UNIT 1 CHAPTER 1

RETAILING IN INDIA ROLE, RELEVENCE AND TRENDS

WHAT IS RETAILING
• It is defined as a concl si!e set of acti!ities sed to sell a "#od ct o# a se#!ice to cons $e#s fo# t%ei# "e#sonal o# fa$il& se' • It is #es"onsi(le fo# $atc%in) indi!id al de$ands of t%e cons $e# *it% s ""lies of all t%e $an fact #e#s' • Wo#d RETAIL *as de#i!ed f#o$ t%e +#enc% *o#d #etaillie# $eanin) to c t a "iece off' • A Retaile# is a "e#son, a)ent, a)enc&, co$"an& o# o#)ani,ation • *%ic% is inst# $ental in #eac%in) t%e )oods to t%e lti$ate cons $e#' • RETAIL also in!ol!es sellin) of se#!ices and an& c%annel co ld (e sed li-e inte#net, doo# to doo# etc'

DRIVERS O+ CHANGE IN RETAILING
• C%an)in) de$o)#a"%ics and Ind st#& st# ct #e' • E."andin) co$" te# tec%nolo)&' • E$"%asis on lo*e# costs and "#ices' • E$"%asis on con!enience and se#!ice' • +oc s on "#od cti!it&' • Added E."e#i$entation' • Contin in) )#o*t% of Non sto#e #etailin)'

a%ead e!en of finance and en)inee#in) It cont#i( tes o!e# 12 to t%e GDP in t%e West' • O!e# 34 of t%e +o#t ne 344 co$"anies and a(o t 53 of t%e Asian To" 544 co$"anies a#e #etaile#s' • In so$e de!elo"ed co nt#ies #etail ( siness %o ses %a!e s%a#es as la#)e as 642 of t%e $a#-et' • In cont#ast India %as !e#& less o#)ani.ed #etail ( siness' • T%e si)nificance of t%e #etail ( siness %as inc#eased *it% t%e fast )#o*t% in t%e se#!ice secto#' • 0 c% of t%e #a"id )#o*t% in o#)ani.ed #etail ( siness in t%e de!elo"in) co nt#ies is d e to t%e ent#& of )lo(al #etaile#s' .RETAIL INDUSTR/ AND ECONO0/ • Retail ( siness is t%e la#)est "#i!ate ind st#&.

RETAIL INDUSTR/ IN INDIA In India t%e #etail secto# is t%e second la#)est e$"lo&e# afte# a)#ic lt #e' In India t%e #etail secto# is %i)%l& f#a)$ented and consists "#edo$inantl& of s$all. inde"endent and o*ne# $ana)ed s%o"s' T%e#e %as (een a (oon in t%e #etail t#ade in India o*in) to a )#ad al inc#ease in t%e dis"osa(le inco$e' 0o#e and 0o#e "la&e#s a#e !ent #in) into t%e #etail ( siness to int#od ce ne* and att#acti!e #etail fo#$ats li-e $alls. s "e# $a#-ets. de"a#t$ent sto#es etc' .

CHARACTERISTICS O+ RETAILING • T%e#e is di#ect end se# inte#action • It is t%e onl& "oint to "#o!ide a "latfo#$ fo# "#o$otions' • Sales at t%e #etail le!el a#e )ene#all& in s$alle# nit si.es' • Location is a c#itical facto# in #etail ( siness' • In #etail se#!ices a#e as i$"o#tant as t%e co#e "#od ct' .

S%o""e#s Sto" ta#)ets t%e elite #(an class and Pantaloons is ta#)eted at t%e $iddle class' • Breaking Bulk7To #ed ce t#ans"o#tation costs $an fact #e#s t&"icall& s%i" la#)e ca#tons of t%e "#od ct *%ic% a#e t%en tailo#ed (& t%e #etaile#s into s$alle# 8 antities to $eet indi!id al needs' .e in t%e t&"es of asso#t$ent offe#ed and t%e $a#-et to *%ic% t%e offe#in) is $ade e')' Westside "#o!ides clot%in) and accesso#ies.+UNCTIONS O+ RETAILING • Sorting7Retaile#s (alance t%e de$and of c sto$e#s (& collectin) an asso#t$ent of )oods f#o$ diffe#ent so #ces in la#)e 8 antities and sellin) t%e$ to cons $e#s in s$all 8 antities' Retaile#s s"eciali.

se#!ice offe#ed' . afte# sales se#!ice and dealin) *it% cons $e# de$ands co$"laints a#e so$e of t%e se#!ices t%at add !al e to t%e act al "#od ct' T%e& also offe# c#edit and %i#e " #c%ase facilities to t%e c sto$e#s' Sales "eo"le a#e also %i#ed (& t%e #etaile#s to ans*e# 8 e#ies a(o t t%e dis"la&ed "#od cts' • Channels of Communication7T%e& act as a c%annel (et*een t%e *%olesale# and t%e cons $e#' +#o$ Ad:s Sales"e#sons and dis"la& s%o""e#s lea#n a(o t t%e "#od ct.+UNCTIONS99' • Holding Stock7Retaile#s $aintain an in!ento#& t%at allo*s fo# instant a!aila(ilit& of t%e "#od ct to t%e cons $e#s' It %el"s to -ee" t%e "#ices sta(le and ena(les to #e) late "#od ction' • Additional Services7P#o!idin) "#od ct ) a#antee.

sto#a)e ad!e#tisin) and "#e"a&$ent of $e#c%andise' T%is also *o#-s t%e ot%e# *a& #o nd in case t%e n $(e# of #etaile#s is s$all' .+UNCTIONS99' • T#ans"o#t and Ad!e#tisin) + nctions7 S$all $an fact #e#s can se #etaile#s to "#o!ide assistance *it% t#ans"o#t.

ACTIVITIES PER+OR0ED </ RETAILERS • A##an)in) an asso#t$ent of offe#in)s • <#ea-in) 8 antit& • Holdin) stoc• E.tendin) se#!ices .

"e#fo#$in) $o#e t%an one acti!it&' • U'S %as a #etail densit& ie concent#ation of la#)e #etail fi#$s so$e of t%e$ e!en eli$inate *%olesale#s' • In India t#aditionall& t%e s$all #etaile#s "la&ed a $a=o# #ole in !a#io s secto#s ntil #ecentl&' . a #etaile# and t%e final cons $e#' • 0ost dist#i( tion c%annels %a!e a de)#ee of !e#tical inte)#ation. a *%olesale#.STRUCTURE AND NATURE O+ RETAILING CHANNELS • Retailin) is t%e last sta)e in t%e dist#i( tion "#ocess. *%ic% in!ol!es all "#ocesses in $o!e$ent of )oods f#o$ "#od ce# to cons $e#' • A t&"ical c%annel consists of a $an fact #e#.

ation' E')' Aa$at% Resta #ant is $ana)ed (& a sin)le o*ne# ( t %as $an& o tlets in !a#io s cities' . e')' (an-s.CLASSI+ICATION O+ RETAILERS • Retaile#s can (e classified into t%e follo*in) cate)o#ies> • Products or Services7Retaile#s of )oods deal *it% tan)i(le "#od cts' W%ile #etaile#s of se#!ices deal *it% intan)i(le )oods. )a#a)es $aintenance se#!ices etc' • By Ownership7A #etaile# co ld (e an?a@ Inde"endent #etaile# *%e#e %e o# %is fa$il& $e$(e#s o*n one o# $ lti"le sto#es' E')' an& )ene#al sto#e. )#oce#& s%o" • ?(@ C%ain sto#e7Is a "a#t of a )#o " of #etail sto#es o*ned and o"e#ated (& a sin)le co#"o#ate o#)ani. cons ltants.

VLCC etc • By Number of OutletsB Retaile#s can o"e#ate t%#o )% a sin)le s%o" o# it can (e a "a#t of a c%ain %a!in) $ lti"le o tlets' • By ariety of Products Sold7He#e t%e& co ld (e ?a@ De"a#t$ent Sto#es *%ic% offe#s a *ide !a#iet& of )ene#al "#od cts' ?(@ S"ecialt& Sto#e7T%is offe#s onl& s"ecific cate)o#& of t%e "#od ct ( t in de"t%' . <enetton. Ni-e.CLASSI+ICATION9999'' • ?c@+acto#& O tlet7T%e& a#e o*ned and $ana)ed (& t%e $an fact #e# e) (#anded "#od cts li-e <ata. Son& etc a#e sold t%#o )% facto#& o tlets onl&' • ?d@+#anc%ise O tlet70an fact #e# )i!es f#anc%ise to a n $(e# of inde"endent #etaile#s *%o a#e (o nd to follo* ce#tain # les laid (& t%e $an fact #e#' E')' 0cDonalds.

CLASSI+ICATION9999 • Va#iet& Sto#e7He#e t%e foc s is on !a#iet& i'e' *idt% of t%e "#od ct $i. and less on t%e de"t% of t%e "#od ct line' • By Number of Product !ines Carried7He#e t%e& can (e di!ided into Gene#al 0e#c%andise. f#ee *#a""in) etc' • By Pricing Strategy7He#e t%e& co ld (e Disco nt sto#es *%ic% #e) la#l& offe# lesse# "#ices and sell in ( l-' . Li$ited line and Sin)le line sto#es' • By !evel of Service7He#e t%e& co ld (e eit%e# Self se#!ice sto#es o# Li$ited se#!ice #etaile#sC%e#e t%e& "#o!ide $o#e info#$ation and assist t%e c sto$e#s in t%ei# " #c%ase' T%e& co ld also (e + ll se#!ice #etaile#s *%e#e t%e& e!en offe# %o$e deli!e#&.

ed "lace of o"e#ation' Ne.ed P#ice s%o"s7T%e& fi.%i(itions stalls etc' ."o#t #e=ected etc' • +i.CLASSI+ICATION9999 • Off "#ice s%o"sB %e#e t%e "#od cts sold a#e )ene#all& at lo* "#ices and a#e of %i)% 8 alit& ( t o tdated.ed s%o" #etaile#s *%e#e t%e& %a!e fi.ed "#ice ta) and t%e& a#e a##an)ed acco#din) to t%e "#ices' • By Si"e of shop7He#e t%e& co ld (e s$all s%o"s o# la#)e s%o"s • By !ocation7He#e t%e& a#e classified as +i. a "#ice #an)e *%ic% so nds att#acti!e to t%e c sto$e#s eac% "#od ct %as a fi. odd lots e.t t%e& co ld (e 0o(ile #etaile#s e')' %a*-e#s "eddle#s e.

ed location sto#es7%e#e t%e& can (e one of t%e o tlets in t%e s%o""in) $alls cente#s a#cades etc' • Te$"o#a#& sto#esB T%ese a#e in fai#s e. tele$a#-etin). di#ect $ail $a#-etin) and a to$atic !endin) $ac%ines' • By !ocation of $acilities or a cluster7%e#e t%e& a#e classified on t%e (asis of t%ei# location it co ld (e standin) alone o# (e a "a#t of a cl ste# of s%o"s'?a@ f#eestandin) sto#es7T%ese a#e sto#es *%ic% a#e stand alone and nattac%ed to ot%e# #etaile#s' • +i. online #etailin).%i(itions s%o""in) festi!als etc' .es "e#fo#$in) t%ei# f nctions in t%e "%&sical sto#e a#e sto#e #etaile#s' • Non Sto#e #etaile#s7It incl des Di#ect sellin). teles%o""in).CLASSI+ICATION9999' • By #ethod of operation7He#e t%e& a#e classified as Sto#e #etaile#s *%ic% a#e all #etaile#s of diffe#ent si.

cons $e# coo"e#ati!es $e#c%andisin) con)lo$e#ates7t%ese a#e si$ila# to alliances f#o$ t%e sa$e secto# s%a#e t%ei# #eso #ces and inte)#ate t%ei# $ana)e$ent f nction' .ed #etailin)7T%e& a#e di!ided into co#"o#ate c%ains !ol nta#& c%ains f#anc%isin).T/PES O+ RETAILING • Retailin) is di!ided into foll t&"es> • Sto#e #etailin)7 • Non sto#e #etailin) B T%ese %a!e (een disc ssed nde# $et%ods of o"e#ation "#e!io sl&' • O#)ani.

)lo(ali. t%e#e(& t%e s$all $o$ and "o" sto#es and -i#ana sto#es a#e facin) intense co$"etition' .ation and c sto$e# "#efe#ences' • Cons $e#s a#e not onl& loo-in) fo# t%e co#e "#od cts o# f nctional (enefits ( t also non f nctional (enefits *%ic% need to (e co$"ati(le to t%ei# lifest&les' • 0on and Po" Sto#es and T#aditional Ai#ana sto#es7T%e #etail secto# is c%an)in) as ne* sto#es cate)o#ies %a!e do$inated t%e $a#-et and de!elo"ed s ccessf l #etail $odels.TRENDS IN RETAIL +OR0ATS • Retail Ind st#& is contin o sl& )oin) t%#o )% c%an)es on acco nt of li(e#ali.ation.

0ac&:s do$inated $alls all o!e# A$e#ica %o*e!e# t%e& %a!e s ffe#ed (adl& d e to c%an)in) s%o""in) "atte#ns and inc#eased co$"etition f#o$ disco nt sto#es' • Disco nt sto#es7T%ese a#e )iants li-e t%e WalC0a#t.TRENDS999' • ECCo$$e#ce7T%e a$o nt of #etail ( siness (ein) cond cted on t%e Inte#net is )#o*in) #a"idl&' 0an& $a=o# #etail o#)ani. S"o#ts A t%o#it& etc' .ations %a!e online #etail sto#es ' • De"a#t$ent sto#es7A fe* &ea#s a)o na$es li-e D'C'Penne&. Sea#s. Ta#)et etc %a!e c%an)ed t%e #etail ind st#& d#asticall&' • Cate)o#& -ille#s7T%ese a#e )iant #etaile#s t%at do$inate one a#ea of $e#c%andise e) OfficeCDe"ots.

T#ends9999'' • S"ecialt& sto#es7T%e& incl de T%e <od& S%o". Victo#iaEs Sec#et etc t%e& concent#ate on one t&"e of $e#c%andise and offe# it in a *a& t%at $a-es it s"ecial' So$e a#e !e#& %i)% end li-e Lo is V itton and so$e cate# to "#ice conscio s $asses e')' Old Na!&' • ECTaile#s7T%ese a#e t%ose #etaile#s *%ic% a#e st#ictl& online' T%e& %a!e )i!en t%ei# co$"etito#s a # n fo# t%ei# $one&' .

RELATIONSHIP <ETWEEN RETAILERS AND THEIR SUPPLIERS • Retaile#s BS ""lie#s7Effecti!e O"e#ation7P#ofita(ilit&' • T%e $an fact #e# c%ooses t%e dist#i( tion c%annels afte# conside#in) facto#s li-e "#od ction. ca"a(ilit& ta#)et $a#-et etc' T%e "#od ce# t%en selects t%e $iddle$en t%e #etaile# (ein) one of t%e$' • Intensi!e dist#i( tion is t%e se of all t%e a!aila(le o tlets fo# a "#od ct' • Selecti!e dist#i( tion ses onl& a "o#tion of t%e o tlets a!aila(le in t%at a#ea' • E.a$"le of t%is cate)o#&' .cl si!e dist#i( tion is t%e sa)e of onl& one sin)le o tlet in t%at la#)e a#ea' L . #& )oods a#e an e.

RETAIL STRATEG/ • It indicates %o* t%e fi#$ "lans to foc s its #eso #ces to acco$"lis% its o(=ecti!es T%e& incl de> • Definin) t%e ( siness of t%e fi#$ • Settin) s%o#t te#$ and lon) te#$ o(=ecti!es *it% #e)a#d to "#ofita(ilit&' • Identif&in) t%e ta#)et $a#-et' • Decidin) t%e (#oad di#ection t%e co$"an& $ st ta-e in f t #e' • I$"le$entin) and inte)#ated "lan t%at co!e#s all as"ects of #etailin)' • E!al atin) and #e!isin) t%e "lan de"endin) on t%e nat #e of t%e en!i#on$ent' .

"e#ience t%at is totall& diffe#ent f#o$ fi."os #e in t%e $a#-et' • It is a $eans of co$$ nication a(o t t%e #etail o#)ani. its "#od cts and se#!ices' It also %el"s as a "#oacti!e $a#-etin) tool' In!ites cons $e#s inte#acti!el& to access t%e *e(site and facilitates t%ei# ( &in) "#ocess' • It also "#o!ides !al a(le cons $e# data to #etaile#s to ena(le )#eate# ta#)etin)' • Inte#net #etailin) offe#s an e.ation.ed sto#e #etailin)' • < t t%ose #etaile#s *it% st#on) and esta(lis%ed (#and "#esence effecti!e "%&sical dist#i( tion c%annels a#e less inclined to*a#ds inte#net #etailin)' .THE CHANGING +ACE O+ RETAILING • T%e #ole of Inte#net7It offe#s a *a& to )#o* and an e.istin) #etail ( siness and inc#ease e.

actl& *%at t%e& *ant' • ReCE!al atin) t%e $a#-etin) "lan7Retaile#s *ill stand o t as leade#s in t%ei# $a#-ets (& foc sin) t%ei# ad!e#tisin) effo#ts on t%e (enefits of a c%an)in) c sto$e# (ase' • Ad!anced ed cation fo# #etaile#s is c#itical fo# )#o*t%7T%e& $ st (eco$e inno!ati!e in t%ei# a""#oac% and do st d& and #esea#c%' • St#on) !is al #eco)nition7T%e& $ st ada"t a ne* a""#oac% as !is al $a#-etin) %as (eco$e !e#& i$"o#tant' T%e& $ st (e a*a#e of t%ei# c sto$e#s needs' .DRIVERS O+ SUCCESS IN THE RETAIL SECTOR • C sto$e#s a#e t%e d#i!in) fo#ce in c%an)e7E.cellent c sto$e# se#!ice and con!enience s%o""in)' Retaile#s $ st -no* *%at t%e c sto$e#s *ant and "#o!ide e.

)#eate# a""#eciation and $oti!ation fo# #etention' T%e& $ st acce"t in" ts and let t%e$ %a!e inde"endent t%in-in)' • Plannin) fo# s ccess7Retaile#s $ st "lan fo# t%e e!ol tion and s%ifts in t%e #etail ind st#&' St#ate)ic "lannin) is t%e -e& to "lannin) fo# s ccess' .i(le *it% *o#-in) %o #s.DRIVERS O+ SUCCESS999'' • T%e *o#-"lace c%allen)e7E$"lo&ees *ill (eco$e diffic lt to #etain ( t t%e #etaile#s %a!e to (eco$e fle.

o"e#ated as a f#anc%isee. o*ned (& $an fact #e#s o# *%olesale#s o# coo"e#ati!e societies' • O#)ani.ed #etail sto#es a#e )ene#all& c%a#acte#i. "a#ts of a #etail c%ain.UNIT 1 CHAPTER 5 RETAIL ORGANIFATION • T%e te#$ Retail O#)ani. es"eciall& food #elated ite$s' • Retails fi#$s $a& (e inde"endentl& o*ned.ed (& la#)e "#ofessionall& $ana)ed sto#e fo#$ats "#o!idin) )oods and se#!ices t%at a""eal to c sto$e#s' ."endit #e in India is inc ##ed on (asic necessities.ation #efe#s to t%e (asic fo#$at o# st# ct #e of a #etail ( siness desi)ned to cate# to t%e needs of t%e end c sto$e#' • A La#)e "o#tion of cons $e# e.

CHANGING STRUCTURE O+ RETAILING • C%an)in) en!i#on$ents %a!e ca sed c%an)es in t%e nat #e of #etailin) *it% e$e#)ence of %&"e#$a#-ets. inte#net ( &in) etc' • Tec%nolo)ical ad!ances. c%an)in) cons $e# de$ands. *a#e%o se cl (s. intense co$"etition %a!e (#o )%t a(o t i$$ense c%an)es in t%e st# ct #e of t%is ind st#&' • A Ae& i$"act of tec%nolo)& %as (een "#o!ision of )#eate# info#$ation to t%e c sto$e#' Hence t%e o""o#t nities fo# "#ice diffe#entiation %a!e nea#l& !anis%ed' .

self se#!ice etc' • T&"e of "#icin) "olic&7 • T&"e of #etail location7 • 0et%od of c sto$e# inte#action7tele"%one sellin). !endin) $ac%ines .CLASSI+ICATION O+ RETAIL UNITS • Retail nits %a!e (een classified into t%e follo*in) t&"es> • Nat #e of o*ne#s%i"7sole "#o"#ieto#s%i". c%ain o# $ lti"le sto#e. f#anc%isin) o# cons $e# coo"e#ati!e' • Len)t% and de"t% of $e#c%andise7 • Nat #e of se#!iceB + ll se#!ice "#o!ide#s. $o(ile !endo#s etc' . "a#tne#s%i". %o$e deli!e#&. li$ited lia(ilit& co$"an&' • O"e#ational st# ct #e7inde"endent t#ade#.

tent of t%ei# in!est$ent' • Doint !ent #eB It acts li-e )ene#al "a#tne#s%i" ( t fo# a li$ited "e#iod o# a sin)le "#o=ect' .CLASSI+ICATION IN DETAIL • On t%e (asis of O*ne#s%i" • Sole "#o"#ieto#s%i"7T%ese fi#$s a#e o*ned (& one "e#son *%o o*ns all t%e assets of t%e ( siness and t%e "#ofits )ene#ated (& t%e fi#$' He ass $es co$"lete #es"onsi(ilit& fo# t%e lia(ilities of t%e ( siness' • Pa#tne#s%i"7In t%is t*o o# $o#e "eo"le s%a#e o*ne#s%i" of a sin)le ( siness' T%e& s%o ld %a!e a le)al a)#ee$ent as to %o* "#ofits *ill (e s%a#ed. decisions *ill (e $ade. ne* "a#tne#s *ill (e ente#ed etc' T%e#e a#e t%#ee t&"es of "a#tne#s%i"s • Gene#al "a#tne#s%i"7Pa#tne#s di!ide #es"onsi(ilit& fo# $ana)e$ent and lia(ilit&' E8 al s%a#es a#e ass $ed nless t%e#e is a *#itten a)#ee$ent' • Li$ited lia(ilit& "a#tne#s%i"7It $eans t%at $ost "a#tne#s %a!e li$ited lia(ilit& onl& to t%e e.

a#e in f ll cont#ol of t%ei# ( siness' • Retail c%ainB t%e& o"e#ate $ lti"le o tlets' It %as cent#ali.CLASSI+ICATION999' • On t%e (asis of o"e#ational st# ct #eG • Inde"endent #etail nit7It o*ns one #etail nit' T%e#e is a )#eat deal of fle. st#ate)&. t%e& can act as s"ecialists in nic%e )oods' T%e& %a!e inde"endence of o"e#ation.i(ilit& of c%oosin) location.ed " #c%asin) and decision $a-in)' T%e& %a!e t%e (a#)ainin) "o*e# *it% t%e s ""lie#s d e to !ol $e " #c%ases' T%e& can ac%ie!e cost efficienc& (& doin) *%olesalin)' .

cl si!e #i)%ts to sell t%e )oods' T%e& $ st ad%e#e to ce#tain o"e#atin) # les set sto#e ti$in)s c%oose locations dis"la&s' T%e#e a#e t*o t&"es of f#anc%isee:s BP#od ct (ased and ( siness fo#$at (ased' In ( siness fo#$at t%e#e is $o#e inte#acti!e #elations%i" (et*een t%e f#anc%isee and t%e f#anc%ise#s' • Leased de"a#t$ent7It #efe#s to t%e de"a#t$ent in a #etail sto#e t%at a#e #ented to an o tside "a#t&' Us all& t%is is done in s"ecialt& sto#es' T%e& a#e s all& sed (& e.istin) sto#es (ased #etaile#s to (#oaden t%ei# $e#c%andise' .CLASSI+ICATION999' • +#anc%isin)7It in!ol!es cont#act al a##an)e$ent' He#e t%e f#anc%isee "a&s an initial de"osit and a $ont%l& "e#centa)e of )#oss sales in e.c%an)e to t%e e.

t t%e Aend#i&a <%anda# is t%e (est e.a$"le' • It is t%e Cent#al Go!e#n$ent e$"lo&ees cons $e# coo"e#ati!e societ& ltd o"e#ated (& t%e na$e of Aend#i&a <%anda#' It is a net*o#.of 115 sto#es and 65 fai# "#ice s%o"s' It "#o!ides essential co$$odities of dail& needs to t%e c sto$e#s at #easona(le "#ice #an)e' To assist t%e )o!e#n$ent in %oldin) t%e "#ice line and ens #e dist#i( tion of sca#ce co$$odities' .CLASSI+ICATION999' • Coo"e#ati!e o tlets7T%e& a#e )ene#all& o*ned and $ana)ed (& coo"e#ati!e societies' In t%is conte.

ed $a#-et a#eas in t%e cit&' • Ai#"o#t #etailin)7He#e t%e d t& f#ee s%o"s and ne*s stands a#e incl ded' .CLASSI+ICATION999'' • On t%e (asis of #etail location7Retaile#s can locate t%ei# sto#es in an isolated location and att#act t%ei# c sto$e#s on t%ei# o*n st#ate)ies' T%e& co ld also c%oose a ( s& $a#-et a#ea' T%e& a#e as follo*s> • +#ee standin) #etaile#s7T%e& a#e not connected to ot%e# #etaile#s and a#e stand alone sto#es' • Retaile#s in ( siness associated location7Located *%e#e a )#o " of #etail o tlets offe#in) a !a#iet& of "#od cts a#e att#actin) t%e sa$e t&"e of c sto$e#s' T%e& also co$"ete fo# t%e sa$e c sto$e#s' • Retaile#s in s"eciali.ed $a#-ets7T%e& set " t%ei# sto#es in s"eciali.

VARIET/ O+ 0ERCHANDISE 0IH • T%e#e a#e $an& diffe#ent #etail sto#es in India and t%e c sto$e# can c%oose f#o$ t%ese fo# diffe#ent needs> • De"a#t$ent sto#es • Disco nt sto#es • S"ecialt& sto#es • H&"e#$a#-ets' .

UNIT 1 CHAPTER I RETAIL CUSTO0ER • CHAPTER HIGHLIGHTS • CONSU0ER <EHAVIOR • WH/ DO PEOPLE SHOPJ • +ACTORS A++ECTING CONSU0ER DECISION 0AAING • T/PES O+ DECISION 0AAING • CONSU0ER DECISION RULES • IN+LUENCES ON SHOPPING <EHAVIOUR • CONSU0ER I0AGES O+ RETAIL STORES • INDIAN SHOPPERS .

t%e "lace of " #c%ase and f#e8 enc& of " #c%ase' • On t%e (asis of t%e a(o!e findin)s t%e $a#-ete#s e!ol!e t%e (est $a#-etin) $i. $one&. t%e (#and "#efe#ence. sin) dis"osin) )oods and se#!ices' • Retaile#s need to conside# t%e decision $a-in) !a#ia(les and nde#stand t%e$ efficientl&' • E'G' in case of Pic-les $a#-ete#s *ill (e inte#ested in findin) o t t%e t&"e of "ic-le c sto$e#s intend to ( &.CONSU0ER <EHAVIOUR • It is t%e nde#standin) of %o* cons $e#s $a-e decisions to se t%ei# ti$e. #eso #ces and effo#ts fo# ( &in). to att#act t%e ta#)et $a#-et' . #eason fo# sin).

fat%e# etc' • Di!e#sion7It can offe# a di!e#sion f#o$ t%e dail& #o tine' • Self )#atification7S%o""in) $a& (e $oti!ated not (& t%e tilit& of cons $"tion of t%e "#od ct ( t (& t%e ( &in) "#ocess itself' • Lea#nin) a(o t ne* t#ends' • P%&sical acti!it&' . %o se*ife."ected and acce"ted as "a#t of one:s "osition e')' $ot%e#.WH/ DO PEOPLE SHOPJ • Personal #otives BIt incl des #ole "la&in) $eans s%o""in) acti!ities a#e lea#ned (e%a!io#s and e.

enco nte#s *it% f#iends etc' • Co$$ nication *it% ot%e# si$ila# inte#ests' • Pee# )#o " att#actionsB ce#tain sto#es "#o!ide a $eetin) "lace *%e#e "ee# )#o "s )at%e#' • Stat s and a t%o#it&' • Pleas #e (a#)ainin)CC .WH/ DO 999999 • Social 0oti!es7It in!ol!es social e. see-in) ne* ac8 aintances."e#ience o tside %o$e.

lea#nin).e. "e#sonalit&' • En!i#on$ental facto#s7P%&sical.+ACTORS A++ECTING CONSU0ER DECISION 0AAING • T%e#e a#e fo # $a=o# facto#s> • De$o)#a"%ic7it incl des )ende#. "e#ce"tion. ed cation. nat #e of occ "ation. fa$il& si. attit de. a!aila(ilit& of leis #e' . occ "ation. social en!i#on$ent' • Lifest&le7Acti!ities and inte#ests. inco$e' • Ps&c%olo)ical7It incl des $oti!es. a)e.

a)e. 8 antifia(le and easil& identifia(le "o" lation data li-e inco$e. $a#ital stat s.DE0OGRAPHIC +ACTORS • T%e& a#e ni8 e to a "a#tic la# "e#son' T%e& a#e o(=ecti!e.e etc' • It also in!ol!es identification of *%o is #es"onsi(le fo# t%e decision $a-in) and ( &in)' . fa$il& si.

to o!e#co$e t%is "e#ce"tion a$on) "#os"ecti!e cons $e#s t%e $ana)e$ent int#od ced a ten # "ees soft& ice c#ea$ to att#act s%o""e#s' . "e#sonalit&. d e to t%ei# #es"ecti!e $oti!es.in) fo#ces t%at o#ient a "e#sons acti!ities satisf&in) a need o# ac%ie!in) a )oal' • Pe#ce"tion7It is t%e "#ocess of selectin).in) and inte#"#etin) info#$ation to "#od ce $eanin)' T%e sa$e sti$ l s $a& (e "e#cei!ed diffe#entl& (& diffe#ent set of cons $e#s' E'G' 0c Donald:s o tlets *e#e initiall& "e#cei!ed as costl&. "e#ce"tion etc' • 0oti!es a#e inte#nal ene#)i. o#)ani.PSC/CHOLOGICAL +ACTORS • It s%o*s t%at cons $e#s #es"ond diffe#entl& to*a#ds t%e sa$e $a#-etin) $i.

' It co$"#ises -no*led)e and "ositi!e and ne)ati!e feelin)s a(o t an o(=ect o# acti!it&' Cons $e#s attit de to*a#ds a sto#e and its "#od cts )#eatl& infl ences t%e s ccess o# fail #e of a #etail o tlet' • Pe#sonalit&7It #efe#s to all t%e inte#nal t#aits and (e%a!io#s t%at $a-es a "e#son ni8 e' T#aits affect t%e *a& "eo"le (e%a!e' E'G' Indian cons $e#s )i!e d e i$"o#tance to #etaile#s i$a)e to a )#eat e."e#ience' • Attit de7It is t%e c sto$e#:s "#edis"osition to #es"ond fa!o#a(l& o# nfa!o#a(l& to an ele$ent of #etail $i.PS/CHOLOGICAL +ACTORS9999' • Lea#nin)C It is t%e "#ocess t%#o )% *%ic% a #elati!el& "e#$anent c%an)e in (e%a!io# #es lts f#o$ t%e conse8 ences of a "ast (e%a!io#' Va#io s #easons ca se a "e#$anent c%an)e in (e%a!io# t%#o )% info#$ation and e.tent *%ile selectin) t%e sto#e' .

te#nal *o#ld incl din) "%&sical o(=ects. lo*e# ""e# class. s"atial #elations%i"s ? i'e' location of t%e sto#e@ and social facto#s' T%e en!i#on$ental facto#s infl ence cons $e#s *ants. #elati!es #e)a#din) "#os"ecti!e ( &in) o# "ast " #c%ases and so$eti$es o(se#!e ot%e#s sin) t%e "#od ct' • C sto$e#s a#e classified into ""e# elite class.ENVIRON0ENTAL +ACTORS • T%e& co!e# all "%&sical and social c%a#acte#istics of a cons $e#s e. *o#-in) class. ""e# $iddle class. lo*e# class' . needs lea#nin) $oti!es *%ic% affect t%e s%o""in) (e%a!io# of t%e cons $e#' • T%e social en!i#on$ent incl des all social inte#actions a$on) "eo"le' Cons $e#s inte#act *it% f#iends. $iddle class.

inte#ests o"inions etc' • It is %i)%l& coC#elated *it% cons $e#s !al es and "e#sonalit&' • E')' Indian *o#-in) *o$en %a!e to (alance t%ei# *a#d#o(e collection (ased on #e8 i#e$ents on diffe#ent occasions #elated to "#ofessional *o#-"lace. fa$il& )at%e#in)s o tin)s *it% f#iends etc' .ENVIRON0ENTAL +ACTORS99'' • Lifest&leCIt #efe#s to an indi!id al:s $ode of li!in) as identified (& t%ei# acti!ities.

STAGES O+ THE CONSU0ER DECISION 0AAING PROCESS • It is t%e "#ocess *%ic% t%e cons $e#s )o t%#o )% *%en t%e& decide to $a-e a " #c%ase' Cons $e#s co$"a#e o"tions and finall& decide to " #c%ase *%at see$s to (e t%e (est alte#nati!e (ased on a set of c#ite#ia' • Need Reco)nition7It occ #s *%en t%e cons $e# #eali.es a si)nificant )a" (et*een %is o# %e# "#esent state and so$e desi#ed le!el of state' • Info#$ation sea#c%7Once t%e indi!id al %as ac-no*led)ed a need o# "#o(le$ t%en %e o# s%e loo-s fo# info#$ation to #esol!e t%e need' He#e t%e "#os"ecti!e ( &e#s e.a$ine t%ei# en!i#on$ent fo# a""#o"#iate info#$ation to $a-e decision' .

#etail o tlet o# (#anc%' T%is is t%en follo*ed (& a " #c%ase decision (& t%e cons $e#' In #etailin) t%e " #c%ase sta)e "la&s a si)nificant #ole in cons $e#s decision $a-in) "#ocess' ."osed to and #e$e$(e#s and is co$"ati(le *it%' • P #c%ase decision7Afte# e!al atin) !a#io s alte#nati!es an indi!id al is in a "osition to foc s on t%e "#efe##ed "#od ct cate)o#&.STAGES9999'' • E!al ation of Alte#nati!es7Afte# info#$ation sea#c% t%e c sto$e# is e."ected to ta-e a final decision on one of t%e c%oices' T%e alte#nati!es *%ic% a#e acti!el& conside#ed d #in) t%e decision $a-in) "#ocess constit te t%e indi!id al:s e!o-ed set' T%is incl des t%ose #etail o tlets *%ic% t%e cons $e# is e.

STAGES9999' • Post " #c%ase dissonance7Afte# " #c%asin) a "a#tic la# )ood o# se#!ice cons $e#s e!al ate its "e#fo#$ance a)ainst t%ei# e."ectations o# it e."ectations' ."ected le!el of satisfaction' Eit%e# t%e "e#fo#$ance $eets e."ectations o# it is (elo* t%e e.ceeds t%e e.

"ensi!e "#od cts' .tensi!e decision $a-in)7It %a""ens fo# nfa$ilia# "#od cts o# e.T/PES O+ CONSU0ER DECISION 0AAING • P #c%ases a#e classified into> • Ro tine ( & • 0odified #e( & • Ne* "#od ct " #c%ase • E.t#e$el& ni8 e o# e.

definition7It is $o#e indi!id al s"ecific it incl des $oti!ational indications of t%e s%o""in) (e%a!io#' . en!i#on$ent' • Social settin)7In!ol!es "#esence o# a(sence of ot%e#s *%ile s%o""in)' • Te$"o#al as"ects7Ti$e of t%e da& and ti$e const#aints' • Tas.IN+LUENCE O+ VARIA<LES ON SHOPPING <EHAVIOR • It #efe#s to all t%ose facto#s "a#tic la# to a ti$e o# "lace of o(se#!ation *%ic% do not follo* f#o$ a -no*led)e of "e#sonal and sti$ l s att#i( tes' It incl des • P%&sical settin)7Location.

RETAIL I0AGE DI0ENSIONS • It incl des> • Locational con!enience • 0e#c%andise s ita(ilit&' • Val e fo# "#ice • Sales effo#t and sto#e se#!ices • Con)enialit& • Post t#ansaction satisfaction' .

UNIT 1 CHAPTER 6 RETAIL 0ARAET SEG0ENTATION • Hi)%li)%ts of t%e c%a"te# • 0a#-et se)$entation • <enefits • Sta)es of t%e cons $e# decision "#ocess • Se)$entin) ta#)etin) "ositionin) • C#ite#ia fo# effecti!e $a#-et se)$entation • Ainds of $a#-ets • Di$ensions fo# se)$entation • 0a#-et ta#)etin). c sto$e# "#ofile • S #!e& of ( &e#s intentions .

0ARAET SEG0ENTATION
• 0a#-et Se)$entation is t%e "#ocess of di!idin) t%e %ete#o)eneo s total $a#-et into s$all )#o "s of c sto$e#s *%o s%a#e a si$ila# set of *ants' • Eac% of t%ese "ossess so$e %ete#o)eneo s c%a#acte#istics' • Se)$entin) is an a))#e)atin) "#ocess cl ste#in) "eo"le *it% si$ila# needs into a $a#-et se)$ent' • Diffe#ent )#o "s o# se)$ents #e8 i#e diffe#ent "#o$otional st#ate)ies and $a#-etin) $i.es (eca se t%e& %a!e diffe#ent *ants and needs' • Se)$entation %el"s t%e #etaile# to c sto$i,e t%e "#od ct and tailo# its "#o$otional ca$"ai)ns'

<ENE+ITS O+ 0ARAET SEG0ENTATION
• De!elo"$ent of 0a#-etin) $i.' • Sto#e location decisions' • Unde#stand c sto$e# (e%a!io#' • 0e#c%andisin) decisions' • P#o$otional ca$"ai)ns' • Positionin)7It %el"s a #etaile# in "ositionin) itself in t%e $a#-et' E')' Westside ta#)ets $iddle and ""e# $iddle class cons $e#s'

SEG0ENTING, TARGETING, POSITIONING'
• T%e#e a#e t%#ee sta)es of 0a#-et se)$entation7se)$entin), ta#)etin) and "ositionin)' • T%e se)$entation "#ocess (e)ins *it% t%e a))#e)ation of c sto$e#s into )#o "s to $a.i$i,e %o$o)eneit& *it%in t%e se)$ents' • Once t%e $a#-et se)$ents a#e identified t%en detailed "#ofiles of c sto$e#s in eac% se)$ent s%o ld (e de!elo"ed' • C sto$e# "#ofiles %el" t%e #etaile#s in nde#standin) t%e (e%a!io# of ta#)et $a#-ets'

• Afte# t%e $a#-ets a#e se)$ented and "#ofiled t%e #etaile#s %a!e to decide *%ic% se)$ents to ta#)et and foc s on' • Afte# selectin) t%e ta#)et se)$ents t%e& %a!e to de!elo" t%e "ositionin) st#ate)&' • +o# effecti!e "ositionin) a detailed nde#standin) of t%e needs of t%e ta#)et se)$ents is necessa#&'

CRITERIA +OR E++ECTIVE 0ARAET SEG0ENTATION • +o# 0a#-et se)$entation to (e effecti!e t%e identified se)$ents $ st satisf& t%e follo*in) c#ite#ia> • Ho$o)eneo s *it%in7T%e c sto$e#s in a sa$e se)$ent s%o ld %a!e si$ila# needs and *ants' • Hete#o)eneo s (et*een7T%e c sto$e#s in diffe#ent se)$ents s%o ld (e as diffe#ent as "ossi(le *it% #es"ect to t%ei# needs and ( &in) (e%a!io#' • S (stantial7T%e $a#-et se)$ent t%at a #etaile# "lans to ta#)et $ st (e la#)e eno )% and %a!e eno )% disc#etiona#& inco$e to %el" t%e #etaile# to (e "#ofita(le' • Actiona(le7E')' <a#ista ta#)ets &o n)ste#s *%o see.e. " #c%asin) "o*e# and t%e c%a#acte#istics of t%e $a#-et se)$ent $ st (e $eas #a(le' .to en=o& coffee in a fas%iona(le o tlet' • Accessi(leCT%e ta#)et $a#-et se)$ent $ st (e #eac%a(le' • 0eas #a(le7T%e si.

T/PES O+ 0ARAETS • T%e#e a#e t%#ee t&"es of $a#-ets • Cons $e#7Incl des indi!id als *%o ( & )oods fo# t%ei# o*n se' • Ind st#ial $a#-et7incl des )#o "s o# o#)ani.ations t%at " #c%ase "#od cts fo# se in "#od ction of ot%e# "#od cts' • ReCselle# $a#-etsB Incl des $iddle$en li-e *%olesale#s o# #etaile#s *%o ( & finis%ed )oods and #esell t%e$ fo# a "#ofit' .

De$o)#a"%ic. co nt#ies. "s&c%o)#a"%ic and (e%a!io#al' • Geo)#a"%ic7He#e t%e $a#-et is di!ided into )eo)#a"%ical nits li-e nations. cities etc'Retaile#s in India %a!e often se)$ented $a#-ets (& cities and foc ses on $et#os and la#)e cities' • De$o)#a"%ic7In t%is t%e $a#-et is di!ided into )#o "s (ased on de$o)#a"%ic !a#ia(les s c% as a)e. #eli)ion. #e)ions.e a "a#tic la# #etail o tlet' .DI0ENSIONS +OR SEG0ENTATION • Di$ensions fo# Se)$entation a#e Geo)#a"%ic. )ende#. inco$e etc'T%e #etaile# s%o ld se)$ent t%e $a#-et on !a#ia(les *%ic% #eflect inte#est. states. need and a(ilit& of t%e c sto$e# to "at#oni.

f#e8 enc& of " #c%ase. o# !al es' • Val es #efe# to (elief s&ste$s t%at )o (e&ond (e%a!io#' Val es a#e sta(le and occ "& a cent#al "osition in a "e#sons co)niti!e s&ste$' • <e%a!io#al Se)$entation7He#e t%e c sto$e#s a#e di!ided into )#o "s (ased on t%e *a& t%e& #es"ond to se. (enefits se# stat s. lo&alt& stat s.DI0ENSIONS +OR SEG0ENTATION • Ps&c%o)#a"%ic se)$entation7He#e t%e ( &e#s a#e di!ided into diffe#ent )#o "s (ased on t%ei# lifest&le. "e#sonalit&. 8 antit&. "#od ct sa)e. o# -no* a "#od ct' 0a#-ete#s can co$"ile info#$ation !a#ia(les s c% as occasions. so #ce of " #c%ase' .

CUSTO0ER PRO+ILE • It $a& contain t%e follo*in) info#$ation> • C sto$e# de$o)#a"%ics • +a$il& decision $a-in)7W%en fa$ilies a#e t%e ta#)et c sto$e#s t%e #etaile# needs to nde#stand t%e decision $a-in) "#ocess in t%e fa$il&' • Ps&c%o)#a"%ics7T%e #etaile# %as to "#ofile its cons $e#s lifest&les and !al es' E')' t%e t&"ical c sto$e# at Westside $a& (e a so"%isticated $iddle class lad& *%o !al es %e# inde"endence. s%o"s fo# (est "#od cts and is loo-in) fo# )ood !al e fo# %e# $one&' .

t&"e of "ac-a)in) t%e& "#efe#. if %e %as detailed info#$ation on t%e #e8 i#e$ents of its ta#)et se)$ents #e)a#din) c%oice of "#od cts. "#ice t%e& a#e *illin) to "a&. t%ei# " #c%asin) (e%a!io#' T%e& can collect t%is info#$ation (& t%e follo*in)> • +#e8 enc& of c sto$e# !isits to t%e sto#e • Wee-da& *ee-end s%o""in) "atte#ns • S"endin) "e# !isit • Planned Vs n"lanned s%o""in) • Sto#e lo&alt&' .SURVE/ O+ <U/ERS INTENTIONS • T%e #etaile# can de!elo" an effecti!e $a#-etin) "lan and ot%e# ele$ents of a $a#-etin) $i.

0ARAET SEG0ENTATION IN INDIA • T%e Indian cons $e# $a#-et *it% its la#)e de$o)#a"%ic. "s&c%olo)ical and ot%e# st#ate)ic !a#ia(les "#esents an ideal a#ena fo# se)$entation' • E')' 0cDonald:s int#od ced Ve)eta#ian "#od cts to ta#)et t%e la#)e "o" lation of !e)eta#ians in India *%o a!oid non !e) diet on acco nt of %ealt% and #eli)io s (eliefs' .

UNIT 1 CHAPTER 3 RETAIL LOCATION STRATEG/ • C%a"te# %i)%li)%ts> • I$"o#tance of location decision • Le!els of location decision and its dete#$inin) facto#s • T&"es of #etail location • T&"es of cons $e# )oods and location decision • T#adin) a#ea • Site selection anal&sis • Selection of a "a#tic la# s%o""in) cent#e • Ho* to $a-e a t#affic co nt • Retail location t%eo#ies' .

affects t#ans"o#tation costs. affects t%e !ol $e of ( siness' • A location decision is infl enced (& t%e flo* of "edest#ian and !e%ic la# t#affic *%ic% dete#$ine t%e footfalls in a #etail sto#e' . affects % $an #eso #ce costs' • Location is a $a=o# #e!en e facto# (eca se it affects t%e a$o nt of c sto$e# t#affic.I0PORTANCE O+ LOCATION DECISION • I$"o#tance of Location is d e to t%e follo*in) facto#s> • Location is a $a=o# cost facto# (eca se it in!ol!es la#)e ca"ital in!est$ent.

total #etail t#ade "otential.LEVELS O+ LOCATION DECISION AND ITS DETER0INING +ACTORS • A Retaile# %as to ta-e t%e location decision on t%e (asis of t%#ee as"ects> • Selection of a cityCW%ic% incl des si.e of t%e cit&:s t#adin) a#ea. de!elo"$ent cost' • Selection of an Area or type of location within a city7It incl des ade8 ac& and "otential of t#affic "assin) t%e site.e and 8 alit& of co$"etition. ade8 ac& of "a#-in)' . n $(e# si. a(ilit& of t%e site to inte#ce"t t%e t#affic flo*in) "ast t%e site. total " #c%asin) "o*e#. "o" lation )#o*t% in t%e t#adin) a#ea. co$"le$enta#& nat #e of ad=acent sto#es.

ed $a#-ets fa$o s fo# a "a#tic la# "#od ct cate)o#&' And t%e#e a#e Pe#iodic $a#-ets *%ic% o"e#ates on a s"ecific da& in a *ee.LEVELS O+ LOCATION999999' • %ypes of &etail location7It co ld eit%e# (e a f#ee standin) location. o# located in #esidential nei)%(o#%ood. ( siness associated location7*%ic% co ld (e an n"lanned ( siness dist#ict o# a cent#al ( siness dist#ict' Planned s%o""in) cente#s a#e )#o " of sto#es *%ic% o"e#ate as a nit' T%e (est e')' of "lanned s%o""in) cente#s a#e 0alls' • T%en t%e#e a#e t%e s"eciali. %i)%*a& sto#es.o# a $ont%' .

T/PES O+ CONSU0ER GOODS AND LOCATION DECISION
• T%e t&"es of )oods sold (& a #etaile# also affect t%e location decision> • Con!enience )oods7T%e& i$"l& "#od cts t%at ca##& a lo* nit "#ice, a#e " #c%ased f#e8 entl&, a#e (o )%t (& %a(it and a#e sold in n $e#o s o tlets' E')' cand& (a#s, ci)a#ettes, $il- etc' • S%o""in) )oods7T%e& i$"l& "#od cts *it% a %i)% nit "#ice' T%e& a#e " #c%ased inf#e8 entl& and in!ol!e $o#e intensi!e sellin) effo#t' E')' $enEs s its, f #nit #e, a to$o(iles etc'T%e ( &e#s li-e to co$"a#e t%e ite$s in se!e#al sto#es'

T/PES O+ CONSU0ER GOODS9999'
• S"ecialit& )oods7T%e& i$"l& "#od cts *it% %i)% nit "#ice *%ic% a#e (o )%t inf#e8 entl&, *%ic% #e8 i#e a s"ecial effo#t on t%e "a#t of t%e c sto$e# to $a-e " #c%ase, and *%ic% a#e )ene#all& sold in e.cl si!e f#anc%ised o tlets' E')' "#ecio s =e*elle#&, e."ensi!e "e#f $es, fine f #s etc' T%ese )oods a#e often so )%t (& c sto$e#s *%o a#e al#ead& sold on t%e "#od ct, (#and o# (ot% etc'

TRADING AREA
• A T#ade a#ea is a )eo)#a"%ic a#ea f#o$ *%ic% a #etaile# d#a*s c sto$e#s t%at acco nt fo# t%e $a=o#it& of t%e sto#es sales' • T%e t#ade a#ea can (e di!ided into t*o o# $o#e ,ones' T%e di$ensions of t%ese ,ones de"end on t%e si,e of t%e sto#e, its location and nat #e of t%e $e#c%andise it deals in' • T%e ,ones a#e "#i$a#&, seconda#& and te#tia#& ,ones'

and o!e#all ( siness $odel t%e #etaile# %as to conside# t%e follo*in) facto#s *%ile selectin) a site> • Ainds of "#od cts sold • Cost facto# in location decision • Co$"etito#:s location • Ease of t#affic flo* and accessi(ilit& • Pa#-in) and $a=o# t%o#o )%fa#es • 0a#-et t#ends • Visi(ilit& .SITE SELECTION ANAL/SIS • Aee"in) in !ie* t%e "#od ct $i.. c sto$e# "#ofile.

onin) "lan and decide %o* lon) it *ill (e !ia(le to # n t%e ( siness at a "a#tic la# location' .SELECTION O+ A PARTICULAR SHOPPING CENTRE • T%e follo*in) facto#s affect t%e selection of a "a#tic la# s%o""in) cent#e> • 0e#c%ants association7Its "#esence %el"s in st#en)t%enin) ( siness and sa!e $one& t%#o )% )#o " ad "lans' • Res"onsi!eness of t%e landlo#d7 • Fonin) and "lannin)7Will const# ction o# c%an)es in cit& t#affic affect &o # sto#e and ( siness' • Leases7It is di#ectl& #elated to .onin) as #etaile#s s%o ld collect info#$ation on f t #e .

t&' T%e di#ections s%o ld (e clea# as to t%e indi!id als to (e co nted so t%e co nte#s *ill (e consistent' • A to$o(ile t#affic co nt70an& #etail fi#$s de"end on d#i!e in t#affic fo# t%ei# sales' T%e#e(& t%is data needs to (e collected and s ita(l& $odified' .teen and si. e')' all $en (et*een si.HOW TO 0AAE A TRA++IC COUNT • It is di!ided into Pedest#ian t#affic co nt and A to$o(ile t#affic co nt' • Pedest#ian t#affic co nt7One $ st decide %e#e *%o is to (e co nted.

RETAIL LOCATION THEORIES • Cent#al Place t%eo#&7It states t%at a cent#al s"ace and $a#-et a#ea (est e.ed s ""l& and de$and' T%is t%eo#& is (ased on t%e att#acti!eness of alte#nate s%o""in) a#eas a)ainst t%e dete##ent effect of distance' . o# info#$ation a$on) "laces in #es"onse to locali."#ess "atte#n of settle$ent' Retaile#s "#efe# to se#!e cons $e#s *%o li!e *it%in a #an)e *%e#e c%ea"e# deli!e#& "#ices can (e "ossi(le' • S"atial Inte#action T%eo#&7S"atial inte#action is defined as t%e flo* of )oods. "eo"le.

and %i)%e# *ill (e t%e "#ice as $o#e (idde#s *ill (id to " #c%ase t%e land' .THEORIES99999 • Land Val e t%eo#&7It is sed fo# anal&.in) and e."lainin) t%e a##an)e$ent of #(an land ses and t%e location of econo$ic acti!ities *it%in cities' T%e "#ice *%ic% a (idde# is li-el& to "a& *ill de"end on t%e se *%ic% *ill (e $ade of t%e site' • Gene#all& t%e $o#e cent#al t%e location t%e $o#e desi#a(le *ill (e t%e "lot.

UNIT 1 CHAPTER K PRODUCT AND 0ERCHANDISE 0G0T • CHAPTER HIGHLIGHTS • P#od ct 0ana)e$ent • <#and 0ana)e$ent and Retailin) • 0e#c%andise 0ana)e$ent • 0odel Stoc.Plan • Const#ainin) +acto#s • T&"es of s ""lie#s • C#ite#ia fo# t%e selection of s ""lie#s • Cate)o#& 0ana)e$ent • 0e#c%andise $ana)e$ent "lannin) in !a#io s #etail se)$ents .

"laces.PRODUCT 0ANAGE0ENT • P#od cts in a #etailin) conte. e!ents ideas etc' • P#od ct $ana)e$ent $a& (e defined as a set of decisions #elated to t%e selection and #e$o!al of "#od cts f#o$ t%e #etaile#:s "o#tfolio.t $ean an&t%in) sold and " #c%ased in a #etail t#ansaction' • It co ld constit te )oods o# se#!ices. alon) *it% #elated $a#-et anal&sis' • P#od ct is c#itical to t%e s ccess of a #etail ( siness' • P#od ct $ana)e$ent (& t%e #etail fi#$ is c#itical to t%e satisfaction of t%e cons $e# needs' Selection of t%e "#od ct is desi)ned to $eet so$e n$et needs of t%e cons $e#' • P#od ct $ana)e$ent is also an i$"le$entation of t%e se)$entation st#ate)& of t%e #etaile# *%o atte$"ts to att#act t%e ta#)et se)$ent t%#o )% "#od ct "#ofile and "#icin) st#ate)ies' .

t#ends in t%e "#od ct cate)o#& etc' • P#od ct "e#fo#$ance #e!ie* tili. 8 alit& #e"o#ts. life c&cle of t%e "#od cts.THE PRODUCT SELECTION PROCESS • It in!ol!es a #e!ie* of t%e "e#fo#$ance of t%e e.istin) "#od ct #an)e' • A #etaile# is #e8 i#ed to conside# !a#io s iss es #elated to t%e selection of t%e "#od ct to (e #etailed' • T%ese #elate to t%e t&"e of "#od cts to (e #etailed. cons $e# #esea#c% etc' • T%ese tools a#e sed #e) la#l& (& #etaile#s as t%e& "ossess $ost of s c% info#$ation a(o t eac% "#od ct' .es info#$ation collected f#o$ !a#io s so #ces li-e sales #e"o#ts.

fi!e a#e #etail (#ands' T%e -e& iss es in #etail (#andin) a#e> • <#and $ana)e$ent of t%e #etail o tlet.<RAND 0ANAGE0ENT AND RETAILING • Of t%e to" ten st#on)est (#ands in t%e *o#ld."e#ience' • A #etaile#:s (#and is !al a(le since it en%ances #eac% and end #ance *it% t%e cons $e#' • In $an& cases LSTORE: as a (#and is st#on)e# t%an t%e L<RANDS: *it%in t%e sto#e' • Location cont#i( tes to t%e (#and "e#ce"tion in te#$s of t%e (#and i$a)e of t%e s%o""in) cent#e itself' . • Decidin) *%et%e# o# not to o"t fo# t%e st#ate)& of self o*n (#andin)' A st#on) #etail (#and and a st#on) "#i!ate la(el st#ate)& can (e an effecti!e tool to diffe#entiate t%e sto#es and t%e s%o""in) e.

and cont#ol of $e#c%andise in!est$ents of a #etail o"e#ation' 0e#c%andise "lannin) in!ol!es o(tainin) t%e $e#c%andise *ell in ad!ance of t%e sellin) season' 0e#c%andise cont#ol in!ol!es desi)nin) t%e "olicies and "#oced #es in o#de# to dete#$ine *%et%e# t%e stated )oals %a!e (een ac%ie!ed' . and 8 antit& to (e " #c%ased' • 0e#c%andise 0ana)e$ent is t%e "#ocess (& *%ic% a #etaile# atte$"ts to offe# t%e #i)%t 8 antit& of t%e #i)%t "#od ct at t%e #i)%t "lace and ti$e *%ile $eetin) t%e fi#$s financial )oals' • It is t%e anal&sis. "#oc #e$ent. "lannin).0ERCHANDISE 0ANAGE0ENT • T%e "#i$a#& f nction of #etailin) is to sell $e#c%andise t%e#e(& it is !e#& i$"o#tant to decide t%e $e#c%andise $i. %andlin).

"ected sales fo# a "a#tic la# "#od ct' • 0e#c%andise ( d)et is t%e financial tool fo# cont#ollin) a #etaile#:s in!ento#& in!est$ent' . "#od ct ite$s. $ana)e$ent co!e#s t%e decisions li-e $e#c%andise !a#iet&.0ERCHANDISE 0G0T99999 • T%e 0e#c%andise $i. asso#t$ent and s ""o#t' • It leads to an a""#o"#iate co$(ination of "#od ct lines. #e"#esents t%e f ll #an)e of $i.t #es of "#od cts *%ic% a #etaile# offe#s to its ta#)et c sto$e#s' 0e#c%andise $i. and "#od ct nits' 0e#c%andise asso#t$ent #efe#s to t%e n $(e# of diffe#ent "#od ct ite$s t%e #etaile# stoc-s *it%in a "a#tic la# "#od ct line' • 0e#c%andise s ""o#t deals *it% "lannin) and cont#ol of t%e n $(e# of nits t%e #etaile# s%o ld %a!e on %and to $eet t%e e.

offe#ed' • 0e#c%andise $ st (e in season. of t%at "a#tic la# #etail a#ea' . t%e #i)%t st&le.0ERCHANDISE PLANNING IN UNITS • T%e $ost i$"o#tant co$"onent of $e#c%andise "lannin) is stoc. t%e #i)%t colo#. t%e #i)%t si.e #etail ( sinesses acco#din) to t%ei# $e#c%andise $i. #i)%t fa(#ic. t%e #i)%t $odel.e. *%ic% d#i!es t%e $e#c%andise $i. #i)%t (#and and so on' • +#o$ t%e "oint of !ie* of t%e s%o""in) cent#e it is t%e tenant $i.-ee"in) nit "lan' • C sto$e#s cate)o#i.

ed secto# a!ail of an effecti!e (a#)ainin) "osition a)ainst s ""lie#s and en=o& li(e#al s ""o#t in $a-in) "a&$ents' • 0ost local (#ands = st "lace t%ei# "#od cts *it% s$all #etaile#s. (#eadt% and de"t%' • Retail o tlets in toda& o#)ani.> • < d)eta#& const#aint7T%e #etaile# %as to (alance t%e #eso #ces and t%e o"ti$al $e#c%andise $i.CONSTRAINING +ACTORS • T%e#e a#e fo # const#ainin) facto#s t%at infl ence t%e desi)n of t%e o"ti$al $e#c%andise $i. t%is "#o!ides t%e$ *it% f#ee s"ace and )ood*ill of t%e #etaile#s' .' T%e#e #a#el& *ill (e eno )% financial #eso #ces to inco#"o#ate all t%#ee di$ensions of !a#iet&.

in t%e sto#e onl&' .CONSTRAINTS999999 • Sellin) s"ace const#aint7S"ace a!aila(le to a #etaile# is #elati!el& fi. alon) *it% t%e s%elf s"ace. *%ile decidin) a(o t t%e $e#c%andise o#de#' • 0ost of t%e s$all )#oce#& and d #a(le #etaile#s do not %a!e *a#e%o se s ""o#t.ed and $ st #et #n a "#ofit' If !a#iet& is to (e st#essed eno )% e$"t& s"ace is needed to se"a#ate t%e distinct $e#c%andise lines' • A #etaile# %as to conside# a(o t t%e *a#e%o se s"ace. t%e& %a!e to stoc.

CONSTRAINTS99999 • T #no!e# const#aint7T #no!e# is an e. s%o ld %a!e t%e "otential to )ene#ate %i)% sales t #no!e#' .t#e$el& i$"o#tant facto# in ( &in) and sellin) $e#c%andise "#ofita(l&' T #no!e# is t%e #es lt of intelli)ent ( &in) (ased on so nd asso#t$ent "lannin) and #ealistic esti$ation' • I$"#o!in) t #no!e# is one of t%e -e& *a&s to i$"#o!e "#ofit' T%e#efo#e t%e #etaile#s $e#c%andise $i.

' • Retaile#s %a!e to conside# t%e co$"etiti!e en!i#on$ent and co$"etiti!e di$ensions "#e!ailin) in t%e t#adin) a#ea' .CONSTRAINTS999999 • 0a#-et en!i#on$ent const#aints7It #efe#s to t%e li$itation on acco nt of t%e ta#)et $a#-et #esidin) in t%e a#ea *it%in t%e *al-in) o# s%o#t ti$e distance to t%e sto#e' • Ta#)et $a#-et "#efe#ences and taste di#ects t%e de!elo"$ent of o"ti$al $e#c%andise $i.

)asoline and cons $e# d #a(les f#o$ co$"an& o*ned sto#es' 0an fact #e#s no#$all& %a!e a sales office attac%ed to a "#od ction nit o# in a con!enient location fo# t%e #etail c sto$e#s' • In se$i #(an to*ns t%e $an fact #e#s a""#oac% t%e #etaile#s to "#o!ide t%e #e8 i#ed $e#c%andise at t%ei# s%o"s di#ectl&.T/PES O+ SUPPLIERS • 0an fact #e#s and "#i$a#& "#od ce#s7T%is cate)o#& sells ca#s. t*o *%eele#s. local $ade soa"s. s c% as (#ead. %andic#afts etc' .

T/PES999'' • W%olesale#s7T%e& acce"t s$all o#de#s f#o$ #etaile#s' T%e& ta-e o*ne#s%i" of t%e )oods (et*een t%e "#od ce#s and t%e #etaile#s' T%e& s all& $a-e "#ofit f#o$ t%e $e#c%andise t%e& sell to t%e #etaile#s' • In t%e Indian conte.t t%e #etaile#s "#efe# to deal *it% t%e *%olesale#s dealin) in a !a#iet& of "#od cts as t%e& can " #c%ase $ost of t%ei# $e#c%andise f#o$ one s%o"' .

T/PES99999' • A)ents7T%e& "#o!ide t%e " #c%asin) and deli!e#& facilit& to t%e #etaile#s a)ainst ne)otiated co$$ issions on t%e "e#centa)e of t%e total !al e' T%is is a !e#& co$$on so #ce to t%e #etaile#s in t%e se$iC #(an a#eas o# in $a=o# t#adin) a#eas' A)ents a#e #es"onsi(le fo# t%e safe t#ans"o#t and deli!e#& of )oods' • Ot%e# #etaile#s7He#e t%e cate)o#& co$"#ises of t%ose #etaile#s *%o o"e#ate on a la#)e# scale' T%e& cate# to t%e needs of t%e i$$ediate cons $e# alon) *it% t%e s$all #etaile#s' .

a #etaile# is )ene#all& inte#ested in t%e assess$ent of a s ""lie#:s ca"acit& to deli!e# o#de#ed )oods in ti$e as "e# t%e s"ecifications' • <' se#!ice7T%is enco$"asses all t%ose facilities and s ""o#t e.CRITERIA +OR SELECTION O+ SUPPLIERS • A s ""lie#:s initial assess$ent is $ade acco#din) to %is a(ilit& to satisf& #etaile#s in fo # $ain a#eas i'e' Deli!e#&.tended (& t%e s ""lie# to add !al e to t%e )oods o# se#!ices' It incl des "#e and "ost sales se#!ices (& t%e s ""lie#' . "#od ct #an)e and 8 alit&' • A' deli!e#&7In o#de# to a!oid sales loss. se#!ice. "#ice.

(enc%$a#-s etc *ill (e conside#ed' • P#ice7Retaile#s *ill al*a&s %a!e #elati!e assess$ent of t%e diffe#ent s ""lie#s *%ile decidin) t%e " #c%ase' Retaile#s *ill also e!al ate t%e offe# f#o$ t%e "e#s"ecti!e of a cons $e# in te#$s of !al e fo# $one& and consistent "#ice "olic&' ."e#tise.CRITERIA +OR SELECTION9999' • P#od ct #an)e and 8 alit&7Retaile#s *ill assess t%e "#od ct #an)e a!aila(le *it% t%e s ""lie# and t%e 8 alit& standa#d $aintained *%ile $an fact #in) and deli!e#in)' Ce#tain "a#a$ete#s li-e tec%nical ca"a(ilit& desi)n e.

es )#o "in) of "#od cts into s$all nits so as to $eet cons $e# needs' • Toda& t%e #ele!ance of cate)o#& $ana)e$ent is d#i!en (& t%e e$e#)ence of $ lti"le n $(e# of (#ands in eac% "#od ct cate)o#&' .tent' • Cate)o#& $ana)e$ent is t%e "#ocess of $ana)in) a #etail ( siness *it% t%e o(=ecti!e of $a. ca-es.CATEGOR/ 0ANAGE0ENT • A Cate)o#& is t%e (asic nit of anal&sis fo# $a-in) $e#c%andisin) decisions' P#od cts a#e nat #all& )#o "ed into si$ila# cons $e# taste "#efe#ences and "#od ct c%a#acte#istics li-e salt& snac-s.i$i. is desi)ned on si$ila# lines to a )#eat e. "ast#& and coo-ies etc' As t%e& en=o& si$ila# c%a#acte#istics #etail $a#-etin) $i.in) t%e sales and "#ofits of a cate)o#& #at%e# t%an t%e "e#fo#$ance of indi!id als (#ands o# $odels' It s&ste$ati.

CATEGOR/ 0ANAGE0ENT9999' • Ad!anta)es of cate)o#& $ana)e$ent> • Inc#eased sales7Use of to" sellin) "#od cts inc#eases sales "e# t#ansaction' • Red ced In!ento#& In!est$ent70en (ased " #c%asin) #ed ces t%e in!ento#& and %andlin) costs' • I$"#o!ed Ro te and Wa#e%o se efficienc&7 Ro te $e#c%andisin) and "#od ct selection is si$"le# and co$"a#ati!el& $o#e efficient' .

0ERCHANDISE 0G0T PLANNING IN VARIOUS RETAIL SEG0ENTS • S"ecialt& Retaile#s7T%ese )oods a#e t%ose fo# *%ic% c sto$e#s %a!e a "#econcei!ed need and fo# *%ic% t%e& $a-e an effo#t to co$e to t%e s"ecialt& sto#e to " #c%ase' In t%e case of s"ecialt& #etaile#s t%e $e#c%andise "lannin) s&ste$ #e8 i#es %i)% de)#ee of s&ne#)& *it% t%e o#de#in) s&ste$ in "lace' T%ese %a!e led t%e #etaile#s to #et%in• G#oce#& and food #etaile#s7T%e& a#e (asicall& -no*n as con!enience )oods' It %as (een o(se#!ed t%at cons $e#s " t a $ini$ $ a$o nt of t%o )%t into t%e " #c%ase of t%ese )oods' E')' toot%"aste. e))s' . (#ead.

lines etc' . *%ic% in t #n is t%e la#)est in!est$ent fo# an& #etaile#' He#e t%e (est $e#c%andise "e#fo#$ance $eas #e is )#oss $a#)in #et #n on in!ento#&?G0ROI@'It is sed to e!al ate and cont#ol t%e "e#fo#$ances of t%e $e#c%andise. cate)o#&. !endo#.+INANCIAL O<DECTIVES O+ 0ERCHANDISING • 0e#c%andise "lannin) consists of esta(lis%in) o(=ecti!es and de!isin) "lans fo# o(tainin) t%ese o(=ecti!es' T%e o(=ecti!es #an)e f#o$ t%e co#"o#ate st#ate)ic o(=ecti!es to t%e $ic#o le!el o(=ecti!es #e)a#din) t%e $e#c%andise asso#t$ent. stoc-in). and #eCo#de#' • 0e#c%andise $ana)e$ent in!ol!es decisions #elated to in!ento#&.

ne* a##i!als and "oo# "e#fo#$ance of a "a#tic la# $e#c%andise' . #elations%i" *it% !endo#.EVALUATING 0ERCHANDISE PER+OR0ANCE • Retaile#s s all& conf#ont sit ations *%e#e t%e& %a!e to #e!ise !a#io s !endo#s. de"a#t$ents d #in) $e#c%andise $ana)e$ent' T%ese decisions $a& (e (eca se of c%an)es in cons $e# "#efe#ences.

ed Vs Uno#)ani."ectation and "e#fo#$ance Lo&alt& P#o)#a$$es Classification of Lo&alt& P#o)#a$$es • Secto# s"ecific lo&alt& P#o)#a$$es • 0ana)in) Lo&alt& P#o)#a$$es .UNIT 1 CHAPTER M RELATIONSHIP 0ARAETING IN RETAILING • CHAPTER HIGHLIGHTS> • Int#od ction • D#i!e#s of #elational st#ate)ies in #etailin) • T%e e!ol tion of #elations%i" $a#-etin) • Relations%i" $a#-etin) st#ate)ies in #etailin) • Relations%i" $a#-etin) in t%e o#)ani.ed #etail secto#' • C sto$e# se#!ice in Retailin) • C sto$e# se#!ice70ana)in) )a"s (et*een e.

c sto$e# #etention.ec tion of #etail st#ate)&' • T%e inti$ate nat #e of t%e #elations%i" t%e ind st#& s%a#es *it% t%e lti$ate c sto$e# s ))ests t%at t%e close# t%e #etaile#s )et to t%e c sto$e#s t%e (ette# t%e& can "#o!ide t%e se#!ices to t%e$' . $aintainin) s ccessf l #elational e.c%an)es' Relations%i" $a#-etin) incl des se#!ice 8 alit&. iss es #elated to inte#"e#sonal and social inte#action' • Relations%i" $a#-etin) is i$"le$ented t%#o )% !a#io s co$"onents li-e #e*a#ds. se#!ices $a#-etin). c sto$e# se#!ices and in!ol!in) of c sto$e#s in "lannin) and e.INTRODUCTION • Relations%i" $a#-etin) incl des all $a#-etin) acti!ities di#ected to*a#ds esta(lis%in) de!elo"in).

*e(sites.EVOLUTION O+ RELATIONSHIP 0ARAETING • C sto$e# #elations%i" $a#-etin) CR0 %ad its o#i)in in t*o n#elated "laces' • One *as U'S' *%e#e it *as d#i!en (& tec%nolo)&' Unde# t%e di#ection of $a#-ete#s info#$ation tec%nolo)& *as de!elo"ed to inc#ease t%e efficienc& of sellin) *%at t%e co$"an& $a-es' T%is ca$e to (e -no*n as data(ase $a#-etin)' S&ste$s li-e call cente#s. c sto$e# se#!ice s ""o#t tea$s ca$e " to $ana)e #elations *it% c sto$e#s' • T%e second "lace *%e#e t%e CR0 conce"t de!elo"ed *as in ( siness to ( siness $a#-etin) in Scandina!ia and no#t%e#n E #o"e' He#e t%e e$"%asis is on nde#standin) c sto$e# needs and t%en sol!in) "#o(le$s' .

ation (enefits • S"ecial t#eat$ent (enefits • Re*a#ds • Co$$ nication (enefits' .RELATIONSHIP 0ARAETING STRATEGIES IN RETAILING • T%ese st#ate)ies #efe# to an& effo#t t%at is acti!el& $ade (& t%e selle# to*a#ds a ( &e# and is intended to cont#i( te to t%e ( &e#s c sto$e# !al e a(o!e and (e&ond t%e co#e "#od ct' T%ese incl de t%e follo*in) st#ate)ies> • Pe#sonali.

RELATIONSHIP 0ARAETING IN THE ORGANIFED Vs UNORGANIFED SECTOR • <#oadl& t%e o#)ani.ed se#!ices to t%ei# c sto$e#s' In $ost cases t%e& %a!e a *ide #an)e of $e#c%andise stoc-ed *it% t%e$ so t%at t%e c sto$e#s can %a!e t%ei# "ic-' T%ese #etaile#s %a!e a *ide #eac% and cate# to c sto$e#s of a *ide a#ea' T%e no#)ani.ed se#!ices to t%ei# c sto$e#s' .ed #etaile#s co$"#ise t%e -i#ana sto#es located in nei)%(o#%ood a#eas' T%ese sto#es %a!e a li$ited #eac% in t%e sense t%at "eo"le li!in) in a "a#tic la# localit& !isit sto#es in t%ei# o*n a#ea onl&' T%e USP of t%ese sto#es is t%e locational con!enience t%e& "#o!ide to t%ei# c sto$e#s' T%e& "#o!ide c sto$i.ed secto# is di!ided into t*o cate)o#ies in sto#e #etaile#s and non sto#e #etaile#s' <ot% t%ese "#o!ide !a#io s standa#di.

e#cised' C sto$e# se#!ice #efe#s to t%e #i)%tf l (lend of acti!ities in!ol!in) all a#eas of #etail ( siness' It "#o!ides ti$e and "lace tilit& fo# t%e c sto$e#' • T%e "#o!ision of 8 alit& c sto$e# se#!ice in!ol!es an nde#standin) of *%at a c sto$e# *ants and e!ent all& ( &s and dete#$inin) %o* additional !al e can (e added to t%e "#od ct (ein) offe#ed' . c sto$e# se#!ice. and 8 alit& into close# ali)n$ent' • N alit& of t%e "#od ct o# se#!ice is a $ st as c sto$e#s *ill not acce"t infe#io# 8 alit& "#od ct' Wit% "oo# 8 alit& co#e "#od cts )ood #elations%i" $a#-etin) cannot (e e.CUSTO0ER SERVICE IN RETAILING • N alit& and c sto$e# se#!ice a#e t%e -e& ele$ents in t%is #elations%i"' T%is *ill ens #e t%at t%e c sto$e#s st#on)l& (elie!e t%at t%e #etaile# offe#s )ood !al e fo# $one&' • Relations%i" $a#-etin) (elie!es in (#in)in) $a#-etin).

CUSTO0ER SERVICE70ANAGING GAPS • T%e #etaile#s need to #ed ce t%e )a" (et*een t%e e."ectation of t%e c sto$e# and t%e "e#fo#$ance of t%e "#od ct' T%e fo # $et%ods *%ic% c sto$e#s i$"l& to #ate t%e "#od ct a#e> • Ano*led)e • Standa#ds • Deli!e#& • Co$$ nication .

and co$$ nicate *it% lo&al c sto$e#s' • Lo&al c sto$e#s a#e *illin) to "a& $o#e fo# a )i!en ( ndle of offe#in)s7 C sto$e#s *%o stic."ect and )et so$e tan)i(le (enefits fo# t%ei# lo&alt&' . $aintain. to att#act.to one #etaile# do so (eca se t%e cost of s*itc%in) to anot%e# s ""lie# is too %i)%' T%e& a#e t%e#efo#e *illin) to "a& a %i)%e# "#ice " to a "oint to a!oid $a-in) a s*itc%' He#e t%e c sto$e#s e.LO/ALT/ PROGRA00ES • Retaile#s foc s on lo&alt& "#o)#a$$es since it is (elie!ed t%at > • Lo&alt& c sto$e#s a#e c%ea"e# to se#!e7He#e #etaile#s a#e not #e8 i#ed to in!est.

ation of a "a#tic la# #etail sto#e' • T%e *o#d of $o t% $a#-etin) is !e#& effecti!e and $an& sto#es = stif& t%ei# in!est$ents in lo&alt& "#o)#a$$es (& see-in) "#ofits not so $ c% f#o$ t%e lo&alt& c sto$e#s as f#o$ t%e ne* c sto$e#s t%e lo&al ones (#in)' .LO/ALT/ PROGRA00ES • T%e& act as effecti!e $a#-ete#s fo# t%e sto#es offe#in)s7T%e *o#d of $o t% $a#-etin) is !e#& effecti!e and lo&al c sto$e#s a#e t%e st#on)est ad!ocates fo# "at#oni.

0 lti "a#tne# P#o)#a$$es7Tesco:s cl ( ca#d is an e.CLASSI+ICATION O+ LO/ALT/ PROGRA00ES • T%e& a#e classified as follo*s> • 0 lti secto# "#o)#a$$es7T%e#e a#e n"a#tne#ed and "a#tne#ed lo&alt& "#o)#a$$es' • Sin)le o"e#ato#. National T&#es. Alde#s etc' • T# e Coalition "#o)#a$$es7T%e "#o)#a$$e $ana)e$ent is inde"endent of an& of t%e "a#tne#s' T%e "a#tne#s %a!e cont#acts *it% t%e o"e#ato#s of t%e "#o)#a$$e to #edee$ t%e c ##enc& of t%e "#o)#a$$e' T%e& %a!e access to data %a#!ested (& t%e "#o)#a$$e t%#o )% its o"e#ato#' .a$"le of a sin)le o"e#ato# "#o)#a$$e' Ho*e!e# t%e cl ( ca#d %olde#s can collect *%en t%e& ( & f#o$ !a#io s "a#tne#s li-e 0a##iott.

and $o(ile cas% s&ste$s' .SECTOR SPECI+IC LO/ALT/ PROGRA00ES • S "e#$a#-ets and Gene#al Retail7S "e#$a#-ets face intense co$"etition not onl& f#o$ ot%e# s "e#$a#-ets ( t also f#o$ s "e#cent#es and con!enience sto#es' 0ost #etaile#s acce"t t%at t%e& need to -no* $o#e a(o t t%ei# c sto$e#s and t%at t%e -no*led)e s%o ld (e cent#all& #eco#ded so t%at it is a!aila(le to e$"lo&ees *%en t%e& need it' • Teleco$7T%e o!e#all teleco$ $a#-et a#o nd t%e *o#ld %as (een !e#& !olatile *it% non teleco$ fi#$s =oinin) t%e (attle fo# cons $e#s' +i#$s in t%e $o(ile teleco$ secto#s %a!e (een di!e#tin) (e&ond co$$ nications into t%e financial se#!ices secto# t%#o )% $o(ile "a&$ents.

SECTOR SPECI+IC LO/ALT/ PROGRA00ES • T#a!el and Ente#tain$ent7Ai#lines. s$all as *ell as la#)e. of (ot% -inds of "#o"e#ties i'e' ( siness and leis #e. and "#iced in diffe#ent #an)es to allo* t%ei# c sto$e#s to #edee$ t%e "oints as "e# t%ei# dis"osition' An i$"o#tant facto# to (e conside#ed is t%e se# f#iendliness and co$$ nication of t%e "#o)#a$$e' It s%o ld (e accessi(le and *ell ad$iniste#ed' . %otels and e!en ca# #ental fi#$s %a!e foc sed on i$"#o!in) c sto$e# se#!ice and offe#in) $o#e #ele!ant o"tions to enco #a)e c sto$e#s to ( & $o#e' • Hos"italit& Ind st#&7A %os"italit& c%ain $ st %a!e a $i.

LO/ALT/ PROGRA00ES IN THE +RANCHISE RETAIL +OR0AT • It faces a distinct set of c%allen)es in t%e s ccessf l la nc% and o"e#ation of a lo&alt& "#o)#a$$e' + ndin) iss es #elatin) s"ecificall& to lo&alt& "#o)#a$$es (eco$e a c%allen)e and a const#aint fo# t%ei# s ccessf l i$"le$entation' In $ost f#anc%ise a)#ee$ents f#anc%isees "a& a fee to t%e f#anc%iso#' T%is fee s ""o#ts $ass $a#-etin) acti!ities' In t%e sa$e $anne# t%e efficient $ana)e$ent of t%e lo&alt& "#o)#a$$e de"ends on t%e f#anc%iso#' .