further expand its market share, competitiveness and profitability. A business and market savvy person would want to agree to the fact that the effective and rightful market segment determined and chosen by Duane Reade, was the key success to its business.

Duane Reade- Demographics Market Segmentation

This is one market-segmentation that has helped Duane-Reade, a chain store known to be a drug-store to breakdown its larger target market into subgroup, based on age, gender, race, occupation, marital status, and income earners. Going to most Duane Reade stores today, you’ll find out that it now offer several products mix, said to target people of different age, race, gender, occupation or even income earners. Duane Reade coming out with the idea of ‘New Look’ in its stores is one way to depict a good demographic market segmentation i.e. which targets both genders of all any age group. The new look section offers various products such as body creams, facial scrubs, colognes/perfumes, cleansers, soaps, shaving sticks, shampoos, conditioners, deodorants, hair-creams for  both female and male of any age group; also a product line of feminine hygiene products, contact lenses treatments, safe sex products(latex/condoms) in other sections. Duane Reade not only carry product line for adults, there are various product items for  babies such as baby food, creams, diapers, and household in its entirety i.e. selling products like mops, mop can, bulbs, power surge, rug sweeper etc. There are other sections in the store that deals with various food items and beverages. All these can be said to target people of different age group; as we all know, that food is a necessity of life. Having mentioned all these, anyone can agree and see why Duane Reade is gaining market share, maintaining a sustanable competitive advantage and viable market dominance over the years especially in a city like New york, rich in cultural diversity.

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Developing and Managing Products

 

In terms of developing a new product(s), little can be said about Duane Reade. Duane Reade is a retail and chain-store popularly known to be a drug store. As of today, Duane Reade is seen beyond just ordinary drug store, it now offers different product assortments based on much broader concept. As being discussed previously, Duane Reade does not

conceptualized its market activities on developing new products, instead uses "market concept"; a philosophy to carry out its operations. And as a matter of fact, this has been a key success to its market dominance, achieving organizational goals and gaining competitive advantage i.e. by creating, offering, delivering and communicating customer value and needs to its targeted customers. According to a statement made on its website, " In our fast-paced, hands on retail environment our opportunities include everything from store associates to beauty advisors to store management".

Private Labeling

In effort to further seek a dominant market share, Duane Reade embarked on a new strategic alliance with CBX; a strategic branding company, to build upon Daune Reade's new Image. The purpose of this alliance, is for CBX to "provide input into Duane Reade’s private brand architecture, and designed its private label brand imagery and packaging systems". Also to help “revamp the loyalty card brand image and collateral material". According to Todd Maute, Managing Partner, CBX, the mission statement for this strategic alliance is to "broaden Duane Reade’s private brand product appeal, enhancing its position as the preferred store for New Yorkers and further bringing to life the brand’s new positioning ‘New York Living Made Easy".

Duane Reade Private Labeling

  With the help of CBX collaborating with several retailers on “multiple fronts”, it has strongly strengthened the good relationship of Duane Reade and its customers/ consumers. According to this affirmative statement made on its website “The New York marketplace breeds it own type of shoppers. And retailer Duane Reade knows exactly who they are, what they need, and how they like to shop. With more than 250 locations in New York and its surrounding boroughs, and a dominant market share, Duane Reade sought to further develop its position and product offering specifically for this shopper and wrapped in a New York iconic style".