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Chapter 4

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II.

Store-Based

Retail Strategy

Mix

III.

Service vs.

Goods Retail

Strategy Mix

IV.

Nonstore-Based

Retail Strategy Mix

and Nontraditional

Retailing

I.

Ownership

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I.

Ownership

Independent Chain

Franchise

Lease Department

Vertical Marketing System

Consumer Cooperative

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Flexibility Investment Costs Down

Specialists

Strong Control Image

Consistency

Independence Entrepreneurial Drive

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Lack of Power

No Economies of Scale

Labor Intensive Limited Access to Advertising

Over-dependence on Owner

Limited Resources for Long-runPlanning

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Bargaining Power

Cost Efficiencies

Operating Efficiencies Technical Abilities

Advertising Availability

Defined Management Philosophies

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Time and Resources Spent on Long-runPlanning

Limited Flexibility

Investments High

Managerial Control Difficult

Limited Independence for Personnel

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Product/Trademark

Business Format

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Manufacturer-Retailer

Service Sponsor-Retailer

Wholesaler-Retailer

Cooperative

Voluntary

http://careers.wsj.com/franchise/index.html

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Small Capital Investment

Brand Awareness

Operation Procedures andManagement Skills

Cooperative Marketing

Exclusive Selling Rights Purchasing Costs

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Oversaturation

Franchisor Overselling

Contract Provisions Cancellation Clauses

Short Duration

Gross Sales Based Royalties

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National or Global Presence

Ownership Qualifications Set

Money Obtained onDelivery

Stringent Rules for Franchisees

Franchisee Work Incentive Royalties Continue

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Damaged Reputation

Loss of Customer Loyalty

Intra-franchise Competition Reduced Resale Value

Injured Profitability

Franchisee Desire forIndependence

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Fills Merchandise and Expertise Gaps

Enlarged Market

Reduces Store Costs Lessee Assumes Administration Rol

Percent of Revenues

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Conflicts in Operating Procedures

Damaged Image

Customer Blame

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Well Know Store

Reduced Costs

Economies of Scale

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Inflexibility in Hours

Product Line Restrictions

Raised Rent

Sales Expectations Not Met

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FOOD-ORIENTED RETAILERS

Convenience Store

Conventional Supermarket

Food-Based Superstore

Combined Store

Box (limited-line) Store Warehouse Store

II.

Store-Based

Retail Strategy

Mix

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GENERAL MERCHANDISE RETAILERS

Specialty Store

Variety Store

Traditional Department Store

Full-Line Discount Store

Off-Price Chain

Factory Outlet

Membership Club Flea Market

II.

Store-Based

Retail Strategy

Mix

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III.Service vs.

Goods Retail

Strategy Mix

Rented Goods

Owned Goods

Nongoods

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Direct Marketing

Direct Selling

Vending Machine

World Wide Web

Other Emerging

Retail Formats

IV.Nonstore-Based

Retail Strategy Mix

and Nontraditional

Retailing

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ManufacturerIndependent Manufacturer

Ownership

WholesalerIndependent Wholesaler

Ownership

RetailerIndependent Retailer

Ownership

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Manufacturer

Wholesaler

Retailer

Two Channel Members

Own All Facilities and

Perform All Functions

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Manufacturer

Wholesaler

Retailer

All Production and Distribution

Functions are Performed By

One Channel Member

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Owned by Consumers

Most Popular in Grocery

Retailing

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Ways Retail Institutes Can BeClassified

Retail Ownership Types and

Characteristics of Each

Exertion of Influence in the Channel

of Distribution

By Manufacturers

By Wholesalers By Retailers

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Questions?

Questions?

Questions?