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MK0003 Retail Marketing Set 1 and 2 Assignment
MK0003 Retail Marketing Set 1 and 2 Assignment
MK0003
(2 credits)
Set 1
Marks 30
Retail Marketing
Q.1 Explain various formats of retailing with example.
Ans:
Q.2 Describe various strategies that retailers use for their positioning in the market.
Ans:
Strategic Positioning:
Strategic positions that provide competitive advantage are based on the activities that a retailer
chooses to perform and on where it chooses to perform them. From these positions a firm can
deliver unique value to its customers. A position is based on a set of activities that combine to
create unique value for market. The three positions that retailers use as stratigy are:
• Variety-based positioning
• Need-based positioning
• Access-based positioning
Q.3 What are major considerations for a retailer while selecting location?
Ans:
The concept of private brands has been around for many decades. As early as the middle of the
19th century, there is evidence of the first major department stores contracting with suppliers to
private label some of the goods that were sold on store shelves. The trend has continued on to
this day, with some of the most well-known retailing entities sometimes attracting customers
based on the quality of their house or store brands as well as their selection of national brands.
Retailers who market private brands benefit from the activity in several ways. First, there is no
need to establish manufacturing facilities in order to produce the goods or services offered. The
retailer does not have to hire additional employees, deal with the acquisition of raw materials, or
arrange for storage space for finished goods until they are sold to a customer. Because someone
else is dealing with details of that type, the overhead for the retailer is significantly less than if
the business attempted to produce the goods on its own.
Another advantage to the use of private brands is that the retailer does not have to sink a great
deal of time and money into the research and development of new product lines. The
manufacturers who produce the goods and arrange for the private labeling engage in that type of
activity, then offer the retailer the opportunity to private brand any new products or services the
supplier decides to market. Often, the retailer is made privy to the results of field testing and the
identification of the niche market where the good or service is likely to generate interest, and can
determine if they wish to go after that particular market sector.
For the manufacturer, private brands also provide another outlet for distributing their products or
services. By producing the same goods as for their national brand distribution and labeling them
with private brands for various clients, the volume of production is often higher than it would be
otherwise. This translates into more net profit for the manufacturer in the long run, helping the
business to remain stable even in tough economic times.
Private branding is when a large distribution channel member (usually a retailer), buys from a
manufacturer in bulk and puts its own name on the product. This strategy is only practical when
the retailer does very high levels of volume. The advantages to the retailer are:
Q.2 Explain discount orientation, upscale orientation and at-the-market orientation with
example.
Ans:
A retailer’s pricing strategy has to reflect it’s over all goals and be related to sales and profits.
There must also be specific pricing goals to be achieved with the integration of total retail mix.
Following are the strategies and the most commonly applied practices for retail pricing:
PRICING STRATEGY IN RETAILING: Retailer Prices Goods & Services to: - Achieve
Profitability - Satisfy Customers - Be Consistent with Overall Image, Sales, Profits, ROI Pricing
Options: -
1. Discount oriented pricing
2. At-the-market oriented pricing
3. Upscale oriented pricing
Discount Orientation: - Low pricing as competitive advantage - Low status Image, Fewer
shopping frills, Price based customers, Low operating costs, High Inventory T/O.
At-the-market Orientation: Middle Class shoppers - Offers excellent service, Good atmosphere
Profit margins > = Moderate - Quality > = Average - Price Range Difficult to Expand as
Competition from Discount Stores or Prestige Stores Squeezes the Range
Upscale Orientation: - Prestige Major Competitive Edge - Smaller Target Market, Higher
Operating Costs, lower Inventory T/O Means Customer Loyalty,
Q.3 Describe ‘The evolution of retail in India’ in your words, highlighting the latest trends in
Indian retail.
Ans:
The evolution of retail in India:
The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-
and-pop stores. These stores used to cater to the local people. Eventually the government
supported the rural retail and many indigenous franchise stores came up with the help of Khadi
& Village Industries Commission. The economy began to open up in the 1980s resulting in the
change of retailing as India began to open up economy. The first few companies to come up with
retail chains were in textile sector, for example, Bombay Dyeing, S Kumar’s, Raymonds, etc.
Later Titan launched retail showrooms in the organized retail sector.
With the passage of time new entrants moved on from manufacturing to pure retailing. The latter
half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to pure Retailers.
Retail outlets such as Foodworld in FMCG, Planet M and Music world in Music, Crossword in
books entered the market before 1995. Shopping malls emerged in the urban areas giving a
world-class experience to the customers with facilities like car parking targeted to provide a
complete destination experience for all segments of society. Eventually hypermarkets and
supermarkets emerged with to provide customer with 3 Vs i.e. Value, Variety and Volume.
The evolution of the sector includes the continuous improvement in the supply chain
management, distribution channels, technology, back-end operations, etc. this would finally lead
to more of consolidation, mergers and acquisitions and huge investments. It also resulted in
expanding target consumer segment.
Phases in the evolution of retail sector
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