Retail management

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full detail about the various elements of retail management

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Retail management

  1. 1. Retail Management and Elements of Retail Management 1
  2. 2. Group members Kunal pawar- 012001  Saurabh raut - 012003  Akshata Manjrekar - 012004  Jimly gogoi - 012012  UTPAL BADWAIK - 012024  2
  3. 3. Retail activity could be defined as: Any business that directs its making efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution. Vishal P 3
  4. 4. The nature of retail marketing The key aspects of retail marketing is an attitude of mind.  In making retail marketing decisions, retailers must consider the needs of the customers.  Retail marketing decisions are driven by what the shoppers need and want.  Retail marketing is therefore a philosophy and is all about satisfying the customers  Vishal P 4
  5. 5. The nature of retail marketing … What the customers regard as value and what they buy is decisive.  What the customers buy determines the nature of the retailer’s business.  The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits.  Vishal P 5
  6. 6. The nature of retail marketing Retailers must take the customers’ needs into consideration in retail operation.  Retail marketing is stimulating, quickpaced, and influential.   It encompasses a wide range of activities including: ◦ ◦ ◦ ◦ Environmental analysis Market research Consumer analysis Product planning etc. Vishal P 6
  7. 7. Importance of marketing in retailing       Marketing is a vital tool for every retailer, as it identifies current, unfulfilled needs and wants, which it defines and quantifies. Marketing determines which target groups the retailer should serve. Marketing could be seen as delivering an acceptable standard of living. Marketing can ensure complete satisfaction and sustained customer loyalty. Marketing depends on the efficient co-ordination of consumer prediction, product development, packaging design and influencing demand through appropriate communication medium. From these, a suitable mix is achieved. Saurabh R 7
  8. 8. Retail marketing objectives The retail marketing objective is a performance parameter which has been explicitly stated.  It can be stated in quantifiable terms and time terms so that results can be measured against it. Three types of retail objectives include: 1. Basic objective – those which defines retailer’s long-term purposes. 2. Goals – those which the retailer must achieve to be successful 3. Targets – short-term goals that require immediate achievement.  Saurabh R 8
  9. 9. Retail trade Multiples  Independents  Co-operatives  Mail order  Variety stores  Department stores  Yadnesh P 9
  10. 10. Multiples  Traditionally defined as enterprises with over ten shops. Supermarkets and super stores are clubbed together because they constitute a type of outlet which organizationally belongs to the classification of multiples. Yadnesh P 10
  11. 11. Independent The independent retailers have been reeling under the on slaught of the multiples. The battle between the multiples and the independents is over with the context existing among the multiples themselves.  There are 3 more reasons for expecting the continues survival of independents.  Geography  Market size  Product characteristics  Yadnesh P 11
  12. 12. Co-operatives There are 3 reasons of the erosim of the co-operatives market share:1. Constraints on management arising from ill-defined and non commercial objectives. 2. Inability to attract 3. Retain good arrangement 4. Limited access to external capital  Yadnesh P 12
  13. 13. Mail Order Mail Order prospered for 5 main reasons :1. Convince of shopping from the comfort of home. 2. The opportunity for agents to earn extra income. 3. Easy credit 4. Wide product 5. Free delivery  Kunal P 13
  14. 14. Variety stores They sell a wide range of merchandise traditionally displayed on counters for solution by customers.  The strength of variety stores are convenient location, width of choice, clarity of display, competitive pricing own branding and consistency.  Kunal P 14
  15. 15. Department Stores  These are mature retailing organization with origins in the 19th century. Unlike the cooperative they appeal to middle income groups. Selling at least 5 types of merchandise including moments wear on department basis. Kunal P 15
  16. 16. Elements of retail management Convenience.  Variety of selection .  Quality of production .  Help from sales person.  Reputation for integrity and fairness in dealings.  Services offered – delivery, credit, returned-goods privileges.  Value offered.  Jimly G 16
  17. 17. Consumers prefer conveniently located stores, either it should be close to their residence or office or business place near other shopping arcades.  For upper middle class and middle class consumers, parking lot for automobiles and two wheelers are an essential consideration.  Quality of products are essential features for expansive products, weather garments , jewellery , personal products and clothing etc.  The ―feel good’ ambience is specially important for consumers with higher disposable income.  Jimly G 17
  18. 18.     The attitude of sales person plays a significant role in the retail business. The retail stores display exclusive make or manufacturer’s brand brand products and consumers will visit those retail stores who are known for their quality and service. Some retail forms and outlets offer a wide range of financial incentives like zero interest installment scheme, bank financing and credit card facilities. Free delivery or home delivery, installation, one year free service and returned goods privileges are some of the additional incentives which help the consumers to make a purchase from a particular retailer. Jimly G 18
  19. 19. 5 Key Elements of a Successful Retail Display Product Placeme nt Measured Results Elements of Retail display Promotion Props Akshata M 19
  20. 20. Product    Identify the purpose of your retail display. Of course you want to sell more products—but first, get specific. Base your purpose on your target market and clients’ needs. You do not need to display all the items in your product line. Narrow your focus to a few relevant choices. Limit yourself to three or five products. Odd numbers are more appealing to the eyes. Be sure to include a variety of price points. Also feature testers and samples. Products that allow interaction increase the opportunity for a sale because most clients will not buy what they cannot try. Akshata M 20
  21. 21. Placement  Map out the location of your retail display. Dedicate your prime real estate—generally to the right of the entrance—to the featured display. Most clients will look and walk to the right when entering a room. Akshata M 21
  22. 22. Props   The most effective displays use the 80/20 rule of design: No more than 20% of the display should be props. Let your retail products be the stars and the decorations be the supporting cast. Select props that support the message or theme of your display. Props also can be used to add variety in height, texture and color to your display, which will draw attention to the products. Give yourself permission to try different arrangements of the products and props. Akshata M 22
  23. 23. Promotion   Don’t assume that simply creating a display will increase sales. Plan your promotional strategy. Start by thoroughly educating staff on the products and purpose of the retail display. The visual nature of a new retail display also makes it perfect for promoting on Facebook. Post photos and share information on the benefits of the products, and invite clients to stop in to see the new display and sample the products. Take advantage of online chatter to spread the word. Akshata M 23
  24. 24. Measure results  The key indicator—and primary goal—of your display is increased retail sales of the featured products. Measure results by tracking successful sales and the characteristics of their respective displays so that you can repeat them in the future. Other indicators of success may be more subtle, but should not be overlooked. Comments from clients— online and in person—and time spent interacting with the product are all indicators that your display is producing the desired result. Akshata M 24
  25. 25. Strategic retail planning  This is the process of developing and maintaining a strategic fit between the retail organisation’s capabilities and its changing marketing opportunities.  It relies on developing a clear corporate mission, supporting objectives, creating a sound business portfolio, and coordinating functional strategies. Utpal B 25
  26. 26. Case Study- Shoppers Stop   About Shoppers Stop Shoppers Stop is one of the first retail chains started in india in 1991 by the Raheja Group. It now boasts of 27 retail outlets across the country and is one of India's largest retail chains, having expanded from apparel and accessories to home furnishings and books under the Home Stop and Crossword Brands. Other Brands under the Shoppers Stop umbrella are MotherCare, Desi Cafe, Brio, Nuance, Arcelia, Timezone and Hypercity. Utpal B 26
  27. 27. The Challenge  Executives at the Shoppers Stop Group noticed their sales falling into the 80:20 pattern with loyalty card customers despite being only 15% of the base contributing over 70% of the revenues of Shoppers Stop.  The Group realized that since they have data on loyalty card holders, if they could understand who the customer really is, what she buys, when she buys and why, they may be able to fine tune their offerings to provide the customer a better experience and increase their share of wallet.  Utpal B 27
  28. 28. The solution    Shoppers Stop conceptualized 'Project Drishti', a data warehouse and mining project in 2007 and launched it in 2008 way ahead of competition. The objective of the project was to streamline data obtained from customers across all its stores and loyalty programs and convert it into analytics that could be used for decision making. Project Drishti led to the Group being able to identify and understand their target segments across various stores and programs and create meaningful targeted campaigns for their bigger spenders. It also enabled the company to identify cases where multiple stores in the same city were losing business to each other instead of external competitors. While the sales increase and customer base expansion achieved by Shoppers Stop till date is important, what is most important is the fact that Shoppers Stop has equipped itself with the weapon for the future- "Customer Intelligence." Ad this weapon will keep it ahead of competition till competitors do a catch up and build Utpal B 28 smarter intelligence.
  29. 29. THANK YOU 29

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