Winning at RetailCreating an impact where it matters!
Contents•   Understanding Retail & its Classifications•   Developing a Winning Retail Strategy•   Managing the Customer Ex...
Retail Defined• The word retail is derived from the French word           “retailer” which means           “to cut a piece...
Understanding Retail• Retailing involves a direct interface with the  customers and the coordination of business  activiti...
Introduction to Retailing• Retailing business activity involve Selling Goods &  Services to Consumers for their Personal, ...
A Typical Channel of DistributionManufacturer          Wholesaler                       Retailer                          ...
Retailer’s Role in the Sorting Process Manufacturer                       Brand A   Brand A                         Custom...
Organized Retailing• Organized retailing refers to trading activities  undertaken by licensed retailers, that is, those  w...
Organized Retail Examples in Pakistan                                   9
Unorganized Retailing• Unorganized retailing, on the other hand,  refers to the traditional formats of low cost  retailing...
Organized Vs. Unorganized Retailing                                      11
Organized Vs. Unorganized Retailing                                      12
Organized Vs. Unorganized Retailing                                      13
The Role of “Retail”• Retail is the key to access the consumer!                                         14
Retailer | The Next Frontier• In the past 10 years retailing has been one of  the fastest growing industry worldwide      ...
Evolution of Retail in Pakistan                     • Weekly MarketsHistorical Reach                     • Village Fairs /...
Industry Evolution• Traditional retailing in Pakistan . . . Kirana  stores catering to the convenience of  consumers & Era...
Industry Evolution• The later half of 1990s saw a fresh wave of  entrants with a shift from manufacturers to  pure retails...
Industry Evolution• Emergence of telecom and retail banking                                            19
Industry Evolution• Emergence of hyper and super markets trying  to provide customer with 3 V’s –  – Value  – Variety  – V...
Why is Retail becoming           increasingly Important?• Nature of the Product• Media Fragmentation• Product Competition ...
Why is Retail becoming increasingly Important?• Nature of the Product  – Innovation, Features, Variety, Pricing,    Warran...
The Changing Pakistani Consumer• Greater per capita income  – Increase in disposable income of middle class    households•...
The Changing Pakistani Consumer• The Urban Consumer  – Greater levels of Education  – Getting exposed to international lif...
Classifying Retail• Modern Format Retailers              (Organized  Retailing)   – Super Markets   – Hypermarkets   – Dep...
Department Stores• Carry a wide variety of product lines –  typically clothing, home furnishings, and  household goods. Ea...
Hypermarket• Carry a wide variety of product lines under  one roof (one stop shopping) focusing a high  volume, low margin...
Super Market• Self-service store that carries a wide variety of  food and household products.                             ...
Specialty Stores• Carry narrow product lines with deep  assortments within those lines.                                   ...
Personal Care / Health & Beauty Stores• Focusing on health & beauty product or  products of daily use.                    ...
Convenience Stores• Small stores located near residential areas  that are open long hours, 7 days a week and  carry a limi...
Other Retailer Goods & Service       Establishments   • Durable Goods Stores     – Automobiles     – Furniture & Home Appl...
Other Retailer Goods & Service       Establishments      – Laundry & Dry Cleaning      – Beauty / Barber Shops      – Heal...
Different Environments              & Service Levels• Customer Service Center• Franchise Outlet• Retailers                ...
Developing a            Winning Retail Strategy• The aim of marketing is to know and  understand the customer so well the ...
What Makes Retail Shoppers Tick                                  36
Demographics & Lifestyles•• Demographics   Demographics              •• Lifestyles                                Lifestyl...
Understanding Consumer Lifestyles –          Social Factors                                  38
Understanding Consumer Lifestyles –       Psychological Factors                                  39
Environmental Factors & Consumers•   State of the Economy•   Rate of Inflation•   Infrastructure of Shopping•   Price Wars...
The Consumer Decision Process• A – The Decision Process                                           Evaluation              ...
Key Factors in Purchase ActRetailers Place of Retailers Place of   Retailer’s                       Retailer’s         Ret...
Retail StrategyControllable Controllable                                                                    Uncontrolla   ...
Marketing & Sales Responsibilities                    • Strategic Marketing                               1 – 5 Year Out(M...
What is Customer Experience?• The customer’s overall impression of  our company based on their experience  with our brand,...
Why Customer Experience?Consumer experience is the key differentiator . . . .An excellent execution of consumer experience...
What are the risks?Be fantastic or be forgotten!
Customer experience is the coreof a successful Retailer’s strategyExperience           Exceed Expectations                ...
Customer Experience Strategy                    Interactions                        Sales  Post Purchase   Consumer       ...
Managing Customer Experience1. Base decisions on                                      6. Create and sustainwhat the custom...
Bringing the Retail Strategy to Life      •Running        a retail       operation                 51
Retail Strategy MixA strategy mix is the firm’s particular combination  of :   –   Store Location   –   Operating procedur...
The Wheel of RetailingHigh End StrategyHigh End Strategy    ••HighPrices     High Prices    ••Excellentfacilities and     ...
Location, Location, LocationCriteria to consider Include;• Population Size and traits• Competition• Transportation access•...
Choosing Store Location                        Step 1:  Evaluate alternate geographic (trading) area in       term of resi...
Retail Excellence in Self Service Stores         Visual Merchandising         Visual Merchandising             The Silent ...
Visual Merchandising              • Supports sales       Communicates with Customers            • Supports selling by     ...
Impact of the Visuals   83% Sight11 %    Hearing3.5%    Smell1.5%    Touch1%      Taste                               58
First ImpressionsFirst impression are formed within the first          10 secondsCustomer remembers vividly the   Worst   ...
Windows                                 If eyes are the                                       windows                     ...
Every square meter of         space in aretail store costs money – all areas should pay their             way.            ...
Gondolas• Best positions: Eye/shoulder level and slightly below  recognize that the average woman’s height 5’ 2”• Worst po...
ShelvingSimilar to gondola plus:• Use variety of shelf width to suit different  products. Small shelves for small product ...
Dump Bins + Special Tables + Racks• Don’t ever-crowed. But no less than half full. Make everything in  dump bin/tables/rac...
Color Sells Color is what customer sees first. More than anything elsemakes people stop and look. For many customers color...
How to maximize use of Color ?•   Attract the eye of the customer•   Create points of interest•   Use contrast of colors• ...
Why Customer need In-Store signage?•   Identify advertised lines•   Explain hidden benefits•   Indicate value and prices• ...
Signage and Ticketing• Corporate Sign: Branding Signs• Product Category: Direct consumer to specific  categories.• Promoti...
Best SellersLocate within their own classification in a primeposition exposed to maximum traffic flow.They must be in stoc...
Impulse Lines• Close to the advertised lines in Prime location or in a  high waiting area (e.g. Close to cash desk).• Must...
Seasonal and Trend Items• Understand when seasonal items will sell and  merchandise accordingly. Give them every  opportun...
Browse Items• Items which customers don’t make a quick  decision about.• Browse items need time and above all ,space.• Nev...
Hot Spot• Traditionally found on end of gondolas,  shelves where traffic is heavy and in the main  view points around the ...
Creating Hot Spots• Area within a store to move aged ,surplus  stock or specials.• Normally located in high traffic areas ...
Interesting Statistics• Research shows a well planned hot spot can  increase sales by:             229%                   ...
How to Maximize Sales Utilizing Hot Spots Known where to best position your hot spots. Plan your hot spot displays Build y...
Maximize Value of Hot SpotConsider• Product being specially promoted by your  store should go on hot spot.• Hot spot displ...
Cold Spots•   Dead Corners•   Poor Lighting•   Merchandise out of research•   Merchandise above or below eye level•   Too ...
Managing Counter Display• See the counter as profit center. Sell 2-3 items  from the counter only.• Select the right produ...
In 3 SecondsA shopper should be able to determine a store’s•   Name•   Line of trade•   Claim to fame•   Price position•  ...
Developing Retail Driven Team                                81
Be obsessed with CustomerThe customer Is:• Biggest asset of the business• Pays all our salaries and other expenses• Will g...
First Moment of Truth• First moment of the truth when the customer comes  in a contact with your product for the first tim...
We are in the business of creatingMoments of Magic             ..   . All the time.                                       84
Some fundamental rules of Retail             SellingOne of the biggest mistake retailers make is to thinkthey are just sel...
Target!Turning Lookers     into    Buyers                  86
The Retail ChallengeYour challenge is to make merchandise look goodenough to compel customer to buy it. Every customerwho ...
88
Retail Call: Selling Steps•   Step 1.   Making a good First impression•   Step 2.   Getting your customer to like you•   S...
The Don’ts of Retail Selling• The customer will no longer tolerate pushy,  obnoxious sales people. They want easy hassle f...
Avoid LCD   LastCustomer’sDandruff….                      91
LCD….Last customer dandruff• Don’t take out frustration that the last customer  caused you on the new customer who just  w...
93
The 4% Rule and PLOThe Rule is simple and sad• 4%of all the customer who come in to every  shop in the world belong to PLO...
Know what not to say• You could not afford that .How insulting!• We would need cash from you. What does  this suggest?• It...
Cross Selling & Up Selling for      Business Growth                                 96
Cross Selling• Expanding the number and quantity of  relationships between key people in the  buying organization and the ...
Up-selling DefinedConverting an initial order into a more profitable order.Typically manifested by the customer’s commitme...
Advantages of Cross selling and Up selling • Increase average order size • Effectively introduce new products/services to ...
The number one reason people don’t cross sellor up sell      Fear!                                            100
Retail KPI’s               (Key Performance Indicators)•   Total Sales•   Sales Per outlet•   Sales per square feet•   Ave...
Thank You &                     Good Day!Mohammad Atif Shahzad       Marketing ManagerBareeze | Bareeze MAN | Home Express...
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Winning at Retail

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  • December 24, 2012 Marketing & Retail Management
  • Winning at Retail

    1. 1. Winning at RetailCreating an impact where it matters!
    2. 2. Contents• Understanding Retail & its Classifications• Developing a Winning Retail Strategy• Managing the Customer Experience• Retail Excellence in Self Service Stores• Developing Retail Driven Teams 2
    3. 3. Retail Defined• The word retail is derived from the French word “retailer” which means “to cut a piece off” or “to break bulk”. 3
    4. 4. Understanding Retail• Retailing involves a direct interface with the customers and the coordination of business activities. • Who is a Retailer?• Retailer is a person, agent, agency, company who delivers the Goods or Services to the final Consumer. 4
    5. 5. Introduction to Retailing• Retailing business activity involve Selling Goods & Services to Consumers for their Personal, Family or Household use.• “Every Sale of Goods & Services to final Consumer” – Food products, Apparel, Movie Tickets; Services from Hair Cutting to E-Ticketing• A retailer is a reseller; obtains product from one party in order to sell to another from which a consumer purchases products. 5
    6. 6. A Typical Channel of DistributionManufacturer Wholesaler Retailer Final Consumer 6
    7. 7. Retailer’s Role in the Sorting Process Manufacturer Brand A Brand A Customer Wholesaler/ Manufacturer Distributor R Brand B Customer Brand B E Brand C Manufacturer T Customer Brand C Wholesaler/ A Brand D Distributor Customer Manufacturer I Brand D Brand D L Customer Manufacturer E Brand E Brand E Wholesaler/ Customer Distributor R Manufacturer Brand F Branc F Customer 7
    8. 8. Organized Retailing• Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains and also the privately owned large retail business. 8
    9. 9. Organized Retail Examples in Pakistan 9
    10. 10. Unorganized Retailing• Unorganized retailing, on the other hand, refers to the traditional formats of low cost retailing, for example, the local kirana shop, owner managed general stores, paan shops, convince stores, hand cart and pavement vendors. 10
    11. 11. Organized Vs. Unorganized Retailing 11
    12. 12. Organized Vs. Unorganized Retailing 12
    13. 13. Organized Vs. Unorganized Retailing 13
    14. 14. The Role of “Retail”• Retail is the key to access the consumer! 14
    15. 15. Retailer | The Next Frontier• In the past 10 years retailing has been one of the fastest growing industry worldwide 15
    16. 16. Evolution of Retail in Pakistan • Weekly MarketsHistorical Reach • Village Fairs / MelasTraditional •• Convenience Stores Convenience Stores Reach •• Kiranas KiranasStart of Organized •• Utility Stores Utility Stores Retailing •• CSD’s CSD’s •• Limited Chain Stores Limited Chain StoresModern Format •• Shopping Malls Shopping Malls Branded Outlet Branded Outlet Retailing •• Retail Banking Retail Banking Fast Food Chains Fast Food Chains 16
    17. 17. Industry Evolution• Traditional retailing in Pakistan . . . Kirana stores catering to the convenience of consumers & Era of Govt. run store chains i.e. Utility Stores and CSD’s in Cantt areas. 17
    18. 18. Industry Evolution• The later half of 1990s saw a fresh wave of entrants with a shift from manufacturers to pure retails. E.g. McDonald’s – KFC – Pizza Hut in Food and Cambridge & Bonanza in Garments. 18
    19. 19. Industry Evolution• Emergence of telecom and retail banking 19
    20. 20. Industry Evolution• Emergence of hyper and super markets trying to provide customer with 3 V’s – – Value – Variety – Volume 20
    21. 21. Why is Retail becoming increasingly Important?• Nature of the Product• Media Fragmentation• Product Competition – The importance of the Shopping Experience to the changing Pakistani Consumer 21
    22. 22. Why is Retail becoming increasingly Important?• Nature of the Product – Innovation, Features, Variety, Pricing, Warranty• Media Fragmentation – TV Channels, FM Radio, Print Media• Product Competition – Features, Variety, Pricing, Availability 22
    23. 23. The Changing Pakistani Consumer• Greater per capita income – Increase in disposable income of middle class households• Growing high and middle income population• Affordability Growth – Easier Consumer Credit – Greater Variety and Quality at all price points! 23
    24. 24. The Changing Pakistani Consumer• The Urban Consumer – Greater levels of Education – Getting exposed to international lifestyles – Media Exposure – More discerning and demanding than every• No longer need-based shopping – Shopping today is a Family Experience• Changing Mindset – Increasing tendency to spend 24
    25. 25. Classifying Retail• Modern Format Retailers (Organized Retailing) – Super Markets – Hypermarkets – Departmental Stores• Cash & Carry – Metro & Makro• Company Owned / Operated – Bareeze, Bata, Servis,• Traditional Format Retailers (Unorganized Retailing) – Kirana Stores – Koisks – Street Markets 25
    26. 26. Department Stores• Carry a wide variety of product lines – typically clothing, home furnishings, and household goods. Each line is operated as a separate department managed by specialist buyers or merchandisers. 26
    27. 27. Hypermarket• Carry a wide variety of product lines under one roof (one stop shopping) focusing a high volume, low margin sales. 27
    28. 28. Super Market• Self-service store that carries a wide variety of food and household products. 28
    29. 29. Specialty Stores• Carry narrow product lines with deep assortments within those lines. 29
    30. 30. Personal Care / Health & Beauty Stores• Focusing on health & beauty product or products of daily use. 30
    31. 31. Convenience Stores• Small stores located near residential areas that are open long hours, 7 days a week and carry a limited line of high turnover convenience goods. 31
    32. 32. Other Retailer Goods & Service Establishments • Durable Goods Stores – Automobiles – Furniture & Home Appliances – Jewelry •• Non-durable Goods Stores Non-durable Goods Stores – Apparel – Apparel – Food – Food – Fuel / Gas Service Stations – Fuel / Gas Service Stations 32
    33. 33. Other Retailer Goods & Service Establishments – Laundry & Dry Cleaning – Beauty / Barber Shops – Health Care Services – Telecom Services – Banking Services •• Service Establishments Service Establishments – Movie Theaters – Movie Theaters – Bowling Allays – Bowling Allays – Automobile Repair & Car Wash – Automobile Repair & Car Wash – Appliance Repair – Appliance Repair – Hotel – Hotel 33
    34. 34. Different Environments & Service Levels• Customer Service Center• Franchise Outlet• Retailers 34
    35. 35. Developing a Winning Retail Strategy• The aim of marketing is to know and understand the customer so well the product of service fits him and sells itself. 35
    36. 36. What Makes Retail Shoppers Tick 36
    37. 37. Demographics & Lifestyles•• Demographics Demographics •• Lifestyles Lifestyles •• Consumers data Consumers data •• Ways in which Ways in which that is objective, that is objective, consumers and consumers and quantifiable, easily quantifiable, easily families live and families live and identifiable, identifiable, spend time and spend time and measureable measureable spend money spend money 37
    38. 38. Understanding Consumer Lifestyles – Social Factors 38
    39. 39. Understanding Consumer Lifestyles – Psychological Factors 39
    40. 40. Environmental Factors & Consumers• State of the Economy• Rate of Inflation• Infrastructure of Shopping• Price Wars• Emergence of New Retail Formats• People Working at Home• Regulations on Shopping• Changing Social Values and Norms 40
    41. 41. The Consumer Decision Process• A – The Decision Process Evaluation Evaluation Post Post Problem Problem Informatio Informatio of of Stimulus Stimulus Purchase Purchase Purchase Purchase Awareness Awareness nnSearch Search Alternativ Alternativ Behavior Behavior es es• B - FactorsAffectingthe Process Demogra Lifestyle phics 41
    42. 42. Key Factors in Purchase ActRetailers Place of Retailers Place of Retailer’s Retailer’s Retailer’s Retailer’sPurchase Purchase purchase terms purchase terms good/service good/service••Store Store ••Price Price availability availability••Home Home ••CashVs. Credit Cash Vs. Credit ••Stockin Hand Stock in Hand••Office/School Office/School Acceptance Acceptance ••Delivery Delivery••Online Online Consumers Consumers Purchase or Non Purchase or Non Purchase Purchase 42
    43. 43. Retail StrategyControllable Controllable Uncontrolla Uncontrolla Variables Variables ble ble Variables Variables Legal Consumer Competiti Technolog Economic Seasonalit Restriction s on y Conditions y s Merchand ise Communic Store Managing Managem ation with Location A Business ent & Customers Pricing 43
    44. 44. Marketing & Sales Responsibilities • Strategic Marketing 1 – 5 Year Out(Market Positioning, Brand Awareness, Advertising, Predicting New Markets) • Tactical Marketing 12 – 18 Months(Trade shows, advertising, success stories, web content, lead generations etc) THE DISCONNECT • Sales 1 – 6 Months (Executing the sale process) 44
    45. 45. What is Customer Experience?• The customer’s overall impression of our company based on their experience with our brand, people, product, services & solutions at every touch point in a competitive context. 45
    46. 46. Why Customer Experience?Consumer experience is the key differentiator . . . .An excellent execution of consumer experience will lead to many direct and indirect benefits.• Consumer stay time will increase in store.• More stay time leads to more opportunity for up- sell/more-sell which leading to increasing in average bill value.• Higher chance of repeat purchase and loyalty.• Positive word of mouth• Makes consumer less price conscious. Consumer experience is a key for competitive edge. 46
    47. 47. What are the risks?Be fantastic or be forgotten!
    48. 48. Customer experience is the coreof a successful Retailer’s strategyExperience Exceed Expectations 48
    49. 49. Customer Experience Strategy Interactions Sales Post Purchase Consumer Store Design & hand holding Experience Branding Purchase Actual 49
    50. 50. Managing Customer Experience1. Base decisions on 6. Create and sustainwhat the customer a strong customerwants and expects service orientationfrom the retailer 7. Correct mistakes2. Think & act in as they areterms of entire uncovered and avoidcustomer experience failing customers Customer twice3. Continuously Acquisition 8. Empower yourimprove all parts of customers to co-the customer & product their ownexperience Retention service experience4. Employ and 9. Get your managersreward workers who to lead from thecan build customer front not from therelationships top!5. Train employees to 10. Treat all of yourcope with the customers as if theyemotional costs of were guestsselling retailing 50
    51. 51. Bringing the Retail Strategy to Life •Running a retail operation 51
    52. 52. Retail Strategy MixA strategy mix is the firm’s particular combination of : – Store Location – Operating procedures – Good/Services offered – Pricing tactics – Store atmosphere – Customer services – Promotional methods 52
    53. 53. The Wheel of RetailingHigh End StrategyHigh End Strategy ••HighPrices High Prices ••Excellentfacilities and Excellent facilities and services services ••Upscaleconsumers Upscale consumers Medium End Strategy Medium End Strategy ••Moderateprices Moderate prices ••Improvedfacilities Improved facilities ••Broaderbase of value Broader base of value and service conscious and service conscious consumer consumer Low End Strategy Low End Strategy ••LowPrices Low Prices ••Limitedfacilities and Limited facilities and services services ••Pricesensitive Price sensitive consumers consumers 53
    54. 54. Location, Location, LocationCriteria to consider Include;• Population Size and traits• Competition• Transportation access• Parking Availability• Nature of Nearby stores• Property costs• Length of Agreement• Legal Restrictions 54
    55. 55. Choosing Store Location Step 1: Evaluate alternate geographic (trading) area in term of resident and existing retailers Step 2: Determine whether to locate as an isolated store or in planned shopping center. Step 3: Select the location type. Step 4:Analyze alternate sites contained in the specific retail location type. 55
    56. 56. Retail Excellence in Self Service Stores Visual Merchandising Visual Merchandising The Silent Seller The Silent Seller 56
    57. 57. Visual Merchandising • Supports sales Communicates with Customers • Supports selling by communication the latest trends• Assisting the customer in making a buying decision and • Creating an exciting environment within the shop/center. 57
    58. 58. Impact of the Visuals 83% Sight11 % Hearing3.5% Smell1.5% Touch1% Taste 58
    59. 59. First ImpressionsFirst impression are formed within the first 10 secondsCustomer remembers vividly the Worst impression, not the best impression. 59
    60. 60. Windows If eyes are the windows to the soul then Shop windows are just as revealing.They reveal the Soul of the shop….. 60
    61. 61. Every square meter of space in aretail store costs money – all areas should pay their way. 61
    62. 62. Gondolas• Best positions: Eye/shoulder level and slightly below recognize that the average woman’s height 5’ 2”• Worst position: Top shelve if well above level and gondola base on either and is the next lease favored• Vertical blocking: Most effective way of presenting merchandise. If sizes are applicable try to position the size you want to sell most of at eye/shoulder level.• Colorful Merchandise: Color block vertically + color blend from light to dark – left to right visually within the color families. 62
    63. 63. ShelvingSimilar to gondola plus:• Use variety of shelf width to suit different products. Small shelves for small product towards top, graduating down to larger/heavier items.• Avoid wasting space and obvious gaps.• Display product face out to show the style and for ease of viewing and selection. 63
    64. 64. Dump Bins + Special Tables + Racks• Don’t ever-crowed. But no less than half full. Make everything in dump bin/tables/rack the same price, wherever possible.• Location in your racetrack and use it to give the impression that it is a price-motivated promotion.• Allocate one product type per bin and display the products as if it were just dumped into the bin.• Always have a price sign to highlight the specific price.• Life of a dump bin: Maximum of one month,preferably,1 week.• Sales will increase by 30% for the specified product. 64
    65. 65. Color Sells Color is what customer sees first. More than anything elsemakes people stop and look. For many customers color is more important than the size or the size or the style of product. 65
    66. 66. How to maximize use of Color ?• Attract the eye of the customer• Create points of interest• Use contrast of colors• Aims at variety• Create a buying mood 66
    67. 67. Why Customer need In-Store signage?• Identify advertised lines• Explain hidden benefits• Indicate value and prices• Highlight new trends and products• Explain difference between look a like.• Remind customer to purchase• Clarify policies• Help customer find products 67
    68. 68. Signage and Ticketing• Corporate Sign: Branding Signs• Product Category: Direct consumer to specific categories.• Promotional Signage: Highlight specific promotions, have short life span.• Information Signage: Identity service and service policies within your business• Product Sign: These educate customers about the specific product. 68
    69. 69. Best SellersLocate within their own classification in a primeposition exposed to maximum traffic flow.They must be in stock. 69
    70. 70. Impulse Lines• Close to the advertised lines in Prime location or in a high waiting area (e.g. Close to cash desk).• Must be clearly visible and in a position on the way to the cash desk, not where it can’t be see until main transaction has been completed.• Merchandise attractively displayed at the aisle lines helps promote impulse sales. 70
    71. 71. Seasonal and Trend Items• Understand when seasonal items will sell and merchandise accordingly. Give them every opportunity to sell at the right time.• Use trend items to develop your competitive edge. Be the first with a new idea if you can believe in it.• Locate the stock within its own classification & current seasonal or trend classification which would be at the front of your store or dept. 71
    72. 72. Browse Items• Items which customers don’t make a quick decision about.• Browse items need time and above all ,space.• Never place near high traffic areas, narrow or busy area or in hot spot near cash counter.• If you do, it will deter customer from stopping and goods won’t sell very well. 72
    73. 73. Hot Spot• Traditionally found on end of gondolas, shelves where traffic is heavy and in the main view points around the store.• Most impulse sales will be made from these points• It is essential that hotspot are identified and known to all sales people. 73
    74. 74. Creating Hot Spots• Area within a store to move aged ,surplus stock or specials.• Normally located in high traffic areas within their own merchandise category.• Eliminated dead spots by using strong ticketing and good displays rather than placing top sellers in the spot. 74
    75. 75. Interesting Statistics• Research shows a well planned hot spot can increase sales by: 229% 75
    76. 76. How to Maximize Sales Utilizing Hot Spots Known where to best position your hot spots. Plan your hot spot displays Build your hot spot wisely • Present items at customer eye level. • Must have enough product to look full and to provide impact. • Always have a sign or you want to maximize your return per sq meter. • Wherever possible to create a pyramidal shape to the display Best selling shape. 76
    77. 77. Maximize Value of Hot SpotConsider• Product being specially promoted by your store should go on hot spot.• Hot spot displays need to be managed – product level Never to go Below half level.• Display must be shoppable in the eyes of the customer.• Product should sell three time faster from this display. 77
    78. 78. Cold Spots• Dead Corners• Poor Lighting• Merchandise out of research• Merchandise above or below eye level• Too wide a display• Too long a shelve(Tip: If your staff keep saying" down to the back” it isprobably a dead or cold spots). 78
    79. 79. Managing Counter Display• See the counter as profit center. Sell 2-3 items from the counter only.• Select the right products at the counter.• Train the team to sell counter product.• Do not clutter the counter.• Make somebody accountable.• Introduce housekeeping standards at checkout. 79
    80. 80. In 3 SecondsA shopper should be able to determine a store’s• Name• Line of trade• Claim to fame• Price position• Personality 80
    81. 81. Developing Retail Driven Team 81
    82. 82. Be obsessed with CustomerThe customer Is:• Biggest asset of the business• Pays all our salaries and other expenses• Will go where he or she receives the best attentionWE MUST BE OUR CUSTOEMR’S FIRST CHOICE 82
    83. 83. First Moment of Truth• First moment of the truth when the customer comes in a contact with your product for the first time.• When the moment of truth is a negative experience, it becomes moment of misery.• On the other hand, if it is a fantastic, it becomes a moment of magic. 83
    84. 84. We are in the business of creatingMoments of Magic .. . All the time. 84
    85. 85. Some fundamental rules of Retail SellingOne of the biggest mistake retailers make is to thinkthey are just selling merchandise.A customer never buys unless you sell some otherthings first:• Yourself• Your environment• An experienceVery little room for errors as customer form theirimpressions very fast! 85
    86. 86. Target!Turning Lookers into Buyers 86
    87. 87. The Retail ChallengeYour challenge is to make merchandise look goodenough to compel customer to buy it. Every customerwho comes into your shop is just looking.Your job is to convert those into buyers by temptingthem within things they like in a way they enjoy.That’s the secret of selling.“Make the Move-From Order Taker to Order Getter” 87
    88. 88. 88
    89. 89. Retail Call: Selling Steps• Step 1. Making a good First impression• Step 2. Getting your customer to like you• Step 3. Creating a bond• Step 4. Handling Objections• Step 5. Closing• Step 6. Post call analysis 89
    90. 90. The Don’ts of Retail Selling• The customer will no longer tolerate pushy, obnoxious sales people. They want easy hassle free service.• Talk about what the customer like to talk about• Don’t be judgmental.• Never practice one-upmanship• And remember… they may not admit it but . . Customer buy within their emotions.• If you’re looking for logic, a retail business is not the place to find it. 90
    91. 91. Avoid LCD LastCustomer’sDandruff…. 91
    92. 92. LCD….Last customer dandruff• Don’t take out frustration that the last customer caused you on the new customer who just walked in.• It’s “show time” every time a customer walks in.• Forget last customer. Focus on the new one.• Don’t say a word on the customer about what just happened.• They don’t care although they’ll pretend it.• It will simply make them not come back. 92
    93. 93. 93
    94. 94. The 4% Rule and PLOThe Rule is simple and sad• 4%of all the customer who come in to every shop in the world belong to PLO: Pushy, Loud &Obnoxious• You will never please them• Don’t drive yourself crazy trying to.• As hard as it to try to sell to everyone, its impossible. So don’t beat yourself up if you loose a sale.• But you should be satisfied that you made all possible effort. 94
    95. 95. Know what not to say• You could not afford that .How insulting!• We would need cash from you. What does this suggest?• Its over there. Always go get things for customer.• We ‘re sold out. At least offer to check out the back.• I only work here. You won’t for long if you use this phrase. 95
    96. 96. Cross Selling & Up Selling for Business Growth 96
    97. 97. Cross Selling• Expanding the number and quantity of relationships between key people in the buying organization and the selling organization.• Making additional relevant products available to the buying organization (e.g. new products). 97
    98. 98. Up-selling DefinedConverting an initial order into a more profitable order.Typically manifested by the customer’s commitment to;Additional units of the seller’s solution ORA premium version of the seller’s solution.This does not mean selling one’s customer something thydon’t need. it does not need ;it does mean selling one’sCustomer more of something that they don’t need. 98
    99. 99. Advantages of Cross selling and Up selling • Increase average order size • Effectively introduce new products/services to the market. • Grow sales without significant increase in resource 99
    100. 100. The number one reason people don’t cross sellor up sell Fear! 100
    101. 101. Retail KPI’s (Key Performance Indicators)• Total Sales• Sales Per outlet• Sales per square feet• Average transaction size• Average selling price• Average items per transaction• Transaction per hour• Total Footfall• Retail close Ratio/STRIKE RATE• Retail Margin 101
    102. 102. Thank You & Good Day!Mohammad Atif Shahzad Marketing ManagerBareeze | Bareeze MAN | Home Expressions atif786@gmail.com

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