To

make key strategic decision Whether to hire employees and manage the distributed sales function internally or to reach customers through franchised outlets owned and operated by local entrepreneurs Various options in terms of investments, cost savings related to economics of scale, potential demand enhancing and reputation benefits

 Owns

one retail unit Highest number of outlets 2.20 million independent retailers 40% of total retail store sales Macro level non-industry based economic growth Micro level low capital and licensing requirements

Advantage Flexibility location as preferred product assortments workers leases niche goods/services control over their strategies decision making one geographic market, so consistency bargaining with suppliers bypass suppliers Disadvantage Maintaining inventory transportation no bulk orders handling costs computerization expensive for small retailers high cost of TV ads

 Multiple

outlets 9000 retail chains in 65000 places in US Generate 75% sales from department stores, discount department stores, grocery stores Stationery , furniture, beauty salon less than 50% sales

Advantage Bargaining power (Volume purchase) new products as introduced proper service buying directly from manufacturers bypass wholesalers centralized purchasing uniforms (employees) price discount Disadvantage Additional branch consistent prices, promotions products difficult to maintain investments high lack of communication time delays problem with employees

 Contractual

Arrangement( Manufacturer, wholesaler or service sponsor) which allows the franchise to conduct a given form of business under an establishment name and according to a given pattern of business Franchisee pays initial fee and monthly percentage of gross sales

Product / Trademark based Franchisers identities name They run autonomously from franchisor but stick to rules like displays, working hours, location etc Business format Interactive relationship Receive assistance on site location, quality control, accounting systems, startup practices, management training and responding to problems Example : McDonald

 Retail

franchising began in 1851, singer sewing machine first franchised dealers, popular in 1900s Then auto & truck dealers still provide more than one-half of all US retail franchise sales

 National

or global presence can be developed

quickly money obtained when delivered get greater incentives Franchisers will receive royalties

 Firms

reputation gets harm if they do not adhere to company standards Ineffective franchised units directly injure their franchisers profitability

It refers to department in retail store that are rented to an outside party Small business Shopping centre food courts E-Zone (Home theatre system) for different brands Merchandise displays, reordering of items, inventory will be an advantage Conflict with using the operating procedures with the leased departments and customer may blame the stores

 Managed

by cooperative societies It is called as Kendriya Bhandar Able to maintain competitive prices Margin kept low Better quality control, pre-testing of all grocery items Both Govt. & private employed persons

(1) Free standing retailers Which is not connected to other retailers No competition, low-rent, better visibility, low property costs Neighbourhood stores serving small locality Highway stores roadside customers Attracting customers with good parking facilities , multi-cuisine restaurants, fast food restaurants, clean washrooms

Locates its store in a place where a group of retail outlets offering a variety of merchandise work together to attract customers Unplanned business districts two or more retailers locate their stores together all facilities with variety of goods, services and prices, but limitations like congestion, lack of space for large outlets, parking problems Planned shopping centres unified commercial establishments, centrally owned or managed, designed and operated as a unit surrounded by parking facilities

 Traditional

independent retailers or specialized chain stores Chennai Godown street is famous for clothes, Bunder street for stationery products, Usman road for jewellery, T-nagar for readymade garments, poo kadai for flowers Limited infrastructure related costs

 Duty

free shops and news-stands Parents who forgot to buy something for kids Banks, currency exchange, telecommunication, restaurants

 Departmental

For e.g:

stores

Ebony, Globus, Lifestyle, Pantaloon, Shoppers Stop, and Westside

Discount

For e.g.:

Stores
S Kumars S-MART Discount Chain, Margin Free Market, and Subhiksha

Specialty

For e.g.: Footware - Speciality Store

Stores

Hypermarkets

Khadder- Khadi Specialty and Titan FoodWorld

For e.g. : Pantaloons Big Bazaar ,Giant, and

Store retailers They operate from fixed point-of-sale locations to attract a high volume of walk-in customers Retail stores have extensive displays of merchandise and use mass-media advertising They sell products or services to the customers for personal, household or official purposes

 These

retailers approach their customers and market their merchandise through electronic media internet direct selling stalls in exhibitions, trade fairs, periodic markets vending machines

Factors for the success of catalogue retailing:

- Convenience: customers can shop when it is convenient for them in accordance to their schedule

- Time saving: one save resources on account of time and travelling cost and parking problems
- Information: relevant product information is available in detail

- No time limits: no undue pressure to buy unlike as in retail store shopping

Person-to-person selling:
- Party-plan or group presentations

- Multilevel network

Television shopping is retail format where existing and prospective customers watch a TV programme demonstrating a product and then place an order for the same by telephone, e-mail or Internet Three types of television shopping: cable channels meant for shopping, infomercials, and direct-response advertising shown on TV (For example: Asian Sky Shop, TSN, TVC, TSNM)

form of non-store retailing where products or services are placed in a machine and are dispensed to customers when they deposit cash or use plastic money (credit or debit card) Vending machines vending machines offer consumers greater convenience 24 hours a day, and have replaced many services formally requiring a human interface