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  2. 2. <ul><li>A set of business activities involved in selling goods and services to consumers for their personal, family, or household use. </li></ul><ul><li>A retailer is a business that sells products and/or services to consumers for personal or family use. </li></ul>
  3. 3. Examples of Retailers . . .
  4. 4. Retail Shops . . .
  5. 6. The 10 Largest Retailers in the United States Supermarkets Safeway 10 Department stores, specialty stores Sears 9 Home centers Lowe’s 8 Drugstores Walgreens 7 Supermarkets, drugstores Albertson’s 6 Membership clubs Costco 5 Full-line discount stores, supercenters Target 4 Supermarkets, convenience stores, jewelry stores Kroger 3 Home centers, design centers Home Depot 2 Full-line discount stores, supercenters, membership clubs Wal-Mart 1 Main Emphasis Company Rank
  6. 7. Retail Process POS ERP Reports & Transactions
  7. 8. Retail formats in INDIA <ul><li>India is fifth most attractive emerging retail market: a potential goldmine. </li></ul><ul><li>Indian retail is largest among all industries(200 billion $). </li></ul><ul><li>10% - India’s GDP. </li></ul><ul><li>Growth rate – 20-25% </li></ul><ul><li>8% - employment </li></ul><ul><li>Potentiality to grow 427 billion $ by 2010 and 637 billion $ by 2015. </li></ul>
  8. 9. Retail formats in INDIA <ul><li>Malls </li></ul><ul><li>Specialty stores </li></ul><ul><li>Discount stores </li></ul><ul><li>Department stores </li></ul><ul><li>Hyper marts / Super marts </li></ul><ul><li>Convenience stores </li></ul><ul><li>Multi brand outlets </li></ul>
  9. 11. <ul><li>INDUSTRY REVOLUTION </li></ul><ul><li>Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains </li></ul><ul><li>1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. </li></ul>Growth of Retail in INDIA
  10. 12. <ul><li>For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. </li></ul><ul><li>Post 1995 onwards saw an emergence of shopping centers. </li></ul><ul><li>Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume. </li></ul>
  11. 13. Manufacturer’s Perspective Retailers are part of the distribution channel
  12. 14. A Typical Channel of Distribution Manufacturer Wholesaler Final Consumer Retailer
  13. 15. The Retailer’s Role in the Sorting Process
  14. 16. Distribution Types <ul><li>Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products </li></ul><ul><li>Intensive: suppliers sell through as many retailers as possible </li></ul><ul><li>Selective: suppliers sell through a moderate number of retailers </li></ul>
  15. 17. Multi-Channel Retailing <ul><li>A retailer sells to consumers through multiple retail formats </li></ul><ul><ul><li>Web sites </li></ul></ul><ul><ul><li>Physical stores </li></ul></ul>
  16. 18. Retail Strategy <ul><li>An overall plan for guiding a retail firm </li></ul><ul><li>Influences the firm’s business activities </li></ul><ul><li>Influences the firm’s response to market forces </li></ul>
  17. 19. Retail Strategy Location Store Design & Display Pricing mixing Customer service Merchandise Assortments
  18. 20. Six Steps in Strategic Planning <ul><li>Define the type of business </li></ul><ul><li>Set long-run and short-run objectives </li></ul><ul><li>Determine the customer market </li></ul><ul><li>Devise an overall, long-run plan </li></ul><ul><li>Implement an integrated strategy </li></ul><ul><li>6. Evaluate and correct </li></ul>
  19. 21. “ Pay Less + Expect More ” at Target
  20. 22. Aspects of Target’s Strategy <ul><li>Growth objectives </li></ul><ul><li>Appeal to a prime market </li></ul><ul><li>Distinctive image </li></ul><ul><li>Focus </li></ul><ul><li>Customer service </li></ul><ul><li>Multiple points of contact </li></ul><ul><li>Employee relations </li></ul><ul><li>Innovation </li></ul><ul><li>Commitment to technology </li></ul><ul><li>Community involvement </li></ul><ul><li>Monitoring performance </li></ul>
  21. 23. Applying the Retailing Concept Customer Orientation Coordinated Effort Value Driven Goal Orientation Retailing Concept Retail Strategy
  22. 24. Eliminating Shopper’s Boredom
  23. 25. Customer Service <ul><li>Activities undertaken by a retailer with the basic goods and services </li></ul><ul><ul><li>Store hours </li></ul></ul><ul><ul><li>Parking </li></ul></ul><ul><ul><li>Shopper-friendliness </li></ul></ul><ul><ul><li>Credit acceptance </li></ul></ul><ul><ul><li>Salespeople </li></ul></ul>
  24. 26. How Retailers Add Value . . . The value of the product and service increases as the retailer performs functions. Doll is developed at manufacturer Doll is developed in several styles Doll is offered in convenient locations in quantities of one Doll is featured on floor display Doll can be bought on credit or put on lay away
  25. 27. Retail Mix <ul><li>The combination of merchandise, assortment, price, promotion, customer service, and store layout that best serves the segments targeted by the retailer. </li></ul>
  26. 28. Types of Competition <ul><li>Intratype Competition </li></ul><ul><li>Intertype Competition </li></ul><ul><li>Divertive Competition </li></ul>
  27. 29. Intratype Competition It occurs when two or more retailers of the same type, compete directly with each other for the same households.
  28. 30. <ul><li>It occurs when two or more retailers of a different type, compete directly by attempting to sell the same merchandise lines to the same households. </li></ul>Intertype Competition
  29. 31. <ul><li>It occurs when retailers intercept or divert customers from competing retailers. </li></ul>Divertive Competition
  30. 32. The Retail Life Cycle Market share or profit Early growth Accelerated development Maturity Decline Value-retail stores On-line retailers Single-price stores Warehouse clubs Fast food outlets Convenience stores Supermarkets Department stores Catalog Retailers Malls (?) General store Factory outlet stores Profit Market share Single-brand stores
  31. 33. Future Changes in Retail Nonstore Retailing New Retail Formats Integration of Technology Heightened Global Competition Increased use of Private Labels
  32. 34. E-tailing Catalog Sales Direct Selling Non store Retailing
  33. 35. Liquidators Recycled Merchandise Retailers Super centers New Retail Formats
  34. 36. Creation of New Retail Formats Greater Diversity Increased Rate of Change Heightened Global Competition
  35. 37. Customer Satisfaction Customer Management Supply Chain Management Integration of Technology
  37. 39. F I N