Introduction to B2B

Retailing, Wholesaling and LogisticsSession 12-13All the activities required for selling goods or services directly to final consumers for personal, non-business use.

Retail store is any business enterprise whose sales volume comes primarily from retailing

How? Where?RetailingFormat based categorizationSpecialty StoreDepartment StoreSupermarketConvenience StoreDrug StoreDiscount StoreOff-price RetailerSuperstoreCatalog showroom

Service based categorizationSelf-serviceSelf-selectionLimited ServiceFull service

Types of Retailers Store Retailers

Direct selling

Direct Marketing

Automatic Vending

Buying ServiceTypes of Retailers Non-Store RetailersCorporate RetailingCorporate Chain StoresVoluntary ChainRetailer cooperativeThe Consumer Protection & Guidance Society Margin FreeConsumer cooperativeFranchise organizationMerchandising conglomerate

Franchisee BusinessTrademark and licensingStart-up costs and licensing feesStandard system of doing businessLoyalty vs IndependenceTypes of Retailers Corporate Retailing and FranchisingNew Retail FormsInter-type competitionCompetition between Store and Non-StoreGrowth of Organized RetailRole of TechnologyGlobalizationGrowth of Shopper MarketingNew Developments in RetailTarget MarketCommunication ChannelsProduct AssortmentBreadth and DepthExclusive National BrandsPrivate LabelBlockbuster Distinctive MerchandiseLatest or Newest MerchandiseEver-changingCustomizationHighly Targeted and Niche

Marketing Decisions for RetailersProcurementMerchandising SourcesSpecialist buyersDemand ForecastingMerchandise selectionSpace allocationDisplayInventory Management EoQTechnology UsageProfitability Direct Product ProfitabilityHandlingStorageSalesMarketing Decisions for RetailersPricesTurn vs EarnEDLP vs High-Low Sale Pricing

ServicesPre-purchasePost-purchaseAncillary Service

CommunicationsAdsSpecial SalesShopper-reward programsSamplingPoint of Sale MaterialMarketing Decisions for RetailersStore Atmosphere and ExperiencesAttract and KeepReach and TouchDont make them huntAvoid overdesignMen Dont AskWomen Need SpaceMake Kids WelcomeEasy Check-outMarketing Decisions for RetailersLocationCentral Business DistrictRegional Shopping CentersCommunity Shopping CentersShopping stripsWithin a large storeStand alone stores

Evaluating a LocationConsumer shopping habitTraffic vs RentCompetitionCatchment Area

A brand that retailers and wholesalers develop. Also referred as reseller, store, house or distributor brand

RoleIncrease profitabilityAct as differentiatorIncreased bargaining power

AdvantagesGreater visibilityLower costNew categories Consumer InsightPrivate LabelRoleSelling and PromotingBuying and assortment buildingBulk breakingWarehousingTransportationFinancingRisk bearingMarket InformationManagement services and counselingIncreasing pressureClear agreementUnderstand manufacturers requirementMeet targets and paybackOffer Value Added ServicesWholesalingDifference with retailersNo direct contact with consumersLess attention to promotion and experienceLarger transaction sizeDifference in legal regulations

Types of WholesalersMerchantFull-serviceLimited-serviceBrokers and AgentsSpecializedManufacturers and Retailers branches

WholesalingSupply Chain Management: Procuring the right inputs, converting them efficiently into finished products and dispatching them to final destination

Market Logistics: Planning the infrastructure to meet demand, implementing and controlling the physical flows of materials and good from points of origin to point of use, at a profit.Deciding the companys value propositionSelecting the best channel design and network strategyOperational Excellency: Forecasting, Warehouse Management, Transportation, Material ManagementImplementing the solution with information system, equipment, policies and proceduresMarket LogisticsHow should we handle orders: Order Processing

Where should we locate our stocks: Warehousing

How much stock should we hold: InventoryOrder pointInventory Segmentation: Opportunity and RiskOrdering frequency: Set-up Cost + Running CostOrder processing cost Inventory Carrying CostEoQ

How should we ship goods: TransportationPricingOn-timeQuality

Market Logistics DecisionsThank You