Escolar Documentos
Profissional Documentos
Cultura Documentos
business.
Classification of Retail Institutions
a) Based on Ownership
b) Store-based retail strategy mix
c) Non store-based retail strategy mix and Non-traditional
retailing
Ownership
Ownership
Independent
Chain
Franchise
Leased department
Vertical marketing system
Consumer cooperative
Store-based
Store-based retail
retail
strategy
strategy mix
mix
Non
Non store-based
store-based retail
retail
strategy
strategy mix
mix and
and NonNontraditional
traditional retailing
retailing
General Merchandise
Retailer:
Specialty store, Category
Specialists, Department
store, Discount stores,
Off-price chain, Factory
Outlet, Drug Stores
Direct Marketing
Direct Selling
Vending Machine
World Wide Web
Advantages:
Flexibility of choosing the retail location.
Devising a strategy becomes easier.
Investment costs are low.
They are able to sustain consistency in their work.
Better customer relationship management.
Disadvantages
In bargaining with distributors, they do not posses much
power because they buy in small quantities.
Cannot gain economies of scale in buying and maintaining
inventory because they have financial constraints.
Limited advertisements.
Unequal distribution of work.
Limited time given to planning because of overinvolvement of owner into daily operations.
Advantages
Disadvantages
Product/Trademark franchising:
Personal Integrity
Entrepreneurial
Spirit
Ability to motivate
and train
Ability to manage
finances
Financial
resources
Ideal
Franchisee
Willingness to
complete training
Willingness to
devote time
Benefits
provides one-stop
shopping to
customers
lessees handle
management
reduces store
costs
provides a stream
of revenue
Potential Pitfalls
lessees may
negate store image
procedures may
conflict with
department store
problems may be
blamed on
department store
rather than lessee
Inflexibility in Hours
Product Line Restrictions
Raised Rent
Sales Expectations Not Met
Owned by Consumers
Most Popular in Grocery
Retailing
Subway