Managing

Retailing Wholesaling and Logistics

What major types of marketing intermediaries occupy

this sector ?

SHUBHAM VERMA ,

IIT GUWAHATI

What is retailing ?

Activities of selling goods or services directly to final

consumers for personal and non business use .

Who are retailers ?

Any business enterprise whose sales mainly comes from

retailing .

Types of retailers - Store retailers

Non-store retailers

Corporate retailing and franchising

Types of Store Retailers

Speciality store – Narrow product

line .

Departmental Store – Several product

lines

Supermarket – Large , low cost , low

margin , high volume , self service

stores.

Drug store – Prescription and

Pharmacies , health and beauty aids

Discount store – Low price ; Low margin ;

High volume stores

Extreme value store – More restricted

merchandise mix ; lower prices

Off price retailer – Leftover goods , overruns ,

irregular , merchandise sold at less than retail .

Factory outlets .

SConvenience store – Small store in residential

area , 24/7 , limited line of high convenience

product

Superstore – Huge selling space ; plus

services ; category killer

Catalog Showrooms – Broad selection of high

markup ; fast moving ; branded goods sold at

discount

Types of Non store retailing

• Direct Selling

• Direct marketing

• Automatic vending

• Buying service

D

I

R

E

C

T

S

E

L

L

I

N

G

A sales person goes to home of a host who has invited friends ;

Sales person demonstrates the product and takes the order .

DIRECT

MARKETINGIncludes telemarketing ; television direct response ; and

electronic shopping .

US online sales are estimated to be $ 210 billion with

travel being the biggest industry ($80 billion) in 2009

A

U

T

O

M

A

T

I

C

V

E

N

D

I

N

G

Vending machines are found in

factories , offices , large retail

stores, and hotels .

Japan has maximum vending

machines per person –Coca Cola

has 1 million vending machines in

Japan with with sales of $50

billion- twice than US

In India , Mother Dairy has used

bulk vending machines since

1970s

BUYING SERVICEB

U

Y

I

N

G

S

E

R

V

I

C

E

Storeless retailer

servicing a specific

clientele

- large organisations –

who are entitled to buy

from a list of from list of

retailers who have agreed

to give discounts

Corporate Retailing – Independently owned organizations

which work under a brand name and achieve greater

economies , greater purchasing power , wide and better

trained employees that independent stores can usually get

.

Eg – Raymonds, Euro kids , VLCC , NIIT

Corporate retail stores – Two or more

outlets owned and controlled ,

merchandising and selling .

Voluntary chain – Wholesaler sponsored

group of independent retailers engaged in

bulk buying

Retailer cooperative – independent

retailers using central buying organization

Convenience storeFranchise organization – Contract

association with franchisor and

franchisees , popular in a number of

product and services

Merchandising conglomerate –

Corporation that combines several

diversified retailing lines and forms

under a central ownership

WHOLESALING

Activities in selling goods or services to those who buy

for resale or business use

Difference between retailer and

wholesaler

• Less promotion than retailers

• Larger transaction than retailers

• Government norms are different for both

Types of wholesalers

• Merchant wholesalers :

• Full – Service wholesalers

• Limited service wholesalers

• Brokers and Agents

• Manufacturers and retailers’ branches

• Specialized wholesalers

LOGISTICS

Managers select a set of warehouses

and transportation carriers that will

deliver the goods to final destinations in

the desired time at lowest cost

Market Logistics include :

• Order Processing

• Warehousing

• Inventory

• Transportation

"These slides were created by Shubham Verma( IIT Guwahati ) as part of an internship done under the guidance of Prof. Sameer Mathur(www.IIMInternship.com)"