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Marketing of Retail
Business In India
Marketing Management Project
INTRODUCTION
Retailing includes all the activities in
selling goods or services directly to final
consumers for personal or non-business
use.
Any organisation selling to final consumers
– Whether it is manufacturer, wholesaler,
or retailer – is doing retailing
TYPES OF RETAILER
 SPECIALITY STORE Narrow product line.
EXAMPLE, The Reebok
 DEPARTMENT STORE Several product
line. EXAMPLE, Nordstrom
 SUPERMARKET Large, low cost, low
margin, high volume, self service store.
EXAMPLE, Big Bazaar, More Supermarket
 CONVENIENCE STORE Small store in
residential areas, ex 24X7 stores, Big Apple
 DISCOUNT STORES Standard or
speciality merchandise, low price, low
margin, high volume stores. EXAMPLE,
Wal-Mart
 OFF-PRICE RETAILER Leftover goods,
overruns, irregular merchandise sold at
less than retail like in factory outlets
 SUPERSTORE Huge retailing space of
household items, Ex Carrefour, Metro
Cash n carry
RETAILER MARKET
DECISIONS
Retailers conduct market decisions.
They are made depending on need
and nature of situation. Businessman
can make target market decisions,
product assortment and services
decisions, price decisions, place
decisions and promotion decisions.
Target Market Selection
For Retailers all decision regarding products, distribution, price,
promotion follow this initial decision. He attempts to narrow the
prospective markets to most profitable segments. Using
demographic data such as age, income, geographical location of
profitable prospective groups. Retailers tailor product offerings
price, store location and store atmosphere to attract the customers.
Product Assortment and Service
Retailers address certain question in deciding on product
assortments. Should a variety of product be stocked, or only a few
lines with a depth of product within each? Should high quality or
low priced goods be emphasized? Additionally intangibles such as
service and the atmosphere in which products are presented are
considered. Retailers desire for services such as credit and delivery
must also be considered in attempting to find a balance between
serving customers and maintaining profitability
Place: A number of options are open to retailers in selecting a
location. An isolated location maybe fine for a discount store or
catalog showroom where price advantages will impel customers to
go out of their way to shop. Speciality stores and service
businesses may choose to locate in an unplanned central business
district, with its heavy foot traffic.
Price: Some retailers charge a high mark up and would never
expect to achieve high volume. Retailers may either seek high
mark up on high volume. Speciality stores usually go for high mark
ups on lower volume.
Promotion: In order for the retailers products to be known to
customers promotional tools like advertising , personal selling,
sales promotion and publicity should be utilized
STORE ATMOSPHERE
Every Store has a look and a physical layout that
makes it hard or easy to move around.
 Walls: Replacement of plain white walls with
earthy tones
 Lighting: Replacement of bright lights with warm
accent
 Signage: Add big pictures of Healthy Food
 Produce Department: Moving to wooden
floors to give a natural feel ex nature’s basket
 Baking: Knocked down walls to show off bread
baking
Store Activities & Experiences
 Calling each shopper a guest
 Building a indoor amusement park
 Providing Café facility
Examples
Bass Pro Shops: Retailer of outdoor sports
equipments, features giant acquariums, trout
ponds, archery & rifle ranges, all free
The Discovery Zone: A chain of children’s play
spaces. Offers indoor spaces where kids can
go wild without breaking anything
NEW RETAIL
ENVIRONMENT
:
Ex inclusion of Bank branches by
superstores & food outlets by Petrol
Pumps
:
competition between Department,
convenience & super stores
Contd.
Levels of Service.
Level of service (LOS) is a qualitative measure
used to relate the quality of traffic service. LOS is
used to analyse highways by categorizing traffic
flow and assigning quality levels of traffic based on
performance measure like speed, density,etc.
TYPES
Self Service. Customers are willing to carry out
their own locate-compare-select process to save money.
Self Selection. Customers find their own goods.
although they ask for assistance.
Limited Services. These customers carry more
shopping activities, need more information and
assistance.
Full Service. Firm with a large range of goods offered
at retail prices and which provides advice and detailed
information on goods sold through its trained sales force.
Retailing can be divided in two categorizes,
store and Non store retailing.
Direct selling: followed by Eureka Forbes,
Amway,
Aviance etc.
Direct Marketing: Followed by Amazon,
Flipkart, Myntra etc.
Automatic Vending: Is used to sell Milk,
Beverages and Magazines and to dispense
monies from ATMs
Buying Services: Is a scoreless retailer serving
specific clientele like employees in large
PRIVATE LABELS
 Enable retailers to
offer quality products
and earn higher
margins
 In-store labels are
atleast 5-20%
cheaper across
various categories.
 Reduces
dependence on
Manufacturer &
Enhances
negotiation power.
Corporate Retailing
Although most retail stores are independently
owned, some are part of corporate retailing.
Corporate retail store achieve economies of scale,
greater purchasing power, wider brand recognition
and better employees. The major corporate retailer
operating in India are Shoppers stop, Super
Bazaar, McDonald, Time zone and Raymond
Outlets etc.
Location decision
 Key to success “LOCATION,LOCATION &
LOCATION”
 Departmental stores chains, oil-co. and fast food
chains
Evolution of location
1. No. of people passing by on an average day
2. percentage who enter the store
3. Percentage who buy
4. Avg amount of sale
Communications
Retailers use a wide range of
communications tools
 special sales campaigns
 issue money saving coupons
 In store food sampling
 Customised Point-of-sale material ex
Shopping Bags
 Ads in magzines, T.V. & newspapers
 Coupons on shelves or at check out
point
Submitted By:
Aanchal
Nayantara
Kishwar
Asad
Ali
Anshul
THANK YOU

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Marketing of retail business in India

  • 1. Marketing of Retail Business In India Marketing Management Project
  • 2. INTRODUCTION Retailing includes all the activities in selling goods or services directly to final consumers for personal or non-business use. Any organisation selling to final consumers – Whether it is manufacturer, wholesaler, or retailer – is doing retailing
  • 3. TYPES OF RETAILER  SPECIALITY STORE Narrow product line. EXAMPLE, The Reebok  DEPARTMENT STORE Several product line. EXAMPLE, Nordstrom  SUPERMARKET Large, low cost, low margin, high volume, self service store. EXAMPLE, Big Bazaar, More Supermarket  CONVENIENCE STORE Small store in residential areas, ex 24X7 stores, Big Apple
  • 4.  DISCOUNT STORES Standard or speciality merchandise, low price, low margin, high volume stores. EXAMPLE, Wal-Mart  OFF-PRICE RETAILER Leftover goods, overruns, irregular merchandise sold at less than retail like in factory outlets  SUPERSTORE Huge retailing space of household items, Ex Carrefour, Metro Cash n carry
  • 5. RETAILER MARKET DECISIONS Retailers conduct market decisions. They are made depending on need and nature of situation. Businessman can make target market decisions, product assortment and services decisions, price decisions, place decisions and promotion decisions.
  • 6. Target Market Selection For Retailers all decision regarding products, distribution, price, promotion follow this initial decision. He attempts to narrow the prospective markets to most profitable segments. Using demographic data such as age, income, geographical location of profitable prospective groups. Retailers tailor product offerings price, store location and store atmosphere to attract the customers. Product Assortment and Service Retailers address certain question in deciding on product assortments. Should a variety of product be stocked, or only a few lines with a depth of product within each? Should high quality or low priced goods be emphasized? Additionally intangibles such as service and the atmosphere in which products are presented are considered. Retailers desire for services such as credit and delivery must also be considered in attempting to find a balance between serving customers and maintaining profitability
  • 7. Place: A number of options are open to retailers in selecting a location. An isolated location maybe fine for a discount store or catalog showroom where price advantages will impel customers to go out of their way to shop. Speciality stores and service businesses may choose to locate in an unplanned central business district, with its heavy foot traffic. Price: Some retailers charge a high mark up and would never expect to achieve high volume. Retailers may either seek high mark up on high volume. Speciality stores usually go for high mark ups on lower volume. Promotion: In order for the retailers products to be known to customers promotional tools like advertising , personal selling, sales promotion and publicity should be utilized
  • 8. STORE ATMOSPHERE Every Store has a look and a physical layout that makes it hard or easy to move around.  Walls: Replacement of plain white walls with earthy tones  Lighting: Replacement of bright lights with warm accent  Signage: Add big pictures of Healthy Food  Produce Department: Moving to wooden floors to give a natural feel ex nature’s basket  Baking: Knocked down walls to show off bread baking
  • 9. Store Activities & Experiences  Calling each shopper a guest  Building a indoor amusement park  Providing Café facility Examples Bass Pro Shops: Retailer of outdoor sports equipments, features giant acquariums, trout ponds, archery & rifle ranges, all free The Discovery Zone: A chain of children’s play spaces. Offers indoor spaces where kids can go wild without breaking anything
  • 11. : Ex inclusion of Bank branches by superstores & food outlets by Petrol Pumps : competition between Department, convenience & super stores
  • 13. Levels of Service. Level of service (LOS) is a qualitative measure used to relate the quality of traffic service. LOS is used to analyse highways by categorizing traffic flow and assigning quality levels of traffic based on performance measure like speed, density,etc.
  • 14. TYPES Self Service. Customers are willing to carry out their own locate-compare-select process to save money. Self Selection. Customers find their own goods. although they ask for assistance. Limited Services. These customers carry more shopping activities, need more information and assistance. Full Service. Firm with a large range of goods offered at retail prices and which provides advice and detailed information on goods sold through its trained sales force.
  • 15. Retailing can be divided in two categorizes, store and Non store retailing. Direct selling: followed by Eureka Forbes, Amway, Aviance etc. Direct Marketing: Followed by Amazon, Flipkart, Myntra etc. Automatic Vending: Is used to sell Milk, Beverages and Magazines and to dispense monies from ATMs Buying Services: Is a scoreless retailer serving specific clientele like employees in large
  • 16. PRIVATE LABELS  Enable retailers to offer quality products and earn higher margins  In-store labels are atleast 5-20% cheaper across various categories.  Reduces dependence on Manufacturer & Enhances negotiation power.
  • 17. Corporate Retailing Although most retail stores are independently owned, some are part of corporate retailing. Corporate retail store achieve economies of scale, greater purchasing power, wider brand recognition and better employees. The major corporate retailer operating in India are Shoppers stop, Super Bazaar, McDonald, Time zone and Raymond Outlets etc.
  • 18. Location decision  Key to success “LOCATION,LOCATION & LOCATION”  Departmental stores chains, oil-co. and fast food chains Evolution of location 1. No. of people passing by on an average day 2. percentage who enter the store 3. Percentage who buy 4. Avg amount of sale
  • 19. Communications Retailers use a wide range of communications tools  special sales campaigns  issue money saving coupons  In store food sampling  Customised Point-of-sale material ex Shopping Bags  Ads in magzines, T.V. & newspapers  Coupons on shelves or at check out point