Retail Business Assignment

Assignment Introduction to Retail

Chapter 1 - 5

Purposed by :

Made Pradnyana Putra

015 2012 00040

Business Administration Class 2 2012

President University

Jababeka Education Park

Ki Hajar Dewantara street, Jababeka City,

Cikarang Baru, Bekasi 17550.

Title     : Week 1 - Chapter 1 – Slide 1.

 

1.      My Favorite retailer is Fisik Sport station, why I choose it because I’m interesting in doing sports, especially futsall sport. Fisik Sport station is retail shop which is sell many kind of sports stuff such as futsall shoes, ball, bag, futsall shock, etc. The location of Fisik sports station in Mall Lippo Cikarang.

The Criteria that I choose to make decision to choose that retailer are:

a.       Promotion almost every day.

b.      Customer service is good.

c.       Products are branded.

d.      The products display make customers easy to find what they want.

e.       The location still in Cikarang area.

f.       They also use social media to make communication to customers.

Base on my opinion, the other competitor can do more than my criteria above, I mean that the other competitor offer more promotion like give more discount to customers, increasing quality of customers service, the location more near than that retailer and also keep communicate with their customers if they offer some promotion. 

2.      From pros side, that company will earn more profit, because they have their own type to sell their product, as we know Polo Ralph Lauren is global brand that sell their product almost in all country in the world, therefore they will earn more profit from that case.

From Cons side, if one company have their own retail facility market like Polo Ralph Lauren it will effect in new brand for the other company, they will hard to build their new brand, because they just sell in their small market.

3.     

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Yes, I believe that customer services in retailing will improving, because customers services is the one of decision variable in retailing. The purpose of the company sell their product is customers satisfaction, base on that reason  all company try to choose many kind of way to get customers satisfaction, and make a good dealing in customers services is the one way to get it. The effect when we offer good customers service to the customers we will get what we call it a testimonial by mouth to mouth, it will give very good promotion, off course our sales will be increasing.

4.      My favorite regional retail shop is Fisik Sport station and MM market for national is Alfa Mart and Indo Mart, for global market is Adidas Sport station. Base on my opinion, all retailer have a chance to join and compete in global market, but the first they must do is set their vision and mission. The vision and mission that company who want join and compete with global market must oriented to global market. After they set their vision and mission (goal) they must concern to manage what we call it decision variable in retailing, they must set their strategy and concern in this kind of variable :

1. Customer Service
2. Merchandise Assortment
3. Location
4. Communication Mix      
5. Pricing
6. Store Design and Display

If that kind of variable already manage and the end are good, I believe that the regional and the national retailer can join and compete with other company in global market.

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Title     : Week 2 - Chapter 2 and 3 – Slide 2.

1.      The characteristic of each of the ownership forms are :

a)      Independent

·         An independent retailer owns one retail unit.

·         There are 2.2 million independent U.S. retailers.

·         70% of independents operated by owners and their families.

·         Capitalize on a targeted customer base and please shoppers in a friendly, folksy way. WOM communication is very important.

b)      Chain

·         Operate multiple outlets under common ownership

·         Engage in some level of centralized or coordinated purchasing and decision making

·         In the U.S., there are roughly 110,000 retail chains operating about 900,000 establishments

·         Benefit from their widely known image and from economies of scales and mass promotion possibilities.

c)      Franchising

·         A contractual agreement between a franchisor and a retail franchisee that allows the franchisee to conduct business under an established name and according to a given pattern of business

·         Franchisee pays an initial fee and a monthly percentage of gross sales in exchange for the exclusive rights to sell goods and services in an area

·         Franchisors have strong geographic coverage-due to franchisee investments- and the motivation of franchisees as owner operators

d)     Leased Department

·         A leased department is a department in a retail store that is rented to an outside party.

ü 

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The proprietor is responsible for all aspects of its business and pays a percentage of sales as rent.

ü  The department store sets operating restrictions to ensure consistency and coordination.

e)      Vertical Marketing System

·         Consists of all the levels of independently owned business along a channel of distribution.

·         Goods and services are normally distributed through one of these systems: independently, partially integrated, and fully integrated.

·         A vertical integrated channel gives a firm greater control over sources of supply.

f)       Consumer Cooperative

·         It is a retail firm owned by its customer members.

·         A group of consumers invests, elects officers, manages operations, and shares the profits or savings that accrue.

·         The most popular in food retailing.

2.      Ease on entry has less impact on the chain of retailers then that of independent retailers. This is because of following reasons, the reasons are :

a)      The chain of retailers have more contacts that they make any market an easy entrant.

b)      They have no problems regarding the investment so they will invest a lot wherever they enter so the locals will also be benefited.

c)      They have a recognizable brand name which will make the customers to repeatedly buy in their retail stores. So they will receive a huge market as soon they enter.

d)     The independent retailers will hesitate to invest a lot regarding the risks involved.

e)      The chain of retailers may not receive profit in all areas they operate but overall they will get profit

f)      

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But the independent investors have to get profit in the certain store which they open.

So if the entry is easy, the independent investors will be more benefit than chain of retailers.

3.      The basics are the same. Both of this ownerships form have store or shop more than one. But the different are :

·         Chain store is usually corporate owned. The highest ranking person on site is the branch manager, but he or she has very little decision making authority.

·         Franchise is where an independent owner buys the corporate structure, and obtains a license to do business as a store of the same name and design. He has many options to make his store his own, as long as his variation does not conflict with corporate policies. 

The franchise owner is subject to following rules and restrictions of the corporate office, and usually has to pay annual license fees and ongoing royalties on sales. In return, the corporate office provides extensive training, operating support and usually a generous advertising support.

4.      The department store want to lease space to an outside operator rather than run a business because they can get benefit from that side, such as :

·         provides one-stop shopping to customers.

·         lessees handle management.

·         reduces store costs.

·         provides a stream of revenue.

5.     

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