Merchandising and Supply Chain Management - Unit 4 - Retail Product Management

Retail product management
Unit 4
Retail Product Management
Table of contents
4.1 Introduction
Learning Objectives
4.2 Concept of retail product management
4.2.1 Components of retail product management
Self Assessment Questions
4.3 Role of product management in retail
4.3.1 Strategic role of product management
4.3.2 Strategic role of product range
4.3.3 Positioning of price range
4.4 Scope of retail product management
4.5 Management of retail product life cycle
4.5.1 Product life cycle management
4.5.2 Product life cycle and its stages
4.5.3 Retail product life cycle
4.6 Summary
4.7 Glossary
4.8 Case Study
4.9 Terminal Questions
4.10 Answer Keys
A. Self Assessments Questions
B. Terminal Questions
4.11 Suggested Books and e-References
Conceptual Map
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Retail Product Management Unit 4
4.1. INTRODUCTION
A healthy retail company has always put product management at its heart. Traders and
retailers have thrived in the past by providing a better product deal to their consumers
than their competitors; the retail entrepreneur's process is intuitively understanding of
what the retail market would consider to be an advanced product offer. In today's
developed economy retail climate, where the opportunity to exploit truly innovative
products are limited, savvy retailer may build the illusion of inventiveness and innovation
in their product lines by selecting and creating creative product variants.
The risks of taking a unilateral view of product management have been illustrated in recent
retail history. Products being managed for the
STUDY NOTE: benefit of clients; they are managed to produce and
react to customer request, to fulfil current
Retail product management is the customers and to attract new clients. In a serious
process that gives an insight into retail market, it's not difficult to dismiss the close
the operations and practices that
and dynamic relationship that exists between
are used by retailers to obtain the
objectives of their product
merchandise, clients, and the field wherein they
strategy. work.
Purchasers blend actual requirements with individual assumptions and inclinations, so the
store should be viewed as a decent spot to shop, they just be in contact with their clients
and have alluring values. Consumers see their shopping propensities on various levels, and
retailers should move toward their procedure on numerous levels too.
This chapter introduces the idea of product management from a retailer’s viewpoint. It
provides an outline of what retail product management entails, and the way this relates to
other control operations inside a retail enterprise organization.
In the previous chapter we learn about the supply chain synergies, supply chain strategies
and competence on non core business functions.
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LEARNING OBJECTIVES
After studying this chapter, you will be able to:
 Explain the concept of Retail Product Management

 Explain the Role of Product Management in Retailing
 Explain the scope of Retail Product Management
 Discuss the Management of Retail product Lifecycle
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4.2 CONCEPT OF RETAIL PRODUCT MANAGEMENT
The concept of Retail product management

STUDY NOTE: provides an overview of what retail product
management includes and how it relates to
The retail management refers to the other operations of management which are
various processes that help a
there in a retail business organisation. In a
customer to obtain the desired
product from the retail store for its retail organisation there are various levels that
end use. are incorporated with retail product
management.
 The strategic level- In this long term product management objectives are set out
and the contribution of the product range to the overall retail positioning strategy is
established.
 The operational level- In this level those strategic objectives became translated
into processes and operations that are carried out by the product management
teams and at the end of the product management process the product meets its
consumer in the retail outlet.
4.2.1 COMPONENT OF RETAIL PRODUCT MANAGEMENT
The concept of Retail product management focuses on the 2 main components
 The product
A product is defined as a physical good, service, idea, person or place that is capable
of offering the attribute that is necessary for an individual or an organisation and
has to be so satisfying that they are prepared to exchange money, backing or some
other unit of value in order to acquire it. There are four types of products complex
tangible, convenience tangible, information based and services. Different types of
products require specific approaches of product management. The retailers offer
usually physical goods and services.
 The retail product sector / Retailer
The term retail sector has been used to refer to a type of retailer, based principally
on the product offer. The retailer is the editor of the product range and is also the
distributor of small quantities (breaks bulk). Retailer provides the goods to the
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customer at the convenient location and also finances in managing the appropriate
stock.
The main aim of the retailer is to achieve maximum consumer satisfaction by

exceeding the expectations and delivering exceptional services. In the overall
distribution channel retailer is considered as the final link who deals with the
customer directly. The product is purchased in bulk from the wholesaler by the
retailer and then it is sold the customer in small quantities to fulfil their needs. A
variety of merchandise is essentially maintained by a retailer.
SELF ASSESSMENT QUESTIONS
1. What is the use of retail product management?
A. To help customer obtain desired product.

B. To meet demand on timely basis
C. Both A and B
D. None of the above
2. Following is the level of retail product management-
A. Strategic Level
B. Operational Level
C. Both A and B
3. What does the retailers offers to its customers?
A. Money
B. Manufacturing activity
C. Physical goods or services
4. The main aim of retailer is to achieve______________
A. Maximum stocking
B. Minimum cost to customer
C. Maximum profit and minimum customer satisfaction
D. Maximum customer satisfaction
ACTIVITY:
PageSelect
| 5 one retail firm which is located nearby your area and one manufacturing
organization and differentiate them on the basis of following aspects:
 Merchandise
4.3 ROLE OF PRODUCT MANAGEMENT IN RETAIL
The role of retailer within the channel of distribution is to provide an appropriate

selection of products in small quantities to the feasible group of customers through the
stores located closed to them. In fact, till the mid of twentieth century retailers were
known as the ‘stockiest’ of a particular
STUDY NOTE:
product range developed by a
manufacturer. But now the role of retailer
Retailers form the close relationships with has been changed from a passive
the customers (generates loyalty) by distributor to an active intermediate. Now
analysing the customers purchase habit. A a retailer controls the product range and
retailer forms a ‘retail brand identity’ by makes the selection of the products by
providing good services and personal himself.
behavioural relationship with the
customers.
4.3.1 THE STRATEGIC ROLE OF
PRODUCT MANAGEMENT
The retailer has to keep a range of goods that can satisfy the needs and requirements of
the customer who visit their outlet in order to effectively carryout their traditional role in
the distribution channel. The retailers are in the direct contact of the customer in their
stores so they are in the best position to understand their requirements. The retailer have
to keep the track of all their product range in the line according to the changing needs of
the customer weather it is a owner/manager retail concern or it’s a highly sophisticated
complex information system based data generation firm.
Therefore, retailers need to have a good understanding of the product preferences of

their customers and how their needs and desires are changing over the time. It can be a
day or a week or according to seasons throughout the year which is only possible when a
retailer knows who their customers are. The long term changes in the customers
shopping habit should also be timely adapted by the retailer.
The retailer’s contribution to the marketing management process gives a great

opportunity for adding value to the tangible products. The marketing-led organisations
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should also identify and anticipate the customer’s requirements along with fulfilling their
needs.
The retailer offers an amazing product assortment and the environment to the product in
which it is represented to the world. It gives the retailers advantage over the producers of
those products. The producers consider the retailers as the masters of this craft. Mostly
the successful retailer collaborates with the producers and suppliers and pools the
resources to identify and anticipate the customer’s requirements and then provide an
appropriate response to the customers.
Though through the internet and digital marketing, producers or manufacturers are
trying to reach the customers directly, but the retailer is the one who has the best
opportunity as they have knowledge about the customers need. So they use these new
marketing channels for their own advantages.
4.3.2 THE STRATEGIC ROLE OF PRODUCT RANGE
The product range which the retailer offers captures the interest of the customers. The
product range helps the customer to search the appropriate shop for their buying. The
retailer’s business could be specialist such as jewellers or mixed retailers such as super
mart. In a market sector, product range helps the retailer to position himself against the
competitor. The product range may be categorised which –
- Provide limited but extremely specialist products

- Provide high quality products
- Provide strong fashion element
- Provide wide product selection
- Provide value for money to the product range
The product range offers the customer a reason to shop with one retailer rather than
another. The price which the customer is paying must make the customer feel the
shopping worthwhile, or, the product range must give the best value if the price is the
main factor in the purchases. There may be generalist retailers which have a wide variety
of products to cover the wide range of basic customer needs. On the other hand, there
may be retailer with narrow product range, offering certain product category in
substantial depth to meet the specific customer needs.
4.3.3 POSITIONING OF PRODUCT RANGE
Positioning as the word itself suggest, means the individual standing of a retailer in
relation to their competitor as percieved by the customers. Retailers that are engaged in
strategic planning can have a good understanding of how their offers are regarded as
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Retail Product Management
compared to others, the basis on which the offers are measured by the consumers.
Following elements are important in how the customer measures the retailers offer-



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Price
Product mixture
Convenient to use
After sales service
Consumers will be expected to remain stick to one retailer depending upon the choice of
outlet is visited more than the other.

Unit 4
there preference in terms of particular positioning. The product range itself and the way
that products are bought by a consumer are the main reasons why a particular retail
The product range used by a retailer can be classified into general or specialist approach.
There may be generalist retailers which have a wide variety of products to cover the wide
range of basic customer needs. On the other hand, there may be specialised retailer with
narrow product range, offering certain product category in substantial depth to meet the
specific customer needs. The features of generalised retailer and specialist retailer can be
understood with the help of following tabular representation-
The above are two extreme concepts of retailing. Indeed finding an appropriate blend of
product range is a way of achieving a unique retail positioning in the market. Many
companies may begin with some specialised product range but over the years, they may
extend their range substantially. But there exists one danger of losing the core
specialisation in the expansion process of adding new products. This tendency is called
Product Scrambling, which may result in retailer’s offer becoming less meaningful to the
customers.
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Although the positioning of product range is the prime important factor, the price level of
the goods must be the second one. Apart from the related factors like product quality,
after sales service, or selling environment, retailers used the price to mark a presence in
the market as compared to the competitors. Depending up to the approach of the
retailers, one may charge premium price added value and shopping experiences, the may
keep the price low with basic store environment. To create a viable positioning strategy,
pricing is therefore is a valuable tool.
5. What does the strategic role of product management creates

A. Manufacturer – retailer relationship
B. Retailer – customer relationship
C. Manufacturer – customer relationship
6. Which of the following sentence is correct -

A. The producer gives the environment to the product for sales to customer.
B. The retailers assist the marketing management to add value to the product.
C. Both A and B
7. What does the positioning refers to in retail product management?

A. Ranking of the retailer.
B. Standing of product in the retail store.
C. Standing of retailer as perceived by the customer.
8. Generalised retailers provides-

A. Solution to restricted small no. of customers.
B. Solution to large group of people.
C. Both A and B
9. Product scrambling is -
A. Loosing core specialisation in the process of expansion.
B. Removing a product by the retailer from the range.
C. Making loss on a product in retailing.
D. None of the above.
10. Which one of the following can be categorized in specialised product range shop?
A. Big Bazaar
B. Tanishq Jewellers
C. Amazon
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ACTIVITY:
Generalised retailer maintains large variety of products to satisfy more customers’

need as compared to the specialised retailers. The positioning strategy for both
retailers must be different. You are required to suggest positioning strategy that
would suit generalized retailer and specialised retailer.
4.4 SCOPE OF PRODUCT MANAGEMENT IN RETAIL
Retail product management is not practically guaranteeing the accessibility of the best
item assortment in the store. The products are given to the buyers according to their
needs.
The important aspects of a retail product management are:

 The presentation of the product with in the store (display).
 The online display of the product.
 The logic of the layout.
 The relationship between the different types of product.
 The atmosphere created around the product.
STUDY NOTE: The product management in small retail

organisation may be defined into just running the
 Making product available. general store. In this an owner or the manager
 Presenting products directly calls the supplier and place the order for
attractively and their stock for displaying in their stores shelves.
appropriately. But the product management in large retail
 Small retailer: All carried organisations is widespread task, these
out by owner manager. organisations have many different levels of
 Large retailer: Central management and each level contains a team of
buying office. expertise people to manage them.
In case of large retailers, product management is

a strategic process in which a bunch of operational practices and organisational
structures are supported. As the requirements of the customer is changing, the retailer
need to take the growth which is managed by the strategic product management and it
also figures out the market position so that they can appeal to the identified market
groups of consumers. Strategic product management role is to keep the operational cost
as low as possible and to maximise the sales so as to achieve more profitability. It also
makes the realistic assessments about the resources which are available in order to
manage the risks, identify and pursue product/marketing opportunities. In an
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overemphasised retail market launching a new product is really a good way to enhance
and achieve a different retail identity. But to do so cooperate support is must otherwise
launching a new product may fail and your product will left unnoticed.
The various level of management in an organisation are-
 Strategic product management- (directors and vice president)

 Operational product management- (buyers and merchandisers)
 Outlet level product management- (store personnel)
Strategic product management.

 Product opportunities and
objectives.
 Market opportunities and
objectives.
 Sales and profit objectives. Operational product management.
 Resource development.  Product development and selection.
 Business environment auditing.  Sourcing.
 Integrated information systems  Sales forecasting.
planning.  Supply chain management.
 Range planning  Pricing.
 Category management  Space allocation.
 Store profiling.
Outlet level product management.  Visual merchandising.
 Allocate space to merchandise.  Promotions.
 Display merchandise.
 Receive and prepare stock.
 Implement promotions.
 Sell merchandise.
Fig 2: Scope of retail product management
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11. In case of large retail organisation product management involves-
A. Self placement of order and displaying them in shelf.

B. Running a general store.
C. Strategic process involving team of expertise people.
12. Strategic product management is done by –
A. Directors and Vice President

B. Buyers and Merchandisers
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C. Store Personnel
4.5 PRODUCT LIFE CYCLE MANAGEMENT (PLM)
4.5.1 WHAT IS PLM?
Product life cycle management is the incorporation of all the aspects of the product starting
from the formation through the product life cycle to the disposal of the product and its
components. PLM combines the complete vision that an organisation has for maintaining
the overall plans of the products including data, people, software, manufacturing and
marketing.
STUDY NOTE:
There are 3 main elements of the product life cycle
PLM is a platform where all the management.
necessary information related to
the product is found and managed, 1. The information and communication
followed up so that it can be technology- It includes all the necessary unified
available globally at one place. platform, systems, architecture tools and standards
2. The processes – In this all the people’s

organisation and the skills are involved
3. The methods – This includes the procedures practices and the rules.
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There are several different ways in which PLM increases organisations speed in the market.
 It can establish the growth for an infrastructure.

 It increases the value added work which improves the innovation.
 For an effective assortment planning it creates prerequisites.
 It utilizes the store virtualization and configuration to increase product appeal and
consumer experience.
 Based on consumer input and behaviour combined with sales statics it enables the
product-centric decision making.
 By enforcing the usage of brand definition, logos, messaging and other utilization of
templates and workflows it strengthen the branding.
 By performing virtual product qualification in the early development process it
makes a positive impact on decisions related to calendars, cost and quality.
 To reduce the chances of last minute changes and product recall, it integrates the
regulatory compliance and sustainability into the product innovation process.
 It completes all the marketing and transactional processes (order placement,
warehouse management etc.)
4.5.2 WHAT IS PRODUCT LIFE CYCLE (PLC) AND IT’S STAGES?
PLC (product life cycle) is a stage from where every product has to pass on. It involves
introduction of the product into the market, growth, maturity and decline. The sales of the
product depends on how much time a product is spending in the market, the more time it
takes to get through the cycle the more sales it makes. The product life cycle for each
product is different in length of scope and duration, and has its own risks to get through the
introduction phase. It can get rejected or can pass this stage, even though the strategy of
the company remains consistent throughout all the phases.
There are four stages of PLC
Stage 1:
Product development –
In this stage of the cycle the company launches a new product in the market so we can say
that it is the most expensive stage for a company. The market size for the product is really
small as it is new to the customers and retailers. This means the sales of the product at this
stage will be low although the sales will increase later on. If we are launching a product
which already have its competitive products in the market then the cost of things like
research and development, customer testing and the marketing can be very high.
Stage 2:
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Growth –
At this stage the product is now more than an idea or a prototype. Here the product is
manufactured, marketed, and released. Now the competition, distribution and demand of
the product increases rapidly.
Here, the product will get a strong growth in the market and the organisation will start
earning the benefit from the scale of production. Now the profit margins and the overall
profit amount will increase which allows the organisation to invest more money for the
potential growth of the product by doing promotional activities and spending more funds
for advertising of product.
Stage 3:
Maturity –
This is the stage where the product is accepted by the market and is well established now
the product is extensively available in the market, and there is availability of many
competitor products too.
Here, the manufacturer should aim to maintain the market share they have built up with
this product. The manufacturer needs to be very careful while investing the money for
promotional activities as that will not make much impact on the sales as the product has
been already known in the market and having good sales. Now the manufacturers have to
consider for the modifications or improvements of the product at the production level so
that it can give a tough competition to the competitor product present in the market.
Stage 4:
Decline-
At this stage the market of the product will start to shrink. The product is losing its shares
in the market or becoming outdated, this is why it is known as decline stage. It has already
past its point of highest demand and now the demands are decreasing. This might be due to
the customer who need the product have already purchased it (market is becoming
saturated), or can be because the customers wants different type of product with new
features. At this stage manufacturers can try earning profits by producing the product by
less expensive methods and switch to the markets which are cheaper so that the customers
will change.
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Source: Oberlo.com
Fig 3: Stages in product life cycle
Moreover, the average selling price (ASP) of the product is affected by the product life
cycle; the price at which you generally sell your product or services is its average selling
price (ASP). The ASP will be lower when the product will be at its declining stage or there
are more competitors of the product.
4.5.3 PRODUCT LIFE CYCLE MANAGEMENT (PLM) IN RETAIL
In the present situation in order to maintain the brand identity the retail companies has to
adjust rapidly and has to be innovative in shop planning, diversifying assortments and
analysis. However, the leading companies are expanding in number of stores, new
geographical areas and assortment content. This increases challenges with communication
and follow-up within the existing workforce and with the increasing number of suppliers,
who are essential as they may own the relevant product information.
Moreover, requirements of sustainability and the rigidly increasing government

regulations has resulted in more difficult business processes and due to which defined
procedures have to be implemented. Even with the increasing challenges, the retailers are
searching for the new and better business decisions to satisfy their consumers.
The retail company’s experiences shows that the main key needed to meet the business
challenges in the retail industry is to make sure that the innovation process is measurable,
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controlled and efficient. Here, the innovation process is referred to all, from idea to
realization, single product, assortments and campaigns.
13. What is Product Life Cycle Management?
A. Pre determination of the life of a product.

B. Study of all aspects of the product from its formation to disposal.
C. Creating the demand of the product in the market.
D. None of the above.
14. Research and development of the product takes place in which stage of PLC?
A. Introduction
B. Growth
C. Maturity
D. Decline
15. At this stage companies should use more expensive methods of production?
A. Introduction
B. Growth
C. Maturity
D. Decline
16. Which of the following help organisation increase its speed in the market-?
A. Utilising the store virtualisation to increase product appeal and consumer experience.
B. Enforcing the usage of brands and logos.
C. Product centric decision making based on consumer inputs.
D. All of the above.
ACTIVITY:
There are four stages of product life cycle introduction, growth, maturity and
decline. At introduction phase new product is just introduced when the product
is in growth phase it is making its position in market at maturity phase the
product is at its peak and in declining phase the product starts to decline.
Mention one example of FMCG product and explain it’s throughout product
lifecycle.
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4.6. SUMMARY
 The concept of Retail product management provides an overview of what retail

product management includes and how it relates to other operations of
management which are there in a retail business organisation.
 Retail product management have to levels – strategic level and operational level
 There are two main components of Retail product management they are – product
and retail sector/retailer.
 The role of retailer within the channel of distribution is to provide an appropriate
selection of products in small quantities to the feasible group of customers through
the stores located closed to them.
 The product range which the retailer offers captures the interest of the customers.
The product range helps the customer to search the appropriate shop for their
buying. The retailer’s business could be specialist such as jewellers or mixed
retailers such as super mart.
 Positioning as the word itself suggest, means the individual standing of a retailer in
relation to their competitor as percieved by the customers.
 The product range used by a retailer can be classified into general or specialist
approach. There may be generalist retailers which have a wide variety of products
to cover the wide range of basic customer needs. On the other hand, there may be
specialised retailer with narrow product range, offering certain product category in
substantial depth to meet the specific customer needs.
 The various level of management in an organisation are-Strategic product
management- (directors and vice president) Operational product management-
(buyers and merchandisers) Outlet level product management- (store personnel).
 PLM is a platform where all the necessary information related to the product is
found and managed, followed up so that it can be available globally at one place.
 There are 3 main elements of the product life cycle management .The information
and communication technology , The processes and The methods
 PLC (product life cycle) is a stage from where every product has to pass on. It
involves introduction of the product into the market, growth, maturity and decline
 The retail company’s experiences shows that the main key needed to meet the
business challenges in the retail industry is to make sure that the innovation process
is measurable, controlled and efficient.
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4.7. GLOSSARY
 Product - A product is defined as a physical good, service, idea, person or place that
is capable of offering the attribute that is necessary for an individual or an
organisation and has to be so satisfying that they are prepared to exchange money,
backing or some other unit of value in order to acquire it.
 Retail management-The retail management refers to the various processes that

help a customer to obtain the desired product from the retail store for its end use.
 Average selling price-The price at which you generally sell your product or
services is its average selling price (ASP)
 Retailer – Retailer is the one who purchase the goods in bulk from the wholesalers
and sells it directly to the customer for its personal use.
 Merchandising- It is s type of promotional activity that helps the retailer to boost

the sales of their product.
 Sales forecasting- It is the process of estimating the future revenue generation by

predicting the amount of product or services will be sold in the next week, month,
quarter or a year.
 Visual merchandising- visual merchandising is the process in which the purpose is

to maximise the sale of a retail space by using the floor plans, lighting, colour,
display, technology and other elements to attract the customers attention.
 Pricing- Pricing is the part of business’s marketing plan. It is a process in which a

business sets the amount at which it will sell its product and services.
 Range planning- it includes everything from setting the concept, purpose and
direction through to selecting the products and finalising the price.
 Category management- category management is the process of bundling the

similar products into one category, so that it can develop a category purchase
marketing strategy for an individual retail account that best meets the customer’s
needs.
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4.8. CASE STUDY
CASE STUDY:
RETAIL PRODUCT MANAGEMENT
Toy Light Ltd is the leading retailer in toys of all kinds having enormous depth but within a
restricted number of product categories. The company owns stores which are itself like
supermarket of toys, having all international and domestic brands as well as own
alternative brand. The customer shopping here is in multilevel store serving themselves,
along with the friendly sales executives on each row. The prices of the products are kept
generally low, and the own-branded products give the shoppers an opportunity to purchase
the similar products at an affordable price range. Although the company faces seasonal
lows but it keep churning of the good quality products available in priority with huge
investment in logistics which provide support to its pan India stores. The stores are
generally places in retail malls with large speciality retailers of other segment.
Popular Stores Ltd. is another retailer in India with a focus on unique, standalone and high
quality products ranging from party decorations to special presents. The company keeps
searching for new developing ideas with innovations in educational toys also. The range
also presents attractive toys which include wooden items, soft toys and creative projects for
kids of age. The shopping environment is lively and colourful, and the products are
displayed in such a right manner to make an appeal to the shoppers. The company also
keeps special offers for its customers and at times distributes gifts to children if their
curiosity level is unmanageable. It also offers loyalty point card to its customers which can
be redeemed for some suitable item. They sent newsletters to inform the customers about
the new arrivals in the store. The staffs here are having ultimate product and customer
requirement expertise, such that they can manage to provide every visitor to their outlet a
perfect choice of gift, wrapped in an exclusive paper, with an all inclusive price for wrap
and card.
1. Referring to the case study above, explain how the scope of product management in
retail could make a difference in a competitive market.
2. “Strategic role of product management plays an important role in success of any

retail company.” Explain this in reference to the above mentioned companies in the
case study.
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4.9. TERMINAL QUESTIONS
SHORT ANSWER QUESTIONS
Q1. Define retail product management. Also describe the levels in an organisation
associated with RPM.
Q2. What is positioning of product range. Give examples.
Q3. What is the strategic role of retail product management?
Q4. Give short differentiation between generalised retailer and specialised retailer.
Q5. What is the basic approach of product management in small retail business and large
retail business?
Q6. What are the four stages of product life cycle?
LONG ANSWER QUESTIONS
Q1. Briefly explain the strategic role of product range considering the positioning of
product range.
Q2. What is the scope of product management in retail?
Q3. Briefly explain the product life cycle management along with the several ways in which
the PLM increases the organisation speed.
Q4. Explain the components of retail product management.
ANSWERS
SELF-ASSESSMENT QUESTIONS
1. A To help customer obtain desired product.

2. B Operational Level
3. C Physical goods or services
4. D Maximum customer satisfaction
5. B Retailer – customer relationship
6. B The retailers assist the marketing management to add value to the product.
7. C Standing of retailer as perceived by the customer.
8. B Loosing core specialisation in the process of expansion.
9. A Loosing core specialisation in the process of expansion.
10. B Tanishq Jewellers
11. C Strategic process involving team of expertise people
12. A Directors and vice-president
13. B Study of all aspects of the product from its formation to disposal
14. A Introduction
15. D Decline
16. D All of the above
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TERMINAL QUESTIONS
SHORT ANSWER QUESTIONS
Answer 1:
The retail management refers to the various processes that help a customer to obtain the
desired product from the retail store for its end use. In a retail organisation there are
various levels that are incorporated with retail product management.
1. The strategic level- In this long term product management objectives are set out
and the contribution of the product range to the overall retail positioning strategy is
established.
2. The operational level- In this level those strategic objectives became translated
into processes and operations that are carried out by the product management
teams and at the end of the product management process the product meets its
consumer in the retail outlet.
Answer 2:
Positioning as the word itself suggest, means the individual standing of a retailer in relation
to their competitor as percieved by the customers. The retailer’s business could be
specialist or generalised retailers. Following is the example of both types of retailers-
1. Generalised Retailer – Big Bazaar

2. Specialised Retailer – Tanishq Jewellers
Answer 3:
The retailer has to keep a range of goods that can satisfy the needs and requirements of
the customer who visit their outlet in order to effectively carryout their traditional role in
the distribution channel. The strategic role of product management includes-
1. To keep the track of all their product range in the line according to the changing
needs of the customer.
2. To have a good understanding of the product preferences of their customers and
how their needs and desires are changing over the time.
3. The retailer’s contribution to the marketing management process gives a great
opportunity for adding value to the tangible products.
4. To offers an amazing product assortment and the environment to the product in
which it is represented to the world.
5. To identify and anticipate the customer’s requirements along with fulfilling their
needs.
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Answer 4: Following are the differences between generalized and specialized retailer:
Generalised Retailer Specialised Retailer

 It provides solution to many  It is restricted to smaller number of
customers needs as possible. customers, but with more choice in a
 It follows the concept of providing certain category.
solutions to large group of people  The choice may be in terms of
having enough proportion of needs. product variation, pricing level or
 A medium sized super mart provides may be brand choice.
a mixture of products.  These types of retailers provide a
 Wide ranges of products are offered narrow but deep product mixture.
with limited no of brands in each
category.
Answer 5:
Small retail business - The product management in small retail organisation may be
defined into just running the general store. In this an owner or the manager directly calls
the supplier and place the order for their stock for displaying in their stores shelves.
Large retail business – The product management in large retail organisations is
widespread task, these organisations have many different levels of management and
each level contains a team of expertise people to manage them.
Answer 6:
Following are the 4 stages of PLC –
1. Product development - In this stage of the cycle the company launches a new
product in the market so we can say that it is the most expensive stage for a
company.
2. Growth - Here the product is manufactured, marketed, and released. Now the
competition, distribution and demand of the product increases rapidly.
3. Maturity - This is the stage where the product is accepted by the market and is
well established now the product is extensively available in the market, and there
is availability of many competitor products too.
4. Decline - At this stage the market of the product will start to shrink. The product
is losing its shares in the market or becoming outdated, this is why it is known as
decline stage.
LONG ANSWER QUESTIONS
Answer 1: The product range helps the customer to search the appropriate shop for their
buying. In a market sector, product range helps the retailer to position himself against the
Page | 22
competitor. The product range offers the customer a reason to shop with one retailer
rather than another. The product range may be categorised which –
- Provide limited but extremely specialist products

- Provide high quality products
- Provide strong fashion element
- Provide wide product selection
- Provide value for money to the product range
Positioning as the word itself suggest, means the individual standing of a retailer in
relation to their competitor as percieved by the customers. Retailers that are engaged in
strategic planning can have a good understanding of how their offers are regarded as
compared to others, the basis on which the offers are measured by the consumers. The
product range itself and the way that products are bought by a consumer are the main
reasons why a particular retail outlet is visited more than the other. The product range
used by a retailer can be classified as follows-
1. Generalised Retailer - It provides solution to many customers needs as possible. It

provides a wide range of products with limited no. of brands in each category.
2. Specialised Retailer - It is restricted to smaller number of customers, but with
more choice in a certain category. The choice may be in terms of product
variation, pricing level or may be brand choice. These types of retailers provide a
narrow but deep product mixture.
Answer 2: The product management in small retail organisation may be defined into
just running the general store. In this an owner or the manager directly calls the supplier
and place the order for their stock for displaying in their stores shelves. But the product
management in large retail organisations is widespread task, these organisations have
many different levels of management and each level contains a team of expertise people
to manage them.
In case of large retailers, product management is a strategic process in which a bunch of
operational practices and organisational structures are supported. As the requirements of
the customer is changing, the retailer need to take the growth which is managed by the
strategic product management and it also figures out the market position so that they can
appeal to the identified market groups of consumers.
The various level of management in an organisation are-
 Strategic product management- (directors and vice president)

 Product opportunities and objectives.
 Market opportunities and objectives.
 Sales and profit objectives.
 Resource development.
 Business environment auditing.
 Integrated information systems planning.
Page | 23
 Range planning.
 Category management.
 Operational product management- (buyers and merchandisers)

 Product development and selection.
 Sourcing.
 Sales forecasting.
 Supply chain management.
 Pricing.
 Space allocation.
 Store profiling.
 Visual merchandising.
 Promotions.
 Outlet level product management- (store personnel)

 Allocate space to merchandise.
 Display merchandise.
 Receive and prepare stock.
 Implement promotions.
 Sell merchandise.
Answer 3: Product life cycle management is the incorporation of all the aspects of the
product starting from the formation through the product life cycle to the disposal of the
product and its components. PLM combines the complete vision that an organisation has
for maintaining the overall plans of the products including data, people, software,
manufacturing and marketing.
There are several different ways in which PLM increases organisations speed in the market.
 It can establish the growth for an infrastructure.

 It increases the value added work which improves the innovation.
 For an effective assortment planning it creates prerequisites.
 It utilizes the store virtualization and configuration to increase product appeal and
consumer experience.
 Based on consumer input and behaviour combined with sales statics it enables the
product-centric decision making.
 By enforcing the usage of brand definition, logos, messaging and other utilization of
templates and workflows it strengthen the branding.
 By performing virtual product qualification in the early development process it
makes a positive impact on decisions related to calendars, cost and quality.
 To reduce the chances of last minute changes and product recall, it integrates the
regulatory compliance and sustainability into the product innovation process.
 It completes all the marketing and transactional processes (order placement,
warehouse management etc.)
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Answer 4: The concept of Retail product management are-

 The product - A product is defined as a physical good, service, idea, person or place
that is capable of offering the attribute that is necessary for an individual or an
organisation and has to be so satisfying that they are prepared to exchange money,
backing or some other unit of value in order to acquire it. There are four types of
products complex tangible, convenience tangible, information based and services.
Different types of products require specific approaches of product management. The
retailers offer usually physical goods and services.
 The retail product sector / Retailer - The term retail sector has been used to refer
to a type of retailer, based principally on the product offer. The retailer is the editor
of the product range and is also the distributor of small quantities (breaks bulk).
Retailer provides the goods to the customer at the convenient location and also
finances in managing the appropriate stock.
4.11. SUGGESTED BOOKS AND E-REFERENCES
BOOKS:
 Rosemary varley,2003,Retail product management , Routledge , first edition

 Prabhu TL, 2019, Retail Management: An effective management strategy for retail
manager,Guru M.
 Rosemary varley,2005,Retail product management , Routledge ,second edition
 Pradhan, 2010, Retail Merchandising, McGraw Hills.
E- REFERENCES:
 http://www.danangtimes.vn/Portals/0/Docs/48101352-83_Retail%20Product
%20Management.pdf
 Zentes, J., Morschett, D., & Schramm-Klein, H. (2007). Strategic retail management. Springer.
Viewed on 01-05-2021.
 https://slideplayer.com/slide/4416442/
 https://www.smartsheet.com/product-life-cycle-management
 https://www.technia.com/blog/retail-plm-challenges-and-opportunities/
 Product Life Cycle Stages
Page | 25
Retail Product
Management
Concept of Retail
Product Management Management of Retail
product life cycle
Role of Product Scope of Retail Product

Management in Retailing Management
Components of
retail product
management
Retail product
life cycle
Page | 26
Strategic role of
product management
Positioning of
Product life cycle and
price range its stages
Strategic role of
product range
Product life cycle
management
Fig 4: Conceptual Map
Page | 27

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Retail product management

 Explain the concept of Retail Product Management

4.2 CONCEPT OF RETAIL PRODUCT MANAGEMENT

The concept of Retail product management

4.2.1 COMPONENT OF RETAIL PRODUCT MANAGEMENT

The concept of Retail product management focuses on the 2 main components

 The retail product sector / Retailer

The main aim of the retailer is to achieve maximum consumer satisfaction by

SELF ASSESSMENT QUESTIONS

1. What is the use of retail product management?

A. To help customer obtain desired product.

2. Following is the level of retail product management-

3. What does the retailers offers to its customers?

4. The main aim of retailer is to achieve______________

4.3 ROLE OF PRODUCT MANAGEMENT IN RETAIL

The role of retailer within the channel of distribution is to provide an appropriate

Therefore, retailers need to have a good understanding of the product preferences of

The retailer’s contribution to the marketing management process gives a great

4.3.2 THE STRATEGIC ROLE OF PRODUCT RANGE

- Provide limited but extremely specialist products

4.3.3 POSITIONING OF PRODUCT RANGE

outlet is visited more than the other.

SELF ASSESSMENT QUESTIONS

5. What does the strategic role of product management creates

6. Which of the following sentence is correct -

7. What does the positioning refers to in retail product management?

8. Generalised retailers provides-

Generalised retailer maintains large variety of products to satisfy more customers’

4.4 SCOPE OF PRODUCT MANAGEMENT IN RETAIL

The important aspects of a retail product management are:

STUDY NOTE: The product management in small retail

In case of large retailers, product management is

The various level of management in an organisation are-

 Strategic product management- (directors and vice president)

Strategic product management.

Fig 2: Scope of retail product management

SELF ASSESSMENT QUESTIONS

11. In case of large retail organisation product management involves-

A. Self placement of order and displaying them in shelf.

12. Strategic product management is done by –

A. Directors and Vice President

4.5 PRODUCT LIFE CYCLE MANAGEMENT (PLM)

4.5.1 WHAT IS PLM?

2. The processes – In this all the people’s

 It can establish the growth for an infrastructure.

4.5.2 WHAT IS PRODUCT LIFE CYCLE (PLC) AND IT’S STAGES?

There are four stages of PLC

Fig 3: Stages in product life cycle

4.5.3 PRODUCT LIFE CYCLE MANAGEMENT (PLM) IN RETAIL

Moreover, requirements of sustainability and the rigidly increasing government

SELF ASSESSMENT QUESTIONS

13. What is Product Life Cycle Management?

A. Pre determination of the life of a product.

 The concept of Retail product management provides an overview of what retail

 Retail management-The retail management refers to the various processes that

 Merchandising- It is s type of promotional activity that helps the retailer to boost

 Sales forecasting- It is the process of estimating the future revenue generation by

 Visual merchandising- visual merchandising is the process in which the purpose is

 Pricing- Pricing is the part of business’s marketing plan. It is a process in which a

 Category management- category management is the process of bundling the

4.8. CASE STUDY

2. “Strategic role of product management plays an important role in success of any

4.9. TERMINAL QUESTIONS