Chapter 4
? To Show Retail Classifications
? To Study Retail Ownership Type
? To Explore Influences in the Channel of
Distribution
II,
Store-Based
Retail Strategy
Mix
III,
Service vs,
Goods Retail
Strategy Mix
IV,
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
I,
Ownership
I,
Ownership
? Independent
? Chain
? Franchise
? Lease Department
? Vertical Marketing System
? Consumer Cooperative
? Flexibility
? Investment Costs Down
? Specialists
? Strong Control
? Image
? Consistency
? Independence
? Entrepreneurial Drive
? Lack of Power
? No Economies of Scale
? Labor Intensive
? Limited Access to Advertising
? Over-dependence on Owner
? Limited Resources for Long-run
Planning
? Bargaining Power
? Cost Efficiencies
? Operating Efficiencies
? Technical Abilities
? Advertising Availability
? Defined Management Philosophies
? Time and Resources Spent on Long-run
Planning
? Limited Flexibility
? Investments High
? Managerial Control Difficult
? Limited Independence for Personnel
? Product/Trademark
? Business Format
Manufacturer-Retailer
Service Sponsor-Retailer
Wholesaler-Retailer
Cooperative
Voluntary
? Small Capital Investment
? Brand Awareness
? Operation Procedures and
Management Skills
? Cooperative Marketing
? Exclusive Selling Rights
? Purchasing Costs
? Oversaturation
? Franchisor Overselling
? Contract Provisions
? Cancellation Clauses
? Short Duration
? Gross Sales Based Royalties
? National or Global Presence
? Ownership Qualifications Set
? Money Obtained on
Delivery
? Stringent Rules for Franchisees
? Franchisee Work Incentive
? Royalties Continue
? Damaged Reputation
? Loss of Customer Loyalty
? Intra-franchise Competition
? Reduced Resale Value
? Injured Profitability
? Franchisee Desire for
Independence
? Fills Merchandise and Expertise Gaps
? Enlarged Market
? Reduces Store Costs
? Lessee Assumes Administration Rol
? Percent of Revenues
? Conflicts in Operating Procedures
? Damaged Image
? Customer Blame
? Well Know Store
? Reduced Costs
? Economies of Scale
? Inflexibility in Hours
? Product Line Restrictions
? Raised Rent
? Sales Expectations Not Met
FOOD-ORIENTED RETAILERS
? Convenience Store
? Conventional Supermarket
? Food-Based Superstore
? Combined Store
? Box (limited-line) Store
? Warehouse Store
II,
Store-Based
Retail Strategy
Mix
GENERAL MERCHANDISE RETAILERS
? Specialty Store
? Variety Store
? Traditional Department Store
? Full-Line Discount Store
? Off-Price Chain
? Factory Outlet
? Membership Club
? Flea Market
II,
Store-Based
Retail Strategy
Mix
III,
Service vs,
Goods Retail
Strategy Mix
?Rented Goods
?Owned Goods
?Nongoods
? Direct Marketing
? Direct Selling
? Vending Machine
? World Wide Web
? Other Emerging
Retail Formats
IV,
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
Manufacturer Independent Manufacturer Ownership
Wholesaler Independent Wholesaler Ownership
Retailer Independent Retailer Ownership
Manufacturer
Wholesaler
Retailer
Two Channel Members
Own All Facilities and
Perform All Functions
Manufacturer
Wholesaler
Retailer
All Production and Distribution
Functions are Performed By
One Channel Member
? Owned by Consumers
? Most Popular in Grocery
Retailing
? Ways Retail Institutes Can Be
Classified
? Retail Ownership Types and
Characteristics of Each
? Exertion of Influence in the Channel
of Distribution
– By Manufacturers
– By Wholesalers
– By Retailers
Questions?
Questions?
Questions?