Assignment on SRM (08MBAMM312) __________________________________________________________________________________

1. What is retailing? What are the characteristics of retailing? Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers.[1] A retailer is a reseller (i.e., obtains product from one party in order to sell to another from which a consumer purchases products Retailers Manufacturer Distributors/Wholesalers Consumers

Retailing also called as the set of business activities that adds value to the products and services sold to consumers for their personal or family use .often people thin! of retailing
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Assignment on SRM (08MBAMM312) __________________________________________________________________________________

only ass the sale of products in stores but retailing also involves the sale of services overnight lodging in a hotel, a doctor e"am,a hair cut ,a #$# rental ,or a home delivery pizza Retailing involves selling products and services to consumers for their personal or family use. #epartment stores, li!e %urdines and &acy's, discount stores li!e (al) &art and *)&art, and specialty stores li!e +he ,ap, -ewelers and +oys 'R' .s, are all e"amples of retail stores. /ervice providers, li!e dentists, hotels and hair salons, and on)line stores, li!e Amazon.com, are also retailers. &any businesses, li!e 0ome #epot, are both wholesalers and retailers because they sell to consumers and building contractors. 1ther businesses, li!e +he 2imited, are both manufactures and retailers. Regardless of other functions these businesses perform, they are still retailers when they interact with the final user of the product or service.

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Assignment on SRM (08MBAMM312) __________________________________________________________________________________

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Characteristics of retailing Retailing can be distinguish in various ways from other businesses such as manufacturing .retailing differs from manufacturing in the following ways 1 +here is direct end user interaction in retailing. 3 it is the only point in the value chain to provide a platform for promotions 4 sales at the retail level are generally in smaller unit sizes 5 location is a critical factor in retail business 6 in most retail business services are as important as core products 7 there are a large number of retail units compared to other members of the value chain

2. Explain retail industr in !ndia? Explain the role of retail in !ndia?
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Assignment on SRM (08MBAMM312) __________________________________________________________________________________

8n 8ndia ,the retail sector is the second largest employer after agriculture.[3]+he retailing sector in 8ndia is highly fragmented and consist predominantly of small ,independent and owner 9managed shops there are some 13million retail outlets in 8ndia .beside ,the country is also dotted with low cost !ios!s and pushcarts in 3::1 retail trade in 8ndia was worth Rs 1133;.<billion. +here has been a boom in the retail trade in 8ndia owing a gradual increase in the disposable income of the middle)class households. more and more players in venturing into the retail business in 8ndia to introduce new attractive retail formats li!e malls, supermar!ets, discount stores department store and even changing the traditional loo! of the boo! stores chemist shops, and furnishing stores .food sales constitute a high proportion of the total retail sales .the share was 73.<=in 3::1,worth appro"imately Rs <:4>.3billion,while non)food sales were worth Rs51;>.6billion.however,the non food sales
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recently identified 8ndia as the ?second most attractive retail destination@ globally from among thirty emergent mar!ets. "he !ndian #cenario$ +rade or retailing is the single largest component of the services sector in terms of contribution to .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ retailing sector registered faster year on year growth than food sales. the retail industry is definitely one of the pillars of the 8ndian economy.#A and employing <= of the total wor!force (only agriculture employs more in the country. [4] 8ts massive share of 15= is double the figure of the ne"t largest broad economic activity in the sector. 8t has made 8ndia the cause of a good deal of e"citement and the cynosure of many foreign eyes. (ith a contribution of 15= to the national .#A. __________________________________________________________________________________ 5 P G Department of Management Studies S!i"amogga . the well)!nown international management consultancy. +he retail industry in 8ndia is of late often being hailed as one of the sunrise sectors in the economy. A+ *earney.

Assignment on SRM (08MBAMM312) __________________________________________________________________________________ +he retail industry is divided into organised and unorganised sectors. owner manned general stores.= of total trade. hand cart and pavement vendors. those who are registered for sales ta". refers to the traditional formats of low)cost retailing. . the local !irana shops. that is.norganized retailing is by far the prevalent form of trade in 8ndia 9 constituting >.1rganised retailing refers to trading activities underta!en by licensed retailers. paan/beedi shops. and also the privately owned large retail businesses. while organised trade __________________________________________________________________________________ 6 P G Department of Management Studies S!i"amogga . on the other hand. income ta". etc. for e"ample.+hese include the corporate)bac!ed hypermar!ets and retail chains. . convenience stores. etc.norganised retailing.

According to this report dated Eov.. 5. ::. if one used the .#A and food sales account for 74= of the total retail sales. Bstimates vary widely about the true size of the retail business in 8ndia.overnment@s figures the retail trade in 3::3):4 amounted to Rs.::: crores in 1>>> and poised to grow to Rs.4 8n a recent presentation.46.::: crores. 11. A+ *earney estimated it to be Rs. increasing to Rs.3 1n the other hand. 3::4. Cood retail trade is a very large segment of the total economic activity of our country and due to its vast employment potential. it deserves very special focused attention.3. ::: crores by 3::6 and !eep growing at a rate of 5:= per annum. 4. sales now account for 55= of the total .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ accounts only for the remaining 3=. 4. C8DD8 has estimated the total retail business to be Rs..::: crores or 55= of .::: crores and poised to double in 3::6. 1ne thing all consultants are agreed upon is that the total size of the corporate owned retail business was Rs.1:: billion from Fust Rs.#A. 16.::. Bfficiency __________________________________________________________________________________ 7 P G Department of Management Studies S!i"amogga .1 billion in 1>>7.

the retail business in 8ndia is e"pected to reach Rs1>. +hus even without C#8 driving it. ahead of finance and engineering.= to the . +oday organized retailing __________________________________________________________________________________ 8 P G Department of Management Studies S!i"amogga .:7>. the corporate owned sector is e"panding at a furious rate. contributing over . 8t is the largest private industry. 1ver 6: of fortune 6:: and about 36 of the Asian top 3:: companies are retailers .#A in the west.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ enhancements and increase in the food retail sales activity would have a cascading effect on employment and economic activity in the rural areas for the marginalized wor!ers.4billion this year.8ndia is li!ely to have over 33: shopping malls by 3::7.

Explain trends in retailing? 1./ was a driving force for the global economy and for the global retailing industry in particular. it is e"pected to 7=by 3::7. Guite the opposite is true in the rest of the world ) __________________________________________________________________________________ 9 P G Department of Management Studies S!i"amogga . 2. the e"traordinary growth of consumer spending in the .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ 8n 8ndia is 3= of the total retail business. %. [5] +his focus on social responsibility and product safety is li!ely to grow. #ocial responsibilit Relatively affluent consumers in affluent countries are increasingly concerned about the impact that companies have on society. and the impact that products have on the consumers who purchase them. &lobal consumer gro'th shifts a'a from the (# #uring the past decade. which includes the impact on the physical environment. on wor!ers in countries that supply products. especially as more consumers become aware of these issues through mass media.

8n Dhina. %. consumers see electronics. Iet today. +hose that differentiate on the basis of something other than price will be the winners of the future. therefore. is becoming one of the signal challenges of our time for global retailers. Commoditisation run amo) (e live in an age of great technological innovation. +raditionally.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ particularly in Asia. fashion and processed foods as commodities. +his has enabled ordinary people to enFoy standards of living unimaginable even to royalty a century ago. coo!ing oil. Avoiding commoditisation. economic growth has been fueled by e"ports. __________________________________________________________________________________ 10 P G Department of Management Studies S!i"amogga . 8mprovements in manufacturing efficiency enable the highest Huality products to be sold at amazingly low prices. for e"ample. basic products were considered commodities ) petrol. basic apparel. Dommoditisation ta!es place when consumers view products as essentially undifferentiated other than on the basis of price.

+he middle of this bell is the mass)mar!et. thereby driving down margins and failing to provide consumers with clearly differentiated offerings. (ithin the mass mar!et. %ut what is the long tailJ Donsider how consumer income in any country is distributed. 8t resembles bell)shaped curve in what statisticians call a normal distribution. representing a smaller share of __________________________________________________________________________________ 11 P G Department of Management Studies S!i"amogga .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ *. +he ends of the tail are 5smaller. retailers and their suppliers have become highly focused on price competition. retailing /ome of the most successful stories in retailing in recent years have come not so much from industry giants that target the mass mar!et but from smaller chains with a narrower focus +he mass mar!et has become saturated while the population of developed countries has become more fragmented in terms of incomes and shopping behavior. "he rise of +long tail. where the greatest share of income e"ists and where most retailers compete.

but one worth ta!ing. . +his is starting to change. targeted businesses Fust as efficiently as one large business. -. "he fight to plant the flag in !ndia 8ndia has become the ne"t big thing for the world's leading retailers. Iet these ends have often been ignored by retailers intention reaping the economies of scale associated with the mass mar!et in the middle. it is now possible to operate a portfolio of small. 0ence. retailers see!ing growth can invest in new businesses along the long tail rather than e"panding e"isting mass mar!et formats. 8ndia is. 8ndia is a gamble. this seems to represent the triumph of hope over e"perience.. Retail in/estment in ser/ices __________________________________________________________________________________ 12 P G Department of Management Studies S!i"amogga . a country with more than a billion people which is moving towards a true mar!et economy. As a result of improvements in information technology. after all. 1n the surface.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ income. Cor the world's leading retailers.

.#A tends to decline. 8n the past. 0. for e"ample.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ As countries grow and achieve economic affluence. in turn. -apan and the .5 trillion of foreign currency reserves. Retailers that can successfully sell services related to their core merchandise or simply based on the strength of their brand names. consumer spending on goods as a share of . this is due to the higher rate of inflation in)services. li!ewise. 8n part. +he relative decline in the prices of goods leaves consumers with comparatively more cash to spend on services. accumulated vast reserves. +hat. has accumulated K1. +his has certainly been the case in developed nations such as the B./. while spending on services grows disproportionately. Dhina. can increase their growth through e"panded share of the wallet. Emerging mar)et in/estment in de/eloped retailers 1ne of the notable aspects of the global economy lately has been the huge surpluses of !ey emerging countries. is due to the lower productivity growth in service industries. such funds __________________________________________________________________________________ 13 P G Department of Management Studies S!i"amogga . Russia and &iddle Bastern oil e"porters have.

store retailers are competing with non)store retailers who own a sizable share of online retailing. 5:=of online retail sales are conducted by store retailers themselves. +he reality. however. 4ocus on customer experience __________________________________________________________________________________ 14 P G Department of Management Studies S!i"amogga . 8n addition. +o win this battle. 3. +he opportunity to create a seamless multi)channel e"perience for consumers e"ists. Iet in the ./.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ were normally invested in low)yielding government securities howeverL countries are diverting some of these reserves into investment funds that purchase (estern companies or sizable interests in those Dompanies. the best retailers will most li!ely focus on enriching the brand e"perience for distinct customer segments across multiple channels. is that many store retailers are failing to do this and that most do not integrate their online businesses with their store businesses. Multi2channel integration +he rise of online retailing has ta!en mar!et share from store retailers in some mar!ets. 1.

were considered the leading mar!eters in the world. Retailers became the principal holders of relationships with consumers. suppliers had to focus more on relationships with their customers than their consumers. 1ne way to tac!le this problem is to focus on improving the e"perience of consumers in the store. manufacturers of fast moving consumer goods (C&D. and the ease and speed of transactions. lighting. +rade spending became more important than mass media advertising. service. 156 Retailers as 'orld2class mar)eters 8n the past. through their sale of private label goods. +his encompasses far more than customer service ) important though that is ) and includes all the elements influencing consumers such as store layout. they became leading suppliers in their __________________________________________________________________________________ 15 P G Department of Management Studies S!i"amogga .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ 1ne of the leading problems faced by many retailers is ci lac! of differentiation among competitors that leads consumers to view stores as commodities. signage. As retailers became bigger and more powerful. &oreover.

Aainth. (ee!ly %azaar and the famous !irana or %aniya !i #u!an. it #ates bac! to the period of hard)core traditional formats of retailing that prevailed in the form of 0aats. RA. __________________________________________________________________________________ 16 P G Department of Management Studies S!i"amogga . increasingly. +oday. +heir goal is to become mar!eting powerhouses. group forays into organized retailing with new and improved formats. to build strong brand identity in order to compete with other retailers and. 8ndia is now developing into a retail power where both organized and unorganized retail sector compete with each other. companies. /handis. to compete with branded suppliers through private label sales.[6]8t is only during recent past that 8ndian retail sector is witnessing a Arocess of Dhange and is poised to undergo dynamic +ransformation. Explain emergence of organi7ation of retailing? !ntroduction2 Retailing as a concept is not new in 8ndia. some of the world's top retailers are aggressively hiring top mar!eters away from C&D. 8n fact.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ own right. *.

+e"tiles sector li!e %ombay #yeing. these remained the only organized retailers. +his time around it was not the manufacturer loo!ing for an alternative sales channel. Although.rasim was the first to see the emergence of retail chains. Cor long. successfully created on organized retailing concept in 8ndia by establishing a series of Blegant /howrooms. "he E/olution of !ndian Retail !ndustr 2Cor 8ndian retailing things started to change slowly in the 1>. +hese were pure retailers with no serious plans of getting into manufacturing. *endriya %handar and D/# were already established by that time. Raymond's. +hese entrants were in various fields li!e)Cood __________________________________________________________________________________ 17 P G Department of Management Studies S!i"amogga . but the later half of the 1>>:s saw a fresh wave of entrants in the retailing business. / *umar's and .:s.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ Aresently the 8ndian retail business employs nearly 31 million Aeople. 2ater on. which is around <= of total employment. the co)operative stores li!e /uper %azar. +itan ma!er of premium watches.

/ubhi!sha and Eilgiris in food and C&D. +hese retailers have developed a rapport and goodwill among customers and popularly !nown asN #u!an (ala bhaiya N __________________________________________________________________________________ 18 P G Department of Management Studies S!i"amogga . A large number of these stores are family business involving more than one generation. "he "raditional Retail 4ormats2 8ndian retail sector is pre) dominantly controlled by traditional and un organized formats of retailing.LAlanet & and &usic (orld in musicL Drossword and Countainhead in %oo!s. +hese store formats are traditional and do not enFoy professionalism. +he traditional N!irana Nor N%aniya !i #u!anN still enFoy the leadership and commanding position in retail trade. +hese formats have emerged and developed with the growth of population in the country in rural and semi urban areas. the haatsMwea!ly bazaars e"ist since long time.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ (orld. 8n smaller towns and urban areas we may see the power of small family run independent 'mom and pop' store offering a wide range of merchandise mi".

increased consumer awareness etc. +he professional orientation and incorporation of various technology)enabled software has offered these retailers better customer relationship __________________________________________________________________________________ 19 P G Department of Management Studies S!i"amogga .A large number of retail model retail formats have come in force offering a wide spectrum of merchandise and services.Although the share of organized retailing is mere 4= of the total retail till 3::5. Retailing has emerged as one of the most important sector of 8ndian economy since 1>>:s. 8rgani7ed formats of retailing2 +he last decade have witnessed dynamism in 8ndian retail sectors. 8t is largely due to rising 8ncome. $arious urban areas have been the center of attraction wit emergence of different !inds of organized retail formats gaining momentum. increase purchasing power credit facilities. changing patter of consumer behavior.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ &ostly these stores are managed by family members and in some cases even involve the services of one)two hired wor!ers which depend upon the turnover.and it has e"pected to be >= till 3:1:.

%arista. __________________________________________________________________________________ 20 P G Department of Management Studies S!i"amogga . Rameshwar's !ndian Retailers . &+R. (impy. +. /agar ratna. supermar!et. store atmosphere and inventory management etc.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ management. Ruby 9#onald. Aizza)DafO Doffee #ay. 0aldiram. hypermar!et.Eirulas.e/erages #ominos. convenient stores and even up)mar!et specialty stores are no longer a dream.8C. $arious new and improved formats of Retailing li!e departmental stores. #iscount stores. merchandise o offering. (e have seen the mushrooming growth and proliferation of these formats of retailing in various metro cities of 8ndia Categor 'ise ma9or retailers$ Categor !nternational Retailers 4ood :&D hut Aizza)Dorner.

#+D %ulgari. /amsung. Dooper 2evis. Bsprit. +itan./hopper /top. /hoprite holdings =uxur 2$&0. /ubway. Ahilips. Cood (&#. Eo!ia.Aantaloons. /. (oodland. 2ife /tyle Durables /ony. %A2. Ei!e. /ubhi!ha /watch. /hoes.. /inger.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ +uesday.+anishH. Blectrolu".$ideocon. %as!in Robbins <pparel : sporting goods %enetton. 2. *umar. Dartier __________________________________________________________________________________ 21 P G Department of Management Studies S!i"amogga 1nida. 2eeRaymond's. Eilgirinanz. Action &ar!sP /pencer. . 2acoste .2iberty. Reebo!. &rocer &etro DashPDarry.

&adure .:::)sH)ft in Dhennai is an e"ample.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ Retailing 4ormats in !ndia /ome of the prevalent relating formats in 8ndia include) • Malls 2 &ost malls gives floor space out to individual shops on lease. . • __________________________________________________________________________________ 22 P G Department of Management Studies S!i"amogga . +his concept is now being used to introduce organized retailing to the second rung towns. the combined brand pull of all outlets is used to create a pull for the mall.randed #tores > B"clusive showrooms run by premium brands have been the catalyst in pushing up the 8ndian retail scenario. 8n malls li!e these. 8ndia's largest shopping arcade /pencer Alaza (7::. and these are enticed by the economies resulting from the sharing of cost.arments has started setting up e"clusive outlets in cities li!e +richy and +hanFavur.

• #pecialt #tores > +hese types of stores generally concern on a specific area of mar!et as chain such as *ids *emp and &umbai based boo! retailer Drossword has gain popularity in their segments. __________________________________________________________________________________ 23 P G Department of Management Studies S!i"amogga . or mi"ed)use facilities. hotel lobbies. for e"ample * RaheFa's /hoppers /top. downtown shopping districts. and temporary or special)event venues. strip shopping centers.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ • Departmental #tores > #epartmental stores are e"pected to ta!e over the apparel business from e"clusive brand showrooms. -. sports stadiums. Explain retail location and la out plan? #efinitionQ A space you lease for the selling of goods to consumers is called as retail location Retail space comes in a variety of shapes and sizes and may be located in free)standing buildings. enclosed malls. [5] Iou will also find retail space in airports and other transportation facilities.

1f secondary interest to many retail operations are office space and storage reHuirements. and an overall image that draws in customers. adeHuate par!ing for customers. retailers have one overall goalQ to sell merchandise. +hat's why they focus on sales floor space. since most inventory is on the sales floor.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ (hen it comes to business. !mportance of location decision  8nvolves large capital investment  Affects transportation costs  Affects human resource cost  Affects the amount of customer traffic  Affects the volume of business " pes of retail location  ?lanned shopping centers Regional shopping centers or malls Eeighborhood Mcommunity shopping center /pecialized mar!ets __________________________________________________________________________________ 24 P G Department of Management Studies S!i"amogga .

the layout of the store is the manner in which merchandise or products have been arranged in a retail store. A layout is li!e a plan for the store. An ideal layout stro!es the balance between the merchandise to be displayed and productivity. 8t helps the movement of the customer within the store. /imply put. so that they move through __________________________________________________________________________________ 25 P G Department of Management Studies S!i"amogga . 8t is meant to aid movement and flow of customers.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ Aeriodic mar!ets  4ree standing stores Eeighborhood stores 0ighways stores  (nplanned business districts /centers #owntown or central business district /econdary business district Eeighborhood business district /uburban business district =a out ?lan +he last element which is integral to the internal loo! of the store is the store layout.

destination areas and seasonal or special merchandise areas. +he retailer needs to understand it at this point. (hen the customer enters the store. /ales staff greeting the customers with a pleasant R&ay 8 assist youJ' may more often be met with a prompt REo' as a reply. he is adFusting to the new environment and very rarely does buying occur right there.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ the entire store. Areas within the store need to be demarcated as prime selling areas. &erchandise placed right near the entrance is usually lost on the customer entering the store. the flow of the traffic through the store can be directed. +he entrance are of the store is often referred to as the ?decompression zone@ or the ?transition zone@. At this point. he may have a predefined list of items to buy or may Fust have __________________________________________________________________________________ 26 P G Department of Management Studies S!i"amogga . he is ma!ing a transition to a new environment. the customer is still ta!ing in the environment of the shop. +his is the area near the entrance to the store. %y balancing the destination areas the impulse buying areas. impulse merchandise areas.

why should retailer stoc! merchandise in this part of the store what can he do with the transition zoneJ /ince retail space is premium. divas and artificial flowers in area before the main entrance to the shop. &any stores also start displaying selling seasonal products before the main section of the store. it needs to be utilized. 1nce the customer has passed this decompression zone.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ come there to browse around. or simply sell products li!e flowers. +he Amarsons store in %andra . turn right. +he cash counter is __________________________________________________________________________________ 27 P G Department of Management Studies S!i"amogga . 0e needs to be given to adFust to the new environment before trying to sell him products. or put up a power display. umbrellas. +he cash wrap or billing counters are usually placed to the left and high impulse merchandise placed near these counters. sells seasonal merchandise li!e raincoats. &umbai. +his allows customers to adFust to the environment. +he Huestion that then arises is. he would on most occasions. offer the customer a coupon. Retailers use this zone to sell deeply discounted merchandise. torans. a bas!et.

(hile one area of display is along the walls of the store. 8t allows for movement within the area and __________________________________________________________________________________ 28 P G Department of Management Studies S!i"amogga .Assignment on SRM (08MBAMM312) __________________________________________________________________________________ the place where the retailer has a captive audience in the customer and it is here that most of the impulse sales are made . the other merchandise is displayed parallel manner. S Creeform &rid la out +he grid layout is the one most commonly used in supermar!ets and discount stores. so that the customers will move through there and the merchandise before they reach the reHuired merchandise. " picall 6 store la outs ma be classified intoQ S . 8n some cases. the high demand merchandise may be placed at the rear end of the store.rid S Race trac! and. +he layout of the store would vary across retailers.

Assignment on SRM (08MBAMM312) __________________________________________________________________________________ uses space effectively. with a maFor aisle running through the store. Race "rac) la out +he race trac! layout is also called the loop layout. +his layout is popularly found in department __________________________________________________________________________________ 29 P G Department of Management Studies S!i"amogga . +he asile provides access to various shop)in)shops or departments within the store. display is in the form of a racetrac! or a loop. a preferred layout in many retail stores that adopt self)service. 8t is therefore. As the name suggests.

Assignment on SRM (08MBAMM312) __________________________________________________________________________________ stores. 4reeform la out __________________________________________________________________________________ 30 P G Department of Management Studies S!i"amogga . /econdary aisles within each section may lin! individual merchandise sections within the departments.

merchandise is arranged in an asymmetrical manner. a retailer may choose the same on the basis of the target customer that he chooses to serve the general image and loo! that he wishes to create for the store. Explain career in retailing? Retail is a people)centric industry. is type of a layout may not allow for ma"imum utilization of the retail space available. +he entire store may bear . wherein the sales floor is segregated in terms of various areas. 8t allows free movement and is often used in department stores to encourage people to browse and shop.. /imultaneously e"pose you to many s!ills and __________________________________________________________________________________ 31 P G Department of Management Studies S!i"amogga . with each area focusing on a particular theme. Aopular form ostentation of merchandise is termed as the boutiHue layout.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ 8n a free form. and is one industry which can.(hile there is no standardized principle as to what needs to be a layout for a particular type of store.

allocation of merchandise to the stores.u ing and Merchandising &erchandising and buying is often termed as a combination of art and statistics.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ disciplines. costing of merchandise procured. 8t is a !ey function for any retailer as this department is responsible for the procurement of merchandise to be sold in the stores by sourcing it from vendors or manufacturers. [5] 8t offers many choices in terms of a career. Mar)eting __________________________________________________________________________________ 32 P G Department of Management Studies S!i"amogga . it may reHuire e"tensive traveling to locate vendors and e"clusive merchandise for the retail stores. *ey tas!s in this career area include selection of vendors. A !ey aspect to be remembered is that very often. chief among them beingQ . developing distribution plans and calculating gross margins.

Responsibilities in operations may vary from being responsible for a department. sales promotion and publicMpress relations.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ 8n retail mar!eting. the entire store or for a __________________________________________________________________________________ 33 P G Department of Management Studies S!i"amogga . +he size of the retail organization would determine whether the various functions would be in one department or would be divided into various combinations. etc. functions may be centralized and may include different departments li!e advertising. Regional &anager and #istrict &anager. Aositions include 0ead of /tore 1perations. websites. #tore 8perations Retail professionals in the store operations career area oversee overall store operations and profits. &ar!eting would also loo! at ways of understanding the customer and his behavior by way of focus groups and analyzing of customer buying patterns to develop strategies and plans that guide mar!eting components li!e ads. and responsibilities in this area may include managing staff functions li!e loss prevention andMor human resources. floor. store signage.

$ery often.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ group of stores. a sales position may be the entry position in retail. cashier. #ales $ery often. Responsibilities would also include receiving merchandise returned by customers. (hile the primary duty of a sales staff is to serve customers on the selling floor. sales are considered as a part of store operations. a cashier would wor! behind the cash register des! and would be responsible __________________________________________________________________________________ 34 P G Department of Management Studies S!i"amogga . fle"ibility and importantly. /tore management involves all the disciplines necessary to run a successful business. counting it and then displaying it on the store shelf. store stoc! associate and stoc! receiver. the ability to wor! in teams. +hese front)end positions need the ability to deal with people. 1n the other hand. /uccessful store managers have the ability to lead and motivate employees as well as have an eye for detail. Areas in sales include positions li!e sales associate. actually selling goodsL front)end sales staff may also be involved in receiving merchandise into the store.

&any organizations would see! to train persons across functions in sales 4inance +he finance retail career area includes all accounting and treasury functions li!e accounting for income. investment and credit lines. (ith the rapid development of retail in the country. Auditing of stores for merchandise and money may also be a part of the responsibilities of this department. ban!ing. compiling and maintaining financial records. money management and cash flow control.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ for billing of the merchandise purchased by the customer and the collection of the reHuired amount of money. @uman Resources 0uman Resource in retail may range from recruiting and hiring employees to larger areas li!e@ identifying training __________________________________________________________________________________ 35 P G Department of Management Studies S!i"amogga . understanding and implementing proFect finance may also emerge as a !ey area of responsibility in the ne"t few years. paying e"penses.

but at the same time. from technology)driven training programs delivered over satellites or the 8nternet to state)of)the)art cash register and credit systems. Responsibilities may also include overseeing compensation and benefits. "echnolog and E2commerce Retail is one of the most mature users of information technology. and planning for and ensuring legal compliance in hiring and employment practices.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ needs at various levels within the organization and then designing and implementing the programmers. 8t is necessary to remember that retail is a people focused business. it calls for long wor!ing hours at both the front and bac! end. technology needs to be geared to tac!le comple" inventory systems. Crom RC8# implementation to e) commerce websites. +he human resource needs to understand these aspects of the retail business while creating and implementing performance appraisals and Aromotions. Dareers in this department may range from overall responsibility for the data processing __________________________________________________________________________________ 36 P G Department of Management Studies S!i"amogga .

Assignment on SRM (08MBAMM312) __________________________________________________________________________________ efforts within the chain. computer operations and information systems (8/ . including systems design. /ystems development may be another area. and even the building and placement of design elements. programming. which would responsible for programming one segment of the business such as merchandising. procurement of merchandise and the fulfillment orders and payments as specific areas. $isual merchandisers are responsible for the total merchandise or service presentation. finance or logistics. +he increase in competition has necessitated __________________________________________________________________________________ 37 P G Department of Management Studies S!i"amogga . Aisual Merchandising $isual merchandising is largely associated with creating the loo! of the store. the overall business image. A retailer who has a presence in the e)commerce segment may also loo! for 8ndividuals who may be responsible for strategy development.

#epending on the size of the organization. /upply chain management is the integrated management of the flow of materials and products. which in turn is believed to create increased sales. (hile products and services are the primary methods of differentiation. /upply chain management and logistics is an integral factor affecting cost. visual merchandising is fast becoming an area of differential advantage. manufacturers andMor __________________________________________________________________________________ 38 P G Department of Management Studies S!i"amogga . #uppl Chain Management and =ogistics /upply chain management and logistics are fast emerging as !ey focus areas in retail. Bffective management of the supply chain enhances profitability. and bac! again. a Fob in supply chain management may involve analyzing and negotiating contracts with suppliers. through operations. as it is believed that attractive displays attract and stimulate.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ retailers to differentiate themselves from the competition. to the final customer. services and information from raw material suppliers.

Assignment on SRM (08MBAMM312) __________________________________________________________________________________ distributors. resource allocation destination.a9a9 __________________________________________________________________________________ 39 P G Department of Management Studies S!i"amogga . capacity and production planning. and facility location and scheduling the transportation and logistics of productsMservices to their final References B1C TRetailing Management TMichael le/ : <9a ?andit6 sixth Edition B2C TRetail Management T Chethan .

Mohan &urus'am www.ad than &ood?F .managementparadise.cpasind.Assignment on SRM (08MBAMM312) __________________________________________________________________________________ B%C D4D! in !ndiaEs Retail #ector More .com %rowsed on 3.M1:M3::> __________________________________________________________________________________ 40 P G Department of Management Studies S!i"amogga .com %rowsed on 3.M1:M3::> B*C TRetailing Management T #'apna ?radhan6 "hird Edition [-] http$//'''.