Mass Retail PPT

1. Mass RetaileRs
YouR DeManD is ouR CoMManD
1 Grop 7

2. MeMbeRs
 DEEPNA VAZIRANI 011176
 GANESH SAWANT 011178
 ROHAN NAIK 011179
 KALYAN MUKHOPADHYAY 011183
 PRAMOD KUMBHAR 011184
2 Group 7

3. intRoDuCtion of Retailing
 The word ‘retail’ is derived from the French word retailer, meaning ‘to
cut a piece off’ or ‘to break bulk’.
 Retailing is defined as all the activities involved in selling goods and
service to final consumers for their personal or non business use.
 Retailing today is at a fascinating, with many challenges.
 Retailing may be viewed from multiple perspectives.
Rohan NaikMBA CORE 0111793

4. Channel of DistRibution
Manufacturer Wholesaler Retailer Final
consumer
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5. the neeD foR DistRibution
Channels
 Some questions will be asked such as
 Why are all these layers needed in distribution?
 Why can’t a producer simply sell to a retailer, who sells to a consumer?
 many producers are either too small or too large to handle all the
necessary functions themselves to get their products to market.
 Ex Leather manufacturer handbag
5 Rohan NaikMBA CORE 011179

6. tYPes of Channels
 Direct channel
 Retailer channel
 Wholesaler channel
 Agent or Broker channel
 Dual channel or Multiple channel
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7. Mass RetaileRs
 Mass Retailers can be defined as company that sells affordably priced
products that appeal to a wide variety of consumers.
 Mass market retailers are not necessarily known for selling durable, high-
quality merchandise or for having exceptional customer service, but they
do meet consumers' wants and needs, at reasonable prices.
 Ex . Supermarket, drugstore, mass merchandise and warehouse chains,
are all considered mass market retailers.
7 Rohan NaikMBA CORE 011179

8. RetaileRs v/s Mass
RetaileRs
• Purchases are huge & sales are
also sales them in small quantity.
• Sales are made with reasonable
profits .
• Target for Average / Low
income consumers.
• Product are mostly sold on
Retail Shops.
• Purchases large quantities & sales in
big quantity.
• It sells large variety of products at
reasonable price.
• Products tend to be out of reach,
financially, for the average consumer.
• Product are bought & sold through
Shop outlet / E-Media / Malls.
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9. tYPes of Mass
Retail
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10. Types of reTailers
 Department stores :
very large stores offering a huge assortment of "soft" and
"hard goods”
 Discount stores :
they compete mainly on price offers extensive assortment of
merchandise at affordable and cut-rate prices.
 Warehouse stores :
warehouses that offer low-cost, often high-quantity goods piled
on pallets or steel shelves
 Variety stores :
these offer extremely low-cost goods, with limited selection
 Demographic :
retailers that aim at one particular segment (e.g., high-end
retailers focusing on wealthy individuals).
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11.  Mom-And-Pop :
is a retail outlet that is owned and operated by individuals
 Specialty stores :
A typical speciality store gives attention to a particular category
and provides high level of service to the customers
 General store :
a rural store that supplies the main needs for the local
community
 Convenience stores :
This store is ideal for emergency and immediate purchases.
 Hypermarkets :
provides variety and huge volumes of exclusive merchandise at
low margins.
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12.  Supermarkets :
is a self service store consisting mainly of grocery and limited
products on non food items.
 Malls :
They endow with products, food and entertainment under a roof.
 Category killers :
By supplying wide assortment in a single category for lower
prices a retailer can "kill" that category for other retailers
 E-tailers :
The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep
 Vending Machines :
This is an automated piece of equipment wherein customers can
drop the money in the machine and acquire the products.
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13. Mass Retailing Business Model
 Buy in large volume and sell at low prices
 Cost advantage is then transformed into
lower consumer prices, driving still greater
volumes
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14. Need for Mass Retailer
Mass retailers target a broad, relatively
undifferentiated customer base, with the
suburban middle-class making up the biggest
group
Provision for weekly shopping under one roof,
in a wide assortment of products
Amenities such as parking, houses refreshment
stands, in some cases home delivery.
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15. Mass Retailer Value
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16. Retail Product Life Cycle
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17. fUNCTioNs of Mass
reTailers
Reasonable Discount The good purchased is in bulk so they provide a agreeable
discounts to the customers
Bulk Transactions The purchases & Sales are in bulk
Brands & Standards The Products of Mass Retailers have a good brand as well as
standard.
Service Basically Mass retailers place y emphasis on customer service.
Operations and
organization
Attraction of Mass Retailers includes Brand Awareness, Extra
Sales & Large order which are likely to generate.
place y emphasis on customer service.
Variety Mass retailers provide wide variety of products to customers at
different prices
Manufacturing Sometime Manufacturer struggles to fulfill huge demands of
Mass Retailers.
17 GANESH SAWANT MBA CORE 011178

18. fUNCTioNs of Mass
reTailers
Bargaing with suppliers Mass retailers basically has good bargainig powers due to bulk
purchase
Qualified staff Mass retailers basically appointments well trained staff with
good apperance
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19. Functions oF MAss
REtAiLERs
Reasonable Discounts - The good purchased is in bulk so they provide a
agreeable discounts to the customers. As well as the Mass retailers are provided
by a good amount of discounts by suppliers.
Example :
Nike selling sport accessories like shoes, jerseys etc. on a discount. This discount will
not a able to find in other Retail stores except Nike outlet.
Recent Discount Offered for Nike Shoes.
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20. Functions oF MAss
REtAiLERs
 Bulk Transactions – The Purchases & Sales are in point attraction of bulk. The
Mass Retailers try to sell their products in bulk providing a reasonable amount of
discounts to customers.
Example : Big Bazar offering good discount on bulk purchases. This aim the sales
to the way for bulk sales.
Biz Bazar :
If you buy set of 6 towel it will prices you – Rs.399
While 1 towel costs – Rs.100 . This shows the Bulk
Transactions factor & impacts on prices as well as
Functioning of Big Bazar.
20 GANESH SAWANT MBA CORE 011178

21. Function oF MAss REtAiLing
o
Brand and Standard – The attraction of mass retailers is on brand
awareness and standard products. This help to maintain a goodwill and
build up level of service to the customers.
Example : Mass Retailers using E-Media such as Online shopping has to
only support the branded products, So that people can trust & purchase
from E-Retailers.
Popular sites like e-bay.com using the name of various brands to
Sell their products.
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22. `
Functions oF MAss
REtAiLERs
Service – Most Important functions applied for Mass Retailers is to provide
quality service to consumers making difference between them & ordinary
retailers.
Example : Adidas products have a warranty period of 1 year to 2 year +
Money back offers. This kind of offers can’t be executed by normal retailers.
This type of service is expected by Mass Retailers.
Operations and organization - The attraction of a mass retailer’s account is
not only extra sales and brand awareness, but the operational economies of
scale that large orders are likely to generate.
Example : Many suppliers find they are unable to cope with the additional
demands on their manufacturing, logistics, sales, and service departments.
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23. Function oF MAss REtAiLERs
o
Variety – mass retailers provides wide variety of product on different
prices to satisfy the customers.
examples – Big bazaar providing a large variety of products to their
different customers
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24. Functions oF MAss
REtAiLERs
Bargaining with suppliers - Mass retailers often receive large discounts
because they purchase in volume.They also has the right to claim about poor
services or merchandise.
Manufacturing the cost – Mass retailers if demands in change in bar codes,
design a particular packaging or a new colour suppliers has to follow the mass
retailers on the cost of reducing his profits
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25. Functions oF MAss
REtAiLERs
oQualified staff - Mass retailers nowadays appoints well qualified staff with good
communication skills, attention to detail, a lot of patience, sustained energy in
performing the job and most importantly, willing to work long hours, even on weekends
and holidays. The retail market doesn't sleep... quite challenging but also fulfilling.
For examples – Hyper city and big bazaar gives opportunity to well qualified persons
and various training programs on upselling, cross selling, objection handling, counter
sales etiquettes etc...
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26. Advertisements done by Mass
Retailers
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27. Opportunities
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28. Legal System
Challenges for Mass Retailers
Indian
Culture
Manufacturing
Piracy and
Counterfeiting
Legal SystemSupply Chain
Bottlenecks Customer Preferences
Availabilty of
talent
High Cost of Real Estate
Manufactures
Backclash
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GANESHSAWANTMBACORE011178

29. Amway –Case Study
 The role of stakeholders
 Corporate Social Responsibility
 Creating a corporate responsibility strategy social
 Meeting global responsibilities by caring for communities
 Meeting customers' needs through the Internet
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Deepna MBA CORE 011176

30. Amway Case Study
 Combining an offline and online business
 Developing competitive marketing strategies
 Focusing a brand product range
 Maintaining The Competitiveness Of A Global
Brand
 Successful products - successful solutions
 Using communications to develop business
opportunities
 Reaching customers through direct selling
30 Deepna MBA CORE 011176

31. Conclusion
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32. 32 GANESH SAWANT MBA CORE 011178

33. 33 Group 7