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Customer targeting and micro-marketing in a retail supply chain

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. / Includes bibliographical references (p. 89-90). / As most companies in the consumer products space develop operational capabilities to produce and distribute high-quality low-cost products, leading firms in the industry continuously seek new ways to increase profitability and provide value to their retail partners and end consumers. While firms such as Procter & Gamble (P&G) have developed lean and flexible supply chains, this innovation has not had significant impact on the actual sale of product to the customer in individual stores. Analysis shows that large differences in the level of consumer demand for specific products exist across retail chains. However, current practices typically treat all stores across a chain the same. This thesis presents methods to target store-level marketing levers, including product mix, promotions, pricing, distribution and inventory management levels, based on shopper demographics and past purchasing behavior. Specifically, a framework to divide large retail chains into smaller "virtual chains" and subsequently develop targeted micro-marketing strategies for these virtual chains is presented. Research for this thesis was conducted during a six and a half month internship with P&G's Product Supply group at the Cosmetics division in Hunt Valley Maryland. The internship was affiliated with the Massachusetts Institute of Technology's Leaders for Manufacturing Program. / by John P. Sharkey. / S.M. / M.B.A.

Identiferoai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/34782
Date January 2004
CreatorsSharkey, John P. (John Phillip), 1977-
ContributorsDonald Rosenfield and David Simchi-Levi., Leaders for Manufacturing Program., Leaders for Manufacturing Program at MIT, Massachusetts Institute of Technology. Department of Civil and Environmental Engineering, Sloan School of Management
PublisherMassachusetts Institute of Technology
Source SetsM.I.T. Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format90 p., 5973795 bytes, 5973598 bytes, application/pdf, application/pdf, application/pdf
RightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582

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