retail formats 2
TRANSCRIPT
RETAIL FORMATS
“This is the general nature of the retail mix in terms of range of products and services, pricing
policy, promotional programmes, operating style or store design and visual merchandising.”
Classification
1. Form of Ownership
Independent Chain
Franchising Co-operative
Independent Retail…
• Generally operates one outlet • 98% of all the retail businesses in India, are
managed and run by independents• Requires low investment and little technical
knowledge.• Fail due to poor management skills and
inadequate resources. • Eg: Furniture stores, bookshops, LPG Gas
Agencies, neighbourhood stores etc.
Chain Retail…
• Common ownership of multiple units.• The purchasing and decision making are
centralized.• They can maintain their prices, thus increasing
their margins, or they can cut prices and attract greater sales volume.
• Examples: Shoppers stop; Café-Coffee day…
Franchising…
• A contractual arrangement between a “franchiser” and a “franchisee”.
• To conduct a certain form of business under an established name and according to a specific set of rules.
• Classic examples of franchising are; McDonalds, Pizza Hut
Co-operatives…
• A group of independent retailers, that have combined their financial resources and their expertise in order to effectively control their wholesaling needs.
• Individual retailers retain their independence, but agree on broad common policies.
• Amul is a typical example.
2. Store Strategy Mix
Convenience Store Super markets
Department Stores Speciality Store Hyper Markets
Convenience Store…
• A small store that stocks a range of everyday items.
• Differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.
Supermarket…
• A large form of the traditional grocery store• A self-service shop
Department Stores…
• A retail establishment with a building open to the public which offers a wide range of consumer goods such as clothing, housewares, furniture and appliances.
• Eg: Pantaloon, Spencers etc.
Speciality Store
• Concentrates on the sale of a single line of products or services
• Eg: Tanishq for jewellery McDonalds, Pizza Hut for food services
Hyper Markets
• A large superstore, combining a supermarket and departmental store, offering full lines of grocery and general merchandise, all under one roof.
3. Non Store Retailing
Vending MachinesIn Home Retailing
Telephone RetailingCatalog Retailing
Electronic Retailing
Vending Machines…
• Products are sold directly to customers/buyers from machines.
• Dispense products which enable customers to buy after closing hours.
In Home Retailing…
• Door-Door selling.• Gives the sales person an opportunity to
demonstrate products in a very personal manner.
• Examples: Eureka Forbes vaccum cleaners and water
filters.
Telephone Retailing…
• Contact between the prospect and the retailer over the phone
Examples: A large number of mobile phone service
providers use this method.Private insurance companies
Credit companies …
Catalog Retailing…
• Retailers who mail catalogues to their customers and maintain showrooms where samples of the products for sale are displayed; orders are filled from back-room warehouses.
• Advantages: Lower operating costs
lower rents smaller sales staff
absence of shop lifting…
Electronic Retailing…
• Retailers communicate with customers and offer products and services for sale, over the internet.
• Examples Amazon.com
E-bay ...
Thank you