Chapter 22

Managing Retailing, Wholesaling and Logistics

Beta / Uber

AKSHAY GUPTA - DEBMALYA DUTTA - PIYUSH RANJAN - SIDRA KAUSAR -

SOUMAVA MUKHERJEE - KAUSHIK GOGOI - MD ASIM EQUBAL - RIPUDAMAN
SINGH CHAUHAN
 Retailing
•Includes all activities in selling goods or services directly to final
consumers for personal,non-business use.

•Retail store : Enterprise whose sales volume primarily comes from

retailing.

•Types of Retailers :
1. Store retailers: Includes department store, Supermarket ,Drug
store etc

2. Non-store retailer : Growing much faster than store retailing due

to e-commerce and m-commerce

3. Corporate Retailing and Franchising : Includes corporate chain

stores, franchises and merchandising conglomerates. E.g.
Subway
 Modern Retail Market Environment
Very dynamic and a number of competitors and competition have
emerged.
• Competitive Retail Market Structure :
1. New Retail form and combinations : To “better satisfy” customer
needs , new retail forms have emerged. E.g. Bookstores feature
coffee shop
2. Growth of Giant Retailers : By leveraging their superior systems,
giant retailers like Walmart are able to deliver goods & services in
immense volumes.

• Role of Technology : Profoundly affect the way retailers conduct

virtually every facet of their business. E.g. Consumer shopping
experience inside the store.
 Marketing decisions in Retailing
We now examine the retailer’s marketing decisions in some key are:

Target
Services
Market
Store
Channels Atmospher
e
Product
Assortmen Store
t Activities
Procureme
nt Experience

Prices Locations
 Key Elements & Explanations

1) Target Market: We need to first define & profile the target market.
2) Channels: Based on the target market analysis and other considerations , we must decide
on
channels to employ to reach their customers. For example : Online branding & marketing.
3) Product Assortment: The retailer’s product assortment must watch the target market’s
shopping expectations in breadth & depth.
4) Procurement: After deciding on product assortment strategy, the retailer must establish
merchandise
sources, policies, & practices.
5) Prices: Prices are key positioning factor and must be in relationship to the target market.
6) Services: Another differentiator is the unerringly reliable customer service.
7) Store Atmosphere: The store atmosphere is the physical layout which gives it an identity
and help improve sales.
8) Store activities: Store activities should provide a wholesome experience of entertainment
and buying to the customers.
9) Communications: Retailers need to be proactive and use every means of communications
to connect with customers.
10) Location: The success of retailers depends a lot on the location parameter.
 WHOLESALING( or Distributing)
includes all the activities in selling
goods and services to retailers or for
business use.
Functions performed by Types of major wholesalers :-
wholesalers :- • Merchant wholesalers
• Selling and Promotion • Full-service wholesalers
• Bulk Breaking • Limited- service wholesalers
• Warehousing • Brokers and Agents
• Transportation • Specialized wholesalers
• Financing • Separate branches of
• Market Information manufacturer’s or retailer’s
• Risk Bearing
 MARKET LOGISTICS
Physical distribution from factory to final destinations
* Four Pillars of logistics :-
1. Order processing 2.Warehousing 3. Inventory 4. Transportation
* Broader categories -
• SCM (Supply chain management)

Conversion
into Dispatch
Procurement finished
goods

• ILS ( integrated logistics system)

Conversion
Information
Procurement into finished Dispatch
technology
goods
A.) Order –processing cost :- It
consist of setup costs and
running costs.

B.) Inventory Cost:- It includes

storage charges, cost of
capital, taxes and insurance,
depreciation and obsolescence.

C.) Optimal Order Qty. :- This

point “Q” is projected by
summing the order processing
cost per unit and inventory
cost per unit vertically into a
total cost – curve and
projecting the lowest point of
total –cost curve on the
horizontal axis .
Thank You!