MARKETING MANAGEMENT

PRESENTATION ON RETAIL MARKETING

 INDIAN RETAIL INDUSTRY
 The Indian retail industry has emerged as one of the most dynamic
and fast-paced industries due to the entry of several new players.
 It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the employment.
 India is the world’s fifth-largest global destination in the retail
space.
 Indian Retail Industry has immense potential as India has the
second largest population with affluent middle class, rapid
urbanisation and solid growth of internet.
 India’s retail market is expected to increase by 60 per cent to reach
US$ 1.1 trillion by 2020, on the back of factors like rising incomes
and lifestyle changes by middle class and increased digital
connectivity.
 Customer’s Buying Behaviour
Patterns

The needs, tastes, and preferences of the

consumer for whom the products are
purchased drives the Customer’s Buying
Behaviour Patterns.
 1.
INITIATO
R
2.
6. USER INFLUEN
CER

BUYING
ROLES

5. BUYER 3.
DECIDER

4.
GATEKEE
PER
 RETAIL
PRODUCT LIFE CYCLE

In Retail Industry the buying and merchandising

team classifies their products into categories
based on the sales and product life cycle.
Prior to launch, all the products will go through a
product development cycle and procurement
process
 LAUNCH
• Product is new to the market
• It needs huge advertisings and marketing push
through hoardings , commercials
• Main goal is to create positive vibe for the
product in the market and to attract
customers
• due to high marketing cost, the company can
incur loses which can only be recovered from
the other phases
• slow sales volumes to start
• little or no competition
• demand has to be created
• customers have to be prompted to try the
product
• makes little money at this stage
 GROWTH
• It sees the growth of product because of the
activities carried in launch stage
• Market response and demand of product is
seen
• It indicates the performance of the product
and how long it will sustain in the market
• Marketing of product continues but on lesser
scale
• Prices of the product is revised
• successful launch in the growth phase will see
the product peak in its market share and have
a better reach to its customer
• sales volume increases significantly
• profitability begins to rise
• competition begins to increase with a few new
players in establishing market
• increased competition leads to price
decreases
 Definition

• Distribution is the process of making a product or service

available for the consumer or business user that needs it.

• It also concerned with ensuring that products reach target

customers in the most direct and cost efficient manner.
 Marketing Mix
• Product : A product is anything that can be offered to a market
that might satisfy a want or need in retailing for e.g.. Refrigerator,
T.V., Mobile phone etc.

• Place: The place is where you can expect to find your customer
and knowing this place, you have to look for a distribution
channel in order to reach your customer

• Price: Price sometimes refers to the quantity of payment required

by a seller of goods or services, rather than the eventual payment
amount

• Promotion: Promotion is one of the market mix element and a

term used frequently in marketing
 The channel of Distribution
• The prime object of production is its consumption. The movement
of product from producer to consumer is an important function of
marketing ,It is the obligation of the producer to make goods
available at the right place, at right time ,right price and in right
quantity.

• The goods may be sent to the consumer directly or indirectly

through middleman.

The channel may be classified as:

• Selling through direct channel

• Selling through indirect channel
Direct Channel
 Indirect Channel

Customer
Producer Wholesalers Retailers two level
channel

Consumer
Producer Agent Retailer or Two level
channel
 Indirect Channel

Customer or
Producer Agent Wholesaler Retailer Three level
Channel

Customer or One level

Producer Retailer channel
 Pattern of Distribution
• Pattern of distribution decides the intensity of the distribution
and also decides the service level provided

Types of distribution intensities:

• Intensive
• Selective
• Exclusive
 Channel Formats
Channel format is basically decided by who Drives the market

• Producer Driven: E.g. Franchisees, brokers, Licensed

Outlet(Mac Donald’s)

• Seller Driven : E.g. Existing Wholesaler and Retailer, Discount

stores(D Mart)

• Service Driven : E.g. Couriers, warehouse space provider

 RETAIL MARKET CHAIN EXAMPLES

• Department/Grocery Stores:
Sell a wide range of merchandise that is arranged by
category into different sections of the physical retail space.
Department/Grocery Stores also known as Supermarket. Some
department store categories include shoes, clothing, beauty
products, jewellery, house-wares, etc. Examples of department
store retailers include Big Bazaar, Reliance Mart.

• Warehouse Retailers:
Large no-frills warehouse-type facilities stocked with a
large variety of products packaged in large quantities and sold at
lower-than-retail prices. Ex. Castco warehouse retails , Market in
Navi-Mumbai.
• Specialty Retailers:
Specialize in a specific category of products.
Victoria's Secret, and Nike are examples of specialty
retailers.

• Convenience Retailer:
Usually part of a retail location which sells gasoline
primarily, but also sells a limited range of grocery
merchandise and auto care products at a premium
"convenience" price from a brick-and-mortar store.
Casey’s is example of Convenience Retailer.
 Specialty Retailers:

Convenience Retailer:
• Mobile Retailer:
Uses a smart phone platform to process retail
transactions and then ships the products that were
purchased directly to the customer

• Internet E-tailer:
Sells from an Internet shopping website and ship the
purchases directly to customers at their homes or
workplaces and without all the expenses of a
traditional brick-and-mortar retailer, usually sell
merchandise for a lower-than-retail price
 Mobile Retailer

Internet E-tailer
 CONCLUSION
• Retail industry expected to grow by 60% in
2020
• Organised retail market :- 9% of total market
• Unorganized retail market :- 91% of total
market
• Government allows 100% FDI in Online retail
market
• Industry is positive, rising income, entry of
foreign player and increasing urbanisation
 E-commerce is expanding steadily in the country. Customers have
the ever increasing choice of products at the lowest rates. E-
commerce is probably creating the biggest revolution in the retail
industry, and this trend would continue in the years to come.
 The Government of India may change the Foreign Direct
Investment (FDI) rules in food processing, in a bid to permit e-
commerce companies and foreign retailers to sell Made in India
consumer products.
 Government of India has allowed 100 per cent Foreign Direct
Investment (FDI) in online retail of goods and services
 Both organised and unorganised retail companies have to work
together to ensure better prospects for the overall retail industry,
while generating new benefits for their customers.
 The long-term outlook for the industry is positive, supported by
rising incomes, favourable demographics, entry of foreign players,
and increasing urbanisation.