Copyright © 2007 Pearson Education Canada 13-1 Wholesaling The buying or handling of merchandise and subsequently reselling it to organizational users, other wholesalers, and retailers.

Copyright © 2007 Pearson Education Canada 13-2 Wholesaling Functions Manufacturer Wholesaler Retailer Consumer Market Coverage Holding Inventory Order Processing Market Intelligence Sales Support Assortment Breaking Bulk

Copyright © 2007 Pearson Education Canada 13-3 Types of Wholesalers 1.Manufacturer Wholesalers 2.Merchant Wholesalers 3.Agents and Brokers 4.Commission Merchants 5.Auction Companies

Copyright © 2007 Pearson Education Canada 13-4 Retailing Activities related to the sale of goods to final consumers, for personal, family, and household use. Sport Chek Sears Old Navy

Copyright © 2007 Pearson Education Canada 13-5 Retailing Functions Manufacturer Wholesaler Retailer Consumer Sorting Inventory Marketing Merchandising Credit and Services

Copyright © 2007 Pearson Education Canada 13-6 Retail by Ownership Chains Independents Franchises Operate 4 or more stores in same business Operate 1 to 3 stores Operate stores based on contractual agreement

Copyright © 2007 Pearson Education Canada 13-7 Franchising A retailer operating in an identical manner in all locations. Piggybacking and co-branding are now popular among franchise retailers. Pizza Hut, KFC and Taco Bell under one roof.

Copyright © 2007 Pearson Education Canada 13-8 Retail by Product Strategy Stores are classified by products offered for sale. Specialty Limited Line “Big Box” General Merch. Old Navy, Bluenotes Aldo, La Senza Staples Business Depot Sears, Bay

Copyright © 2007 Pearson Education Canada 13-9 Retail by Service Strategy Stores are classified by the extent of services offered. Fill Serve Limited Serve Self Serve Harry Rosen, Sears Wal-Mart Costco

Copyright © 2007 Pearson Education Canada Non-Store Retailing  Vending and Automated Merchandising  Direct Selling  Direct Home Retailing  Catalogue Marketing  Temporary Displays and Kiosks

Copyright © 2007 Pearson Education Canada E-Tailing Time-pressed consumers are looking at convenient alternatives. 1.Only 1% of retail sales occur online but there is significant potential million Canadian households have bought online. 3.Customer service and fast delivery are important with online marketing.

Copyright © 2007 Pearson Education Canada Elements of Retail Planning The retail marketing mix involves decisions in six key areas. 1.Location 2.Brand Identity 3.Atmosphere 4.Merchandise Assortment 5.Merchandise Control 6.Marketing Communications Strategy

Copyright © 2007 Pearson Education Canada Location Location! Central Business Area Suburban mall Outlet Mall Mega-Mall Power Mall Lifestyle Mall Strip mall Standalone Store

Copyright © 2007 Pearson Education Canada Brand Identity Branding strategies influence consumers’ perceptions of a store. Harry Rosen Quality, contemporary fashion and personal service (a cut above). La Senza Racy and exotic (male view); pretty and comfortable (female view).

Copyright © 2007 Pearson Education Canada Brand Image The bedroom atmosphere of La Senza stores helps create a desired image.

Copyright © 2007 Pearson Education Canada Atmosphere The physical characteristics of the store also influence consumers’ perceptions. Appearance (inside/outside) Store Layout Displays Appearance (inside/outside) Store Layout Displays Wal-Mart has bins, sale signs and industrial style shelves. La Senza has an elegant bedroom-style environment

Copyright © 2007 Pearson Education Canada Display Concepts To differentiate and improve the shopping experience, new concepts are tried.  Specialty boutiques within stores  Demonstration centres  Minimalist approach to displays

Copyright © 2007 Pearson Education Canada Merchandise Assortment The assortment of merchandise is described as breadth of selection and depth of selection. Breadth Depth The number of classifications of goods. The number of brands and styles in each classification.

Copyright © 2007 Pearson Education Canada Product Mix Strategy Retailers opt for consistency of product but some add unrelated product to the mix. 1.Assortment Consistency 2.Scrambled Merchandising 3.Stock Balance

Copyright © 2007 Pearson Education Canada Merchandise Control Inventory turnover is a key measure of retail success and control. Inventory Turnover Sales Average Inventory = If sales are $1,000,000 and the average inventory is $200,000, the inventory turnover would be 5.

Copyright © 2007 Pearson Education Canada Marketing Communications Communications is needed to attract attention and drive customers to the stores. Promote store much like a brand Think brand but act retail Get emotional with the message Need effective visual merchandising in store. Canadian Tire: “It all starts here.”