RETAIL MANAGEMENT

I. The Meaning Retail General

Retail is a product marketing activities, both goods and services, which are
conducted in retail or unit directly to final consumers for personal or household
use and not for resale.
Retailers are also called the retailer / retail, where the number of products
sold is a unit.
In practice retail businessman buy products (goods and services) in large
quantities from manufacturers for resale to final customers in smaller units.

II. Retail Business Functions

 Buying and storing goods, which is to buy goods from manufacturers in

bulk and then save it.
 Transferring the property of the goods to the end consumer. In this case
the retailer's target market is the ultimate consumer who will put on a good
or service.
 Provide information regarding the nature and manner of use of a product.
Retailer deal directly with end consumers (users), the information about a
product must be described by the retailer to the consumer.
 Allows consumers to buy goods for retail companies operating in locations
that are easily affordable and convenient.
 Allows consumers to choose the desired product as there are various
products on the retailer.
 Transform the product into a form more attractive.
 Provide after-sales service of certain products and the handling of
consumer complaints.
 In certain circumstances, retailers are able to provide loans / leases to
consumers so that payments can be made easier
III. Types of Retail

1. based Ownership

 Independent Retail Firm, Namely retailers who operate independently

and without affiliation (merger). For example stalls, grocery stores,
markets Instruction, shop, and others.
 franchising/ Franchise, The marketing system where a company
(franchisor) gives rights to other entrepreneurs (franchisees) to conduct
business in a way that the system has been determined.
 corporat Chain, The business group that were involved in the
management and is owned by several shareholders. Examples
Department Store, Superstore, Spacialty Store, Supermarket.

2. Based Products for Sale

A. Product Retailing
 Department Store(Department Stores), Namely retailers who have
employees at least 25 people and sells clothing and household goods as
much as 20% or more of total sales.
 Specialty Store, Namely retailers that focus on selling certain types of
products. For example, computer stores, toy stores, shoe stores sports.
 Catalog Showroom, Namely retailers who sell local brands at low
prices which the small shopping area adjacent to the display and retail.
 Food and Drug Retailers, Namely retailers who sell food / beverages
and medicines in large quantities at low prices.

B. Service Retailing
 Rented Goods Service, Namely retailers who rent certain products to
consumers which product ownership remain with the retailer. A rental
apartment, car, carpet cleaner, and more.
 Owned Goods Service, Namely retailers who sell repair service / repair
and maintenance of certain goods. For example, repair services
(watches, cars, motorcycles, computers, and other), park maintenance
services, car washing, dry cleaning, and more.
  Non-Goods Service, Namely retailers who sell personal services that
are intangible (not in the form of physical products). For example, the
driver, tour guide, baby sitter, and more.

3. Non-Store Retailing
 Telephone & Media Retailer, Namely retailers who use contact by
telephone (telemarketing) and advertising media such as newspapers,
radio, television, in informing and persuading consumers to buy their
products.
 mail Order, Namely retailers who offer products through postal mail.
 vending Machines, Which is a tool that is used to sell a particular
product. For example, vending machines for drinks are widely
available in supermarkets, hotels, and offices.
 electronic Shopping, Ie retailer sales made using the TV, computer,
and Internet networks.
 Direct Selling, The method retailer sales made directly to specific
people through a transaction that starts and ends by salespeople.

4. Based Pricing Strategy

Each retailer offers products with varying prices, ranging from cheap
to expensive. For each brand of the same stuff, every retailer may offer
different prices.
Some retailers offer a product with high prices and with special
services of interest. Specialty and Department Stores generally behaves this
way in marketing their products.
However, some retailers prefer to sell the same product at a cheaper
price. Generally, Discount Stores applying marketing methods such as this,
which sells household items at discount prices.

5. Based on Location
 strip development(Strip mall), Namely commercial land developed so
that everyone has direct access to the road and parking area.
  Downtown central businessdistricts, The business and commercial
center in a town. In big cities, the area is usually synonymous with
"financial district" (or "financial district") in the city.
 Shopping center, A place that serves as the retail trade or retail
location combined in one building or complex.

IV. Retail Pharmacy In Indonesia

In the pharmaceutical industry, retailers can be categorized into the pharmacy

(conventional), drug stores (conventional), and modern pharmacy or drug store.
As the Dutch colonial era legacy systems, pharmacy retail activity began around
the 1930s, and the concept of pharmacies and drug stores and then dealt with
separately in around the 1940s. The concept of modern pharmacies and drug
stores later attended circa early 1990s. This new concept incrementally affect the
dynamics of the pharmaceutical industry from the traditional ways of sales (based
on the concept that there is a prescription and no money, then there are goods)
towards competitive strategies and marketing modern (based on the concept of a
comprehensive strategy management).

Pharmacies known as the place where a service against a large number of

pharmaceutical products are sold, either ready-made as well as the concoction.
Pharmacies are strictly regulated and supervised under the Act the health sector,
such as that pharmacies should be run and supervised by a pharmacist as set forth
in Regulation no. 25/1980 and Law no. 23/1992.

Drug Store is a place where OTC or OTC sale. OTC is a pharmaceutical product
forms are freely and widely advertised through various forms of mass media, both
print and electronic. Drugstores also undergo the same strict regulations with
pharmacies. Modern drug store or pharmacy is a combination of conventional
pharmacies and drug stores conventional with modern touches or West. This
concept offers the comfort of a room and offers a variety of byproducts or
concomitant of the pharmaceutical industry such as beauty products or personal
care (beauty care products). Usually this type is an extensive network of franchise
systems in the field of pharmacy and only operates in major cities such as Jakarta
and Surabaya

V. Competition In Central Industrial Retail Pharmacy

Competition in this industry is mainly driven by pricing strategy (pricing strategy)

and scale (economies of scale). However, is the international franchise network of
modern drug store which recently entered the market Indonesian pharmaceutical
retail industry to bring new concepts in the retail business of pharmaceutical
products. The modern marketing concepts in addition to offering a wider variety
of products, as well as services such as spatial neighborhood convenience stores
(outlets) to maintain customer loyalty. At least there are four foundation to
improve the competitive advantage retailers of pharmaceutical products, namely:

1. pricing strategy
2. Quality of service
3. Product Range Strategy.
4. site Strategy

This competition can be grouped into two categories, namely between

conventional actors such as pharmacies and drug stores, as well as the competition
between pharmacies and drug stores large with modern drugstore. Competition
among the conventional players were essentially based on the pricing strategies
(pricing strategy), while the large and modern players compete on the basis of
more complex, as mentioned previously.

The crisis has forced pharmaceutical retailers enter into a very tough competitive
climate. Indonesia weaker purchasing power due to the depreciation of the rupiah,
skyrocketing inflation rate, and rising unemployment have led the market into the
doldrums. Switching cost (the cost to switch to a provider other products) for the
consumer can be said to be zero, therefore it is easy for consumers to switch their
buying habits of pharmaceutical products branded (branded) into pharmaceutical
products 'second class' or even resorting to traditional medicine or herbal
medicine. Alternative medicines for self-medication such as Chinese medicine
and herbal medicine are becoming increasingly popular in Indonesia.
VI. Determinants of Success in the Retail Pharmacy Business Can Identified
as following:

1. Management Competitiveness

The competitiveness of the management (management competitiveness) is the

ability of management to proactively take advantage of opportunities and
strategically control the effectiveness and efficiency of operations. It is in the
retail pharmacy industry can be measured by several indicators such as reduction
of waste and shrinkage, labor productivity, productivity and sales space, and
observing new trends and what will happen in the future.

The management company is also responsible for understanding the trends that
can be seen in the industry. Among these trends is sensitivity to maximizing the
advantages of information technology to strengthen the effectiveness and
efficiency of marketing and service.

Operating strategy is part of the competitiveness of the management (management

competitiveness) to strengthen efforts in controlling management operations such
as reducing waste and shrinkage. Including the efficiency to boost productivity in
the field of labor, space and sales per transaction. This is an effort that never stops
conducted by the business through their internal training programs. Drugstore, as
the type of business that are generally owned by the family, usually has a higher
productivity than the pharmacy. This is possible because of its ability to control
expenditures in the areas of employee welfare and comfort of the workspace.

2. Quality of Products and Services

The quality of products and services is one of the driving factors that could make
customers feel comfortable to use (spare) time on a retailer outlets. For the target
market, the class A and B, one of the most important aspects that must be
guaranteed is the quality of service, ie the ability of staff to explain the advantages
of the product (having product knowledge) and provide the best service for
customers. With this increase together with the guarantee of the quality of
products, retailers have a greater opportunity to maintain customer loyalty.
3. Market Share

The market share plays an important role as one of the indicators to preserve the
interests of employers. The market share can also be used to describe whether the
business is being run is attractive or not. For businesses that have been
established, they need to maintain their customers especially when the trend
towards a shift toward products and services second grade. The entire modern
pharmacy business person is looking at this to maintain the profitability of its
business

4. Strategy Points

Site Strategy is meant here include strategic location, good layout, and the
atmosphere is better outlets (comfortable). Some retailers clearly shows a good
choice in terms of location for the outlets they like to focus on the main streets of
the neighborhood upscale residential environment, and plazas and malls (where
the target group market class B + to A + spend time shopping and buying needs
their main -kebutuhan). Meanwhile, some who have advantages in the field of
networking with government so easy to set up stores in the various major
locations around or inside the hospital. Tata's booth space was good, the display
of product neat floor to attract the attention of prospective buyers also be an
important element. Good flowing spatial greatly help visitors so that they can find
the product they want with ease. Outlets friendly atmosphere makes the buyers
feel comfortable and secure when spending time to shop (choose the product to be
purchased). It is certainly better than the typical conditions of a conventional
pharmacy (only sederatan chairs and a television in their waiting room)

5. Pricing Strategy

Pricing strategy widely applied to the face of shifting attitudes toward the
purchase of goods and services 'second class' which is usually cheaper. Not
infrequently pharmacies or drug stores certain conventional approaches cost
leadership. In contrast to the modern pharmacy, drug store usually has the
advantage in this strategy because the margins are applied about 20% to 30%
lower than the pharmacy. In general, pharmacies set their margin of
approximately 25% to 35% of the selling price. Of course, higher pricing led to
weak competitiveness in a situation of 'tight money' like this.

6. Product Range Strategy

This product diversity strategy used to ensure product availability and prevent too
much inventory and not sold. This strategy is based on the supply of many
products that sell quickly (fast-moving) and avoid products that are not sold
(slow-moving). This is very important because in the retail pharmacy industry in
Indonesia is only about 10% of products are consigned.

7. Promotion Strategy

Promotion strategy determine whether a potential customer or target market's

attention to products and services retailer, profits, product cycles, and also made
sales in the short term. Clear that all businesses, in a certain degree, to maximize
their efforts in the field of promotion. It is necessary to support their image and
reach a top-of-mind-awareness target market, and suppliers. To attract customers
to their booth, there are implementing sales promotions, promotions in stores (in
store promotion), and advertising and promotion as a strategy. On the other hand,
some are enjoying the benefits of the integration strategy in manufacturing and
distribution group. ,