Microsoft Word marketing doc

Origin and Growth 
The multiple shop system (Chain stores) was developed in the U.S.A. 
where the first chain, Great Atlantic and Pacific Tea com., was set up in 1859.
Subsequently in the U.K. a number of chain stores have been developed.

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R.W.Woolworths, Smith and Com. Boots etc. are considered to be famous 
chain stores in the U.K. In India chain stores have become popular to some 
extent only. The Bata Shoe Company, DCM., Binny and Usha Sales are some 
of the examples of chain stores in our country. The reasons for the rapid growth 
of the multiple shop system are population growth, economics of bulk buying, 
advantages of specialisation, emphasis on quality, rising cost of living etc. 
Organisation and Management 
Multiple shop system is organised generally as a joint stock company.
The management of the company lies with Board of Directors and the General 
Manager. Under General Manager the State Managers are working and under 
State Managers the District Managers will have to work for the operation of the 
stores. Each stores is headed by a store manager who works with the assistance 
of salesmen. 
Features of Multiple Shops 
The distinctive features of the multiple shop system are explained below. 
a) 
Cash Sales
Sales are made only on cash payment. 
b) 
Central Buying
The entire buying is undertaken by expert buyers at headquarters. 
c) 
Limited Lines of Articles
The stores deals in a single line of standardised goods. In order to attract 
the customers, they adopt standardised design, quality, appearance, 
packing of the products etc. 
d) 
Appearance
For easy recognition of the shop, they adopt a standardised design of 
their premises and window display. 
e) 
Prices
Prices are fixed by the management at Head Office only. The branch 
managers will have to sell the goods at a price fixed by the Head Office. 
f) 
Huge Capital
Multiple shops being large scale retail organisations require large amount 
of capital. Hence they are run as joint stock companies. 

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