retail management 5 formats of retail outlets

1. Shaurya B (5), Saptarshi D (10), Samir D (14), Rohit J (28), Sushmita K (36), Sneha M (51)

2. Retail Strategy for 5 different Store Formats

3. Retail - Retail is the sale of goods to end users, not for resale,
but for use and consumption by the purchaser
Retail Management - A process of promoting greater sales and customer
satisfaction by gaining a better understanding of the consumers of goods
and services produced by a company.

4. A glimpse of Indian Retail Industry
Accounts for
India’s 10% of
total GDP
Employs 8%
of the total
Indian
population
Market size is
expected to grow -
US $650 Billion to
US $1.2 Trillion
(2020)
4
Source:
 CRISIL
 India Brand Equity
Foundation
CAGR 13%

5. Retail in Detail
Retail
Organized
(10%)
Product
Food
Wet
Processed
(70%)
Dry
Lifestyle
Clothing Music Book
Consumer
Durables
Pharmaceutic
als
Service
Unorganized
(90%)

6. Retail
Store
Global National International
Non Store
Online Television Catalogue
Direct
Selling
Vending
Machine
Classification of Retail Stores

7. Types of Retail Outlets
• Department store
• Discount store
• Warehouse store
• Variety store
• Demographic
• Mom-And-Pop
• Specialty store
• Boutique
• General store
• Convenience store
• Hypermarkets
• Supermarket
• Mall
• "Category killer" or
specialist
• E-tailer
• Vending machine

8. 5 different formats of Retail Outlets

9. 1) Department Store
A department store is a retail establishment offering a wide range of
consumer goods in different product categories known as "departments”

10. • A retailer of such a store should
have a variety of categories
(clothing, furniture, home
appliances, toys, cosmetics etc.
) and a broad assortment of
goods which in turn should be
used to promote the store.
• The goods should be available
at an average price.

11. • A department stores should be located in an area with
a high residential population to target fulfilment of
consumers daily needs at one place.
• Such a store requires huge space to operate to store
more variety and attract more types of customers.
• Such a store must be very well designed to assist the
customer in finding the required products easily with
the help of signage etc.

12. 2) Mom and Pop Stores
Mom and Pop stores are small stores run by individuals in the
nearby locality to cater to daily needs of consumers, they can also
be called local general stores. Traditionally they are unorganized

13. • Product – Selected items,
usually do not offer high-end
products
• Price – Differential Pricing,
Credit payments
• Place – Depends on
i) The land availability of the
owner
ii) Capital constraints
• Promotion - “Word of mouth”
promotion by existing
customers, Customer
referrals, local print ads, TV
promotions, deal of the day,
radio and outdoor ads

14. Repeat business can be achieved through
improved customer relations
Trends
• Innovation by means of credits
• Multiple SKUs (small pack sizes/loosely sold)
• Better inventory
• Interpersonal communication with
customers
Threats
• Upcoming retail outlets offering better
variety and discounts
• Better customer experience
• One Stop Shop solutions
Examples – Kirana shops, locally owned meat
shops, “corner” shops such as gift stores,
druggist usually run by the same family for
generations

15. 2) Specialty Stores
Speciality stores specialize on specific merchandise and have a narrow
market focus

16. Specialty stores are in varied store size including:
• Big Retail giants such as Toys “R” Us, The Body Shop, Crosswords
• Individual shops/ Small shops such as Decathlon specializing in sportswear
a) They have specialized stock unlike general stores
b) Specialized information that customers value
c) Pricing is not a priority
d) Customers value brand image, product quality, service

17. Example: Chumbak
• Quirky designs, vibrant accessories
• Vibrancy and cheer associated with Chumbak premium units
• Open and modular design for various products
• Bright colours and paints adding appealing to the tastes of a particular segment

18. 4) Vending Machines
A vending machine is an automated piece of equipment wherein
customers can drop the money in the machine and acquire the
products

19. Some stores take a no frills approach, while others are "mid-range" or
"high end", depending on what income level they target
a) Products - Groceries, Drinks, Snacks, Children’s toys, Beauty
products and cosmetics, Fruits, Vegetables, Handkerchiefs, Towels,
Flowers and etc.
b) Place – railway stations, bus stations, offices, retail stores, hotels &
motels, skateboard shops, bowling alleys etc.
c) Price - Selling price of a product based on a cost percentage goal,
the price at the same level as the competition (or a little lower or
higher) and the manufacturer's suggested retail price
d) Promotion - Local and regional trade shows and distributor open
houses, social media, advertising, direct marketing, personal selling
e) People – Office goers, school and college students, travellers etc.
f) Marketing Strategy - trade shows, industry publications, Internet,
brochures, letterhead, and business correspondence

20. 5) e-tailer
a retailer selling goods via electronic transactions on the Internet

21. Product – Offers wide range and variety of products
Location and Presence-The web address, available globally through internet connection. Can establish a
presence through cross promotions (links between sites)
Merchandising - Web page layout
Promotional activity - Pricing strategies and campaigns
Inventory Management - Multiple inventory ownership options, with most prominent being traditional,
“just-in-time” and a hybrid of two

22. Advantages
• Content optimization:
Investments in search engine
optimization, keyword purchases,
and descriptive materials and
images
• Content integration and
syndication: Such as photos,
videos, blogs, recipes, ratings, and
reviews
• Point-of-sale (POS) data and
analytics
• Low overhead, IT infrastructure,
Execution speed ,Low advertising
costs, Customer tracking
capabilities , Multiple payment
options