Retailing and Wholesaling

Presented To: Mr. Mohsin Ali Khan

Presented By : Group # 6
M.B.A. 1st Mor.

Department of Management Sciences

 Group Members
• Muhammad Waseem
• Uzma Batool
• Saba Batool
• Israr Ahmad
• Muhammad Waseem
Retailing and Wholesaling
Retailing
All activities involved in selling goods or
services directly to final consumers for their
personal, nonbusiness use.

Retailer
A business whose sales come primarily from
retailing.
 Types of Retailers

Amount of Service
Self-Service, Limited-Service and
Full-Service Retailers
Product Line
Length and Breadth of the Product
Assortment
Relative Prices
Pricing Structure that is Used
by the Retailer

Retail Organizations
Independent, Corporate, or Contractual
Ownership Organization
 Classification By
Product Line
Store Type Length and Breadth of Product
Assortment
Specialty Stores Narrow Product Line, Deep Assortment

Wide Variety of Product Lines i.e. Clothing,

Department Stores Home Furnishings, & Household Items
Wide Variety of Food, Laundry, & Household
Supermarkets Products
Limited Line of High-Turnover Convenience
Convenience Stores Goods
Large Assortment of Routinely Purchased
Superstores Food & Nonfood Products, Plus Services
Giant Specialty Store that Carries a Very
Category Killers Deep Assortment of a Particular Line
 Classification of
Stores By Price

• Discount Store
A retail institution that
sells standard
merchandise at low
prices by accepting
low margins and
selling at high volume.
 Classification of
Stores By Price

• Off-Price Retailer
A retailer that buys at
less than regular
wholesale prices and
sells at less than
retail.
 Classification of
Stores By Price

• Factory Outlet
An off-price retailing
operation that is
owned and operated
by a manufacturing
and that normally
caries the
manufacturer’s
surplus discounted or
irregular goods.
 Classification of
Stores By Price

• Warehouse Club
An off-price retailer
that sells a limited
selection of brand
name grocery items,
appliances, clothing at
deep discount to
members who pay
annual membership
fees.
 Organizational Approach

• Chain Store
Two or more outlets that are owned and controlled in
common, have central buying and merchandising,
and sell similar lines of merchandise.
• Franchise
A contractual association between a manufacturer,
wholesaler, or service organization (a franchiser) and
independent businesspeople (franchisees) who buy
the right to own and operate one or more units in the
franchise system.
Retailer & Marketing Decision

Retailer Marketing
Mix
Retailer Strategy
Product and
Service
•Target Market
Assortment

•Retail Store
Prices
Positioning

Promotion

Place (Location)
Target Market & Positioning
Decision
Retailers first must define their target markets and
then decide how they will position themselves in
these markets. Should the store focus on upscale,
midscale, or downscale shoppers? Do target
shoppers want variety depth of assortment,
convenience, or low prices?
 Retailer’s Product Assortment and
Services Decisions
Product Assortment Decisions
Width and Depth of Assortment
• • •

Quality of Products
Product Differentiation Strategies

Services Mix
Key Tool of Nonprice Competition
for Setting One Store Apart From
Another.

Store’s Atmosphere
Physical Layout
• •

“Feel” That Suits the Target Market

and Moves Customers to Buy
Price Decisions
Target Market
Product & Services
Assortment
Competition
Promotion Decisions
Using Advertising, Personal
Selling, Sales Promotion and
Public Relations to Reach
Customers.
 Place Decisions
Shopping Centers,
Central Business
Districts, Power Centers,
or Outlet Malls. Location!
The Future of Retailing
New Retail Forms and Shortening
Retail Lifecycles
Growth of Nonstore Retailing
Retailer Convergence
Rise of Megaretailers
Growing Importance of
Retail Technology
Global Expansion of Major Retailers
Retail Stores as “Communities”
 What is Wholesaling?

• All the activities involved in selling

goods and services to those buying
for resale or business use.

• Wholesaler - those firms engaged

primarily in wholesaling activity.
Why are Wholesalers Used?
Wholesalers are Often Better at Performing One
or More of the Following Channel Functions:

Management Selling and

Services & Advice Promoting

Wholesaler
Market Buying and
Information Assortment Building

Risk Bearing
Functions Bulk Breaking

Financing Warehousing

Transporting
 Types of Wholesalers

Merchant
Brokers/ Agents
Wholesaler
They Don’t Take Title to
Independently Owned the Goods, and They
Business that Takes Perform Only a Few
Title to the Functions.
Merchandise
it Handles.
Manufacturers’
Sales Branches
and Offices
Wholesaling by Sellers
or Buyers Themselves
Rather Than Through
Independent
Wholesalers.
 Wholesaler Marketing Decisions

Wholesaler Marketing
Mix
Wholesaler Strategy Product and
Service
Target Market Assortment

Retail Store Prices

Positioning

Promotion

Place (Location)
 Trends in Wholesaling
Wholesaling Developments to Consider

Must Learn to Compete Effectively Over

Wider and More Diverse Areas
Increasing Consolidations Will Reduce
Number of Wholesalers

Surviving Wholesalers Will Grow Larger

Through Acquisitions and Mergers

Vertical Integration Will Remain Strong

Global Expansion
 Organizations
A group of one or more people who work together to
achieve group goals.

Types
• Profit and Non Profit
Pepsi & Co. P.I.A. NUML, Prisons, Hospitals

• Manufacturing and Services

General Motors, Pakistan Post, PTCL

• Public and Private

Parks, Museums Ahmad Fine, TIENS
 Places

Cities, states, regions, and nations compete to

attract tourists, factories, company. Place
marketers include economic development
specialists, real estate agents, commercial
banks, local business associations, and
advertising and public relations agencies.
 Persons

Persons are the people who effect the

organization.

CEO, Managers, Customers