Guest editorial

Citation

Newman, A.J. (2003), "Guest editorial", British Food Journal, Vol. 105 No. 9. https://doi.org/10.1108/bfj.2003.070105iaa.001

Guest editorial

This special issue draws on a varied and diverse range of topics from many branches of the retail sector. It uses a fairly broad definition of retailing to capture less familiar topics related to the sector. The purpose of this is to appeal to the wider readership of the BFJ, and to emphasise the importance and eclectic nature of retailing. Indeed, this approach has provided contributions that may be of interest to academics and students from a variety of disciplines. Hence, by representing varied questions and issues in various contexts it should assist BFJ readers to appreciate the scope of retail academic research.

Recently, during a rather harmless but energetic academic debate, I was confronted with a need to uphold the importance of taking a retail perspective and to consider commercial imperatives, when developing the technology that produces goods and services (for example, food products and the systems that delivers them). My strategy was to depict retailing as part of a chain of activities from source materials to end consumer. The argument followed the premise that "failure to consider retailing as a crucial part of this cycle is to deny that goods or services must, eventually, be sold or exchanged". For many in the discussion group this presumption was inconclusive and lacked the benefit of alternative (scientific) perspectives. Perhaps so, but nevertheless retailing accounts for 11 per cent of UK gross domestic product (GDP) and is valued at £200 billion in annual sales, with particular growth in sales of non-food categories such as financial services in most major food supermarkets. The varied nature of the sector is hopefully represented in the selection of papers and cases that now follow.

When we think of food purchasing we rarely think of the implications of diversification into sectors such as retail banking and insurance. The Martinelli and Sparks paper takes a traditional area like food retailing and demonstrates how changes in strategic direction have influenced other sectors, in this case financial services. The paper considers the operational, strategic and relational issues concerned with the entry of British food retailers into the financial services sector. For example, food retailers use financial services to secure themselves customer loyalty and therefore competitive advantage. This is a highly successful competitive strategy, and is also of great benefit to other relationship partners such as manufacturers. For example, retailers such as Tesco and Sainsbury have very strong reputations and brands, as so do the big name banks involved. These are serious businesses with considerable reputations for trustworthiness. Hence, there is little doubt that working partners such as manufacturers, which supply these retail institutions, would benefit from these linkages.

The next paper offers what could be a model for the British pharmaceutical market to follow. "Pills by post" is perhaps a concept that British consumers are not quite ready for, given the complexities and issues surrounding the Health Service Trusts. However, the opportunities for British chemists are clearly evident from the Schmidt and Pioch paper and case. In the UK, there is still the question of technology adoption rates, which are improving but still show evidence of social exclusion. This paper reports that only 1 per cent of Germans use an Internet pharmacy, which is a very small number indeed. However, there may be some benefit from linking to the emerging supermarket pharmacy chains that are now a familiar sight in most major stores. Hence, the move by food chains to provide a range of products via transactional Internet sites could be extended to medicines. For example, Schmidt and Pioch allude to (with reference to Balabanis and Vassileiou, 1999) a positive relationship between intention to buy from Web sites and income, prior experience of home shopping and strength of retailer brand. The latter is possibly the key issue for breaking into the UK market.

Of major importance to those organisations that adopt a marketing orientation is the theory and significance of retail positioning strategy. Most businesses continually ask key questions such as how do we measure and evaluate our customers' views, and what factors could we use to gauge the success of our positioning? The following paper from Devlin, Birtwistle and Macedo presents a methodological direction to elucidate questions of this nature, and may be deployed in many contexts. In brief, the empirical research investigates and identifies the attributes that consumers desire most from food retailers and discusses the components that form the basis of a means-end methodology. This is followed by analysis of the consequences of these attributes and the desired personal values resulting from them. Clearly, a study of this type can be used to inform the strategic decision making process of other types of food retailers (e.g. caterers, restaurateurs) and, naturally, manufacturers.

Research into the retail supply chain is of increased value to investigative inquiries when placed within the context of other sectors, where similar research issues may be encountered. For example, much can be drawn from the supply chain processes in the licensed trade, particularly the close relationships developed between retailers and suppliers. The Towers and Pratten case which follows on in sequence centres on the way in which benefits are derived from such relationships. Small independently leased public houses have developed a very close and mutually beneficial relationship with wholesalers, and the case seeks to develop the understanding of how publicans develop relations with respect to their stock holding policy. In essence, the publican has realised that the combined attributes of the two contributors to supply are greater as a collaborative partnership than as two separate participants in the same supply chain operating independently one of each other. Working and responding together in servicing fluctuating customer requirements can bring about benefits to both enterprises in a supply chain. Such a strategy can provide similar benefits when transferred to other sectors, such as for hoteliers and small catering businesses.

To survive, all businesses must achieve some market penetration. The market orientation and, consequently, the marketing activities of retail businesses vary across the sector and with the size of the organisation. Small businesses (SMEs), for example, are frequently questioned for adopting little or no marketing activities. In general, this is said to be due to a "lack of expertise or interest" in undertaking such activities, regardless of the potential benefits. The UK wine market is an area where little has been published in comparison to wine marketing worldwide. The next case from Oliver Richardson and Charles Dennis addresses this and considers the background and development of the retail marketing activities of UK vineyards, and analyses various strategies using three exemplar frameworks. The authors assert that for the small UK wine industry to exist and prosper, it is necessary to target niche segments using Porter's "focused differentiation" approach. Larger vineyards attempt a broader target market with tourism activities and diversification of various types. Analogous situations exist across the entire food sector and for SMEs and larger firms alike.

A major element of the marketing mix, product, incorporates a range of tangible and intangible elements. This last piece explores a key area of research and attribution for manufacturers and retailers: food packaging design. The authors, Vazquez, Bruce and Studd, argue that food retailers invest heavily in design expertise to create exciting packaging to entice customers to buy premium food products, and to strengthen their competitive edge. However, the process by which food retailers manage food-packaging design is generally under-researched. The case considers a top retailer and analyses this organisation's approach to pack design management, with the aim of improving its brand image through packaging design. In effect, this research produces a template for other studies and is of benefit to retailing and manufacturing organisations that seek ways to enhance customer perceptions of quality, functionality and added benefits. For example, understanding the process by which retail organisations undertake pack designs can assist key food product manufacturers cultivate closer relationships. This makes for mutually beneficial strategies in areas of pack design innovation and profile raising exercises for all concerned.

I trust that this selection of studies provides a useful contribution to the British Food Journal and, above all, helpful guidance to future research in this field.

Andrew J. NewmanUMIST, Manchester, UK

ReferenceBalbanis, G. and Vassileiou, S. (1999), "Same attitudinal predictors of home-shopping through the Internet", Journal of Marketing Management, Vol. 15, pp. 361-85.