Non Store Retailing | Direct Marketing | Online Shopping

MANAGING RETAILING PROJECT REPORT

NON_STORE BASED RETAILING

SUBMITTED BYGROUP-4

ABHILAS DASH (1) SURJYA KUMAR DAS (55) TRIDEEP SAHU (57)

RAVENSHAW MANAGEMANT CENTRE

ACKNOWLEDGEMENT
We express our gratitude to the teacher of Managing retailing, Prof.T.K.Pany for giving us a lively project on the topic of Non-store based retailing which helped us to clear our concept on the topic.

2

INTRODUCTION 3 . We have also referred to different Retail management books and journals for making this project a fruitful one.PREFACE In this non-store based retailing project we have taken the secondary data as the main source.

It should be noted that many retailers are not tied to a single distribution method but operate using multiple methods. In most cases delivery is then handled by a third-party shipping service. ✔ Online Sellers – The fastest growing retail distribution method allows consumer to purchase products via the Internet. ✔ Regional Shopping Mall – Consists of a large self-contained shopping area with many connected outlets. brick-and-mortar).a. • Non-Store Sellers – A fast growing method used by retailers to sell products is through methods that do not have customers physically visiting a retail outlet. this type of retailing is 4 . share parking lot).. ✔ Strip-Shopping Centre – A retail arrangement with two or more outlets physically connected or that share physical resources (e. Store outlets can be further divided into several categories.Retailers sell in many different formats with some requiring consumers visit a physical location while others sell to customers in a virtual space.g. in many cases customers make their purchase from within their own homes. ✔ Shopping Area – A local center of retail operations containing many retail outlets that may or may not be physically connected but are in close proximity to each other such as a city shopping district. orders are received via mail or phone. One key characteristic that distinguishes categories is whether retail outlets are physically connected to one or more others stores: ✔ Stand-Alone – These are retail outlets that do not have other retail outlets connected. In fact. • Store-Based Sellers – By far the predominant method consumers use to obtain products is to acquire these by physically visiting retail outlets (a. ✔ Direct Marketers – Retailers that are principally selling via direct methods may have a primary location that receives orders but does not host shopping visits. ✔ Vending – While purchasing through vending machines does require the consumer to physically visit a location.k. Rather.

. selling from portable stalls and distribution through vending machines. Some Non store Retail companies(Globally): • • • • The Home Depot. Nonstore retailing includes such services as vending machines. and sales through portable stalls (e.g. or compulsive buyers. home delivery sales. electronic shopping. such as direct marketing. nonstore) of products. Establishments engaged in the direct sale (i. The Bon-Ton Stores. in-home demonstration. direct selling. such as the broadcasting of infomercials. party plan sales. Retailing done without conventional store-based locations is non-store based retailing. such as home heating oil dealers and newspaper delivery are included in this subsector. Industries in the Nonstore Retailers subsector retail merchandise using methods. the publishing of paper and electronic catalogs. Inc. Dollar Tree. vending machine operators. catalog sales. The non-store retailers are known by medium they use to communicate with their customers. 5 .e. Non-store sales are now growing at a higher rate than sales in retail stores. Inc. Inc. Establishments in this subsector include mail-order houses. directto-home selling. telemarketing. except food). and television marketing programs. Inc. direct selling and vending machines or e-tailing. the broadcasting and publishing of direct-response advertising. and vending machines. The high growth rate is primarily due to the growth of electronic retailing. door-todoor sales. Most non-store retailers offer consumers the convenience of buying 24 hours a day seven days a week and delivery at location and time of their choice. door-to-door solicitation. Non store retailing is patronized to time conscious consumers and consumers who can't easily go to stores. The growth of catalogue retail sales and sales in other non-store retailing formats such as TV home shopping. street vendors.considered as non-store retailing as the vending operations are not located at the vending company’s place of business. Forever 21.. mail order.

Inc. ✔ The breadth of customer coverage is considerably wider than is possible with an individual retail location. Inc. Amazon. we must still deal with painfully slow connections. Army and Air Force Exchange Service Bass Pro Shops. Crew Group. ADVANTAGES OF NON STORE RETAILING ✔ Its freedom from a physical retail presence. AutoZone. 6 . ✔ Companies do not have to spend large sums or dilute stock building new locations. ✔ And since most of us do not have the luxury of a pricey T1 Internet connection. centralized location.• • • • • • Costco Wholesale Corporation J. ✔ This truly gives the non-store retailer a global market from a cheap. ✔ The high fixed costs of operating retail outlets are eliminated. both related to the sense of detachment that not holding a prospective purchase brings. DIS-ADVANTAGES OF NON STORE RETAILING: ✔ There is also the fear of credit card abuse and mail fraud. Inc.com. or acquiring them. Inc.

TRENDS OF THE INDUSTRY This graph represents that the importance and the share of the retail online sales is increasing at an increasing rate. It also signifies that with the time constraint coming in the life-style of many buyers the non-store based retailing and etailing will be the core of the retailing business around the world in near future. CLASSIFICATION OF NON-STORE RETAILING Non store retailing can be classified into7 .

1. ✔ Example: Eureka Forbes. and telemarketing) with consumers or businesses. e-mail. Direct response marketing DIRECT SELLING The marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace ✔ Party plans: Hosting groups to view a product demonstration and encouraging participants to purchase the products. The first is that it attempts to send its messages directly to consumers. Convenience of time and place of presentation." This aspect of direct marketing involves an emphasis on 8 . The second characteristic is that it is focused on driving a specific "call-to-action. Negative consumer view of direct selling. DIRECT MARKETING Direct marketing is a sub-discipline and type of marketing. without the use of intervening media. Direct marketing and 3. Advantages and disadvantages of direct sales ✔ Benefits Personal attention to customer. This involves commercial communication (direct mail. There are two main definitional characteristics which distinguish it from other types of marketing. usually unsolicited. ✔ Limitations High costs make it the most expensive form of selling. Direct selling 2.

the marketer can say with some confidence that the campaign led directly to the responses. Reasons for the growth in direct marketing: Advantages and Disadvantages of Direct Marketing Direct marketing is attractive to many marketers. because in many cases its positive effect (but not negative results) can be measured directly. Direct marketing provides a unique range of benefits because it enables you to 9 . telemarketing. direct response advertising and email marketing. if a marketer sends out one million solicitations by mail. and ten thousand customers can be tracked as having responded to the promotion. measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium.trackable. Direct marketing is a marketing tool which comprises activities such as direct mail. For example. mail order.

you can work on refining and improving your success rates. gained once again through direct marketing methods. Other advantages of direct marketing include: Flexible Targeting Direct marketing enables you to talk directly identify. Rapid Delivery 10 . collect information for future campaigns. forecast and budget for future direct marketing campaigns.engage directly with your audience . And direct marketing is also far cheaper than mass market communication. Ease of Management Direct marketing provides greater control and accountability than other marketing methods. Cost-Effectiveness The cost per acquisition of direct mail can be significantly less than other marketing methods. end users or existing customers. or segment a customer base. This means you get a higher conversion and success rate than if you tried communicating to everyone in the mass market.it can be used to test new markets and trial new products or customers. Plus it also makes it easier to plan. Once you've run a direct marketing campaign and know the conversion rates involved. Plus once you've acquired a customer.whether they are prospects. to reward existing customers to build loyalty. isolate and communicate with well-defined target markets. leads. you can also benefit from highly profitable repeat sales. Multiple Uses Direct marketing doesn't just have to be used to sell . It is easy to measure results because you know exactly how many people you've contacted in the first place.

list. Targeting of Messages Direct marketing can enable you to target different messages to different recipients. as well as personalising the mailer to the recipient to increase conversion rates. Any of these variables such as timing.Direct marketing is both swift and flexible in achieving results. regional targeting by postcode or county. and measured to find the optimum direct marketing proposition. Geographic Targeting Direct marketing can be used for any level of geographic targeting. tested again.when direct marketing can prove a far cheaper way of testing the market than a costly personal sales visit. This is especially true for telemarketing. designs and offers in a direct mailer according to who it's being sent to. which can also be used as part of a push pull strategy to stimulate demand for retailers. message. mailer and offer can be adjusted. whether it's the local area surrounding a shop or restaurant. From the outset you have a direct relationship with them. Relationship Building Direct marketing is far more effective at initiating and developing a meaningful dialogue with new customers. it's even possible to display different images. Using technology such as digital printing. 11 . test and test again in order to hit upon the most successful combination of direct marketing tools. as the results of a conversation can be logged immediately and scripts adjusted straight away to improve results. one of the direct marketing tools. national targeting and even international . Testing capability Direct marketing allows you to test.

and can create a completely new distribution channel direct to the customer or end user. The delivery of the response is direct 12 . DIRECT MARKETING TECHNICS Direct-response marketing Direct-response marketing is a form of marketing designed to solicit a direct response which is specific and quantifiable.Direct marketing exploits the growth in new technology. Discover the advantages of direct marketing for your business.

Furthermore. Most non-store retailers offer consumers the convenience of buying 24 hours a day seven days a week and delivery at location and time of their choice. but do not allow for instant feedback. marketers use broadcast media to get customers to contact them directly. direct selling and vending machines or e-tailing. not that which just looks good. direct-response campaigns perform best if the underlying strategies and tactics are highly competitive. there is no intermediary broadcast media involved. but on their ability to sell for you. Always test and measure response. In direct marketing. Select and retain media not on their ratings. Non store retailing is patronised to time conscious consumers and consumers who can't easily go to stores. this differentiates it from simple direct marketing in which the communications from the marketer to the customer are direct. Always ask for the order or for further action. It is inherently accountable since results can be tracked and measured. It is direct-response marketing because the communications from the customer to the marketer are direct. Make the ‘offer’ the central theme of the designing campaign. or compulsive buyers. Not always necessary to reinvent the wheel when designing campaigns. In directresponse marketing. the customer responds to the marketer directly. Like direct marketing. This is in contrast to direct marketing in which the marketer contacts the potential customer directly. Long copy can sell if the reader is engaged. such as direct marketing. that is. direct-response marketing seeks to elicit action. Select creativity that sells.between the viewer and the advertiser. OTHER TYPES OF NON STORE RETAILING The non-store retailers are known by medium they use to communicate with their customers. PRINCIPLES OF DIRECT RESPONSE ADVERTISING: • • • • • • • • The focus should always be on what sells. Nonstore sales are now 13 .

Non-store retailing now accounts for more than 15% of all consumer purchases. sufficient to purchase the desired item . ✔ Vending Machines ✔ E-Retailing ✔ Tele Shopping ✔ Network Marketing ✔ Information Kiosk ✔ Airport Retailing ✔ Door To Door Leaflet Marketing Vending machine is a machine that dispenses merchandise when a customer deposits money. and it may account for over 1/3 of all sales by the end of the century. beverages. validated by a currency detector. It may be broadly be a combination of two elements. • A vending machine provides snacks. Items sold via these machines vary by country and region. Internet retail also has some elements in common with direct 14 . Combining new technologies with elements of traditional stores and direct mail models Using new technologies to replace elements of store or direct mail retail. while other countries do not allow this practice (usually because of dram shop laws). merchants may sell alcoholic beverages such as beer through vending machines. E-Retailing Internet Retailing or e-retailing as is usually referred to as covers retailing using a variety of different technologies or media. • It is a is a machine that dispenses merchandise when a customer deposits money. The high growth rate is primarily due to the growth of electronic retailing. The growth of catalogue retail sales and sales in other nonstore retailing formats such as TV home shopping and vending machines are slower.growing at a higher rate than sales in retail stores. validated by a currency detector. sufficient to purchase the desired item . • In some countries. and other products to consumers without a cashier.

e-mail messages can replace mail messages and the telephone. Most of them do not avail of the transaction facilities offered by the credit cards.mail retailing. communication and transactions while on-line catalogues can replace printed catalogues. therefore. that are used in the direct mail model as means of providing information. As with direct mail businesses. cash on delivery and net banking to give them further assurance. 15 . For eg. such as customer service and product displays. critical success factors include: • • Use of customer databases Easy ordering • Quick Delivery Operational elements that the Internet retail model shares with both the retail store and direct mail models include: Billing of customers Relationships with suppliers There are. Hence different payment options should be made available to them like the credit card. They are also dubious regarding the online payment system through the credit cards. E-Retailing in India Bottlenecks Faced By E-Retailing in India Problems with the Payment System People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them. Indeed many of the most successful Internet retailers have been those that have been able to successfully transfer critical elements from traditional retailing to the Internet. many elements that Internet retail and more traditional retail models have in common.

Another reason why the concept of e. not available online. Offline presence The customers should be assured that the online retailers are not only available online but offline as well. For this the retail companies have resorted to private guaranteed courier services as compared to postal services. The customers should be conveyed this message that they are getting the products at a discounted price.retailing or online retailing has not gained prominence in India is that the Indians prefer to touch the products physically before buying them. Language Problem Most internet retail shops use English as their mode of communication. This facility is provided through the multi-brand outlets.Problems with Shipping The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time. Hence the retailer online should first make it a point to spot the potential customers and accordingly plan out the product. Products offered at discounted rates The online retailers save on the cost of building and employee salaries. Some part of this benefit should also be enjoyed by the online customers by a reduction in the price of the product. This gives them the psychological comfort that these companies can be relied upon. If the customers are 16 . English may not be comprehensible to the majority of the Indian population . Studies have revealed the preferences of the customers towards the traditional shopping methods. To increase the customer base. content in the online retail shops should be provided in local language.

com have constructed the data that is taken from the conventional local retailers. shopping malls. Compare India. These sites help the customer in finding out the local retail store that will best suit his purpose. The comparison sites not only help to choose the online sites that would be providing the best deal but also offline as well. then nothing can be more beneficial. Future of E-retailing in India There are divergent views on the future of e-retailing in India. Some experts are of the opinion that the giant.com and the ultop. Another viewpoint is that there would be an exponential growth in the online retailing business in India. It would be next to impossible for the small retailers and the kiranas to prove their existence in the battlefield of online retailing. From this very difficulty has cropped up comparison sites. products can be delivered by a click of the mouse. Sites like Rediffproductsearch. They save the time and effort to visit. Comparison is done on the basis of an index which is constructed from the data available from different shopping sites.com are such sites though many more sites are entering this zone. TELE SHOPPING Method of direct marketing in which a salesperson solicits to prospective customers to buy products or services. big brand retailers would dominate the small ones due to their wider investment capacities. departmental stores. The bechna. 17 .more open to online shopping. etc. Some online retailing sites in India E Bay is heading the race of online retailers. In this race it has become very difficult to determine the online retail store that makes the products available at convenient and cheap rates. either over the phone or Web conferencing appointment scheduled during the call.

the most common marketing tactic in a network marketing strategy is word of mouth. For example. It refers to the use of interpersonal or social networks to market products and services for business purposes as opposed to the more traditional and common practices of widerange advertising.Telemarketing is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services. Model of Network marketing: 18 . NETWORK MARKETING Network marketing is a general term for a type of marketing that is usually performed by an individual instead of a company. either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call. The term is technically a type of marketing that can be used as part of an overall marketing strategy which may or may not encompass multiple tactics.

DOOR TO DOOR LEAFLET MARKETING Leaflet Distribution services are used extensively by the fast food industries. envelopes or having to buy address lists and the names of home occupants. company services. AIRPORT RETAILING In past. tiny gift stores. At virtually every large airport.Network marketing is a part of the direct selling concept where products or services are offered on a one-on-one basis and sold directly by the salesperson to the consumer. By the touch of a finger users can gain access to product information. as well as at every medium ones. INFORMATION KIOSK It is the first kiosk platform for a variety of functions offered on many kiosks in the marketplace today. Today airports are a major mecca of retailing. and newspaper/magazine stands. the leading airport retailers were fast food outlets. city government. there are fullblown shopping areas. schools. and many other business focussing on a local catchment Business to consumer business model. and costs a fraction of the amount of a mailshot due to not having to purchase stamps. churches. similar to direct mail marketing. 19 . forms and printouts for retail stores. tourist locations and more. this method is targeted purely by area.

20 . It also signifies that with the time constraint coming in the lifestyle of many buyers the non-store based retailing and e-tailing will be the core of the retailing business around the world in near future and in India as well.CONCLUSION The importance and the share of the retail online sales are increasing at an increasing rate.

Sign up to vote on this title
UsefulNot useful