Lecture- 1

MKT305- Retail Marketing

Instructor: Dr. Ravineet Kaur

 What is Retailing
• The origin of word ‘retail’ is related to the French word ‘retaillier’ Which means
‘to break the bulk’ or ‘to cut a piece off’.

• According to Kotler, “Retailing includes all the activities involved in selling goods
or services to the final customers for personal, non-business use.”

• According to Candiff and Still, “Retailing consists of those activities involved in

the selling directly to ultimate consumers.”
 Division of Retail
• Food and beverages

• Mobile and telecommunication

• Apparel

• Footwear

• Cosmetics

• Jewelry

• Accessories

• Electronics

• Pharmacy
Organized and Unorganized Retailing
Organized Retailing Unorganized Retailing

Modern form of retailing. Traditional form of retailing.

Example- retail chain and Example- pavement vendors and

hypermarket. owner managed stores.
Terms of employment are fixed. Terms of employment are not fixed.

The organized retail sector is The unorganized retail sector is not

governed by various acts like governed by acts.
minimum wages act.
It is more prevalent in the developed It is more prevalent in the developing
countries. countries.
 Retail Store Environment or Atmosphere
The retail store environment includes all of the physical, visual, and semantic elements that
contribute to attracting customers into the store and connecting with them emotionally.

• Layout including space usage

• Merchandise placement

• Lighting and temperature

• Color schemes
 Retail Store Environment or Atmosphere (Cont…)

• Music

• Placement of signage

• Scent or aroma

• Employee uniform
 Case: Cinnabon
• Unique aromas can differentiate the brand experience and
shopping environments. For example, when customers smell
certain scents outside of the store, they act brand-remind and
trigger memories of products.

• The Cinnabon bakery chain attracts customers with the smell

tactics. The cinnamon scent is deliberately planned to
convince potential customers to buy cinnamon rolls.

• The stores are located in malls and airports on purpose so

that the smells can linger.

• To keep the scent in the air, some stores even warm-up

sheets of cinnamon and brown sugar.
 Growth in Retail Sector
Factors fueling retail growth include:

• Increased disposable income

• Better lifestyle

• Increased international exposure

• Increased awareness among the customers

• Brand consciousness

• Opportunities for investment in retail sector

 Retail Sector in India
• India currently has the 4th Largest retail market in the world.

• FMCG, apparel & footwear, and consumer electronics are the largest retail
segments, constituting 65%, 10% and 9% respectively of the retail market.

• The Indian retail market is largely unorganized. However, over the next 3-5 years,
share of modern retail (including e-commerce) will increase to 30-35% with share
of traditional retail coming down to 65-70%.

• Organized brick-and-mortar retail makes up 12 percent of the overall retail market,

followed by online sales channels at 6.5 percent.

Link: https://www.linkedin.com/pulse/retail-industry-india-2022-overview-ravi-lama/
 Importance of Retail
• Retail provides employment

• Retail contributes to the economy

• Retail helps shape the lifestyle of people

• Gives customers flexibility and choice

 Retail Jobs
• Sales

• Administration

• IT (software support)

• Merchandising