The application of the marketing concept to independent radio and appliance retail

Abstract

Independent Radio and Appliance retailers face very strong competition from chain groups, discounters and hypermarkets. These organisations rely on bulk-buying and negotiated deals to elicit favourable terms from suppl iers. Due to the volume of their turnover they can afford to work on lower profi t margins than the independent operator. Large marketing organisations also benefit from economi es of seal e in adverti si ng and promoti ons. In short the 1arge groups have a di fferenti al advantage over the small er i ndependents i n that thei r cost of sales and overhead structure is generally lower. The purpose of this study is to develop a marketing strategy for independent radio and appliance retailers which will enable them to survive, grow and trade profitably under current highly competitive conditions.