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Retailing and Wholesaling
Presented To: Mr. Mohsin Ali Khan
Department of Management Sciences
Presented By : Group # 6
M.B.A. 1st Mor.
Group MembersGroup Members
• Muhammad Waseem• Uzma Batool• Saba Batool• Israr Ahmad • Muhammad Waseem
Retailing and Retailing and WholesalingWholesaling Retailing
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Retailer
A business whose sales come primarily from retailing.
Types of Types of Retailers Retailers
Amount of ServiceSelf-Service, Limited-Service and
Full-Service Retailers
Amount of ServiceSelf-Service, Limited-Service and
Full-Service Retailers
Product LineLength and Breadth of the Product
Assortment
Product LineLength and Breadth of the Product
Assortment
Relative PricesPricing Structure that is Used
by the Retailer
Relative PricesPricing Structure that is Used
by the Retailer
Retail OrganizationsIndependent, Corporate, or Contractual
Ownership Organization
Retail OrganizationsIndependent, Corporate, or Contractual
Ownership Organization
Specialty StoresSpecialty Stores
Department StoresDepartment Stores
SupermarketsSupermarkets
Convenience StoresConvenience Stores
SuperstoresSuperstores
Category KillersCategory Killers
Narrow Product Line, Deep AssortmentNarrow Product Line, Deep Assortment
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Food, Laundry, & Household Products
Wide Variety of Food, Laundry, & Household Products
Limited Line of High-Turnover Convenience Goods
Limited Line of High-Turnover Convenience Goods
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line
Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line
Store Type Length and Breadth of Product Assortment
Classification ByClassification By Product LineProduct Line
Classification ofClassification of Stores By Price Stores By Price
• Discount Store
A retail institution that sells standard merchandise at low prices by accepting low margins and selling at high volume.
Classification ofClassification of Stores By Price Stores By Price
• Off-Price Retailer
A retailer that buys at less than regular wholesale prices and sells at less than retail.
Classification ofClassification of Stores By Price Stores By Price
• Factory Outlet
An off-price retailing operation that is owned and operated by a manufacturing and that normally caries the manufacturer’s surplus discounted or irregular goods.
Classification ofClassification of Stores By Price Stores By Price
• Warehouse Club
An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing at deep discount to members who pay annual membership fees.
Organizational Organizational Approach Approach
• Chain StoreTwo or more outlets that are owned and controlled in
common, have central buying and merchandising, and sell similar lines of merchandise.
• Franchise A contractual association between a manufacturer,
wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.
Retailer & Marketing DecisionRetailer & Marketing Decision
Retailer MarketingMix
Retailer MarketingMix
Retailer StrategyRetailer Strategy
•Target Market
•Retail Store Positioning
Product and Service
Assortment
Prices
Promotion
Place (Location)
Target Market & Target Market & Positioning DecisionPositioning Decision
Retailers first must define their target markets and then decide how they will position themselves in these markets. Should the store focus on upscale, midscale, or downscale shoppers? Do target shoppers want variety depth of assortment, convenience, or low prices?
Retailer’s Product Assortment and Services Decisions
Product Assortment Decisions• Width and Depth of Assortment• Quality of Products• Product Differentiation Strategies
Product Assortment Decisions• Width and Depth of Assortment• Quality of Products• Product Differentiation Strategies
Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From
Another.
Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From
Another.
Store’s Atmosphere• Physical Layout• “Feel” That Suits the Target Market and Moves Customers to Buy
Store’s Atmosphere• Physical Layout• “Feel” That Suits the Target Market and Moves Customers to Buy
Price Decisions
Target MarketProduct & Services
AssortmentCompetition
Price Decisions
Target MarketProduct & Services
AssortmentCompetition
Promotion Decisions
Using Advertising, Personal Selling, Sales Promotion and
Public Relations to Reach Customers.
Promotion Decisions
Using Advertising, Personal Selling, Sales Promotion and
Public Relations to Reach Customers.
Place Decisions
Shopping Centers, Central Business
Districts, Power Centers, or Outlet Malls. Location!
Place Decisions
Shopping Centers, Central Business
Districts, Power Centers, or Outlet Malls. Location!
New Retail Forms and Shortening Retail Lifecycles
New Retail Forms and Shortening Retail Lifecycles
The Future of Retailing
Growth of Nonstore RetailingGrowth of Nonstore Retailing
Retailer Convergence Retailer Convergence
Rise of MegaretailersRise of Megaretailers
Growing Importance of Retail Technology
Growing Importance of Retail Technology
Global Expansion of Major RetailersGlobal Expansion of Major Retailers
Retail Stores as “Communities” Retail Stores as “Communities”
What is What is Wholesaling?Wholesaling?
• All the activities involved in selling goods and services to those buying for resale or business use.
• Wholesaler - those firms engaged primarily in wholesaling activity.
Why are Wholesalers Why are Wholesalers Used?Used?
WholesalerFunctions
ManagementServices & Advice
ManagementServices & Advice
Selling andPromoting
Selling andPromoting
MarketInformation
MarketInformation
Buying andAssortment Building
Buying andAssortment Building
Risk BearingRisk Bearing Bulk BreakingBulk Breaking
TransportingTransporting
FinancingFinancing WarehousingWarehousing
Wholesalers are Often Better at Performing One or More of the Following Channel Functions:
Types of Wholesalers
Merchant Wholesaler
Independently Owned Business that Takes
Title to the Merchandise
it Handles.
Merchant Wholesaler
Independently Owned Business that Takes
Title to the Merchandise
it Handles.
Brokers/ AgentsThey Don’t Take Title to
the Goods, and TheyPerform Only a Few
Functions.
Brokers/ AgentsThey Don’t Take Title to
the Goods, and TheyPerform Only a Few
Functions.
Manufacturers’Sales Branches
and Offices
Wholesaling by Sellersor Buyers Themselves Rather Than Through
IndependentWholesalers.
Manufacturers’Sales Branches
and Offices
Wholesaling by Sellersor Buyers Themselves Rather Than Through
IndependentWholesalers.
Wholesaler Marketing Decisions
Wholesaler MarketingMix
Wholesaler MarketingMix
Wholesaler StrategyWholesaler Strategy
Target Market
Retail Store Positioning
Product and Service
Assortment
Prices
Promotion
Place (Location)
Trends in WholesalingWholesaling Developments to Consider
Must Learn to Compete Effectively Over Wider and More Diverse Areas
Must Learn to Compete Effectively Over Wider and More Diverse Areas
Increasing Consolidations Will Reduce Number of Wholesalers
Increasing Consolidations Will Reduce Number of Wholesalers
Surviving Wholesalers Will Grow LargerThrough Acquisitions and Mergers
Surviving Wholesalers Will Grow LargerThrough Acquisitions and Mergers
Vertical Integration Will Remain StrongVertical Integration Will Remain Strong
Global Expansion Global Expansion
OrganizationsOrganizations
A group of one or more people who work together to achieve group goals.
• Profit and Non Profit
Pepsi & Co. P.I.A. NUML, Prisons, Hospitals
• Manufacturing and Services
General Motors, Pakistan Post, PTCL
• Public and Private
Parks, Museums Ahmad Fine, TIENS
TypesTypes
Places Places
Cities, states, regions, and nations compete to attract tourists, factories, company. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.
PersonPersonss
Persons are the people who effect the organization.
CEO, Managers, Customers
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