lecture 4 retail institution classification
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De La Salle – College of Saint Benilde
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Lecture 04: Retail Institution Classifications
PRESENTED BY:
Ian Agoncillo Pacaña
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Agenda
• Classification Method for Retail Institutions• Ownership• Store-based Retail Strategy Mix• Nonstore-based Retail Strategy Mix
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Classification Method for Retail Institutions
Classification Method for Retail Institutions
By Ownership By Store-based retail strategy mix
By Nonstore-based retail strategy mix
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A. Classification by Ownership
1. Independent Retailers2. Chain Retailers3. Franchisors4. Leased Departments
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A. Classification by Ownership
1. Independent Retailers- Very targeted customer base- Capitalize on word-of-mouthEx: Sari-sari stores
2. Chain Retailers- Multiple outlets under common ownership Ex: Body Shop, Bench
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A. Classification by Ownership
3. Franchising- Has a Franchisor (manufacturer, wholesaler,
service owner)-Franchisee relationship- Franchisee typically pays initial fee and monthly
percentage of gross sales in exchange for the rights to sell.
Ex: McDonald’s, Caltex
4. Leased Departments- Space is rented out to an outside party- Also called “concessions”Ex: Department Stores
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Activity: Given the chance, would you rather be….
• An Independent Retailer
• A Franchisor
• Leased Department
• Chain?
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B. Classification by Store-based retail strategy mix
1. Convenience Store2. Conventional
Supermarket3. Combination Store4. Specialty Store5. Traditional
Department Store
6. Full-line Discount Store
7. Factory Outlet
8. Membership Club
9. Flea Market
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Retailer Strategy Mix
• A strategy mix is the firm’s particular combination of:store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods
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B. Classification by Store-based retail strategy mix
1. Convenience Store• Typically well located• Open for long hours• Carries moderate number of items
2. Conventional Supermarket• Self-service food store with departmentalized
grocery, meat and other related products
3. Combination Store• Unites supermarket and general merchandise in
one facility
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B. Classification by Store-based retail strategy mix
4. Specialty Store• Sells one line of goods or service
5. Traditional Department Store• Large retail unit• Extensive assortment of goods and services
6. Full-line Discount Store• Type of department store with high volume but
low cost selling
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B. Classification by Store-based retail strategy mix
7. Factory Outlet• Manufacturer owned store selling discounted
merchandise
8. Membership Club• Buyers should be members
9. Flea Market• Many retail vendors sell a range of products• Street selling where buyers can haggle for prices
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1. Direct Marketing2. Direct Selling3. Vending Machine4. World-Wide Web5. Other Emerging Retail Formats
C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional Retailing
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1. Direct Marketing• Customers are exposed to non-personal medium• Examples are direct mail, TV, radio, magazines,
newspapers, or SMS
2. Direct Selling• Personal contact with customers in their homes and
other non-store locations
3. Vending Machine• Cash- or card-operated retailing format that
dispenses goods or services
C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional Retailing
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4. World-Wide Web• Online, interactive retailing• E-commerce, E-procurement, E-billing…..
5. Other Emerging Retail Formats• Video kiosks – freestanding, interactive computer
terminals that display products and related information on a video screen.
• Airport retailing – duty-free shopping centers.
C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional Retailing
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Activity
• How can you non-traditionally sell the following:– Fastfood– Perfume– Photocopying services– School supplies– Baby products
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Question and Answer
Q & A
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For next meeting…
Prepare a 10-min presentation (use your groupings) that will analyze your assigned retailer using the following dimensions:– Brief Company Profile– Type of Ownership– Store-based Classification– Nonstore-Based classification (if any)– Strategy Mix
store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods
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References
• Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person)• Retail Forward, Inc., “Twenty Trends for 2010: Retailing in an Age of Uncertainty”