ERIC Number: EJ1045088
Record Type: Journal
Publication Date: 2014
Reference Count: N/A
Bailey, Bruce C.; Levin, Michael A.
Marketing Education Review, v24 n3 p239-245 Fall 2014
In October 2010, Phil Wein, president of Emporium Luggage, was looking for ways to expand his retail luggage operation. Like many firms in the luggage industry, his leisure travel segment had been hurt by the 9/11 terrorist attacks, which forced several luggage retailers to retrench. More recently, the U.S. recession that started in 2008, and the resulting higher unemployment rate, had cut down on business travel. Hence, his core business customers had reduced their spending on travel. Furthermore, the neighborhoods that Emporium Luggage had successfully serviced in the past were changing. Reduced housing prices meant that older workers were "retiring in place," that is, staying in their homes after their working days were over, and younger, working families were not moving in to replace the retirees. Accordingly, Emporium had reduced its retail presence to its three most profitable locations. However, there were still opportunities to investigate. The greater metropolitan area continued to expand away from the city as businesses sought lower land prices and access to employees living in the bedroom communities surrounding the city. As a result, Mr. Wein thought he might have an opportunity to better serve those customers with a new retail location. Like all physical retailers, Emporium Luggage had lost customers to Internet-based retailers, including Amazon. Wein had countered by adding two Internet stores, which were not branded as Emporium. These stores offered similar luggage items but not the same merchandise mix as Emporium. Wein considered opening a fourth physical, or "bricks-and-mortar," store to be located closer to potential customers. This case study opens up discussion on the following topics: (1) What forces in the marketing environment are at play in Mr. Wein's decision making?; (2) What is the unique selling proposition of a "bricks-and-mortar" location when compared to a virtual store?; (3) What factors go into the decision on where to locate a new store?; and (4) How should Mr. Wein promote the new store opening, and continue to promote Emporium Luggage to new and current customers?
Descriptors: Marketing, Retailing, Distributive Education, Merchandising, Geographic Location, Case Studies, Discussion (Teaching Technique), Case Method (Teaching Technique), Entrepreneurship
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A