R.

PRIYA MP11610

Retailing consists of
y Business activities involved in selling goods & services

to consumers for their personal, family, or household use. y In contrast, wholesaling is an intermediate stage in the distribution process

Impact on economy
y Retailing is a major part of world commerce y Retail sales & employment are key economic

contributors y Retail trends often mirror trends in a nation s overall economy

CHARACTERISTICS OF RETAILING
y Direct end user interaction in retailing y It is the only point in the value chain to provide a

platform for promotions y Sales at the retail level is generally in smaller units y Location is a critical factor in retail business y Retail business services are as important as core products

Retail strategy
y Defining the business of the firm y Setting short-term and long term objectives y Identifying the target market y Deciding the broad direction the company must take

in future y Implementing an integrated plan y Evaluating and revising the plan

Retail in India
y At present the Retail industry in India is

accelerating. Though India is still not at an equal pace with other Asian counterparts, Indian is geared to become a major player in the Retail Market. are saturated and the developing ones still not prepared, India secures a great position in the international market.

y The fact that most of the developed nations

Retail pricing strategies

y Premium Pricing. Use a high price where there is a y y y y

uniqueness about the product or service. Penetration Pricing. The price charged for products and services is set artificially low in order to gain market share. Economy Pricing. This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Price Skimming. Charge a high price because you have a substantial competitive advantage. Geographical Pricing. is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

Retail pricing strategies

y Promotional Pricing. Pricing to promote a product is a very

common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free). y Value Pricing. This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds y price discrimination. where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.

Retail marketing Mix

y Price Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to follow depends on the customer profile that is the target audience for its range of products. It also depends on whether the product offering is unique or has other substitutes available. y Place For a very long time the location of the retail store was considered to be the most important element of the retail marketing mix. However, with the advances in technology and the advent of television shopping and the Internet many retailers are now going in for a click and mortar approach.

Retail marketing Mix

y Promotion The advertising budget the sales promotions

publicity and public relations play a very important role in competitive world of retailing. y Presentation The manner in which the merchandise is presented at the store level is very important. This aspect not only deals with the store layout and ambience created, but also with visual merchandising Visual y Customer service The support services that a retailer has have become very important today. The credit policies, product returns policies etc need to clear not only to the sales staff but also to the end customer Relationship marketing , data warehousing and customer relations management are the new buzzwords in the industry today, and all these are aimed at enhancing customer service.

Retail marketing Mix

y People :Retailers operate in a unique environment. The retail

industry is characterized by a large number of inexperienced workers, who need to put in ling hours of work. Most of the time, these employees are in direct contact wit the customer and may face irate or unreasonable customers. The people who work at the front end of a retail organization are very important, as they are the face the organization for the customers. Their attitude behavior manners and product knowledge play a very important role in building long term relations wt the customers.

Porter s five force model

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Analysis
5 Forces
Rivalry among the competitor

Analysis
Reliance Retail, Aditya Birla Group , Vishal Retails, Bharti and Walmart, etc

Threat of entrants FDI policy not favorable for international players. Domestic conglomerates looking to start retail chains. International players looking to foray India. Bargaining power of supplier The bargaining power of suppliers varies depending upon the target segment. The unorganised sector has a dominant position. There are few players who have a slight edge over others on account of being established players and enjoying brand distinction. Consumers are price sensitive.. Availability of more choice. Unorganized retail Threat of substitutes

Bargaining power of buyers

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Reliance fresh Product Strategy

PRODUCT RANGE:
Vegetables and fruits. y House hold Items. y Food and Beverages. y Groceries. y Dairy Products. y Refrigerated products. y Non food items. y Ready to eat items.

PRODUCT RANGE:
y Product Labeling. y Product Packaging. y Arrangement. y New products. y Product Quality. y Launched new products of its

own. y Home Delivery.

Reliance fresh Product Strategy

PRICING STRATEGIES
y Discount pricing strategy. y Wide price range of each y y y y y

DISTRIBUTION STRATEGIES
 Inefficient food chain supply y Intermediatory profit margin y Wastages in transit y Sourcing out requirement
y

items. Credit card acceptance. Accept coupons. Competitive prices Price marked in paisa comparable cost.

Eg. Banjara hill outlet (A.P)

y Up to mark inventory y Target urban citiess

FUTURE PLANS
 Bring new format of food and caf.

-- Reliance

food

 Reliance ready to launch pharmacy retail store  Invest 20k cr expected sales of 2 lkh cr  reliance center will house everything that town needs

FUTURE PLANS
 Plans to add more store across different geographic by 2011.  Reliance is aiming to touch almost every Indian consumer.  Reliance plans to label sale to

kirana store.
Reliance wellness Reliance digital Dairy pure Reliance trends Reliance select

Beauty & wellness Consumer durable Dairy product Apparel Staples & food item