Chapter 1
Upcoming SlideShare
Loading in...5
×
 

Chapter 1

on

  • 1,198 views

 

Statistics

Views

Total Views
1,198
Views on SlideShare
1,198
Embed Views
0

Actions

Likes
0
Downloads
68
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Chapter 1 Chapter 1 Presentation Transcript

    • RETAIL MANAGEMENT
    • Chapter - 1RETAILING: ROLE, RELEVANCE AND TRENDS
    • What is retailing?Retailing: a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family useRetailer: a person, agent, agency, company or organization instrumental in reaching the goods, merchandise, or services to the ultimate consumerCountries that have enjoyed the greatest economic and social progress have been those with a strong retail sectorOver the last decade there have been sweeping changes in the general retailing business
    • Retail industry and economyRetail business is the largest private industry Retail is ahead of finance and engineering and contributes over 8 per cent of GDP in the western countries Over 50 of the Fortune 500 and about 25 of the Asian Top 200 companies are retailersToday, in some developed countries, retail businesses have shares as large as 40 per cent of the marketThe significance of the retail business has increased with the fast growth in the service sector
    • Retail industry in IndiaRetail forecasts in India:- the business in India is expected to reach Rs. 25,000 billion in 2008- growth of organized retailing in both food and non-food segments- proportion of sales through organized retailingestimated, increase by 8% in 2010 Emergence of organized retailing:-India to have over 700 shopping malls by 2015 (400 operational malls in 2010)- land developers rushing to cash in on the booming retail business
    • Characteristics of retailingDirect end-user interactionSole point in the value chain to provide platform for promotionsSales at the retail level is generally in smaller unit sizesLocation is a critical factor for retail businessRetail services are as important as core productsA larger number of retail units as compared to other members present in the value chain
    • Functions of retailingSortingBreaking bulkHolding stockAdditional servicesChannel of communicationTransport and advertising functions
    • Activities performed by retailers Arrange for assortment of offerings Breaking quantity Holding stock Extending services
    • Categorizing retailersNumber of outletsMargin vs TurnoverLocationSize
    • Trends in retail formats Mom and Pop Stores and traditional kirana stores E-commerce Department Stores Discount Stores Category Killers Specialty Stores E-tailers
    • Relationships between retailers andsuppliersThe retail sector is critically dependent on its suppliers for effective operation and the profitability of its businessSeveral socio-economic and demographic factors are considered by manufacturers for identifying the ideal retail format mix for its productsThis is illustrated by the washing soap category in India and the resultant retail format preferences
    • Retail format mix adopted bymanufacturers for soaps Soap is targeted towards women as they are the chief decision-makers in soap purchase. Medicated positioning like germ killing and anti-bacterial are marketed to families. About 75% of the soaps are bought through these following types of outlets.Kirana storesPan-beedi shopsDepartment stores
    • Retail strategyDefine the business of the firm in terms of orientation towards a particular sectorSet short-term and long-term objectives with regard to image and profitabilityIdentify the target market and direct efforts on the basis of the customers characteristics and needsDecide the broad direction the company must take in futureImplement an integrated plan that encompasses all aspects of retailing like pricing, location, and channel decisionsEvaluate and revise the plan depending on the nature of the internal and external environment
    • Retail concepts An essential part of the retailing strategy, the retailing concept is essentially a customer-centred, company- wide approach to developing and implementing a marketing strategy. The retailing concept covers four broad areas:Customer orientationGoal orientationValue driven approachCoordinated effort
    • The changing face of retailingRole of the Internet- Does the size of the retail organization play a big part in adapting easily to the Internet?- Is the product/service offering also a prime determinant of cyber retailing?Branding through retailers- How do retailers choose which brands to display?- Why do many new products fail in the marketplace- How can manufacturers maximize the brand opportunity in a given retail outlet?- What is future of Lifestyle Clustering?- Vertical retail concepts are increasing in popularityConsumption related mega trends
    • Drivers of success in the retail sectorCustomers are the driving force in changeRe-evaluating the marketing planAdvanced education for retailers is critical for growthStrong visual recognitionThe workplace challengePlanning for success