‘According to Koller, Retai directly io final éustomers for their personal, nont 7 jes eating to se ‘According to NIC, defined to include al ‘of goods and services tothe final consumers. It is the final link ‘in @ ‘product supply chain’ . 4 fare part of an integrated system called the supply chain. They purchases go large quantities ffom manufacturers directly or through a wholesale and thr, consumer for a profit. It includes subordinated services, om Jther fixed locations like stores or markets, door-to-door ¢ here a service provider services the needs of @ large mun, ‘Shops may be on residential streets, streets with few products smaller quantities 10 the According to Kotler, A retai primarily from reiting, Recalling is the oweomes of eta summarized as follower Das wemendous impact on the economy. ‘Aa 4 major souree of employment 1 fs that, retailers perform marketing f OT Omen of goods and sen SMe The width and dep "& displays and signs and els, members,ROLE OF RETAILING Inportant roles of Retailing are given blloyt * ising a is used inside of stores, to support national, regional and local advertising. rational manufacturer for detergent is conducting @ television commercil marketing is 10 so. IF | 2. prive Category Sates Manufacturers and distributors for products 5 decor, perfume and mare. The top sellers within reategory leader By becoming the eategory mend an increase of how much gation ry sigiage ond olher deviees to det shoppers to late products isa role whose impontanee should never be underestinted, A busy mam needs cleat OF scanned with OKEN Scannerrises meat, fesh produce, dairy and baked goods isis, packaged goods as well as for various non-food ermarkets basic appeal isthe availability of fket tefers to a retail store-that combines a department store and 'a. grocery brices. Other ‘advantages in allocate large economies of scale. ‘onal thus increasing opportuites for «) Convenience Store A convenience store i roads, gas/petol stations, tore or shop, generally accessible or local. Alongside, busy scanned with OREN ScarmerExclusive Stare ae foe ON-EXCLISG oe aoe aS Stem of branded companien. A ancine can be excises BIBA etc, ‘Aad exclusive. The examples of exchusize:stores arc ADIDAS, REEBOK, 4) Consumers co-operatives oflen take the frm, of retail aotlets owed and epeated by thir consumers. The ewtoners ot consumers f the goods andlor services the epoperatve provides are ofien aso the individuals who have provided the capital reqed to lunch or purchase Ghat enterprise. 4) Consumers co-operatives ate known as co-operative retail societies or rel oops, though they should ot be confused with retailer’ cooperatives, whose members ae reilers rather than consumers.” iv) Thece are ‘many types of consumers co-operative, There are health eae, insane and housing co-operatives as well as credit unions, agricultural and wsilty cooperatives. SE cy ne awe re ig wie wy eS ene © sconned with oKEN scanner ESSE 2) les ager in se and asa with selection thn a ei than a bypernset of superstore. ay ‘#) A supermarket also called a grocery store. ; td fouseold merce eran ino ‘Cash and cary is defined as “wholesale purchase gos and provide et on tarpore Sep cpt fen ug” wy ems fre nomly avaiable, while a ited delivery sve my wa i) | Cash and carry operators buy goods in nel ; in large quantities fom te and then sll these goods to thee retail custo i 3 ste USOMETS at prices cays or et costs to & minimum, volume in ett! = outFranchising is a long-term cooperative relationship between two entities a franchisor and one or more franchisees that is based on an agreement in which the franchisor provides a.” licensed privilege to the franchisee to do business. The franchisor grants the franchisee the right to use a developed concept, including trademarks and brand names, production, service’ and marketing methods and the entire business operation model, for a fee. The franchisee thei provides the time, capital, and desire to utilize the brand and services provided by the franchisor to build a thriving business. : ; ae The product, method or ‘service being marketed is usually identified by the franchisr’s brand name, and the holder of the privilege (franchisee) is often given exclusive access 10 a * defined geographical area for a defined period of time, all of which is defined in the Franchise - Agreement. i _«, FRANCHISING IN RETAILING : Franchising is the practice of using another firm's successful business model. The franchisee is said to have a gréater incentive than a direct employee because he or she has a direct stake in the business. _ Franchising is a business relationship in which the franchisor (the owner of the business providing the product or service)- assigns to independent people (the franchisees) the right to market aid distribute the franchisor's goods or service, and to use the business nam: for. a fixed ime. The International Franchise Association defines franchising es a contiquing rela which the franchisor provides a dicensed privilege to do business, ‘plus assistance in organizing taining, merchandising and management in return fo! a consideration from te franchisee. oy Oi Scanned with OKEN Scanner(© Scanned with OKEN Scanner60 2. Manufacturer-Whotesaler Where the franchise under ficense manufactures and distributes the Eanchisgy, (es. Soft drink botling arrangement as franchisee’ purchases products for retail sale ffom a. fp (eequendy a cooperative of the fanchisee retailers who have fomed a grelated t0 production sy, a ision of services tat cise o a India. This law is made fog y N } sdverse effect on competition wi effect 0 ise from creating a monopoly in the market. is Aneara ek 1 ces sie ia govemed by el lcose Tan Ae Te in| ax aspect of Tanchise business t Frorh the Indian soil pays the 4. al: franchising as well.All the Toya . . | . 1 : eal Consumer Protection Act, 1986- .. . o ; | Consumer Protection Act promotes the idea of consumer and consumer interest, Tel consumer ptsicn law is pro-consumer. The orsumer.is provided with mulipi x seins unfair trade practice, If there is any defect’ inthe product or deficiency in se censuns: protection law comes into action. Under the consumer protectin law, a com! ‘ile complaim agains both the franchisee as well as the franchisor: | Arbitration and Conciliation Act, 1996 - { —a a ain # Promoted extensively in India. Indian eours are flocid| cases and arbitration is a Solution to the problerh. ‘The “Arbitration and Conciliation Act exp the concept of arbitration to resolve the issues “Wherever | | ‘Ths Foreign Exchange Management Act, 1999 “4 (Ee ap 99” MEANING AND DEFINITION OF MERCHANDISING ° : ales promotion as 4 comprehensive mes including In research, development of new products, coordination oH manufacture at - and dl advertising and selling. Merchandising activities may include display tec u a ee : the-spot demonstration, pricing, shelf talkers, special offers and other point-o ae net The planning and implementation of the acquisition, handling and monitoring of i categories for an identified retail organization is called merchandising management. which! i& involved in. tnarketing ~ -right time, in the right quantities to the consumers for their end use. Every retail store has its own line the customers. The display of the merchandise plays an impo y rtant role- in “attracting - customers inte the store and prompting them to Purchase as well. pee S :' ‘TYPES OF, MERCHANDISE, Various types of Merchandise are: lable and regularly bought with very little effort. ed, customiers should not need to go through a rigorous decision- making process. Demand transfer .is also very“ common with convenience goods, . where- Customers will select an alternative brand if their choice brand is not available. nes Convenience goods are usually inexpensive and have-a low opportunity cost for customers, but this also means a higher sensitivity to price. In this case, the main objective for retailers is,to, dalance out price and demand, ensuring that incremental price incteases don’t have a ‘negative - oS of = aa Asa ce make maximum profit retailers Need to ensure they sell large volumes of convenience g at a fast pace. ce include food, newspapers, cleaning products, and personal cee eee eae eee “Two-thirds ‘of the entire economy is impulse buying.” . “Why We Buy: The Science of Shopping”. Have you ever wi ‘Odds are you budgeted carefully, but afler browsing the Store, there had to add to your shopping cart. If that’s you, have no fear, you’ shoppers make Such purchases. This is a merchandising strategy yy they stock impulse goods ~ goods which are purchased instan nt process “10 great ‘effect. Were extra items which you Plemented by retailers where "aneously without significant FS not alone — 9 out of 10D Impulse purchases cre never planned — Customers simply see them, pick them:up:and head to checkout. The most important factors for impulse goods to sell however lies iindisplay and location. If not well displayed or located in unassuming sections of the store,, they will be missed. These products are often displayed at till and check out points to entice: customers to quickly add it to their Purchases. They include ‘magazines, sweets or complimentary, products, S$ want ample product information on and have-the ability to be compared’ to. other brands. Because of the intensive reseaich and multiple comparisons, purchased less. Customers normally compare a number of alternative quality and content, etc. before making a final decision. There are emotional aspects of this, purchase such.as acceptance, appreciation or belonging. For example, many people purchase the iPhone not just for the utility of the phone but for the: association it . has with being a status symbol. Examples of shopping products. include clothing, electronies and ferniuure. a these products, are often brands based’ on price, . also psychological and speciality goods, customers are prepared to do extensive rescarch, pay much more and wavel long distances if necessary. These products also have a much higher cost attached to them, : using customers to be much more selective. Regarding demand transfer, customers are often ing to go with another offering ~ they will not compare products aa ‘oon exactly what they want. An alternative offering is not acceptable. Speciality Products, ne = to be conveniently located either. Examples may include Iuxufy cars, expensive alcohol Service experts.ANALYZING MERCHANDISE’ PERFORMANCE ” Doe a procedure to analyze the merchandise performance with regard addition or deletion of SKUs, vendors and departments as an ongoing process. These dacisic became necessary because in case of fashion merchandise, consumers* Preferences, tastes, tiki and distiking change rapidly. Therefore, it becomes Recessary for a merchandise buyer to sikhieties merchandise, sea for new veridors or add/delete/club some categories. Further, Poor performance of merchandi in terms of quality and after use dissatisfaction, force.a me merchandise buyer to change the ven in question £0 avoid further complaints and reduced profi ts, Taree methods 2 are commonly employed to analyze the Performance of merchandise. Th are: =33, alysis sometimes known as Always Better Contol is an inventory classification jer tot tory is classified into three categories: is known as ABC analysis and tends to measupe the importance of each item of terms of its value. . ‘and prompt receipt and inspection. “A’ and “B" items should be frequently reviewed fest watch is kept on their consumption patter, stock balance and refill orders. For items control is comparatively stressed fre, whether early markdowns should be applied or fesh order for iven to satisfy current de ‘There i no universal ru ‘amendments may be made to the merchandise plan any day after two weeks, T fc forecasted sales guides the rel variation between actual and f to addition/deetion of SKUs, vendors and departments. Fu ough analysis is employed in evaluating the perfortance of fshion i of the various items in ladies jeans category, yzing the performance " , na cruibe to buy fesh tc of txhadse (a ase of gal cstone eee idoune (in ease the Hens fave 00 good reponse fom estomen). x go for @ Scanned with OKEN Scanner Wet Wee etuattaPind "| etal to Pay Pantester rion [Pian] Act | Vetason| Pam] Aczal | Verto wo o tow walt [90 [aaa aoa as Nematic {49 | so | as | 30-[25 | steer Motumwainwtie| 30 | 30 | 40 | 40 | 30 2 = |Nomatwatzwtie |30°| 2s | acer | 10 | a5 10 seuctatiots 20 | as | as [20 | ts “a y [DerimNermacey| 19 | so | as is [ae | ass | 287 | DenimLawGrey |'20 -| 30, 30 | 25 | 29 16 tow Nomarcéy. | 40 |. 2s | sistas | a5 ss i : i f ; i i sles oe that bs satisfies soe nec Tt aca een loca teiler ora product a2 sale ction of features. and attibutes, ~ jine model is Gamed to forecas; customs! erduaionfulgement of a product ot rear based on: A 2 ‘concept that customers (@) Products performance on customers’ parame, 6) Te sigifcance of those parameters the te | Reileisfouyers use this method to evalale Jn order to understand the concept, We considera schoo! uniforms. Fi ths perfitmance of merchandise and vendor. Yrpoteticl example as for a vendor.of kid A realefouyer can evaluate vendors as under: > scanned with OKEN Scanner93) ly get reflected in the costing manufacturing or marketing ion This basic reason kas propelled the ev ilosophies such as JIT, JIT 1 MEANING OF STORE MANAGEMENT (0 receive materials, to protect them while in storage from damage & the material in the right quantities, at the right time to the right and storés without delay to various production event overstocking and under stocking of materials, cect materials from pilferage, theft fire and olher risks. ine the storage cost. il over material. proper and continuous cosiol over mat / vr mon effective utilization of availabe storage space and workers engage in the cess of sore management. FUNCTIONS OF STORE MANAGEMENT: © fons of store management are: ©} scanned with OKEN Scanner 2. Storage of Materials or Goods storage. Storage pag inflammability and oe moving oF slow movigg ei ‘hazards; volume and weight- heavy or light, movement frequency- print of use. cay and quick rercwbiliy of tens tat are demanded by the internal custome, cation, maxim space uation and mina handling are Key {20s (0 et She em i dared to be out of stock This causes hold up of production process and avoie | veya pucase of out of Sock mati This fncion takes place as per established review | system. - 4. Records the bin card and algo-the value. 5. Howekeepiog ‘Maintenance of spic and span cleanliness in these and ensuing pri ke 1G principle of Place fly implemented. Good housekeeping es @ scanned with OKEN ScannerRaw materials sore smears to civiaredtrvaton an ebcescence, Obsolete Hens are good inal spet bat Toe inthe eomguny dae to cangss that have ocurred in the couse of tine, ‘tock verification is-o eliminate gap betveen information and physical stoek, In stores some ites ar ajnsned as stock item, The stores triggers the rocuremdht yee for such items when a predetermined ieardr level is reached, Hesce correct stock poston tough ‘erfeaton is ential to cate “no'sbarage and no excess" for the fie, . 9. Interaction abd coordiati’ fron is obviusly needed inthe dichage ofthe funetions discussed s0 fx. It alto becomes eansury to coordinate the flow of materia) samples and information though a netwede of Gepwrmens for performance of sors Rios, Besides, every management fisttion being sa amma nn nan ‘vei’ of féTANL STORES aah epnting apn brie of aes, ton of ao "mae al e Pe oe end tae ib ecsay 1 ae 4b a len peo = eens, Fanetional Stores depend on the use to which the material is put ores can be futher lasted as: eras stores ete. Futon vers are by rosd, here must be adoqnte space for F Suis provision isnot made foe quick and easy Iasing or unloading, henry detrege cin revue G scanned with OKEN Scanner ‘ey cose ineacca between Purchsing, reduction, quality contol and engin” *aieport or the Sm! reins cn A elie) wil go ie Tn certain cases where the raiv materials may be explosive danger» 9? ature, complete segregation wil be necessary. : es Ht paints, brushes, cleaning materials, wal, Production Store, the matrils mene fv) Tools Store s All kinds of tools ies, measuring instrimens, saws, small tools sk ‘or sell them as scrap. Stescrap if sully kept separate the open. Se sora TE Copper can be very ecitly and should, therefore, be Kept safely in covered ston ‘Here materials rejected on the factory oor dre stored i i ree ws uae ely wml es ep eo vps on year added eee es we a a cpa anpmare Pens mi we ee ne end. ekig e case be is place span coat =f vil) Spare parts ‘These spares are uly seuied by Dai 7 ly required by Maitenance i and machinery & : for repair .or overhaul CSET i Bef: Sth a an te pres and coe ok called « finished oF pufchased fom outside and meant for production. TH ¢ aris ifn ‘ore, seni-ished pats store or component store. vit) Recelpt Store This is where “ied re ae recsved from vendors or those cleared fom ie vel A SSS: The materials arriving here fave to be retained until they Ht BFcustomer and prepare a customer friendly fayout. | z & the chances of shoppers ‘buying more merchandise. In the case of India many of the independent retailers do not ‘have or have limited ‘Spaces’ for customer movement. Especially in smaller stores, one would “find cash counter located at the store entrance. This “Kinara ‘Stores’. . A customer friendly layout gives an impetus to the shopper to spend more time in the store hence increasin, treatment is common with so called: But on the other hand, many organized retailers provide adequate. space within the store for shoppers and create layouts that facilitate a é definite pattern of customer traffic In other words the layout creates ‘Aisles’ so that the shopper can move on.a predefined path inside the’ store. Layout planning caters to decisions about nature of traffic flow, kinds of product, space available and maintenance of the space on a daily basis. : : roTYPES OF STORE LAYouT pasic store layouts: yore a. few susight Floor Plan sate siraight floor plan is an excellent store layout for : ef es use of the walls and fixtures to create small spaces ae St ae aces within the 1 ban I gf dar plan is one of the most economical store designs. 7. : . The straightvice types of Fetal Stress plan invites movement ay or plan i a god store layout for se-Ser0™ 0 ity for cashiers and customers. ‘The Scanned with OKEN ScannerSeating up a netwere of wholesalers and retailers coables corapanies to reach territories they could not cover with their” oom sales resources, This Provides omtpanies with a low-cia - Retbod of expanding geographically vithent increasing its intemal sales resouvss. Members of ‘he distribution, channel with their om ‘customer base Offer companies the oppenuunity to gain new business without inawring sales and prospecting costs, (x) Support Smaller Customers. . Companies can use their distribution channels to deal with their fra their own sales teams free to focus leaving on dealing with large accounts, Distributors and retailers may i ‘h. customers their channe? Teailer or distributor then controls the relationship with the cust (2) Improve Customer Convéntence=" SCOPE OF DIST T Scope of Distribution System can be summarized as: follows: (D Supply of right Products at right time In, case of perishable products, few and controlled levels of. distibuton ate prefeey durable and standardized goods, longer and diversified channél may be etesary, Hs made product direct distribution to' consumer or industrial user may be desirable” For technical product, specialized selling talent is nec-essary and the chaniel Tecra shortest. Systems approach need package deal and shorter’ channel’ service. Produsis “ value are sold directly by travelling sales-force and not through middlemen, a) Distribution to ‘required Market | A consumer’ markét needs reiailers. A big market Rea tana cue ee small marker, direct selling is more’ suitablé. In a highly concentrate market, diet sling yu better results but in scattered. wide market,-many channels are required to operate. Sir average frequency of customers’ order also influ-ence the channel decision, ° . Food products need both wholesalers and. retailers..-Consiumer and dealer analyst necessary for vafious in-formation in the selection of suitable channels of distribution, Desi credit, preference for one.stop shopping, demand for personal services, amout of tise st! effort the customer is willing to spend '- all are important factors in channel coi Gi) Communicate to the Middle-men: *- Middlemen afe wanted particularly in promo-tional stage. To sell ty vole fi ie at lower unit cost, middlemen are iven Priority, : (iv) Distribution as per. the Company requirements . é «_A big firm rieeds shorter channel. The company’s product mix influenies ie! channels. A resourceful com-panly docs not ely very much on middlemen. Quantty ly. of mating services provided by the company can’ influence the chan-nel coi dielve <2 "SELECTION OF CHANNELS Some of the factors to consider while-selecting a channel. of disteibution are: (1) The Nature of the Product (2) The Nature of the market (3) The Nature of Middlemen (4) ‘The nature and _ Size of the manufacturing unit (5) Government Regulations and Policies and (6) Competition. ° Distribution of goods is as: important | as. production. Existence of an organization largely - depends upon a proper and well organized syStem of distribution. It is therefore, necessary” than utmost attention should be paid i in ‘selecting @ channel of distribution” Various constituents of the marketing : mix ‘ike promotion etc., are closely related to the channels of distribution. A wrong choicé of distribution channel ultimately increases the price ofThe channel choles. is infened on several al factors Stich factors m . factors relating fo: ; 1. Product Characters 4, Middlemen 5. Environment , |process, The efficiency of received from the sales ‘team supply routes that renuin the necessity of negotiating a new ns sliould function quickly and Other departments in the compaity need to know as has been placed and the caslomer must have rapid" confirmation of the ‘rdet’s receipt and the time, Even before products are manufictured and sold the level of ofice Tnventory, or stock management, is a ertical area of PDM because stock levels have & direct effect on levels of service and customer satisfacti 1 stock level is a nevet run out'of stock, but if stock-outs ent competitors, Techniques for delérmining optimum stoc reach customers by the most efficient road or rail routes, ‘The logistics of ware Anerefore, be coresponigly more coiplicated in In we UK, However, ie prinelpes remain the same, and Indeed the European Union red as a tae ‘tome auatket’,173 cir own on-site warehouses from where Currently, many companies functiom adequately with goods are dispatched direct to customers. When a firm markets goods that are ordered regularly, ~ put’ in.small quantities, it becomes. more logical to locate warehouses strategically around the country. Transportation can be camied: out in bulk from the place of manufacture to respective warehouses where stocks wait seady for further distribution to the customers. controlled through the mode of transport selected amongst alternatives and ‘these must be constantly reviewed. During the past 50 years, road transport has become the dominant #” transportation mode in India. It hus the advantage of speed coupled with door-to-door delivery. The patterns of retailing that have’ developed, and the pressure caused by low stock holding and short lead times, have made road transport” indispensable. When the’ volume of goods being - transported reaches a certain levef.some companies purchases their .own vehicles, rather than use . the services of haulage contractors. : = ”