Managing Retailing, Wholesaling and Logistics

Successful “go-to-market” strategies

require integrating retailers, wholesalers, and logistical organizations.

Introduction

(a)Consumer Marketing Channels (b) Industrial Marketing Channels

Marketing channels

Retailing includes all the activities

involved in selling goods or services directly to final customers for their personal, nonbusiness use. A retailer is any business enterprise whose sales volume comes primarily from retailing.

Retailing

Store Retailing: 8 categories

Specialty Store

Types of Retailing

Department Store

Supermarket Convenience Store

Contd…

Discount Store Off-Price Retailer

Superstore Catalog Showroom

1. Self-service2. Self-selection3. Limited service4. Full service

Level of service

1 2

3 4

Four major categories

1. Direct Selling: One-to-one selling One-to-many Multilevel

2. Direct Marketing 3. Automatic Vending4. Buying Service

Non-store Retailing

Corporate Chain Stores Voluntary Chain Retailer Cooperative Consumer Cooperative Franchise Organization Merchandising Conglomerate

Corporate Retailing

A franchising system is a system of

individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor.

What is a Franchising System?

The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments.

The franchisee pays for the right to be part of the system.

The franchisor provides its franchisees with a system for doing business.

Characteristics of Franchises

Target-market decision Product Assortment-&-procurement

decision Services-&- store- atmosphere decision Price Decision Promotion Decision Place Decision

Marketing Decisions

1. New retail forms and combinations 2. Growth of intertype competition 3. Growth of giant retailers 4. Growing investment in technology 5. Global presence of major retailers 6. Selling an experience, not just goods 7. Competition between store-based and

non-store-based retailing

Trends in Retailing

CASE STUDY ON MANAGING RETAILING

Founder- Kishore Biyani (MD & CEO) Headquarters- Mumbai Products- Integrated foods and other FMCGs Services- Supermarkets, hypermarkets,

discount stores, insurance, logistics, media Incorporated in 1987 (as Manz wear Pvt. Ltd)

Businesses RETAIL

Pantaloons

Big Bazzar

Food Bazaar

Central

Home Town

E-zonefutureBazzar.co

mFbb

FUTURE GENERALI

LIFE INSURANCE

GENERAL INSURANCE

SERVICES

Future Supply ChainsFuture

Learning

Future Media

Future Brands

T24

Future Ideas

Business Technology

Services

PARTNERSHIP

CollaborationJoint Brand

BuildingAssistance

As India’s leading retailer, Future Retail inspires

trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. They serve customers in 95 cities across the country through over 10 million square feet of retail space.

Their strategy is based on a deep understanding of Indian consumers the products they want, and making these products available in every city in every store format.

Pantaloon Retail (India) Limited, is India’s

leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.

Headquartered in Mumbai The company operates over 12 million square

feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.

Pantaloons Brands AgileUMMBare

DenimBare 7to14ChalkRig

Mix n match Honey

Non-Pantaloons Brands Biba

109 FRemanik

aSpykarLilliput

Lee CooperIndus

league

Brands at Pantaloons

Big Bazzar was introduced in 2001 with its first

store in Kolkata. Hypermarket chain in India Outlet- 140 outlets Tagline- Is se sasta aur accha

kahin nahi Big Bazaar is not just another hypermarket; it

caters to every need of a family. Where Big Bazaar scores over other stores is its value for money proposition for Indian customers.

Flagged off in April’02 Food Bazaar invites you for a

shopping experience in a unique ambience.

It is a chain of large supermarkets with a difference where the best of Western and Indian values have been put together to ensure your satisfaction and comfort while shopping.

Presently have 173 Food Bazaar stores

Launched in May 2011 in Mumbai. Foodhall is a premium lifestyle food

destination that targets the urban Indian consumers who love to experiment with global cuisine and promises to expose customers to the next level of food retailing.

Currently Foodhall is present in Mumbai, Bengaluru, New Delhi, Pune and Gurgaon.

This store designed for “foodies” is a one – stop shop for food lovers and offers everything under one roof, right from daily essentials, exotic flavours, secret ingredients to premium kitchen accessories.

Foodhall also caters to all the dining and cooking needs of customers with an array of kitchen accessories.

Contd...

HomeTown is a unique one-stop destination for complete home-making solutions, the first of its kind retail format in India.

It provides consumers all that goes into building a house and everything to make it a ‘Home’, all under one roof.

Has a specialized team of experts to set it all up for them at their homes.

Contd…

HomeTown’s range of products includes Furniture Bath and Sanitary Ware Modular Kitchens Paints and Wallpaper Tiles and Wooden Flooring Carpentry and Hardware Electricals and Decor Lighting Electronics Furnishings and Accessories

Spread across 31 cities and 92 stores in India Ezone operates as stand-alone stores across India

in Malls, High Streets and within other group format stores like Home Town, Central, Big Bazaar and also in Pantaloons Stores

Further, services such as Easy Exchange, Extended Warranty, Instant Finance, Masterclass, Data Transfer and more.

Fashion at Big Bazaar has been the face of

affordable fashion destinations in India since 2008. FBB targets a youthful audience in India that

wishes to stay synonymous with current trends. The brand spreads across all the metro cities, mini metros and also penetrates well in tier II cities.

Launched in May 04 at Bangalore. Offers everything for the urban aspirational

shopper to shop, eat and celebrate. Ensure the best brands in the indian market

are made available to the discering indian customer.

It is based on the concept of “One Stop Shop”.

All the activities involved in selling goods or services to those who buy for resale or business use.

Excludes manufacturers, farmers & retailers. They are also called distributors. Pay less attention to promotion, atmosphere &

location. Transactions are larger than in retailing.

Wholesaling

Merchant wholesalers Full-service wholesalers Limited-service wholesalers Brokers & agents Manufacturers’ & retailers’ branches &

offices Specialised Wholesalers

Types of Wholesalers

Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling

Wholesalers’ functions:

Wholesale Market system

ANOverview

Overview about the

Mart Location-Opposite Ckali, Near Swaminarayan Chowk, Dr

Ambedkar Rd, shahibaugh, Dudhe Total area-Spread across 165,000 square feet of

shopping area Total products catered - 95,000 ( Approx) Products and services –

1.fresh produce2.food & grocery 3.home care products4.apparel and accessories5.non-food FMCG products 6.consumer durables and IT7.automotive accessories8.lifestyle products 9.footwear and much more

Reliance mart towards providing international

shopping experience Unmatched affordability for distributed customer

base. Guaranteed quality and choice of products and

services Location being the asset to the Mart catering to all classes and customer base. lucid transaction & efficient of payment and goods

delivery. loyalty and customer retention programs

USP’s of the MART

A complete solution” to the customer – AIM

10:00 a.m. to 10:00 p.m., seven days a week

intensive product range and services ( catering every possible product and service

requirements)

Exclusive distribution network

Layout

DISTRIBUTION MANAGEMENT

Inventory system

Order processing Customer orderOrder transmission

Order TransportationOrder Selection Customer delivery

• Use of POS ( point of sale inventory management system) It’s a cross functional system.

• Real time updating and RFID being used.

• Reliance Trans connect being the supplier.

positives• India largest company • Market value US$ 35 billion• Turn over of US$ 27 billion in 2007• World’s Largest producer of polyester• RIL has grown exponentially to diversify

negatives• It has a strategy to phase out service gradually and thus customer doesn’t

have that consistent loyalty.• No help and real time assistance in separate retail spaces by

merchandisers• Wide range of products and services ( but less variety)• Less customer centric approach and more emphasis on “private labels”• less brands and less products and service coverage.

Strengths and Weakness of the Mart

1. No inventory issue2. Low prices ( comparative)3. physical presence4. wide coverage

Strengths

1. No customer preference2. Emphasis on all products and service leading

to no specialization.3. price of products are fluctuate4. less preference to multicultural crowd

Weakness

1. More customer centric approach can be used2. Separate sections can be induced for different

customer base3. Usage of retail space in a much better way

Opportunities

1. Better low price products2. Increased competition3. More retail competition4. Internal competition from private players in

the mall itself.

Threats

Involves planning, implementing & controlling

the physical flows of materials & final goods from points of origin to points of use

Management of the supplies and transport required for an operation

Physical Distribution starts at the factory. Managers choose a set of warehouses (stocking points) and transportation carriers that will deliver the goods to final destinations in the desired time or at the lowest total cost.

Market Logistics

ILS include material management, material

flow systems, and physical distribution, aided by Information Technology (IT).

Third Party suppliers, such as FedEx Logistics Services or Ryder Integrated Logistics, often participate in designing or managing these systems.

Integrated Logistics Systems

Many companies state their market-logistic objectives as “getting the right goods to the right places at the right time for

the least cost” No system can simultaneously maximize customer service and

minimise distribution cost. Each possible market-logistics system will lead to the following

cost: M= T + FW + VW + S where M= total market-logistics cost of proposed system T= total freight cost of proposed system FW= total fixed warehouse cost of proposed system VW= total valuable warehouse cost of proposed system S= total cost of lost sales

Market-Logistics Objectives

The firm must make four major decisions about its market logistics :

1. Order processing: How should orders be handled?

2. Warehousing: Where should stocks be located?

3. Inventory: How much stock should be held?

4. Transportation: How should goods be shipped?

Market-Logistics Decisions

Reference •Philip Kotler, and Kevin Keller. Marketing

Management. 13th ed. Prentice Hall, 2008

Reference