DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer
practice
Institution : Government Polytechnic
for women, Nandigama.
Year/ semester : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Advantages & disadvantages of
Super markets.
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Objectives

On completion of period, you would be able to

explain the

 Advantages of super markets

 Disadvantages of super markets

CCP104.96 2
Recap

We know

 The Meaning of super market

 The Features of super market

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Advantages of Super Markets
 It stocks a variety of items under one roof which
facilitates increase in sales.
 The product display attracts the customer as
motivation to buy the product.
 Labour costs are saved since no salesmen, only
self service
 High margin of profit on non-food items
 Leading to increase the average margin of profit
of the super markets.
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Advantages of Super Markets
 Increased sales
 Elimination of sales services
 Increased efficiency of super markets
 Located at a place where parking space is adequately
available
 Sufficiently large to provide and for the display of wide
varieties of goods
 Reduces shopping time
 Eliminates the queues since salesmen services are not
required
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 All the goods are within the reach of the customers
Advantages of Super Markets
 Charges low prices compared to other
retail business units, because of low
operational costs
 Provides perfect freedom to buyer to
make his selection of goods
 No pressure can be affected by the
salesmen

CCP104.96 6
Disadvantages of Super Markets

 Large premises at a cheaper rates can be had only

in the outskirts of the city
 And normally the super markets are located at long
distances from the main localities
 Goods which require product information, its usage
or maintenance cannot be available from salesmen
 Customer himself should evaluate the uses of the
product before a purchase decision is taken

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Disadvantages of Super Markets

 Since more number and variety of products

are to be made available, it requires huge
investment
 It fails to attract those customers who desire
to purchase goods on credit
 Super markets sell the goods only on cash
basis, hence sales may be relatively low
 In this type of retail business, there is
complete lack of personal contacts with the
customers

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Disadvantages of Super Markets

 Since the goods are kept open in the shelves

no salesmen will be there at different sections
 There is a possibility spoilage, breakage, theft etc.,
 It does not provide personal and free services as
offered by other retail stores, which may result in
dissatisfaction to the customers
 It is suitable only for big cities where literacy is more
and product awareness is high
 Cannot be established in small towns or rural areas

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Summary

Advantages of Super Markets:

1)Large sales 2) saving in costs 3) increased efficiency
4) lower prices 5) freedom to buyer

Disadvantages of Super Markets:

1)Long distance 2) Huge investment 3) No credit facility

4) lack of personal contacts 5) non-availability of
services.

CCP104.96 10
Frequently asked questions

1. What are the advantages of Super Markets?

3. What are the disadvantages of Super Markets?

5. Explain any five advantages and

disadvantages of Super Markets?

CCP104.96 11
Quiz

 Advantages of Super Market is

a) Large sale
b) More choice
c) Both
d) None
2. Disadvantages of Super Market is
a) Huge investment
b) No credit facility
c) Both
d) None

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Assignment

 List the Advantages of Super Markets

 List the Disadvantages of Super Markets

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