Retail nstitutions Chapter 4
Chapter 4
Obiectives To Show Retail Classifications To Study Retail Ownership Type To Explore Influences in the Channel of Distribution
• To Show Retail Classifications • To Study Retail Ownership Type • To Explore Influences in the Channel of Distribution
Retail classification Ownershi Retail Strategy Mix Services Goods retail Strategy Mix Nonstore-Based Retail strategy M d Nontraditional Retailing g
II. Store-Based Retail Strategy Mix III. Service vs. Goods Retail Strategy Mix IV. Nonstore-Based Retail Strategy Mix and Nontraditional Retailing I. Ownership
Retail classification Independent Chain Franchise Ownership Lease Department Vertical Marketing System Consumer Cooperative
I. Ownership • Independent • Chain • Franchise • Lease Department • Vertical Marketing System • Consumer Cooperative
Independent Advantages Flexibility Investment Costs down Specialists Strong Control Image Consistency ° ndependence Entrepreneurial Drive
• 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
• Lack of Power • No Economies of Scale • Labor Intensive • Limited Access to Advertising • Over-dependence on Owner • Limited Resources for Long-run Planning
Chain Advantages ° Bargaining Power Cost Efficiencies Operating Efficiencies Technical abilities Advertising Availability Defined Management Philosophies
• Bargaining Power • Cost Efficiencies • Operating Efficiencies • Technical Abilities • Advertising Availability • Defined Management Philosophies
Chain Disadvantages Time and Resources spent on Long-run Planning ° Limited Flexibility Investments High Managerial Control Difficult Limited Independence for Personnel
• Time and Resources Spent on Long-run Planning • Limited Flexibility • Investments High • Managerial Control Difficult • Limited Independence for Personnel
Franchising Types Product/Trademark Business format
• Product/Trademark • Business Format
Franchising Arrangement Manufacturer-Retailer Voluntary Wholesaler-Retailer Cooperative Service Sponsor-Retailer
Manufacturer-Retailer Service Sponsor-Retailer Wholesaler-Retailer Cooperative Voluntary
