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Retail Institutions by Ownership

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Independent

Chain

Franchise

Leased department

Vertical marketing system

Consumer cooperative

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99.8% of overall enterprises are small and medium sizedenterprises; approx. 40% of them has activities in retailingindustry in Turkey.

In theWorld, account for one-third of total store sales

70% of independents operated by owners and their families

Why so many? Ease of entry

From the local florist to the hardware store to the funky boutique

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Advantages

Flexibility in formats, locations, and strategy

Control over investment costs, personnel functions, and strategies

Personal image

Consistency and independence

Strong entrepreneurial leadership

Disadvantages

Lack of bargaining power

Lack of economies of scale

Labor intensive operations

Over-dependence on owner

Limited long-run planning

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Operate multiple outlets under common ownership

Engage in some level of centralized or coordinated purchasing and decision making

In the U.S., there are roughly 110,000 retail chains operating about 900,000 establishments

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The Hong Kong

Dispensary was

founded in Hong

Kong in 1841

9 10

Advantages

Bargaining power

Cost efficiencies

Efficiency maintained by computerization, warehouse sharing, and other functions

Defined management philosophy

Considerable efforts in long-run planning

Disadvantages

Limited flexibility

Higher investment costs

Complex managerial control

Limited independence among personnel

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A contractual agreement between a franchisor and a retail franchisee that allows the franchisee to conduct business under an established name and according to a given pattern of business

Franchisee pays an initial fee and a monthly percentage of gross sales in exchange for the exclusive rights to sell goods and services in an area

IN US The number of franchise establishments increased 1.7% in 2015, franchise employment was up 3.0%.

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http://www.franchise.org/

Advantages

❖low capital required

❖acquisition of well-known names

❖operating/ management skills taught

❖cooperative marketing possible

❖exclusive rights

❖less costly per unit

Disadvantages

❖over-saturation could occur

❖franchisors may overstate potential

❖contractual confinement(limitations)

❖agreements may be cancelled or voided

❖royalties are based on sales, not profits

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▪ Initial payment: 30.000 USD + VAT

▪ Total investment required: 500.000- 1,100,000 USD + VAT (depending on location and size)

▪ 10 years long agreement

▪ Application First interviewOn the job evaluation (5 days) Last interview with top management 6-8 months long training

▪ Over monthly net sales

▪ ROYALTY: 11%

▪ FOR ADVERTISEMENTS : 5%

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https://www.mcdonalds.com.tr/CMSFiles/Image/Download/Franchisingbrosur.pdf

http://fortune.com/2016/03/08/mcdonalds-mccafe-gay-ad-watch/

▪ Since 1970

▪ Number of sales point over 40,000

▪ More than 450 Flormar stores

▪ Sales in more than 80 countries

▪ French cosmetics group Yves Rocher has bought a 51-percent stake in Turkish beauty products company Flormar in 2012

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▪ A leased department is a department in a retail store that is rented to an outside party

▪ The proprietor is responsible for all aspects of its business and pays a percentage of sales as rent

▪ The department store sets operating restrictions to ensure consistency and coordination

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Benefits

❖provides one-stop shopping to customers

❖reduces store costs

❖provides a stream of revenue

Potential Pitfalls

❖lessees may negate store image

❖procedures may conflict with department store

❖problems may be blamed on department store rather than lessee

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Functions:

Manufacturing

Wholesaling

Retailing

Ownership:

Independent Manufacturer

Independent Wholesaler

Independent Retailer

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Partially Integrated Channel System

Functions:

Manufacturing

Wholesaling

Retailing

Ownership:

Two channel members own all facilities and

perform all functions.

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Fully Integrated Channel System

Functions:

Manufacturing

Wholesaling

Retailing

Ownership:

All production and distribution functions

are performed by one channel member.

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Retail Institutions by Store-Based Strategy Mix

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❖A strategy mix is the firm’s particular combination of:

❖store location

❖operating procedures

❖goods/services offered

❖pricing tactics

❖store atmosphere

❖customer services

❖promotional methods

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5-25

Must be price-oriented and cost efficient

Must be upscale

Must be convenient

Should offer a dominant assortment

Should offer superior customer service

Must be innovative or exclusive

Retail Mgt. 11e (c) 2010 Pearson Education,

Inc. publishing as Prentice Hall5-26

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Retail Mgt. 11e (c) 2010 Pearson Education,

Inc. publishing as Prentice Hall5-27

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▪ 1954-1974: Migros Trucks

▪ 1975-1979: Koç Group investments

▪ 1350 Migros and 35 Macro Centers in Turkey;

▪ 46 Ramstores in Kazakhstan and Macedonia.

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❖Retail institutions pass through identifiable life stages

❖ introduction

❖ growth

❖ maturity

❖ decline

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Mergers, diversification

Cost-containment and value-driven retailing

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Standardizing procedures, store layouts, store size, and product offerings

Using secondary locations

Placing stores in smaller communities

Using inexpensive construction materials

Using plainer fixtures and displays

Buying refurbished equipment

Joining cooperative buying and advertising

Creatively financing inventories

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❖Food-Oriented

❖Convenience store

❖Conventional supermarket

❖Food-based superstore

❖Combination store

❖Box (limited-line) store

❖Warehouse store

❖General Merchandise

❖Specialty store

❖Traditional department

❖Full-line discount store

❖Variety store

❖Off-price chain

❖Factory outlet

❖Membership club

❖Flea market

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Location:

Neighborhood

Merchandise:

Medium width

and low depth

of assortment;

average quality

Prices:

Average to

Below average

Atmosphere and

Services:

Average

Promotion:

Moderate

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Dilan Yildirim 2012434040

Rabia Kilic 2012434025

• Location: KurucesmeMahallesi,Buca/Izmir• Neighborhood

• Prices: Average For Newspaper 1TL, Basic Food 1,5 TL, Junk-food 2 TL, Drinks 2 TL, Cleaning Supplies 5 TL, Tobacco products 7 TL, Tube 50 TL• Average to Below

average

• Merchandise:

• Medium width

• Low dept assortment bakery products, dairy products, drinks, snacks and junk foods, tobacco products, newspaper, kentcard loading, tube, cleaning supports, personal care products,

• Average quality: Good

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• Atmosphere and services: Friendship and smiling service, close relationship with customers, on credit shopping, affordable prices, brand products and also non-well known products

• Promotion: ‘Citir Para’ gift card 5-44

Location:

Neighborhood

Merchandise:

Extensive width

and depth

of assortment;

average quality;

manufacturer,

private, & generic brands

Prices:

Competitive

Atmosphere and

Services:

Average

Promotion:

Heavy use of

newspapers, flyers,

and coupons

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CONVENTIONAL SUPERMARKETSemra Yücel

Abdullah Öztürk İbrahim Erkam Turgut

Characteristics of RetailerPromotional Merchandising

Average quality, average width and low depth of assortment

Location

Close to neighborhood

Customer Profile

Loyal

Price Levels

Competitive

Atmospher

Average

photo -Why do you prefer to make your shopping

from Pehlivanoglu?

-Because it has product variety and it is quite close to my home. Also prices are very good

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MİGROS

Retail Supermarket

Cem ARAL

Talha Kurtulmuş

Yunus Emre ALPAY

Price Levels

As a company Migros address to every customer type from high income to

lower income rates ???, Migros does that by spliting into other brands as a store like for lower income its serves by şok or tanşas for middle income it

has Migros store and for higher income its serve by macro center brand

Characteristics

Customer types in migros vary. Because you can easily find all kinds of

products in migros, the simplest needs from the most sophisticatedproducts. You can either shop for just groceries or electronicwares.

Migros also has its own brand as products like milk or flor etc. By having it migros can sell their products soo much lower prices when its compare to

same quality products by that way its attracts all kinds of customers

Migros have a wide range diversity on products a customer can easily find

a product that looking for

Migros’ most fundamental strategy is to keep it customerssupplied with modern , a reliable an economical , and a high-quality service

Migros work very customer oriented and also very innovative

Migros Atmosphere

Migros has very clean and organized stores and also its has colorful theme

Even their recent slogan is ‘’ Most enjoyment of shopping ‘’

Their staff is always helpfull and smiling

With their self chechout system called ‘’ jet kasa ‘’ its help customer withfew groceries can easliy chechout in few minutes without waiting in line

This is a reason for preference for customer with less time and its effects

enjoyment of shopping

With wide range diversity in their stores people can find diffrent productsand its helps rise up the satisfaction for customers

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Location:

Community shopping

center or isolated site

Merchandise:

Full assortment plus

health and beauty aids

and general

merchandise

Prices:

Competitive

Atmosphere and

Services:

Average

Promotion:

Heavy use of

newspapers, flyers

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▪ Whole Foods Market Inc. is an American supermarket chain specializing in organic food that opened on September 20, 1980, in Austin, Texas

▪ http://www.wholefoodsmarket.com/

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Location:Community shopping center

or isolated site

Merchandise:

Full assortment plus

health and beauty aids

and general merchandise

Prices:

Competitive

Atmosphere and

Services:

Average

Promotion:

Heavy use of

newspapers, flyers

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Location:

Neighborhood

Merchandise:

Low width and depth of

assortment; few

perishables; few national

brands

Prices:

Very low

Atmosphere and

Services:

Low

Promotion:

Little or none

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✓A.101

✓Box store

Merve ÖZERK 2013434046

Aynur ÖZTÜRK 2013434048

▪ Food & beverage & cosmetic & paper products & cleaningproducts & non-food

https://www.a101.com.tr/urunlerimiz/

▪ Lower middle ???

▪ Low width and depth of assortment

▪ Proper??? prices

▪ Simple atmospheric

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▪Availability

▪Low prices

▪Quality of goods

▪Friendly staff

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Location:

Secondary site, often in

industrial area

Merchandise:

Moderate width and

low depth of

assortment; emphasis on

manufacturer brands

bought at discount

Prices:

Very low

Atmosphere and

Services:

Low

Promotion:

Little or none

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TEMİZOĞLU GIDA

WAREHOUSE STORE

Cesim ÇAHAL

Cevat ÇEŞTEPE

CHARACTERISTHICS OF RETAILER

MERCHANDISING

-High Quality-Many kind of

productsCUSTOMER

PROFILE-Hotels

-Restaurants

LOCATION

-Food Bazaar

PRICE LEVEL

-Average

ATMOSPHERE

-Not good

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WHY DOES HE/SHE MAKE HIS/HER SHOPPING FROM SELECTED RETAILER ?

There are lots kind (about 3000) products.

Many kinds of products are imported products

The retailer makes their own distribution service for customers

That why the customer would like to shoping from

that retailer.

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❖Food-Oriented

❖Convenience store

❖Conventional supermarket

❖Food-based superstore

❖Combination store

❖Box (limited-line) store

❖Warehouse store

❖General Merchandise

❖Specialty store

❖Traditional department

❖Full-line discount store

❖Variety store

❖Off-price chain

❖Factory outlet

❖Membership club

❖Flea market

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Location:

Business district or

shopping center

Merchandise:

Very narrow width and

extensive depth of

assortment; average to

good quality

Prices:

Competitive to

Above average

Atmosphere and

Services:

Average to excellent

Promotion:

Heavy use of displays

Extensive sales force

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▪ is a fashion label based in Switzerland. The company is represented worldwide in 38 countries with over 800 stores

▪ FOCUS: Young women’s apparel

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Hugo Boss Outlet Store For Men

“Speciality Retailer”Yusuf Hiçyakmaz

Gizem Dipsel

Hayrunisa Tahmaz

Hugo Boss Outlet For Men is in

Gaziemir, Izmir (Detailed Adress:

Akçay Caddesi No: 194 35410

Gaziemir- İzmir

Customer profile is high-level. They

don’t sell just clothes. They sell watch,

parfume, shoes at the same time.

Prices are higher than a classical outlet

store as well.

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As it can be seen from the shopwindow, Hugo Boss Outlet has

an elegant visual. Again, Hugo Boss Outlet is a speciality

retailer as it was said at first slide page.

Zafer Selçuk is a regular

customer of Hugo Boss Outlet.

He prefers Hugo Boss more

than other brands, because he

thinks that Hugo Boss is a high

quality brand and it is the most

important effect of his prefer.

Prices are also affordoble.

According to him, customer

delight is high and experienced

personnels directs his shopping

process positively.

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Specialty Store Reailer

Şeyma Güldoğan 2013434017

Neslihan Çiloğlu 2013434044

Hasan Mert Şentürk 2013434052

➢ Decathlon is sport specialty store which is located in Gaziemir

Optimum Outlet.

➢ Decathlon's customer profile is all age segment and all sport

activities.

➢ Decathlon's prices are quite different. Also you can find different

price for same type of goods.

➢ Decathlon's Atmospherics is so suitable for store speciality. You

can reach all kinds of products for all sports and try them easily.

Characteristics of Retailer

Some rayons from Decathlon

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Why does he make

his shopping

from Decathlon?

➢ First of all his priortiy is price level. He told prices are affordable.

Secondly Decathlon has many product diversity. He said, I can find

whatever I need to all kinds of sport activities.

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Location:

Business district, shopping

center or isolated store

Merchandise:

Extensive width and

depth of

assortment; average to

good quality

Prices:

Average to

Above average

Atmosphere and

Services:

Good to excellent

Promotion:

Heavy ad and catalog

use; direct mail;

personal selling

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In 2015, sales of $27 billion

in 870 stores in US

Omnichannel retailer

BOYNER

Nurşah Taşdemir – 2012434036

Begüm Kahraman – 2012434021

Gizem Sümbül – 2012434035

Boyner is a department store retailer that offers products

at various pricing level.

CHARACTERISTICS OF BOYNER

Cosmetics

Clothes and Underclothes

Shoes, bags, sunglasses, accessories

Sport

Decoration

-Location: Çiğli ( Near belt highway, different shopping opportunity) – isolated area

-Customer Profile: Middle & High Income

-Price Level: Mostly brands that have high price???

- Atmosphere: Easy to shop, comfortably spacious, good lighting, polite staff

BOYNER EVDE

Boyner has own brand for home

decoration unlike clothes,

accessories,

or shoes.

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CUSTOMER İNTERVİEW

Effect of Kipa

hypermarket

Opportunity of

comparing the

products

However,

More types of product

(small house

appliances) in the past

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Location:

Business district, shopping

center or isolated store

Merchandise:

Extensive width and

depth of

assortment; average to

good quality

Prices:

Competitive

Atmosphere/Services:

Slightly below

average to average

Promotion:

Heavy on newspapers;

price-oriented; selling

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(OFF-PRICE CHAIN RETAILER)

Gökhan CANPOLATDoğan Mert AKDEMİR

LOCATION

• Located in a popular bazaar

MERCHANDISE

• Full of many items, different types of product

• Mostly made in China

• Average quality

CUSTOMER PROFILE

• Often older people and housewifes

Characteristics of

PRICES

• Low prices

ATMOSPHERE

• 3-floored trading area

• No spacious environment

• It's hard even to walk because of the products

Characteristics of

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One Customer Interview

Q: Why do you do your shopping from Forbest?

A: ‘Because prices are more affordable, and everything I look for is in this place. So, there is no need to go to different places for shopping.’

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▪ Every day low prices in limited service environment

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Location:

Business district, shopping

center or isolated store

Merchandise:

Moderate width and

poor depth of

assortment;

average to good quality;

low continuity

Prices:

Low

Atmosphere/Services:

Below average

Promotion:

Use of newspapers;

brands not advertised;

limited selling

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5-95

Location:

Out of the way site

or discount mall

Merchandise:

Moderate width and

poor depth of

assortment;

low continuity

Prices:

Very Low

Atmosphere/Services:

Very low

Promotion:

Little

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5-96

Location:

Isolated store or

secondary site

Merchandise:

Moderate width and

poor depth of

assortment;

low continuity

Prices:

Very Low

Atmosphere/Services:

Very low

Promotion:

Little;

some direct mail

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▪ German based, since 1964

▪ 750 wholesale stores in 25 countries; SALES: $ 29.7 bn (2015)

▪ In Turkey, since 1990

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NAME OF THE RETAILER: METRO

TYPE OF RETAILER: WAREHOUSE STORE

ESRA KAYACIMEHMET EKERARCAN TEKKAAN

VALUE PROPOSITIONS

• PRICE• ASSORTMENT• SERVICE• QUALITY

CUSTOMER PROFILE

• OTELS• RESTAURANTS• BUSINESS OWNERS• GAS STATIONS• SMALL BUSINESSES

MERCHANDISING

• CASH&CARRY

ATMOSPHERE OF STORE

• HUGE STORES WITH GREAT SHELFS

THE MAIN REASONS OF SELECTING METRO?

• HUGE PRODUCT VARIETY• NO ALTERNATIVE• MORE AFFORDABLE PRICES

WITH WHOLESALE PURCHASES

• HIGH PRODUCT QUALITY

▪ Street selling

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102102

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NERGIZ ANTIQUE STORE

DENIZ ÖZÇIFTÇİ 2011434055

CHARACTERİSTİCS OF NERGİZANTİQUE STORE

Merchandising:Antique Store

Location: Nergiz

Customer Profile: Customers with artistic visions whom are

willing to pay for genuine and intangible the goods

Price Levels: 10 TL - 100.000 TL

Atmospherics: Antique goods, vintage style

CUSTOMER OPİNİON: WHY DOES HE/SHE MAKEHİS/HER SHOPPİNG FROM NERGİZANTİKA?

• '' Nergiz Antique store's central location makes it easy to stop by and look for

special goods, its variety of antique items, the owner's sincere and reassuring

manners are all reasons why I prefer this store. ''