CHAPTER NO 1

RETAILING: ROLE, RELEVANCE, AND TRENDS

RETAILING:
 Derived from French word “retailer” ….means “to cut a piece off” or “to break a bulk”.
 Middleman
 Links producer and ultimate consumer
 Retailer is a
 Person
 Agent
 Company
 Organization
 Retailer performs activities as
 Anticipating customers wants
 Product Assortment
 Acquire market information
 Retailer sells through
 Mail
 Internet
 Door-to-door visits
 Any channel that could approach consumer

CHARACTERISTICS OF RETAILING:
 Direct interaction with customers
 Lower Average Amount of Sales Transaction
 Point-of purchase Display and promotions
 Larger number of Retail Business Units
 Provide extra services

ROLE OF SERVICES IN RETAILING:
 Parking
 Extended hours of operation
 Play area for children
 Wash rooms
 Trial rooms etc.

FUNCTIONS OF RETAILING:
 Sorting
 Breaking Bulk
 Holding Stock
 Additional Services
 Channel of Communication
 Transport and Advertising Functions

ACTIVITIES PERFORMED BY RETAILERS:

 Arranging Assortment
 Breaking Bulk
 Holding Stock
 Extending Services
CATEGORIZING RETAILERS:
a. Number of outlets
b. Margin vs turnover
c. Location
d. Size

TRENDS IN RETAIL FORMATS:

 Mom-and-pop Stores

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  E-Commerce
 Department Stores
 Discount Stores
 Category Killers
 Specialty Stores
 E-tailers

RELATIONSHIP BETWEEN THE RETAILERS AND THEIR SUPPLIERS

 Intensive Distribution
 Selective Distribution
 Exclusive Distribution

Retail Strategy:
 Defining the business
 Setting objectives
 Identify the target market
 Deciding the broad future direction
 Implementing an integrated plan
 Evaluation

Retail Concept:
a. Customer Oriented
b. Goal Oriented
c. Value Driven Approach
d. Coordinated Effort

Criteria for the Right Customer Approach:

 Creating the right environment
 Listening to customers
 Providing rewards to the best customers
 Realizing the lifetime value of customers

THE CHANGING FACE OF RETAILING:

 Role of Internet
 Does the Size of a Retail Organization Play a Big Part in its Easy Adaptability to the
Internet?
 Is the Product offered also a Prime Determinant of a Cyber Retailing?
 What could limit the Success of Cyber Retailing?
 Branding Through Retailers
 How do Retailers choose which Brands to Display?
 Why do New Products fail in the Market?
 How can Manufacturers Maximize Brand Exposure in a given Retail Outlet?
 Number and size of shelves
 Prominent positions for merchandise
 Promotion
 Lifestyle Clustering
 Vertical Retail Concepts are on the Rise
 Consumption-related Mega-trends

DRIVERS OF SUCCESS IN THE RETAIL SECTOR

 Customers are the Driving Force in Change
 Re-evaluating the Marketing Plan
 Advanced Education for Retailers is Critical for Growth
 Strong Visual Recognition
 The Workplace Challenge
 Planning for Success