AgendaClassification Method for Retail InstitutionsOwnershipStore-based Retail Strategy MixNonstore-based Retail Strategy Mix

Classification Method for Retail InstitutionsClassification Method for Retail InstitutionsBy OwnershipBy Store-based retail strategy mixBy Nonstore-based retail strategy mix

A. Classification by OwnershipIndependent RetailersChain RetailersFranchisorsLeased Departments

A. Classification by Ownership1. Independent RetailersVery targeted customer baseCapitalize on word-of-mouthEx: Sari-sari stores

2. Chain RetailersMultiple outlets under common ownership Ex: Body Shop, Bench

A. Classification by Ownership3. FranchisingHas a Franchisor (manufacturer, wholesaler, service owner)-Franchisee relationshipFranchisee typically pays initial fee and monthly percentage of gross sales in exchange for the rights to sell.Ex: McDonalds, Caltex

4. Leased DepartmentsSpace is rented out to an outside partyAlso called concessionsEx: Department Stores

Activity: Given the chance, would you rather be.An Independent RetailerA FranchisorLeased DepartmentChain?

B. Classification by Store-based retail strategy mixConvenience StoreConventional SupermarketCombination StoreSpecialty StoreTraditional Department Store

Full-line Discount StoreFactory OutletMembership ClubFlea Market

Retailer Strategy MixA strategy mix is the firms particular combination of:store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods

B. Classification by Store-based retail strategy mixConvenience StoreTypically well locatedOpen for long hoursCarries moderate number of itemsConventional SupermarketSelf-service food store with departmentalized grocery, meat and other related productsCombination StoreUnites supermarket and general merchandise in one facility

B. Classification by Store-based retail strategy mixSpecialty StoreSells one line of goods or serviceTraditional Department StoreLarge retail unitExtensive assortment of goods and servicesFull-line Discount StoreType of department store with high volume but low cost selling

B. Classification by Store-based retail strategy mixFactory OutletManufacturer owned store selling discounted merchandiseMembership ClubBuyers should be membersFlea MarketMany retail vendors sell a range of productsStreet selling where buyers can haggle for prices

C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional RetailingDirect MarketingDirect SellingVending MachineWorld-Wide WebOther Emerging Retail Formats

C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional RetailingDirect MarketingCustomers are exposed to non-personal mediumExamples are direct mail, TV, radio, magazines, newspapers, or SMSDirect SellingPersonal contact with customers in their homes and other non-store locationsVending MachineCash- or card-operated retailing format that dispenses goods or services

C. Classification by Nonstore-Based Retail Strategy Mix and Non-Traditional RetailingWorld-Wide WebOnline, interactive retailingE-commerce, E-procurement, E-billing..Other Emerging Retail FormatsVideo kiosks freestanding, interactive computer terminals that display products and related information on a video screen.Airport retailing duty-free shopping centers.

ActivityHow can you non-traditionally sell the following:FastfoodPerfumePhotocopying servicesSchool suppliesBaby products

Question and AnswerQ & A

For next meetingPrepare a 10-min presentation (use your groupings) that will analyze your assigned retailer using the following dimensions:Brief Company ProfileType of OwnershipStore-based ClassificationNonstore-Based classification (if any)Strategy Mixstore location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods

References Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person) Retail Forward, Inc., Twenty Trends for 2010: Retailing in an Age of Uncertainty