1. Types of Retail Outlet Independent(Kirana Store)
Retailers owns one retail unit
Are run by owners & their families
India has the highest no. of independent stores- kirana stores
There are 9 million independent stores in India accounting to 70% of retail outlet
Average size in India is app sq. meter

2. Even if goods in wide brands are limited
Allow customer to buy on credit ,after home delivery in neighborhood
Employ members of extended family
Takes order by Telephone
Ease of entry into the market so many independent

3. Advantages Flexibility in choosing retail formats and locations
Because only on e location is involved , detailed specification can be choked out
Small segment of Customers are catered to

4. f. Free from unions & seniority rules
d. Investment cost for lease , fixture & workers can be hold down apartments, prices,Hrs & other factors are set according to this segment
e. Personal relation is created
f. Free from unions & seniority rules

5. Disadvantages
a. In bargaining with suppliers, independent don’t have much power as they often buy in small quantities.
b. Reordering maybe difficult if min order requirement is not fulfilled.
therefore Independents often form groups
c. Lose on Economies of Scale
d. High cost of transportation ,ordering ,handling cost

6. e. High cost of transpiration ,ordering ,handling cost f
e. High cost of transpiration ,ordering ,handling cost f. Labour intensive –everything is done manually g. No. of very less promotional strategy h. Overdependence on owners i. Little time for long run planning

7. Chain Stores
Multiple outlets, under a common ownership , so the decision making & purchasing is usually centralized
Advantages
Have bargaining power due to the purchase volume
Can take advantages of media
Use technology

8. d. They usually give time to long run planning & may assign the job to someone for it e. Warehousing maybe f. Less dependent on the owner & usually has trained management

9. Disadvantages Difficult to find new locations
Difficult to maintain consistency in terms of prices ,products, assortments
firstly due to difference in manage & second due to difference in local market
c. Investment is higher
d. Managerial control is difficult

10. Franchising
A contractual agreement between a franchisor (a manufacturer, whole seller, service provider) & a retail franchise, which allows the franchise to conduct business under a established name & according to a given pattern of business The franchisee pays a intimal fee & a monthly percentage of gross sales in exchange of exclusive rates to sell goods & service in that area

11. Trademark Franchising
Acquires the identity of a franchisor by agreeing to sell the latters products & or operate under the latters name ,The franchise operates rather autonomously. There are certain operating risks but the franchisee set the store hrs. ,choose a location & determines facilities and displays Business Format Franchising

12. Receive assistance on site location ,quality, control ,accounting system, startup produces, management training & responding to problems besides the right to sell goods & services, Prototype stores ,standardized product lines, cooperative advertising ,foster a level of coordination previously found only a chain

13. Mc Donald's- min investment 300,000$
12.5 % of sales
20 yrs. franchising
Training in hamburger
Unit Franchising – Arrow operate one unit
Master- Grants large territories & sub franchising is allowed
Eg Raymond's ,Titan

14. Development Agreement- Has right to operate multiple units in a territory but no sub franchising
If they operate one outlet ,they are independent & 2 or more they are chains

15. Advantages to Franchisee
Acquire well known name
Relatively small capital investment
Standard operating procedure
Cooperative marketing efforts
Exclusive selling rates.
Purchases may be less costly

16. Disadvantages to Franchisee
Oversaturation if too many in one area
Locked into contracts requiring to purchase from one franchisor
Cancellation clause
Royalty

17. Franchisor
National global presence developed more quickly & will less franchisor
Franchisee have to abide by strict rules
As franchisee owner so they work hard

18. Disadvantages
Harm the overall reputation if they do not adhere to co. standards
Lack of uniformity among outlets adversely affects customer loyalty
Intra franchise competition not desirable
The resale value of individual unit is injured if franchisee performs poor