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The Stages in analysing retail environment include analysing market size, competitors, rules, industry attractiveness and industry structure. These stages are explained below.-
Market Size/Age: Is the market relatively small or large, and can it be broadly classified by its stage of development (Start-up, emerging, growth, maturing, declining)
Number of competitors: What is the level of competition for the market? Are there many small rivals or few large? How easy is it for new players to enter the industry?
Rule of the game: How do firms compete in this market? Do they compete on price, quality, technology, service etc? What is the average level of profitability? Is it a profitable market or is it a high-volume, low margin field?
Industry Trends/driving forces: What are the industry trends and how rapidly they change? Is the industry growing and innovative or stable or slow to change? The rate of market growth is critical factor because it influences the equilibrium between demand and supply.
The strategists also need to anticipate future trends.Industry Attractiveness: The overall attractiveness of an industry is determined by the interaction of these key structural forces. the more attractive the industry. new development that may change the existing structure. Industry Structure analysis: The initial analysis of industry structure provides a snap of the competitive environment. . The higher the rate of growth and the weaker the competition.
and the performance standards set for the same. or the Service Quality Gap model was proposed by Parasuraman. The first four gaps are called company gaps. This models identifies the different sources of gaps or differences between the service quality that a customer expect to receive from a service provider and the customer perception of of the service actually received. Zeithaml. Gap 3:The difference between the service design and actual service delivered. .that is. Gap 4: The difference between actual service delivered and the service as perceived by customer.Q 2. Gap 2: The difference between company's understanding of the service desired by customer and the service as designed to be delivered by the company. Gap 1:The difference between the the service actually desired by the customer and company's perception of what the customer desires. The description of these five quality gaps is given below. The customer gap is the resultant effect of the four company gaps. Briefly explain GAP model of service quality Answer Gap theory. and the last or fifth gap is called customer gap . and Berry in 1985. the gap as perceived by customer. The model identifies 5 different types of gaps.
.Gap 5: The difference between service as perceived by customer and service expected by company.
Free standing locations This type of retail location is basically any stand-alone building. What are their pros and cons? Answer: Following are various types of retail store locations. However. . the lack of parking is generally a big issue for downtown retailers. Many communities are hard at work to revitalize their downtown areas and retailers can greatly benefit from this effort. there may be fewer rules and more freedom for the business owner. Depending on the landlord.Mall Space The mall has many retailers competing with each other under one roof. There are generally 3 to 5 anchor stores.Q 3. This is due to the high amount of customer traffic a mall generates. Discuss are the various types of retail store locations. It can be located in a neighbourhood or right off a busy highway. just like malls. from anchor stores to kiosks. there are generally no restrictions on how a retailer should operate his business. or large chain stores. However. It hosts a variety of stores and retail formats. Typically the rent in a mall location is much higher than other retail locations. It will probably have ample parking and the cost per square foot will be reasonable Downtown area This type of store location may be another premium choice. and then dozens of smaller retail shops.
may a times. . especially when they cater to other businesses. Home based Home based businesses or stores are an inexpensive option but in such a business. becomes really hard to separate business and personal life in this setup and the retailer may run into problems if there is not a separate address and/or phone number for the business Office Building The business park or office building may be another option for a retailer. It. but make sure you can live with them before signing a lease. these rules are probably more lenient than a mall.Shopping centre Strip malls and other attached. growth may be restricted. Tenants share maintenance costs and the image of the building is usually upscale and professional. adjoining retail locations also have some guidelines or rules for their tenants directing their conduct of business.
if the garments sold by an apparel store lose shape or run colour. stores at breach candy or Nepeansea Road are considered upmarket. List the factors influence retail store image. The location of the store and the price of the merchandise sold also communicate the image of the store. Advertising also helps create image. For example.- The products itself/the merchandise features The place where it is sold or the location of store The pricing of the product. Expensive products are generally perceived to be good. The primary factors are. a store at South extension communicate a different image as compared to a store in chandni chowk or Karol Bagh. The price of the product plays an important role in creating the image. The manner in which the merchandise is displayed and presented is an integral part of communication of the image. as compared to those in suburbs like kandivali or Borivali.Q 4. it creates a bad image in the mind of the customer. The manner in which it is presented to the customers The advertising and promotion for the store Perhaps the most important factor that affects the store image is the product features or the merchandise itself. Similarily. For example. .Discuss the elements of an interior store design Answer: The factors affecting the image of retail store can be classified into primary and complimentary factors.
For example. Wood paneling. the design of retail space are increasingly being used as a means by which strategic aims are reached. For example. Store design has always been used to reinforce other elements of a retail store strategy. plush carpeting and marble used in a store denotes highquality merchandise and may suggest high-price positioning. planters. It is these small details that help to refocus the attention of the stopper on to revised core values. 2001) Store design elements include: Exterior elements like marquee. in 2001 safeway introduced a new store design to reinforce their position as a good-value fresh and quality grocery retailer. customer service.The shopping experience provided in the store. baskets and barrels were used in the fruit and vegetable section to give the impression of ‘market freshness’ and chalkboard signage to foster the impression of good prices. as retail markets mature. slate tiling and pendent lighting were used in the wines and beers sections to create the impression of up-market wine cellar. windows. entrances. awnings and lighting Display Areas Corner Shops Shelves Ledges Merchandise walls . sales staff and the brand associations that the store provides also affect the store image. Strip lighting and dump bins for merchandise brings the word ‘bargains’ to mind. However. providing a struggling grocery chain with a new lease of life to compete against other forceful players in the market (Atkinson. These are hence termed as complimentary factors. banners.
Colour and lighting Sound and aroma .
It is a term sometimes used as an alternative to merchandise display. the need to adapt to styleconscious twenty-first-century is as relevant to the way products are presented as the way a store environment is designed. Visual merchandising is more important in some retail sectors than others. However. including the choice of store layout. whilst discount grocery retailers are much more concerned with space efficiency. It also has a very close connection with the allocation of space within the outlet. . but these days is generally understood to have a wider definition encompassing all activities concerned with the presentation of the product within the retail outlet.Q 5. Write short note on visual merchandising. Answer: Visual merchandising is concerned with presenting products to customers within the retail space. For Example. the choice of fixtures and fittings. the method of product presentation. fashion and home furnishing retailers have always devoted considerable resources to displaying products in a visually appealing way. and the use of point-of-sale material. the construction of displays.
g. The objective of doing the store’s situational analysis is to determine where the store is at present and to forecast where it will be if the compete in the target market vis-a-vis its . its objectives the desired future positions that it wishes to reach. takes proper shape. Deciding the store’s mission and objectives The retail strategic process starts with the identification of a store’s mission for its existence. Once the organisation mission has been determined. It also deals with the issue of how the resources and capabilities of a store will be used to provide satisfaction to customers and how the store can competitors. e. Strategic retail planning process divided into the four steps as discussed in subsequent subheads 1. Briefly discuss the strategic retail planning process Answer: The strategic planning process. and hence the scope of retail store. To raise the store turnover by 20% in the coming year 2. after considering the HR potential and the unique Selling preposition (USP) of a particular store. g. The mission also involves the way of store’s functioning. A store’s objectives are defined as ends that the store seeks to achieve by its USP and operations. The mission of a store is. should be identified.a) External Store objectives: Those objectives that define the impact of store on its environment. to develop high degree of customer confidence by providing quality goods at affordable price. Situational Analysis. e.Q 6. b) Internal Store objectives: Those objectives that define how much is expected to be achieved with the available resources. identifying the goods and services that will be offered to customers. How a store will work and accomplish its day to day functioning. The store’s objectives may be classified into two parts.
Environmental protection laws 3. Demographics 2. Employment 3. Distribution of Income . Disposal income 4. Employment laws 5. Others iii. normally study in the context of external environment and internal environment. The difference between current and future position is known as planning.formulated strategies are implemented. Under external analysis retailer study these parameters. Energy Availability and cost 6.i. a. Business cycle 5. Others ii. Inflation 2. Legislation 7. Economic environment of retailing 1. The external analysis studies factors that affect the macro-environment of the retailing industry and the task environment. As the objective of conducting store’s situational analysis. Political/legal environment of retailing 1. Monopolies legislation 2. Taxation policy 4. Government Policy 6. Socio-cultural environment of retailing 1. External Analysis: The purpose of examining the store’s external environment is to study the opportunities and threats in the retailing environment.
Others iv. financial resources. Others v. Rates of obsolescence 4. Formulation of retail strategy . Information technology 6. Internal Analysis: The objective of studying the internal environment of its own store is to identify the store’s capabilities and weakness. Levels of education 7. Opportunities 3. 3. New discoveries and innovations 2.3. The store will try to increase its capabilities and overcome the weakness that deters the business profit. Consumerism 6. Social Mobility 4. Others b. Technological environment of retailing 1. Internet 5. physical resources and intangible resources. The resources for the purpose of examining are normally grouped into human resource. Internal environment of retailing 1. While doing the internal analysis. Lifestyle changes 5. Growth 2. Speed of technology transfer 3. the store examines the quality and quantity of its available resources and critically analyse how effectively these resources are used.
Retail positioning is made possible under three circumstances. . stores should take positive steps to reduce this resistance to change and to convince the employees that it in the long term will be beneficial for both the store and the employees. physical and service resources of a retail store.After analysing the store’s capabilities in terms of HR. Therefore. By differentiation of store’s merchandise from that of its competitors By offering a high level of service after sales at nominal cost By adopting low pricing policies 4. to achieve the formulated objectives. without timely and efficient implementation also requires scheduling and coordination of various retail activities. Strategy implementation and Control It is concerned with the designing and management of retail system to achieve the best possible combination of human. financial. Retail positioning from a retail store’s point of view is a step by step plan to create and maintain a unique and everlasting image of store in the consumers mind. a store manager formulates a retail strategy with regards to marketing retail positioning and retail mix. finance. The implementation of new retailing strategies sometimes require changes in the way of functioning and duties that can lead to resistance from employees. physical and intangible resources. Retail positioning is a plan of the store’s action for how the retailer will enter target market and will compete with its main competitors.
Write a short note on. 2.psychographic segmentation. How and when can demographic and benefit segmentation be used to maximum efficiency? .MBA Semester 3 MK0012 – Retail Marketing (4 credits) (Book ID: B1240) ASSIGNMENT. Briefly describe the criteria for effective segmentation.Set 2 Marks 60 Note: Each Question carries 10 marks What is positioning? Discuss various positioning approaches 1.
Discuss the components of CRM . 4. Briefly discuss the channel strategies adopted by the retailers. Differentiate between relationship marketing and transactional marketing 5.3.
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