Retail Marketing• Def of retailing- It is the set of business activities that adds value to the product and services sold to the customers for their personal or family use.• Set of business activities of selling, movement, breaking bulk etc• Def of retail- word derived from French word “retaillier”. Which means cut of a piece or to break bulk.• Def of retailer-It is a business that sells products or services or both to consumers for their personal or family use.• retailers achieves 3 rights i.e. merchandise, price and place. provides markets to producer. links M to C.• dist channel-a set of firms that facilitates the movement of products from pom to pos to the ultimate consumer. Some r wholesalers and also retailers. Vertical integration- all in one i.e. wholesaling +retailing +movement etc e.g. marketers.
Significance and importance of retailing• Functions performed by retailers- 1-Providing an assortment of products and services, 2-breaking bulk, 3- holding inventory, 4- providing services .• 1- supermarket typically carry 20000 to 30000 items made by 4 to 500 co’s.Enables C a wide choice when Mfrs r usually make specialized products, retailer specializes in assortments e.g.health+food +beauty, clothing +accessories etc• 2-it is cost effective for mfrs to pack and ship in large whereas easier for C to buy small manageable quantities from R. a very important role r plays.• 3-inventory of- user friendly ,broken and made small packs and make it available to C on time who keeps very small and saves cost of holding as R anyway maintains stock ,significantly imp for perishable goods.• 4-Easy for C to buy and use, offer credit,display,C can test, home delivery, day-night open, give additional info.
Significance and importance cont-• Value addition to products and services thru 4 functions. towards M and C and also communities in all sectors including paint dealer.• Retailing affects every facet of life as it covers all fmcg ,fmcd, pharmacy-- and also all services including parlors, studies, health ---Internet on line,t.v. shopping, movie tickets and so on• Employment- huge in both urban and rural, in organized and traditional.• Trigger consumption as economic activity.• Provides wide distribution network globally• Provides entrepreneurial opportunities.• Provides management opportunities, carrier opportunities like store mgt,merchandise mgt,corporate staff of system,advt /promo,finance,r-estateh.r. design.
• Future prospects for retailing-Grocery retailing being traditional and pioneered in our country and considering changing consumer buying behavior and growth indicators it is very bright. It will open up 3-4 formats and balance of power will shift fro manufacturer or service providers to consumer. Many will get employment thru specialized knowledge in retail service industry• Retail outlet as channel power-• Retailing as an integral part of services marketing mix as-place- related to the distribution and availability of products in various locations. As POS or POP customers are first introduced to the product at the retail store. Co’s get feedback on the performance of product and also consumer expectations. Because of its communication capabilities commands position of influencing consumer decisions
Indian vs. global scenario• Global- worth more than 6.5 trillions in organized sector. US has 80% organized retailing fallowed by Europe 70%, Malaysia and, Thailand 50, Brazil and Argentina 40, Philippines 35 Indonesia 25 and South Korea 15%, china 10%. In US alone 22 million people are employed in 2-mil stores i.e.20 %employment in the sector. stores are customer –centric with continuous innovations• Locally mostly in unorganized sector with over 12 ml outlets.96% are less than 500 sft, Per capita retail space is 2 sft vs. 16 in US and so lowest in world. More than 9 outlets per 1000 people in India, which is largest in the world. Increasing nuclear families, working women, work pressures, increased commuting time- organized retail become priority for C.• Presently modern store retailing is only 2-3%of total retail goods value worth 180-billion usd.present modern retail is equal to one single store of wall mart. Total R-business presently in India is approx 800 thousand corers. Organized retail in 2000 was 20 thousand corers now in 05 gone up to 160 thousand corers 8 fold against total R- increase in 5 years is only 2 fold.