Retailing of U S A MARKET BY BABASAB PATIL
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Retailing of U S A MARKET BY BABASAB PATIL

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Retailing of U S A MARKET BY BABASAB PATIL

Retailing of U S A MARKET BY BABASAB PATIL

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Retailing of U S A MARKET BY BABASAB PATIL Retailing of U S A MARKET BY BABASAB PATIL Presentation Transcript

  • 13 Retailing 11/06/13 babasabpatilfreepptmba.com 1
  • Learning Objectives 1. Discuss the importance of retailing in the economy 2. Explain the dimensions by which retailers can be classified 3. Describe the major types of retail operations 11/06/13 babasabpatilfreepptmba.com 2
  • Learning Objectives (continued) 4. Discuss nonstore retailing techniques 5. Define franchising and describe its two basic forms 6. List the major tasks involved in developing a retail marketing strategy 7. Describe new developments in retailing 11/06/13 babasabpatilfreepptmba.com 3
  • Learning Objective 1 1 1 11/06/13 Discuss the importance of retailing in the economy babasabpatilfreepptmba.com 4
  • Retailing Retailing All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. 1 11/06/13 babasabpatilfreepptmba.com 5
  • The Role of Retailing  Retailers account for 11.7 percent of U.S. employment  Retailing accounts for 13 percent of U.S. businesses  Retailers ring nearly 40 percent of the U.S. GDP  Industry is dominated by a few giant organizations, such as Wal-Mart 1 11/06/13 babasabpatilfreepptmba.com 6
  • Ten Largest Retailers 2004 rank Company # of stores 1 Wal-Mart $258.6 billion 4906 2 Home Depot $64.8 billion 1707 3 Kroger $53.7 billion 3774 4 Target $48.1 billion 1553 5 Costco $42.5 billion 420 6 Sears $41.4 billion 1970 7 Safeway $35.6 billion 1817 8 Albertson’s $35.4 billion 2305 9 Walgreen $32.5 billion 4227 10 1 Revenue Lowe’s $30.8 billion 952 babasabpatilfreepptmba.com 7
  • Learning Objective 2 2 2 11/06/13 Explain the dimensions by which retailers can be classified babasabpatilfreepptmba.com 8
  • Classification of Retail Operations Ownership Ownership Level of Service Level of Service Product Assortment Product Assortment Price Price 2 11/06/13 babasabpatilfreepptmba.com 9
  • Classification of Ownership Independent Independent Retailers Retailers Chain Stores Chain Stores Franchises Franchises 2 11/06/13 babasabpatilfreepptmba.com 10
  • Level of Service Self Service Full Service Factory outlets Discount stores Warehouse clubs 2 11/06/13 babasabpatilfreepptmba.com Exclusive stores 11
  • Types of Stores and Their Characteristics Type of Retailer Type of Retailer Service Service Level Level AssortAssortment ment Price Price Gross Gross Margin Margin Department Store Department Store Specialty Store Specialty Store Broad Broad Narrow Narrow Mod-High Mod-High Mod-High Mod-High Mod High Mod High High High Supermarket Supermarket Low Low Broad Broad Moderate Moderate Low Low Convenience Store Convenience Store Low Low Med-Narrow Mod High Med-Narrow High Mod Mod High Mod High Drugstore Drugstore Low-Mod Low-Mod Medium Medium Low Low Full-line Discounter Full-line Discounter Mod-Low Mod-Low Med-Broad Mod Low Med-Broad Mod Low Specialty Discounter Specialty Discounter Mod-Low Mod-Low Med-Broad Mod Lo-low Mod Low Med-Broad Mod Lo-low Mod Low Warehouse Clubs Warehouse Clubs Low Low Broad Broad Off-price Retailer Off-price Retailer Low Low Med-Narrow Low Med-Narrow Low Low Low Restaurant Restaurant 2 Mod Hi-High Mod Hi-High High High Low-High Low-High Med-Narrow Low-High Med-Narrow Low-High Low-High Low-High 11/06/13 babasabpatilfreepptmba.com Moderate Moderate Low-lower Low-lower Mod Low Mod Low Low Low 12
  • Gross Margin Gross Margin The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. 2 11/06/13 babasabpatilfreepptmba.com 13
  • Learning Objective 3 3 3 11/06/13 Describe the major types of retail operations babasabpatilfreepptmba.com 14
  • Major Types of Retail Operations Department Stores Department Stores Specialty Stores Specialty Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Stores Convenience Stores Discount Stores Discount Stores Restaurants Restaurants 3 11/06/13 babasabpatilfreepptmba.com 15
  • Categories of Discount Stores Full-Line Discounters Specialty Discount Stores Warehouse Clubs Off-Price Discount Retailers 3 11/06/13 babasabpatilfreepptmba.com 16
  • Mass Merchandising Mass Merchandising Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products. 3 11/06/13 babasabpatilfreepptmba.com 17
  • Supercenters and Extreme Value Retailing Supercenter Supercenter Retail store combining groceries Retail store combining groceries and general merchandise goods and general merchandise goods with a wide range of services. with a wide range of services. Extreme-value Smaller stores with a narrower Extreme-value Smaller stores with a narrower product selection emphasizing daily product selection emphasizing daily necessities at rock bottom prices. necessities at rock bottom prices. 3 11/06/13 babasabpatilfreepptmba.com 18
  • Learning Objective 4 4 4 11/06/13 Discuss nonstore retailing techniques babasabpatilfreepptmba.com 19
  • Nonstore Retailing Automatic Vending Automatic Vending Direct Retailing Direct Retailing Direct Marketing Direct Marketing Electronic Retailing Electronic Retailing 4 11/06/13 babasabpatilfreepptmba.com 20
  • Direct Retailing Door-to-Door Door-to-Door Direct Retailers Direct Retailers sell products: sell products: Office-to-Office Office-to-Office Home Sales Home Sales Parties Parties 4 11/06/13 babasabpatilfreepptmba.com 21
  • Types of Direct Marketing Direct Mail Direct Mail Catalogs & Mail Order Catalogs & Mail Order Telemarketing Telemarketing Electronic Retailing Electronic Retailing 4 11/06/13 babasabpatilfreepptmba.com 22
  • Types of Electronic Retailing Shop-at-Home Networks Shop-at-Home Networks On-Line Retailing On-Line Retailing 4 11/06/13 babasabpatilfreepptmba.com 23
  • Learning Objective 5 5 5 11/06/13 Define franchising and describe its two basic forms babasabpatilfreepptmba.com 24
  • Basic Forms of Franchising Product and Trade Name Product and Trade Name Franchising Franchising Business Format Business Format Franchising Franchising 5 11/06/13 babasabpatilfreepptmba.com 25
  • Largest U.S. Franchisers 1 McDonald’s 2 Southland (7-Eleven) 7 Tandy (Radio Shack) 3 Subway 8 Jani-King 4 Burger King 9 Taco Bell 5 KFC 5 6 Pizza Hut 10 Dairy Queen babasabpatilfreepptmba.com 26
  • Basic Forms of Franchising Product and Product and Trade Name Trade Name Franchising Franchising Business Business Format Format Franchising Franchising 5 11/06/13 Dealer agrees to sell certain Dealer agrees to sell certain products provided by a products provided by a manufacturer or wholesaler. manufacturer or wholesaler. An ongoing business relationship An ongoing business relationship between a franchiser between a franchiser and a franchisee. and a franchisee. babasabpatilfreepptmba.com 27
  • Learning Objective 6 6 6 11/06/13 List the major tasks involved in developing a retail marketing strategy babasabpatilfreepptmba.com 28
  • Retail Marketing Strategy Define & Select a Target Market Develop the “Six Ps” 6 11/06/13 babasabpatilfreepptmba.com 29
  • Defining a Target Market Demographics Demographics STEP 1: STEP 1: Segment the Market Segment the Market Geographics Geographics Psychographics Psychographics 6 11/06/13 babasabpatilfreepptmba.com 30
  • Choosing the Retailing Mix Product Product 6 11/06/13 Price Price Personnel Personnel Promotion Promotion STEP 2: STEP 2: Choose the Choose the Retailing Mix Retailing Mix Place Place Presentation Presentation babasabpatilfreepptmba.com 31
  • The Retailing Mix Product Product Personnel Personnel Promotion Promotion Target Market Presentation Presentation Place Place Price Price 6 11/06/13 babasabpatilfreepptmba.com 32
  • Product Offering Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix. 6 11/06/13 babasabpatilfreepptmba.com 33
  • Retail Promotion Strategy Advertising Advertising Public Relations Public Relations Publicity Publicity Sales Promotion Sales Promotion 6 11/06/13 babasabpatilfreepptmba.com 34
  • Factors to Consider in Site Selection Economic growth Economic growth potential potential Area competition Area competition Geography Geography 6 11/06/13 babasabpatilfreepptmba.com 35
  • Location Decisions Freestanding Store Freestanding Store Shopping Center Tenant Shopping Center Tenant Mall Tenant Mall Tenant 6 11/06/13 babasabpatilfreepptmba.com 36
  • Shopping Center and Mall Locations Advantages Disadvantages • Design attracts shoppers • Activities and anchor stores draw customers • Ample parking • Unified image 6 11/06/13 • • • • • babasabpatilfreepptmba.com Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors 37
  • Price Low Price High Price Quality Image Good Value 6 11/06/13 babasabpatilfreepptmba.com 38
  • Presentation of the Retail Store Employee type and density Employee type and density Merchandise type and density Merchandise type and density Fixture type and density Fixture type and density Sound Sound Odors Odors Visual factors Visual factors 6 11/06/13 babasabpatilfreepptmba.com 39
  • Personnel and Customer Service Trading Up Trading Up Two Common Two Common Selling Selling Techniques Techniques Suggestion Selling Suggestion Selling 6 11/06/13 babasabpatilfreepptmba.com 40
  • Customer Service for On-Line Retailers Easy-to-use Web site Easy-to-use Web site Product availability Product availability Simple returns Simple returns 6 11/06/13 babasabpatilfreepptmba.com 41
  • Learning Objective 7 7 7 11/06/13 Describe new developments in retailing babasabpatilfreepptmba.com 42
  • New Developments in Retailing Interactivity Interactivity m-Commerce m-Commerce 7 11/06/13 babasabpatilfreepptmba.com 43
  • Thank you 6 11/06/13 babasabpatilfreepptmba.com 44