Evaluating the Wheel of Retailing - Essay Example

Evaluating the Wheel of RetailingThe wheel pf retailing is more of an observation or a tactic than a formally accepted theory. It was initially an abstract concept that was later turned into a proper tangible concept that can be jolted down on a paper. The basic idea of the wheel of retailing is the tactic which leads a small business entered into its field and by the passage of time develops into a huge corporation or an immensely successful business. The means of this success is the trick which is referred to as the wheel of retailing.

The small business enters the market with a low priced product with a low reputation and a low profit margin basis. With the passage of time, the business develops and the outlet gains a good reputation and has a high price with high profit margins. This is done by competing with the giants of the field by producing good quality and economic rates. After this the business or the outlet of the business or the corporation itself becomes a highly famous name in the field and enjoys the highly respectable reputation.

A new and fairly small business comes in competition with it and undergoes the same process. The wheel, hence keeps rotating (Peckham, J. O. 1981).A very interesting example for the sake of studying and observing the concept of the wheel of retailing is a business located in Pennsylvania at frank ford avenue known as the Pizza Brain. The tactic applied by the owner and the founder of the business was that he started introducing the pizza, which is one of the most consumed fast foods all over the united stated, in fact all over the world, at an economical price as compared to the others.

This business was very tough to run because everyone knows the existence of other pizza chains in the country and how they are famous in terms of their quality. The founder of the Pizza Brain introduced a unique taste of the pizza with an affordable price. After that the reputation, which was very low at the beginning started to rise and with the passage of time, it rose to an extent that it started generating its regular customers. Another tactic adopted by the owner to raise the reputation was by introducing a pizza museum that is one of a kind in nature.

After the development of its reputation and its economy, the owner maintained the quality this entire period and started to raise the prices as it was now in a position to compete with the giants.Now the position of the Pizza Brain in the wheel of retailing is currently in its third stage, i.e. it is highly reputed as well as being very well rated and reviewed. Its prices are high but as the quality is maintained, it has a lot of customers on a daily basis. Now if another pizza business is opened in the locality, then it would not only have to compete with the big names in the field like pizza hut etc.

but also with Pizza Brain (Izraeli, D. (1972).ReferencesTop of FormPeckham, J. O. (1981). The wheel of marketing: An analysis and interpretation of what generally can be expected to happen to consumer sales of branded food products, household needs, toiletries, proprietary drug products when a series of marketing actions takes place : based on Nielsen retail index data. Place of publication not identified: publisher not identified.Bottom of FormTop of FormIzraeli, D. (1972). The three wheels of retailing.

Tel-Aviv: Tel-Aviv University, the Leon Recanati Graduate School of Business Administration.Bottom of Form