RETAIL

Marketing Management- II

Members: Akankshya Abhilipsa 22202059 Assigned by -Prof.Joydeep Biswas

Baivbhav Routray 22202072 (KIIT School of Management)

Punyasloka Das 22202095

Puja Kumari 22202353

Ushri Dastidar 22202375

 Retail Category: Pet Shops

To understand the implementation of retail management we have chosen pets shop as the
retail category for this project. A pet shop as a retail store that sells animals and pet supplies
and pet accessories. The products like pet food, toys, collars, cat litter, cages, aquariums etc.
are sold in pet shops. It also provides a place to browse. It can help to discover new products,
come up with new ideas on how to improve your pet's life, or assess if having a pet is right for
you.

Type of Retail Stores

Self Service- Self-service in retail means enabling customers to make purchases in stores
without the assistance of retail staff. This system is sometimes called “unattended retail”
because customers often have to scan barcodes and pay for the goods themselves.
Self-Selection -Self-selection is similar to self-service, but customers can ask for advice
during the selection process.
Store Retailer-Retailers buy goods in bulk either directly from manufacturers or through
wholesalers and sell them in small quantities to consumers at a profit. The retailer is the
last link in his chain of farm-to-table supplies.

What is Product assortment?

A product assortment also known as product range or product mix, is the range and type of
products that retailers offer to their customers that define the product types that the
customers want.
 Marketing Communications

Merchandising - Promotion of good is done by presenting the goods in the retail store
like shelving, hanging, dumping, folding.

Shelving - Shelves are also colloquially known as store shelves. It includes various types of
exhibition units, commercial facilities and gondolas. Retailers and suppliers use these various
shelves and fixture spaces to display merchandise for shoppers to find and purchase.

Dumping - Dumping is an international trade practice in which a producing country or

company sells its products abroad at a price lower than the cost of manufacturing and
transporting them to gain a foothold in the market.

Hanging - It's an advertising sign that looks perpendicular to the shelf in the aisle
 Store planning - Store planning is a holistic approach to developing retail spaces that
maximize sales and customer retention through effective layout design, inventory
display, and accessibility.

Grid Layout - In a grid layout, products are displayed in long aisle displays for customers to
browse and browse. The grid maximizes product display and minimizes white space. Nearly all
convenience stores, pharmacies, and grocery stores use this familiar layout.

Loop Layout - The loop store layout guides the customer through all available products he
has one path before reaching the checkout. While this approach maximizes overall product
exposure and optimizes customer.

Free Flow- Free-flowing layouts are not intended to guide customers with predictable design
patterns, displays, or signage. This retail design has no specific design rules and gives
customers more freedom to interact with products and navigate on their own.
 Pratiksha pets and aquarium (organized store)
Type of retail store in term of ownership, Pratiksha pets and aquarium is an independent
format, retailing processes
Retail Store size, location, it’s
appropriateness
Product assortment and target segment
Pricing Strategy being implemented
Various Marketing communications used
inside stores
Salesperson Management
Retailer profitability
retailer and follows store retailing, self-service, self-
selection as retailing process
It is situated at community shopping centres with an
area covering of 1000sq.ft.
Wide range of dog food brands are available like -
Pedigree, Royal Canin, Drools, Origin, Grain zero
along with toys, cat food, fish medications & food,
bird seeds, pinkies etc. It targets generally pet parents
and children.
Products available in this shop range from Rs 10 - Rs
20000.
 Merchandising – To save floor space it
follows shelving and hanging of products.
 Store planning – It has a grid layout.
 Store design – It has good lightning and good
hygiene.
Hardly 1-2 salesperson is available in shop.
 Margin - 3-4%
 Footfall -90-100 CUSTOMERS
 Gross revenue -12,77,500 Rs. to16,42,500 Rs.
/Year (avg./mean value =14,60,000 Rs. /year)
 Total sale per square foot of space - (total
sales/total floor space) =14,60,000 Rs. /1000 sq.
ft= 1,460 Rs. /sq. ft/year
 Gross Profit -
 Piyush pets and Aquarium (organized)

Type of retail store in term of ownership, It is an independent retailer that follows store
format, retailing processes retailing

Retail Store size, location, it’s appropriateness It covers an area of 800 sq. ft and is located at
community shopping centres, Cuttack.

Product assortment and target segment It targets children and pet lovers.

Pricing Strategy being implemented Products available in this shop ranges between
Rs 10- Rs 10000

Various Marketing communications used  Merchandising – It has shelving and

inside stores hanging as merchandising planning.
 Store planning – It has a grid layout.
 Store design – It has good lightning and
proper hygiene.

Salesperson Management The number of salesperson present in this shop

are 2.

Retailer profitability  Margin - 2-3%

 Footfall - 40-50
 Gross revenue - 7,30,000 - 10,95,000 Rs.
/Year (avg./mean value = 9,12,500 Rs.
/year)
 Total sale per square foot of space - -
GR/total floor space= 9,12,500 Rs. /800 sq.
ft= 1,140.6 Rs. /sq. ft/year
 Gross Profit - GR x Gross Margin=
 9,12,500 Rs. x 2.5%= 22,812.5 Rs. /Year
 The pet and patch(organized)

Type of retail store in term of ownership, It is an independent retailer and follows self-
format, retailing processes selection and store service as retail process.

Retail Store size, location, it’s appropriateness It covers an area of 1000 sq. ft and located at
Market Complex, Cuttack and targets only dog
owners.

Product assortment and target segment It has products required especially for pet dogs
only like dog food, dog cages, chewable bones
and toys.

Pricing Strategy being implemented Products available in this shop ranges from Rs
500 - Rs 10000 and sales per day is from Rs
5000 - Rs 10000.

Various Marketing communications used  Merchandising – Shelving, Hanging,

inside stores Dumping, Folding
 Store planning – Grid layout, loop layout,
free flow

Salesperson Management Only 1 salesperson is there in the shop.

Retailer profitability  Margin - 6-7%

 Footfall -20-30
 Gross revenue - 18,25,000 - 36,50,000 Rs.
/Year (avg./mean value =27,37,500Rs. /year)
 Total sale per square foot of space - GR/total
floor space= 27,37,500Rs. /1000 sq. ft=
2,737.5 Rs. /sq. ft/year
 Gross Profit - 27,37,500 x 6.5%= 1,77,937.5
Rs. /Year
 Pets Empire(organized)

Type of retail store in term of ownership, It is an independent retailer and follows store
format, retailing processes retailing as retailing process.

Retail Store size, location, it’s It covers an area of 200 sq. ft and is located at
appropriateness market complex, Cuttack. It has cheap quality
pet food and accessories.

Product assortment and target segment It has cheap quality pet food and accessories and
targets pet parents.

Pricing Strategy being implemented Price range of the products are from Rs 10 - Rs
1000.
Various Marketing communications used  Merchandising – Shelving, Hanging,
 Store planning – Grid layout and
inside stores customers are not allowed inside the
shops.

Salesperson Management Only 1 salesperson is present in the shop.

Retailer profitability  Margin - 1-2%

 Footfall -10-20
 Gross revenue -3,65,000 - 7,30,000
Rs./year (avg./mean value= 5,47,500
Rs./year)
 Total sale per square foot of space - GR/total
floor space= 5,47,500Rs. /200 sq. ft= 2,737.5
Rs./sq. ft/year
 Gross Profit -- GR x Gross Margin =
5,47,500 x 0.5%=5,47,500 x 1.5%= 8,212.5
Rs./year
 Healing point pet shop(organized)

Type of retail store in term of ownership, It is an independent retailer and follows store
format, retailing processes retailing, self-servicing and self-selection as
retailing process.

Retail Store size, location, it’s It covers an area of 1500sq.ft and is located at
appropriateness. near veterinary hospital, Cuttack.

Product assortment and target segment Wide range of dog food, cat food, other pet
accessories and pet medicines are available as it
is near the veterinary hospital. It targets dog and
cat owners.

Pricing Strategy being implemented Price range of the product are from Rs 100 - Rs
20000.

Various Marketing communications used  Merchandising – Shelving, Hanging,

inside stores stocking, dumping.
 Store planning – Free flow, loop layout,
grid layout
 Store design – The store is spacious with
furniture and good lighting.

Salesperson Management There are 4 salespersons present in the shop.

Retailer profitability  Margin - 7-8%

 Footfall -100-150
 Gross revenue - 36,50,000 - 54,75,000 Rs. /Year
(avg./mean value= 45,62,500 Rs. /year)
 Total sale per square foot of space - - GR/total
floor space= 45,62,500 Rs. /1500 sq. ft= 3,041.7
Rs. /sq. ft/year
 Gross Profit -GR x Gross Margin= 45,62,500 Rs.
x 7.5%= 3,42,187.5 Rs. /Year
 Pet gallery(unorganized)
Type of retail store in term of ownership,
format, retailing processes
Retail Store size, location, it’s
appropriateness.
Product assortment and target segment
Pricing Strategy being implemented
Various Marketing communications used
inside stores
Salesperson Management
Retailer profitability
It is an independent retailer and follows store
retailing process
It is a single shop. It covers an area of 100sq.ft
It has wide range of dog food, cat food,
accessories and medicines. It targets dog and
cat owners
Price range of the product are from Rs 10-
Rs1000
 Merchandising- shelving, hanging
 Store design-good lighting good space
and with furniture
 Store layout- grid layout
Only 1 salesperson is present
 MARGIN – 2-3%
 FOOTFALL - 100-120
 Gross Revenue-3,65,000 - 5,47,500
Rs./year (avg./mean value=
4,56,250Rs./year)
 Total sale per square foot of space-
GR/total floor space= 4,56,250 Rs./100
sq.ft= 4,562.5 Rs./sq.ft/year
 Gross Profit- GR x Gross Margin=4,56,250
Rs. x 2.5%= 11,40,625 Rs./year
 My pet shop(unorganized)
Type of retail store in term of ownership, It is an independent retailer and follows store
format, retailing processes retailing.

Retail Store size, location, it’s

appropriateness. It covers an area of 200 sq.ft and located at
market complex.

Product assortment and target segment It targets pet dog and bird owners and has wide
range of pet products like dog food, bird seeds
and other pet accessories.
Pricing Strategy being implemented Price range of the product- RS 10-RS 3500
Various Marketing communications used  Merchandising shelving, hanging
 Store layout grid layout
inside stores

Salesperson Management Only one sales person is there.

Retailer profitability
 Margin- 2-3%

 Gross Revenue-4,38,000 - 5,47,500

Rs./year (avg./mean value= 4,92,750
Rs./year)

 Total sale per square foot of space-

GR/total floor space= 4,92,750 Rs./200
sq.ft= 2,463.75 Rs./sq.ft/year

 Gross Profit- GR x Gross Margin=

4,92,750 Rs. x 2.5%= 12,31 875Rs./year

The capital pets(organized)

Type of retail store in term of ownership, It is an independent store and follows self-
format, retailing processes servicing ,self-selection and store retailing

Retail Store size, location, it’s It covers an area of 400 sq.ft and located near
appropriateness. traffic.

Product assortment and target segment It targets pet owners and all type of pet food and
accessories are available.
Pricing Strategy being implemented Price range of the product- RS 100-RS 10000

Various Marketing communications  Merchandising shelving, hanging

used inside stores  Store layout grid layout, free flow
 Store design good lighting and space
for customers
Salesperson Management There are two salesperson present.

Retailer profitability  Margin 2-3%

 Footfall 30-40
 Gross profit35,45,000 - 50,75,000 Rs./year
(avg./mean value= 43,10,000Rs./year)
 Total sales per sq. ft - GR/total floor space=
43,10,000 Rs./400 sq.ft=
10,775Rs./sq.ft/year
 Gross profit GR x Gross Margin= 43,10,000
Rs. x 2.5%=1,07,75,000 Rs./year

Manibaba aquarium & pets(unorganized)

Type of retail store in term of ownership, It is an independent retailer and follows store
format, retailing processes retailing and self-selection as retailer process.

Retail Store size, location, it’s It covers an area 800 sq.ft and located near
appropriateness. Nandankanan Zoo ,Bhubaneshwar.

Product assortment and target segment It targets tourists visiting the zoo and has deals
in fish food, aquariums, birds’ food.

Pricing Strategy being implemented Price range of the product- RS 100-RS 2000

Various Marketing communications used  Merchandising-shelving, hanging

inside stores  Store design- Spacious but hygiene is not
maintained
 Store layout- free flow and greed layout
Salesperson Management

Retailer profitability
MARGIN -2-3%

Gross Revenue-14,60,000 - 18,25,000

Rs./year (avg./mean value= 16,42,500Rs./year)

Total sale per square foot of space- GR/total

floor space= 16,42,500Rs./400 sq.ft=
4106.25Rs./sq.ft/year
 Gross Profit- GR x Gross Margin=
16,42,500Rs. x 2.5%=41,06,250 Rs./year

-
 Comparisons

STRATEGY PET SHOP GROCERY STORE

Target Customers Targets pet parents & pet
lovers, those people who all
Majorly low middle class customer.

can afford an extra member in

their family
Pricing Depends on the quality and
quantity of the product
Mainly based on quality, quantity and
value-based pricing.
Visualisation Product range are displayed
for better customer
Customer have to ask the shopkeeper for
the availability of the product
experience, price tags are
used.
Salesperson Salesperson should have a
minimum knowledge on the
Salesperson interaction is very important
for increasing sales and profitability
product range, salesperson
interaction with the customer
plays a vital role for increasing
sales
 Conclusions
The project was assigned with the goal of learning about retail
management, including its fundamental characteristics, mode of
operation, and profitability. The project has given our team a detailed
understanding of how retail management functions based on the kind of
products it sells. Retail management fundamentally entails
understanding client demands and requirements, analyzing them, and
creating stores and pricing in a way that makes the shopping
experience easier for customers. We learned in this project how
important inventory management is in decreasing working capital costs
as well as other profitability and operational ratios.