MARK301 Lecture Notes - Lecture 22: The Home Depot, Category Killer, Lululemon Athletica
16 Nov 2016
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Retailing: all activities involved in selling products or services directly to final consumers for personal, non business use. Amount of service offered: self serve, eg. dollar stores, convenience stores, limited service, eg. home depot, canadian tire, full service. Breadth and depth of product lines: specialty stores: narrow product line, deep assortment. Store design: layout, retailers maximize exposure and time. Franchising organization: long term cooperative relationship between franchisor and one or more franchisees. Most franchises have a combination of owning store themselves and have a franchise. Rank of a franchise is based on stability, growth, net worth. A franchise provides: an established brand name, co(cid:373)pa(cid:374)y"s (cid:272)a(cid:374) gro(cid:449) faster (cid:271)e(cid:272)ause the (cid:272)o(cid:373)pa(cid:374)y does(cid:374)"t ha(cid:448)e to invest in the business, set up training and marketing support, access to market research. Disadvantages of a franchise: less autonomy in business decisions, restricted territory in which you may operate or promote business, ongoing payments and fees.
