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Managing retailing, wholesaling and logistics
Successful go-to-market strategies require integrating retailers, wholesalers, and logistical organizations. Future Retail operates multiple retail formats across India serving over 10 million customers weekly through diverse store formats. Reliance Mart is a large wholesale and retail center covering 165,000 square feet that offers over 95,000 products and services catering to both businesses and consumers.
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Managing retailing, wholesaling and logistics
- 2. Successful “go-to-market” strategiesrequire integrating retailers, wholesalers, and logistical organizations. Introduction
- 3. (a) Consumer MarketingChannels (b) Industrial Marketing Channels Marketing channels
- 4. Retailing includes allthe activities involved in selling goods or services directly to final customers for their personal, nonbusiness use. A retailer is any business enterprise whose sales volume comes primarily from retailing. Retailing
- 5. Store Retailing: 8categories Specialty Store Types of Retailing Department Store Supermarket Convenience Store
- 6. Contd… Discount Store Off-PriceRetailer Superstore Catalog Showroom
- 7. 1. Self-service 2. Self-selection 3.Limited service 4. Full service Level of service 1 2 3 4
- 8. Four major categories 1.Direct Selling: One-to-one selling One-to-many Multilevel 2. Direct Marketing 3. Automatic Vending 4. Buying Service Non-store Retailing
- 9. Corporate Chain Stores VoluntaryChain Retailer Cooperative Consumer Cooperative Franchise Organization Merchandising Conglomerate Corporate Retailing
- 10. A franchising systemis a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor. What is a Franchising System?
- 11. The franchisorowns a trade or service mark and licenses it to franchisees in return for royalty payments. The franchisee pays for the right to be part of the system. The franchisor provides its franchisees with a system for doing business. Characteristics of Franchises
- 12. Target-market decision Product Assortment-&-procurement decision Services-&- store- atmosphere decision Price Decision Promotion Decision Place Decision Marketing Decisions
- 13. 1. New retailforms and combinations 2. Growth of intertype competition 3. Growth of giant retailers 4. Growing investment in technology 5. Global presence of major retailers 6. Selling an experience, not just goods 7. Competition between store-based and non-store- based retailing Trends in Retailing
- 15. Founder- KishoreBiyani (MD & CEO) Headquarters- Mumbai Products- Integrated foods and other FMCGs Services- Supermarkets, hypermarkets, discount stores, insurance, logistics, media Incorporated in 1987 (as Manz wear Pvt. Ltd)
- 16. Businesses RETAIL Pantaloons Big Bazzar Food Bazaar Central HomeTown E-zone futureBazzar.com Fbb FUTURE GENERALI LIFE INSURANCE GENERAL INSURANCE SERVICES Future Supply Chains Future Learning Future Media Future Brands T24 Future Ideas Business Technology Services PARTNERSHIP Collaboration Joint Brand Building Assistance
- 17. As India’sleading retailer, Future Retail inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. They serve customers in 95 cities across the country through over 10 million square feet of retail space. Their strategy is based on a deep understanding of Indian consumers the products they want, and making these products available in every city in every store format.
- 19. Pantaloon Retail(India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai The company operates over 12 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.
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- 21. Big Bazzarwas introduced in 2001 with its first store in Kolkata. Hypermarket chain in India Outlet- 140 outlets Tagline- Is se sasta aur accha kahin nahi Big Bazaar is not just another hypermarket; it caters to every need of a family. Where Big Bazaar scores over other stores is its value for money proposition for Indian customers.
- 22. Flagged offin April’02 Food Bazaar invites you for a shopping experience in a unique ambience. It is a chain of large supermarkets with a difference where the best of Western and Indian values have been put together to ensure your satisfaction and comfort while shopping. Presently have 173 Food Bazaar stores
- 23. Launched inMay 2011 in Mumbai. Foodhall is a premium lifestyle food destination that targets the urban Indian consumers who love to experiment with global cuisine and promises to expose customers to the next level of food retailing. Currently Foodhall is present in Mumbai, Bengaluru, New Delhi, Pune and Gurgaon.
- 24. This storedesigned for “foodies” is a one – stop shop for food lovers and offers everything under one roof, right from daily essentials, exotic flavours, secret ingredients to premium kitchen accessories. Foodhall also caters to all the dining and cooking needs of customers with an array of kitchen accessories. Contd...
- 25. HomeTown isa unique one-stop destination for complete home-making solutions, the first of its kind retail format in India. It provides consumers all that goes into building a house and everything to make it a ‘Home’, all under one roof. Has a specialized team of experts to set it all up for them at their homes.
- 26. Contd… HomeTown’s rangeof products includes Furniture Bath and Sanitary Ware Modular Kitchens Paints and Wallpaper Tiles and Wooden Flooring Carpentry and Hardware Electricals and Decor Lighting Electronics Furnishings and Accessories
- 27. Spread across31 cities and 92 stores in India Ezone operates as stand-alone stores across India in Malls, High Streets and within other group format stores like Home Town, Central, Big Bazaar and also in Pantaloons Stores Further, services such as Easy Exchange, Extended Warranty, Instant Finance, Masterclass, Data Transfer and more.
- 28. Fashion atBig Bazaar has been the face of affordable fashion destinations in India since 2008. FBB targets a youthful audience in India that wishes to stay synonymous with current trends. The brand spreads across all the metro cities, mini metros and also penetrates well in tier II cities.
- 29. Launched inMay 04 at Bangalore. Offers everything for the urban aspirational shopper to shop, eat and celebrate. Ensure the best brands in the indian market are made available to the discering indian customer. It is based on the concept of “One Stop Shop”.
- 30. All the activitiesinvolved in selling goods or services to those who buy for resale or business use. Excludes manufacturers, farmers & retailers. They are also called distributors. Pay less attention to promotion, atmosphere & location. Transactions are larger than in retailing. Wholesaling
- 31. Merchant wholesalers Full-service wholesalers Limited-service wholesalers Brokers & agents Manufacturers’ & retailers’ branches & offices Specialised Wholesalers Types of Wholesalers
- 32. Selling andpromoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling Wholesalers’ functions:
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- 34. Overview about theMart Location-Opposite Ckali, Near Swaminarayan Chowk, Dr Ambedkar Rd, shahibaugh, Dudhe Total area-Spread across 165,000 square feet of shopping area Total products catered - 95,000 ( Approx) Products and services – 1.fresh produce 2.food & grocery 3.home care products 4.apparel and accessories 5.non-food FMCG products 6.consumer durables and IT 7.automotive accessories 8.lifestyle products
- 35. Reliance marttowards providing international shopping experience Unmatched affordability for distributed customer base. Guaranteed quality and choice of products and services Location being the asset to the Mart catering to all classes and customer base. lucid transaction & efficient of payment and goods delivery. loyalty and customer retention programs USP’s of the MART
- 36. A completesolution” to the customer – AIM 10:00 a.m. to 10:00 p.m., seven days a week intensive product range and services ( catering every possible product and service requirements) Exclusive distribution network Layout
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- 38. Inventory system Order processingCustomer orderOrder transmission Order TransportationOrder Selection Customer delivery • Use of POS ( point of sale inventory management system) It’s a cross functional system. • Real time updating and RFID being used. • Reliance Trans connect being the supplier.
- 39. positives • Indialargest company • Market value US$ 35 billion • Turn over of US$ 27 billion in 2007 • World’s Largest producer of polyester • RIL has grown exponentially to diversify negatives • It has a strategy to phase out service gradually and thus customer doesn’t have that consistent loyalty. • No help and real time assistance in separate retail spaces by merchandisers • Wide range of products and services ( but less variety) • Less customer centric approach and more emphasis on “private labels” • less brands and less products and service coverage. Strengths and Weakness of the Mart
- 40. 1. No inventoryissue 2. Low prices ( comparative) 3. physical presence 4. wide coverage Strengths
- 41. 1. No customerpreference 2. Emphasis on all products and service leading to no specialization. 3. price of products are fluctuate 4. less preference to multicultural crowd Weakness
- 42. 1. More customercentric approach can be used 2. Separate sections can be induced for different customer base 3. Usage of retail space in a much better way Opportunities
- 43. 1. Better lowprice products 2. Increased competition 3. More retail competition 4. Internal competition from private players in the mall itself. Threats
- 44. Involves planning,implementing & controlling the physical flows of materials & final goods from points of origin to points of use Management of the supplies and transport required for an operation Physical Distribution starts at the factory. Managers choose a set of warehouses (stocking points) and transportation carriers that will deliver the goods to final destinations in the desired time or at the lowest total cost. Market Logistics
- 45. ILS includematerial management, material flow systems, and physical distribution, aided by Information Technology (IT). Third Party suppliers, such as FedEx Logistics Services or Ryder Integrated Logistics, often participate in designing or managing these systems. Integrated Logistics Systems
- 46. Many companiesstate their market-logistic objectives as “getting the right goods to the right places at the right time for the least cost” No system can simultaneously maximize customer service and minimise distribution cost. Each possible market-logistics system will lead to the following cost: M= T + FW + VW + S where M= total market-logistics cost of proposed system T= total freight cost of proposed system FW= total fixed warehouse cost of proposed system VW= total valuable warehouse cost of proposed system S= total cost of lost sales Market-Logistics Objectives
- 47. The firmmust make four major decisions about its market logistics : 1. Order processing: How should orders be handled? 2. Warehousing: Where should stocks be located? 3. Inventory: How much stock should be held? 4. Transportation: How should goods be shipped? Market-Logistics Decisions
- 48. Reference •PhilipKotler, and Kevin Keller. Marketing Management. 13th ed. Prentice Hall, 2008 Reference