RETAIL FORMATS- ORGANISED AND UNORGANSIED MOONA RAHAMATHULLA AND SHRUTI ACHARYA POORNAPRAJNA INSTITUTE OF MANAGEMENT

1. RETAIL
MANAGEMENT
PRESENTATION BY:
MOONA RAHAMATHULLA ,1618
SHRUTI ACHARYA ,1632
2ND M.B.A.
MARKETING

2. RETAIL
FORMATS

4. RETAILING IN INDIA
Retailing in India is one of the pillars of its economy and
accounts for about 10 percent of its GDP. The Indian retail
market is one of the top five retail markets in the world by
economic value. India is one of the fastest growing retail
markets in the world.
 In 2010, larger format convenience stores and
supermarkets accounted for about 4 percent of the
industry, and these were present only in large urban centres.
On 7 December 2012, the Federal Government of India
allowed 51% FDI in multi-brand retail in India.

7. UNORGANIZED RETAIL
FORMATS.

8. Unorganised Formats
Haats, Mandis.
Fairs
Hawkers
Flea markets
Mom and pop stores

9. Haats, mandis.
Mandi in Hindi language means market place.
Traditionally, such market places were for
food and agri-commodities. However, over
time the coverage of mandis got widened to
include trading hubs for grains, vegetables,
timber, gems and diamonds; almost every
tradable was included. Mandis for animals
like cattle, goats, horses, mules, camels and
buffaloes, and poultry are often organized
as fairs. Thus the word mandi assumes the
contours of a catch-all market place where
anything is bought and sold.

10. Features
 Creation of a common market.
 Oldest form of retailing.

11. Fairs
A fair is a gathering of
people for a variety of
entertainment or
commercial activities. It
is normally of the
essence of a fair that it
is temporary with
scheduled times lasting
from an afternoon to
several weeks.

12. Features
It is a platform for many retailers.
Shared expenses.

13. hawkers
A hawker is an individual who sells wares by
carrying them through the streets. The
person's ordinary methods of attracting
attention include addressing the public,
using placards, labels, and signs, or
displaying merchandise in a public place.
A peddler is defined as a retail dealer who
brings goods from place to place, exhibiting
them for sale. The terms are frequently
defined in state statutes or city ordinances
and are often used interchangeably.

14. Flea markets
A flea market (or swap meet) is a type
of bazaar that rents or provides space to people
who want to sell or barter merchandise. Used
goods, cheap items, collectibles, and antiques are
commonly sold. Many markets offer fresh produce
or baked goods, plants from local farms and
vintage clothes.
Renters of the flea market tables are
called vendors. It may be indoors, as in a
warehouse or school gymnasium; or outdoors, as in
a field or parking lot, under a tent. Flea markets
can be held annually or semi-annually, others may
be conducted monthly, on weekends, or daily.

15. Mom and pop stores
"Mom and pop" is the term used
for businesses and companies
that are independently owned and
run. These types of businesses
are much smaller and sometimes
have difficulty competing with
larger businesses' buying power.
Kirana store, a small
neighborhood retail store in the
Indian Subcontinent.

16. Features
 Less investment
 Sole proprietorship

17. A fish retail store in West Bengal, India A food staple retail shop in Pushkar,
India
A spice market
A horticultural produce retail market
in Kolkata
Vegetable Shop in rural India
Unorganized retail formats
Kirana store

18. ORGANISED
RETAIL FORMATS.

19. Ownership
Store-based retail
Nonstore-based retail
• Independent
• Chain
• Franchise
• Leased department
• Vertical marketing system
• Consumer cooperative
• Convenience store
• Conventional supermarket
• Food-based supermarket
• Combination store
• Box (limited line) store
• Warehouse store
• Specialty store
• Variety store
• Department store
• Off-price chain
• Factory outlet
• Membership club
Direct marketing
• Direct selling
• Vending machine
• E- tailing
• Catalogue marketing
• telemarketing
Classification of Organised Retail
Formats

20. Ownership
•Independent
•Chain
•Franchise
•Leased department
•Vertical marketing system
•Consumer cooperative

21. independent
An independent retailer is one who builds his/her
business from the ground up. From the business
planning stage to opening day, the independent
retail owner does it all. He/she may hire
consultants, staff and others to assist in the
business endeavour. The opportunities are endless.
There are no restrictions on who, how or where an
entrepreneur should set up his/her business. The
freedom to do what one wants to do is the biggest
advantage in this form of business. It can be
extremely fulfilling. However, due to the easy
entry, many of these retail business fail in the early
years. The biggest reason is a lack of a business
plan.

22. Features
These stores have a great deal of flexibility in choosing
retail formats and locations.
They target smaller consumer segments rather than mass
markets.
 They have low investments in terms of lease, fixtures,
workers and merchandise.
 Independents often act as specialists and acquire skills in a
niche for a particular goods/service category.
Decision-making in these stores is usually centralised as the
owner operator is typically on the premises.

23. chain
In India apt example for this retail system are offered
by 'Bata Shoes', 'Usha Sewing Machines' etc., such
multiple shops have 'centralised buying with
decentralized selling". Fundamentally, they specialize in
one product but with all its varieties or models
Chains have been interpreted as a group of two
or more reasonably similar stores in the same
kind or field of business under one ownership
and management, merchandised wholly or largely
from central merchandising headquarters and
supplied from the manufacturer or orders
placed by the central buyers.

24. Features
 One or more units may constitute a chain, They are centrally
owned with some degree of centralised control of operation.
 They are horizontally 'integrated' that is, they operate
multiple stores. With addition of each new store, the system
extends the reach to another group of customers.
 Many stores are also 'vertically integrated'. They maintain
large distribution centres where they buy from producers,
do their own warehousing and then distribute their own
stores.

25. franchise
Franchising is a contractual agreement between a franchiser and a
franchisee that allows the franchisee to operate a retail outlet using a
name and format developed and supported by the franchiser.
In a franchise contract the franchisee pays a lump sum plus a royalty
on all sales for the right to operate a store in a specific location. The
franchisee also agrees to operate the outlet in accordance with
procedures prescribed by the franchisers.
There are two types of franchising: product/ trademark and business
format.
Three structural arrangements are found in retail franchising. (a)
Manufacturer- Retailer (b) Wholesaler- retailer (c) Service sponsor
retailer

27. Features
Well established business
Needs limited investment
Easy entry in new markets
Business has large establishments
 Helps in diverting business risks
 Results in a large turnover
Allows use of brand name and
trademark
 Business is based on mutual
agreement

28. Leased Department
A Leased Department is a department
in a retail store rented generally by a
manufacturer. The lessee is responsible
for all aspects of business and pays the
store a rent.
The leased departments choose to
operate in categories that are generally
on the fringe of the store’s major
product lines, such as in-store beauty
salons, banks, photographic studios and
food courts

29. Features
Leased departments help the stores in generating greater
traffic and providing one stop shopping
The leased department operators benefit as the main store
generates immediate sales for leased departments
 This arrangement reduces expenses through economics of
scale (like pooled advertising) and shared facilities (like
security equipment and display windows).
 They benefit from expertise of lessees in personal
management, merchandise displays, the recording of items
etc.

30. Vertical Marketing System
A vertical marketing system (VMS) is one in which
the main members of a distribution channel—
producer, wholesaler, and retailer—work together
as a unified group in order to meet consumer
needs.
In conventional marketing systems, producers,
wholesalers, and retailers are separate businesses
that are all trying to maximize their profits.
When the effort of one channel member to
maximize profits comes at the expense of other
members, conflicts can arise that reduce profits
for the entire channel.
To address this problem, more and more companies
are forming vertical marketing systems.

31. Features
When company resources are low and
channel members want to share costs and
risks such an arrangement is desirable.
With a partially integrated vertical
marketing system, two independently
owned businesses along a channel perform
all production and distribution functions
without the aid of the third.
In the past, this system was usually
employed only by manufacturers, but now
retailers have also moved upward in the
chain.
3 TYPES

33. Consumer Co-operative
A Consumer Cooperative is a retail firm in which a group of
consumers invest in the enterprise. The officers are elected.
Consumer-members share the profits or savings that accrue. Such
retailers are many in number but small in size and are most popular
in food retailing.
They were started mainly to guard against the malpractice that
many retailers indulge in and either charge higher prices or offer
inconsistent quality of merchandise.
The consumer co-operatives are limited because consumers are
usually not expert in buying, handling and selling goods and services
and the cost savings and low selling prices have not been as
expected in many cases.

35. Non store
retailing
DIRECT MARKETING
• Direct selling
• Catalogue marketing
• Vending machine
• E- tailing
•Telemarketing

36. Direct Marketing

37. Features
One-to-One
Communication
Personalization
Interesting
Offers
Call to Action
Direct Response

38. Catalogue marketing
Catalogue marketing is a sales technique
used by businesses to group many items
together in a printed piece or an online
store, hoping to sell at least one item to the
recipient.
Consumers buy directly from the catalog
sender by phone, return envelope or online
using information in the catalogue.
Some catalogue marketers act as
intermediaries between consumers and
manufacturers, while businesses with more
than a few items create their own catalogue.

41. Vending machines
The sale of products through a
machine with no personal contact
between buyer and seller is called
automatic vending. The appeal of
automatic vending is convenient
purchase.
It can expand a firm's market by
reaching customers where and when
they cannot come to a store. Thus
vending equipment is found almost
everywhere, particularly in schools,
work places and public facilities.

42. Features
No personal contact
between buyer and
seller
Expand a firm’s
market
Convenient to
customers

43. E-tailing
Electronic retailing is the sale of goods
and services through the internet.
Electronic retailing, or e-tailing, can
include business-to-business (B2B) and
business-to-consumer (B2C) sales of
products and services, through
subscriptions to website content, or
through advertising. E-tailing requires
businesses to tailor traditional
business models to the rapidly
changing face of the internet and its
users.

44. Features
Strong distribution
efficiency so consumers are
not waiting long periods of
time
Transparency in business
practices is also important
so consumers trust and
stay loyal to a company.
Regularly updated to meet
consumers' changing
demands.

45. telemarketing
Telemarketing refers to a sales person
initiating contact with a shopper and
closing a sale over the telephone.
Telemarketing many entail cold
canvassing from the phone directory.
Many products that can be bought
without being seen are sold over the
telephone.
Examples are pest control devices,
magazine subscriptions, credit cards
and club memberships.

46. Features
Immediate
feedback and
valuable
information.
Two way
communication

47. Store Based
Retailing
•Convenience store
•Conventional supermarket
•Food-based supermarket
•Department store
•Hypermarkets
•Box (limited line) store
•Warehouse store
•Off-price chain
•Specialty store
•Variety store
•Factory outlet
•Membership club

48. Convenience store
A relatively small stores
located near residential
areas; they are open for
long hours, seven days a
week and offer a
limited line of
convenience products
like eggs, bread, milk,
etc.,.

49. Features
Found in residential areas.
A one stop shop of that particular area.
Monopoly.

50. Conventional supermarket
These are large, self service stores that
carry a broad and complete line of food and
non-food products. They have central check
out facilities.
Kotler defines supermarket as 'a
departmentalized retail establishment
having four basic departments viz. self-
service grocery, meat, produce and diary
plus other household departments, and doing
a maximum business. It may be entirely
owner operated or have some of the
departments leased on a concession basis.'

51. Features
They are usually located in or near primary or secondary shopping
areas but always in a place where parking facilities are available.
They use mass displays of merchandise.
They normally operate as cash and carry store.
They make their appeal on the basis of low price, wide selection of
merchandise, nationally advertised brands and convenient parking.
They operate largely on a self-service basis with a minimum number
of customer services.

52. Food Based Supermarkets
These stores as the very name implies, sell grocery items
and offer customers the ability to buy fill-in general
merchandise.

53. Features
Offer one-stop
shopping experience
Stimulate impulse
purchase
The concept of EDLP
(Everyday Low Price)
is usually followed
Large, low margin and
self service stores

54. A department store is a retail establishment offering
a wide range of consumer goods in different product
categories known as "departments". In modern major
cities, the department store made a dramatic
appearance in the middle of the 19th century, and
permanently reshaped shopping habits, and the
definition of service and luxury.
Today, departments often include the following: clothing,
furniture, home appliances, toys, cosmetics, house ware,
gardening, toiletries, sporting goods, do it yourself,
paint, and hardware. Additionally, other lines of products
such as food, books, jewelry, electronics, stationery,
photographic equipment, baby products, and products for
pets are sometimes included.
Department store

55. Department store

56. Features
 These are integrated stores performing operations in addition to other
retail stores such as wholesaling.
 Goods are divided into different classes with different locations and
management within the store itself.
 These stores are distinguished by the nature of goods they self and not
by the varieties they keep for example, drug and variety stores carry a
wide variety of goods.
 The store is a horizontally integrated institution. It brings together
under one roof a range of merchandise offerings comparable to the
combined offerings of many stores specializing in single or fewer
merchandise lines.

57. Hypermarkets
Hypermarket offers a
large basket of products,
ranging from grocery. Fries
& processed food, beauty &
healthcare products etc.
The combination of the
supermarket and
departmental store.
Example – LULU

58. Features
 The combination of the supermarket and
departmental store.

59. Box (Limited Line) Store

60. Features
“Limited” Policy
Discounted Prices

61. Warehouse stores
A large store that sells large
quantities of products at low
prices to the public.
Super warehouse store:
A hybrid
warehouse/superstore with
50,000 plus items and the full
range of service dept,
featuring high quality
perishables and reduced
prices.

62. Features
Merchandise sold in bulk
Warehouse stores do not require a membership
or membership fees.

63. Off-price chain

64. Features
Discounted prices.

65. Speciality Stores.
Speciality stores are
single category,
focusing on individuals
and group clusters of
the same class with
high product loyalty.
Examples –Footwear
stores, gift stores
etc.
The Adidas Retail Store

66. Features
Depth in the type of product that they specialize in
selling
Premium prices, higher service quality and expert
guidance to shoppers.

67. Variety Store
A variety store (also pound
shop, dollar store, and other names)
is a retail store that sells a wide
range of inexpensive household
goods.
Variety stores often have product
lines including food and drink,
personal hygiene products, small
home and garden tools, office
supplies, decorations, electronics,
garden plants, toys, pet supplies, ,
recorded media, and motor and bike
consumables. Larger stores may sell
frozen foods and fresh produce.

68. Features
 Large variety
 Inexpensive goods

69. An outlet store or factory
outlet is a brick and
mortar or online store in
which manufacturers sell their
stock directly to the public,
cutting out the middle-men.
Traditionally, a factory outlet
was a store attached to
a factory or warehouse,
sometimes allowing customers to
watch the production process.
FactoryOutlet

70. Features
No channel of distribution
Reduced costs.

71. Customers may be required
to pay annual membership
fees in order to shop.
Membership Clubs

72. Features
Entry barrier
Compulsion for
membership