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Btec Level 2 Btec Level 2 Diploma in Diploma in BusinessBusiness
Unit 21
Promotion & Promotion & Branding in RetailBranding in Retail
Assessment Criteria
P1 Identify the different types of retailers in Brighouse Town Centre
P2 Explain how other businesses support the retail sector (supply chains)
M1 Compare TWO retailers in Brighouse
D1 Evaluate the choice of supply chain used by ONE retailer
P1• Explain the five main types of retailers• On a map of Brighouse, identify and
label the different retailers. Create a key code to show the different types of retailers.
• Produce a table listing all the different types of retailers in Brighouse
• For TWO retailers, create a fact sheet which explains what sector they operate in and what they sell
Retailer
Someone who sells goods to a consumer.
Types of Retail OutletsTypes of Retail OutletsIndependent Retailers• One shop: usually owned by a sole trader• Offer a personal service, convenient location,
longer opening hours
• Retail Chain Stores• Organisation with more than 10 branches• Speciality shops (eg furniture, clothing,
books)• Some are variety chain stores (eg M&S)• Relatively low prices, fast-moving lines,
centralised buying
P1
Types of Retail OutletsTypes of Retail Outlets
Non-Profit Retailers• Charity shops• Profit goes to the charity
Market Trader• Relatively low prices – consumers are
attracted because of the bargains• Brighouse market – every Tuesday and
Saturday
Supermarkets• Large companies with large number of
branches• Sell food and non-food products• Now sell insurance, loans, mobile phones etc
P1
Survey of Brighouse Town Centre
On a map of Brighouse:
• Show the types of retail outlets there are in Brighouse – include the market
• Create a key• Put a suitable title
Table of Retailers in Brighouse:• Complete the table listing all the different
types of retailers in Brighouse, what they sell and their size
P1
Investigation into Two Retail Outlets
1. Choose TWO retailers in Brighouse. ONE must be a SUPERMARKET
2. Create TWO factsheets – one for each retailer:
• Name of the retailer and address• Describe the shop, and the products and services
they sell• Sector they operate in (eg food, fashion)• Business ownership (eg sole trader, limited
company)• Retail format (eg convenience store; specialist
outlet; chain store)• Explain why the retail channel used is appropriate
P1
Example of a summary of an independent trader:
Czerwick’s• Independent trader in the grocery sector –
food and drink. Family owned business, independent trader
• One shop located in Brighouse on Commercial Street, but they sell their products all over the world – through mail order
• Three floors – basement with a large wine cellar; small “mezzanine” area with beers and lager from around the world. Ground floor has spirits and mainly various types of cheese.
• Outside display area in front of the shop fascia
Example of a summary of an independent trader:
Czerwick’s• Display shelves on the right• Serving area on left – freshly made sandwiches
and cheeses/deli counter• Appropriate retail channel because:
1. They keep all the profit made2. They offer specialist food and drink to a “niche”
market3. Good location in the town centre – attracts
lunchtime customers4. Can sell world wide through mail order and the
internet – increases profit.
Example ofa
Factsheet
P1
Compare how two retailers operate
• Using your factsheet worksheets, write a report comparing the two retailers
• Your report must show a clear understanding of the format and design of the store, and you must say which you think is a better design and why
• You must compare the two locations and say which you think is better and why
• You must include a labelled diagram of the store
• Suitable images must be inserted and talked about
M1
A Comparison …Say what is the same and what is
different about the two organisations. You can use one or two sentences:
Either:• Czerwicks is an independent retailer and a
family owned business. On the other hand, Boots is a chain store and a public limited company.
Or:• Czerwicks is an independent retailer,
whereas Boots is a chain store.
M1
Example Diagram Showing Store Format of Czerwick’s
ServingArea andDeliCounter
Beer and Lager
ProductDisplays
Stairsdown towinecellar Customer
Flow
Canned, non perishable goods and seasonal
M1
Evaluation of the Retail Channel used by XYZ
Name the retailer and the channel they use
Explain of the channel usedExplain the benefits of using this retail
channelExplain the disadvantages of using this
retail channelOverall, is this the best channel for this
particular retailer?
D1
Channel
•Independent Retailer•Market Retailer•Chain Store•Supermarket•Non-profit Retailer
D1
Supermarkets• Very large retail units; usually public
limited companies• 2 supermarkets in 1963, 400 in 1980,
over 8,000 in 2011• Low prices, minimum service, huge
car parking, cut-price petrol• Food and non-food goods – often over
25,000 different products• Self service, high sales volume• Size: 25,000-50,000 sq ft
D1
Benefits of being a Supermarket
• Locate outside of town centres – land is cheaper (insert a map showing the location of the store compared to the town centre)
• Large retail units – can sell a very wide range of goods (show examples)
• Wide range of goods and services – potential for huge sales (give figures for your supermarket)
• Can purchase stock in bulk and receive discounts (economies of scale) – customers then benefit from lower prices – improves customer loyalty and repeat business
D1
Disadvantages of being a Supermarket
• Disliked by smaller retailers – can find it difficult to gain planning permission (explain an example)
• Very high business costs (premises; wages; purchase of stock; delivery costs)
• Must keep all shelves stocked at all times – logistics very important – must have excellent stock control systems to ensure they do not run out of stock
• Some products are perishable – must plan carefully how much to order and display in store (explain an example)
D1
The Supply Chain
Task:
Draw and label a poster which shows a diagram of the supply chain for your TWO chosen retailers.
On the poster, explain what each type of business does to support the retail sector.
P2
The Supply Chain
Retailers buy goods from suppliers and then sell them to consumers.
Retailers charge higher prices for the goods they sell than they pay for the goods when they buy from the manufacturers. This is called the “mark-up”.
Clothing retailers usually charge consumers TWICE the price than they paid for them.
Stage 1: Growing the Raw Materials
Coffee Growers
• Depending where they are located, farmers will grow the crops which flourish the best in that climate
• Crops must be harvested and then transported to a factory where they are processed
Examples:Corn is harvested and used to produce cereals and
cooking oilFruit is harvested and used to produce jelly and jamsWheat is harvested and used to make flour and
cereals
Stage 1: Growing the Raw Materials
• Growers are essential to retailers• Without growers, retailers would
not have any food to sell to consumers
• Growers help the supermarket to ensure that food is available all year round
Stage 1: How Growers Support Retailers
Stage 2: Manufacturing and Processing the
Products
Milk Production
• These businesses change the raw materials into a finished product
• They must order all the necessary raw materials to make the produce
Examples• Baked beans: beans, sauce, tin, paper
packaging• Hovis bread: flour, water, yeast, plastic
packaging
Stage 2: Manufacturing and Processing the
Products
Raw Materials Needed for a Tin of Heinz Baked Beans
• Manufacturers are essential to retailers – they produce and package goods which look attractive to consumers
• Without manufacturers, retailers would not be able to display the products attractively
Stage 2: How Manufacturers Support
Retailers
Stage 3: Delivery to a Wholesaler or RDC (Regional
Distribution Centre)
Tesco RegionalDistributionCentre
• Wholesalers buy from manufacturers, store the products in large warehouses and then sell to retailers
• Wholesalers “break bulk” – they receive large orders, then open the packaging and split it into smaller packages
• Some businesses (eg Sainsburys and Tesco) have their own warehouses. These are called “Regional Distribution Centres”.
Stage 3: Delivery to a Wholesaler or RDC (Regional
Distribution Centre)
• Retailers can order all their goods from one wholesaler – this saves time
• Retailers can order in bulk and receive discounts from the wholesaler
Stage 3: How Wholesalers and RDCs
Support Retailers
Stage 4: Delivery to Retailers
Haulage Companies:Deliver goods to Retailers
Stage 4: Delivery to Retailers
Stage 4: How Haulage Firms Support Retailers
Stage 5: Retailers display goods on shelves
Task: Two Posters
On the worksheet provided, fill in details of ten items you would buy at your chosen supermarket. At least 5 items must be food.
Complete the 5 stages of the supply chain on the worksheet.
On a sheet of A3 paper, produce a poster showing the supply chain for your chosen supermarket. Explanations of each stage must be included, plus images.
P2