Presentation for Retail General Overview.ppt

Overview of Retail
Retail Institutions by Ownership

1. Chapter 4

2. •To Show Retail Classifications
•To Study Retail Ownership Type
•To Explore Influences in the Channel of
Distribution

3. II.
Store-Based
Retail Strategy
Mix
III.
Service vs.
Goods Retail
Strategy Mix
IV.
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
I.
Ownership

4. I.
Ownership
•Independent
•Chain
•Franchise
•Lease Department
•Vertical Marketing System
•Consumer Cooperative

5. •Flexibility
•Investment Costs Down
•Specialists
•Strong Control
•Image
•Consistency
•Independence
•Entrepreneurial Drive

6. •Lack of Power
•No Economies of Scale
•Labor Intensive
•Limited Access to Advertising
•Over-dependence on Owner
•Limited Resources for Long-run Planning

7. •Bargaining Power
•Cost Efficiencies
•Operating Efficiencies
•Technical Abilities
•Advertising Availability
•Defined Management Philosophies

8. •Time and Resources Spent on Long-run Planning
•Limited Flexibility
•Investments High
•Managerial Control Difficult
•Limited Independence for Personnel

9. •Product/Trademark
•Business Format

10. Manufacturer-Retailer
Service Sponsor-Retailer
Wholesaler-Retailer
Cooperative
Voluntary

11. •Small Capital Investment
•Brand Awareness
•Operation Procedures and Management
Skills
•Cooperative Marketing
•Exclusive Selling Rights
•Purchasing Costs

12. •Oversaturation
•Franchisor Overselling
•Contract Provisions
•Cancellation Clauses
•Short Duration
•Gross Sales Based Royalties

13. •National or Global Presence
•Ownership Qualifications Set
•Money Obtained on
Delivery
•Stringent Rules for Franchisees
•Franchisee Work Incentive
•Royalties Continue

14. •Damaged Reputation
•Loss of Customer Loyalty
•Intra-franchise Competition
•Reduced Resale Value
•Injured Profitability
•Franchisee Desire for Independence

15. •Fills Merchandise and Expertise Gaps
•Enlarged Market
•Reduces Store Costs
•Lessee Assumes Administration Rol
•Percent of Revenues

16. •Conflicts in Operating Procedures
•Damaged Image
•Customer Blame

17. •Well Know Store
•Reduced Costs
•Economies of Scale

18. •Inflexibility in Hours
•Product Line Restrictions
•Raised Rent
•Sales Expectations Not Met

19. FOOD-ORIENTED RETAILERS
•Convenience Store
•Conventional Supermarket
•Food-Based Superstore
•Combined Store
•Box (limited-line) Store
•Warehouse Store
II.
Store-Based
Retail Strategy
Mix

20. GENERAL MERCHANDISE RETAILERS
•Specialty Store
•Variety Store
•Traditional Department Store
•Full-Line Discount Store
•Off-Price Chain
•Factory Outlet
•Membership Club
•Flea Market
II.
Store-Based
Retail Strategy
Mix

21. III.
Service vs.
Goods Retail
Strategy Mix
•Rented Goods
•Owned Goods
•Nongoods

22. •Direct Marketing
•Direct Selling
•Vending Machine
•World Wide Web
•Other Emerging
Retail Formats
IV.
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing

23. Manufacturer
Independent Manufacturer
Ownership
Wholesaler
Independent Wholesaler
Ownership
Retailer
Independent Retailer
Ownership

24. Manufacturer
Wholesaler
Retailer
Two Channel Members
Own All Facilities and
Perform All Functions

25. Manufacturer
Wholesaler
Retailer
All Production and Distribution
Functions are Performed By
One Channel Member

26. •Owned by Consumers
•Most Popular in Grocery Retailing

27. •Ways Retail Institutes Can Be Classified
•Retail Ownership Types and Characteristics
of Each
•Exertion of Influence in the Channel of
Distribution
•By Manufacturers
•By Wholesalers
•By Retailers

28. Questions?
Questions?
Questions?