Professional Documents
Culture Documents
MANAGEMENT
Objective
Retail Industry has witnessed a phenomenal growth in our country, keeping an eye on
these growing needs Franklyn’s Retail Plus Course is designed for all who are eager to
know the retail industry, although many seasoned marketing and retail sales professionals
will find the course useful as a way of refreshing their practice through learning in new or
different ways. All are welcome to join - the only requirements are punctuality and a
commitment to working with determined effort during the course. The Retail English
Course is perfectly suited for young students & professionals looking to make a career in
Retail Industry. It is emphasized that Retail Management concentrates on theory and
interaction. Too often Retail Management staffs quit the field because they do not get
what they want. Our module ensures you learn everything about a career in Retail
Industry that there is to know. The approach on this course is to work hard to ensure that
any technique introduced is of use in your future career.
We help provide a good job in retail marketing or sales management after the course for
all graduating candidates with our business partners, top Indian & multinational
companies. The retail marketing & retail management industry is booming and there are
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tons of good jobs to be had in all over India & Asia. We can also submit your profile for
free to the topmost headhunting agencies to enable you to get a great job after the Retail
English.
The course incorporates discussions, case studies, assignments, interactive sessions,
workshop, role-plays, and group presentations.
Syllabus:-
• Retail Terms
• Customer Service, Salesmanship skills, Counter Sales
• Retail Strategy
• Retail Communication
• Public Relation
• Retailing in India
Class: 1
2
Shopping generally refers to the act of buying products. Sometimes this is
done to obtain necessities such as food and clothing; sometimes it is done
as a recreational activity. Recreational shopping often involves window
shopping (just looking, not buying) and browsing and does not always
result in a purchase.
Not only U.S but also the other developed countries like U.K, Canada,
France, and Germany are experiencing tremendous growth in their Retail
Sectors. This boom in the Global Retail Industry was in many ways
accelerated by the Liberalization of Retail Sector.
Observing this global upward trend of Retail Industry, now the developing
countries like India are also planning to tap the enormous potential of the
retail sector. Wal-Mart, the world's largest Retailer has been invited to
India. Other popular Brands like Pantaloons, Big Bazaar; Archie’s are
rapidly increasing their market share in the retail sector. According to a
survey, within 5 years, the Indian Retail Industry is expected to generate
10 to 15 million jobs by direct and indirect effects.
Emergence of a strong Retail Sector can contribute immensely to the
economic development of any country. With a dominant retail sector, the
farmers and other suppliers can sell their produce directly to the major
retail companies and can ensure stable profit. On the other hand, to
ensure steady supply of goods, the Retail Companies can inject cash into
the production system. This whole process can result into a more efficient
production and distribution system for the economy as a whole.
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Large Retail Stores typically sell many different types of items, such
as:
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• Toys
Retail Acronyms
Class: 2
AR Accounts Receivable
AS/RS Automatic Storage and Retrieval System
BPI Buying Power Index
CBD Central Business District
CLV Customer Lifetime Value
COD Collect on Delivery
CRM Customer Relationship Management
DOI Date of Invoice
CPFR Collaborative Planning, Forecasting and Replenishment
DPP Direct Product Profitability
DSD Direct Store Distribution
EBI Effective Buying Income
ECR Efficient Consumer Response
EDI Electronic Data Interchange
EDLP Everyday Low Pricing
EOQ Economic Order Quantity
GAAP Generally Accepted Accounting Principles
GAF General merchandise, Apparel and Furniture
IAS International Accounting Standards
NBD Neighborhood Business District
OLAP On-Line Analytical Processing – OLAP
OTB Open-to-Buy
PIN Personal Identification Number
PM Push Money
POG Planogram
RFM Recency, frequency and monetary value
RDA Retail Display Allowance
ROA Return on Assets
RMM Retail Merchandise Management System
SBD Secondary Business District
SKU Stock Keeping Unit
UPC Universal Product Code
UVM Universal Vendor Marking
5
B2B – Business to business e-commerce; where business partners in the
supply chain use
e-commerce technologies to procure goods and services from each other.
B2C – Business to consumer e-commerce; where business makes its goods
and services
available to the end consumer through e-commerce technologies.
BAM– Business activity monitoring; set of tools and applications used to
monitor and modify
business processes and business process parameters in an automated
manner in real time, in
response to inputs received from the business environment.
BI – Business intelligence; set of tools and applications used to analyse huge
quantities of
collected data in order to identify patterns useful for making business
decisions.
CPFR – Collaborative planning, forecasting and replenishment; technique
used in the retail
industry to synchronize forecasting, planning and procurement of supplies
though out the
supply chain by use of technology. The demand data travels from the stores
and retail head
office back to the supplier in an automated fashion and in near real time
mode reducing need
to maintain high levels of inventory and improving response time to
fluctuating demands.
CRM – Cutomer relationship management; software used to monitor
customer behavior and
accordingly customize level of service and response to the customer.
DC – Distribution centre; warehouses and centres for intermediate storage of
goods procured
from the supplier for reasons of convenience and proximity to the distribution
channel.
e-Commerce – use of internet technologies to do B2B, B2C and C2C
business.
EDI – Electronic document interchange; integration of business process and
workflows
between business partners through use and exchange of business document
in electronic format.
Enterprise portals – Website of an enterprise exposed on the intranet,
extranet or the internet,
containing host of features and exposing numerous enterprise applications in
an unified
interface.
EPC – Electronic product code; use of signal producing and receiving
electronic gadgets
and devices to codify products in order to track their exact physical location.
Often used in
warehouses and stores for tracking goods.
ERP – Enterprise resources planning; enterprise level application having
different functional
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modules for different organizational functions like human resources, finance,
administration,
marketing etc.
Legacy applications – existing applications in an enterprise typically using
older technologies
like mainframes, first generation client-server etc. and typically having a
stovepipe architecture
(lack of enterprise scale multiple application integration).
OASIS – Organization for the advancement of structured information
standards. It is a notfor-
profit, international consortium that drives the development, convergence,
and adoption
of e-business standards.
PDA– Personal data assistance; handheld / mobile devices having desktop-
like utility features.
POS– Point of sale; applications and devices like scanners, printers,
computers and associated
applications used at the sales counter.
Merchandise management – Planning and management of procurement
and mobilization
of goods from the supplier based on the forecasted demand from the stores,
DCs, or end
consumers.
Real time – synchronous response or occurrence of an activity in response to
an event.
RFID – Radio frequency identification; use of radio frequency signals in EPCs.
RTE – Real time enterprise; use of applications and architecture where an
enterprise can
respond in real time to changes in the environment signifying extreme
adaptability and
agility.
SCM – Supply chain management; enterprise applications used for streamline
the business
process with supply chain partners.
SOA – Service Oriented Architecture
SOAP – Simple object access protocol
Supply chain – the chain of the business partners in an industry where the
links travel
from upstream suppliers to downstream consumers. An element in the link
could be
a logical consumer of an upstream supplier and a logical supplier to a
downstream
consumer.
UDDI – Univeral description, discovery and integration
VAN – Value added network; special private networks operated by service
providers or by
the business partners which have value added features like high reliability,
security and performance.
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W3C – World wide web consortium. This is an industry consortium entrusted
with the
responsibility to standardize and popularize specifications for internet-related
technologies
like communication and message format protocols, web services etc.
WSDL – Web services description language
WSRP – Web services for remote portlets.
WS-I – Web services interoperability organization; industry consortiums set
up to specify,
standardize and popularize profiles for Web services technology in order to
ensure complete
interoperability of web services across multiple platforms and languages.
XML– eXtensible Markup Language;HTMLlike markup language for describing
structured
data having self-decriptive capabilities through the use of extensible,
customizable tags.
Class: 3
A large box in which products for sale are kept on the shop
Bin/Display Bin
floor
A shop that is in a building as opposed to an internet
Bricks and mortar
shopping site, a street market stall, party sales, van sales or
store
door-to-door sales
The ability to negotiate favorable terms due to the
Buying Power
proposition of high volume purchases
The area from where the majority of a shop's customers are
Catchments (area)
located
As in "chain stores". A chain is a group of stores operated
Chain
under one organization or brand
Checkout The point where customers declare and pay for their goods
Combination Store A store that combines two or more specialist product areas
An organization that is jointly owned and or managed by its
Co-operative
members and is run for the mutual benefit of members
Co-op Co-operative
Concessionaire A store within a store
Courier Shipper
Dedicated (vehicle)
A vehicle delivering to one location only
Delivery
Delivery Collating products in order to produce appropriate delivery
Consolidation batches
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Sales of goods between two distant parties where the
Distance Retailing
deliverer has no direct interest in the transaction
Distributor Shipper
Downstream
Forward movement of goods through the supply chain
Distribution
Dress Code Rules on what clothes can and can't be worn
Dry Grocery Generally food that is not fresh
9
Synthetic polymer often used to coat household goods such
Polyester
as refrigerators
A bag that contains a small plastic hangar as an integral part
Polyhook Bag
of the top of the bag
A colloquial phrase denoting aggressive price reductions on
Price War
the same (or similar) products by competing retailers
Primary Packaging The immediate packaging around the finished product
Procurement Obtaining Goods
Product Offer Product's attributes, including price
Retail Chain A group of shops operated by the same organization
Reverse Logistics Reverse movement of goods through the supply chain
A time-limited period when a product or group of products
Sales Promotion
are given extra publicity and intense marketing
Secondary The container in which several finished packs would be
Packaging distributed (and sometimes displayed in)
A store where customers can pick the goods directly from the
Self-Service
display and take them to the checkout for payment
Shadow Box A cabinet display built into a wall
Spot Delivery A single one-off delivery
Staple Goods Products that are regularly purchased and are a necessity
The route that products take from their production through to
Supply Chain
their consumption
Tertiary Packaging The carrier for the secondary packaging
Transporter Shipper
Upper Garments Clothes worn on the upper part of the body
Upstream
Reverse movement of goods through the supply chain
Distribution
Volume The amount of stock being sold
2. The best time to go shopping in the USA is the day after Thanksgiving, because all stores
mark down their prices.
(a) reduce
10
(b) boost
(c) raise
(d) hike
11
(d) release
10. Mr. Thompson only buys things that are in a sale.
(a) uneconomical
(b) priceless
(c) inexpensive
(d) overpriced
Class: 4
Retailers that sell high value goods, or goods that are perceived as
high value, may ask their staff to dress formally. Examples are high-
class clothes stores and jewelers. Although rare, some of these
retailers insist that customers should also dress smartly.
Dress codes will mainly apply to larger retailers. With the exception of
food and drug stores, it is very common for small retailers to have no
dress code at all.
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Many stores will ask their management staff to wear dress that is more
formal than the rest of the staff, even in some cases where staffs are
being encouraged to dress fashionably or casually. This contrast may
be preferred by stores that wish to make staffs appear welcoming while
giving the impression that the store is run professionally and can be
trusted.
Some retail stores will recruit staff who they perceive as being good
looking. This is especially true of fashion outlets. This practice is rarely
official company policy and is often a subconscious decision. Selection
filtering that uses facial or bodily attributes may be considered
unlawful in some jurisdictions where it could be considered as de facto
discrimination on grounds of race, gender or even age.
Often prices are fixed and displayed on signs or labels. Alternatively, there
can be price discrimination for a variety of reasons, where the retailer
charges higher prices to some customers and lower prices to others. For
example, a customer may have to pay more if the seller determines that
he or she is willing to. The retailer may conclude this due to the
customer's wealth, carelessness, lack of knowledge, or eagerness to buy.
Another example is the practice of discounting for youths or students.
Price discrimination can lead to a bargaining situation often called
haggling, in which the parties negotiate about the price.
Retailers who are overstocked, or need to raise cash to renew stocks may
resort to "Sales", where prices are "marked down", often by advertised
percentages - "50% off" for example.” Sales" are often held at fixed times
of the year, for example January sales, or end-of-season sales, or Blue
Cross Sale
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Deal-Making as a Marketing Tool
Making deals with customers, such as two for the price of one, for
example, is an age-old method of retailing. Whereas deal-making has
traditionally been a two-way affair between an individual customer and
the retailer - and often still is in small retailers - it has in recent times
been used as a marketing tool by the larger chains.
Class: 5
Retail Salespersons
Nature of the Work
Working Conditions
Training, Other Qualifications, and Advancement
Employment
Job Outlook
Earnings
Related Occupations
Sources of Additional Information
Significant Points
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explain the features of various models, the manufacturers’
specifications, the types of options and financing available, and the
warranty.
Working Conditions
15
The job can be rewarding for those who enjoy working with people.
Patience and courtesy are required, especially when the work is
repetitious and the customers are demanding.
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requires extensive knowledge of the product and an extraordinary
talent for persuasion.
Employment
Retail salespersons held about 4.3 million wage and salary jobs in
2004. They worked in stores ranging from small specialty shops
employing a few workers to giant department stores with hundreds of
salespersons. In addition, some were self-employed representatives of
direct-sales companies and mail-order houses. The largest employers
of retail salespersons are department stores, clothing and clothing
accessories stores, building material and garden equipment and
supplies dealers, other general merchandise stores, and motor vehicle
and parts dealers.
Because retail stores are found in every city and town, employment is
distributed geographically in much the same way as the population.
Class: 6
Job Outlook
17
As in the past, employment opportunities for retail salespersons are
expected to be good because of the need to replace the large number
of workers who transfer to other occupations or leave the labor force
each year. In addition, many new jobs will be created for retail
salespersons as businesses seek to expand operations and enhance
customer service. Employment is expected to grow about as fast as
average for all occupations through the year 2014, reflecting rising
retail sales stemming from a growing population. Opportunities for
part-time work should be abundant, and demand will be strong for
temporary workers during peak selling periods, such as the end-of-year
holiday season. The availability of part-time and temporary work
attracts many people seeking to supplement their income.
Earnings
The starting wage for many retail sales positions is the Federal
minimum wage, which was $5.15 an hour in 2004. In areas where
employers have difficulty attracting and retaining workers, wages tend
to be higher than the legislated minimum.
18
hourly earnings in the industries employing the largest numbers of
retail salespersons in May 2004 were as follows:
19
fool prospects with charm, flattery, and dramatic appeal, but these
behaviors only mask the underlying motivation behind every word of
the message. When I went to buy my new car, I heard every
salesperson at the dealership use those same tactics over and over
again. I was shocked and appalled that this type of sales pressure still
exists today in a world full of much more savvy consumers.
Class: 7
20
A Friendly Rapport
Greeting Assertion
Building
Te
am
wo
Being rk
A Positive
Pro-active
Attitude
An
Esteem
Self
m effective
of
Pr listening
es
sio
na
lis Never say
NO
1. Friendly Greeting:
A greeting is simply a basic courtesy. It shows that you are polite and
are interested in making the other person feel welcome. It is the first
point of contact with the customer, and should be articulated in a
warm voice and with a smile.
21
not have a say on who gets a discount and who does not. Thus you
have to choose the second option and say no.
As usual the golden rule is to bring out the positive in the situation.
Remind him of the service he is getting of the benefits of having a
customer of your store, and if all else fails assure him that you will pass
this feed back to the senior management level and try to make him
feel as you have patiently listened to his grievance. By doing all these
you are being assertive. You still make your point; you still manage to
say NO, but you don’t offend the customer or be discourteous in any
process.
An angry customer
Assertion √
x Aggression
Discount”
4. Effective Listening:
Have you had the experience of someone saying something to you
while you were lost in thought of something else? And as a result, you
had absolutely non idea about what had just been said and the speaker
had to repeat the whole sentence!
This is a simple example of what happens when you hear something
but do not listen. Hearing is just a physical sensation of sound waves
reaching your ears. Listening, on the other hand, is hearing with your
22
Attention. Two ears ….one mouth… we were
obviously meant
To listen twice as
much as we speak!
A customer (C) walked inside a departmental store with his wife (W).
They are welcomed by a nicely dressed customer associate girl (A). As
they proceed towards the garments department the following
conversation follows.
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A: welcome to our garments store sir. You can get a variety of range
of any sort of dresses as
Per your choice. Could you please tell me sir what are you
looking for?
C: (being comfortable to see someone as a guide at hand), I see!
Could you please show me
Some winter jackets?
A: of course sir, here you get a wide stock of jackets you can browse
through them to suit your
Choice. The price is displayed in the sticker with each item; you
could also get a discount of
Some of the products. (With simple yet pragmatic details the A
helps C to know everything.)
W: can you specify the latest collections out here because we are
looking for something trendy
Yet affordable.
A: sure ma’m, there are the new collections and all are fresh lot of
stocks you may like the
variety of colours and new materials. (Guiding through the right
place A satisfies the
customers)
C: yes that’s better!
A & W becomes busy in selecting the jacket while A patiently
watches with a caring attitude
and smile)
W: (Picking up one) okay this one looks good, I keep it for you
C: have you checked the price I think it’s quite high.
A: (if you don’t mind sir I will interrupt you a bit only to say that you
get a flat 20% discount on
this item and look at the brand sir, I think it will carry your
personality too. Above all you
should respect madam’s choice. (Maintaining a courteous nature
A actually teases the ego
of C. W: that’s true. (See how politely A is persuading C yet
not imploring at all)
C: Okay, now what about the exchange if requires?
A: its very simple sir, any day you just drop in to our store and you
shall get the garments
replaced with new, but I believe you never have to take the
hazard of this because we are
Confident about the quality of our products. (Notice the assertive
attitude).
W: that’s fine; now tell us where the counter is? And do you accept
card?
A: Ma’m you can give it to me, while I do the billing you can roam
around the other
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Departments. (Making the customers hassle free)
A: here is your packet sir, you please check it once and put your
signature in this bill.
Thank you sir and please visit again. (Closing the deal)
2. It is a good idea to add a bit on the price for a tough customer so you
can take it off again under pressure. True Don't Know False
25
5. When a customer offers to pay your price less 10%, you should offer to
negotiate by splitting the difference. True Don't Know False
6. Value is what a buyer gets when they buy a product that is at a reduced
price. True Don't Know False
9. Your customer's view of your price often depends on your view of your
price. True Don't Know False
10. The hardest products to sell are those whose price is higher than
similar products sold by your competitors. True Don't Know False
Class: 8
Décor
The way a retail outlet looks will usually inform customers and
potential customers about the type of store and type of products it
sells. Nowadays as the competition grows the supermarkets are
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running after the front look and exterior. The fashionable and attractive
design pulls customers easily and increases the flow of business.
Design
A store that sells high class goods will usually have high class décor. By
contrast, a store that sells basic goods may have basic décor. Retailers
will typically want their stores to be different from their competitors.
This distinction allows the store to offer a shopping "experience". A
store offering distinct décor can score points over their competitors.
This dimension is important as it reduces the burden on product versus
product and price versus price competition. This ultimately feeds in to
the value of the products on offer and helps to maintain margins. A
balance needs to be struck between this need to be different with the
need to make customers feel welcome. Surroundings can be distinct,
innovative and even edgy but must not alienate the customer.
Frequency of Redecoration
Stores that sell fashion goods will often change their décor regularly to
reflect the changing nature of their products. For some well established
stores, their décor may be synonymous with their business and their
product offer. Such stores may seldom change their décor or only
change it in minor ways. Some stores offer a mixture of both – they
may be well established and have traditional décor, but will also adapt
it in order to highlight the changing fashions of their product offer.
Lighting
27
1. Help associates spend more time with the customer through
intelligent conversation. Instead of using traditional techniques, deploy
intelligent conversational tools to engage the customers listening to
you and about your product. Intelligent systems boost productivity,
employee and customer satisfaction.
28
successful, your business will grow. Intelligent Communications can
help to make it happen. Using voice technologies, customers who need
help can quickly and easily locate assistance. If merchandise isn’t
available it becomes possible to provide immediate access to the call
center for order and delivery. Retailers can also leverage their
knowledge of the customer to create effective push (newsletters, e-
mails) and pull communications (frequent buyer programs) that can
increase the stickiness of the customer-retailer relationship.
Merchandising
29
- Appropriate point of sale support media (e.g. labels, signs)
- Legal requirements satisfied
Class: 9
Voice Conversation
30
service , navigate through a series of prompts, relay the information
about the order and discuss the issue for resolution.
Now let’s see what happens when intelligent communications are
embedded into this process: A customer who purchased online reviews
his confirmation and notices an issue….the customer presses a ‘click to
talk’ button. Behind the scenes, the button connects to the
communication system, which identifies the need for assistance. It
looks up the customers contact information and initializes a phone call
between an available agent in the call center and the customer.
Simultaneously, it sends the order information to the agent desktop.
Now the customer and agent talk, immediately and in an informed
way, improving the efficiency of the customer interaction and opening
the door to enable the agent to cross-sell or up-sell the customer.
Class: 10
31
consumers, to publish corporate publications like newsletter, bulletins,
magazines for employees and consumers etc.
32
With the upcoming trend of retailing PR gets focus and is indeed an
effective tool to bring in qualitative changes in the industry.
Class: 11
India Retail has got airborne and the concept of organized retailing and
better distribution and logistics has set in. The Indian urban consumer
is also now getting hooked to this new method of home purchases that
also combine into family outings and entertainment. The mall
infrastructure across cities and supply chain mechanisms across the
country are getting into place. India Retail seems set to grow
exponentially in the next few years and the global giants are waiting at
the wings for entry. The government regulation on ownership in retail is
the only obstacle for international retailers. Global brands have
however come in and set themselves up well.
Like in most other countries, India's retail network has grown through
what are called "mom-and-pop" stores, small grocery stores that are
run by individuals or families and cater to their immediate
neighbourhood or locality. Like in most other countries India's retail
industry is slowly getting organized and corporatized and giant
networks of stores are spreading themselves across the Indian
landscape starting with the larger and more populated cities and
towns.
33
The Indian retail story of transformation began a few years ago and is
rapidly spreading across the more densely populated cities and towns
but still a small fraction of the total retail potential that exists. Indian
regulations do not allow for foreign owned and controlled retail chains
and this has held back the world's largest retailers including Wal-
Mart, Tesco, Sears, Target, Krogers and others. Indian organized
retail is presently being tested and built upon by a clutch of new
entrepreneurs and companies and these include Pantaloon Retail,
FoodWorld, Spencers, Shoppers Stop, Lifestyle, Subiksha and
several other smaller players.
Indian retail will slowly expand from the small dots that it represents
across the Indian map and become large spots and areas over the next
few years.
34
change is however unlikely to be possible to stem in the long run. India
will slowly open up and moderate the change but the new retailing
experience that has already been sampled with great success is
expected to expand slowly but surely till it covers the entire geography
of the country.
Class : 12
Table I
Table II
Estimated households by annual
Structure of the Indian consumer market (1995-96)
income
Annual income Number of households (in
Annual income (in No. of million)
Rupees) at 1994-95 households (in Rupees) at Classification
prices (in million) 1994-95 Urban Rural Total
prices
35
Consumption habits of households are therefore better determinants of
consumer market size than income distribution. Of course, other factors are
also to be considered and they are detailed below.
• While determining market size for a consumer product, the structure of the
consuming class as seen in Table II above, can be both revealing as well as
misleading depending on the kind of product. For example, any specific
consuming class would be fit to be a market for consumer products like tea or
soap, but a product such as vacuum cleaners would find market largely only
in the "consumers" and "rich" segments of the market as defined in Table II
above. Furthermore, even this may not be correct, because a taste for a
vacuum cleaner is not necessarily a function of purchasing power but of
culture and/or taste as well.
• It is also advisable to further refine the plausible market size by taking into
account details based on social, cultural and demographic factors.
• The prime market for consumer products in India is aware of the cost-benefit,
or value for money, aspect. Their convept of value incorporates socio-cultural
benefits in addition to product utility. For example, many households in the
"consumers" class and the "rich" class (as defined Table II) may have two
television sets, but both the sets may not be top-of-the-line. Thus, while they
may be demand for an additional TV set in many households in the two
mentioned classes, it must not be mistaken as demand for the higher priced
TV models. The prime consumer market in India therefore is not a market for
absolute premium products, but for something between the "high end popular
brands" to the "premium brands."
36
between Rs. 45,000 and Rs. 215,000 (to calculate the latest income statistics,
use an annual inflator of 5 per cent). In addition to this class, the "climbers"
and "aspirant" classes (defined in the Table II) totaling 23.9 million
households in urban India, also have the socio-cultural traits of the
"consumers" class and, with time, will join the consumers class. Medium-to-
long-term marketing strategy must therefore aim at the aspirants and the
climbers as well. This is based on the safe assumption that, except for the
destitute class as defined in Table II, the other classes are on the way to the
next higher class. For companies with long-term marketing plans in India, the
"consumers" (urban + rural), "climbers" (urban only) and "aspirants" (urban
only) classes can be clubbed together to give a market size of around 57
million households which can be said to be the "prime segment" of the Indian
consumer market. This becomes even more true as consumer financing and
the credit card culture picks up. Fine-tuning between the classes is of course
important, as explained in the next paragraph.
• Suppose you are marketing washing machines. Go for two broad types: fully
automatic and semi-automatic. Target the fully automatic machines at the
"consumers" class and the semi-automatic at the "aspirant" class; the
"climbers" class will then overlap the market for both the types of washing
machines.
• All of the above may be confusing, but the marketing strategist has to live
with it because that's how the Indian consumer market is in reality. There is
hardly a characteristic that applies across the market. Hence, the term
"Indian consumer market" is a misnomer: it would be more accurate to
describe it as a collection of different consumer markets.
Class 13
The Indian consumer market is set to scale new heights. With an estimated ten-fold increase
in the middle-class population and three-fold rise in household income, aggregate consumer
spending is likely to more than quadruple from around US$ 428.69 billion in 2005 to US$
1.76 trillion in 2025.
Simultaneously, India is likely to leap-frog from being the twelfth largest consumer market in
the world to become the fifth largest consumer market in the world, says a study by
McKinsey Global Institute. Significantly, over 23 million Indians-more than the population of
Australia-will number among the country's wealthiest citizens.
FMCG
India's fast moving consumer goods (FMCG) sector is the fourth largest sector in the
economy. The total FMCG market is in excess of US$ 17.36 billion and is set to treble from
US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.The Indian FMCG industry grew by 22
per cent in 2006. Food (43 per cent) and personal care (22 per cent) constitute the largest
contributors to the total sales.
The fact that the per capita income has nearly doubled in a short span of four years to just
under US$ 800 in 2006-07 (from around US$ 450 in 2002-03), has boosted the growth of
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FMCG companies. The prospect for further growth in this segment is robust as in many
categories of commodities, the market penetration levels of the organised sector is still low.
In fact, the surge in consumer spending along with the changes in consumer tastes is likely
to ensure high growth rates across a range of FMCG categories. For example, market
research firm AC Nielsen has identified 24 categories in the personal grooming space that
are growing at an average growth rate of 13 per cent. Products like perfumes, body washes
and hair colours among others have all been experiencing high double-digit growth.
Consumer Durables
During the first six months of the current fiscal year, the industry recorded a growth rate of 13
per cent, which is higher than the 11.5 per cent growth rate for the whole of 2006-07 and 8.5
per cent growth rate for April-September 2006.
The microwave oven segment grew at a robust rate of 75 per cent as against 27 per cent in
the corresponding period last year.
The fully automatic washing machines market grew at the rate of 40 per cent as against 33
per cent recorded in the same period last year.
While refrigerators as a whole increased by 12 per cent as against 10.3 per cent in the same
period last year, frost-free refrigerators sales rose by 35 per cent.
Similarly, while air conditioners as a whole grew by 40 per cent as against 25 per cent in the
same period last year, split air conditioners grew by 80 per cent as against 58 per cent in the
corresponding period last year.
Significantly, rural markets, which account for about 70 per cent of population, have been
growing at a higher rate of 25 per cent compared to 7-10 per cent growth rate of urban
consumer retail market.
Consumer Electronics
The consumer electronics sector is estimated to grow at the rate of around 11 per cent,
achieving a production level of US$ 5.04 billion during 2006-07 compared to 2005-06. The
fastest growing segments during the year were colour TVs, DVD players and home theatre
systems. The growth momentum has continued into the new fiscal.
Colour TV (CTV) sales grew by 15 per cent during April-September 2007 as against 14.4 per
cent during the corresponding period last year.
During April-June this year, overall personal computer (PC) sales rose by over 47 per cent
compared to the same period last year. Within this, desktops rose by 38 per cent and
notebook sales grew by 104 per cent.
India recorded the world's largest sale of mobile phones during July-September this year
accounting for 8.5 per cent world-wide sales, recording 15 per cent growth compared to the
same period last year.
iSuppli, an electronics market research firm, predicts that the Indian audio/video consumer
electronics industry will grow to US$ 6.59 billion by 2011, rising at a compounded annual
growth rate (CAGR) of around 10 per cent.
Automobiles
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The Indian auto industry has grown at a CAGR of 14 per cent over the last five years with
total domestic sales of vehicles reaching around 10.1 million vehicles in 2006-07. The growth
continues in the new fiscal with cumulative growth of Passenger Vehicles sales recording
13.45 per cent during April-October 2007. Presently, India is the second largest two-wheeler
market in the world, the fourth largest commercial vehicle market, the 11th largest passenger
car market in the world, and is expected to be the seventh largest automobile market by
2016.
e-commerce
Thanks to the broadband revolution, more Indians are spending ever more on the web.
According to a comprehensive consumer e-commerce survey conducted jointly by the
Internet and Mobile Association of India [IAMAI] and IMRB, the Indian consumer internet
market is estimated to grow to US$ 2.32 billion by the end of 2007-08 from US$ 1.78 billion
in 2006-07, recording a growth rate of 30 per cent.
Segment-wise online travel accounted for 77.68 per cent of the total e-commerce market in
2006-07 and is expected to grow by 30 per cent this year.
In this segment, India is well placed with the growing number of credit and debit card
holders. In fact, India became the largest market for Visa debit and pre-paid cards in the
Asia- Pacific in 2006, accounting for 34 per cent of the total customer base in the region.
Consumer Confidence
The Indian consumer remains the most upbeat globally. According to the AC Nielson
Consumer Confidence and Opinion Survey, India has topped both the 47-nation global
survey and the 14-country Asia Pacific study for the fifth time in a row. Also, the perception of
Indians regarding their personal finances (90 per cent optimistic) and job prospects (94 per
cent optimistic) is robust which opens attractive avenues for industries planning to tap the
Indian consumer market.
Class 14
A Newspaper Editorial about Retailing.
How much more can it grow, how many players can it hold?
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Retailing has reached a certain degree of specialisation in that chains of wellness shops,
healthcare outlets and centres for lighting, furniture,
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ONE-STOP-SHOP: A view of f More retail store.
The Mahindra group may be the latest to express an intent to get into the ballooning retail
sector, trying to get a slice of the rapidly expanding market, especially the lifestyle segment.
The group’s desire to enter this sector comes in the wake of an already crowded field, where
both multinationals and corporate giants are trying to cater to a rapidly rising middle-class
and affluent sections.
Global brands
When the Central Government began to liberalise the retail sector, multinational corporations
and global brands (especially in textiles and garments) swiftly moved in to capture a new
market. The global brands, which were available only to the globetrotters or business
travellers, or routed through the parallel market, were now available at several shopping
malls and showrooms in many of the major cities and towns.
Realising the potential in the retail segment, which was confined to the supermarket chains
in the past, a host of Indian companies decided to enter the segment. After the advent of
Marks and Spencer, followed by a large number of brand names, Indian giants such as
Reliance, the Tatas, and the Aditya Birla group decided to try their hand in retailing. There
was a mild storm when the Bharti group announced a tie-up with the famous Walmart chain
to enter wholesale retailing in the country.
The dust may not have settled in this controversy, but Bharti chief Sunil Mittal remains
committed to launching his retail chain by March 2008, and to get Walmart into the country
by the third quarter of the year.
Reliance’s plans
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While many of them have already launched operations across the country, they are also
coming up with ambitious plans for the future.
Reliance Retail has specialised in virtually every segment of retail business — from books
and music to fresh vegetables and groceries. It plans to open about 2,000 stores by 2011.
The Tata-Trent vehicle came up with the Star Bazaar, and this has been followed by several
other bazaars and one-stop-shops. From exquisite watches and jewellery, to home décor,
and jeans, a whole range of articles is now available in these shopping centres.
Retailing has reached a certain degree of specialisation in that chains of wellness shops,
healthcare outlets and centres for lighting, furniture, and even crystals have come up at
various places. And names such as Gautier, Fortis, and Swarovski are associated with them.
In addition to the import and retailing of branded goods, the Centre has liberalised the
foreign direct investment (FDI) rules in the retail sector. This may be particularly relevant to
the electronics, stationery and sports goods.
Protests
These plans and expansion of the branded markets have, of course, raised an uproar in
many States, especially among political parties, besides local manufacturers, artisans, retail
traders and non-Government organisations. They have all raised banners of protests against
what they describe as “large scale invasion of foreign brands and multinationals” into the
retail sector, which not only provides millions of local jobs, but also sustains lakhs of small
traders. Their fears relate mainly to two major concerns: One elimination of the existing small
trader network and two introduction of contract farming or production that could also result in
drastic reduction in the prices paid to the primary producer such as the farmer.
Mr. Sunil Mittal has taken the stand that the expanding retail sector can take both the existing
network and the new high-end chains. His argument is that the chains of retails outlets,
format shops, supermarkets, and hypermarkets can certainly generate more employment in
the local areas. The retail segment now has a trade of about $300 billion and this could climb
to $500 billion in three years.
The organised retail business, or the high-end market, could account for just about $100
billion, which meant that the bulk of the market would remain with the private retailers still in
business.
But the traders argue that they will have to compete both for the produce as well as the
market. Customers could prefer the well-displayed, stocked, and packaged products sold in
those chains to their own premises.
At least initially, they say the chains may offer the producer a better price and the customer a
more competitive price just to capture the market. So, some of them are launching special
drives for customer loyalty and going in for telephonic orders, door delivery, and one-month
credit too, as the competition hots up.
Class 15
Retail Quotations
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The god whom science recognizes must be a God of universal laws exclusively, a God who
does a wholesale, not a retail business. He cannot accommodate his processes to the
convenience of individuals.
William James
Count not him among your friends who will retail your privacies to the world.
Publilius Syrus
Most of my friends from college became dental hygienists or went into retail, a lot went into
sales. They all started getting married and having kids and buying homes and I was still
living like a college student.
Patricia Heaton
Well, there's no question that the law passed in 1996 was flawed. It deregulated the
wholesale market, meaning the price that the utilities had to pay energy companies for
power, but not the retail market.
Gray Davis
Retailing, it's always true that there is some items that I wish we had a lot more of like the
iPod and there is some items I wish we had a lot less of.
Lee Scott
No one in my family had a retail or marketing background. They were professionals. They
didn't understand just what I was doing by going into retailing. After I started, though, it got
into my blood. I knew this was what I wanted.
Andrea Jung
My brethren, when God first began to love you, He gave you all that He ever meant to give
you in the lump, and eternity of time is that in which He is retailing of it out.
Thomas Goodwin
Retail Translations
2. A duck walks into a general store and asks the manager,"Gotany fresh fruit?" "No." "Got
any fresh vegetables?" "No. We have only canned and dry goods." The next day, the duck
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returns." Got any fresh fruit?" "No." "Got any fresh vegetables?" "No. I told you yesterday, we
have only canned and dry goods. If you come back tomorrow and ask me the same
question, I'll nail your flippers to the floor." On the 3rd day, the duck walks in and asks,"Got
any nails?" "No." "Got any fresh fruit?"
3. Reaching the end of a job interview, the Human Resources person asked a young
applicant fresh out of Business School, "And what starting salary are you looking for?"
The interviewer said, "Well, what would you say to a package of 5-weeks vacation, 14 paid
holidays, full medical and dental, company matching retirement fund to 50% of salary, and a
company car leased every two years - say, a red Corvette?"
The applicant sat up straight and said, "Wow! Are you kidding?"
Shine at interviews
This is where the recruitment process finally moves off line - but not necessarily face to face.
A growing number of retailers conduct first stage telephone interviews. It cuts back on
recruitment time and is a great way of assessing how quickly you can build a rapport with
customers or colleagues. It also makes sense for the growing number of retailers who have
moved into home shopping and do much of their business over the phone.
Whether it's a phone interview or face to face, the same principles apply if you want to
succeed:
Do your research
Find out as much as you can about the business, its products, customers, and future plans.
This is especially important if you are applying for a managerial vacancy but it is also worth
the effort if you are being interviewed for a sales assistant or entry-level job. Good sources of
information are corporate websites or retail trade magazines. If there is a store near you,
have a good look round at what it sells and how.
If you are new to retail, look at some of the trade association sites to find out more about
what makes retailers tick. Try www.skillsmartretail.com or www.brc.org.uk
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Shake hands firmly and don't sit down before you are asked.
If it's a panel interview, make an effort to address your comments to everyone.
Unless you are supremely confident don't risk any retail jokes - there is every chance they've
heard them all before.
If you have not heard within the time frame you expected, then ring or e-mail the recruiter. If
it turns out that you haven't got the job, ask for some feedback on your performance. You put
a lot of effort into an interview and good recruiters are happy to oblige. They know they may
have other vacancies in the future that you might be able to fill. However, be prepared to
take criticism on the chin and learn from it.
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Q. You've worked for three different retailers in the past four years. How do we know
you will stay with us?
Don't be defensive if you have changed jobs frequently - it's fairly common in retail. Explain
that great opportunities came your way to work with different brands but now you are looking
for solid career opportunities.
Class: 16
8. Suppose you went for a survey to Pantaloons just to check out the
way how CCA s manage the
Customers and after a through survey for three days you are going
to pen down a report based
On your observation?
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9. Go through the following topics and arrange them according to their
priorities as it comes to a
retail salesperson.
10. Make a conversation between you (A salesperson) and a customer who has come to
Your store of cosmetics for a wedding shopping.
11. If you get a complaint from your management for not working as per the instructions what
may be the probable fall outs you bring upon yourself?
What are the steps you take to eradicate these problems?
12. What should be the proper etiquettes (non-technical) to be maintained while working in a
retail outlet?
13. Write down the words or phrases told by your faculty and give the meaning?
The
END
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