SlideShare a Scribd company logo
1 of 28
RETAIL FORMATS

             Prepared By,
            Sagar Gadekar
Store Retailing by Store based
               Strategy
 General Merchandise.     Food Retailers.
b) Departmental stores.   b) Convenience Store.
c) Full Line Discount.    c) Conventional Supermarket.
d) Specialty Stores.      d) Food Based Superstore.
e) Off Price Retailer.    e) Combination Store.
f) Variety Store.         f) Super Centers And
g) Flea Market.              Hypermarket.
h) Factory Outlet.        g) Limited Line Stores.
i) Membership Club.
Department Store
 Department stores are large retailers that carry wide breadth and depth of
    products. They offer more customer service than their general
    merchandise competitors. Department stores are named because they are
    organized by departments such as juniors, men's wear, female wear etc.
   Each department is act as “ministore”. Means the each department is
    allocated the sales space, manager and sales personnel that they pay a
    attention to the department.
   IMC programme for each department is different and particular.
   Department store utilizes various sources for marketing communication.
    Due to overstoring most of the budget are spend on advertising,
    couponing and discounts.
   Unfortunately the use of coupons diminishes profits and creates a situation
    where consumer do not buy unless they receive some type of discount.
Full line Discount Stores
 It convey the image of a high volume, low cost, fast turnover outlet
    selling a broad merchandise assortment for less than conventional
    prices.
   It is more to carry the range of products line expected at
    department stores, including consumer electronics, furniture and
    appliances. There is also greater emphasis on such items as auto
    accessories, gardening equipment, and house wares.
   Customer services is not provided within stores but at centralized
    area.
   Products are sold via self service.
   Less fashion sensitive merchandise is carried.
Specialty Store
 Specialty store carry a limited number of product within one or few
    lines of goods and services. They are named because they specializes in
    one type of product. Such as apparel and complementary
    merchandise.
   Specialty store utilizes a market segmentation strategy rather than
    typical mass marketing strategy when trying to attract customers.
   Specialty retailers tend to specialize in apparel, shoes, toys, books,
    auto supplies, jewelry and sporting goods.
   In recent years, specialty stores have seen the emergence of the
    category killer.
   Category killers (sometimes called power retailer or category
    specialty) are generally discount specialty stores that offer a deep
    assortment of merchandise in a particular category.
Off-price Retailers
 Off price retailers resemble discount retailers in that they sell brand name
    merchandise at everyday low prices. Off price retailers rarely offer many services
    to customers.
   The key strategy of off price retailers is to carry the same type of merchandise as
    traditional department stores but offer prices that can be 40 to 60 percent lower.
   To able to offer the low prices, off price retailers develop special relation ship with
    their suppliers for large quantity of merchandise.
   Inventory turnover is the key factor of successful off price retailing business.
   In addition to purchasing close outs and cancel orders, off price retailers negotiate
    with manufacturer to discount order off merchandise that is out of seasons or to
    prepay for items to be manufactured thus reducing the price of buying items.
   E.g. There are many types of off price retailers, including outlet store,
    Manufacturers department store or even specialty store chains can be a off-price
    retailer.
 Variety Store
 Variety store offer deep assortment of inexpensive and popular goods like
  stationary, gift items, women’s accessories, house wares etc.
 They are also called 5 to 10 percent store because the merchandise in such
  stores, used to cost much.
 Flea Market
• Flea market is a literal transaction of the French aux puces, in out door
  bazaars in Paris.
• A flea market is the out door or indoor facility that rent out space to vendors
  who offer merchandise, services and other goods that satisfy the legitimate
  needs of customers.
• Flea market provide opportunity for entrepreneur to start business at low
  price.
• A flea market consist of many retail vendors offering a variety of products at
  discount price at places where there is high concentration of people. On
  specific market days they assemble for exchange of goods and services.
   Factory Outlets
 Factory outlets are manufacturer owned stores selling manufacturers
  closeouts, discontinued merchandise, irregulars, canceled orders, and
  some times in seasons, first quality merchandise.
 Membership Clubs
 A membership club appeals to price conscious consumers, who must
  be a member of shop there.
 It breaks the line between wholesaleling and retailing. Some members
  of typical club are small business owners and employee who pay a
  nominal annual fee and buy merchandise at wholesale prices, these
  customers make purchase for use in operating their firm or for
  personal use.
 They yield 60% of total club sale. The bulk members are final
  consumers who buy exclusively for their own use, they represent 40
  %of overall sales.
Food Retailers
 Convenience Stores
 As the name suggests, convenience stores are located in areas that
  are easily accessible to customers. Convenience store carry
  limited assortment of products and are housed in small facilities.
 The major seller in convenience stores are convenience goods and
  non alcoholic beverages.
 The strategy of convenience stores employ is fast shopping,
  consumer can go into a convenience stores pick out what they
  want, and check out relatively short time.
 Due to the high sales, convenience store receive products almost
  daily. Because convenience store don’t have the luxury of high
  volume purchase.
Conventional supermarket.
 Conventional supermarket are essentially large departmental
  stores that specialize in food. According to the food marketing
  institute, a conventional supermarket is a self service food store
  that generates an annual sales volume of $2 million or more.
 These stores generally carry groceries, meat and produce
  products. A conventional food store carries very little general
  merchandise.
 Super market first appeared in the 1930’s, when food retailer
  found they could increase the size of their operations to persuade
  customer to make purchase by offering more products at lower
  cost.
 One benefits that accompanied the development of super market
  was increased impulse buying. Impulse purchase are those that
  have not been planned.
Food Based Superstore
 One of the biggest trend over the past twenty years in food
  retailing has been the development of superstore.
  Superstores are food based retaliates that are larger than the
  traditional supermarket and carry expanded service daily,
  bakery, seafood and non food sections.
 Supermarket vary in size but can be as large as 150000 sq ft.
 Like combination stores food based superstore are efficient,
  offer people a degree of one stop shopping stimulate impulse
  purchase and feature high profit general merchandise.
Combination Store
 Because shoppers have been demanding more convenience in
  their shopping experience, a new type of food retailers has
  been emerging.
 These type of retailer combine food items and non food items
  to create one stop experience for the customer.
 Combination stores are popular for the following reasons.
  They are very large from the 30000 to 100000 or more sq ft.
  this leads to operating efficiencies and cost savings. Consumer
  like one stop shopping and will travel further to get to the
  store.
 Impulse sales are high.
Super Centers and Hypermarkets
 Super center is a combination of a superstore and discount
  store. Supercenter developed based on the European
  Hypermarkets, an extremely large retailing facility that offers
  many types of product in addition to foods.
 In supercentre more than 40 percent of sales come from non
  food items.
 Super Centre are fastest growing retail category and
  encompasses as much as sales.
 Wal-Mart is category leader with 74 percent share of super
  centre retail share.
Warehouse Clubs and Stores.
 Warehouse clubs and stores were developed to satisfy customers
  who want to low prices every day and are willing to give up
  services needs. These retailers offer a limited assortment of goods
  and services, both food and general merchandise, to both end
  users and midsize businesses.
 The stores are very large and are located in the lower rent areas of
  cities to keep theirs overhead low cost low.
 Generally, warehouse clubs offer varying types of merchandise
  because they purchase product that manufactures have discounted
  for variety of reasons.
 Warehouse clubs rely on fast moving, high turn over
  merchandise. One benefits of this arrangement is that the stores
  purchase the merchandise from the manufacturer and sell it prior
  to actually having to pay the manufacturer.
Limited Line Stores
 Limited line store also known as box stores or limited assortment
    stores, represent a relatively small number of food retail stores in
    the United States.
   Limited line store are food discounters that offer a small
    selections of products at lows prices.
   They are no frills stores that sell products out of boxes or
    shippers.
   Limited line stores rarely carry any refrigerated items and are
    often cash and carry, accepting no checks or purchase bags from
    the retailers.
   In limited line store, the strategy is to price products at least 20
    percent below similar products at conventional supermarkets.
Non Store Retailing.
                        Non Conventional
Conventional Channel.   Channel.
 Direct Marketing.      Electronic/Internet/E-
 Direct Selling.         Tailing.
 Vending Machines.
 Catalog Marketing.     Video Kiosks.
 Telemarketing.
                         Airport Retailing.
Direct Marketing
 Direct marketing is defined as an interactive system of
  marketing, which uses non personal media of communication to
  make a sale at any location or to secure a measurable response.
 Direct marketing is a method wherein the manufacturer or
  producer sells directly to retailer, user or ultimate consumers
  without intervening intermediaries. This offers flexibility with
  maximum controls of sales efforts and marketing information
  feedback.
 Various forms of Direct Marketing-telemarketing, Direct mail
  marketing, television ,marketing,
Direct Selling.
 In contrast to direct marketing, which involves
 no personal contact with consumers, direct
 selling entails some type of personal contact. This
 contact can be at the consumer home or at an out
 of home location such as the consumer office.
Vending Machines.
 Vending machines represents an additional class of retail
  institutions. Essentially, vending is non store retailing in
  which the consumer purchase a product through a
  machine.
 The machine itself take care of the entire transaction,
  from taking the money to providing the product.
 Vending machine offerings range from typical products
  such as soft drinks and candy to insurance, cameras,
  phone calls, phone cards, books, paper and pens.
Catalog Marketing.
 Mail Orders Marketing/Catalog Marketing, also called as
  mail order business, is one of the established methods of
  direct marketing.
 Since mail orders marketers use catalogues for
  communication with the consumer, this form of marketing is
  often referred to as catalogue marketing.
 In this methods the consumer become aware of product
  through information furnished to them by the marketer
  through catalogues dispatched by mail.
Franchising.
 Meaning of Franchising.
 Franchise in French means privilege or freedom. Franchising
  refers to the methods of practicing and using another persons
  philosophy of business.
 The franchisor grants the independent operators the right to
  distributes its products, techniques and trademarks for a
  percentage of gross monthly sales and royalty fee.
 Various tangibles and intangibles such as national or international
  advertising , training and other support services are commonly
  made available by the franchisor. Agreements typically last five to
  twenty years, with premature cancelation or termination of most
  contracts bearing serious consequences for franchisees.
The History of Franchising
 The franchise business has been around a long time, in fact they go back
  as far back as the 1850's. The notion of selling off a business or a part of
  a business in order to expand into new areas usually came from the lack
  of investment funds from the business owner. Through their creativity
  they were able to keep the business alive by selling franchise
  opportunities to would-be entrepreneurs.
 While the business of franchising has grown over the years it all had to
  start somewhere. The concept of franchise businesses began with none
  other than the sewing machine manufacturer, Singer.
 The Singer Franchise Business Opportunity
 In the 1850's the Singer Company produced sewing machines but didn't
  have enough capital to actually pay their salesmen salaries. Instead, they
  created a network of dealers. These first franchise owners paid Singer a
  fee to work in a particular territory and earned money for each sale of a
  sewing machine they bought from the company and resold.
 Their significance in the start of the franchise and the
  opportunities it created came from the creation of the contract
  that is still used today between the original business owner and the
  new entrepreneur. Many feel the contract was what really sparked
  the creation of franchises in the future as it allowed business
  owners to keep some control over how the franchisees were run.
 The Coca-Cola Company Franchise Business Opportunity
 When Coca-Cola was originally created, it was only sold as a
  fountain drink. In 1899 two men obtained a short 600-word
  contract and the permission to bottle the soda.
 Thomas and Whitehead soon realized that even though they had a
  great idea, they couldn't afford to actually create a bottling
  company. As an alternative, they created a franchise company
  selling the right to bottle the product to individual bottling plants.
 The KFC Franchise Business Opportunities
 One of the most famous start-ups in the franchise industry was
  Kentucky Fried Chicken. The franchise opportunity began when
  Harlin Saunders, or the 'Colonel' was about to go under. His
  business started to fail when a highway was created seven miles
  away from his restaurant. With his business going under, Sanders
  had to find new ways to get his famous chicken to people.
 When Sanders finally lost his business, he went practically door-
  to-door to sell his chicken recipe. His popularity improved with
  time and within a few years he had restaurant owners coming to
  him. He set up franchises and today there are over 10,000 KFC
  restaurants all over the world.
 Companies Leading The Way For Franchise Business
  Opportunities
 The establishment of KFC and others like it led the way for
  businesses to expand all over the world. It also gave the
  opportunity for new entrepreneurs to find the path to
  success. Many of KFC's first franchise owners became
  millionaires. People who joined in with similar companies
  like McDonald's also found success.
 Advantage Of Franchising.
 Advantage to the Franchiser.
 Low Capital & Low Risk.
 Speeder Expansion.
 Extended Market Penetration.


 Advantages to the franchisee
 Reduced Business Risk.
 Operational Advantages.
 Easy Financing of the Business.
 Quick Start.
 Expansion.
Disadvantages Of Franchising.
 Disadvantages to the Franchiser.
 Business Control.
 Expenses Involved.
 Lower profit Potential.


 Disadvantage to the viable Franchisees.
 Limited Freedom
 Fee Payment.
 Non Performance of the Franchiser.
Thank You.

More Related Content

What's hot

Introduction to retail
Introduction to retailIntroduction to retail
Introduction to retailKarthik Yadav
 
Lecture 1 - Introduction to Retailing
Lecture 1 - Introduction to RetailingLecture 1 - Introduction to Retailing
Lecture 1 - Introduction to RetailingAARTEEROY
 
1. Basics of retailing, Types of retailers
1. Basics of retailing, Types of retailers1. Basics of retailing, Types of retailers
1. Basics of retailing, Types of retailersDr. Parveen Kaur Nagpal
 
Retailing (Concept & Definition)
Retailing (Concept & Definition)Retailing (Concept & Definition)
Retailing (Concept & Definition)dcsastudent
 
Category Management | Retail Management
Category Management | Retail ManagementCategory Management | Retail Management
Category Management | Retail ManagementRohan Bharaj
 
Retail Marketing Management - Marketing Mix
Retail Marketing Management - Marketing MixRetail Marketing Management - Marketing Mix
Retail Marketing Management - Marketing MixNavin Raj Saroj
 
Retail management
Retail management  Retail management
Retail management John Pradeep
 
Retail formats in india
Retail formats in indiaRetail formats in india
Retail formats in indiaSivaditya Gali
 
Introduction to Retail Management
Introduction to Retail ManagementIntroduction to Retail Management
Introduction to Retail ManagementEr. Vaibhav Agarwal
 
Retail Store Operations
Retail Store Operations Retail Store Operations
Retail Store Operations Amit Kumar Garg
 

What's hot (20)

Evolution of retail in india
Evolution of retail in indiaEvolution of retail in india
Evolution of retail in india
 
Retail Operations
Retail OperationsRetail Operations
Retail Operations
 
Introduction to retail
Introduction to retailIntroduction to retail
Introduction to retail
 
types of retailers.
types of retailers. types of retailers.
types of retailers.
 
Retail management
Retail managementRetail management
Retail management
 
Retail Management.ppt
Retail Management.pptRetail Management.ppt
Retail Management.ppt
 
Retail Strategy
Retail StrategyRetail Strategy
Retail Strategy
 
Store Locations
Store LocationsStore Locations
Store Locations
 
Lecture 1 - Introduction to Retailing
Lecture 1 - Introduction to RetailingLecture 1 - Introduction to Retailing
Lecture 1 - Introduction to Retailing
 
1. Basics of retailing, Types of retailers
1. Basics of retailing, Types of retailers1. Basics of retailing, Types of retailers
1. Basics of retailing, Types of retailers
 
Introduction to Retail
Introduction to RetailIntroduction to Retail
Introduction to Retail
 
Opportunities in Retail Sector
Opportunities in Retail SectorOpportunities in Retail Sector
Opportunities in Retail Sector
 
Retailing (Concept & Definition)
Retailing (Concept & Definition)Retailing (Concept & Definition)
Retailing (Concept & Definition)
 
Category Management | Retail Management
Category Management | Retail ManagementCategory Management | Retail Management
Category Management | Retail Management
 
Retail Marketing Management - Marketing Mix
Retail Marketing Management - Marketing MixRetail Marketing Management - Marketing Mix
Retail Marketing Management - Marketing Mix
 
Retail management
Retail management  Retail management
Retail management
 
Retail formats in india
Retail formats in indiaRetail formats in india
Retail formats in india
 
Introduction to Retail Management
Introduction to Retail ManagementIntroduction to Retail Management
Introduction to Retail Management
 
Retail Store Operations
Retail Store Operations Retail Store Operations
Retail Store Operations
 
Retailing
RetailingRetailing
Retailing
 

Viewers also liked

Retail merchandising
Retail merchandisingRetail merchandising
Retail merchandisingPrithvi Ghag
 
Retail store layout,design and display
Retail store layout,design and displayRetail store layout,design and display
Retail store layout,design and displayPrithvi Ghag
 
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50FITCH
 
04 theories and classification of retailing
04 theories and classification of retailing04 theories and classification of retailing
04 theories and classification of retailingDr. Chandan Vichoray
 
Strategic management - retail sector (tesco)
Strategic management - retail sector (tesco)Strategic management - retail sector (tesco)
Strategic management - retail sector (tesco)Mohd Farid Awang
 
Theories of retailing
Theories of retailingTheories of retailing
Theories of retailingStudy
 
Category Management
Category Management Category Management
Category Management Fabio Bullita
 
Sustainability of Competitive advantage
Sustainability of Competitive advantageSustainability of Competitive advantage
Sustainability of Competitive advantageillusionn
 
Sustainability of Competitive advantage
Sustainability of Competitive advantageSustainability of Competitive advantage
Sustainability of Competitive advantagePreshita Chaurasiya
 
How to create sustainable Competitive Advantage using Strategy Mechanism?
How to create sustainable Competitive Advantage using Strategy Mechanism?How to create sustainable Competitive Advantage using Strategy Mechanism?
How to create sustainable Competitive Advantage using Strategy Mechanism?Petrilau
 
Category management ppt
Category management pptCategory management ppt
Category management pptDivya Singh
 
RETAIL MERCHANDISING MANAGEMENT PROCESS
RETAIL MERCHANDISING MANAGEMENT PROCESSRETAIL MERCHANDISING MANAGEMENT PROCESS
RETAIL MERCHANDISING MANAGEMENT PROCESSNagarjuna Kalluru
 
Retail Store Locations - Retail Management
Retail Store Locations - Retail ManagementRetail Store Locations - Retail Management
Retail Store Locations - Retail Management'Nipun Jain'
 
Retail strategy brand-store location-size
Retail strategy   brand-store location-sizeRetail strategy   brand-store location-size
Retail strategy brand-store location-sizeSumesh Wadhwa
 

Viewers also liked (20)

retail formats
retail formatsretail formats
retail formats
 
Retail Formats and Theories
Retail Formats and TheoriesRetail Formats and Theories
Retail Formats and Theories
 
Retail Strategy
Retail StrategyRetail Strategy
Retail Strategy
 
Retail merchandising
Retail merchandisingRetail merchandising
Retail merchandising
 
Store design
Store designStore design
Store design
 
Retail store layout,design and display
Retail store layout,design and displayRetail store layout,design and display
Retail store layout,design and display
 
Retail formats
Retail formatsRetail formats
Retail formats
 
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
 
04 theories and classification of retailing
04 theories and classification of retailing04 theories and classification of retailing
04 theories and classification of retailing
 
Strategic management - retail sector (tesco)
Strategic management - retail sector (tesco)Strategic management - retail sector (tesco)
Strategic management - retail sector (tesco)
 
Theories of retailing
Theories of retailingTheories of retailing
Theories of retailing
 
Category Management
Category Management Category Management
Category Management
 
Sustainability of Competitive advantage
Sustainability of Competitive advantageSustainability of Competitive advantage
Sustainability of Competitive advantage
 
Sustainability of Competitive advantage
Sustainability of Competitive advantageSustainability of Competitive advantage
Sustainability of Competitive advantage
 
How to create sustainable Competitive Advantage using Strategy Mechanism?
How to create sustainable Competitive Advantage using Strategy Mechanism?How to create sustainable Competitive Advantage using Strategy Mechanism?
How to create sustainable Competitive Advantage using Strategy Mechanism?
 
Category management ppt
Category management pptCategory management ppt
Category management ppt
 
RETAIL MERCHANDISING MANAGEMENT PROCESS
RETAIL MERCHANDISING MANAGEMENT PROCESSRETAIL MERCHANDISING MANAGEMENT PROCESS
RETAIL MERCHANDISING MANAGEMENT PROCESS
 
Retail Store Locations - Retail Management
Retail Store Locations - Retail ManagementRetail Store Locations - Retail Management
Retail Store Locations - Retail Management
 
Retail marketing mix and planning
Retail marketing mix and planningRetail marketing mix and planning
Retail marketing mix and planning
 
Retail strategy brand-store location-size
Retail strategy   brand-store location-sizeRetail strategy   brand-store location-size
Retail strategy brand-store location-size
 

Similar to Retail formats

Study material retail concept and practices
Study material retail concept and practicesStudy material retail concept and practices
Study material retail concept and practicesSwatiYadav163
 
Understanding Basics of Retail-Research
Understanding Basics of Retail-ResearchUnderstanding Basics of Retail-Research
Understanding Basics of Retail-ResearchAmit Kumar Garg
 
Dharmik retail marketing
Dharmik retail marketingDharmik retail marketing
Dharmik retail marketingDharmik
 
Dharmik retail marketing
Dharmik retail marketingDharmik retail marketing
Dharmik retail marketingDharmik
 
Retailing Dictionary A To Z Retail Business
Retailing  Dictionary A To Z Retail BusinessRetailing  Dictionary A To Z Retail Business
Retailing Dictionary A To Z Retail BusinessAnoopsinghMba
 
principles-of-marketing-retailing-vs-wholesaling
principles-of-marketing-retailing-vs-wholesalingprinciples-of-marketing-retailing-vs-wholesaling
principles-of-marketing-retailing-vs-wholesalingsukesh gowda
 
Traditional and modern formats of retail business
Traditional and modern formats of retail businessTraditional and modern formats of retail business
Traditional and modern formats of retail businessronielynLacay1
 
Retail and sales management
Retail and sales managementRetail and sales management
Retail and sales managementSoumya Sahoo
 
Food oriented store based retail
Food oriented store based retail Food oriented store based retail
Food oriented store based retail Gaurav Singh
 
Marketing Chapter 16
Marketing Chapter 16Marketing Chapter 16
Marketing Chapter 16WanBK Leo
 
Types Of Retailing In India
Types Of Retailing In IndiaTypes Of Retailing In India
Types Of Retailing In IndiaAkshay Paswan
 

Similar to Retail formats (20)

Study material retail concept and practices
Study material retail concept and practicesStudy material retail concept and practices
Study material retail concept and practices
 
Types of retailers
Types of retailersTypes of retailers
Types of retailers
 
Understanding Basics of Retail-Research
Understanding Basics of Retail-ResearchUnderstanding Basics of Retail-Research
Understanding Basics of Retail-Research
 
Shubhangi
ShubhangiShubhangi
Shubhangi
 
Shubhangi
ShubhangiShubhangi
Shubhangi
 
Dharmik retail marketing
Dharmik retail marketingDharmik retail marketing
Dharmik retail marketing
 
Dharmik retail marketing
Dharmik retail marketingDharmik retail marketing
Dharmik retail marketing
 
Retailing Dictionary A To Z Retail Business
Retailing  Dictionary A To Z Retail BusinessRetailing  Dictionary A To Z Retail Business
Retailing Dictionary A To Z Retail Business
 
principles-of-marketing-retailing-vs-wholesaling
principles-of-marketing-retailing-vs-wholesalingprinciples-of-marketing-retailing-vs-wholesaling
principles-of-marketing-retailing-vs-wholesaling
 
Traditional and modern formats of retail business
Traditional and modern formats of retail businessTraditional and modern formats of retail business
Traditional and modern formats of retail business
 
Retail and sales management
Retail and sales managementRetail and sales management
Retail and sales management
 
Retailing
RetailingRetailing
Retailing
 
Food oriented store based retail
Food oriented store based retail Food oriented store based retail
Food oriented store based retail
 
Types of retail
Types of retailTypes of retail
Types of retail
 
Marketing Chapter 16
Marketing Chapter 16Marketing Chapter 16
Marketing Chapter 16
 
Types of retailers
Types of retailers Types of retailers
Types of retailers
 
Types of retailers
Types of retailers Types of retailers
Types of retailers
 
Formats of Retail
Formats of RetailFormats of Retail
Formats of Retail
 
Types Of Retailing In India
Types Of Retailing In IndiaTypes Of Retailing In India
Types Of Retailing In India
 
retail1.ppt
retail1.pptretail1.ppt
retail1.ppt
 

More from Sagar Gadekar

More from Sagar Gadekar (20)

Promotion
PromotionPromotion
Promotion
 
Product
ProductProduct
Product
 
Product management
Product managementProduct management
Product management
 
Product life cycle
Product life cycleProduct life cycle
Product life cycle
 
Place
PlacePlace
Place
 
New product development
New product  developmentNew product  development
New product development
 
Introduction to marketing management
Introduction to marketing managementIntroduction to marketing management
Introduction to marketing management
 
Branding packaging and labeling
Branding packaging and labelingBranding packaging and labeling
Branding packaging and labeling
 
Wholesaling
WholesalingWholesaling
Wholesaling
 
Technology in distribution
Technology in distributionTechnology in distribution
Technology in distribution
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
Store administration
Store administrationStore administration
Store administration
 
Retail location
Retail locationRetail location
Retail location
 
Retail communication mix
Retail communication mixRetail communication mix
Retail communication mix
 
Merchandising
MerchandisingMerchandising
Merchandising
 
Markrting channels
Markrting channelsMarkrting channels
Markrting channels
 
Integrated marketing channels
Integrated marketing channelsIntegrated marketing channels
Integrated marketing channels
 
Channel management
Channel managementChannel management
Channel management
 
Retailing
RetailingRetailing
Retailing
 
Sampling methods
Sampling methodsSampling methods
Sampling methods
 

Recently uploaded

Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Servicediscovermytutordmt
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfPaul Menig
 
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Delhi Call girls
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Dave Litwiller
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Dipal Arora
 
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 DelhiCall Girls in Delhi
 
Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Roland Driesen
 
Best Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaBest Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaShree Krishna Exports
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...lizamodels9
 
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒anilsa9823
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageMatteo Carbone
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...amitlee9823
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxAndy Lambert
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Lviv Startup Club
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsP&CO
 
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyThe Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyEthan lee
 

Recently uploaded (20)

Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Service
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdf
 
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
 
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi
9599632723 Top Call Girls in Delhi at your Door Step Available 24x7 Delhi
 
Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
Best Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaBest Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in India
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
 
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyThe Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
 

Retail formats

  • 1. RETAIL FORMATS Prepared By, Sagar Gadekar
  • 2. Store Retailing by Store based Strategy  General Merchandise.  Food Retailers. b) Departmental stores. b) Convenience Store. c) Full Line Discount. c) Conventional Supermarket. d) Specialty Stores. d) Food Based Superstore. e) Off Price Retailer. e) Combination Store. f) Variety Store. f) Super Centers And g) Flea Market. Hypermarket. h) Factory Outlet. g) Limited Line Stores. i) Membership Club.
  • 3. Department Store  Department stores are large retailers that carry wide breadth and depth of products. They offer more customer service than their general merchandise competitors. Department stores are named because they are organized by departments such as juniors, men's wear, female wear etc.  Each department is act as “ministore”. Means the each department is allocated the sales space, manager and sales personnel that they pay a attention to the department.  IMC programme for each department is different and particular.  Department store utilizes various sources for marketing communication. Due to overstoring most of the budget are spend on advertising, couponing and discounts.  Unfortunately the use of coupons diminishes profits and creates a situation where consumer do not buy unless they receive some type of discount.
  • 4. Full line Discount Stores  It convey the image of a high volume, low cost, fast turnover outlet selling a broad merchandise assortment for less than conventional prices.  It is more to carry the range of products line expected at department stores, including consumer electronics, furniture and appliances. There is also greater emphasis on such items as auto accessories, gardening equipment, and house wares.  Customer services is not provided within stores but at centralized area.  Products are sold via self service.  Less fashion sensitive merchandise is carried.
  • 5. Specialty Store  Specialty store carry a limited number of product within one or few lines of goods and services. They are named because they specializes in one type of product. Such as apparel and complementary merchandise.  Specialty store utilizes a market segmentation strategy rather than typical mass marketing strategy when trying to attract customers.  Specialty retailers tend to specialize in apparel, shoes, toys, books, auto supplies, jewelry and sporting goods.  In recent years, specialty stores have seen the emergence of the category killer.  Category killers (sometimes called power retailer or category specialty) are generally discount specialty stores that offer a deep assortment of merchandise in a particular category.
  • 6. Off-price Retailers  Off price retailers resemble discount retailers in that they sell brand name merchandise at everyday low prices. Off price retailers rarely offer many services to customers.  The key strategy of off price retailers is to carry the same type of merchandise as traditional department stores but offer prices that can be 40 to 60 percent lower.  To able to offer the low prices, off price retailers develop special relation ship with their suppliers for large quantity of merchandise.  Inventory turnover is the key factor of successful off price retailing business.  In addition to purchasing close outs and cancel orders, off price retailers negotiate with manufacturer to discount order off merchandise that is out of seasons or to prepay for items to be manufactured thus reducing the price of buying items.  E.g. There are many types of off price retailers, including outlet store, Manufacturers department store or even specialty store chains can be a off-price retailer.
  • 7.  Variety Store  Variety store offer deep assortment of inexpensive and popular goods like stationary, gift items, women’s accessories, house wares etc.  They are also called 5 to 10 percent store because the merchandise in such stores, used to cost much.  Flea Market • Flea market is a literal transaction of the French aux puces, in out door bazaars in Paris. • A flea market is the out door or indoor facility that rent out space to vendors who offer merchandise, services and other goods that satisfy the legitimate needs of customers. • Flea market provide opportunity for entrepreneur to start business at low price. • A flea market consist of many retail vendors offering a variety of products at discount price at places where there is high concentration of people. On specific market days they assemble for exchange of goods and services.
  • 8. Factory Outlets  Factory outlets are manufacturer owned stores selling manufacturers closeouts, discontinued merchandise, irregulars, canceled orders, and some times in seasons, first quality merchandise.  Membership Clubs  A membership club appeals to price conscious consumers, who must be a member of shop there.  It breaks the line between wholesaleling and retailing. Some members of typical club are small business owners and employee who pay a nominal annual fee and buy merchandise at wholesale prices, these customers make purchase for use in operating their firm or for personal use.  They yield 60% of total club sale. The bulk members are final consumers who buy exclusively for their own use, they represent 40 %of overall sales.
  • 9. Food Retailers  Convenience Stores  As the name suggests, convenience stores are located in areas that are easily accessible to customers. Convenience store carry limited assortment of products and are housed in small facilities.  The major seller in convenience stores are convenience goods and non alcoholic beverages.  The strategy of convenience stores employ is fast shopping, consumer can go into a convenience stores pick out what they want, and check out relatively short time.  Due to the high sales, convenience store receive products almost daily. Because convenience store don’t have the luxury of high volume purchase.
  • 10. Conventional supermarket.  Conventional supermarket are essentially large departmental stores that specialize in food. According to the food marketing institute, a conventional supermarket is a self service food store that generates an annual sales volume of $2 million or more.  These stores generally carry groceries, meat and produce products. A conventional food store carries very little general merchandise.  Super market first appeared in the 1930’s, when food retailer found they could increase the size of their operations to persuade customer to make purchase by offering more products at lower cost.  One benefits that accompanied the development of super market was increased impulse buying. Impulse purchase are those that have not been planned.
  • 11. Food Based Superstore  One of the biggest trend over the past twenty years in food retailing has been the development of superstore. Superstores are food based retaliates that are larger than the traditional supermarket and carry expanded service daily, bakery, seafood and non food sections.  Supermarket vary in size but can be as large as 150000 sq ft.  Like combination stores food based superstore are efficient, offer people a degree of one stop shopping stimulate impulse purchase and feature high profit general merchandise.
  • 12. Combination Store  Because shoppers have been demanding more convenience in their shopping experience, a new type of food retailers has been emerging.  These type of retailer combine food items and non food items to create one stop experience for the customer.  Combination stores are popular for the following reasons. They are very large from the 30000 to 100000 or more sq ft. this leads to operating efficiencies and cost savings. Consumer like one stop shopping and will travel further to get to the store.  Impulse sales are high.
  • 13. Super Centers and Hypermarkets  Super center is a combination of a superstore and discount store. Supercenter developed based on the European Hypermarkets, an extremely large retailing facility that offers many types of product in addition to foods.  In supercentre more than 40 percent of sales come from non food items.  Super Centre are fastest growing retail category and encompasses as much as sales.  Wal-Mart is category leader with 74 percent share of super centre retail share.
  • 14. Warehouse Clubs and Stores.  Warehouse clubs and stores were developed to satisfy customers who want to low prices every day and are willing to give up services needs. These retailers offer a limited assortment of goods and services, both food and general merchandise, to both end users and midsize businesses.  The stores are very large and are located in the lower rent areas of cities to keep theirs overhead low cost low.  Generally, warehouse clubs offer varying types of merchandise because they purchase product that manufactures have discounted for variety of reasons.  Warehouse clubs rely on fast moving, high turn over merchandise. One benefits of this arrangement is that the stores purchase the merchandise from the manufacturer and sell it prior to actually having to pay the manufacturer.
  • 15. Limited Line Stores  Limited line store also known as box stores or limited assortment stores, represent a relatively small number of food retail stores in the United States.  Limited line store are food discounters that offer a small selections of products at lows prices.  They are no frills stores that sell products out of boxes or shippers.  Limited line stores rarely carry any refrigerated items and are often cash and carry, accepting no checks or purchase bags from the retailers.  In limited line store, the strategy is to price products at least 20 percent below similar products at conventional supermarkets.
  • 16. Non Store Retailing. Non Conventional Conventional Channel. Channel.  Direct Marketing.  Electronic/Internet/E-  Direct Selling. Tailing.  Vending Machines.  Catalog Marketing.  Video Kiosks.  Telemarketing.  Airport Retailing.
  • 17. Direct Marketing  Direct marketing is defined as an interactive system of marketing, which uses non personal media of communication to make a sale at any location or to secure a measurable response.  Direct marketing is a method wherein the manufacturer or producer sells directly to retailer, user or ultimate consumers without intervening intermediaries. This offers flexibility with maximum controls of sales efforts and marketing information feedback.  Various forms of Direct Marketing-telemarketing, Direct mail marketing, television ,marketing,
  • 18. Direct Selling.  In contrast to direct marketing, which involves no personal contact with consumers, direct selling entails some type of personal contact. This contact can be at the consumer home or at an out of home location such as the consumer office.
  • 19. Vending Machines.  Vending machines represents an additional class of retail institutions. Essentially, vending is non store retailing in which the consumer purchase a product through a machine.  The machine itself take care of the entire transaction, from taking the money to providing the product.  Vending machine offerings range from typical products such as soft drinks and candy to insurance, cameras, phone calls, phone cards, books, paper and pens.
  • 20. Catalog Marketing.  Mail Orders Marketing/Catalog Marketing, also called as mail order business, is one of the established methods of direct marketing.  Since mail orders marketers use catalogues for communication with the consumer, this form of marketing is often referred to as catalogue marketing.  In this methods the consumer become aware of product through information furnished to them by the marketer through catalogues dispatched by mail.
  • 21. Franchising.  Meaning of Franchising.  Franchise in French means privilege or freedom. Franchising refers to the methods of practicing and using another persons philosophy of business.  The franchisor grants the independent operators the right to distributes its products, techniques and trademarks for a percentage of gross monthly sales and royalty fee.  Various tangibles and intangibles such as national or international advertising , training and other support services are commonly made available by the franchisor. Agreements typically last five to twenty years, with premature cancelation or termination of most contracts bearing serious consequences for franchisees.
  • 22. The History of Franchising  The franchise business has been around a long time, in fact they go back as far back as the 1850's. The notion of selling off a business or a part of a business in order to expand into new areas usually came from the lack of investment funds from the business owner. Through their creativity they were able to keep the business alive by selling franchise opportunities to would-be entrepreneurs.  While the business of franchising has grown over the years it all had to start somewhere. The concept of franchise businesses began with none other than the sewing machine manufacturer, Singer.  The Singer Franchise Business Opportunity  In the 1850's the Singer Company produced sewing machines but didn't have enough capital to actually pay their salesmen salaries. Instead, they created a network of dealers. These first franchise owners paid Singer a fee to work in a particular territory and earned money for each sale of a sewing machine they bought from the company and resold.
  • 23.  Their significance in the start of the franchise and the opportunities it created came from the creation of the contract that is still used today between the original business owner and the new entrepreneur. Many feel the contract was what really sparked the creation of franchises in the future as it allowed business owners to keep some control over how the franchisees were run.  The Coca-Cola Company Franchise Business Opportunity  When Coca-Cola was originally created, it was only sold as a fountain drink. In 1899 two men obtained a short 600-word contract and the permission to bottle the soda.  Thomas and Whitehead soon realized that even though they had a great idea, they couldn't afford to actually create a bottling company. As an alternative, they created a franchise company selling the right to bottle the product to individual bottling plants.
  • 24.  The KFC Franchise Business Opportunities  One of the most famous start-ups in the franchise industry was Kentucky Fried Chicken. The franchise opportunity began when Harlin Saunders, or the 'Colonel' was about to go under. His business started to fail when a highway was created seven miles away from his restaurant. With his business going under, Sanders had to find new ways to get his famous chicken to people.  When Sanders finally lost his business, he went practically door- to-door to sell his chicken recipe. His popularity improved with time and within a few years he had restaurant owners coming to him. He set up franchises and today there are over 10,000 KFC restaurants all over the world.  Companies Leading The Way For Franchise Business Opportunities
  • 25.  The establishment of KFC and others like it led the way for businesses to expand all over the world. It also gave the opportunity for new entrepreneurs to find the path to success. Many of KFC's first franchise owners became millionaires. People who joined in with similar companies like McDonald's also found success.
  • 26.  Advantage Of Franchising.  Advantage to the Franchiser.  Low Capital & Low Risk.  Speeder Expansion.  Extended Market Penetration.  Advantages to the franchisee  Reduced Business Risk.  Operational Advantages.  Easy Financing of the Business.  Quick Start.  Expansion.
  • 27. Disadvantages Of Franchising.  Disadvantages to the Franchiser.  Business Control.  Expenses Involved.  Lower profit Potential.  Disadvantage to the viable Franchisees.  Limited Freedom  Fee Payment.  Non Performance of the Franchiser.