IGNOU Study Notes | BBARL-001 CH-3 (RETAIL FORMAT)

Unit 3:- Retail Formats

Structure

3.0 Objectives
3.1 Introduction
3.2 Theories of Structural Change in Retailing
3.3 Classification of Retail Fomats
   3.3.1 From of Ownership
   3.3.2 Store Strategy Mix
   3.3.3 Non Store operations.
3.4 Modern Retail Formates
3.5 Chain Stores in India
3.6 Let Us Sum Up
3.7 TERMINAL QUESTIONS

3.0   OBJECTIVES

Guys, In this chapter, I describe every points very clearly so that you all understand all the concept very easily.
My main motive is to share my free notes to all the students.
Guys, agar ap exam ki preparation kr rhe ho or agar apko notes banane me problem ho rhi hai to ap mere free notes mese bhi concept padkr notes bana skte hai.
Or apko koi topic samaj nhi aarha ho to app mereko personally message bhi kr skte h, menu bar me mera instagram link h.

3.1   Introduction :-

1. Basic structure of a business conceived, designed and developed to fulfill the needs of end users.

Market Place :-
→ The area where retailers open shops and stocked different products for consumers known as market place .

Traditional retail formats :-
→ Mom and pop stores, mandis etc.

New retail formats :-
→ Malls, shopping centres etc.

3.2  Theories of structural changes in Retailing

→ We known that retailing is a dynamic industry there are 3 theories that help us for the success of a retail industry.

1. The wheel of retailing :-

→ Proposed by Malcom P Macnair at Harvard University.
→ This theory tell us about a launching of a new retail/ store.
→ A new retail store wants more and more customers for their growth.
→ So, they start their business with low-status, low-margin, and low-price.
→ And when these retaiers got success, they try to unhance their store.
→ Like products are upgraded, facilites are improved and new services are added.
→ And then the prices and margins retailers investments.
→ Then these cycle begins means new retailers enter the market with low-status, low-margin and low-prices.
→ Sometimes this theory does not work because not all retailers start their business with low-price and low serices.

2 . The Dialectic Process :-
→ This theory tells us about the blending of two opposing store types into a superior form.

 → Ex- Discount + Departmental = Avg
        store       store       profit                    
       

3. Natural Selection :-

→ In this theory the retailers should understand the tastes and preferences of the customers.
→ Those retailers who successfully adapt to tecnological, social, demographicm economic, political and legal chnages are most likely to grow their business with more profit.
→ And if retailers don't change their behaviour according to customers tastes and preferences their business can't run for longterm period.

3.3  Classification of Retail Fomats :-

→ Retail markets are divided into :
1. Organized Forms
In Organized form retailers can be classified on the basis of.
(i) Ownership
(ii) Store Strategy Mix
(iii) Non Store operations.

I. Form of Ownership ;-
→ Any business can be owned by a sale proprietor, partners, or a group of team/ cooperation.
→ Majority of retail business in India are sale proprietorships and partnerships.
Independent Retailers (Advantages) :-
→ Generally operatesa single outlet
→ Offers personalized service
→ One location and close customer contact.

2. Unorganized Forms.
→ Generally cantrol by/ set up is operated by a single owner.
Ex. Mom and Pop Sotes.

Disadvantages :- → Most retilers fail due to poor management skills.
→ Fail due to insufficient resources.
→ They easily enter in the market without any good skill / vision.
• Retail Chain :- → It involves several locations of same brand.
→In which retailers use the power of brand to sale their goods either services.
→ A franchise retail establishment is one form of retail chain.
• Retail Franchising :- → It is a contractual arrangement between a " franchiser " ( may be a manufacturer, wholesaler, or a sponsor) and a "franchises" or franchise.
→ Retail Franchising is the method of opening a single store, based on the name, brnading, trademark, and products of an existing business.
Ex- McDonald's, KFC, etc.
• Co-operatives :- → Generally called "TEAM" ( Together Everyone Achieve More ).
→ It is a group of independent retailers that are combined to achieved a goal.
→ They includes their financial resources plans, storage, advertising facilites etc.
→ They combine with an aggreement for cantroling for future risk.
Ex- AMUL.

2. Store Strategy Mix :-
(i) Converience Store
→ A well situated shop, stocking a limited range of household goods and groceries.
Ex- A store where milk, eggs, breand etc are sold.

(ii) Convertional Supermarkets :-
→ Large area where different - different types of stores are located.
→ Generally, These stores sales/ carries a small household appliances, groceries items, stationery items, clothes etc.

(iii) Departmental Stores :-
→ A departmental stores generally sells those items which indicate and reduce the problems of family.
→ Sells household items, home furnishing and appliances etc.
→ Ex- Pantaloons, Ebony, shopper stop and westside.

(iv) Speciality Store :-
→ A speciality store is a shop that sells a single line product or services.
→ Like jewelery, beauty and health care etc.
Ex- Tanishq for jewellery, PizzaHut etc.

(v) Hyper Markets :-
→ Hypermarkets is combination of supermarket and department store.
→ A hypermarkets generally whole the family members.
Ex- Pantalonns Retail India Ltd. (PRIL),
→ And they also give big discount.

3. Non-Store Retailing :-
→ In non - store retailing the customers does not go the stores to buy.

(i) In Wome/ TV Home Retailing :-
→ The retailers sales their goods/ services at the door step of every customer.
→ Throught this retailing, the retilers easily demonstrate their goods/ services in a personal products.
Ex- Water filter, etc.
→ In case of TV home shopping customers watch TV adds either channels to buy there products.
EX - Homeshop18, Shop24, ShopCJ.

(ii) Telesales/ Telephone Retailing :-
→ This involves contact between retailer over the phone for the purpose of making a sales purchase.
→ Generall, Call centers use this method for earing money.
EX- Private insurance companies, credit card comparies.

(iii) Catalog Retailing :-
→ The retailers use catalogue for retailing.
→ Customers order the products through mail.
→ Advantages:- → Low cost
→ Low rents
→ Smaller sales staff
→ Absence of Shoplifting
EX- Burlington's Catalogue, Oritlame, Avan etc.

(iv) Direct Response Retailing :-
→ Retilers advertise their product either services.
→ They use magazines, newspapers radio, television offering an address or telephone numbers.
→ So that the customer can contact for any services

(v) Automatic Vending :-
→ Through vending machine retailers provide their goods to the customer expect retailers.
→ When customer give cash transaction with the machine they got there product.


(vi) Eletronic Retailing :-
→ Through the help of internet the retailer provide their products to the doorstep of the customers.
→ We see in amazon and flipkart these both websites are the example of e-railing.

3.4  Modern Retail Formates :-

1. Department Stores :-
→ A department store is large in size approximately 10,000 sq.ft .
→ Selling at leat five different commodity groups.
→ All the stores are seprate to each other, so that customers easily understand his/ her product stores.

2. Variety Stores ;-
→ This format offers a large variety of goods under one roof, including both food and non-food itmes.
→ A variety store is different from departmental store in product range, store environment and prices.

3. Supermarkets / Hypermarkets :-
→ Large area where all the facilites are available.
→ Provide say service that helps customers to save there time.
→ Advantages:-
→ 1. Allow the customer to get involved with the product (see, touch and feel).
→ 2. Increase customers willingness for the product.
→ 3. Supermarkets, superstores, and hypermarkets can be considered in the same family of retail format.

4. Converience Store :-
→ Self service
→ Large area approx 1000 - 3000 sq.ft.
→ Parking facilites also available.
→ Open 7 days a week for long hours.
→ Wide range of products with limited brand choice.
→ Washroom facilites also available.

5. Discount Stores :-
→ Provide products in cheapest amount to the customer.
→ Large area.
→ Customers easily identify there product for pruchasing.

6. Catalog Shops :-
→ Sells a wide selection of fast moving goods at discount prices.
→ Selling medium is catalogue with very little stock on display.

7. Factory Outlet :-
→ In this a consumer easily get a branded product in low prices.
→ Because these products are second - quality / previous season's stock.
→ Some branded products are damage in factory so the retailers buy such product in lwo amount and sell these products in medium price so that both takes profit.

8. Company owed and company operated :-
→ These are the type of retail outlets that are run by the manufacturer only.
→ These retail outlets are scattered across the length and breath of the country.
Ex- bata.

3.5   Chain Stores in India :-

→ A chain store is a group of similar retail shops that set the some type of product/ service.
→ All these shops and branches are under the cantrol of head office.
→ These chains are predeminant with respect to some important product categories such as :-
1. Food
2. Health and Beauty Products
3. Clothing and Foodwear
4. Home furniture and household goods.
5. Durable goods
6. Leisure and Personal goods.
1. Food Chain :- → In food chain retailers provide food and food products to the consumer/ customer from different - different branches.
Ex- Big Bazaar, Food Bazaar etc.
2. Health and Beauty Products Chain :- → In these retailer provide / manufacturer health product and beauty products from different - different branches.
Ex- VLCC etc.
3. Clothing and Footwear Chains :- → In these retailer provide clothes item and foot wear items from different - different branches.
→ The product range is different some are cheap and soem are branded and high price.
→ We see mannequrins to attract the customers for purchasing.
4. Home Furniture and Household Goods Chains :- → In these retailer provide / manufactured home furniture and household goods for the customers from different - different areas.
5. Durable goods chain :- → We know that the branded or foreign products are much durable.
→ Durable products increase the durability of the products for teh customers.
→ Thanks for the government for inviting foreign investments and import polices.

3.6 LET US SUM UP

Guys after understand this chapter you easily make a short note about Retail Scenario.
And i think you should write a short note about this chapter.

3.7 TERMINAL QUESTIONS

Guys whenever our papers last month come, I give you question papers(free).
Abhi ke liye yahi padlo or papers ki tyaari krlo.