Page 22 - DMGT552_VISUAL_MERCHANDISING

Unit 1: Introduction to Retail

of retailers has led to the introduction of new tactics by manufactures such as everyday low Notes
pricing, partnership with retailers and increased use of direct marketing methods.
Some of the recent trends in retail trade are given below:

1. Branches: Some retail shops set up their branches in different areas to sell goods to
customers who find it inconvenient to go to the central branch. The central shop supplies
goods to its branches and coordinates and controls their operations. When a retail shop
becomes popular it may find it profitable to open new branches in the city. All the branches
deal in the same products. They are centrally owned and controlled. All the branches are
operated on similar lines. According to the Federal Trade Commission, it is “an
organisation owning, controlling interest in two or more establishments which sell
substantially similar merchandise at retail prices”. Gradually, the various branches become
a chain of stores owned by the same retailer. When the chain sells a wide variety of goods
it is called ‘variety store’. If the goods are sold at fixed prices, it may be described as a fixed
priced chain store.
2. Vending machines: A vending machine is a machine from which the buyer can get an
article by inserting coins in it. The articles sold by a vending machine are prepared and
standardised in quality. Vending machines are installed in busy shopping centres and at
public places such as railway stations and bus stands. In our country Mother Dairy milk,
soft drinks, ice cream, etc., are sold through vending machines. Thus, vending machines
represent automation in retailing. Vending machines provide quick service and
convenience to customers. However, it is expensive to instalment and maintains such
machines. Moreover, vending machines can be used only for selling a few products.

3. Packing: Packing means putting the products into a suitable package. Packing has become
important due to increasing competition and widening markets. Proper packing protects
the goods during transport and storage. It also gives individuality or identity to the
product. The brand name is attractively printed on the package. The information concerning
weight, price and use of the product can be printed or inserted inside the package. Thus,
packing helps to create demand and attract customers.
4. After sales service: In case of consumer durables such as car, television, refrigerator, air
conditioner, computer, washing machine, etc., consumers require regular repair and
maintenance service. Such service is called after sale service. It is required both during the
guarantee period and thereafter. During the guarantee period, after sale service is provided
free of charge. After the guarantee period, it is provided on charge. Prompt, courteous and
efficient after sale service, enables the seller to increase his reputation and satisfaction of
consumers.

A manufacturer can provide after sale service in the following alternate ways:
(i) Directly by sending the staff for repair and maintenance of the product as and when
it is out of order. The manufacturer may set up service centres at different places to
repair the product.
(ii) Making arrangements with distributors and dealers to provide the necessary service.
The manufacturer may upgrade the efficiency and reliability of dealers through
appropriate training programmes.
(iii) Putting greater focus on product design through more effective research, testing
and quality control thereby minimising breakdown and the need for after sale
service.

(iv) The manufacturer may leave it to independent service specialist firms to provide
after sale service.

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