Retailing management

Module 1
World of retailing
 Any business that directs its marketing
efforts towards satisfying the final
consumer based upon the organisation of
selling goods and services as a means of
distribution.
 Retail transactions include the sale of
tangible as well as intangible products.
 Retailing involves various activities
shopping, such as purchasing through the
internet, dealing in financial services etc….
 Retailing can be referred to as all the
activities involved in the marketing and
distribution of goods and services
 Retailing is the set of business activities
which adds value to the product and
services sold to consumers for the
personal or family use
Economic significance of retailing
 Retailing is very good for small time
buyers. even in the rural in India retailing
plays a important role, because of the
concept of weekly gatherings in the
market where vendors put on display their
products (goods).
 In urban part of India there are
departmental stores and provision stores
and super markets which are different
forms of retailers.
 Retailing is a consumer interfacing activity
and acts as a last link in the supply chain.
 In service marketing we deal with 7P’s and
in product marketing we deal with 4P’s.
Type of retail format
 Convenience stores
 Chain of stores
 Franchise
 Speciality store
 Departmental store
 Super market
 Hyper market
 Shopping mall
 Shopping plaza
 Discount stores
 Factory/seconds outlet
The important elements in the retail
mix
 Store design and display
 Customer service
 Communication mix elements
 Pricing method or strategy
 Merchandise planning and assortments
 Location
Impact of retailing in India
 The level of economic growth through the
country.
 Improvements in the standard of living
 Increase/enlargement of the population
 A dramatic improvement in the
educational standards of living.
 Increase in the discretionary time of the
consumers.
Factors attracting global retailers in
India
 Market attractiveness
 Market saturation
 Pricing
 Moderate customs duty
Development and growth of retail
Industry
 Higher disposable income
 Changes in the social structure and
consumer behaviour
 Emerging rural market
 Retailers proximity to customers
 Evolution of family owned establishments
 Consumer pull
Retail market strategy
 Retailing concept is a management
orientation through which the retailers try
to focus on the needs of their target
market and satisfy those needs more
effectively.
 Target market:- It refers to the specific
market segments whose needs are to be
focused upon, use their resources and plan
the retail mix accordingly.
Specifics for gaining customer
advantage
 Focus on customer loyalty
 Positioning of the retail outlet
 Having customer loyalty programmes
 Good HRM
 Efficient HRM
 Develop unique merchandise (private label
brands). Eg:- westside, globus, shopper’s
stop
Gaining competitive advantage
 Focus on customer loyalty
 Positioning of retail outlet
 Have customer loyalty programmes
 Develop good HRM
 Efficient SCM
 Develop private label brands
 Vendor management
 Customer service
 Build multiple sources of advantage
Merchandise management
 Merchandise is being acquired for meeting
demand in future, so forward planning is
necessary in relation to changing
consumption tastes and demand.
Strategic retail planning process

 Define the business mission

 Conduct a situation audit
 Identify strategic opportunities
 Evaluate strategic opportunities
 Establish specific objectives and allocate
resources
 Develop a retail mix to implement strategy
 Evaluate performance and make adjustments
Consumerism and ethics in retailing
 Consumerism is a broad organised group
movement by all consumers to protect and
benefit consumers groups and the
environment
 CSR:- it is the decision taken by the firm
to conduct its own business in the interest
of the society as a whole as well as its own
interests
ethics
 Ethics refer to the moral principles on
which all the decisions are taken by the
organisation and the employees which are
based on some values and culture.
Factors affecting the location of retail
outlet
 Search for a good location site
 Assessment of the viability of the site
 Assessment of other micro factors
population
 Size
 Age profile
 Income
 Housing profile
 Unemployment
 Life styles
 Caste mix
accessibility
 Pedestrian floe
 Public transport
 Car access
 Parking
 Visibility
 Staff access
 Delivery access
competition
 Existing activity
 Saturation
 Turnover
 Trade areas
 Age of outlets
 Design
 Facilities
 Future potential
costs
 Site acquisition
 Site development
 Shop fitting
 Rent/business rates
 Maintenance
 Security
 Staffing
 Delivery costs