Btec Level 2 Diploma in Business

1. Btec Level 2 Diploma in Business Unit 21 Promotion & Branding in Retail

2. Assessment Criteria P1 Identify the different types of retailers in Brighouse Town Centre P2 Explain how other businesses support the retail sector (supply chains) M1 Compare TWO retailers in Brighouse D1 Evaluate the choice of supply chain used by ONE retailer

3. P1 • Explain the five main types of retailers • On a map of Brighouse, identify and label the different retailers. Create a key code to show the different types of retailers. • Produce a table listing all the different types of retailers in Brighouse • For TWO retailers, create a fact sheet which explains what sector they operate in and what they sell

4. Retailer Someone who sells goods to a consumer.

5. Types of Retail Outlets P1 Independent Retailers • One shop: usually owned by a sole trader • Offer a personal service, convenient location, longer opening hours • Retail Chain Stores • Organisation with more than 10 branches • Speciality shops (eg furniture, clothing, books) • Some are variety chain stores (eg M&S) • Relatively low prices, fast-moving lines, centralised buying

6. P1 Types of Retail Outlets Non-Profit Retailers • Charity shops • Profit goes to the charity Market Trader • Relatively low prices – consumers are attracted because of the bargains • Brighouse market – every Tuesday and Saturday Supermarkets • Large companies with large number of branches • Sell food and non-food products • Now sell insurance, loans, mobile phones etc

7. Survey of Brighouse Town Centre P1 On a map of Brighouse: • Show the types of retail outlets there are in Brighouse – include the market • Create a key • Put a suitable title Table of Retailers in Brighouse: • Complete the table listing all the different types of retailers in Brighouse, what they sell and their size

8. P1 Investigation into Two Retail Outlets • Choose TWO retailers in Brighouse. ONE must be a SUPERMARKET • Create TWO factsheets – one for each retailer: • Name of the retailer and address • Describe the shop, and the products and services they sell • Sector they operate in (eg food, fashion) • Business ownership (eg sole trader, limited company) • Retail format (eg convenience store; specialist outlet; chain store) • Explain why the retail channel used is appropriate

9. Example of a summary of an independent trader: Czerwick’s • Independent trader in the grocery sector – food and drink. Family owned business, independent trader • One shop located in Brighouse on Commercial Street, but they sell their products all over the world – through mail order • Three floors – basement with a large wine cellar; small “mezzanine” area with beers and lager from around the world. Ground floor has spirits and mainly various types of cheese. • Outside display area in front of the shop fascia

10. Example of a summary of an independent trader: Czerwick’s • Display shelves on the right • Serving area on left – freshly made sandwiches and cheeses/deli counter • Appropriate retail channel because: • They keep all the profit made • They offer specialist food and drink to a “niche” market • Good location in the town centre – attracts lunchtime customers • Can sell world wide through mail order and the internet – increases profit.

11. P1 Example ofa Factsheet

12. M1 Compare how two retailers operate • Using your factsheet worksheets, write a report comparing the two retailers • Your report must show a clear understanding of the format and design of the store, and you must say which you think is a better design and why • You must compare the two locations and say which you think is better and why • You must include a labelled diagram of the store • Suitable images must be inserted and talked about

13. A Comparison … M1 Say what is the same and what is different about the two organisations. You can use one or two sentences: Either: • Czerwicks is an independent retailer and a family owned business. On the other hand, Boots is a chain store and a public limited company. Or: • Czerwicks is an independent retailer, whereas Boots is a chain store.

14. M1 Example Diagram Showing Store Format of Czerwick’s Beer and Lager Stairs down to wine cellar Customer Flow Product Displays Serving Area and Deli Counter Canned, non perishable goods and seasonal

15. D1 Evaluation of the Retail Channel used by XYZ Name the retailer and the channel they use Explain of the channel used Explain the benefits of using this retail channel Explain the disadvantages of using this retail channel Overall, is this the best channel for this particular retailer?

16. D1 Channel • Independent Retailer • Market Retailer • Chain Store • Supermarket • Non-profit Retailer

17. D1 Supermarkets • Very large retail units; usually public limited companies • 2 supermarkets in 1963, 400 in 1980, over 8,000 in 2011 • Low prices, minimum service, huge car parking, cut-price petrol • Food and non-food goods – often over 25,000 different products • Self service, high sales volume • Size: 25,000-50,000 sq ft

18. D1 Benefits of being a Supermarket • Locate outside of town centres – land is cheaper (insert a map showing the location of the store compared to the town centre) • Large retail units – can sell a very wide range of goods (show examples) • Wide range of goods and services – potential for huge sales (give figures for your supermarket) • Can purchase stock in bulk and receive discounts (economies of scale) – customers then benefit from lower prices – improves customer loyalty and repeat business

19. Disadvantages of being a Supermarket D1 • Disliked by smaller retailers – can find it difficult to gain planning permission (explain an example) • Very high business costs (premises; wages; purchase of stock; delivery costs) • Must keep all shelves stocked at all times – logistics very important – must have excellent stock control systems to ensure they do not run out of stock • Some products are perishable – must plan carefully how much to order and display in store (explain an example)

20. P2 The Supply Chain Task: Draw and label a poster which shows a diagram of the supply chain for your TWO chosen retailers. On the poster, explain what each type of business does to support the retail sector.

21. The Supply Chain Retailers buy goods from suppliers and then sell them to consumers. Retailers charge higher prices for the goods they sell than they pay for the goods when they buy from the manufacturers. This is called the “mark-up”. Clothing retailers usually charge consumers TWICE the price than they paid for them.

22. Stage 1: Growing the Raw Materials Coffee Growers

23. Stage 1: Growing the Raw Materials • Depending where they are located, farmers will grow the crops which flourish the best in that climate • Crops must be harvested and then transported to a factory where they are processed Examples: Corn is harvested and used to produce cereals and cooking oil Fruit is harvested and used to produce jelly and jams Wheat is harvested and used to make flour and cereals

24. Stage 1: How Growers Support Retailers • Growers are essential to retailers • Without growers, retailers would not have any food to sell to consumers • Growers help the supermarket to ensure that food is available all year round

25. Stage 2: Manufacturing and Processing the Products Milk Production

26. Stage 2: Manufacturing and Processing the Products • These businesses change the raw materials into a finished product • They must order all the necessary raw materials to make the produce Examples • Baked beans: beans, sauce, tin, paper packaging • Hovis bread: flour, water, yeast, plastic packaging

27. Raw Materials Needed for a Tin of Heinz Baked Beans

28. Stage 2: How Manufacturers Support Retailers • Manufacturers are essential to retailers – they produce and package goods which look attractive to consumers • Without manufacturers, retailers would not be able to display the products attractively

29. Stage 3: Delivery to a Wholesaler or RDC (Regional Distribution Centre) Tesco Regional Distribution Centre

30. Stage 3: Delivery to a Wholesaler or RDC (Regional Distribution Centre) • Wholesalers buy from manufacturers, store the products in large warehouses and then sell to retailers • Wholesalers “break bulk” – they receive large orders, then open the packaging and split it into smaller packages • Some businesses (eg Sainsburys and Tesco) have their own warehouses. These are called “Regional Distribution Centres”.

31. Stage 3: How Wholesalers and RDCs Support Retailers • Retailers can order all their goods from one wholesaler – this saves time • Retailers can order in bulk and receive discounts from the wholesaler

32. Stage 4: Delivery to Retailers

33. Haulage Companies:Deliver goods to Retailers

34. Stage 4: Delivery to Retailers

35. Stage 4: How Haulage Firms Support Retailers

36. Stage 5: Retailers display goods on shelves

37. P2 Task: Two Posters On the worksheet provided, fill in details of ten items you would buy at your chosen supermarket. At least 5 items must be food. Complete the 5 stages of the supply chain on the worksheet. On a sheet of A3 paper, produce a poster showing the supply chain for your chosen supermarket. Explanations of each stage must be included, plus images.