1. Managing Retailing, Wholesaling and Logistics
Chapter 16

2. Four Themes
Retailing
Private Labels
Wholesaling
Market Logistics

3. Retailing
Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use.
A retailer or retail store is any business enterprise whose sales volume comes primary from retailing

4. Major Retailer Types Specialty Store Department Store Supermarket
Convenience Store
Discount Store
Off-price retailer
Superstore
Catalog showroom

5. Types of Retailers Level of Service * Self-Service Corporate Retailing
* Self-Selection
* Limited Service
* Full Service
Corporate Retailing
organizations achieve economies of scale, greater purchasing power, wider brand recognition, and better trained employees.
Non-store retailing falls into four major categories:
direct selling; direct marketing; automatic vending and buying services

6. New Model for Success
Two models for department store to be successful:
Strong Retail Brand Approach
in-house brands feature strongly and managers take an active roll in choosing inventory
The Showcase Store
not only sells other people’s brands but often gets the vendors of those brands to take responsibility for stock, staff, and even selling space

7. Retail’s Marketing Decisions
Target Market
Product Assortment
- Feature exclusive national brands that are not available at competing retailers
- Feature mostly private branded merchandise
- Feature blockbuster distinctive merchandise events
- Feature surprise or ever-changing merchandise (Circle K)
- Feature the latest or newest merchandise first
- Offer merchandise customizing service
- Offer a highly targeted assortment

8. Service and Store Atmosphere - Prepurchase services
- Postpurchase Services
Price Decision
- High-markup, lower-volume group (fine specialty stores)
- low-markup, higher-volume group (mass merchandisers and discount stores)

9. Communication Decision
Retailers use a wide range of communication tools to generate traffic and purchases. They place ads, run special sales, issue money-saving coupons, etc.
Location Decision
- General / central Business Districts
- Regional Shopping Centers
- Community Shopping Centers
- Strip Malls (also called Shopping Strips)
- A Location within a Larger Stores

10. Trends in Retailing New Retail Forms and Combinations
Growth of Intertype Competition
Competition Between Store-based and Non-Store Based Retailing
Growth of Giant Retails
Decline of Middle Market Retailers
Growing Investment in Technology
Global Profile of Major Retailers

11. Private Labels
A private label brand (also called reseller, store, house or distributor brand) is one retailers and wholesalers develop.
House Brands
The Private Label Threat

12. Wholesaling
Wholesaling (distributors) includes all the activities involved in selling goods or services to those who buy for resale or business use.
The differentiation from Retailers:
Wholesalers pay less attention to promotion, atmosphere and location.
Wholesalers transaction usually larger; cover a larger trade area
The government deals with wholesalers and retails differently in terms of legal regulation and taxes

13. The Function of Wholesalers
Selling and Promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management service and Counseling

14. Market Logistics
Market Logistics: involves planning the infrastructure to the meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to point of use, to meet customer requirements at a profit.

15. Four Steps of Marketing Logistics Planning
Deciding on the company’s value preposition to its customers.
Deciding on the best channel design and network strategy for reaching the customer
Developing operational excellence in sales forecasting, warehouse management, transportation management, and materials management
Implementing the solution with the best information system, equipment, policies and procedures

16. Integrated Logistics System
involving materials management, material flow system, and physical distribution, aided by IT

17. Market Logistics Sales forecasting Distribution scheduling
Production plans
Finishes-goods inventory decisions
Packaging
In-plant warehousing
Shipping-room processing
Outbound transportation
Field warehousing
Customer delivery and servicing

18. Market Logistics Decisions
How should orders be handled?
Where should stock be located?
How much stock should be held?
How should goods be shipped?

19. Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost

20. Organizational Lessons
Companies should appoint a senior vice president of logistics to be the singles point of contact for all logistical elements
The senior vice president of logistics should hold periodic meetings (weekly, biweekly)
New software and systems are the key to achieving competitively superior logistics performance in the future

21. Group Task Go to Matahari, Centro, Grand Palace, Sogo, Metro
Analyze the differences of each Department Store (e.g. target market, style, price)

22. Thank You