R ETAILING - 1 MKT 405: Distribution Management M Wahidul Islam Summer 2014

Elements of Distribution Management Planning, Forecasting & Budgeting Sales Force Management Product Pricing and Promotion Product Visibility Distribution Channels Channel Information Systems Warehousing and Logistics

W HAT IS R ETAILING ?

Any business entity selling products / services to consumers / customers is “retailing” Goods may be sold In shop In person By mail On the internet Telephone Vending machine Most retail stores are independent of producer How does a customer decide from which retailer to buy?

Price Location Product Selection Special Services Helpful Salespeople Fairness in Dealings How does a customer decide from which retailer to buy?

F UNCTIONS OF R ETAILING / A R ETAILER Helps create utility Time Place Possession Marketing function – acting as a product representative by Disseminating brand / product messages Creating product’s image Value additions Customization Credit facility Home delivery Extended hours Acting as a Salesman Which one is a Retailer’s most important task for the company?

R ETAILER A CTING AS A S ALESMAN A Retailer can influence the purchasing decision of the Customer Direct contact with Customer Assisting to eliminate customer's confusions Identifying alternatives Industry specific roles FMCG products Promotes brand and conveys messages Over the counter medicines Point out alternatives and advise from user feedbacks Low end electric items like electric bulbs, batteries Point out alternatives and advise from user feedbacks Electronic appliances Communicate benefits / pros Direct customers to the product that matches his / her need Rural Markets Stocks limited items Buyers heavily depend on the retailer’s advise Is the Retailer the most powerful channel partner of all?

D IFFERENT V ARIATION OF R ETAILS BATA, TITAN ? AGORA, K-MART ARGOS UK AMAZON Nike BATA Vegetables Walmart Shwapno Coca-cola Right around the corner. For daily needs Convenience Retail Specializes on a specific product types Specialty Shop / Boutique Shop Slightly bigger in size than convenience store Goods usually kept in different sections Departmental Store Bigger in size. Product Stock high Products organized in terms of category Superstore Sells through catalogues with inventory store backing up Catalogue Shop Usually sells additionally (i.e. export-surplus) produced items Sometimes for a cut price Factory Outlet Buying in bulk from the producer and selling at a discounted price Discount Stores Kiosks / Vending Machines Common for Bangladesh Hawkers Smaller set-up of retail function No sales person ?

H YPERMARKET Very big store One retailer brand Stocks almost all products including, Groceries Food Non-food Textiles Garments Footwear Stationary Example: Walmart? Agora?

A SSIGNMENT : I DENTIFY A NEW WAY OF R ETAILING Select a particular industry / product Try to identify the normal distribution channel Propose a new Retail method for the selected product / industry basis your understanding of the target customer profile Max 2 pages No cover page required

R EFERENCES Chapter 10 – Channel Institutions: Retailing Havaldar K. and Cavale V. M. (2011) Sales and Distribution Management – Text and Cases (2 nd Edition) Delhi: Tata McGraw-Hill Education Private Limited

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