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    CM 3 Wholesaling

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    SubratKumar
    The document discusses wholesaling and franchising. It defines wholesaling as reselling goods to retailers rather than consumers. It also defines franchising as a vertical management system where a franchisor provides a franchisee the license and assistance to do business in a specified area. The document outlines different types of wholesalers and franchising arrangements, and discusses the merits and demerits of both wholesaling and franchising.

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    CM 3 Wholesaling

    Uploaded by

    SubratKumar
    27 views11 pages
    The document discusses wholesaling and franchising. It defines wholesaling as reselling goods to retailers rather than consumers. It also defines franchising as a vertical management system where a franchisor provides a franchisee the license and assistance to do business in a specified area. The document outlines different types of wholesalers and franchising arrangements, and discusses the merits and demerits of both wholesaling and franchising.

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    Wholesaling distribution

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    The document discusses wholesaling and franchising. It defines wholesaling as reselling goods to retailers rather than consumers. It also defines franchising as a vertical management system where a franchisor provides a franchisee the license and assistance to do business in a specified area. The document outlines different types of wholesalers and franchising arrangements, and discusses the merits and demerits of both wholesaling and franchising.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views11 pages

    CM 3 Wholesaling

    Uploaded by

    SubratKumar
    The document discusses wholesaling and franchising. It defines wholesaling as reselling goods to retailers rather than consumers. It also defines franchising as a vertical management system where a franchisor provides a franchisee the license and assistance to do business in a specified area. The document outlines different types of wholesalers and franchising arrangements, and discusses the merits and demerits of both wholesaling and franchising.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Wholesaling

    Channel Management
    Wholesaling

    Purpose is resale
    No transaction with consumers
    Can be multi-brand/ single-brand

     In this chapter, only those wholesalers considered


    who are buying directly from manufacturers (via
    C&FAs). Wholesalers buying from distributors are not
    considered.

    Wholesaling
    Wholesaler Services
     Such wholesalers provide warehousing
     Buy from manufacturers on immediate payment
     Take up losses from retailers (unsold or damaged
    goods), at times at unusually high margins
     Regular market information to manufacturers
     After-sales/ installation services
     Effective inventory management for retailers/
    industrial buyers
     Credit to retailers/ industrial buyers (at high margins)

    Wholesaling
    Wholesaler Types
    General merchandise wholesalers
    - many brands
    - full-service
    - large variety of products
    Limited line merchandisers
    - specialises in one product category
    Cash and carry wholesalers
    - large warehouses
    - multi-line and multi-brand
    - Goods sold at very low rates but without credit
    - limited service merchant wholesalers
    Truck wholesalers
    - Transport perishable stocks to retailers
    - Work under bigger wholesalers
    - No credit
    Drop shippers
    - They buy but don’t take possession of stock
    - Take orders from buyers and enable transportation for sale
    - Coal, iron ore
    Agents & brokers
    -- Do not take title, but take physical possession
    - May represent more than one mfr Wholesaling
    Franchising

    A vertical management system in which one form


    (franchisor) provides another individual or firm
    (franchisee), for consideration, a licensed privilege to
    do business in a specified geographic area, along with
    assistance in organizing, training, merchandising, and
    management.

    Legal association

    Wholesaling
    Types of Franchising Arrangements

    Tied-house franchising system


    Franchisee sells one category of products from one
    franchisor

    Product/ trademark franchising


    A branded manufacturing house arranging to distribute its
    brands exclusively with a franchisee in a particular
    geographic area. (eg. car dealerships)

    Business format franchising


    Entire business concept is franchised (McDonald’s)

    Wholesaling
    Merits of Franchising

     Fast penetration into a market


     Franchisee- a more knowledgeable and experienced
    entity
     Franchisor’s income can multiply without handling
    operations
     Superior management practices for franchisee

    Wholesaling
    Demerits of Franchising

     Loss of control by franchisor


     Tough franchisee non-withdrawl clauses

    Wholesaling
    Causes of conflicts in the franchisor-
    franchisee relationships

     Misuse of proprietary information by franchisees


     Outstanding royalty dues
     Non-compliance concerning staff, premises, etc.
     Suppliers
    [Mc Donald’s India (P) Ltd vs Connaught Plaza
    Restaurants (P) Ltd]

    Wholesaling
    Assignment

    Which of the following as per you is best suited for a


    franchising model. How and why?

    a) custom-made furniture
    b) Soaps and detergents
    c) book store
    d) management consulting
    e) airconditioner

    Wholesaling
    Reference

    Sales and Distribution Management by Panda & Sahadev, 2 ed. [Chapter 20]
    https://www.youtube.com/watch?v=2wqN0U-paqo&t=785s

    https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmart-to-open-30-cash-and-
    carry-stores-in-next-three-years/articleshow/65100256.cms

    https://economictimes.indiatimes.com/markets/stocks/news/uniform-dealer-margins-boost-
    cromptons-sales/articleshow/64926688.cms

    https://economictimes.indiatimes.com/industry/cons-products/fmcg/future-group-to-ramp-up-
    supply-chain/articleshow/65834079.cms

    https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/vikram-bakshi-is-
    finally-out-and-mcdonalds-india-is-lovin-it/articleshow/69309704.cms?from=mdr

    https://www.restaurantindia.in/news/Papa-John-s-shuts-India-Operation.n15170

    https://www.youtube.com/watch?v=Vsw7EDbevhw

    Wholesaling

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