Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAMM301-Retail Management RM Chapter 1 Important Lecture Notes (MBA Study Material Notes)
AN INTRODUCTION
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RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
Need for FDI in Indian retail
? On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India.
? India in 1997 allowed (FDI) in cash and carry wholesale.
? automatic permission was granted in 2006.
? Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow
into India.
? 30% of food staples and perishable goods produced in India spoils because
poor infrastructure and small retail outlets prevent hygienic storage and
movement of the goods from the farmer to the consumer
? A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
Need for FDI in Indian retail
? On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India.
? India in 1997 allowed (FDI) in cash and carry wholesale.
? automatic permission was granted in 2006.
? Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow
into India.
? 30% of food staples and perishable goods produced in India spoils because
poor infrastructure and small retail outlets prevent hygienic storage and
movement of the goods from the farmer to the consumer
? A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year
Need for FDI in Indian retail
? FDI encourages firms to bring about:
?Improvements in supply chain
?Investment in technology
?Manpower and skill development
?Greater sourcing from India
?Benefit to Government
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
Need for FDI in Indian retail
? On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India.
? India in 1997 allowed (FDI) in cash and carry wholesale.
? automatic permission was granted in 2006.
? Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow
into India.
? 30% of food staples and perishable goods produced in India spoils because
poor infrastructure and small retail outlets prevent hygienic storage and
movement of the goods from the farmer to the consumer
? A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year
Need for FDI in Indian retail
? FDI encourages firms to bring about:
?Improvements in supply chain
?Investment in technology
?Manpower and skill development
?Greater sourcing from India
?Benefit to Government
Current trends in retailing
? New retail formats have emerged
? Internet age, increased computer awareness has made people buy online
? Specialty stores
? Sales promotions
? Retailers targeting not only tier 1 but also tier two and three
? Use of plastic money
? Improvement in infrastructure
? Partnerships and tie-ups among retailers
? Government support
? Sophisticated customers
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
Need for FDI in Indian retail
? On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India.
? India in 1997 allowed (FDI) in cash and carry wholesale.
? automatic permission was granted in 2006.
? Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow
into India.
? 30% of food staples and perishable goods produced in India spoils because
poor infrastructure and small retail outlets prevent hygienic storage and
movement of the goods from the farmer to the consumer
? A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year
Need for FDI in Indian retail
? FDI encourages firms to bring about:
?Improvements in supply chain
?Investment in technology
?Manpower and skill development
?Greater sourcing from India
?Benefit to Government
Current trends in retailing
? New retail formats have emerged
? Internet age, increased computer awareness has made people buy online
? Specialty stores
? Sales promotions
? Retailers targeting not only tier 1 but also tier two and three
? Use of plastic money
? Improvement in infrastructure
? Partnerships and tie-ups among retailers
? Government support
? Sophisticated customers
Problems of retailing
? High cost for unorganized sector
? Specialisation
? Poor infrastructure
? Lack of trained workforce
? Multiple and complex taxation system
? Threat of substitutes
? Bargaining power of suppliers
? Bargaining power of buyers
? Intense of rivalry
? Lack of data integrity
? Inability in selecting the right location
? Excessive shrinkage
? Poor merchandise mix
FirstRanker.com - FirstRanker's Choice
RETAIL MANAGEMENT
AN INTRODUCTION
retailing is??.
? DERIVED FROM FRENCH WORD RETAILLER
? BERMANS AND EVANS STATES THAT
?it encomasses the business
activities involved in selling
goods and services to consumers
for their personal , family, or
household use. it includes every
sale to final consumer ranging
from cars to apparel to meals at
restaurants to movie tickets.
retailing is the last stage in the
distribution channel ?
Concept in Retail management
? Retail
? Consumer Vs Customer
? Retailer
? Retail Store
? 2 types of retail
?Organised
?Unorganised
RETAIL MANAGEMENT
? What?is?retail?management:
? Retail management.?The?various?processes?
which?help?the?customers?to?procure?the?
desired?merchandise?from?the?retail?stores?
for?their?end?use?refer?to?retail
management.
? ?
Four pillars of retailing
oCustomer service orientation
oCo-ordinated effort
oValue ?Driven
oGoal orientation
Why retailing has become a popular method of
conducting business?
?Ease of variety of products
?Freedom of choice
?Customer service
FOUR PILLARS OF RETAILING
CHANNEL LEVELS IN DISTRIBUTION CHAIN
? Two types of Channel-
? Direct ?Zero level channel
Indirect:
?One level
Channel levels
? Two level
Three level:
CHARACTERISTICS OF RETAILING
? Direct interaction with customers/end customers.
? POP display and promotions
? Lower average amount of sales transaction
? Customer service plays a vital role
? Sales promotions are offered at this point only
? Retail outlets are more than any other form of business
? Location and layout are critical factors in retail business:
?Factors of production
?Market
?Potential demand
?Store image
POS displays & POP purchases
Definitions
? Point?of?Sale?(POS)?Displays
? They?are?Ads?placed?near the checkout or billing?counters?to?promote?
on-the-fly?purchase?that?the?customer?makes?at?the?last?minute
Point?of?Purchase?(POP)?Displays
? They?are?Ads?placed?near the merchandise?to?promote?the?sale?
where?the?customer?makes?buying?decision.
FUNCTIONS AND ACTIVITIES OF RETAILING
? SORTING: The retailers offer an assortment, spec ialize in the type of assortment and the
market to which the offering is made.
? ARRANGING AN ASSORTMENT OF OFFERINGS:
Retailers selection of merchandise
Assortment should contain:
?Substitute items of multiple brands
?SKU?s
?Prices
?Physical dimensions and attributes
? BREAKING BULK:
q according to customers convenience and stocking requirements
? HOLDING STOCK
? CHANNEL OF COMMUNICATION
? EXTENDING SERVICES
Category wise major retailers:
Category International Retailers Indian Retailers
Food &
Beverages
MC ?Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby
Tuesday, Subway, Baskin
Robbins
Nirulas, Haldiram, Barista, Caf? Coffee Day, Sagar
ratna, Wimpy, MTR, Rameshwar's
Apparel &
sporting
goods
Benetton, Lee Cooper , Nike,
Levis, Reebok, Marks& Spencer,
Lacoste
Raymond's, Woodland, Liberty, Action Shoes,
Pantaloons, S. Kumar, Shopper Stop, Life Style
Durables Sony, Philips, LG, Samsung,
Electrolux, Nokia,
Videocon, BPL, Singer, Onida,
Grocery Metro Cash&Carry, Shoprite
holdings
Food WMD, Nilgirinanz, Subhikha
Luxury LVMH, Swatch, Esprit, Bulgari,
Cartier
Tanishq, Titan, DTC
Role of retailer
? Link between Producer and consumer:
? Serves the consumer by acting as an intermediary and creating form , time
, place and ownership utility
? Serves as a channel member:
? Image Creator
? Managing Merchandise
? Store operations and Management
? The category role identifies the importance of the category to the retailer.
This is the role the retailer wants the category to play within their store.
?
Emergence of Organisations
of Retailing
? Ancient retailing ?
? Cretans
Phoenicians
Romans
Dark ages:
q Peddlers,
qFairs & flea market
qSpeciatiy shops during greek and Roman
qSmall stores-special line of goods-18
th
centuary
? Social development and their impact
qFirst department store in Paris-Bon Marche(1852)
q1800?s-rise of 5 & 10 ? cent stores
q1870-Montgomery ward launched the first mail order catalogue ?chain stores
? Industrial revolution
qIncrease in urbanisation ?emergence of shops
qEmergence of co-operatives to cater to working class
Emergence of Organisations of Retailing
Emergence of self service:with Piggly Wiggly store by Clarence Saunders
? Development of super markets and convenience stores
q1920-convenience stores
q1926-Tote?m stores-7 eleven
q1930 ?emergence of supermarkets and discount stores
? Speciality stores, malls, formats
? Rise of web
? Speciality stores-80?s
? Shopping malls-late 20
th
century
? Rise of web:
q1995-Amazon.com
Types of retail formats Retail types
? Three types of retailing:
? market
? Shop or store trading
? Virtual retail
Classification based on size, shape, product lines subdivided into:
? Store based
? Non store based
? Service retailing
Store based retailing
TYPES
Form of ownership Merchandise offered
Pricing
Indpt franchising Leased Consumer
Stores depts. Co-operatives
vVision regarding the nature and size of present and future
vDegree of control he wishes to have
vLegal and regulatory provisions
vTax provisions of various structure
vFinance
vLocality/ region/country
Independent stores: An independent retailer operates only one
retail establishment.
It is family managed business
Franchise: ?Franchising is a long-term cooperative relationship
between two entities?a franchisor and one or more franchisees?
that is based on an agreement in which the franchisor provides a
licensed privilege to the franchisee to do business?.
Eg;Mc Donald,Louis phillippe,Arrow
Leased department (SIS)
A leased department consists of space in a large retail store that is
rented to an outside vendor.
Cooperatives: is an organisation which employs
economies of scale on behalf of its members to get
discount from manufacturers and to pool marketing
Advantages:
Quality of product
Owners are also consumer
Better management
Disadvantages:
Customer segmentation
To much dependence
Lack of logistic, sales management
Store based Retailing:
General Merchandise retailers:
Departmental stores ? are retailers that carry a broad
variety and deep assortment, offer some customer
services, are organised into separate departments for
displaying merchandise.
Speciality Stores: Specialty stores are retail businesses
that focus on specific product categories, such as office
supplies, men's or women's clothing, or carpet. MTR
Convenience stores: Stores located in areas convenient
to the customers.
Supermarket: A retail that sells food,convenience
goods,household merchandise arranged in open mass
display
Pricing based:
Off price retailer: Off-price retailers operation is owned
and operated by manufacturer and manufacturer?s surplus
or by a speciality/department store, discontinued or
irregular goods are sold.. They sell brand name
merchandise at every day low price(EDLP). Pantaloon
factory outlet
Discount stores: department stores with less features and
offers special discounts. High volume-low cost ? fast
turnover outlet selling a broad merchandise assortment
for less than conventional prices .One dollar store
Factory outlet: Manufacturer himself opens a retail shop
in certain areas and sells at low price to customers
Factory outlet: is a manufacturer owned store selling
manufacturer closeouts, discounted merchandise,
irregular and cancelled orders.
Category killers:
Speciality retailers who offer a large selection in the
chosen product category Nalli?s in Chennai category
killer in sarees
Price clubs(Cash and carry): business that operate on an
extremely simplistic level.One has to pay a membership
fee. Once the product is purchased , customer is
responsible for carrying their products away from the
place of purchase
.
Hypermarket is a format combining a supermarket and a
department store.
Mall
Non store retailing:
? In non store retailing, customers do not go to a store to buy.
?Direct selling
?Direct response marketing
?Catalogue retailing
?Television shopping
?Automated vending
? Direct Response Retailing: marketers advertise these
products/ services in magazines, newspapers, radio
and/or television offering an address or telephone
number so that consumers can write or call to place an
order.
? Automatic Vending: is the ultimate in non personal,
non store retailing. Products are sold directly to
customers/buyers from machines. These machines
dispense products which enable customers to buy after
closing hours.
? Electronic Retailing/E-Tailing: retailers communicate
with customers and offer products and services for sale,
over the internet. EBAY, Rediff Shopping, Amazon
Service Retailing
? Consignment shops:?a?shop?that?sells?second-
hand?items?on?behalf?of?the?original?owner,?who?
receives?a?percentage?of?the?selling?price.
The?sender?of?goods?is?known?as?the?" consignor"?
and?the?agent?entrusted?with?the?custody?and?care?
of?the?goods?is?known?as?the?" consignee".
? Concept store
?It?offers?shoppers?multiple?types?of?items?with?
one?centralized?theme.?Examples?of?themes?for?a?
concept?store?are?eco-friendly,?street?and?high-end?
luxury.
Concept store
All the products in a concept store add
to the theme of the establishment,
even though they might be different
categories altogether.
Many concept stores offer customers the
chance to pick up food, clothing,
electronics, perfumes, books and other
items that are connected to the concept
the shop promotes. These stores focus on
creating a personalized shopping
experience around the chosen theme
CONSUMER BEHAVIOUR
? Behaviour that consumers display in searching for, purchasing, using,
evaluating , disposing of products and services that they expect will
satisfy their needs.
? It helps us understand why, when, where and how often of a
purchase decision
? FACTORS AFFECTING CUSTOMER DECISION PROCESS
? CULTURAL FACTORS
? Consumer behavior is deeply influenced by cultural factors, such as
buyer?s culture, subculture and social class.
? Culture
? Essentially, culture is the share of each company and is the major
cause of the person who wants and behavior. The influence of culture
on the purchasing behavior varies from country to country, therefore
sellers have to be very careful in the analysis of the culture of
different groups, regions or even countries.
? Subculture
? Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these
groups, segmenting the market in several small portions. For
example, marketers can design products according to the needs of a
specific geographical group.
Social Class
? Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined
by income, but there are several other factors such as wealth,
education, occupation etc.
SOCIAL FACTORS
? Social factors also influence the purchasing behavior of consumers.
Social factors are: the reference groups, family, the role and status.
? Reference groups
? Reference groups have the potential for the formation of an attitude
or behavior of the individual. The impact of reference groups vary
across products and brands. For example, if the product is visible as
clothing, shoes, car etc., the influence of reference groups will be high.
Reference groups also include opinion leader (a person who
influences others by his special skill, knowledge or other
characteristics).
? Family
Buyer behavior is strongly influenced by a family member. So vendors
are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced
by the wife of then sellers will try to target women in their ad. Here we
should note that the purchase of roles change with changing lifestyles
of consumers.
? Roles and Status
? Each person has different roles and status in society in terms of groups,
clubs, family, etc. organization to which it belongs. For example, a woman
working in an organization as manager of finance. Now she is playing two
roles, one of the chief financial officer and the mother. Therefore,
purchasing decisions will be influenced by their role and status.
PERSONAL FACTORS
? Personal factors may also affect consumer behavior. Some of the
important factors that influence personal buying behavior are: lifestyle,
economic status, occupation, age, personality and self esteem.
? Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, unmarried couples etc that help marketers to
develop suitable products for each stage.
? Occupation
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy
business suits, while a low level worker in the same organization buy-
resistant clothing work.
? Economic situation
economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
? Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client?s interests,
opinions, etc and activities shapes their whole pattern of acting and
interacting in the world.
? Personality
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has different characteristics, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
.
4. PSYCHOLOGICAL FACTORS
There are four major psychological factors that affect the
purchasing behavior of consumers. These are: perception,
motivation, learning, beliefs and attitudes.
Motivation
The level of motivation also affects the purchasing behavior of
customers. Each person has different needs, such as
physiological needs, biological needs, social needs, etc. The
nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive
when it is most urge
HISTORICAL PERSPECTIVE
? CLASSICAL?SCHOOL?OF?THOUGHT:
? Classical?schools?of?marketing?are?identified?as??commodity?school,?the?functional?
School,?and?the?institutional?School.
? The?commodity?school?focused?on?the?objects?of?market?transactions,?and?
generated?the?specialty?-?shopping?-?convenience?goods?trichotany?which?is?still?
popular?in?marketing?practice.?
? The?functional?school?focused?on?the?activities?inherent?in?market?transactions?
and?generated?a?classification?of?functions?such?as?grading,?assortment?and?
physical?distribution.?
? Finally,??institutional?school?focused?oil?the?agents?of?markets?transactions?such?as?
wholesalers?and?retailers?which?resulted?in?channels?of?distribution?and?value?
added?services?provided?by?tire?middlemen.?(Sheth,?Gardner?and?Garrett?1985).
? ,?case?studies,?market?surveys,?and??use?of?census?data?became?more?prevalent?as?
methods?of?understanding?consumer?behavior.
MANAGERIAL SCHOOL OF THOUGHT
? it generated such concepts as the four Ps of marketing, marketing
mix, product differentiation .ind market segmentation.
? Tire managerial schools of marketing thought still relied on the social
sciences but borrowed the more recent concepts and methodologies.
it eagerly borrowed Concepts and methods of the emerging field of
managerial economics Which shifted focus away from demand theory
to the theory of the firm, and especially the concepts of monopolistic
competition and product differentiation. Similarly, it latched onto the
diffusion of innovations
BEHAVIOURAL SCHOOL OF THOUGHT
? behavioral sciences could contribute more to the understanding at
individuals than the social sciences.
? Various branches at psychology as more relevant and useful.
? economic psychology with its emphasis on customer expectations,
? clinical psychology with its emphasis on nonfunctional value in products
and services,
? organizational psychology with its emphasis on power and conflict among
organizations,
? social psychology with, its emphasis on cognitive consistency as the driver
of human behavior became more exciting and interesting areas of
marketing.
ADAPTIVE SCHOOL OF THOUGHT
? the marketing discipline is shifting its focus towards the market
behavior by focusing on the environmental opportunities and threats
generated by technology, regulation and global competition.
? Concepts taken from from business strategy, environmental scanning
and stakeholder analysis as well as the social sciences appropriate for
global markets
CUSTOMER DECISION MAKING PROCESS
?
pP
vPersonality
vLifestyle
vCulture
vSocial class
vFamily & household influences
FDI
? What?is?FDI?
Definition:
A?foreign direct investment?(FDI)?is?an?investment?in?the?form?of?
a?controlling?ownership?in?a?business?in?one?country?by?an?entity?based?
in?another?country.
[
Direct investment reflects the aim of obtaining a lasting interest by
a resident of one economy in an enterprise that is resident in
another economy.
Current FDI in retail
? There are 2 routes an FDI is possible:
? Automatic route: no prior approval is required
? Prior Government approval route: Proposals are considered by FIPB
for limited category of sectors
YEAR POLICY?ACTION
1991 FDI?UPTO?51%?ALLOWED?-AUTOMATIC?ROUTE
1997 FDI?UPTO?100%?ALLOWED?-WHOLESALE
2006 FDI?UPTO?51%?ALLOWED?-SINGLE?BRAND?RETAIL
? NO?FDI?-MULTI?BRANDING
? 100%-E-COMMERCE?ACTIVITIES
Need for FDI in Indian retail
? On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India.
? India in 1997 allowed (FDI) in cash and carry wholesale.
? automatic permission was granted in 2006.
? Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow
into India.
? 30% of food staples and perishable goods produced in India spoils because
poor infrastructure and small retail outlets prevent hygienic storage and
movement of the goods from the farmer to the consumer
? A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year
Need for FDI in Indian retail
? FDI encourages firms to bring about:
?Improvements in supply chain
?Investment in technology
?Manpower and skill development
?Greater sourcing from India
?Benefit to Government
Current trends in retailing
? New retail formats have emerged
? Internet age, increased computer awareness has made people buy online
? Specialty stores
? Sales promotions
? Retailers targeting not only tier 1 but also tier two and three
? Use of plastic money
? Improvement in infrastructure
? Partnerships and tie-ups among retailers
? Government support
? Sophisticated customers
Problems of retailing
? High cost for unorganized sector
? Specialisation
? Poor infrastructure
? Lack of trained workforce
? Multiple and complex taxation system
? Threat of substitutes
? Bargaining power of suppliers
? Bargaining power of buyers
? Intense of rivalry
? Lack of data integrity
? Inability in selecting the right location
? Excessive shrinkage
? Poor merchandise mix
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This post was last modified on 18 February 2020