Module-2-Retail-Environment-Analysis-RETAMAN.pdf

RETAILING STORES

1. MODULE 2:
RETAIL ENVIRONMENT
ANALYSIS

2. Learning Outcomes:
•A classification method for retail
institutions
•Classification by ownership
•Independent Retailers
•Chain Retailers
•Franchising
•Basic forms of franchising
•Retail strategy mix
•Retailing Mix
•Choosing the retail mix
•The wheel of retailing

3. Learning Outcomes:
•Retail life cycle
•Store-based retail strategy
mixes
•Convenience Store
•Conventional Supermarket
•Box Store (Limited-Line)
•Specialty Store
•Traditional Department Store
•Full Line Discount
•Variety Store
•Factory Outlet

4. Learning Outcomes:
•Flea Market
•NonstoreRetailing
•Direct Marketing
•Direct Mail
•Direct Selling
•Vending Machines
•Non-Traditional Retailing
•Features of Airport Retailing
•Video Kiosks
•Web-Based Store
•Five stages of developing a retail web
presence

5. Why evaluate different types of retail institutions?

6. A CLASSIFICATION METHOD FOR RETAIL INSTITUTIONS
(I)
Ownership
(II)
Store-Based
Retail Strategy
Mix
(III)
Nonstore-Based
Retail Strategy
Mix

7. CLASSIFICATION BY OWNERSHIP
THE STATE OR FACT OF OWNING SOMETHING
IndependentRetailers-one store
ownership
Chain Stores-many stores but only
one owner
Franchises-many owners of many
stores

8. INDEPENDENT RETAILERS
An Independent retailer owns
one retail unit
•Small stores with a single
location often owned by an
individual, a family or a two-
person partnership.

9. CHAIN
RETAILERS
Operates multipleoutlets
undercommonownership
areretailoutletsinmultiple
locationsthatsharea
brand and central
management

10. FRANCHISING
•A form of chains
•refers to the method of
practicing and using another's
perfected business concept.

11. BASIC FORMS OF FRANCHISING
Product and
Trade Name Franchising
Business
Format Franchising
Dealeragreestosellcertainproducts
providedbyamanufacturerbutcan
useanysalestacticshechooses.
Ex-MichelinTires,Avon
Dealermustsellthefranchiser’s
productintheexactwaythe
franchiserprescribes.
Ex–McDonalds,Wendy's

12. RETAIL STRATEGY
MIX
refers to the various features of retail strategy planning.
A strategy mix is the firm’s particular combination of:
•storelocation
•operatingprocedures
•goods/servicesoffered
•pricingtactics
•storeatmosphere
•customerservices
•promotionalmethods

13. RETAILING MIX
•includes the activities related to managing the store
and the merchandise in the store, which includes
retail pricing, store location, retail communication,
and merchandise.

14. CHOOSING THE RETAIL MIX
Target
Marke
t

15. THE WHEEL OF RETAILING
•A process observed in retail
marketing when what is
originally a discount store
improves its services and
products in order to boost prices
once it has become established

16. RETAIL LIFE CYCLE
•istheprocessofgrowthanddeclinethatretail
outlets,likeproducts,experience,whichconsistsof
theearlygrowth,accelerateddevelopment,
maturity,anddeclinestages.

17. RETAIL LIFE CYCLE
Retailinstitutionspassthroughidentifiablelifestages
•Introduction: new retail institution is established or a
new concept is introduced to the market.
•Growth:retail institution experiences an increase in
sales, customer base, and market share.
•Maturity: marked by stable sales and market saturation
•Decline: retail institution experiences a decrease in sales
and market relevance.

18. STORE-BASED RETAIL STRATEGY
MIXES
Food-Oriented
•Conveniencestore
•Conventionalsupermarket
•Food-basedsuperstore
•Combinationstore
•Box(limited-line)store
•Warehousestore
GeneralMerchandise
•Specialtystore
•Traditionaldepartment
•Full-linediscountstore
•Varietystore
•Off-pricechain
•Factoryoutlet
•Membershipclub
•Fleamarket

19. CONVENIENCE
STORE
•isusuallyafood-orientedretailerthatiswelllocated,isopenlong
hours,andcarriesamoderatenumberofitems.
Example:7Eleven,MiniStop,AlfaMart,FamilyMart

20. CONVENTIONAL
SUPERMARKET
(SUPERMARKET)
•is a departmentalized food store
with a wide range of food and
related products; sales of general
merchandise
•A self-service food store with
grocery, meat and produce
departments.

21. BOX STORE (LIMITED -LINE)
STORE
•is a food-based discounter that
focuses on a small selection of items,
moderate hours of operation
(compared to other supermarkets),
few services, The box stores, and
limited manufacturer brands.
•Limited line stores are stores that
offer a single line of related products
rather than a wide variety.

22. SPECIALTY
STORE
•it includes chain retail stores that
sell a specific brand of clothing or
clothing that is manufactured
specifically for that store.

23. TRADITIONAL DEPARTMENT STORE
•is a large retail unit with an
extensive assortment (width and
depth) of goods and services
that is organized into separate
departments for purposes of
buying, promotion, customer
service, and control.
•Ex. Rustan’sDepartment Store

24. FULL-LINE DISCOUNT STORE
•is a retail store which sells
products at prices that are lower
than the typical market value. A
"full-line discount store"or
"mass merchandiser" may offer
a wide assortment of goods with
a focus on price rather than
service, display, or wide choice
Ex. Puregold

25. VARIETY
STORE
•is a retail storethat sells a wide
range of inexpensive household
goods.
•Ex. Variety Store, Newstar

26. FACTORY OUTLET
•is a shop where a factory sells
damaged or out-of-date goods
directly to customers at reduced
prices.
•Ex. Factory Outlet, Adidas Outlet Store

27. FLEA
MARKET
•is an outdoor market which sells
cheap used goods.
•Ex. DivisoriaMarket

28. NONSTORE RETAILING
•is the selling of goods and services outside the
confines of a retail facility

29. •Is a form of retailing in which a customer is first exposed goods or
services through a non-personal medium such a direct mail,
newspaper, broadcast, or television, and then orders are placed by mail,
phone, or computer
Other leading countries include
•Japan
•Germany
•Great Britain
•France
•Italy
DIRECT MARKETING

30. •A marketing effort that uses a mail service to
deliver a promotional printed piece to your
target audience
•Can narrowly target a market, achieve good
coverage, send messages quickly, and
personalize mailing pieces.
•High per-reader cost, requires good quality,
and considered junk mail by some
consumers.
DIRECT MAIL

31. •Manufacturers sell directly to consumers.
•Facetofacepresentation,demonstration,
andsaleofproductsorservices,usuallyat
thehomeorofficeofaprospectbythe
independentdirectsalesrepresentatives.
•EmployedbyfirmssuchasAvon,MaryKay,
andTupperware,directsellingdiffersfrom
networkmarketinginthatitofferslittleor
noincentivesforrecruitingeverincreasing
numberofsalesrepresentatives.
DIRECT SELLING

32. •areacash-orcard-operatedretailingformat
thatsellsgoodsandservices.
•Eliminatestheuseofsalespersonneland
allows24-hoursales.
•Machinesplacedwhereverconvenientfor
consumers.
•95percentofthe$50billioninannualU.S.
vendingmachinesalesinvolvehot/cold
beveragesandfooditems.
VENDING MACHINES

33. •Nontraditionalretailingalso
includesformatsthatdonotfit
intothestoreandnonstore-
basedcategories:
•Videokiosks
•Airportretailing
NONTRADITIONAL RETAILING

34. •Large group ofprospective
shoppers
•Captiveaudienceattheairport
•Strongsalespersquarefootof
retailspace
•Strongsalesofgiftandtravelitems
•Difficultyinreplenishment
•Longeroperatinghours
•Duty-freeshoppingpossible
FEATURES OF AIRPORT RETAILING

35. •Free standing interactive
computer terminal for
purchasing (purchase may occur
onsite or offsite)
•Though actual sales may be less
from kiosks, they influence sales
by providing product
information
•Used for greeting cards, movie
tickets, book sales
VIDEO
KIOSKS

36. •Internet
Is a global electronic superhighway of computer networks that use a
protocol and that are linked by telecommunications lines and satellites.
•World Wide Web (www)
is one way of accessing information on the internet, whereby people
work with easy-to-use web address (sites) and pages.
WEB-BASED STORE

37. FIVE STAGES OF DEVELOPING A RETAIL WEB PRESENCE
1. Brochure Web
Site
2. Commerce Web
Site
3. Integrated Web
Site
4. The ‘Webified’
Store
5. Site Integrated with Manufacturer
Systems

38. THANK YOU
FOR
LISTENING