-       No promotion costs built into price ie; Aldi

-       Exclusivity

-       No competition pricing/matching

-       Store reputation can make the label successful

-       Customers often perceive better value

-       Can encourage customer loyalty to the store

-       Powerful suppliers don’t dictate terms

-       Can specifically meet the customers needs

Disadvantages
- -       May not be well known as a credible brad

-       Will need $ spent to become recognized

-       No manufacturers promotional money available

-       Risk of stock is totally on the retailer (no sale or return) – if you buy too much, you own it, cant be sold any where else (kraft peanut butter can be sold anywhere, but coles peanut butter has to be sold at coles)

·       Define Customer service: Customer service is known as the assistance and advice provided by a company to those people who buy or use its products or services.

 

 

Define Sustainable competitive advantage and how it gives an actual advantage:

·      A sustainable competitive advantage is a long term advantage over competitors than you can hold in your retail store. 

·      By doing things differently and holding this advantage, consumers will regularly revisit your store due to the exceptional stock, service, knowledge etc.

·      If customer service is fantastic, then it gives you this competitive advantage over other retailers, further contributing to customers regularly returning to our store. As a result of this customer service and these returning customers, you can introduce other features in your retail store, providing more advantages over competitors and allowing your customers to interact with these new features. 

 

Industry examples and what changes retailers can make to improve customer service: 

·      Eg Nike have someone on the door to greet the customer

·      Apple have people on the door to ask your needs and then get a sales person to come and meet you

 

·      Provide more scenario planning to enhance customer service and provide staff with knowledge of how to deal with a different situation.

·      Train staff in regards to different products, such as shoe experts, clothing experts and the benefits of these
- Add additional staff members to the working day (if high foot traffic from customers) therefore there is enough staff to counter this customer demand. 
- Implement self service checkout options if those customers do not want to interact with others.
- this allows them to search up items on screens to see if it is in stock.