Managing Retailing,

Wholesaling, and Logistics

Session 16
Subhadip Roy
Retailing

Includes all the activities involved in

selling goods or services directly
to final consumers for personal,
nonbusiness use.
Major Retailer Types

• Specialty store: Tanishq, Arrow

• Department store: Spencer’s, Central
• Supermarket: Food World, More
• Convenience store: Local Kirana
• Discount store: Big Bazaar
• Off-price retailer: Factory Outlets
• Superstore: Magna, Metro Cash and Carry
• Catalog Showroom: Teleshopping
Levels of Retail Service

Self-service

Self-selection

Limited service

Full service
Nonstore Retailing

Direct Direct
selling marketing

Automatic Buying
vending service
Major Types of Corporate
Retail Organizations

• Corporate chain store: Raymonds

• Voluntary chain: ????
• Retailer cooperative: Rythu Bazaar
• Consumer cooperative: Samabayika
• Franchise organization: McDonald’s
• Merchandising conglomerate: Future
Group
Retailers’ Marketing Decisions

Target market

Product assortment

Service/store atmosphere

Price

Communication

Location
Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan
Retailer Services Mix

Prepurchase services

Postpurchase services

Ancillary services
Location Decision
• General business
districts
• Regional shopping
centers
• Community shopping
centers
• Strip malls
• Location within a
larger store
West Edmonton Mall, Canada
• WEM Trivia
• West Edmonton Mall is situated at the
junction of 87th Avenue and 170th
Street in Edmonton, Alberta, Canada.
The complex was built in four phases
opening in 1981, 1983, 1985, 1998.
The Fantasyland Hotel opened in
1986. Total cost to build West
Edmonton Mall was $1.2 billion Cdn.
West Edmonton Mall is listed in the
Guinness Book of World Records for
the "largest shopping centre in the
world" and "world's largest parking
lot". Open 365 days per year.
• nine major attractions
• three theme streets
• over 800 stores and services including
six major department stores
• 21 movie theatres
• 110 eating establishments
• bingo hall, world class casino
• aquariums
• feet)
chapel
• works-of-art
• bungy jumping
• WEM Trivia
• IMAX 3-D Theatre
• Deep Sea Adventure mascot named
Deep Sea Danny
• World Waterpark mascot named
Sharky
• Galaxyland Amusement Park mascot
named Cosmo
• Professor Wem's Adventure Golf
mascot named Professor Wem
• Sea Life Caverns' mascot named
Fisher
• 58 entrances
• 325,000 light fixtures
• over 23,500 employment opportunities
• parking for over 20,000 vehicles
• RV and trailer parking available while
shopping
• total cost $1.2 billion Cdn.
• 493,000 sq. metres (5.3 million sq.
• equivalent to 104 Canadian football
fields (115 American)
Indicators of Sales Effectiveness

Number of people passing by

% who enter store

% of those who buy

Average amount
spent per sale
Trends in Retailing

• New retail forms and combinations

• Growth of intertype competition
• Competition between store-based and non-
store-based retailing
• Growth of giant retailers
• Decline of middle market retailers
• Growing investment in technology
• Global presence of major retailers
Private Labels
Wholesaling Functions

• Selling and promoting • Transportation

• Buying and • Financing
assortment building • Risk bearing
• Bulk breaking • Market information
• Warehousing • Management services
and counseling
Major Wholesaler Types
Merchant

Full-service

Limited-service

Brokers and agents

Manufacturers

Specialized
Wholesalers’ Marketing Decisions

Target market

Product assortment

Price

Promotion

Place
Market Logistics Planning
• Deciding on the company’s value
proposition to its customers
• Deciding on the best channel design and
network strategy
• Developing operational excellence
• Implementing the solution
Market Logistics Decisions
• How should orders be
handled?
• Where should stock
be located?
• How much stock
should be held?
• How should goods be
shipped?
Determining Optimal Order Quantity
Transportation Factors
• Speed
• Frequency
• Dependability
• Capability
• Availability
• Traceability
• Cost
Thank You