INTRODUCTION A marketing channel is an organized network of agencies and institutions which, in combination, perform all the activities required to link producers with users to accomplish the marketing task. This channel must be designed such that it delivers a level of value to the customer that creates a sustainable competitive advantage for the supply chain. Today, our main focus is on “Retailing” aspect. Retailing involves all the activities of selling products and services to consumers for their personal or family use.
Department stores, like Macy’s, discount stores like Wal-Mart and K-Mart, and specialty stores like The Gap and Toys ‘R’ Us, are all examples of retail stores. Service providers, like dentists, hotels and hair salons, and on-line stores, like Amazon. com, are also retailers. Many businesses, like Home Depot, are both wholesalers and retailers because they sell to consumers and building contractors. WHY IS RETAILING IMPORTANT? As the final link between consumers and manufacturers, retailers are a vital part of the business world.
1. Retailers add value to products by making it easier for manufactures to sell and consumers to buy.
It would be very costly and time consuming for consumers to locate, contact and make a purchase from the manufacturer every time they wanted to buy a candy bar, a sweater or a bar of soap. Similarly, it would be very costly for the manufactures of these products to locate and distribute them to consumers individually. 2. Retailers also provide services that make it less risky and more fun to buy products. They have salespeople on hand who can answer questions, may offer credit, and display products so that consumers know what is available and can see it before buying. . In addition, retailers may provide many extra services, from personal shopping to gift wrapping to delivery, that increase the value of products and services to consumer Manufacturers Wholesalers Retailers Consumers RETAILER CATEGORIES & THEIR TARGET MARKET Retailers sell in many different formats with some requiring consumers visit a physical location while others sell to customers in a virtual space. It should be noted that in Bangladesh, not all types of retailers are available.
My reflection paper focuses on the types of retailers available in Bangladesh and about their service. Different retailers provide different services to the customers. For instance, the customer service at Agora will be far different from the customer service of the city market. The target market is also different for each retailer. The target market of Bangladeshi retailers can be categorized in the following sections: STORE RETAILERS IN BANGLADESH Store retailers are quite popular in Bangladesh. Types of retailer available in our country are as follow: 1) Department Stores
These retailers are general merchandisers offering mid-to-high quality products and strong level of services, though in most cases these retailers would not fall into the full-service category. While department stores are classified as general merchandisers some carry a more selective product line. For instance, while Sears carries a wide range of products from hardware to cosmetics, Nordstrom focuses their products on clothing and personal care products. In Bangladesh, the most common name is Almas, Priyo and PQS. It is easy to find toys, cosmetics, apparels, shoes and so forth. So the range of products sold by them is highly diversified.
The target groups for these retailers are specialty market. 2) Category Killers or Big Box Store Many major retail chains have taken what were previously narrowly focused, small specialty store concepts and have expanded them to create large specialty stores. A large retail chain store that is dominant in its product category. This type of store generally offers an extensive selection of merchandise at prices so low that smaller stores cannot compete. The “category killers” are found in such specialty areas as electronic (e. g. , Best Buy), office supplies (e. g. , Staples) and sporting goods (e. g. , Sport Authority).
In Bangladesh, there is a presence of this kind of retailers like BATA, Apex, Diamond World, Artisti Collection, etc. They all have specialized themselves in one particular product category. 3) Super Store or Hypermarket A hypermarket or a superstore combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine weekly shopping needs in one. Wal- Mart, Mustofa in Singapore falls under this segment.
However, in Bangladesh, its very difficult to find this kind examples but Jamuna Future Park or Bashundhara City could be a close proximity as they provide large parking lot and wide variety of shopping items. 4) Supermarket These are markets which are small compared to hypermarkets. In most cases these markets are self served. Their target consumers are not really the mass market. They lie somewhere in between the specialty market and the mass market. In Bangladesh the perfect example of super market is Nandan, Agora and Meena Baazar. They are the leaders in super market industry.
The market is self served so they don’t have to worry much about the customer service. 5) City Market City market is quite available in Bangladesh. The famous city markets of Dhaka are New Market, Karwan Bazar and Town hall market. The price is very cheap and the customer service is low as well. The sellers don’t have to pay high rent for their shopping carts, and so they can charge lower prices. The target customers are mass market. In terms of profit, these sorts of market are the most profitable. 6) Convenience Store They are small stores that carry a limited line of high-turnover convenience goods.
They are the stores which are just located besides our house. In Bangladesh they are widely available. The target customer is again the mass market. The level of customer service sometimes depends on the personal relation with the seller. CONCERN OF RETAILERS Retailers are faced with many issues as they attempt to be successful. The key issues include: I. Customer Satisfaction – Retailers know that satisfied customers are loyal customers. Consequently, retailers must develop strategies intended to build relationships that result in customers returning to make more purchases. II.
Ability to Acquire the Right Products – A customer is satisfied if they can purchase the right products of their needs. Thus, a retailer’s important objective is to identify the products customers will demand. III. Product Presentation – Products must be presented or merchandised to customers in a way that generates interest. IV. Traffic Building – Like any marketer, retailers must use promotional methods such as advertising to build customer interests. V. Layout– For many retailers designing the right shopping atmosphere (e. g. , objects, light, and sound) can add to the appeal of a store. VI.
Location – Well placed stores with high visibility and easy access, attract more customers VII. Keeping Pace With Technology – Usage of technology for efficiency like customer relationship management software, scanners, self-serve checkout, etc. CONCLUSION The prospect of store retailing in Bangladesh is quite profitable where this sector is in growing stage. Moreover, other than non-store retailing, franchising has a demand in this economy. Bangladesh people are not familiarized with the concept of non-store retailing yet. Investment in this sector could give a new perspective in Bangladesh. Words: 1193
Cite this Retailing Sector in Bangladesh
Retailing Sector in Bangladesh. (2018, Aug 06). Retrieved from https://graduateway.com/retailing-sector-in-bangladesh/