BRANDING AND PACKAGING:

1. 

Features:

·         Branding means the selling of goods under a trademark or brand name of the manufacturer, wholesaler or retailer. The trademark is clearly displayed on the package or the container.

• The aim is to differentiate the goods of one manufacturer from those of others.
• Branded goods are of uniform size, weight, and quality and sometimes price.
• Packaging of goods serves as a protection for the products gives them an attractive appearance and helps to identify branded products.

Advantages to Manufacturer:

·         The manufacturer is able to create brand loyalty amongst consumers for his brand of products.

• It increases turnover and results in economies of scale.

Advantages to the Retailer:

·         The retailer does not have to weigh or pack the goods.

• As instructions are printed on the labels of goods, there is no need for the retailer to have specialized knowledge.
• The retailer need not advertise branded goods.
• The retailer can offer self-service as the goods are already branded and packed.

Advantages to the customer:

·         The customers need not waste time inspecting the goods as they are already branded and packed.

• Customers may be able to enjoy a wider choice of goods.
• Customers are well informed about the product as the instructions are printed on the labels of the products.

Disadvantages:

·         Manufacturers have to spend large amounts of money on competitive advertising.

• A retailer has to stock different brands of the same product to meet consumers’ demand.
• Branding and packaging increases the price of goods for consumers.
• Branding leads to imitation of goods, which affects customers.

2. SELF SERVICE:

Features:

·         The customer is allowed to choose the products by himself with a trolley or a basket.

• This system is widely used by large retailers.
• Self-service is impossible without branding and packaging.
• This service has been developed to make shopping convenient for the modern busy housewives.

Advantages to the Retailer:

·         It is very economical as it cuts down the cost of employing shop assistants.

• Self-service increases turnover as it encourages impulsive buying.

Advantages to the Customers:

·         The customer can select the goods he needs quickly as they are already pre-packed.

• The customer can take his own time to select the goods without pressure from shop assistants.

Disadvantages:

·         Much capital is needed, as shops must be large and spacious.

• More variety of goods is needed. This result in capital tied up in stock.
• Self-service leads to pilfering and shoplifting.
• Customers are deprived of personal service.
• Customers may be tempted to buy goods they do not require.
• Safety measures like cameras, mirrors, etc, have to be installed to avoid pilfering.

3. AFTER-SALES SERVICE

1.    After-sales service is an undertaking made by the retailer, or sometimes the manufacturer or its agent, to repair any faults which occur to the article sold within a certain time. Sometimes, the undertaking could also be to provide some maintenance service at regular intervals for a definite period of time from the time of sale of the article to ensure the efficiency of the article.

2. Sometimes, this undertaking is known as a warranty and the period that such an undertaking holds is the warranty period.

3. After-sales services are normally provided for permanent or durable goods such as machinery, motor cars, television sets, and other domestic electrical appliances.

4. Since durable goods and machinery are highly technical and complex, retailers who are normally trained agents of the manufacturer, or the manufacturer's sole agent undertake the all-important task of providing after-sales service, for a fixed charge.

Positive effects of after-sales service

 

 On the manufacturer and the retailer

1. Good and efficient after-sales service gives the product a good image and increases its competitiveness with its rivals (i.e. the same type of product, but of a different brand). Thus, its sales may increase. For example, consumers would certainly hesitate to buy a particular make of car if it is reputed to come with poor after-sales service.

 

On the consumer

1. He is assured of an efficiently working product  at least within the warranty period.

2. Should mechanical faults become apparent after the article is in use, the consumer is assured of getting it repaired free of charge if it is still within the warranty period. If the fault is still not rectified, he may get a replacement.

3. He is assured of expert technical advice with regard to maintenance and use of the article since the manufacturer would ensure that the technical staff providing the after-sales service are properly trained.

Negative effects of after-sales service

On the manufacturer and the retailer

1.    High overheads are needed to maintain a technically-trained staff. Sometimes, there is the need to maintain workshops fitted with proper equipment at strategic points throughout the country.

2. Sometimes, there is the need to replace a defective article if the fault cannot be detected or is beyond repair. The replacements have to be written off as losses.

On the consumer

1. More often than not, the cost of after-sales services is included in the selling price of the article. To that extent, the consumer is paying a higher price for the good, especially if he does not avail himself of such services.

2.    After-sales service is only available during the warranty period. If the fault is only detected after this period, the consumer has to pay the repair bill himself.

4. BAR CODING

Instead of using price tags for each item of good, bar codes are used nowadays. A bar code consists of parallel black stripes of different widths with different spacing between the stripes, printed on the wrapper itself. The arrangement of the stripes can be read by using special scanners. The information is then sent to a computer to be processed. Information as to type of goods, its price and weight can be readily accessed. For example, the UPC (Universal Product Code) bar code system is widely used in the supermarket industry for standard recognition for goods sold and manufactured.

Positive effects of bar coding:

On the retailer

1. It saves time and hence labour cost, since vital information such as price, type of good can be read accurately, easily and quickly by special scanners that are linked to computers at the checkout points. This avoids the possibility of human error if the counter personnel has to key in vital information. Such information will then be passed on to a central computer. The retailer can make use of the data thus collected to manage his business efficiently.

2. It helps management greatly in controlling and supervising the movement of inventory in the premises. The retailer will be able to know at the end of the day how much of each type of good was sold. New inventory can then be ordered whenever the need arises. The retailer saves because he need not hold excess stock.

 On the customer

The time taken by the cashier to arrive at the total amount payable by the customer is shorter. Thus, the customer can check out faster.

Negative effects of bar coding

 On the retailer

1. A high initial capital outlay in terms of buying equipment and training of staff is needed. The whole retail outlet has to be fully computerized.

On the customer    

1. He does not remember the cost of each item he intends to buy since the bar code can only be read by the special scanner. He is then not able to do a quick calculation of the prices before he pays at the cash counter.

5. SHOPPING COMPLEXES OR PRECINCTS:

Features:

·         A shopping complex is a large multi storied building located in the town centre, consisting of many shop units, each owned by different individuals.

• Each shop may sell different types of goods.
• A wide range of goods and services are available in a shopping complex.
• Shoppers can enjoy ‘one stop’ shopping, as they buy all goods they require under one roof.
• Amenities such as car parking, lifts, air-conditioning, restaurants, etc, are provided.

6. LOYALTY CARDS

Loyalty Cards are plastic cards issued by large—scale retailers to their customers to try to keep the customers rather than let them go to the competitors. This is often used by supermarkets. In this technique, customers are given cash back on purchases when the customer has gained sufficient points. Sometimes, the customers with loyalty cards are given special offers. This technique is often used by airlines who give ‘air miles’ and reward loyal customers with free flights.