Btec Level 2 Diploma in Business

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Btec Level 2 Diploma in Business

• Unit 21
• Promotion Branding in Retail

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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

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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

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Retailer

• Someone who sells goods to a consumer.

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Types of Retail Outlets
P1

• Independent 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 MS)
• Relatively low prices, fast-moving lines,
  centralised buying

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Types of Retail Outlets
P1

• 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

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Survey of Brighouse Town Centre
P1

• 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

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Investigation into Two Retail Outlets
P1

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

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Example of a summary of an independent trader
Czerwicks

• 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

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Example of a summary of an independent trader
Czerwicks

• Display shelves on the right
• Serving area on left freshly made sandwiches
  and cheeses/deli counter
• Appropriate retail channel because
• They keep all the profit made
• They offer specialist food and drink to a niche
  market
• Good location in the town centre attracts
  lunchtime customers
• Can sell world wide through mail order and the
  internet increases profit.

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Example ofa Factsheet
P1
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Compare how two retailers operate
M1

• 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

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A Comparison
M1

• 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.

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Example Diagram Showing Store Format of Czerwicks
M1
Beer and Lager
Stairs down to wine cellar
Customer Flow
Product Displays
Serving Area and Deli Counter
Canned, non perishable goods and seasonal
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Evaluation of the Retail Channel used by XYZ
D1

• Name the retailer and the channel they use
• Explain of the channel used
• Explain the benefits of using this retail channel
• Explain the disadvantages of using this retail
  channel
• Overall, is this the best channel for this
  particular retailer?

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Channel
D1

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

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Supermarkets
D1

• 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

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Benefits of being a Supermarket
D1

• 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

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Disadvantages of being a Supermarket
D1

• 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)

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The Supply Chain
P2

• 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.

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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.

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Stage 1 Growing the Raw Materials
Coffee Growers
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Stage 1 Growing the Raw Materials

• 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 oil
• Fruit is harvested and used to produce jelly and
  jams
• Wheat is harvested and used to make flour and
  cereals

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Stage 1 How Growers Support Retailers

• 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

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Stage 2 Manufacturing and Processing the Products
Milk Production
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Stage 2 Manufacturing and Processing the Products

• 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

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Raw Materials Needed for a Tin of Heinz Baked
Beans
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Stage 2 How Manufacturers Support Retailers

• 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

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Stage 3 Delivery to a Wholesaler or RDC
(Regional Distribution Centre)
Tesco Regional Distribution Centre
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Stage 3 Delivery to a Wholesaler or RDC
(Regional Distribution Centre)

• 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.

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Stage 3 How Wholesalers and RDCs Support
Retailers

• Retailers can order all their goods from one
  wholesaler this saves time
• Retailers can order in bulk and receive
  discounts from the wholesaler

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Stage 4 Delivery to Retailers
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Haulage CompaniesDeliver goods to Retailers
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Stage 4 Delivery to Retailers
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Stage 4 How Haulage Firms Support Retailers
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Stage 5 Retailers display goods on shelves
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Task Two Posters
P2

• 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.