mass retail ppt slide

Mass RetailersYour Demand is our Command

1Grop 7

Members

DEEPNA VAZIRANI 011176

GANESH SAWANT 011178

ROHAN NAIK 011179

KALYAN MUKHOPADHYAY 011183

PRAMOD KUMBHAR 011184

2 Group 7

Introduction of retailing

The word ‘retail’ is derived from the French word retailer, meaning ‘to cut a piece off’ or ‘to break bulk’.

Retailing is defined as all the activities involved in selling goods and service to final consumers for their personal or non business use.

Retailing today is at a fascinating, with many challenges.

Retailing may be viewed from multiple perspectives.

Rohan NaikMBA CORE 0111793

Channel of distribution

Manufacturer Wholesaler Retailer Final consumer

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The Need for Distribution Channels

Some questions will be asked such as

Why are all these layers needed in distribution?

Why can’t a producer simply sell to a retailer, who sells to a consumer?

many producers are either too small or too large to handle all the necessary functions themselves to get their products to market.

Ex Leather manufacturer handbag


TYPES OF CHANNELS

Direct channel

Retailer channel

Wholesaler channel

Agent or Broker channel

Dual channel or Multiple channel


MASS RETAILERS

Mass Retailers can be defined as company that sells affordably priced products that appeal to a wide variety of consumers.

Mass market retailers are not necessarily known for selling durable, high-quality merchandise or for having exceptional customer service, but they do meet consumers' wants and needs, at reasonable prices.

Ex . Supermarket, drugstore, mass merchandise and warehouse chains, are all considered mass market retailers.


Retailers v/s mass retailers

• Purchases are huge & sales are also sales them in small quantity.

• Sales are made with reasonable profits .

• Target for Average / Low income consumers.

• Product are mostly sold on Retail Shops.

• Purchases large quantities & sales in big quantity.

• It sells large variety of products at reasonable price.

• Products tend to be out of reach, financially, for the average consumer.

• Product are bought & sold through Shop outlet / E-Media / Malls.

8 Rohan NaikMBA CORE 011179 & Pramod

Types of mass retail

9 Pramod MBA CORE 011184

Types of retailers

Department stores :

very large stores offering a huge assortment of "soft" and "hard goods”

Discount stores :

they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices.

Warehouse stores :

warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves

Variety stores :

these offer extremely low-cost goods, with limited selection

Demographic :

retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).


Mom-And-Pop :

is a retail outlet that is owned and operated by individuals

Specialty stores :

A typical speciality store gives attention to a particular category and provides high level of service to the customers

General store :

a rural store that supplies the main needs for the local community

Convenience stores :

This store is ideal for emergency and immediate purchases.

Hypermarkets :

provides variety and huge volumes of exclusive merchandise at low margins.


Supermarkets :

is a self service store consisting mainly of grocery and limited products on non food items.

Malls :

They endow with products, food and entertainment under a roof.

Category killers :

By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers

E-tailers :

The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep

Vending Machines :

This is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products.


Mass Retailing Business Model Buy in large volume and sell at low prices

Cost advantage is then transformed into lower consumer prices, driving still greater volumes

13 Kalyan MBA CORE 011183

Need for Mass Retailer

Mass retailers target a broad, relatively undifferentiated customer base, with the suburban middle-class making up the biggest group

Provision for weekly shopping under one roof, in a wide assortment of products

Amenities such as parking, houses refreshment stands, in some cases home delivery.


Mass Retailer Value


Retail Product Life Cycle


FUNCTIONS OF MASS RETAILERS

Reasonable Discount The good purchased is in bulk so they provide a agreeable discounts to the customers

Bulk Transactions The purchases & Sales are in bulk

Brands & Standards The Products of Mass Retailers have a good brand as well as standard.

Service Basically Mass retailers place y emphasis on customer service.

Operations and organization

Attraction of Mass Retailers includes Brand Awareness, Extra Sales & Large order which are likely to generate. place y emphasis on customer service.

Variety Mass retailers provide wide variety of products to customers at different prices

Manufacturing Sometime Manufacturer struggles to fulfill huge demands of Mass Retailers.

17 GANESH SAWANT MBA CORE 011178

FUNCTIONS OF MASS RETAILERS

Bargaing with suppliers

Mass retailers basically has good bargainig powers due to bulk purchase

Qualified staff Mass retailers basically appointments well trained staff with good apperance


Functions of MASS RETAILERS

Reasonable Discounts - The good purchased is in bulk so they provide a agreeable discounts to the customers. As well as the Mass retailers are provided by a good amount of discounts by suppliers.

Example :

Nike selling sport accessories like shoes, jerseys etc. on a discount. This discount will not a able to find in other Retail stores except Nike outlet.

Recent Discount Offered for Nike Shoes.



Bulk Transactions – The Purchases & Sales are in point attraction of bulk. The Mass Retailers try to sell their products in bulk providing a reasonable amount of discounts to customers.

Example : Big Bazar offering good discount on bulk purchases. This aim the sales to the way for bulk sales.

Biz Bazar :

If you buy set of 6 towel it will prices you – Rs.399

While 1 towel costs – Rs.100 . This shows the Bulk

Transactions factor & impacts on prices as well as

Functioning of Big Bazar.


Function of mass retailing

o Brand and Standard – The attraction of mass retailers is on brand awareness and standard products. This help to maintain a goodwill and build up level of service to the customers.

Example : Mass Retailers using E-Media such as Online shopping has to only support the branded products, So that people can trust & purchase from E-Retailers.

Popular sites like e-bay.com using the name of various brands to

Sell their products.


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Service – Most Important functions applied for Mass Retailers is to provide quality service to consumers making difference between them & ordinary retailers.

Example : Adidas products have a warranty period of 1 year to 2 year + Money back offers. This kind of offers can’t be executed by normal retailers. This type of service is expected by Mass Retailers.

Operations and organization - The attraction of a mass retailer’s account is not only extra sales and brand awareness, but the operational economies of scale that large orders are likely to generate.

Example : Many suppliers find they are unable to cope with the additional demands on their manufacturing, logistics, sales, and service departments.


Function of mass retailers

o Variety – mass retailers provides wide variety of product on different prices to satisfy the customers.

examples – Big bazaar providing a large variety of products to their different customers



Bargaining with suppliers - Mass retailers often receive large discounts because they purchase in volume.They also has the right to claim about poor services or merchandise.

Manufacturing the cost – Mass retailers if demands in change in bar codes, design a particular packaging or a new colour suppliers has to follow the mass retailers on the cost of reducing his profits



oQualified staff - Mass retailers nowadays appoints well qualified staff with good communication skills, attention to detail, a lot of patience, sustained energy in performing the job and most importantly, willing to work long hours, even on weekends and holidays. The retail market doesn't sleep... quite challenging but also fulfilling.

For examples – Hyper city and big bazaar gives opportunity to well qualified persons and various training programs on upselling, cross selling, objection handling, counter sales etiquettes etc...


Advertisements done by Mass Retailers

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Opportunities


Legal System

Challenges for Mass Retailers

Indian Culture

Manufacturing Piracy and Counterfeiting

Legal SystemSupply Chain Bottlenecks Customer Preferences

Availabilty of talent

High Cost of Real EstateManufactures Backclash

28

GANESH SAWANT MBA CORE 011178

admin

“India will go from its position as the 12th largest consumer market today to become the world’s fifth-largest consumer market by 2025.” – McKinsey MGI

admin

India’s middle class will swell by over ten times from its current size of 50 million to 583 million.” – McKinsey MGI

admin

Nearly one-fifth of the world's population lives in India and one third of them are less than 15 years old.” – India Economic Summit

Amway –Case Study

The role of stakeholders

Corporate Social Responsibility

Creating a corporate responsibility strategy social

Meeting global responsibilities by caring for communities

Meeting customers' needs through the Internet29

Deepna MBA CORE 011176

Amway Case Study

Combining an offline and online business Developing competitive marketing strategies Focusing a brand product range Maintaining The Competitiveness Of A Global

Brand Successful products - successful solutions Using communications to develop business

opportunities Reaching customers through direct selling


Conclusion


33 Group 7

mass retail ppt slide

Retail

mass retailers mass

rohan naikmba core

mass market retailers

large stores

mass merchandise

highend retailers

types of mass retail

pramod mba core