Retailing and Wholesaling

Presented To: Mr. Mohsin Ali Khan

Department of Management Sciences

Presented By : Group # 6

M.B.A. 1st Mor.

Group MembersGroup Members

• Muhammad Waseem• Uzma Batool• Saba Batool• Israr Ahmad • Muhammad Waseem

Retailing and Retailing and WholesalingWholesaling Retailing

All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Retailer

A business whose sales come primarily from retailing.

Types of Types of Retailers Retailers

Amount of ServiceSelf-Service, Limited-Service and

Full-Service Retailers

Amount of ServiceSelf-Service, Limited-Service and

Full-Service Retailers

Product LineLength and Breadth of the Product

Assortment

Product LineLength and Breadth of the Product

Assortment

Relative PricesPricing Structure that is Used

by the Retailer

Relative PricesPricing Structure that is Used

by the Retailer

Retail OrganizationsIndependent, Corporate, or Contractual

Ownership Organization

Retail OrganizationsIndependent, Corporate, or Contractual

Ownership Organization

Specialty StoresSpecialty Stores

Department StoresDepartment Stores

SupermarketsSupermarkets

Convenience StoresConvenience Stores

SuperstoresSuperstores

Category KillersCategory Killers

Narrow Product Line, Deep AssortmentNarrow Product Line, Deep Assortment

Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items

Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items

Wide Variety of Food, Laundry, & Household Products

Wide Variety of Food, Laundry, & Household Products

Limited Line of High-Turnover Convenience Goods

Limited Line of High-Turnover Convenience Goods

Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services

Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services

Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line

Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line

Store Type Length and Breadth of Product Assortment

Classification ByClassification By Product LineProduct Line

Classification ofClassification of Stores By Price Stores By Price

• Discount Store

A retail institution that sells standard merchandise at low prices by accepting low margins and selling at high volume.

Classification ofClassification of Stores By Price Stores By Price

• Off-Price Retailer

A retailer that buys at less than regular wholesale prices and sells at less than retail.

Classification ofClassification of Stores By Price Stores By Price

• Factory Outlet

An off-price retailing operation that is owned and operated by a manufacturing and that normally caries the manufacturer’s surplus discounted or irregular goods.

Classification ofClassification of Stores By Price Stores By Price

• Warehouse Club

An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing at deep discount to members who pay annual membership fees.

Organizational Organizational Approach Approach

• Chain StoreTwo or more outlets that are owned and controlled in

common, have central buying and merchandising, and sell similar lines of merchandise.

• Franchise A contractual association between a manufacturer,

wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.

Retailer & Marketing DecisionRetailer & Marketing Decision

Retailer MarketingMix

Retailer MarketingMix

Retailer StrategyRetailer Strategy

•Target Market

•Retail Store Positioning

Product and Service

Assortment

Prices

Promotion

Place (Location)

Target Market & Target Market & Positioning DecisionPositioning Decision

Retailers first must define their target markets and then decide how they will position themselves in these markets. Should the store focus on upscale, midscale, or downscale shoppers? Do target shoppers want variety depth of assortment, convenience, or low prices?

Retailer’s Product Assortment and Services Decisions

Product Assortment Decisions• Width and Depth of Assortment• Quality of Products• Product Differentiation Strategies

Product Assortment Decisions• Width and Depth of Assortment• Quality of Products• Product Differentiation Strategies

Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From

Another.

Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From

Another.

Store’s Atmosphere• Physical Layout• “Feel” That Suits the Target Market and Moves Customers to Buy

Store’s Atmosphere• Physical Layout• “Feel” That Suits the Target Market and Moves Customers to Buy

Price Decisions

Target MarketProduct & Services

AssortmentCompetition

Price Decisions

Target MarketProduct & Services

AssortmentCompetition

Promotion Decisions

Using Advertising, Personal Selling, Sales Promotion and

Public Relations to Reach Customers.

Promotion Decisions

Using Advertising, Personal Selling, Sales Promotion and

Public Relations to Reach Customers.

Place Decisions

Shopping Centers, Central Business

Districts, Power Centers, or Outlet Malls. Location!

Place Decisions

Shopping Centers, Central Business

Districts, Power Centers, or Outlet Malls. Location!

New Retail Forms and Shortening Retail Lifecycles

New Retail Forms and Shortening Retail Lifecycles

The Future of Retailing

Growth of Nonstore RetailingGrowth of Nonstore Retailing

Retailer Convergence Retailer Convergence

Rise of MegaretailersRise of Megaretailers

Growing Importance of Retail Technology

Growing Importance of Retail Technology

Global Expansion of Major RetailersGlobal Expansion of Major Retailers

Retail Stores as “Communities” Retail Stores as “Communities”

What is What is Wholesaling?Wholesaling?

• All the activities involved in selling goods and services to those buying for resale or business use.

• Wholesaler - those firms engaged primarily in wholesaling activity.

Why are Wholesalers Why are Wholesalers Used?Used?

WholesalerFunctions

ManagementServices & Advice

ManagementServices & Advice

Selling andPromoting

Selling andPromoting

MarketInformation

MarketInformation

Buying andAssortment Building

Buying andAssortment Building

Risk BearingRisk Bearing Bulk BreakingBulk Breaking

TransportingTransporting

FinancingFinancing WarehousingWarehousing

Wholesalers are Often Better at Performing One or More of the Following Channel Functions:

Types of Wholesalers

Merchant Wholesaler

Independently Owned Business that Takes

Title to the Merchandise

it Handles.

Merchant Wholesaler

Independently Owned Business that Takes

Title to the Merchandise

it Handles.

Brokers/ AgentsThey Don’t Take Title to

the Goods, and TheyPerform Only a Few

Functions.

Brokers/ AgentsThey Don’t Take Title to

the Goods, and TheyPerform Only a Few

Functions.

Manufacturers’Sales Branches

and Offices

Wholesaling by Sellersor Buyers Themselves Rather Than Through

IndependentWholesalers.

Manufacturers’Sales Branches

and Offices

Wholesaling by Sellersor Buyers Themselves Rather Than Through

IndependentWholesalers.

Wholesaler Marketing Decisions

Wholesaler MarketingMix

Wholesaler MarketingMix

Wholesaler StrategyWholesaler Strategy

Target Market

Retail Store Positioning

Product and Service

Assortment

Prices

Promotion

Place (Location)

Trends in WholesalingWholesaling Developments to Consider

Must Learn to Compete Effectively Over Wider and More Diverse Areas

Must Learn to Compete Effectively Over Wider and More Diverse Areas

Increasing Consolidations Will Reduce Number of Wholesalers

Increasing Consolidations Will Reduce Number of Wholesalers

Surviving Wholesalers Will Grow LargerThrough Acquisitions and Mergers

Surviving Wholesalers Will Grow LargerThrough Acquisitions and Mergers

Vertical Integration Will Remain StrongVertical Integration Will Remain Strong

Global Expansion Global Expansion

OrganizationsOrganizations

A group of one or more people who work together to achieve group goals.

• Profit and Non Profit

Pepsi & Co. P.I.A. NUML, Prisons, Hospitals

• Manufacturing and Services

General Motors, Pakistan Post, PTCL

• Public and Private

Parks, Museums Ahmad Fine, TIENS

TypesTypes

Places Places

Cities, states, regions, and nations compete to attract tourists, factories, company. Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.

PersonPersonss

Persons are the people who effect the organization.

CEO, Managers, Customers

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