Btec Level 2 Btec Level 2 Diploma in Diploma in BusinessBusiness

Unit 21

Promotion & Promotion & Branding in RetailBranding in Retail

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

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

Retailer

Someone who sells goods to a consumer.

Types of Retail OutletsTypes of Retail OutletsIndependent 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

P1

Types of Retail OutletsTypes 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

P1

Survey of Brighouse Town Centre

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

P1

Investigation into Two Retail Outlets

1. Choose TWO retailers in Brighouse. ONE must be a SUPERMARKET

2. 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

P1

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

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:

1. They keep all the profit made2. They offer specialist food and drink to a “niche”

market3. Good location in the town centre – attracts

lunchtime customers4. Can sell world wide through mail order and the

internet – increases profit.

Example ofa

Factsheet

P1

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

M1

A Comparison …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.

M1

Example Diagram Showing Store Format of Czerwick’s

ServingArea andDeliCounter

Beer and Lager

ProductDisplays

Stairsdown towinecellar Customer

Flow

Canned, non perishable goods and seasonal

M1

Evaluation of the Retail Channel used by XYZ

Name the retailer and the channel they use

Explain of the channel usedExplain the benefits of using this retail

channelExplain the disadvantages of using this

retail channelOverall, is this the best channel for this

particular retailer?

D1

Channel

•Independent Retailer•Market Retailer•Chain Store•Supermarket•Non-profit Retailer

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

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

D1

Disadvantages of being a Supermarket

• 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)

D1

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.

P2

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.

Stage 1: Growing the Raw Materials

Coffee Growers

• 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 oilFruit is harvested and used to produce jelly and jamsWheat is harvested and used to make flour and

cereals

Stage 1: Growing the Raw Materials

• 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

Stage 1: How Growers Support Retailers

Stage 2: Manufacturing and Processing the

Products

Milk Production

• 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

Stage 2: Manufacturing and Processing the

Products

Raw Materials Needed for a Tin of Heinz Baked Beans

• 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

Stage 2: How Manufacturers Support

Retailers

Stage 3: Delivery to a Wholesaler or RDC (Regional

Distribution Centre)

Tesco RegionalDistributionCentre

• 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”.

Stage 3: Delivery to a Wholesaler or RDC (Regional

Distribution Centre)

• Retailers can order all their goods from one wholesaler – this saves time

• Retailers can order in bulk and receive discounts from the wholesaler

Stage 3: How Wholesalers and RDCs

Support Retailers

Stage 4: Delivery to Retailers

Haulage Companies:Deliver goods to Retailers

Stage 4: Delivery to Retailers

Stage 4: How Haulage Firms Support Retailers

Stage 5: Retailers display goods on shelves

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.

P2