India is a country dominated by local and traditional retailers and business models particular to Indian context are bound to emerge. This section discusses some of the retail business models that have arisen and which are peculiar to the Indian landscape. These are as:
Figure: 1.3
Classification of Retailer
(Source: ICFAI Text Book on Retail Management)
I. STORE BASED RETAILERS
These operate at fixed point of sale locations. Their stores are located and designed to attract a high volume of walk in customers. In general, store based retailers offer a wide variety of merchandise and use mass media advertising to attract customers. These can be further classified on the basis of various parameters like:
a. Ownership
b. Strategy mix
c. Service
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The lessee is accountable for all activities of the leased department. iii. Adds variety to the merchandise offered by the store. iv. No cannibalizing of sales of existing product lines of the stores. iv. Reduced cost of establishment.
v. Increased customer traffic.
5) Vertical Marketing system i A distribution system in which the producers, wholesalers, & retailers act in a unified manner to facilitate the smooth flow of goods & services to the end user. ii One channel member owns the other or has contracts with them.
6) Consumer Cooperatives
i. Retail operations owned & managed by its customer members. ii. A group of customers invest in the retail operations in return of stock certificates, which entitle them to a share in the profits of the retail store.
b. STRATEGY,MIX BASED RETAILERS Depending on the strategic mix retailers adopt, they can be classified into two groups:
A. Food oriented Retailers,
1) Convenience stores,
i. Small stores located near residential areas. ii. Open long hours, seven days a week, & carry a variety of products with limited assortment of merchandise. iii. Operate in 3000-8000 sq. area.
2) Conventional supermarkets, i Similar to departmental
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ii Maintains identity of both food store & drug store iii One stop shopping experience. iv Operate in 30,000,100,000 sq. area.
5) Box (Limited line) store, i Food based discount store that concentrates on a small selection of goods. ii Limited, shopping hours, service & stocks. iii Refrigerated perishable goods are not available. iv Prices are displayed on the shelf/overhead signs. Priced 20 to 30% below market price. v Self-service.
6) Warehouse stores, i Discount food retailers, offer low price deals. ii Average size of 100,000 sq. ft. iii Merchandise is displayed in cut boxes or shipping pallets & services are limited. iv Lack consistency of products available as they warehouse retailers buy goods only when a manufacturer or a wholesaler offers deep price or quantity discount.
B. General Merchandise retailers,
1) Variety store,
i. Offer deep assortment of inexpensive & popular goods like stationary, gift items, woman's accessories, house wares etc. ii. Also called as 5 and 10, cent stores.
2) Department store, i Large retail units offering wide variety and a deep assortment of goods & services. ii Separate depts. for separate types of
The difference in price might deter the average shopper. However, I know that many sales do not guarantee a great buy. Sale price often fluctuate depending on the season and customers shopping patterns. In Kroger the items are arrange neatly on the shelves with each item label with the clear stated coupon right below the regular price. When you first walk through the door of Kroger you see the fresh produce and freshly cut
- working with working staff to set up strategies, models and frameworks. - Setting client administration measures & assuring that the current standards satisfy the customers & helps retaining them. • Coordinating with the workers themselves can help effectively in setting appropriate models for the procedures & systems because they are the ones who interact directly with raw materials and producing the products, so they would know better if anything in manufacturing needs improvement or so. • It is important to satisfy the current customers in different possible ways in order to retain them which eventually leads in attracting more customers as well.
After compared Walmart, Publix, and Kroger, I found most of those things were expensive in Kroger and Publix, but if the things made by their own companies, the price will be much cheaper. For example, extra virgin olive oil, if I buy this stuff which is belonged Publix, it
In Attachment 8, this chart shows the Hi-Value Supermarket shopper interview results the studies that were conducted. This breaks down all 3 stores and provides more in-depth knowledge of their superior characteristics. In Attachment 9, it shows the financial situation which breaks down the 5%, 7%, and 10% possible price reductions. It is easier to compare the numbers in the different categories. Gross profit margin and breakeven sales numbers were conducted so
Case Study #1 Andrew Gonzalez Saint Leo University MGT 417 Case Study #1 The Meridian water pump case is about a small company that produces small water pumps. There was a meeting held within the department managers that pertained to making medium size pumps for the next 6months. Arguments were recorded between the marketing and sales manager, production manager, HR manager and finance manager. It seems to me that all were pointing the finger at one another on why things couldn’t get done and each department was slowing the other down by not efficiently running their departments.
The large anchor stores are usually strategically located at the end points of the shopping mall. The placement of the stores are easily accessible and offer ample parking. Internally, the floor plan is tactically set up to draw the attention the consumer. The mall entrance for both stores opens up to cosmetics, perfume, shoes and ladies apparel. These areas generally account for more than 40% of the store sales.
Purpose To be an innovative grocery store by providing friendly service, clean stores, quality merchandise, and speedy check-out lanes throughout our locations. Vision To provide excellent customer service that exceeds expectations while building long-term relationships with customers.
This changed when they decided to announce to the public that the agent's services were holding a cable on behalf of the business. Because the client relies on this particular assumption, they are also based on the existence of an agency relationship. This would make the principal, the store, entitled to recover damages from the customer caused by the agent.
Introduction As the world we live in today continues to flatten, new channels begin to emerge across the globe. The technological age that we live in today has forever changed they way retailing functions, creating new opportunities for international success. However, the thought of internationalization can be daunting for many retailers, especially due the large history of retailers who have expanded internationally and then failed. Although this type of expansion can be overwhelming, if done properly, the new retail format can generate a great deal of success for the retailer.
Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.
How many of us have gone to Wal-Mart to find only 6 registers open out of at 30? In contrast, Publix has the majority of the registers open which gives customers a speedy checkout service. These characteristics above do not pillar the amount of satisfaction a consumer will receive at Publix over the competition. The type of consumer products Publix sells is convenience products. I chose convenience products because Publix offers goods and services that consumers can purchase with minimal effort.
Considering using more technology inside Trader Joe’s would also speed up business inside Trader Joe’s. 5 – Conclusion This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious.
The study will apply various theoretical models in order to highlight the overall performance of Eataly, evaluating the factors that play an important role for the success of Eataly. Eataly is an Italian market being the largest all around the world; it offers variety of food and beverages, restaurants, retail items, bakery as well as cooling school. The study will provide an overview of Eataly, and the challenges they faced while operating within the market place. Retail industry presents relation between producers and consumers, thus, it allows the industrial firm reaching the market successfully and develop two way information transfer and services. according to Sebastiani & Montagnini (2014), among distributors, the grocery stores covers
ALDI specializes on its own labeled products brand, creates high quality products with fair features, designs and packaging, ALDI also focuses on the variety of products that are mostly needed in each and every household, so ALDI does not only offer food but also offers electronic products, clothes, household goods, health and beauty products. By creating ALDI’s exclusive own brands, ALDI can minimize the costs on the products itself, therefore listing low prices for customers; Also ALDI is fortunate enough for its high purchasing power from suppliers, therefore ALDI can bargain the best prices so it can keep low costs and low prices; Another several ways ALDI is minimizing costs is for example: cart renting, as well as ALDI’s re-usable bags to reduce costs and insure low prices and saving for customers. ALDI took into consideration the importance of locating its stores in places convenient for people and also accessible, also taking into consideration public transportation links and parking spaces available, creating online channels for customers to locate their nearest ALDI store; Yet unlike other supermarket ALDI is not opened for 24H, ALDI’s opening hours are at the times where people are most likely to go shopping to minimize cost. As mentioned before prices aren’t something ALDI can compromise on and one of ALDI’s strategies is minimizing costs for competitive
This industry will be faced challenged when the location is not easy to be reached and the population of the areas are not much as expected. For example, the Aeon supermarket at Mid Valley Megamall Kuala Lumpur, the sales of this location is guaranteed as the population daily at Mid Valley Megamall in 120,000 peoples approximately (malaysiandigest, 2014). Other than that, most of the supermarket are operates or leasing in a popular shopping malls. This is because peoples nowadays are not going to supermarket on usual day or without purposes. For instance, Giant hypermarket at Plaza Sungei Wang is a good example.