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What's a Godzillas?. GodZillas Break into Thailand. Bombing in the central of cluster province Continue expanding very fast Location on ring road or by pass High capital to continue investment Build Image High retail technology Too many capacity of sale area
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What's a Godzillas? Aj-Kulachatr Chatrakul Na Ayudhaya
GodZillas Break into Thailand • Bombing in the central of cluster province • Continue expanding very fast • Location on ring road or by pass • High capital to continue investment • Build Image • High retail technology • Too many capacity of sale area • very efficiency in logistic management Aj-Kulachatr Chatrakul Na Ayudhaya
Above the sea : Formal Components These components are publicity and oriented to structural Under the sea : Informal Components These components are hidden and oriented to unformatted Aj-Kulachatr Chatrakul Na Ayudhaya
Retailing Management Introduction to the World of Retailing Strategy and Managing By Aj - Kulachatr Chatrakul Na Ayudhaya Marketing Department Business Administration Faculty Payap University Chaingmai Aj-Kulachatr Chatrakul Na Ayudhaya
Ch 1 Retailing Ch 2 Retailing Management Ch 3 Store Location Ch 4 Building, Layout , Equipment and Facilities Ch 5 Product Management Ch 6 Inventory Management Ch 7 Product Pricing Ch 8 Advertising & PR Ch 9 Merchandising & Sale Pro. Ch 10 Salesmanship Ch 11 IT for Retailing Business Ch 12 Retailing in the Modern World Case Study Retailing Management ; MK361 ; (pre MK 109 ) The Overview Aj-Kulachatr Chatrakul Na Ayudhaya
Retailing Management Retailing: includes all the activities involved in selling goods or services directly to final consumers for their personal , non-business use. (Kotler Philip , Marketing Management Analysis , Planning , Implementing and Control. 1997 , P-728) Retailing Management : the procedure of Planning , Organizing , Staffing , Directing and Controlling in retail business to approach the objectives firm. Aj-Kulachatr Chatrakul Na Ayudhaya
“World of Retailing Business” Aj-Kulachatr Chatrakul Na Ayudhaya
Function of Retailer • Purchasing • Selling • Storing • Risk • Cross Docking and Labeling • Credit and Financing • Servicing the Customer • Merchandising • Communicating Information Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • By Volume : Big , Medium or Small Size • By Product line • General Store , Single Line Store , Specialty Store , Department Store , Supermarket , Convenience Store • By form of ownership • Independent Store , Chain Store , Franchising , Consumer Cooperatives. • By Type of Business • Mail and Telephone order , Automatic vending , Door-to-door Selling , Catalog selling , Internet marketing or E-Commerce. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (by product line) • General or Variety Store: miscellaneous and variety of merchandising , and low price with house hold use. Managing by the entrepreneur and the most number of retailing business types in the world. • Single-line-Store : merchandising in the same of product line like woman-dressing line , Children style. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Specialty Store : Concentrates on a limit number of complementary merchandise categories and provides a high level of service such as consumer electronics , appliances , sport goods , cards , jewelry …etc • Act 1. List the name of Specialty store that you well known. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Department Store : are retailers that carry a broad variety and deep assortment, offer considerable customer services , and are organized into separate department for displaying merchandise. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Supermarket : Self-service food store offering groceries,meat and produce with limited sales of nonfood items , such as health and beauty aids and general merchandise with promotional one day a week or advertise sale items in local papers. Some supermarket use “Every Day Low Price”(EDLP)policy Typically, everyday price in these supermarkets are lower than regular prices in promotional supermarkets Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Convenience Stores : provide a limited variety and assortment of merchandise at a convenient location in a 2000-3000 sqr.ft. store with speedy checkout. They are the modern version of the neighborhood mom-and-pop grocery store. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Discount Stores : A full line discount store is a retailer that offers a board variety of merchandise , limited service , and low prices. They offer national brands , but these brands are typically less fasion-oriented than brands in department stores. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Super Center or Super Stores : are in 150,000 - 200,000 sqr.ft. stores those are the fastest growing retail category. The Suppercenters are full-line discount stores sell groceries at low prices to build store traffic. Offering broad assortment of grocery and general merchandise under one roof , provide a one stop shopping experience. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Warehouse Club : is a retailer that offers a limited assortment of food and general merchandise with little service at low prices to ultimate consumers and small business. Stores are large to 100,000 sqr.ft. And located in low-rent districts. They have simple interiors and concrete floors. Aisles are wide so forklifts can pick up pallets of merchandise and arrange them on the selling floor. Pay with cash and carry by themselves. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer • Hypermarkets : is a very large retail store offering low prices. It combines a discount store and superstore food retailer in one warehouse like building. Hypermarkets can be up to 300,000 sqr.ft. - Larger than 6 football field- and stock over 50,000 different items. Low operating margins , low prices and the size of the general merchandise assortment. Such as Carrefour , Tesco , Auchan , Casino , Makro Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Independent Store : General store that manage by freedom entrepreneur and independent in decision making. Owner -managed and direct contact with customers and can respond quickly to their needs. They are very flexible and aren’t bound by bureaucratic rules that restrict store location or types of merchandise sold. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Chain Store : a firm that consists of multiple retail units under common ownership and usually has some centralization of decision making in defining and implementing its strategy. • Advantage in : Expenses are separated , Decrease some expenses by reducing of some service , Wide-span of distribution and get special discount rate from suppliers by integrated in purchasing • Consumer Cooperatives : Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Consumer Cooperatives : one type of retail outlets that owned by their customers ; others are owned by government agencies. In consumer cooperatives , customers own and operate the retail establishment. Customers have ownership shares , hire full-time managers, and share in store profits through price reduction or dividends. The best-known consumer cooperatives are credit union that provide financial services. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Franchise Store :is a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using name and format developed and supported by the franchisor. 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 and operate the outlet in accordance with procedures prescribe by the franchisor beginning with assistance in locating and building , developing products and service sold , training , advertising and system development that run by franchisor with costs shared by franchisees. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Franchise Store : Entrance Criteria • Initial Fee or Franchise Fee : • Royalty Fee : • operate the outlet in accordance with procedures prescribe by the franchisor • Advantage of Franchise Store • Utility and Value of Master Brand or Franchisor • All supported by Master Company or Franchisor • Monetary and Source of fund supported • Training and development human resource efficiency Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Franchise Store : Convenience Store • All day (2530) • Central Mini-mart by Central groups (local brand) • 7- Eleven by CP Group (Inter brand from Southland Corp.USA) • AM/PM by Srinakorn & BanChang group (Inter from ARCO) • Gas Station Convenience Store ; Tiger mart , Everyday , Select ,Jiffy shop , Star-mart , Bai - Jak , Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer (Form of Ownership) • Franchise Store : Value , Brand and Imaging • Intangible Asset ; Low of sunk cost • Value and Creditability in Quality of Product and Service • Information through consumer all time • Franchise Store : Consideration • considered the franchisee with careful • Control the quality of product and service strictly • Be careful about franchisee’s liquidity and capital asset to hold the firm in long term. Aj-Kulachatr Chatrakul Na Ayudhaya
Type of Retailer(Type of Business ) • Mail and Telephone order Retailing • Automatic Vending Machine • Door to Door Selling • Service Retailing • Hospitality Services • Financial Services • Leisure - Time Services • Repair Services • Rental Services • Personal Services Aj-Kulachatr Chatrakul Na Ayudhaya
Type Of Retailing Store Based Retailing Non Store Retailing Aj-Kulachatr Chatrakul Na Ayudhaya
Retailing Business in trend • Increasing of population and Increasing of economy • Use of labor-force , Energy , and investment are increasing • The large scale of retailers are more importance and high of bargaining power. • The change of people life style and Attitude. • Concerning of legal about people’s health and welfare. Aj-Kulachatr Chatrakul Na Ayudhaya
Retailing Business in trend • Expanding of large scale retailing business • Retailers direct to purchasing with manufacturers • Increase of Franchising system be using • Dynamic New Merchandise Technique • Scrambled Merchandise • Fabulous New Merchandising • Night Opening • Visual Merchandise • Automation in Store Aj-Kulachatr Chatrakul Na Ayudhaya