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CHAPTER 16

MANAGING RETAILING,

WHOLESALING, AND LOGISTICS

Cherry Tatel18-Sept-2013

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CHAPTER OUTLINE

• Retailers, Wholesaler, and Logistics Market

• Marketing Trends and Decisions

• 6 key concepts to note

• Summary

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RETAILERS

Store Retailers

Self-service

Self-selection

Limited service

Full service

Non-store Retailing

Direct selling

Direct marketing

Automatic vending

Buying service

Corporate Retailing & Franchising

Corporate chain stores

Voluntary chains

Retailer and Consumer

cooperatives

Franchises

Merchandising conglomerat

es

4 services

4 categories

5 Major types

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WHOLESALERS

6 Functions:

• Selling and promoting• Buying and assortment building• Bulk breaking• Transportation• Financing• Market information

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LOGISTICS

4 Steps:

1. Decide on company’s value proposition.

2. Select best channel and network strategy.

3. Develop operational excellence

4. Implement solution

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MARKETING TRENDS

• New Retail forms and combinations

• Private labels

• Wholesaler trend – towards vertical integration

• Integrated Logistics System

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CONCEPT #1

Examine Retailers’ marketing decision

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Examine Retailers’ marketing decision in the following 11 areas:

1. Target market2. Channels3. Product assortment4. Procurement5. Prices6. Services

7. Store Atmosphere8. Store Activities9. Experiences10. Communication11. Location

EXAMPLE OF CONCEPT #1

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CONCEPT #2

Private Label as profitable source of revenue

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EXAMPLE OF CONCEPT #2

Private Label as profitable source of revenue

Success Factors:

Private labels give retailers advantages and increasing market power.

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CONCEPT #3

Continuous market pressures requires Wholesalers to adapt to changing needs.

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EXAMPLE OF CONCEPT #3

Continuous market pressures requires Wholesalers to adapt to changing needs.

New Sources of Pressure:

• New competition• Demanding customers• New technologies• More direct buying programs

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CONCEPT #4

Supply chain management leads managers to find the most efficient way to deliver value

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EXAMPLE OF CONCEPT #4

Supply chain management leads managers to find the most efficient way to deliver value

Getting the right goods, to the right places, at the right time for the least costs.

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CONCEPT #5

Market logistics are faced with 4 decisions that it has to make.

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EXAMPLE OF CONCEPT #5

Market logistics are faced with 4 decisions that it has to make.

1. How to handle order processing?2. Where to locate stocks?3. How much stock to hold?4. How should goods be shipped?

Market Logistics strategies must be derived from business rather than solely from cost considerations.

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CONCEPT #6

Majors gains in logistical efficiency comes from advancement in technology

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CONCEPT #6

Majors gains in logistical efficiency comes from advancement in technology

Developments in technology have shortened the order cycle time, reduced clerical labour, reduced errors, and provided improved control of operations.

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SUMMARY

Lesson

As the business environment evolves, the channel’s strategies and decision has to upgrade in order to survive.

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CHAPTER 16

MANAGING RETAILING, WHOLESALING, AND

LOGISTICS

Cherry Tatel 18-Sept-2013