Retailing in India is still maturing. Each business needs to find out the exact model of retailing that suits its requirement. Retailing in FMCG can be very different than retailing in FMCS or consumer durables or electronics. It is surely an interesting topic that has attracted academicians to study the consumer behavior vis-a-vis the retailing formats. Each culture responds differently to different formats. The format that works in Brazil may fail in Russia and what works in Dubai can also work in South Africa.

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EXCELLENCE IN
RETAILING

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What’s Retailing All About?
• It’s about reaching out to consumers first
hand!!
– Through Formats that differentiate offerings
to suit customer needs to fulfill them every
time
– Through formats that (one or a
combination) provide true shopping value

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What’s Retailing All About?
• It’s about efficiently providing a vehicle
for mediation with the customers.
– With the right merchandise at the right
place in the right quantities at the right price
at the right time.

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Evolution of Retailing in India
• Emergence of Channels of Distribution
• Retailing & its Evolution
– From Shanties (temporary sheds) to
Professional Retailing
– Agrarianism to Industrialization to Mature
Markets to Global Competitiveness

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From Evolution to Revolution
• It’s not just the evolution of retailing
in India.
• It’s a revolution.
– To get the customer’s heart-share and
not even the mind-share.

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Retail Formats

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Formats of
Physical Store Retailing
• Formats by Size
• Departmental Stores / Super Markets
• Bazaar or Discount Formats
• Specialty Formats
• Category Killer Formats
Large Formats

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Formats of
Physical Store Retailing
• Stop Over Formats
• Kiosks & Dispensing Formats
Small Formats

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Conglomerates
• Malls
• Hyper Markets
• Plazas
• Bulk Marts
• Warehouse Formats

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Characteristics of
Retail Formats
• Store Image
• Location
• Service Type
• Merchandising Mix
• Presentation

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Key Attributes in
Customer Satisfaction
• Merchandise Assortment / Selection
• Merchandise Quality
• Pricing
• Locational Convenience
• Customer Service

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The Retail Environment
(Macro)
• The Composition of Retail Environment
• Factors Governing & Influencing Retail
Environment
– Political Factors (WTO)
– Economic Factors (FDI)
• Retailing & its Industry Status in India

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The Retail Environment Model
(Micro)
Staff Space
Stock
Customer

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• Customer focused not Real Estate
focused
• Facilities & Concessionaries
• Differentiate to Niche Retailing
• Concept Retailing
Current Retail Trends

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• Store Image, Type and Density
• Store Space Planning
• Store Circulation
Store Operations
Store Planning

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60%
15%
25% Selling
Circulation
Back Areas
Area Mix

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• Free Flow
• Grid
• Race Track
• Herringbone
• Spine
The Circulation Plan –
The “Silent Guide”

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• Store Location
Strategy
High Street
Destination
Mall Partners
• Determinants of Store
Location
Accessibility
Surroundings &
catchment profile
Availability Facilities
Store Location

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Functions of Store Operations
Planning
Organizing
Co-ordinating
Implementing
Controlling
Role of Store Operations

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• Licenses & Permissions
• Legal Compliance
• Routine Administration
Administrative Process

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• Sales Planning
• Personal Selling
Cross Selling
Upselling
• Sales Reports
Sales Process

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• Cashiering System Sequence
• Customer Check Out Strategy
• Cashier’s Role
Cashiering Process

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• Customer Service Vision & Strategy
• Customer Service Standards Determination
• Benchmarking
• MOT & Expectation Analysis
Customer Service Process

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• Staffing & Scheduling
• Grooming
• Floor Meeting
• Training
• Performance Management
• Personal Development
HR & Welfare Process

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• House Keeping
• Security
• Maintenance
Facilities & Concessions
Management Process

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• Key Successful
Parameters
Space Oriented
Stock Oriented
Staff Oriented
Customer Oriented
• Parameters Analysis,
Conclusions, Decisions
& Actions
(What Should Be
Those For In &
Out?)
Store Operating Parameters

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• Customer Segmentation
• Range Structure
• Merchandise Hierarchy & Merchandise
Planning
Buying & Merchandising
Creating the Merchandising & Buying
Vision

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• What is Buying & Merchandising
• Significance of Buying & Merchandising
• Sourcing & Vendor Management
• Trends & Forecasting Techniques
Principles of Buying
& Merchandising

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• Category Vision
• Category Definition
• Category Scorecard
• Category Review
• Category Functions
Category Management

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• Merchandise & Assortment Planning
• Micro-merchandising
• Line Presentation
• Replenishment Planning
Designing Merchandising
Working Practices

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• OTB
• Mark Down Planning
• Planogram (Sample sheet integrating
base stock, fixture mapping, etc.)
Designing Merchandising
Working Practices

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• Existing Measures of Performance
Store wise Performance (Stocks,
Space, Sales)
Partner Performance & Assessment
Dealer
Alliance Partner
Determining Key Performance
Indicators (KPIs)

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• Connect’s Ownership
• Business Manager
Business Estimates and Achievement
• Operations Manager
Category / Processes Ownership
• Trainer
RCC’s Role

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• Contribution of Technology to Retail Process
Speed, Accuracy
Data in required form for decision making
Customer satisfaction through Technology
The Role of Technology in
Retailing

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• Business Needs to Drive Technology
Requirements, not otherwise
• Deploy Instore Technologies for Customer
Convenience
Customer – Technology Adopters
• Deploy Technology for Speed, Accuracy & Total
Customer Satisfaction
Retail Technology
Implementation Factors

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• Review Technology Performance
• Innovate & Deploy New Technologies to
Stay Ahead of Competition
• Technology Scalability
Retail Technology Implementation
Factors (contd..)

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SERVICE MANAGEMENT
RETAIL STORES

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DISCIPLINE OF MARKET LEADERS
• Product Leadership
• Operational Excellence
• Customer Intimacy
Service Quality --- Why?

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• Intangibility
• Inseparability
• Heterogeneity
• Perishability
• Ownership
Characteristics of Service

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• Services are things a company
does / offers its customers
• Service is how well a company
does / offers what it does / offers
to its customers
Service Vs. Services

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• Product
• Price
• Promotion
• Place
• People in Services
• Physical Evidence in Services
• Process in Services
Services Marketing Mix
Beyond The Four P’s

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The Service Triangle
People Service
Strategy
Systems
Customer

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• Putting people
behind products and
services
• Treating customers
with respect,
individuality and
personal attention
What is Customer Service?

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• The Customer is the Business’s Biggest Asset
• The Customer pays all salaries, wages and
dividends
• The Customer will go where s/he receives the
best attention
• You must be your customer’s best choice ! !
Obsession With Customer

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• Not necessarily those who pay but all those
whom we serve
Who Is Our Customer?
• Paying Customer
• Colleagues
• Wife
• Parents
• Neighbors
• Boss
• Subordinates
• Children
• Relatives
• Environment
• Fellow Human Beings

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The Spirit of Service
Is an attitude based on
certain values & beliefs
about people, life and
work, that leads a
person to willingly serve
others and take pride in
his or her work.

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• People’s Skills
• Product
• Presentation
• Process
4 P’s Which Shape Customer’s
Decision to Buy

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• Dependability (Did the service provider do what
was promised?)
• Responsiveness (Was the service provided in a
timely manner?)
• Authority (Did the service provider elicit a
feeling of confidence in the customer during the
service delivery process?)
Five Universal Dimensions of
Service Process Quality

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• Empathy (Was the service provider able to take the
customer’s point of view?)
• Tangible Evidence (Was evidence left that the service
was indeed performed?)
Five Universal Dimensions of
Service Process Quality

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• Friendliness
• Understanding
• Fairness
• Control
• Options & Alternatives
• Information
Six Basic Customer Needs

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Bad Service v/s Good Service
My Expectations
My Treatment
My Treatment
Is less thanWhen
When exceeds
My Expectations This
=
Good
Service
This
=
Bad
Service
GOOD SERVICE IS GIVING CUSTOMERS A LITTLE
MORE THAN WHAT THEY EXPECT

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• The best service companies have a passion for
service excellence!!
• Providers of service excellence do it with
energy and enthusiasm
• Excellent service is a win-win experience!!
• In today’s competitive market place the
customer decides who wins and who loses
Excellent Service = Enjoying Giving People
Little More Than They Expect
Excellent Service

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Define the Customer’s “Moments of Truth”
Moments of Magic Moments of Misery
Moments of Truth

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The Customer is Respected
And Understood
And treated Genuinely
The foundations are laid for Quality Service
When what is
communicated at
Moments of Truth is that:
Moments of Truth & Service
Quality

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Perceived Value =
Services X Service
-----------------------
Price
Expectations & Perceived Value

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IMPORTANCE OF COMPLAINTS
Gives us another chance of improve our service
Doing the
job right
the first
time
Effective
Complaint
Handling
+ =
Increased
Customer
Satisfaction
& Brand
Loyalty
Handling Customer Complaints

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Do not return anger for anger
Avoid fuelling the anger
Keep control of the situation
Be quiet and listen
Do not make excuses
Managing Yourself

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Recognize the customer’s feelings
Probe
Solve problem
Soothe problem
Apologise whenever required
Managing Yourself

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• Attention
• Interest
• Desire
• Conviction
• Action
Stage of Selling

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• Pre-approach
• Approach
• Identifying wants & needs
• Presenting the Product or Service
Steps of Sale

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• Answering questions and objections
• Suggestion Selling
• Closing the Sale
• Post Sale Services
Steps of Sale

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• Zone of Recommendation
• Zone of Normality
• Zone of Tolerance
• Zone of Rejection
Four Zones of Customer Influence

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• When you are serving a customer, you
are on stage, so…..
• Are your dressed for the part?
• Do you know your lines?
• Do you understand the play?
You Are On Stage