THE RETAIL CHAMPION (10 STEPS TO RETAIL SUCCESS)

By Clare Rayner

Group 1
Aditya Waghela 25
Sanika Raut 62
Mehul Bari 81

Group 2
Simran Jain 100
Komal Mali 112
Ronak Mehta115

PGDM MARKETING

Mumbai Education Trust Complex,

Bandra Reclamation, Bandra (West), Mumbai – 400050
SR No. Chapter Name PG No.
1 Goal & Mission 3

1
 2 Positioning 5
3 Ideal Customer 7
4 Range Planning 8
5 Pricing & promotions 9
6 Channel & Location 13
7 Customer Engagement 15
8 Supply Chain 17
9 Planning & Controlling 18
10 Back Office (HR, Legal, Fi & IT) 19
INDEX

Chapter 1: GOAL & MISSION

PERSONAL GOAL ≠ BUSINESS GOAL

“A business owner with a business but no personal goal is like someone with a map
but no idea where they are going”

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Defining your Personal Goal

What is my personal goal?

How does that connect to my business?

What made me decide to embark on this journey?

What is my destination & how will I know when I've arrived there?

Example: “I want to sell the business in 5 years for 1 million pounds, this will be my
retirement nest egg”

Defining your Business Goal

“Set of measurable achievements that will make you to attain your personal goal”

PERSONAL BUSINESS GOAL

GOAL

Business Goal: “To grow to be a chain of 10 stores, with a strong

transactional website in 5 years’ time in order to then realize a sales value of 1
million pounds”

Defining the Mission

“A mission statement will tell anyone, in about 50 words, exactly what your business
does.”

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 MISSION

Chapter 2: POSITIONING

“Positioning is how your brand/business makes ‘promises’ to your customers, either

explicit or implied, and as a result of those promises you have the ability to
disappoint or to delight your customers”

Underpricing & Overpricing

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 Don’t compete on price, compete on service i.e. Value addition

Positioning is based on an assessment of where you ‘sit’ relative to your

competition with regard to four key areas:

Presentati
Product Price Service
on

Q1. How did the customer know brand they would prefer?
Q2. Without prior experience of all four on the route in question, what did they base
their opinion on?

“The answer lies in positioning”

Breaking down the 4 elements of positioning

PRODUCT

PRICE 5
 PRESENTATION

SERVICE

Chapter 3: IDEAL CUSTOMER

• Need to know your customer as an Ideal Old Friend

• So that you can describe him as much as possible, because your ideal customer is
your business’s best friend
• There can be a possibility that there is more than one Idea customer for your
business

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Let’s take an example
• The morning Customer
• The Daytime Customer
• The Evening Customer

“But I want more Customer”

Depth Vs Width
Width: Choices across different categories
Depth: Great deal of choice within category

Chapter 4: RANGE PLANNING

Range Construction
• How many products can you present in store?
• What category your ideal customers expects you to see?
• What is your forecast sales mix by category?

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 • So therefore what is your range construction?
Common Mistakes
• The retailers buy what they like without having customers in mind
• The retailer buys a product at a price that doesn’t allow a sufficient mark up
• The retailers buy certain products that too large or too small in terms of
quantity
• All products are of equal ladder and because of that there is no comparison

Example of Range plan

Chapter 5: PRICING AND PROMOTIONS

Price Architecture: It should include the following 3 elements

Price Elasticity

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Price Ladder
 Assortment Elasticity

Price Elasticity
Relationship between price and of an item and its demand Helps to influence the
amount of volume that can be sold
Price Ladder
Stepping up of price points within a selection of products

Good Better Best

How to implement an effective price ladder?

• Set the price range the ideal customer would be willing to pay
• The steps on the ladder should be equally spaced and provide increasing per cent
margin
• Merchandising the products
• Well-defined product packaging and/or POS

Assortment Elasticity
Items from a range that are visually presented for sale to the customer through a
channel
Price points within an assortment influence the behavior of customers

Example:

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A cheese grater at price points of ₹99, ₹129, ₹189, ₹229
Ways to increase cash margin:

Reduce price to increase

volumes

Influence customers up the

price ladder

Importance of Promotions
• Draw attention to the stores
• Drive footfall
• Increase sales
• Types of Promotions

Planned
Unplanned

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Examples of Promotion mechanics

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 Chapter 6: Multi Channel Retailing

STORY OF THE CHAPTER

What is Multi Channel Retailing?
- Multi Channel Retailing is when a company provides numerous ways for customers
to purchase goods and services

Why is it Important?
- Be where your customers are!!
- Be where your competitors are!!

Why is Multi-channel relevant to my retail business?

• Enable your customer to interact with your business via various channels
• Greater loyalty from customer base
• Give customers shop in-store, online, phone, mail, catalogues etc.
• Driving sales
• Customers don't turn to competitor’s products

Necessary investment to BE a Multi-channel?

• Logistics infrastructure:
- Pick, Store, Pack, Ship of products
• Contact centre:
- 24/7 customer queries handling
• System infrastructure:

- EPOS, loyalty system

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 • Resource and training:
- Deployment of people

KEY SHARING

Retailing options to BE for your customers:

- Stores (physical outlets)
- E-commerce (selling products online)
- Party plans (commission-only agent for selling products)
- Consumer events (fairs and events)
- Catalogues (designed flyers)
- Clearance channels (consumers expect BIG discounts from retailers, manufacturers)

PRACTICAL IMPLEMENTATION

• It all starts when YOU create a list of what is required, essentially an ACTION PLAN
• RELEVANT Vs IMPORTANT

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 Chapter 7: CUSTOMER ENGAGEMENT

STORY OF THE CHAPTER

• Customer Engagement here highlights the importance of internet and focuses on
selling online

• Importance of 4 Questions:
- Do you know what attracted your existing customers?
- Do you measure customer conversion rates through each of your channels?
- Do you have a process to increase customer retention and customer loyalty?
- Do you encourage happy customers to recommend your business to others?

KEY SHARING
The 4 step cycle to Customer Engagement:
- Attract
- Convert
- Retain
- Recommend

MATCH TO YOUR CUSTOMER NEEDS

• Thinking about consumers by:
- Attract: Having good reviews about the product
- Convert: Pricing and quality proposition
- Retain: Communication and caring, value for money
- Recommend: Sharing of experiences with close ones

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 Chapter 8- SUPPLY CHAIN

KEY LEARNINGS:
• Managing supply chain means delivering all the promises that you, your suppliers
and any third party involved in the process have made
• Supply chain management is a very background process
• In retail, the supply chain is very noticeable when it fails

INSIGHTS
3 main areas of concern in the process of supply chain management: -
STEP 1- SELECTING A SUPPLIER
• Careful analysis goes behind choosing a suitable supplier. Such a supplier should
be selected who match your requirements the most:
• Best quotes
• In sync with your objectives and goals
• Timely delivery of the order
• Stocking requirements
STEP 2- MANAGING THE RELATIONSHIP
It consists of 3 main aspects:
• Retailer supplier collaboration
• Critical path tracking
• Supplier negotiations- cost price, delivery charges, minimum order quantity

STEP 3- MANAGING PHYSICAL LOGISTICS

It consists of 4 major areas:
1. Inbound transport 2. Storage 3. Outbound distribution 4. Reverse logistics

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 Chapter 9- PLANNING AND CONTROLLING

KEY LEARNINGS
- Planning the business and then monitoring it in order to stay in control is the
essence of this chapter
IMPORTANCE OF PLANNING:
- Managing by exception

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Apart from the before mentioned plans, other important plans to have in place are:
• Cash flow plan
• Ratio planning for fashion; or any other product areas with a size mix
• EPOS
• Performance analysis

KEY SHARING
Back office
“If you don’t get back office right a considerable amount of your time will be
consumed sorting it out”

STORY
Managing back office is one of the enablers for growth
1. Human Resources
2. Legal
3. Finance

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4. IT
5. Outsourcing vs in-house

KEY INSIGHT
Non-core areas to your retail operations plays hugely important role to protect your
brand like a well-oiled machine

IMPLEMENTATION
• Planning the organizational structure, managing the resources and making sure
you have clear policies in place
• Making valid commercial agreements to avoid risk and penalty
• Ensuring all the financial reporting obligations and taxation requirements
• Delivering relevant and appropriate business information and transactional
systems

CONCLUSION
• Avoid being a victim of economic condition and shift in consumer behavior you
need to constantly re-valuate your business model and revise it where
appropriate
• Assign mentor or advisor to keep you on track
• You will need to regularly review your system

THANK YOU

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