Prepare a booklet entitled
“The diversity of distribution channels in the retail industry “an introduction on what is distribution and why it is vital for companies to get it right.
• Give a brief description of how distribution is changing
• Explain the 4 channels of distribution giving examples from the retail industry
• With each example pay attention to factors facing the distribution channel, the sourcing of products and distribution processes
Your booklet should include:
• Channels used by large multiple retailers
• Channels used by small, independent retailers
Channels used by different sectors, e.g. clothing and food.
Unit 29 Understanding Retailing – Task 1 P1
You need to identify and locate the different types of retailer listed below. Apart from the bottom two these will be found in the area you are visiting today. The notes you make today will be used to complete the documentation for task P1 (see guidance following the table) and will also be used for M1 so please keep your notes.
Retailer type Name of retailer and time visited. Space plan the retailer Layout of the shop, displays, and walkways.
Store atmosphere/visual? Does this have any impact on the success of the retailer or its brand? Target Market and product base of retailer (age group, sex, income etc.) and key product range (what do they sell or what are they most famous for selling). Why do you think this is their target market? Location of retailer
What floor, situ.
Why do you think they picked this location?
, e.g. busy area, near similar retailers, etc.
Department stores
Independents
Discount stores
Specialist outlets
Multiple Chains
Catalogue stores
Supermarkets
Internet Stores *
What is a department store?
• Retail store that sells a wide variety of goods
• The store sales area must be at least 2,500sq meters
• It will contain many different departments, each of which deals in different goods or services (Clothing, household, beauty etc.)
• Selfridges, Debenhams, John Lewis and House of Fraser are examples
Independent store
• Generally defined as this because they are owner-managed.
• They generally specialise in one area of retail (skiing, jewellery, delicatessen etc.).
• The retailer must have less than 10 branches to be classified as this.
• Find examples
Supermarkets / Superstores and Hypermarkets
• Very large stores, selling a full range of food and household products.
• Found in town centres, but increasingly larger stores are built out of town, where parking is easy and free.
• Use Asda, Sainsbury, Tesco, Aldi, as examples.
Multiple variety stores
• Retailers that operate in a fairly narrow product area and all products are generally fast-moving lines, which mean they sell quickly.
• Boots, WH Smith, Halfords, Millets are examples
Catalogue
• Are able to sell a wide range of products from garden, household and electrical as their stocking costs are relatively lower than other retailers
• Offers a lower cost base as the owner does not have to pay out for large premises
• Next Directory, Argos, Staples, are examples
Internet retailers
• Very high growth area in the UK as customers can avoid queues and can compare competing products very quickly.
• Purchasing can be undertaken 24-7.
• These sellers do not have a physical store base.
• ASOS, Amazon, E-bay
Discount Stores
• The products as they could not normally be sold by their original manufacturer.
They are normally found in town centres but increasingly in retail parks.
• Primark, Matalan, Superdrug are examples.
Specialist Outlet
• Apple, PC world.
Task 2 – Store visit to John Lewis.
“Monty the Penguin delivers 903% uptick in online brand consumption for John Lewis”
• Investigate and create a report about the phenomenon of Monty and Mabel. The penguins of John Lewis.
• Provide evidence on how they incorporated the Christmas theme and have adapted the original concept to their retail environment which has led to the increase of sales and branding consistency.
You will need to take photographs as evidence, show the store staff your ID student badge.
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