Mass Retailers Your Demand is our Command 1 Grop 7
Members
DEEPNA VAZIRANI 011176
GANESH SAWANT 011178
ROHAN NAIK 011179
KALYAN MUKHOPADHYAY 011183
PRAMOD KUMBHAR 011184
2 Group 7
Introduction of retailing
The word ‘retail’ is derived from the French word retailer, meaning ‘to cut a piece off’ or ‘to break bulk’.
Retailing is defined as all the activities involved in selling goods and service to final consumers for their personal or non business use.
Retailing today is at a fascinating, with many challenges.
Retailing may be viewed from multiple perspectives.
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The Need for Distribution Channels
Some questions will be asked such as
Why are all these layers needed in distribution?
Why can’t a producer simply sell to a retailer, who sells to a consumer?
many producers are either too small or too large to handle all the necessary functions themselves to get their products to market.
Ex Leather manufacturer handbag
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TYPES OF CHANNELS
Direct channel
Retailer channel
Wholesaler channel
Agent or Broker channel
Dual channel or Multiple channel
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MASS RETAILERS
Mass Retailers can be defined as company that sells affordably priced products that appeal to a wide variety of consumers.
Mass market retailers are not necessarily known for selling durable, high-quality merchandise or for having exceptional customer service, but they do meet consumers' wants and needs, at reasonable prices.
Ex . Supermarket, drugstore, mass merchandise and warehouse chains, are all considered mass market retailers.
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Retailers v/s mass retailers
• Purchases are huge & sales are also sales them in small quantity.
• Sales are made with reasonable profits .
• Target for Average / Low income consumers.
• Product are mostly sold on Retail Shops.
• Purchases large quantities & sales in big quantity.
• It sells large variety of products at reasonable price.
• Products tend to be out of reach, financially, for the average consumer.
• Product are bought & sold through Shop outlet / E-Media / Malls.
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Types of retailers
Department stores :
very large stores offering a huge assortment of "soft" and "hard goods”
Discount stores :
they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices.
Warehouse stores :
warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves
Variety stores :
these offer extremely low-cost goods, with limited selection
Demographic :
retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).
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Mom-And-Pop :
is a retail outlet that is owned and operated by individuals
Specialty stores :
A typical speciality store gives attention to a particular category and provides high level of service to the customers
General store :
a rural store that supplies the main needs for the local community
Convenience stores :
This store is ideal for emergency and immediate purchases.
Hypermarkets :
provides variety and huge volumes of exclusive merchandise at low margins.
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Supermarkets :
is a self service store consisting mainly of grocery and limited products on non food items.
Malls :
They endow with products, food and entertainment under a roof.
Category killers :
By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers
E-tailers :
The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep
Vending Machines :
This is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products.
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Mass Retailing Business Model Buy in large volume and sell at low prices
Cost advantage is then transformed into lower consumer prices, driving still greater volumes
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Need for Mass Retailer
Mass retailers target a broad, relatively undifferentiated customer base, with the suburban middle-class making up the biggest group
Provision for weekly shopping under one roof, in a wide assortment of products
Amenities such as parking, houses refreshment stands, in some cases home delivery.
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FUNCTIONS OF MASS RETAILERS
Reasonable Discount The good purchased is in bulk so they provide a agreeable discounts to the customers
Bulk Transactions The purchases & Sales are in bulk
Brands & Standards The Products of Mass Retailers have a good brand as well as standard.
Service Basically Mass retailers place y emphasis on customer service.
Operations and organization
Attraction of Mass Retailers includes Brand Awareness, Extra Sales & Large order which are likely to generate. place y emphasis on customer service.
Variety Mass retailers provide wide variety of products to customers at different prices
Manufacturing Sometime Manufacturer struggles to fulfill huge demands of Mass Retailers.
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FUNCTIONS OF MASS RETAILERS
Bargaing with suppliers
Mass retailers basically has good bargainig powers due to bulk purchase
Qualified staff Mass retailers basically appointments well trained staff with good apperance
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Functions of MASS RETAILERS
Reasonable Discounts - The good purchased is in bulk so they provide a agreeable discounts to the customers. As well as the Mass retailers are provided by a good amount of discounts by suppliers.
Example :
Nike selling sport accessories like shoes, jerseys etc. on a discount. This discount will not a able to find in other Retail stores except Nike outlet.
Recent Discount Offered for Nike Shoes.
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Functions of MASS RETAILERS
Bulk Transactions – The Purchases & Sales are in point attraction of bulk. The Mass Retailers try to sell their products in bulk providing a reasonable amount of discounts to customers.
Example : Big Bazar offering good discount on bulk purchases. This aim the sales to the way for bulk sales.
Biz Bazar :
If you buy set of 6 towel it will prices you – Rs.399
While 1 towel costs – Rs.100 . This shows the Bulk
Transactions factor & impacts on prices as well as
Functioning of Big Bazar.
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Function of mass retailing
o Brand and Standard – The attraction of mass retailers is on brand awareness and standard products. This help to maintain a goodwill and build up level of service to the customers.
Example : Mass Retailers using E-Media such as Online shopping has to only support the branded products, So that people can trust & purchase from E-Retailers.
Popular sites like e-bay.com using the name of various brands to
Sell their products.
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Functions of MASS RETAILERS
Service – Most Important functions applied for Mass Retailers is to provide quality service to consumers making difference between them & ordinary retailers.
Example : Adidas products have a warranty period of 1 year to 2 year + Money back offers. This kind of offers can’t be executed by normal retailers. This type of service is expected by Mass Retailers.
Operations and organization - The attraction of a mass retailer’s account is not only extra sales and brand awareness, but the operational economies of scale that large orders are likely to generate.
Example : Many suppliers find they are unable to cope with the additional demands on their manufacturing, logistics, sales, and service departments.
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Function of mass retailers
o Variety – mass retailers provides wide variety of product on different prices to satisfy the customers.
examples – Big bazaar providing a large variety of products to their different customers
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Functions of MASS RETAILERS
Bargaining with suppliers - Mass retailers often receive large discounts because they purchase in volume.They also has the right to claim about poor services or merchandise.
Manufacturing the cost – Mass retailers if demands in change in bar codes, design a particular packaging or a new colour suppliers has to follow the mass retailers on the cost of reducing his profits
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Functions of MASS RETAILERS
oQualified staff - Mass retailers nowadays appoints well qualified staff with good communication skills, attention to detail, a lot of patience, sustained energy in performing the job and most importantly, willing to work long hours, even on weekends and holidays. The retail market doesn't sleep... quite challenging but also fulfilling.
For examples – Hyper city and big bazaar gives opportunity to well qualified persons and various training programs on upselling, cross selling, objection handling, counter sales etiquettes etc...
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Legal System
Challenges for Mass Retailers
Indian Culture
Manufacturing Piracy and Counterfeiting
Legal SystemSupply Chain Bottlenecks Customer Preferences
Availabilty of talent
High Cost of Real EstateManufactures Backclash
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Amway –Case Study
The role of stakeholders
Corporate Social Responsibility
Creating a corporate responsibility strategy social
Meeting global responsibilities by caring for communities
Meeting customers' needs through the Internet29
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Amway Case Study
Combining an offline and online business Developing competitive marketing strategies Focusing a brand product range Maintaining The Competitiveness Of A Global
Brand Successful products - successful solutions Using communications to develop business
opportunities Reaching customers through direct selling
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