The document discusses concepts in retail management including defining retailing as the last stage of distribution involving the sale of goods and services to consumers. It also covers the roles and environment of retailing, types of retail formats and classifications, concepts in retailing, and new trends in the industry. Organized retailing is growing in India with the rise of income levels and lifestyle changes.
1. The document discusses concepts related to retail management including an introduction to retailing, the role and environment of retailers, and various retail formats and classifications.
2. It notes that organized retail makes up only 2% of the Indian retail sector currently but is growing rapidly due to increases in income levels and changes in lifestyles.
3. Several retail evolution theories are covered including the wheel of retailing, accordion theory, dialectic process, and natural selection. Classification of retailers by ownership, operational structure, product range, pricing, and customer interaction are also outlined.
The document discusses concepts in retail management including:
1) Retailing involves selling goods and services to consumers for personal use and is the last stage of distribution from producers to customers.
2) Organized retailing in India is growing due to rising incomes and changing lifestyles but remains a small percentage of the overall retail sector.
3) Successful retailers are customer-focused and adapt to changes in customer preferences, technology, competition and regulations.
The document discusses retailing in India, including emerging trends, opportunities, challenges, and functions. It notes that India's retail industry contributes over 10% to GDP and employs around 8% of the population. Organized retailing is growing at 25% annually due to rising incomes, changing lifestyles, and urbanization. While traditional family-run stores dominate 98% of the market, organized retailing is growing. Opportunities exist due to India's economic growth and changing consumer preferences, but challenges include a lack of retail space and trained workforce as well as restrictions on foreign investment. The document also describes different retail formats and the role of information technology in retailing.
Retail marketing management - Introduction Unit 1Navin Raj Saroj
This document provides an introduction and overview of retail marketing and the retail industry. It discusses key concepts like the definition of retailing, distribution channels, characteristics of the retail industry, organized and unorganized retail formats, and major retailers in Nepal and India. It also summarizes factors driving the growing importance of retail, emerging trends in retail like improved customer service, and the dynamic nature of change in the retail industry based on environmental, cyclical, and conflict theories.
The document discusses concepts in retail management. It begins by defining retailing as the sale of goods and services to consumers for personal use. It then discusses the role of retailers in linking producers to customers. Organized retailing makes up only 2% of the Indian retail sector currently but is growing rapidly. Factors like rising incomes and lifestyle changes are contributing to the growth of organized retail formats in India. The retail environment in India differs from western countries in aspects like urban congestion and rural populations.
The document discusses various topics in retail marketing and management. It covers:
1. The different types of retail institutions including independent retailers, chains, franchises, leased departments, and consumer cooperatives.
2. The advantages and disadvantages of these different ownership structures. Chains have bargaining power from volume but less flexibility, while independents have more freedom but less scale.
3. Factors that influence customer value derived from retailers like store/product value, services, personnel, experience, image and loyalty programs versus costs.
4. Models of service quality including the technical and functional aspects of delivery that determine customer perceptions.
This presentation educates the audience about Strategic Retail Management. This presentation is intended for educational purposes. The examples used are also for educational purpose. If any person or organization has any issues pertaining to same, please inform me, I will alter the same.
This document discusses retail management. It defines retail management as managing all activities involved in making products available to customers, including capital raising, purchasing, accounting, distribution, product development, and marketing. The key aspects of retail management are bringing customers into stores to fulfill their needs by providing a variety of products and services in a convenient manner. Effective retail management requires considering social, economic, technological, political, and legal factors. The main challenges are providing excellent customer service while achieving fair profits in a competitive environment and retaining customers.
1. The document discusses concepts related to retail management including an introduction to retailing, the role and environment of retailers, and various retail formats and classifications.
2. It notes that organized retail makes up only 2% of the Indian retail sector currently but is growing rapidly due to increases in income levels and changes in lifestyles.
3. Several retail evolution theories are covered including the wheel of retailing, accordion theory, dialectic process, and natural selection. Classification of retailers by ownership, operational structure, product range, pricing, and customer interaction are also outlined.
The document discusses concepts in retail management including:
1) Retailing involves selling goods and services to consumers for personal use and is the last stage of distribution from producers to customers.
2) Organized retailing in India is growing due to rising incomes and changing lifestyles but remains a small percentage of the overall retail sector.
3) Successful retailers are customer-focused and adapt to changes in customer preferences, technology, competition and regulations.
The document discusses retailing in India, including emerging trends, opportunities, challenges, and functions. It notes that India's retail industry contributes over 10% to GDP and employs around 8% of the population. Organized retailing is growing at 25% annually due to rising incomes, changing lifestyles, and urbanization. While traditional family-run stores dominate 98% of the market, organized retailing is growing. Opportunities exist due to India's economic growth and changing consumer preferences, but challenges include a lack of retail space and trained workforce as well as restrictions on foreign investment. The document also describes different retail formats and the role of information technology in retailing.
Retail marketing management - Introduction Unit 1Navin Raj Saroj
This document provides an introduction and overview of retail marketing and the retail industry. It discusses key concepts like the definition of retailing, distribution channels, characteristics of the retail industry, organized and unorganized retail formats, and major retailers in Nepal and India. It also summarizes factors driving the growing importance of retail, emerging trends in retail like improved customer service, and the dynamic nature of change in the retail industry based on environmental, cyclical, and conflict theories.
The document discusses concepts in retail management. It begins by defining retailing as the sale of goods and services to consumers for personal use. It then discusses the role of retailers in linking producers to customers. Organized retailing makes up only 2% of the Indian retail sector currently but is growing rapidly. Factors like rising incomes and lifestyle changes are contributing to the growth of organized retail formats in India. The retail environment in India differs from western countries in aspects like urban congestion and rural populations.
The document discusses various topics in retail marketing and management. It covers:
1. The different types of retail institutions including independent retailers, chains, franchises, leased departments, and consumer cooperatives.
2. The advantages and disadvantages of these different ownership structures. Chains have bargaining power from volume but less flexibility, while independents have more freedom but less scale.
3. Factors that influence customer value derived from retailers like store/product value, services, personnel, experience, image and loyalty programs versus costs.
4. Models of service quality including the technical and functional aspects of delivery that determine customer perceptions.
This presentation educates the audience about Strategic Retail Management. This presentation is intended for educational purposes. The examples used are also for educational purpose. If any person or organization has any issues pertaining to same, please inform me, I will alter the same.
This document discusses retail management. It defines retail management as managing all activities involved in making products available to customers, including capital raising, purchasing, accounting, distribution, product development, and marketing. The key aspects of retail management are bringing customers into stores to fulfill their needs by providing a variety of products and services in a convenient manner. Effective retail management requires considering social, economic, technological, political, and legal factors. The main challenges are providing excellent customer service while achieving fair profits in a competitive environment and retaining customers.
The document discusses factors in the retail environment including population demographics, political, economic, social, and technological changes. It notes that demographics are quantifiable population data that can segment consumers by attributes like gender, age, income, and education level. Politically, retailers must follow laws and regulations to protect competition and customers. Economics affect retail through business cycles, consumer income and spending. Socially, retailers must adapt to trends like an aging population and more single-person households. Technologically, consumers are more informed and use self-service, while retailers operate globally with new technologies. Retailers must respond to changing customer demands in fashion, technology, and social trends over time.
This document provides an overview of retail management. It discusses various retail formats including traditional small stores, consumer cooperatives, and modern large format stores. It also covers the emergence of shopping malls in India. Franchising is explained as a method of business expansion where a franchisor allows others to use their brand name and systems. Key advantages like ready business models and disadvantages like high startup costs of franchising are mentioned. The document also briefly discusses legal issues and management aspects of retail operations and malls in India.
Retail management involves the sale of goods in small quantities directly to consumers. It brings the producer and ultimate user together through a chain of distribution where retailing is the last stage. Retail mix refers to the blend of product, price, place, promotion and people that create a unique retail operation. Retailing in India accounts for over 10% of GDP and 8% of employment. It is undergoing rapid growth and modernization with many international retailers entering the market. Technology is also transforming retailing through online sales and data analytics.
The document provides an introduction to retailing, including:
1) Defining retailing as the last stage of distribution involving the direct sale of goods to consumers. A retailer obtains products from suppliers to resell.
2) Describing the importance of retailing in supporting local communities and employment. Retail management involves selling goods and services to consumers for personal use.
3) Outlining emerging trends in retailing like the growth of e-commerce, rural retail markets, and international brands entering India. Technology and changing customer demands are altering the retail environment.
Retail Management by Neeraj bhandari (Surkhet Nepal)Neeraj Bhandari
This document discusses retail management in India. It defines retailing as activities involved in selling goods to final consumers. Retail management involves processes that help customers procure merchandise from stores. Major players in Indian retail include Pantaloon Retail, Shoppers Stop, Brandhouse, and Trent. Pantaloon Retail operates stores across 51 cities while Shoppers Stop has 51 department stores. Future prospects for retail in India are strong due to economic growth, infrastructure development, and changing consumer demographics.
Consumers satisfied with the store’s service quality are most likely to remain loyal. Service quality is being increasingly perceived as a tool to increase value for the consumer; as a means of positioning in a competitive environment to ensure consumer satisfaction, retention and patronage. Much of the attention focused on the service quality construct is attributable to the SERVQUAL instrument developed by Parasuraman, Zeithaml & Berry (1988) for measuring service quality.
The document provides information on retail management. It discusses the various processes involved in retail management, which help customers procure merchandise from stores for personal use. Retail management aims to provide a pleasurable shopping experience for customers. It also outlines different retail formats like convenience stores, supermarkets, and hypermarkets. The retail sector in India is transitioning from traditional small stores to organized retail formats. While organized retail is growing, around 90% of retail in India remains unorganized.
This document discusses opening an independent surfing equipment and apparel retailer in Victoria Square Shopping Centre in Belfast. The retailer would specialize in surfing gear and lifestyle brands. Key objectives include increasing market share and annual growth. Locating in Victoria Square offers accessibility and established lifestyle retailers. Key competitors focus on winter sports or solely surfing equipment. References are provided on consumer spending trends and the shopping centre's performance.
This document provides an introduction to the world of retailing. It defines retailing as business activities that add value to products and services sold to consumers. Retailers are part of the distribution channel between manufacturers and consumers. Retailers add value by providing assortment, breaking bulk, holding inventory, and offering services. Retailing is socially and economically significant due to retail sales, employment opportunities, and role as a global industry. The nature of retailing is changing from traditional mom and pop stores to today's technology-driven retailers.
The document discusses the history and development of retail business in India. It notes that retail began with village fairs and mom-and-pop stores and saw the emergence of early chains in textiles. The retail sector has grown in three waves since the 1990s. Modern retail formats now include department stores, supermarkets, malls and various specialty stores. Major players in the Indian retail market are discussed and challenges facing the industry such as infrastructure and competition from informal retailers are also summarized.
This document discusses types of retailers and trends shaping today's retail industry. It covers different categories of retailers like supermarkets, department stores, discount stores, specialty stores, and service retailers. It describes characteristics of each type, like the breadth and depth of merchandise offered, services provided, and pricing strategies. The document also discusses ownership structures for retail firms, including corporate chains, franchises, and independent stores. Overall trends discussed include increased industry consolidation, globalization, and the growing importance of multi-channel retailing.
This document discusses product mix and the product life cycle. It defines key characteristics of products and classifications of products based on their nature, consumers' intentions, and social benefits. It then outlines the four stages of the product life cycle: introduction, growth, maturity, and decline. For each stage, it provides details on sales, costs, profits, competition, and recommended marketing strategies. It concludes by noting some limitations to the product life cycle framework.
- Urbanization and increasing purchasing power in India is leading to growth of organized retailing. Several retail chains like Westside, Landmark, and Shoppers Stop have opened outlets across the country.
- There is large potential for growth in retail sector given India's population of 100 crore and 20 crore households, though currently only 25% of rural households have been effectively reached by marketers.
- Organized retailing provides benefits like value for customers, developing retail brands to build trust, and offering a one-stop shopping experience. The limitations of traditional small scale retailing include a fragmented supply base and higher operating costs.
Retailing involves the sale of goods and services directly to consumers for their personal use. It is the final stage in the distribution process where manufacturers sell products in bulk to retailers, who then break bulk and sell smaller quantities to consumers. Retail management involves all the processes that help customers shop easily and fulfill their purchase needs from retail stores. It aims to make shopping a pleasurable experience. Key aspects of retail management include understanding customer needs, providing desired products and services, maintaining appropriate inventory levels, and providing information to suppliers.
This document provides an overview of retailing and retail management. It defines retailing as involving the sale of goods or services to final consumers. It discusses the evolution of retailing in India from traditional formats like itinerant retailers, haats, and mandis to modern formats in organized retail like supermarkets and malls. It also outlines various growth drivers for the retail industry in India like rising disposable incomes, urbanization, and increased media exposure.
The document discusses the growth of organized retailing in India. Some key points:
- Organized retail makes up only 3% of the total retail market currently but is growing at over 25% annually. It is estimated to reach 10% by 2010.
- The retail market and economy is currently dominated by millions of small, independent shops and outlets. However, factors like rising incomes, education, globalization, and entry of large retailers are driving growth in organized retail.
- For organized retail to continue growing, challenges around real estate, infrastructure, skilled labor, and tax policy need to be addressed. When done right, organized retail benefits all stakeholders in the economy.
1. Product
Retailers must have the right assortment of products and sell them in a manner compatible with their marketing view retailers must decide on the number of assortments in the store and the number of products in each range. In addition, they must select the quality of the articles within each category, decide on pricing policy. Finally, retailers must determine if the assortments should generally be stable over time
2. Price
A price strategy should reflect the company's own objectives and be related to the sales and profit. The goals to be achieved can be established as income and/ or volume units.
a) Market penetration pricing strategy is used when the retailer wishes to acquire revenue by setting a low price and selling a large number of product units.
b) High price strategy is used by the company to attract customers who are not concerned about the price, but the service and prestige. Usually the strategy does not maximize sales, but brings great profit per unit.
c) Cost-oriented pricing strategy The retailer sets the price, adding the operating expenses and desired profit to the cost per unit. The difference between the merchandise cost and the selling price is the trade margin. With a variable margin policy, retailers adjust the margins on merchandise categories.
d) The strategy of prices adjustment to market conditions The retailer may adjust prices according to the demand or market segment. The best example of adapting the retailer prices from Romania to the market demand are represented by some food prices (oil, sugar, flour) and durable goods prices (electronics, appliances, cars) in 2008.
e) Competition-oriented price strategy A retailer can use competition prices as guide. A company may not modify prices if there have been changes in demand or costs, if they are not modified by competition. Similarly, a firm may change its prices if the competition changes them, even if there have not been changes in demand or costs.
3. Place
Some specialists substituted in the literature the term "distribution channel" with "marketing channel” This change aims to emphasize the role of intermediaries in the distribution process, to create value for users or consumers, adding the utility of form, possession, time and place. In addition, the role of marketing channels is not only to participate in demand satisfaction by offering goods and services, but it also requires active participation to stimulate demand through information, creating proximity and promotion developed by members of the economic units network that form the channel. The product must be available at the right place (Product category), at the right time (time you sell your product), and in the right quantity (enough stock).
4. Promotion
Some specialists considers that the role of the promotion policy in the retail business is to attract potential consumers (creating traffic in store) to convert visitors into consumers and to retain buye
The document discusses competition and pricing in the Indian food retailing industry. It provides background on the emergence of modern retail formats in India and the classification of different retail store types. It then focuses on food retailing, describing some of the major players in the industry like Reliance Fresh, Subhiksha, Food Bazaar, and More Retail. It also discusses opportunities for new food retail formats and the factors influencing the business environment for different formats.
The document discusses the retail industry and trends in India. It notes that retail is expected to reach Rs. 25,000 billion by 2008 in India. Organized retailing is growing in both food and non-food segments. By 2015, India will have over 700 shopping malls, up from 400 operational malls in 2010. The document also examines relationships between retailers and suppliers, different retail formats, and drivers of success in the retail sector such as customers, education, and planning.
Research is defined as a systematic investigation designed to develop or contribute to generalizable knowledge. It involves carefully defining problems, formulating hypotheses, collecting and organizing data, making deductions, reaching conclusions, and testing conclusions. The main objectives of research are to gain familiarity with phenomena, accurately portray characteristics, determine frequencies of occurrences, and test hypotheses of causal relationships between variables. In conclusion, research is a systematic and logical process that follows specified steps in a specified sequence according to a set of rules.
This document discusses key elements of developing a retail strategy. It outlines why a retail strategy is important, including analyzing market requirements, outlining goals, differentiating from competitors, and coordinating efforts. It describes steps to develop a strategy, such as defining the target market and competitive advantages. Elements of a retail strategy are identified as the target market, retail format, competitive advantages, and criteria for selecting markets. Sources of competitive advantage and defining the organization's mission are also discussed.
The document discusses factors in the retail environment including population demographics, political, economic, social, and technological changes. It notes that demographics are quantifiable population data that can segment consumers by attributes like gender, age, income, and education level. Politically, retailers must follow laws and regulations to protect competition and customers. Economics affect retail through business cycles, consumer income and spending. Socially, retailers must adapt to trends like an aging population and more single-person households. Technologically, consumers are more informed and use self-service, while retailers operate globally with new technologies. Retailers must respond to changing customer demands in fashion, technology, and social trends over time.
This document provides an overview of retail management. It discusses various retail formats including traditional small stores, consumer cooperatives, and modern large format stores. It also covers the emergence of shopping malls in India. Franchising is explained as a method of business expansion where a franchisor allows others to use their brand name and systems. Key advantages like ready business models and disadvantages like high startup costs of franchising are mentioned. The document also briefly discusses legal issues and management aspects of retail operations and malls in India.
Retail management involves the sale of goods in small quantities directly to consumers. It brings the producer and ultimate user together through a chain of distribution where retailing is the last stage. Retail mix refers to the blend of product, price, place, promotion and people that create a unique retail operation. Retailing in India accounts for over 10% of GDP and 8% of employment. It is undergoing rapid growth and modernization with many international retailers entering the market. Technology is also transforming retailing through online sales and data analytics.
The document provides an introduction to retailing, including:
1) Defining retailing as the last stage of distribution involving the direct sale of goods to consumers. A retailer obtains products from suppliers to resell.
2) Describing the importance of retailing in supporting local communities and employment. Retail management involves selling goods and services to consumers for personal use.
3) Outlining emerging trends in retailing like the growth of e-commerce, rural retail markets, and international brands entering India. Technology and changing customer demands are altering the retail environment.
Retail Management by Neeraj bhandari (Surkhet Nepal)Neeraj Bhandari
This document discusses retail management in India. It defines retailing as activities involved in selling goods to final consumers. Retail management involves processes that help customers procure merchandise from stores. Major players in Indian retail include Pantaloon Retail, Shoppers Stop, Brandhouse, and Trent. Pantaloon Retail operates stores across 51 cities while Shoppers Stop has 51 department stores. Future prospects for retail in India are strong due to economic growth, infrastructure development, and changing consumer demographics.
Consumers satisfied with the store’s service quality are most likely to remain loyal. Service quality is being increasingly perceived as a tool to increase value for the consumer; as a means of positioning in a competitive environment to ensure consumer satisfaction, retention and patronage. Much of the attention focused on the service quality construct is attributable to the SERVQUAL instrument developed by Parasuraman, Zeithaml & Berry (1988) for measuring service quality.
The document provides information on retail management. It discusses the various processes involved in retail management, which help customers procure merchandise from stores for personal use. Retail management aims to provide a pleasurable shopping experience for customers. It also outlines different retail formats like convenience stores, supermarkets, and hypermarkets. The retail sector in India is transitioning from traditional small stores to organized retail formats. While organized retail is growing, around 90% of retail in India remains unorganized.
This document discusses opening an independent surfing equipment and apparel retailer in Victoria Square Shopping Centre in Belfast. The retailer would specialize in surfing gear and lifestyle brands. Key objectives include increasing market share and annual growth. Locating in Victoria Square offers accessibility and established lifestyle retailers. Key competitors focus on winter sports or solely surfing equipment. References are provided on consumer spending trends and the shopping centre's performance.
This document provides an introduction to the world of retailing. It defines retailing as business activities that add value to products and services sold to consumers. Retailers are part of the distribution channel between manufacturers and consumers. Retailers add value by providing assortment, breaking bulk, holding inventory, and offering services. Retailing is socially and economically significant due to retail sales, employment opportunities, and role as a global industry. The nature of retailing is changing from traditional mom and pop stores to today's technology-driven retailers.
The document discusses the history and development of retail business in India. It notes that retail began with village fairs and mom-and-pop stores and saw the emergence of early chains in textiles. The retail sector has grown in three waves since the 1990s. Modern retail formats now include department stores, supermarkets, malls and various specialty stores. Major players in the Indian retail market are discussed and challenges facing the industry such as infrastructure and competition from informal retailers are also summarized.
This document discusses types of retailers and trends shaping today's retail industry. It covers different categories of retailers like supermarkets, department stores, discount stores, specialty stores, and service retailers. It describes characteristics of each type, like the breadth and depth of merchandise offered, services provided, and pricing strategies. The document also discusses ownership structures for retail firms, including corporate chains, franchises, and independent stores. Overall trends discussed include increased industry consolidation, globalization, and the growing importance of multi-channel retailing.
This document discusses product mix and the product life cycle. It defines key characteristics of products and classifications of products based on their nature, consumers' intentions, and social benefits. It then outlines the four stages of the product life cycle: introduction, growth, maturity, and decline. For each stage, it provides details on sales, costs, profits, competition, and recommended marketing strategies. It concludes by noting some limitations to the product life cycle framework.
- Urbanization and increasing purchasing power in India is leading to growth of organized retailing. Several retail chains like Westside, Landmark, and Shoppers Stop have opened outlets across the country.
- There is large potential for growth in retail sector given India's population of 100 crore and 20 crore households, though currently only 25% of rural households have been effectively reached by marketers.
- Organized retailing provides benefits like value for customers, developing retail brands to build trust, and offering a one-stop shopping experience. The limitations of traditional small scale retailing include a fragmented supply base and higher operating costs.
Retailing involves the sale of goods and services directly to consumers for their personal use. It is the final stage in the distribution process where manufacturers sell products in bulk to retailers, who then break bulk and sell smaller quantities to consumers. Retail management involves all the processes that help customers shop easily and fulfill their purchase needs from retail stores. It aims to make shopping a pleasurable experience. Key aspects of retail management include understanding customer needs, providing desired products and services, maintaining appropriate inventory levels, and providing information to suppliers.
This document provides an overview of retailing and retail management. It defines retailing as involving the sale of goods or services to final consumers. It discusses the evolution of retailing in India from traditional formats like itinerant retailers, haats, and mandis to modern formats in organized retail like supermarkets and malls. It also outlines various growth drivers for the retail industry in India like rising disposable incomes, urbanization, and increased media exposure.
The document discusses the growth of organized retailing in India. Some key points:
- Organized retail makes up only 3% of the total retail market currently but is growing at over 25% annually. It is estimated to reach 10% by 2010.
- The retail market and economy is currently dominated by millions of small, independent shops and outlets. However, factors like rising incomes, education, globalization, and entry of large retailers are driving growth in organized retail.
- For organized retail to continue growing, challenges around real estate, infrastructure, skilled labor, and tax policy need to be addressed. When done right, organized retail benefits all stakeholders in the economy.
1. Product
Retailers must have the right assortment of products and sell them in a manner compatible with their marketing view retailers must decide on the number of assortments in the store and the number of products in each range. In addition, they must select the quality of the articles within each category, decide on pricing policy. Finally, retailers must determine if the assortments should generally be stable over time
2. Price
A price strategy should reflect the company's own objectives and be related to the sales and profit. The goals to be achieved can be established as income and/ or volume units.
a) Market penetration pricing strategy is used when the retailer wishes to acquire revenue by setting a low price and selling a large number of product units.
b) High price strategy is used by the company to attract customers who are not concerned about the price, but the service and prestige. Usually the strategy does not maximize sales, but brings great profit per unit.
c) Cost-oriented pricing strategy The retailer sets the price, adding the operating expenses and desired profit to the cost per unit. The difference between the merchandise cost and the selling price is the trade margin. With a variable margin policy, retailers adjust the margins on merchandise categories.
d) The strategy of prices adjustment to market conditions The retailer may adjust prices according to the demand or market segment. The best example of adapting the retailer prices from Romania to the market demand are represented by some food prices (oil, sugar, flour) and durable goods prices (electronics, appliances, cars) in 2008.
e) Competition-oriented price strategy A retailer can use competition prices as guide. A company may not modify prices if there have been changes in demand or costs, if they are not modified by competition. Similarly, a firm may change its prices if the competition changes them, even if there have not been changes in demand or costs.
3. Place
Some specialists substituted in the literature the term "distribution channel" with "marketing channel” This change aims to emphasize the role of intermediaries in the distribution process, to create value for users or consumers, adding the utility of form, possession, time and place. In addition, the role of marketing channels is not only to participate in demand satisfaction by offering goods and services, but it also requires active participation to stimulate demand through information, creating proximity and promotion developed by members of the economic units network that form the channel. The product must be available at the right place (Product category), at the right time (time you sell your product), and in the right quantity (enough stock).
4. Promotion
Some specialists considers that the role of the promotion policy in the retail business is to attract potential consumers (creating traffic in store) to convert visitors into consumers and to retain buye
The document discusses competition and pricing in the Indian food retailing industry. It provides background on the emergence of modern retail formats in India and the classification of different retail store types. It then focuses on food retailing, describing some of the major players in the industry like Reliance Fresh, Subhiksha, Food Bazaar, and More Retail. It also discusses opportunities for new food retail formats and the factors influencing the business environment for different formats.
The document discusses the retail industry and trends in India. It notes that retail is expected to reach Rs. 25,000 billion by 2008 in India. Organized retailing is growing in both food and non-food segments. By 2015, India will have over 700 shopping malls, up from 400 operational malls in 2010. The document also examines relationships between retailers and suppliers, different retail formats, and drivers of success in the retail sector such as customers, education, and planning.
Research is defined as a systematic investigation designed to develop or contribute to generalizable knowledge. It involves carefully defining problems, formulating hypotheses, collecting and organizing data, making deductions, reaching conclusions, and testing conclusions. The main objectives of research are to gain familiarity with phenomena, accurately portray characteristics, determine frequencies of occurrences, and test hypotheses of causal relationships between variables. In conclusion, research is a systematic and logical process that follows specified steps in a specified sequence according to a set of rules.
This document discusses key elements of developing a retail strategy. It outlines why a retail strategy is important, including analyzing market requirements, outlining goals, differentiating from competitors, and coordinating efforts. It describes steps to develop a strategy, such as defining the target market and competitive advantages. Elements of a retail strategy are identified as the target market, retail format, competitive advantages, and criteria for selecting markets. Sources of competitive advantage and defining the organization's mission are also discussed.
The document discusses strategic planning in retail. It outlines the key components of developing a strategic retail plan, including deciding the store's philosophy, mission, and objectives through establishing a vision and conducting situational analyses. It also discusses formulating a retail strategy using Ansoff's matrix to determine options like market penetration, product development, market development, and diversification. Finally, it discusses implementing the strategic plan and considerations around ethics in retailing related to customers, employees, suppliers, and other stakeholders.
The document discusses retail strategy formulation. It begins with defining the retailer's mission which is the core of its existence. A situation analysis is then conducted to understand strengths, weaknesses, opportunities and threats. Various strategic alternatives like market penetration, market development, retail format development and diversification are identified. Objectives are set and resources are obtained to implement the chosen strategy. Progress is then monitored through evaluation and control. International expansion is also discussed as a growth strategy through various methods like exports, franchising, joint ventures, acquisitions and organic growth.
This document discusses elements of retail strategy, including target market, retail format, and sustainable competitive advantage. It examines criteria for selecting target markets and potential sources of competitive advantage. The document also outlines the strategic retail planning process and provides examples of strategies for growth, global expansion, and building customer loyalty.
This document outlines the key elements of developing an effective retail strategy. It discusses identifying the target market and retail format, and establishing a sustainable competitive advantage through strong customer relationships, supplier partnerships, efficient operations, and strategic locations. The document also covers growth strategies like market penetration, expansion, format development, and diversification. Finally, it summarizes the 7-step strategic retail planning process of defining the mission, conducting a situation audit, identifying opportunities, evaluating alternatives, setting objectives, developing the retail mix, and evaluating performance.
The document discusses concepts in retail management. It begins by defining retailing as the sale of goods and services to consumers for personal use. It then discusses the role of retailers in linking producers to customers. Organized retailing makes up only 2% of the Indian retail sector currently but is growing rapidly. Factors like rising incomes and lifestyle changes are contributing to the growth of organized retail formats in India. The retail environment in India differs from western countries in aspects like urban congestion and rural populations.
This document provides an overview of retail management concepts. It begins with the objectives and an introduction to retailing. It then discusses theories of institutional change in retailing and provides examples of the wheel of retailing, dialectic process, accordion, and natural selection theories. The document also classifies retailers based on ownership, operational structure, merchandise mix, pricing type, and consumer interaction. It describes various types of traditional and modern format retailers.
This document discusses retailing and wholesaling. It begins by defining retailing as activities involved in selling goods or services directly to consumers. Retailers are classified as store or non-store. The wheel of retailing explains how retailers evolve their strategies. Retailers select target markets and develop their marketing mix. Wholesalers are intermediaries that sell to businesses and retailers. They provide functions like storage, transportation and financing. Wholesalers are classified by ownership and type, including merchant wholesalers and agents/brokers. The document concludes with an overview of direct marketing and non-store retailing methods like mail order, internet, and vending machines.
RTMNU 4th sem MBA
Subject - Retail Sales Management & Services Marketing [ Marketing ]
Module 1
INTRODUCTION TO RETAILING
BY Jayanti Pande
#JayantiPande_slideshare
#RetailSalesSummary
Free MBA notes pdf rtmnu
This document provides an overview of food retailing in India. It discusses the evolution of food retailing from small roadside shops to modern retail stores. It also describes the major types of retail stores like department stores, supermarkets, hypermarkets and chain stores. Non-store retailing methods like direct selling, telemarketing, online retailing and direct marketing are also outlined. The top 10 food retailers in India are listed, and some of the leading food retail brands like Food World, Apna Bazaar and Reliance Fresh are briefly profiled. Competition in the Indian food retail industry is described as fierce, with retailers differentiating through pricing and product offerings.
The document discusses the retail sector in India, including the global retail scenario compared to India, key drivers and bottlenecks of the Indian retail sector, emerging trends such as e-commerce, and concepts in retail such as merchandising and visual merchandising. It also covers retail operations, marketing, equipment and procedures used at the point of sale.
This document discusses the retail industry and organized retailing in India. It defines key terms like retailing, retailer, and organized versus unorganized retail. It notes that organized retail makes up only 2% of the Indian market currently but is growing rapidly. The retail industry is transforming in India as incomes rise, more people live in cities, and consumers aspire to new products and shopping experiences. Future projections estimate organized retail will capture 28% of the Indian market by 2017, representing rapid growth compared to other countries at similar development levels.
Retail Management Notes, Basics of Retail Management, Classification of Retailers, Types of Retailers, Scope of Retailing, Functions of Retailers, Role of Retailers in Distribution Channel, Indian retailscape, organized and Unorganized Retailers,
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Retail management involves promoting greater sales and customer satisfaction through understanding consumer behavior. Retailing includes selling goods and services for personal use. Retailers sort, break bulk, hold stock, provide additional services, act as communication channels, and facilitate transportation between wholesalers/suppliers and consumers. Factors influencing retail location include the range of merchandise, convenience, travel time, socioeconomic factors, and family lifecycle stage. Setting up a retail business requires considering target markets, positioning strategy, merchandising, format, customer service, and communication.
The document provides an overview of the retail industry. It discusses the evolution and history of retail, the major retail store formats, demand and supply drivers, key metrics like same store sales and inventory turnover, the top 10 retailers globally which are mostly American companies, and the retail industry and major players in India. It also covers retail pricing strategies, how products are transferred to consumers, challenges facing the Indian retail industry, and the foreign direct investment policy regarding retail in India which currently only allows 100% FDI in wholesale cash and carry and 51% in single brand retail.
The document provides an overview of retailing, including key definitions and concepts. It discusses the main sectors of retailing like department stores, specialty stores, discount stores, and warehouse clubs. Some of the main challenges faced by the retail sector are changes in consumer behavior, legal and security issues, and technological changes. Retail growth can be analyzed using different theories such as the wheel of retailing, retail accordion theory, theory of natural selection, and retail lifecycle theory. Understanding retail consumers involves comprehending their shopping habits, purchasing patterns, and reactions to promotions based on factors like demographics, culture, income, and psychology.
The document discusses retailing concepts and the pharmaceutical retail sector in India. It notes that retailing involves the sale of goods from a fixed location for direct consumption. There are three major types of retailing: markets, shops/stores, and virtual retail. It then discusses the introduction of organized retail in the pharmaceutical sector in India and how this poses challenges for small pharmaceutical retailers. Finally, it provides an example of the growth of Apollo Pharmacies' store additions on a year-over-year basis.
This document discusses retail management and visual merchandising. It provides information on different types of retailers like organized vs unorganized retailers, and retail formats like department stores, boutiques, and warehouse stores. It also discusses key aspects of retail management like service quality, buying and assembling products, warehousing, selling, financing, and market research. Visual merchandising aims to attract customers and increase sales through creative displays, lighting, and product placement. The tasks of visual merchandisers include designing displays, obtaining props, and maintaining merchandise presentation.
he food retail industry covers a broad range of stores and outlets involved in the selling of products to consumers. In most cases, the modern retail trade includes hypermarkets, supermarkets, grocery stores, convenience stores, and independent specialized stores (butchers, flower shops, etc.
A brief overview to fmcg retail supermarket sector pptVishnu Kumar
The document provides an overview of the Indian retail supermarket sector, covering topics such as retail formats, merchandising, inventory management, and technology used. It discusses the evolution of retailing from traditional general trade to modern formats like supermarkets and hypermarkets. Supermarkets offer a wide range of products to customers in a self-service environment, while hypermarkets combine supermarket and department store functions under one roof. The document also examines concepts like the retail life cycle and factors important for retail operations and management.
This document provides an abstract and contents section for a project on the effectiveness of the retailing mix at Big Bazaar. The abstract discusses how retailers must pursue policies to achieve objectives, with their retailing mix being their marketing strategy. It also discusses how retailing is economically significant by generating revenue, encouraging investment, and creating employment. The contents section outlines that the introduction will discuss the background and significance of studying retailing mixes. It will also cover Big Bazaar's company profile and introduce the retail industry. The methodology, analysis, summary, and bibliography are also included.
Report -The Viability Of Liverpool Retail India LtdNikita Sanghvi
Through the market survey and personal interviews I suggested a new financial proposal for the Liverpool Retail India Ltd. My suggestions included that the company should keep their merchandise in the new format of retail outlets i.e. Large Format Stores
Study material retail concept and practicesSwatiYadav163
This document discusses retail concepts and practices. It covers several topics related to retail management including the concept of retailing, types of retailers like department stores and convenience stores, and retail formats such as stores, catalogs, and internet. It also discusses the importance of retailing in shaping lifestyles and contributing to the economy. Retailing is an important industry that involves the sale of goods and services to consumers.
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2. RETAIL
MANAGEMENT ..1
INTRODUCTION –
CONCEPTS, ROLE & ENVIRONMENT
RETAILING Business activities involve Selling
Goods and Services to Consumers for their
Personal, Family or Household use.
“Every sale of Goods and Services to final
consumer” – Food products, apparel,
movie tickets; services from hair cutting to
e-ticketing.
Retailing is the Last stage in Distribution
Process- Wholesale is an intermediate
where Goods and services are sold to
Business customers.
3. RETAIL
MANAGEMENT ..1
Retailer is customer focused, not Product –
focused.
Manufacturer may reach customers
through:
Dealers
Company showrooms
Super / Hypermarkets
Manufacturers will decide on Retail
Distribution:
Intensive
Selective
Exclusive
4. RETAIL
MANAGEMENT ..1
ORGANISED RETAILING
In India Organised Retailing is 2%
Retail sector highly fragmented
Retail chains like Wal Mart, Sears,
McDonalds brought Rapid Growth
and consolidation of Organised
Retail
Rapid rise of Income levels and
accompanying changes in lifestyles
greatly contributed to growth of
Organised Retail
5. RETAIL
MANAGEMENT ..1
ORGANISED RETAILING
In India, increase in Disposable
income, Purchasing Power of growing
Middle Class conducive conditions for
growth of Organised Retail
Indian Retail environment different
from that of western countries:
- Cities congested, large population in
rural areas
- Smaller purchases, limited household
space
6. RETAIL
MANAGEMENT ..1
RETAILING CONCEPT
“Retaillier” French for breaking bulk
Retailer links Producers to Customers
Retailer is a person, agent, agency,
company or organisation reaching the
Goods or Services to ultimate
consumer
Retailers perform specific activities:
Anticipate customer wants
Stock product assortments
Acquire market information
Finance Retail business
7. RETAIL
MANAGEMENT ..1
RETAILING CONCEPT
Retailing may take place through:
Retail Store
Mail Direct
Internet Sales
Door-to-door
Retail services like Restaurants, Hotels,
Parlour, Health Services, car rentals,
Travel
In USA Retail generates $3 trillion
through 23 mil. Employees. Wal Mart
generates $245 Bio. sales through 1
Mio.nationally and .3 Mio. Foreigners.
8. RETAIL
MANAGEMENT ..1
Strong economies have a strong
Retail sector
Entry in retail sector is easy, hence
results in fierce competition
Retail must perform its primary role
of catering to customer satisfaction
Retail earns modest profits of 9-
10%
Retail stores of different sizes face
distinct challenges. Their sales
volume influences:
- Merchandise purchase
- Promotion & - Expenses Control
9. RETAIL
MANAGEMENT ..1
Last decade has seen tremendous
changes in Retail Business – from
made to order to ready to wear,
from counter sales to self service,
emphasis on value addition and cost
reduction.
Family run retail business giving way
to modern professional retail.
Retail improving inventory
management through systems –
faster turnover, better profitability,
fast changing customer preferences
for assortment of goods and
services. BETTER CUSTOMER CARE
10. RETAIL
MANAGEMENT ..1
GLOBAL RETAIL INDUSTRY
1. Retail sales driven by Ability
(disposable income) and
willingness (consumer confidence)
2. Worldwide retail sales Est.$7 Trio.
3. Expenditure on Household
Consumption increased by 68%
between 1980 and 1998
4. Top 200 retailers account for 30%
worldwide demand
5. Over 50 of the Fotune 500 and 25
of Asian Top 200 are Retailers
11. RETAIL
MANAGEMENT ..1
ORGANISED RETAIL FORMAT
1. By 2006 - 200 Shopping Malls – Up
from 25 in 2003
2. Expect by 2006, to develop 40
mio.sq.ft. quality Retail Space
3. 6 A Grade cities Delhi NCR,
Mumbai, Bangalore, Hyderabad,
Chennai, Kolkata will have 34 mio.
and non metros Pune, Ahemadabad
Ludhiana, Chandigarh, Jaipur,
Lucknow, indore, Cochin 6 mio.
4. Delhi NCR will have 26 mio.,
Mumbai another 5 mio.
12. RETAIL
MANAGEMENT ..1
RETAIL CHARACTERISTICS
1. Direct End-User Interaction
2. Platform for Promotions & POP
displays
3. Lower unit sales
4. Retail location critical
5. Services as important as Core
Products
6. Large number of Retailers to meet
geographical coverage and
population density
13. RETAIL
MANAGEMENT ..1
RETAIL EVOLUTION THEORIES
Four theories of evolution are:
1. Wheel of Retailing Cyclical
2. Accordion theory Theories
3. Dialectic Process Evolutionary
4. Natural selection Theories
Cyclical: Begin with one state and
return to that state at some time
in future
Evolutionary: Changes similar to
biological evolution
14. RETAIL
MANAGEMENT ..2
Wheel of Retailing
Wheel represents phases through which
some types of Retailers pass:
Retailers attract customers – low price, low
service
Expand market – More expensive
merchandise, More services, open More
convenient locations. Trading up process
increases costs & price of their
merchandise, creating opportunities for
new low price retailers to enter e.g.
Discount stores & category specialists
Some Retailers don’t begin as low price,
low service entrants, e.g. Upscale fashion
specialty stores.
15. RETAIL
MANAGEMENT ..2
THE ACCORDION THEORY
Retailers fluctuate from strategy of
offering wide merchandise with shallow
assortment to offering limited
categories with deep assortment
In rural markets, Retailers sell many
categories under one roof: shoes,
cosmetics, foods, cloth, medicines.
However the assortment is shallow and
customers have limited choice.
Department stores have both width and
depth of merchandise
Speciality stores carry special categories
with deep selection
16. RETAIL
MANAGEMENT ..2
DIALECTIC PROCESS
An evolutionary theory based on premise
that retail institutions evolve.
The theory suggests that new Retail
formats emerge by adopting
characteristics from other forms of
retailers in much the same way as the
child is the product of the pooled genes
of the parents.
Specialty stores with high margins, low
turnover plush operations
Discount stores with low margins, high
turnover low operations
Both the above were synthesized to form
category specialist stores.
17. RETAIL
MANAGEMENT ..2
NATURAL SELECTION
Those Retail Institutions Succeed which
adapt to changes in customers,
Technology, competition and legal
environment.
Department stores have tried to
combat specialty stores by opening
specialty counters within the stores.
Interest in physical fitness and
increased number of women in
workforce have made salad bars in
grocery stores successful.
18. RETAIL
MANAGEMENT ..2
RETAIL BUSINESS CLASSIFICATION
1. Ownership Business:
Proprietorship,
Partnership,
Limited liability company
2. Operational Structure:
Independent Trader,
Chain Of Stores, Franchising,
Consumer Cooperative
3. Width & Depth Of Merchandise:
Specific Product Category
Wide Range
19. RETAIL
MANAGEMENT ..2
4. Type Of Pricing:
Low pricing, minimum Service
Premium Merchandise, High Service
Premium pricing, distinctive Image
5. Consumer Interaction:
Direct interaction
Mail Order
Tele-Selling
Vending machines
Door-to-door
Mobile Vending
20. RETAIL
MANAGEMENT ..2
GROCERS - Major business is grains,
provisions, spices, edible oils. Grocers
may be dealing in many other items.
GENERAL STORES - Deal in items
Daily needs and stocking number of
categories, is identified as a general
store.
CHEMIST- Deal in Ethical
Pharmaceutical Products. Require a
license and a Qualified Pharmacist.
Such outlets also deal in diverse FMCG
products.
21. RETAIL
MANAGEMENT ..2
MODERN FORMAT STORE –
a) Part of a chain of stores with self-
service facilities
b) Part of a chain, but does not have
self-service Facilities
c) Stand-alone (not part of a chain)
with self-service facilities
FOOD STORE : Deal mainly in food
products - milk, beverages, tea,
coffee, squashes, ketchup, jams,
chocolates, biscuits, bakeries etc.
22. RETAIL MANAGEMENT ..2
TOBACCO KIOSK : Deal in tobacco
products like Paan, Cigarettes, etc. are
called Pan Bidi shops. Many of them
also deal in packaged consumer
products like toilet soaps, toothpaste,
washing soaps, biscuits, confectionery,
batteries etc.
COSMETIC STORE : Deal in Ladies
Personal care products / Cosmetics,
General toiletry products, Men’s
toiletry products, Baby Care Products.
23. RETAIL
MANAGEMENT ..2
RETAIL CONCEPT
Customer Orientation:
Attributes & Needs satisfaction
Coordinated Efforts:
Maximize Business Efficiency
Value driven:
Good Value for Money
Goal Orientation
Achieve Goals
24. RETAIL
MANAGEMENT ..2
RETAILING CONCEPT
Communication with Customers
Identify Customers Needs
Provide Products and Services to
Satisfy Customers
Elicit Feedback to Improve
Services – Word Of Mouth
25. RETAIL
MANAGEMENT ..2
RETAILING CONCEPT
Customer Service approach:
Create a conducive environment
Listen to your Customers
Direct mail
Relationship Marketing – Long Term
Rewards for Regular Customers
26. RETAIL
MANAGEMENT ..2
ROLE
Consumer spend their money at Retail
which drives the economy. Retailers
realize Revenue when Consumers buy
products or Services from them.
The revenue passes up the Consumer
Goods distribution chain viz. to
Wholesalers, Distributors and
Manufacturers.
27. RETAIL
MANAGEMENT ..2
Retail Industry employs 17-20% Workforce
that drives the Economy.
Retail trends often mirror trends in a
nation’s overall economy.
Retailers add value by Providing the Right
Product at The Right Place at the Right
Time.
28. RETAIL
MANAGEMENT ..2
ENVIRONMENT
Retailing is a Dynamic field with very
Competitive Environment.
Retailers act as Filters – Strong lobby
for success or otherwise of a Product or
Services.
Companies create Retailer Value and
Consumer Differential Advantage to
improve success rate of their Brands.
Constraints – Multiple Brands and SKUs
for each category, Shelf Space, funds
available, Turnover of Merchandise.
29. RETAIL
MANAGEMENT ..2
New Concepts & Trends
1. Vertical Retail Concept: Traditional
stores and Shop-in-Shop concepts –
mixture of system and individuality,
e.g. Sale of Non-food items like
newspapers, magazines with snacks,
beverages
2. Consumption Related Trends:
Increasing Consumers with Purchasing
Power & More Migrant Consumers
Demand for Broad selection of Products
Demand for Good quality Products e.g.
Honest, Original and Green Products
30. Indian Economy – GDP Projections Through 2022 (2007
Prices)
2007
13,245
2,897
2,630
2,374
2,232
916
979
1,068
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
US A
Germa
China
UK
F rance
India
Rus sia
Brazil 2012
15,354
4,197
3,198
2,648
2,470
1,409
1,304
1,369
- 5,000 10,000 15,000 20,000
US A
C hina
Germany
UK
F rance
India
R uss ia
Brazil
2017
17,031
6,341
3,513
2,953
2,761
2,119
1,688
1,789
- 5,000 10,000 15,000 20,000
US A
C hina
Germany
UK
F rance
India
Rus sia
Brazil
2022
19,751
9,229
3,766
3,251
3,085
3,128
2,103
2,282
- 5,000 10,000 15,000 20,000 25,000
US A
China
Germany
UK
F rance
India
Russ ia
Brazil
US$
Billion
US$
Billion
US$
Billion
US$
Billion
India is expected to be comparable with UK & France in GDP by 2022
*GDP figures are in real terms with base year as 2007
31. Rapid Transformation
Anticipated
Current Size & Future Projections for Indian Retail Market
336 376 421 471 527
590
1011
12 17 29 51 74 97
282
0
200
400
600
800
1000
1200
2007 2008 2009 2010 2011 2012 2017
US$Billion
Total Retail Organized Retail
28% share
Reach a share of 28% by 2017
33. Radical Transformation Anticipated
In Indian Retail
Country Share of
Organized
Retail
Years taken to
reach the level
from < 5%
China 20% 10
Poland 20% 8
Brazil 36% 15
Thailand 40% 18
US 85% 50
India 17% (estimated)
27% (estimated)
5
10
India looking at rapid GROWTH compared to other countries
34. Growth Of Indian Retail …
Indian Retail expected to grow close to 12% p.a. in the next 10
years
*Projected
Source: Technopak Analysis, CSO & Other Sources
35. RETAIL
MANAGEMENT ..3
WITH HIGH PRIVATE CONSUMPTION
Private Consumption US $568 Bn
(62%)
Retail US $352 Bn (62%)
Urban US $158 Bn (45%)
Rural US $194 Bn (55%)
Non-Retail US $358 Bn (38%)
• Public Spending +Gross Capital
Formation 38%
36. RETAIL
MANAGEMENT ..3
Rural India consists of 720 Million
consumers across 627,000 villages
17% of these villages account for 50%
of the rural population and 60% of the
rural wealth implying reaching out to
almost 100,000+ villages to address
even 50% of this rural opportunity
WITH HIGH PRIVATE CONSUMPTION
37. RETAIL
MANAGEMENT ..2
RAPID TRANSFORMATION
Investments in the range of US$ 20+ Billion
expected in the next 5years in Retail & its
Supply Chain alone
Size of modern retail likely to touch US$ 74+
Billion by 2011
At least 2.5 Million additional direct jobs
likely to be created in the next 5 years
Hyper-competition is expected to set in by
2008-9.
38. RETAIL
MANAGEMENT ..3
TRADITIONAL RETAILERS
Retail market is growing from US$ 336
billion to US$ 590 in 2012
That means an additional market of US$
254 billion
Even if the modern retailing can go from
US$ 12 billion to US$ 74 billion in 2011
Still US$ 180 billion is left to be addressed
by traditional retailers
The growth of modern retail will be more in
urban as compared to rural
39. RETAIL
MANAGEMENT ..3
BOOKS FOR REFERENCE
1. Retail Management By Chetan Bajaj
2. Retail Management By Berman &
Evans
3. Retail Management By Levy & Weitz
40. RETAIL
MANAGEMENT ..3
CASE STUDY:
Facts Of the Case – No assumptions
Key Issues
List alternatives
Evaluate alternatives
Recommend Course Of Action
41. RETAIL
MANAGEMENT ..2
TOTAL RETAIL EXPERIENCE
Merchandising & Display
Brands and Quality Of Goods
Inventory Carried
Customer Service
Pricing
Support Functions: Parking
Create Customer Excitement
42. RETAIL
MANAGEMENT ..2
TOTAL RETAIL EXPERIENCE
Possible Pitfalls:
Discount stores – Ample Stock
Neighborhood Store – Overly
Trendy Products
Full Service Store – Knowledgeable
Theme Restaurants – Novelty
wears off, food so-so, Prices high
MEET CUSTOMER NEEDS
43. RETAIL
MANAGEMENT ..2
OPPORTUNITIES:
Management –
Raise capital
Purchase
Use MIS to Control Operations
Employ for Sales Counters, Stores
and Cash Counters
Undertake Marketing Activities
Entrepreneurial Opportunities
45. RETAIL
MANAGEMENT ..3
Forward Retail Planning – FOCUS
Analysis Of Requirements Of Business
Set realistic Goals
Differentiate Itself for Target Customers
- Benchmarking
Knowledge Of Business Environment –
Legal, Economic, Competitive
Synergize efforts
Reduce Business Risk – Feedback and
Control
47. RETAIL
MANAGEMENT ..3
Distinctive Role In Market –
A Leader or a Follower
Leader – Unique strategy
Follower – Emulate standard Practices
with better execution than competitor.
Market Scope – Customer Base
Dynamic Decision In Sync. With Retail
Environment
48. RETAIL
MANAGEMENT ..3
Ownership and Management:
Sole Proprietorship –Individual accrues
Profits, Risks, Costs. Is Liable for Legal
Claims. Limited Capital and Expertise.
Partnership – Share Profits, Risks,
Costs. Owners Liable for Legal Claims.
Better Capital Investments and
Capabilities.
49. RETAIL
MANAGEMENT ..3
Corporation – Incorporated under law.
Funds through Sale of Stocks.
Ownership Transfer is easy. Private
Limited Company – Limited number of
Individuals with Limited Liability. Public
Limited Company – Open to Public to
Invest In Stocks. Profits and Dividends
attract Taxes. Managed by professional
managers.
50. RETAIL
MANAGEMENT ..3
Business:
Start A New Venture – Flexibility of
retailing Factors
Buy an Existing Business – Balance Of
Advantages should be Positive – weigh
the negatives carefully
Become A Franchisee – Combines
Enterprise with Known Brands. Brand
also puts a number of rigid Quality and
Business Restrictions.
51. RETAIL
MANAGEMENT ..3
Types Of Retail Goods & Services
Durable Goods
Furniture, Electrical Appliances,
Hardware, Timber, Jewelry,
Automotive and Spare Parts
Non-Durable
Apparel – Cloth, Garments, Food Group –
Green Grocers, Packaged Foods,
General Merchandise, Eating Places,
Petrol Stations, Chemists, Stationery
52. RETAIL
MANAGEMENT ..3
Service Establishments
Personal Services
Dry Cleaning, Health Care,
Photographic Goods, Barber Shops,
Amusement Services, Movie Theatres,
Clubs, Amusement Parks, Game
Arcades
Repair Services
Automobile, Electrical Gadgets, Watch
& Jewelry, Electronic Gadgets
53. RETAIL
MANAGEMENT ..3
Hotel Services
Hotels, Resorts
Professional Services
Lawyers, Doctors & Surgeons,
Chartered Accounts, Stock brokers,
Real Estate Agents
Potential Retail Business Owners
Aptitude for a Particular Business
54. RETAIL
MANAGEMENT ..3
Personal Aptitude
Knowledge, Experience, Qualifications,
Inborn Skills and Acquired Skills
Financial Resources
Land and Building, Fixtures, Equipment
Time Demands
Owner’s Availability
Personnel
Sales People, Inventory, Cashiers
56. RETAIL
MANAGEMENT ..3
Target Market – Customer Group To Be
Attracted and Satisfied.
Mass – Broad Spectrum of Customers
Concentrated – Specific group
Differentiated – Two or more distinct
Groups with Different Retail Approaches
57. RETAIL
MANAGEMENT ..3
TARGET MARKET TECHNIQUES
STRATEGY MASS MARKET CONCENTRATED DIFFERENTIATED
LOCATION Near Large
Population
Near Small
Medium Pop.
Near Large
Population
RETAILMIX Wide
Assortment,
Medium Qual.
Deep
Assortment,
High/ Low
Qual.
Distinct Goods
for Target
Market
PROMOTION Mass Advtg. Direct mail Different
Media for
Target Groups
PRICING Popular High or Low High, Medium
and Low
STRATEGY Large
Homogeneous
Group
Specific
Strat.
Directed at
Specific Gr.
Strategies
directed at
Heterogeneous
Groups
62. RETAIL
MANAGEMENT ..4
Pricing: High Profit %, Low Volume & Low
Profit %, High Volume
Loss Leader, Discounts -Clear Merchandise
EDLP Every Day Low pricing vs. Discounts
Promotion: Frequent Shopper Rewards,
Coupons, Sampling, Ads.
Location: Sales effectiveness –
Number of people pass by - % Enter –
% Buy- Average Amount per Sale
CASE STUDY – CONVENIENCE STORE
63. RETAIL
MANAGEMENT ..5
MERCHANDISE MANAGEMENT:
A Key Strategy: Develop & Implement
Merchandising - Plans Of Proper Assortment Of
Goods & Services As In Demand, make them
Available at Places, Times, Prices & Quantity to
Satisfy Target Customers
Merchandising Decisions dramatically affect
Performance.
Investments in Merchandising Skills & Talent
produce Better results than Investments in
Technology or other Skill Specialties. 70 -80 %
Results Depend on Merchandisers.
64. RETAIL
MANAGEMENT ..5
MERCHANDISING PLAN:
All Merchandising Decisions Based on
Plans-
1. Needs Of Target Market
2. Type Of Retail Business
3. Marketplace Positioning
: Mass - Wide & Deep Assortment – Broad
Customer Market
:Niche –Specific Market Segment – High
Customer Loyalty – Shields against
Conventional Competitors
65. RETAIL
MANAGEMENT ..5
4. Defined Value Chain – (Trends )
- Expected: Hygiene, Timely Service,
Knowledgeable, Stock Popular Products,
Returns/ Redressal
-Augmented: Special Services,
Differentiated Brands, Loyalty Prog.
-Potential: Elements not yet Perfected or
Opportunities not yet exploited.
5. Product Trends
66. RETAIL
MANAGEMENT ..5
Merchandising Plans will drive
Decisions:
Product Lines to Carry
Shelf Space to Allot to Different Products
Inventory Turnover
Pricing – Across Categories & Within
Promotions
Assortment – Breadth: Narrow or Wide
Depth: Deep Or Shallow
67. RETAIL
MANAGEMENT ..5
Scope Of Responsibility for Personnel:
Full Merchandising Functions – Buying &
Selling: Selection Of Merchandise,
Pricing Displays, Customer
Transactions.
Separate Buying & Selling Functions.
Micro Merchandising – Shelf space Basis
Demand Pattern
Cross Merchandising – Carry
Complimentary Goods & Services
Water, Soda, Soft Drinks, Juices, Ethnic
68. RETAIL
MANAGEMENT ..5
Merchandise Plan - Forecasting :
Staple Merchandise – Regular Daily Need
Products, Stable Sales – List Of products,
Inventory Level, Colours, Brands, Style Size
Assortment Merchandise – Apparel,
Furniture, Autos. Variety Of products to
enable Customers a Selection. Demand
Varies, Forecast difficult. Decision On
Product Lines, Styles Designs & Colours.
Model Stock Plan - Colour, Size, Qty.
69. RETAIL
MANAGEMENT ..5
Fashion Merchandise – Cyclical sales
due to Changing tastes and Life Styles
Seasonal Merchandise – Seasonality In
Sales – Summers Cottons, Winters
Woolens – Forecasting for Season
Fad Merchandise – High Level Of Sales
In a Short Time. Toys, Games are short
lived Fads. Extended fads – Residual
sales Continue for longer Periods. Never
Out List – Always in stock
70. RETAIL
MANAGEMENT ..6
PRICING STRATEGY IN RETAILING:
Retailer Prices Goods & Services to:
- Achieve Profitability
- Satisfy Customers
- Be Consistent with Overall Image, Sales,
Profits, ROI
Pricing Options:
- Discount Orientation
- At-the-market Orientation- Average Pricing
- Upscale Orientation
71. RETAIL
MANAGEMENT ..6
Discount Orientation:
- Low pricing as competitive advantage
- Low status Image, Fewer shopping
frills, Price based customers, Low
operating costs, High Inventory T/O.
At-the-market Orientation:
Middle Class shoppers
- Offers excellent service, Good
atmosphere
72. RETAIL
MANAGEMENT ..6
- Profit margins > = Moderate
- Quality > = Average
- Price Range Difficult to Expand as
Competition from Discount Stores or
Prestige Stores Squeezes the Range
Upscale Orientation:
- Prestige Major Competitive Edge
- Smaller Target Market, Higher
Operating Costs, lower Inventory T/O
Means Customer Loyalty,
73. RETAIL
MANAGEMENT ..6
Distinctive Services & Product Offerings,
High unit Profit margins
PROVIDE A GOOD VALUE IN
CUSTOMERS’ MIND FOR THE
CHOSEN PRICE ORIENTATION.
CUSTOMER NOT NECESSARILY
LOOKING FOR THE BEST PRICE BUT
FOR GOOD VALUE – REAL &
PERCEIVED -FOR MONEY.
74. RETAIL
MANAGEMENT ..7
Research on price In Buying Decisions
reveals Different Motivations for
Different market Segments.
CONSUMER PURCHASE & PRICING:
Price Elasticity Of Demand – Sensitivity to
Price Changes. Small % Change in
Price Substantial % Change in Demand
– High Price Elasticity. Urgency to
purchase is low or acceptable
substitutes exist.
75. RETAIL
MANAGEMENT ..7
Large % Change in Price Small %
Change in Demand – Demand In-
Elastic. Urgency to purchase is high or
there are no acceptable substitutes.
Occurs with Brand or Retailer Loyalty.
Unitary Elasticity - % Change in Price
directly off-set by % Changes in Quantity
Demand
76. RETAIL
MANAGEMENT ..7
In Retailing computing Price Elasticity is
Difficult due to other factors of Product
Mix also interplay. Demand hard to
predict. Price Sensitivity varies by
Market Segment based on Shopping
Orientation:-Economy: Shop around for
Lowest Price. Segment Growing rapidly.
- Status: Perceive Retailers as different,
Look for Prestige Brands and customer
Service.
77. RETAIL
MANAGEMENT ..7
- Assortment oriented: Seek Retailers
with Strong Assortment in Product
Categories and look for Fair Pricing
- Convenience Oriented: Shop only when
they Must at nearby locations with long
hours. Prepared to pay higher Prices.
- - Loss Leaders: Price below cost to
attract more customers.
- - Predatory Pricing: Seek to Reduce
Competition by selling at very low Pricing
78. RETAIL
MANAGEMENT ..7
Unit Pricing: Indicate Pricing at a unit,
e.g., per Kg – to enable quick
comparisons by customers.
Sharp Practices:
Bait and Switch Advertising:
Lures customer with exceptionally low
prices. On contact customer informed of
stock-out and offer another product.
79. RETAIL
MANAGEMENT ..7
Conflicts In Pricing:
Manufacturer Wholesaler
Retailer
Co. Price Distributor’s Price (a-b%)
Wholesale Price (a-w%)
Price To Retailer (a)
Price To Consumer (a+ c%)
Gray Market Goods: Imported Goods at
Lower Prices.
80. RETAIL
MANAGEMENT ..7
Market Pricing:High Competition,
customers seek lowest pricing. Price
increase leads to brand switching.
Administered Pricing: Strong product
Differentiation, Control by retailer on
Price charged. For customers Image,
Assortment, Personal service more
important than Price, e.g. Fashion
apparel stores, upscale restaurants.
81. RETAIL
MANAGEMENT ..7
PRICING OBJECTIVES:
Market Penetration – Achieve large
revenues by setting Low prices and sell
high unit volumes – an aggressive
strategy to discourage competition
Market Skimming – Profit is Objective.
Charge Premium Prices and attract
Customers seeking Service, Assortment
& Status. Does not maximize Sales. ROI
or early Cash Recovery Objectives met.
83. RETAIL
MANAGEMENT ..7
Prestige Pricing:
Premium pricing to convey exclusive
image for the product or Service. Evoke
perceptions of Quality and Prestige.
Habeebs Parlour, Delhi Golf Club,
Luxury hotels.
Odd – Even Pricing:
Odd Pricing to indicate lower “Good” deal.
Even Pricing to indicate higher quality.
84. RETAIL
MANAGEMENT ..7
Bundled Pricing:
Offering two or more Products or Services
at one price.
Fixed & variable Pricing:
Variable pricing for highly differentiated or
unbranded products. Fixed pricing for
Branded products.
85. RETAIL
MANAGEMENT ..8
PLANNING & CONTROL
Retailer forms a New Strategy or Adjusts
an Existing one, gathering and analyzing
feedback reveals effectiveness of
Operation. Feedback can be obtained
for:
- Attributes, Buying Behaviour
- Alternative Store location
- Inventory Planning
- Product Mix Offering
86. RETAIL
MANAGEMENT ..8
- Pricing
- Promotion
- Store image
Research efforts related to risk involved:
- Higher risk : Store Location
- Lower risk: Introduction of New Product
Line
Information Gathering and Processing is
ongoing for Feedback & Control
87. RETAIL
MANAGEMENT ..8
Non-systematic or Incomplete ways of
obtaining information due to constraints
of Time, Costs or Lack of Research
Skills:
- Using Intuition: Gut feel
- Assuming Past Trends to Continue and
follow past practices
- Copy Competition
- Devising a Strategy based on few
individuals perceptions
88. RETAIL
MANAGEMENT ..8
Example: Movie tickets cost –weekdays
vs. weekends and matinee vs. evenings
Toy store orders for holiday season basis
last year’s demand +. Research
indicated higher optimism and desire to
gift. Stock-out before peak, unable to get
delivery of extra stocks.
Chain Store in new Location – doing 40%
of expected business. Research shows
Store name and Image unknown, ad
media choice incorrect
89. RETAIL
MANAGEMENT ..8
Retailer’s Objectives direct Strategic
Planning – some Routine. Non-routine
require careful evaluation
Strategy outlined, new data required for
its operation acquired and files updated
or retrieved from storage, analyzed and
interpreted. All this at Information
Control Centre. Decisions made and put
into operation.
91. RETAIL
MANAGEMENT ..8
Performance results are fed to ICC and
compared with objectives set. Regular
and Exception reports ( Giving reasons
for deviation) generated and sent to
Operational Managers for necessary
action.
Building RIS
How active RIS role – Reports in routine
or as-and-when
92. RETAIL
MANAGEMENT ..8
Internal or Out-sourced- Some Specific
Researches can be out-sourced.
Cost Of RIS – 0.5 to 1.5% of revenue
Quanta of Data – Edit raw data and
share interpretation
Frequency of Data dissemination – who
receives which report
Data Storage – Easy retrieival, adequate
Longitudinal analysis (Period to Period)
93. RETAIL
MANAGEMENT ..9
RETAIL PROMOTION
All communication that informs,
persuades and reminds the target
market about marketing mix of the Retail
business.
Objectives of Communication:
- Increase customer Flow
- Increase Purchase BY Target Market
94. RETAIL
MANAGEMENT ..9
- Increase sale of Specific product
or Product Category
- Develop Store Image
Communication Promotion Mix:
- Advertising
- Sales Promotion
- Publicity
- Personal Selling
95. RETAIL
MANAGEMENT ..9
Department or Large Stores manage
through Promotion department of the
store. Small Retailers pool resources
with manufacturers for Promotions.
Advertising – Paid Communication using
Impersonal mass media: Print – news
papers, magazines, direct mail and AV
media like TV, radio.
Local, vernacular language Print media
used by small retailers.
96. RETAIL
MANAGEMENT ..9
Cable TV is also used by small retailers.
Large retailers use a combination of
media.
Sales Promotion is a paid Impersonal
communication offering additional value
to customer. Encourages customer visits
and Promotes trial and repeat Purchase
of focus Products or Services
Special events, In-store Demonstration,
Contests
97. RETAIL
MANAGEMENT ..9
Publicity -Un-paid form of Communication
that provides Information about the retail
through media.
A Powerful Business strategy evolves
through knowledge of Target
Customers, Clarity of Business
Objectives. Effective selection of media
for Promotion Strategy.
Major shift to Nuclear families in ’90’ s
have shifted focus on to kids in
Promotional strategies
98. RETAIL
MANAGEMENT ..10
ATMOSPHERICS & RETAIL SPACE
MANAGEMENT
REFERS TO THE PHYSICAL
CHARACTERISTICS OF THE RETAIL STORE
LIKE EXTERIORS, INTERIORS, LAYOUT
PLANNING AND VISUAL MERCHANDISING.
PLAY A SIGNIFICANT ROLE IN
ATTRACTING CUSTOMERS AND RETAINING
THEM
IMPROVING QUALITY OF SERVICE
EXPERIENCE
POSITIONING THE RETAIL OUTLET
99. RETAIL
MANAGEMENT ..10
DIMENSIONS OF ATMOSPHERICS:
PRESENTATION LIGHTING
STYLING COLOUR
PLANNING
DESIGN USE OF WALLS/ MATERIALS
APPEAL TO CUSTOMERS
EXTERIORS – STORE FRONT, DISPLAY
WINDOWS
INTERIORS – LIGHTING, COLOUR,
FACILITIES
ENHANCES DISPLAY & PROVIDES
RELEVANT INFORMATION
100. RETAIL
MANAGEMENT ..10
ATMOSPHERICS PLANNING RELEVANT FOR
ALL RETAIL SET-UPS, ESPECIALLY:
- PLANNED SHOPPING CENTRES
- LIFESTYLE STORES
A TIDY WORK ENVIRONMENT ATTRACTS A
HIGH STORE PATRONAGE
ATMOSPHERICS PLAY AN IMPORTANT ROLE:
- CREATE POSITIONING FOR RETAIL OUTLET
- ATTRACT NEW CUSTOMERS
- ORGANIZE STORE AND MERCHANDIZE
- ENRICH SHOPPING EXPERIENCE
101. RETAIL
MANAGEMENT ..10
ATMOSPHERICS ROLE IN RETAIL
STRATEGY
ATTRACTS NEW CUSTOMERS
CREATES A USP
FACILITATES EASY MOVEMENT INSIDE
THE STORE
FACILITATES ACCESS TO MERCHANDISE
INSIDE THE STORE
ENSURES OPTIMUM SPACE UTILIZATION
ENSURES EFFECTIVE & DESIRED
PRESENTATION INSIDE THE STORE
REDUCES PRODUCT SEARCH TIME
INSIDE THE STORE
102. RETAIL
MANAGEMENT ..10
CHOICE OF FIXTURES, DÉCOR,
SIGNAGE ENABLE CUSTOMERS
PERCEPTION. PROPER PLACEMENT OF
SIGNAGES INDICATING PRODUCTS
OFFERED INCREASE EFFECTIVENESS.
CUSTOMERS NECESSITY TO ASK
QUESTIONS INCREASE STRESS LEVELS.
UNIFORMS WORN BY STORE EMOLOYEES
ALSO REDUCE CUSTOMER STRESS AND
ANXIETY TO ASK QUESTIONS.
QUALITY OF STORE FIXTURES SIGNIFY A
RETAILER CUTTING CORNERS OR
MAKING LARGE PROFITS.
103. RETAIL
MANAGEMENT ..10
SIGNAGE, LAYOUT AND FURNISHINGS ADD
TO AMBIENCE AND EFFECTS STORE-
BROWSING COMFORT OF CUSTOMERS.
IN STORE ELEMENTS SUCH AS COLOUR,
LIGHTING AND MUSIC MAY AFFECT
PURCHASE DECISIONS MORE THAN POP
AND DISPLAYS. TO IMPROVE IN STORE
ATMOSPHERE, PERFUMES GET DESIRED
EFFECT – ESPECIALLY TO GET RID OF
CERTAIN ODOURS. IF THESE ARE
COMPLEMETARY TO THE STORE, THE
SERVICE QUALITY EXPERIENCE
104. RETAIL
MANAGEMENT ..10
MUSIC PLAYS AN IMPORTANT ROLE IN
ENHANCING CUSTOMER’S TIME SPENT
IN THE RETAIL OUTLET – ESPECIALLY
SOOTHING MUSIC, NOT THE FAST
PACED.
STIMULATE RETAIL ENVIRONMENT
PLEASURE EFFECT: CLASSICAL HINDI
MUSIC ENHANCES SHOPPERS’
ENJOYMENT
AROUSAL EFFECT: SLOW
INSTRUEMENTAL MUSIC RESULTS IN
105. RETAIL
MANAGEMENT ..10
DOMINANCE: CUSTOMERS FEEL DOMINANT
( IN CONTROL). ENVIRONMENTAL ASPECTS
- COLOUR OF INTERIORS, HEIGHT OF
CEILING DETERMINE CUSTOMER
DOMINANCE. FURNITURE AND FIXTURES
MAY IMPACT THE DURATION OF TIME
SPENT IN-STORE.
PHYSICAL ENVIRONMENT
STORE LAYOUT/DESIGN EMOTIONS SHOPPING
MERCHANDISE DISPLAY BEHAVIOUR
MUSIC
AROMA CUSTOMER’S
SENSES
111. RETAIL
MANAGEMENT ..11
CONTROL RETAIL STRATEGY
Rules to stay Competitive:
Commitment – Enthusiasm in Business
Share – Staff Involvement in Decision making
Listen & Communicate – Customers and Staff
Appreciate – Good efforts
Celebrate – Good Achievements
Motivate – Challenging goals and rewards for
High performers
Exceed – Deliver more than promises
Control – Operating Costs
Swim Upstream – Evaluate Competition and do
something Different.
113. RETAIL
MANAGEMENT ..10
OPPORTUNITY ANALYSIS
Overall Direction & Goals: Top Down
Middle Level: Inputs from Internal and
External Sources. Generate Ideas early.
Generate Specific Plans with Deadlines.
S ALES OPPORTUNITY GRID
Rates the promise of New and Established
Goods, Services, Store outlets
RETAIL PRICE, FLOOR SPACE, DISPLAY
COSTS, OPERATING COSTS, MARKUP;
SALES ESTIMATES, GROSS AND NET
PROFITS IN Rs. AT FIRST, SIX AND 12
MONTHS.
114. RETAIL
MANAGEMENT ..11
DEFINING PRODUCTIVITY
Efficiency with which a Retail Strategy is carried
out. Reach Sales and Profit Goals keeping
Operating Costs under control.
PERFORMANCE MEASURES
Criteria used to assess effectiveness and
setting standards for each performance.
Measures used: Total Sales Turnover,
Average Sales per store, Sales by Goods/
Service Category, Gross Margin/ ROInvst.,
Op.Income, Inventory T/O, Financial ratios,
Profitability