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INSTITUTE OF INFORMATION TECHNOLOGY & MANAGEMENT (IITM)
Submitted in partial fulfilment of the requirements for the award of the degree of Bachelor of Business Administration (BBA)
To Guru Gobind Singh Indraprastha University, Delhi
Guide: (Mr.Anmol Poddar )
Submitted by: (Aarushi Singh) Roll No.01521101709
Institute of Information Technology & Management, New Delhi – 110058
I am very grateful to my guide Mr. Anmol Poddar without whom this project would not have been possible. My guide’s provisions of proper guidelines helped me a lot. The help provided by various councils, books, and internet cannot be expressed in words.
I wish my sincere gratitude to my parents n friends who supported me in every little way they could, to complete the work.
I wish my sincere, whole-hearted thanks to all those who helped me in making this project.
Institute of Information Technology and Management Paper Title-Personality Development & Communication Skills-III (Minor Project Report) Paper Code-211 Assignment-MM: 18 Topic: Managing Retailing The topic must cover the following aspects: Meaning and Definition Concept and scope of Retailing Position of Retailers in modern marketing Functions of retailers Types of wholesalers Services rendered by retailers Kinds of retailers Marketing decisions by retailers Types of Retail Distribution Outlets mall scale retailers S Departmental stores Multiple shops or chain stores Mail order house Consumer’s cooperative store Supermarket Include relevant examples and figures in your assignment.
DEFINITION AND MEANING
Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use. Retailing consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.
hotels and hair salons.is an art.is getting to know the final user on behalf of the producer. . What is retailing? Retailing involves selling products and services to consumers for their personal or family use. and on-line stores. and necessitates employing several tools of logistics management for a complete end user satisfaction. Zales Jewellers are all examples of retail stores. Service providers. is also retailers.The process of bringing the ultimate user to the main producer. Therefore. RM. and specialty stores like The Gap. like dentists. discount stores like Wal-Mart and K-Mart. like Burdines and Macy's. where retailing is the last one. like Amazon. It is not limited to quantities. RM . bringing about operational efficiency at this last stage. but limited to the exact requirement of the ultimate user. is "Retail Management"(RM). Department stores. through a series of stages. RM .is a process of facilitation.com. and creating an environment so compelling that he looks nowhere else.
door-to-door visit s—any channel that could be used . parlour. The selling need not necessarily take place through a store. who links the producers and the ultimate consumers. Retailers perform specific activities such as anticipating customer’s wants. Manufacturer Wholesalers Retailers Consumer A retailer is a person. agent. The word ‘retail’ is derived from the French work retailer. agency.CONCEPT OF RETAILING The distribution of consumer products begins with the producer and ends at the ultimate consumer. company. merchandise. or organisation which is instrumental in reaching the goods. or by a car rental agencies. it also includes the sale of services like those offered at a restaurant. and financing. acquiring market information. Retailing encompasses selling through the mail. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. developing assortments of products. Between the producer and the consumer there is a middleman-the retailer. A common assumption is that retailing involves only the sale of products in stores. meaning ‘to cut a piece off’ or ‘to break bulk’. or services to the ultimate consumer. the internet. However.
to approach the consumer. in order to survive in retailing. the ease of entry into retail business results in fierce competition and better value for customer. As we all know. To enter retailing.e. catering to customers. is easy and to fail is even easier. Therefore.. a firm do a satisfactory job in its primary role i. Retailing has become such an intrinsic part of our day today lives that it is often taken for granted. . freedom of choice and higher levels of customer service. Why has retailing become such a popular method of conducting business? The answer lies in the benefits a vibrant retailing sector has to offer-an easier access to a variety of products.
SCOPE OF RETAILING Retail is clearly the sector that is poised to show the highest growth in the next five years. due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. as both the present players and new entrants are gearing up to explore the market. Tesco. .5%. 1500 supermarkets and 325 departmental stores currently under construction. This sector contributes 10% of India's GDP and the current growth rate is 8. like the Internet. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. There are about 300 new malls. The sector is set for a revolution. Many players are coming up with huge investments. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. Global retail giants such as Wal-Mart. The rising demand of branded products and increase in purchasing power have lured these companies to enter the market. The Future of Retailing Advances in technology. have helped make retailing an even more challenging and exciting field in recent years. The nature of the business and the way retailing is done are currently undergoing fundamental changes. Germany's Metro AG and many others are ready to enter the retail markets.
retailing in some form will always be necessary. In addition. For example. will need to have face-to-face interaction with the consumer.com. the very vastness of cyberspace will still make it very difficult for a consumer to purchase every product he or she uses directly. Also. the country has identified new scope for retail sector development. The already revolutionizing urbanization and growing demand for finished products has necessitated development of new space for retail outlets. in many cases the experience of visiting the retailer is an important part of the purchase. Of course. and perhaps most importantly. Everything that the retailer can do to make the shopping experience pleasurable and fun can help ensure that customers come back.However. like Amazon. they may want products immediately and won't want to wait for them to be shipped. But even with products. like hair styling. traditional retailers with physical stores will continue to be necessary. consumers often want to see. This sector contributes 10% of India’s GDP and the current growth rate . even though the Internet is beginning to make it possible for manufacturers to sell directly to consumers. The sector is set for a revolution. touch and try them before they buy. bring together assortments of products for consumers to buy in the same way that bricks-and-mortar retailers do. Or. Retail is clearly the sector that is poised to show the highest growth in the next five years. as both the present players and new entrants are gearing up to explore the market. On-line retailers. retailers who offer personal services. With new boom in the retail industry.
Estimates and Predictions: • The industry is estimated to be more than US$ 400 billion by a study of McKinsey.5 million people by the year 2010. • A KPMG report says that the organized retail would grow at a higher rate than GDP in the next five years.5%. 1500 supermarkets and 325 departmental stores currently under construction. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. . • The retail sector would generate employment for more than 2. The Economist Intelligence Unit (EIU) estimates the retail market in India to increase to US$608. says an analysis by Ma Foi Management Consultants Ltd. There are about 300 new malls.9 billion in 2009 from US$394 billion in2005. Many players are coming up with huge investments. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010.is 8. due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business.
Technology would be upgraded in terms of logistics. production. • • Investment in whole supply chain would increase. • • The markets of the sector would flourish and develop. Exports would increase due to greater sourcing of major players. • • Better lifestyle as better products would be introduced. • In the long term it will be beneficial in the up-gradation of agriculture and small scale & medium scale industries. Employment would increase and skills & manpower will develop. and distribution channels.Benefits of FDI in Retail Sector: • Higher competition would lead to higher quality in products and services. • • A strong retailing sector would promote tourism. Economies of scale would help lower consumer prices and increase the purchasing power of the consumer. .
Subhiksha. Liberty shoes Ltd. etc. Globus Stores Pvt. · Biggest player in India is Pantaloon Retail India Limited. Indian Consumerism: The Indian consumer behaviour is rapidly changing with a shift in new generation’s preference towards luxury commodities. Carrefour. A glimpse of the International Retail: · One of the world’s largest industries exceeding US$ 9 trillion · 47 global fortune companies & 25 of Asia’s top 200 companies are retailers · Dominated by developed countries · US. Music World Entertainment Ltd. Boots Group. Global retail giants such as Wal-Mart. Tesco. Leading Indian Retailers: Bata India Ltd. The rising demand of branded products and increase in purchasing power has lured these companies to enter the market. Crossword. Ebony Retail Holdings Ltd. Ltd.. Germany’s Metro AG and many others are ready to enter the retail markets.. Pantaloon Retail India Ltd. EU & Japan constitute 80% of world retail sales.. Shoppers Stop. Tesco.. Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd. Wal-Mart Stores. Titan Industries. Food Bazaar. . Big Bazaar..
The opening up of the economy only fuelled this globalization. certain bottlenecks as well. coupled with the stringent provisions of the Rent Control Act. the scarcity of space. The next step was the commercial plazas. ushered in the entry big international brands opening their exclusive showrooms. This also explains why the Raheja’s forayed into their retail venture-Shoppers’ Stop. The changing socio economic patterns coupled with the consumption increase led to the emergence of the convenience stores. which became a part of the civic planning. which comprised merely shops offering a variety of goods and services clubbed together. independent. is grabbing attention. There are. owner-managed shops. toilets and maintenance. however. RETAILING IN INDIA The retail industry in India is largely unorganized and predominately consists of small. The origin of retail in India dates back to ancient times when the melas and mandis made their presence felt.RETAILING IN INDIA ORIGIN IN INDIA Although retailing does not enjoy the status of an industry. the sheer size it will develop into. The inconveniences caused by lack of parking place. Retailing is India’s largest industry in terms of contribution to GDP (Gross . act as a dissuasive factor for many players to initiate operations in the main markets.
the per capita retailing space is about 2 sq. with an average selling space of 29. In India. the global management consultancy AT Kearney put retail trade at Rs. However.. 400. The share was 62.7% in 2001. In 2000. Total retail sales area in India was estimated at 328 million sq. 7.1200 million in 2000. .5 billion. In fact. 000 crore by the year 2005-an annual increase of 20%. There are around 5 million retail outlets in India.4189. mt. ft.000 crore. 400. The turnover from private labels by major retail chains was estimated at around Rs. while non. snack centres.800. barber shops) and pushcarts mobile vendors. According to a survey by AT Kearney an overwhelming proportion of the Rs. 039.food sales were worth Rs. per outlet. There are also an unaccounted number of low cost Kiosks (tea stalls. the nonfood retailing sector registered faster year-on-year growth than the food sales sector. Food sales constitute a high proportion of the total retail sales. In 2001.4 sq. which is expected to increase to Rs.2 billion. only Rs. 20. 000 crore segment of the market is organized. mt. 000 crore retail markets are unorganized. The trend to market private labels by a specific retail store is catching on in India as it helps to improve margins. worth approximately Rs. There is no integrated supply chain management outlook in the Indian traditional retail industry. which is quite low in comparison to the developed economies.Domestic Product).
especially in south India and are spreading all over India at a rapid pace.11.0% EMERGENCE OF ORGANISED RETAILING Organized retailing in India represents a small fraction of the total retail market.0% 6. organized retail trade in India was worth Rs.7% 4.0% 17. COMPOSITION OF URBAN OUTLETS RETAIL OUTLET Grocers Cosmetic stores Chemist Food stores General stores Tobacco. In urban India. In 2001. Women are taking up corporate jobs. pan stores Others COMPOSITION 34. However.7 billion.6% 14. space and rentals are providing to be the biggest constraints to the development of large formats in metropolitan cities since retailers are aiming at prime locations. The modern retail formats are showing robust growth as several retail chains have established a base in metropolitan cities. which is adding to the .4% 17. families are experiencing growth in income but dearth of time. 228.3% 6.
foreign retailers can enter the retailing sector only through restricted modes. paan shops and ration shops are the most popular vehicles of retailing. such as haats. instant. lead to the closure of many small businesses and result in large-scale unemployment. At present.family’s income and leading to better lifestyles rising incomes has led to an increased demand for better quality products while lack of time has led to a demand for better quality products while lack of time has led to a demand for convenience and services. provision stores. government has discouraged FDI in the retail sector. Global players in the retail segment have been entering the market for a while now.6 million outlets cater to more than 700 million inhabitants of rural India. Therefore. especially in the metropolitan and large cities in India. Apart from this. There is also a strong trend in favour of one-stop shops like supermarkets and department stores. Players that entered before the easing of restrictions on FDI in retail had to come through different modes. Here. There has been a strong resistance to foreign direct investment (FDI) in retailing from small traders who fears that foreign companies would take away their business. peeth and melas that come up at the same location at regular time intervals. there are periodic or temporary markets. The McKinsey report predicts that FDI will help the retail businesses to grow to US $ 460-470 billion by 2010. such as joint ventures where Indian . Only 3. Rural India continues to be serviced by small retail outlets. ready-to-eat food has been on the rise. The demand for frozen.
The organized retailer should be able to. The chief driver of growth in the retail sector has been the consumer. In interesting to note. It is only natural that the agricultural sector is the biggest employer with its contribution to GDP pegged at 26. cash and carry operations (Giant) and licensing (Marks & Spencer’s). He should then be in a position to allow a trickle down of this advantage to consumers out of his saved costs. CURRENT SCENARIO The Indian population is whooping 1 billion with 75% of the people living in villages and small towns. franchising/local manufacturing/sourcing from small-scale sector (McDonald’s. Pizza Hut). with the spending .partner is an export house (Total Health Care). The main condition for organised retailing is that the retailer should be able to manage and influence the supply chain variables in a commercially viable and sustainable manner. Retail in India’s largest industry after Agriculture with around 20% of the economically active population engaged in it and generation 10% of India’s GDP.7%. The 12 million retail outlets in India are the highest in the world. The growth of the efficient small store culture can be attributed to the 6 million villages distributed across the length and breadth of the country. is an astounding 250 million in size is growing at healthy rate of 7% per annum. that the Urban Population although just 25% of the total. through diversified risks and volume sales command huge concessions on prices from the manufacturers.
In India we have 96 malls. organized parking lots and other public amenities. Karol Bagh and South Extension. DRIVERS OF CHANGE IN RETAILING • • • • • • • Changing demographics and industry structure Expanding computer technology Emphasis on lower costs and prices Emphasis on convenience and service Focus on products Added experimentation Continuing growth of non-store retailing . And by year end the count will shoot up to 158 malls. The Indian consumer’s shopping needs are and traditionally have been fulfilled by Kirana sores. Kiosks. It will cover 34 million sq ft area. covering an area of 21. Droves of middle-class Indians have broken off their love of traditional stand-alone shops that have ACs. 2005). each city developed its own identity and shopping cluster. for instance in Pune there is MG Road. To cater to this. street vendors and high-street shops for consumer durables and luxury goods. Delhi has Connaught Place.increasing at an average of 11% per annum. India will have 358 malls by 2007. Bangalore has Brigade Road and Commercial Street. according to a study by a fashion magazine Image. At present (September 23. The core and the Lower middle have increased their share in the Growth.6 million sq ft.
The role of retailers in the present competitive environment has gained attention from manufacturers because external parties such as market intermediaries and supplying partners are becoming increasingly powerful. This is especially true in the case or new products. Retailers act as gatekeepers who decide on which new products should find their way to the shelves of their stores. and in the value chain in particular. ‘Marketers have to sell a new product several times. they have a strong say in the success of the product or service launched by a business firm. Retailers want of optimize sales within the limited shelf space.’ It is a well-established fact that manufacturers need to sell their products through retail formats that are compatible with their business strategy. then to retailer and finally to the user of the product. Retailers undertake risk in selection of goods to be sold given the following major concerns: . brand image.In today’s competitive environment retailers have redefined their role in general. It is necessary for marketers of consumer products to identify the need and motivations of their partners in the marketing channel. The increasing numbers of product categories followed by multiple brands in each category complicate decision-making for both manufacturers and market intermediaries. first within the company. and market profile in order to ensure a competitive edge. A product manager of household appliances claimed. governed by their individual sales philosophy. As a result.
the challenges for retail managers the world over are increasing-they must take decisions ranging from setting the price of a bag of rice to setting up multimillion dollar stores in malls. McDonald’s. Marks and Spencer. determining what merchandise and services to offer. If such space is occupied by merchandise that is not moving. Retail formats and companies that were unknown three decades ago are now major forces in the economy. The world over retail business is denominated by smaller family run chain stores and regionally targeted stores but gradually more and more markets in the western world are being taken over by billion dollar multinational conglomerates. In the backdrop of globalization. a retailer is required to make a conscious effort to position himself distinctively to face the . training salespeople-these are just a few of the many functions that a retail manager has to perform on a perpetual basis. financing pacts and wide-scale marketing plans. Therefore. Retailing is a dynamic industry-constantly changing due to shifts in the needs of the consumers and the growth of technology. Sears. negotiating with suppliers. such as Wal-Mart. The retailer may have to resort to substantial price reductions in order to get rid of the unsold stock. it will not result in profit. liberalization and highly aware customers. inventory management systems.• Selling space available is relatively fixed and returns maximum profits. The larger retailers have managed to set up huge supply/distribution chains. Selecting target markets.
competition. He thus performs two functions like buying of goods and assembling of goods. Retailers add value to products by making it easier for manufactures to sell and consumers to buy. a sweater or a bar of soap. By bringing multitudes of manufacturers and consumers together at a single point. retailers make it possible for products to be sold. and.The retailer buys a variety of products from the wholesaler or a number of wholesalers. contact and make a purchase from the manufacturer every time you wanted to buy a candy bar. . retailers are a vital part of the business world. business to be done. This is determined to a great extent by the retail mix strategy followed by accompany to sell its products. • • In brief they provide us with following functions: Provides personal services to all. It would be very costly and time consuming for you to locate. Similarly. FUNCTIONS OF RETAILERS As the final link between consumers and manufacturers. consequently. it would be very costly for the manufactures of these products to locate and distribute them to consumers individually. Provides two-way information .
Besides he bears risks on account of fire. . theft. deterioration in the quality and spoilage of goods. He bears the risks in connection with Physical Spoilage of goods and fall in price.He resorts to standardization and grading of goods in such a way that these are accepted by the customers.He makes arrangement for delivery of goods and supply valuable market information to both wholesaler and the consumer. • Extend credit facility . Stock goods for ready supply to buyers.He develops personal contact with the consumers and gives them goods on credit. • Undertake physical movement and storage of goods . • • Create demand by window display etc.• Facilitate standardisation and grading . • • Assembles goods from various sources.The retailer performs storing function by stocking the goods for a consumer.
It actually owns . For example. and automobile equipment. drugs. about 3. a wholesale lumber yard that buys plywood from the producer is a merchant wholesaler. cosmetics.and they handle about 59 percent of wholesale sales.000 specialized food wholesalers compete for the business of restaurants. And several wholesalers may be competing for the same customers. For example. About four out of five wholesaling establishments in the United States are merchant wholesalers . These wholesalers originally developed to . General merchandise wholesalers: These are service wholesalers who carry a wide variety of non-perishable items such as hardware.TYPES OF WHOLESALERS 1. hotels. electrical supplies. plumbing supplies. 2.takes title to the plywood for some period of time before selling to its customers. Merchant wholesalers often specialize by certain types of products or customers and they service relatively small geographic areas. furniture. and cafeterias across the United States. Merchant wholesalers: These wholesalers own the products they sell.
In business products. drugstores. cookbooks.and offer more information and service than other service wholesalers. they cover a wide geographic area and offer more specialized service.and limited-line stores. . 4. electric appliance shops. 3. Now. popular paperbacks. and small department stores. Specialty wholesalers often know a great deal about the final target markets in their channel. they might carry only food. Consumers in different geographic areas are interested in different kinds of books and that affects what books will sell in a particular store. In consumer products. For example. Or a specialty wholesaler might carry only automotive items and sell exclusively to mass-merchandisers.the general stores. Advanced Marketing is the leading wholesale supplier of books to membership warehouse clubs. Single-line (or general-line) wholesalers: These are service wholesalers who carry a narrower line of merchandise than general merchandise wholesalers. and travel books. The company offers hardcover best sellers.serve the early retailers . with their broad line of convenience and shopping products. Specialty wholesalers: These are service wholesalers who carry a very narrow range of products . For example. they serve the single. they serve hardware stores. A consumer products specialty wholesaler might carry only health foods or oriental foods instead of a full line of groceries. basic reference books. or certain types of industrial tools or supplies. wearing apparel.
These wholesalers are mainly involved in selling.but they do not actually handle. Drop-shippers commonly sell products so bulky that additional handling would be expensive and possibly damaging. are too small to be served profitably by a service wholesaler.5. Or the wholesaler may set up a cashand-carry department to supply the small retailer for cash on the counter. So service wholesalers set a minimum charge . Because drop-shippers do not have to handle the products. or other business users . Then the producer ships the order directly to the customers. retailers. They get orders from wholesalers.except that the customer must pay cash. Some retailers.and pass these orders on to producers. These cashand-carry operators are especially common in less-developed nations where very small retailers handle the bulk of retail transactions. The wholesaler can operate at lower cost because the retailers take over many wholesaling functions.or just refuse to grant credit to a small business that may have trouble paying its bills. such as small auto repair shops. stock. 6. Cash-and-carry wholesalers: These wholesalers operate like service wholesalers . . Drop-shippers: These wholesalers own (take title to) the products they sell . And using cash-and-carry outlets may enable the small retailer to stay in business. or deliver them. their operating costs are lower.
don't have a local wholesaler. Inmac's catalogs are printed in six languages and distributed to business customers in the United States. Canada.000 different computer accessories and supplies. potato chips. Truck wholesalers: These wholesalers specialize in delivering products that they stock in their own trucks. Many of these customers . These wholesalers operate almost as fullservice wholesalers . Cooperatives develop in agricultural markets . These wholesalers operate in the hardware. Sweden. Producers' cooperatives. By handling perishable products in general demand . every day . Germany.truck wholesalers may provide almost the same functions as full-service wholesalers. Some truck wholesalers operate 24 hours a day.and deliver an order within hours. and salad dressings . the United Kingdom. and France. Inmac uses a catalog to sell a complete line of 3. Their big advantage is that they deliver perishable products that regular wholesalers prefer not to carry. These wholesalers sell out of catalogs that may be distributed widely to smaller industrial customers or retailers who might not be called on by other middlemen. candy. and general merchandise lines.especially those in smaller towns . For example.7. the Netherlands.with the "profits" going to the cooperative's customer-members.tobacco. jewellery. Mail-order wholesalers. 9. A 7-Eleven store that runs out of potato chips on a busy Friday night doesn't want to be out of stock all weekend! 8. sporting goods.
Most grocers don't want to bother with reordering and maintaining displays of nonfood items (housewares. Some also brand these improved products .where there are many small producers. Examples of such organizations are Sunkist (citrus fruits). For example. 10. .to improve the quality of farm products offered to the market. Successful producers' cooperatives emphasize sorting . Rack jobbers are almost service wholesalers . and books and magazines) because they sell small quantities of so many different kinds of products.except that they usually are paid cash for what is sold or delivered.and they often display them on their own wire racks. and Land O' Lakes Creameries. Sunmaid Raisin Growers Association. Rack jobbers: These wholesalers specialize in nonfood products sold through grocery stores and supermarkets . the California Almond Growers Exchange has captured most of the retail market with its Blue Diamond brand.and then promote the brands. hardware items. Inc.
They communicate the needs and desires of consumers to the manufacturers. They save the manufacturers from the inconvenience and expenses of selling the goods in small lots to a large number of consumers. . They may also arrange for transportation of goods from the wholesalers' godowns to the ultimate consumers.SERVICES RENDERED BY RETAILERS Services provided by the retailers to the wholesalers and manufacturers: They provide selling outlets to wholesalers and manufacturers.
They sort out goods supplied by the wholesalers and keep them in convenient packages for the benefit of the consumers. etc. They may also perform storage function by keeping stocks of goods. They keep the consumers informed about the changing trends in the market about the different varieties of products. They even act as an advisor and guide to the consumers by bringing new products to their notice and educating them about its diverse uses. . They also provide other services to the consumers such as free home delivery. after sale services. Thus they satisfy their demands and provide them a wide choice of goods. Services provided by the retailers to the consumers:They anticipate the needs of consumers and accordingly assemble goods of different varieties. credit facility.
These firms are owned by one person. usually the individual who has the day-to-day responsibility for running the business. Sole proprietorship: . 2. In a partnership.A partnership is a common format in India for carrying out business activities (particularly trading) on a small or medium scale. Partnership: . two or more people share ownership of a single business.The vast majority of small businesses start out as sole proprietorships. .KINDS OF RETAILERS On the basis of ownership- There are four basic legal forms of ownership for retailers: 1.
3. An independent retailer owns one retail unit. and the duration of the LLC is usually determined when the organization papers are filed. but is clearly for a limited period of time or a single project. About 78% of these are small family businesses utilizing only household labour. Independent retail unit: .The Limited Liability Company (LLC) is a relatively new type of hybrid business structure that is now permissible in most states. Limited liability Company (public and private): . whether to hire employees and manage the distributed sales function internally or to reach customers though franchised outlets owned and operated by the local entrepreneurs. joint ventures may be taxed like association of persons. 4. sometimes at maximum marginal rates. It acts like a general partnership. Unless incorporated or established as a firm as evidenced by a deed. . Operational structure defines the key strategic decision of retail entity. Classification of Retailers on the basis of Operational Structure Retail businesses are classified on the basis of their operational and organizational structure. The owners are members. Retail firms can be classified into five heads on the basis of their respective operational structures: 1.The total number of retailers in India is estimated to be over 5 million in 2003. Joint venture: .A joint venture is not well defined in the law.
In this context the detailed example of Kendriya Bhandar in India.A chain retailer operates multiple outlets (store units) under common ownership. Usually this is done in case of department and specially stores and also at times.2.Co-operative outlets are generally owned and managed by co-operative societies. 3. Franchising: . 5. or a service sponsor) and a retail franchisee. a wholesaler. 4. Leased Department or Shop – in – Shop: . Co-operative Outlets: . .Franchising involves a contractual arrangement between a franchiser (which may be a manufacturer. in discount stores. which allows the franchisee to conduct a given form of business under and establishments name and according to a given pattern of business. it usually engages in some level of centralized (or coordinated) purchasing and decision making.It refers to department in a retail store that are rented to an outside party. Retail Chain: .
. offering a variety of merchandise. easy parking and lower property costs. work together to attract customers to their retail area. low rent.In this case. a retailer locates his store in a place where a group o retail outlets. Retailers in a free-standing location: . For example the Haldiram’s outlet on the Delhi-Jaipur highway and the McDonald’s outlet on Delhi Ludhiana highway.associated Locations:. Classification of Retailers on the basis or Retail Location Retailers have also been classified according to their store location. Retailers in a Business.Retailers located at a connected to other retailers depend entirely on their site which is not sore’s drawing power and on the various promotional tools to attract customers. This type of location has several advantages including no competition. Classification of retailers on the basis of location 1. and better visibility from the road. which attracts the customers staying close by. 2. and also compete against each other for the same customers. Retailers can locate their stores in an isolated place and attract the customers to the store on their own strength-such as a small grocery store or paan shop in a colony.
3.Besides the above location-based classification. special or unique assortment good. T Nagar for ready-made garments. retailers are looking for new marketing strategies to attract and retain customers. Bunder treet for stationary products. serious efforts are being made to design new airports facilities in order to incorporate substantial amounts of retail space. Govindappan naicleen street for grocery. Now everything is different. Usman Street for jewellery. most of the cities have specialized markets famous for a particular product category. it suffices was to offer people the convenience of location. Retailers in Specialized Markets: . Poo Kadia for food and vegetables.For quite some time. In India. 4. Previously. Lately. duty-free shops and newsstands dominated the small amount of commercial space provided at airports. service. better than the competitor. and Internet presentations credit cards that buyers can make purchases on credit. particularly traditional independent retailers or chain stores. MARKETING DECISIONS BY RETAILERS Today. For example. Airport Retailing: . we also have in India-retailers who prefer specialized markets. Godown Street is famous for clothes. At . in Chennai.
Others are increasingly satisfied with the sale. One of the most important and most responsible decisions that have to take a retailer associated with the target market. Superstores compete with supermarkets. the manufacturers sell their products wherever possible.many stores you will find quite the same range . department stores. started a real war. Many of them have historically located in the centre of cities. convenience? Yet will identify and describe the target . upgrade their facilities. moving to “small” private brands. What customer oriented shop: high. Many stores cut its own set of services and shops reduced prices. and higher income families. rebuild their stores. Not they need a credit card of a shop. faced with competition from specialized and trading at a discount store. to reduce its dependence on marks on a national scale. and so have to open offices with a large range and variety of goods. low-income? Do buyers diversity. because bank cards now accepted almost universally. experimenting with trading by mail and tele marketing. especially if the amount provided in this service is reduced. on the contrary. All this leads to the fact that many retailers trade today are rethinking their marketing strategies. trying to regain former popularity. depth of assortment. opening their offices in the suburbs.trying to reach maximum volume of sales. Example. where there is always space on the Parking. Supermarkets more money spent on activities sales promotion. medium. People are not going to pay for the same or similar mark more. increased their number.
Trying meeting the needs of a large number of different segments. Some retailers target market determined fairly accurately. TYPES OF RETAIL DISTRIBUTION OUTLETS Small-scale retailers: . lack of professionalism and low purchasing power. means and content of advertising. the price level. small-scale retailing is a very common. It incurs low operating costs and is usually owned and operated by a proprietor. simple and flexible way of distributing the products to the final consumers.are those retailers whose scale of operation is restricted to a small segment of the market and to a narrow range of products. This form of retailing faces the problems of small capital. Many companies do not have a specific target market. Such retailers are very large in number but account for a small portion of the total retail business. But. store environment.market. They generally hold small stocks of the products of regular use. The most important feature is that the small-scale retailers have a direct and personal contact with their customers. they are not satisfying either one of them. . the retailer will not make informed decisions on assortment. Retailers should periodically conduct market studies to monitor the achievement and satisfaction targets consumers.
They save time and efforts of customers in buying articles of ordinary use. .are those retailers who carry on their business by moving from place to place for selling the products and have no fixed business premises. They change their place of business according to their convenience and sales prospects. The hawkers and pedlars. cheap jacks. market traders and street sellers fall under this category. They serve either at the consumer's doorsteps or on busy places frequently visited by the customers. They do not have any particular line of business and carry very little stock of those goods.The two prevalent forms of small scale retailing in India are:• Itinerants or Mobile traders: .
etc. They are generally located in shopping centres. etc.(i) street stalls: .are those retailers which have fixed business premises and operate through unit stores or small shops located in residential areas or markets. paper and pencils.are the small shops on the roadside. They sell a limited variety of products of regular use like stationery. . etc. sweets shop. etc. butter. (iii) general stores or variety stores: .are engaged in purchase and sale of used goods like books. bus stops. For example.are the shops which deal in all types of general consumer goods of regular use like bread. They provide services like goods on credit and home delivery to their customers.are the shops which deal in only one or two special types of goods.They are set up in residential areas or busy markets. etc. chemist shops. (iv) speciality shops: . They mainly include: . street-crossing.• Fixed Shop Retailers: . grocery shops. (ii) dealers of second hand goods: . grocery. clothes. readymade garments shop.
But it involves more of professionalism in selling the products through the use of various promotional techniques like advertising.are those retailers whose scale of operation extends to a large segment of the market and to a wide range of products. Such retailers are not very large in number. They offer a . All its departments are centrally controlled but each forms a complete sales unit in itself and specialises in a particular line of product. publicity. They have a fixed line of business in which they have invested huge capital. This form of retailing involves high operating costs and lacks personal contact with the customers. sales promotion. Large-scale Retailers: . etc.are large scale retail establishments comprising of a number of departments in the same building. The various forms of large scale retailers are:- • Departmental stores: .
Such stores are generally located in central places of big cities so that they can be easily accessible to the customers.wide choice of products to the customers under one roof. Customers select the goods . They sell a wide variety of consumer goods of regular use such as food items. recreation rooms. and post and telegraph offices and so on. They sell goods at lower prices than the departmental stores. groceries. Supermarkets: . They also provide many amenities for customer's convenience such as restaurants. car parking.etc at one place.are large scale retail shops operating at lower costs.
They offer goods at lower prices as they enjoy economies of bulk buying. All of them deal in similar range of products and sell the same standardised products at the same terms and conditions.are a group of retail stores of the same type under one common ownership and centralised management but are located at various locations. . But.themselves without salesman's assistance. they do not provide additional facilities to their customers. It is also called self-service stores. The goods dealt are generally meant for everyday use and are readily acceptable to all kinds of customers. • Multiple Shops or chain stores:.
are those retail trading establishments which receive their orders by mail and deliver the goods by parcel or post express.are the cooperative stores which are owned and operated by the consumers themselves. • Consumer cooperative stores: . The aim . They purchase their requirements of goods in bulk from manufacturers and wholesalers and sell them to its members at lower prices. Orders from customers may be secured by advertising in newspapers or journals or through telephone contacts. But this type of retailing is nonpersonal and without any face-to-face contact between buyers and sellers. However. it helps the consumers to get their requirements at their own place and thus saves their time and expenses. They are incorporated as an association under the cooperative societies act. The membership of such stores is voluntary and capital is subscribed by the members themselves by purchasing shares of a small denomination. The post office is their main channel of distribution.• Mail order houses: .
buyers receive a specified quantity of the product from the machine. These are used to sell prepacked and low cost products of mass consumptions like beverages. This form of retailing can sell goods at places and at times where other types of retailing are not convenient or economical. For example. . • Automatic vending machines: . In return.is a new and complementary form of retailing operated by inserting coins or tokens into the machine by the buyers. tickets.of such cooperative stores is to render service to its members and not to maximise profits. mother dairy sells milk through such vending machines. etc.
Bangalore and Gurgaon (delhi). The company is headquartered in Mumbai with zonal offices at Kolkata.RELEVANT EXAMPLE • Big Bazaar: the Indian wall-mart (organised retailer) Pantaloon retail (India) limited is today organised as one of the pioneers in the business of organised retailing in the country with a turnover of Rs 400 crores. It has 4 .
which forms the large chunk of Indian population. Mumbai. and Delhi. John Miller and Bare. focussing on ‘value for money’ segment. Bangalore. which targets the large and growing upper-middle and middle class of Indian society. Pune. It has been one of the pioneers in organized retailing in India. The brands include Pantaloon. Hyderabad. This segment is very price conscious and always looks out for value for money. 7 big bazaar discount hypermarkets. Kanpur. 6 food bazaar stores with over 6. . Bagpur.ft retail space across Kolkata. Big Bazaar has strong own brand names in its portfolio across product categories.5 lakh sq. Chennai.kinds of stores: 14 pantaloon family stores. Pantaloon successfully launched its discount store chain. Pantaloon retail India limited is the flagship company of the pantaloon group promoted bt Mr. Pantaloon plans to target the upper middle and the middle class segment. Pantaloon has come up with an excellent revenue model. Ahmadabad. Kishore Biyani.
BIBLIOGRAPHY BOOKS: Retailing Management by Swapna Pradhan Retailing Managemnet by Barton A Weitz SITES: www.com www.msn.google.com .