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RETAIL MANAGEMENT

TEAM MEMBERS:
REVATHI.D MUTHUBALAKRISHNAN JITHENDRA VARSHENI.N ANUSHYA.S

Contents
Introduction Functions of retailing Location strategy Mall management Case study & conclusion

Introduction
Definition Evolution of retail management Present scenario of RM Retail formats

Definition

The word retail derived from the French word retailer meaning to cut a piece of or to break into bulk.

Meaning

Retail means cutting a piece of or breaking the bulk. It is the 2nd last channel in the distribution channel. It act like an intermediate between the manufacturer and the consumers. It provide 3 Vs to the customers that is VALUE VARIETY VOLUME

Evolution of Indian retail


Historical reach

Traditional reach

Govt supporte d

Modern formats
Exclusive brand outlets Super markets Departmental stores

Weekly markets Village fairs Melas Source of entertainment

Convenienc e stores Mom & Pop

PDS outlets Khadi stores Cooperative s

Neighborhood stores/ Convenience

Availability/ Low Costs

Efficiency/ Shopping experience

Current scenario
It is the most booming sector in Indian Economy after IT sector. It contributes 10% of the G.D.P and is estimated to show 20% annual growth. The current growth rate is estimated to be 8.5% and only 3% of the entire retailing business is in the Organized sector. At present there are 300 Malls, 1500 Super markets, 325 Departmental stores.

Phases of RM
Introduction Phases Decline Saturation Growth

Factors affecting modern retail


Changing

consumer

behavior Income of the buyer Strong economy Market growth Market opportunities

RETAIL FORMATS
Mom-and-Pop Mass discounters Ware house stores Category killers Department stores Boutique Catalog retailers E- Tailers Franchise Convenience stores Vending

Characteristics of retail
Format Target market Product strategy Pricing strategy Promotio n Emphasi s-sis Distributi on Service level Ownership Structure

Mom-&Pop

Mass specialty

General specialty

Competitive

Advertisin g Direct mail

Stand alone strip centre

Assorted

Individual

Mass discounter

Mass

General

Discount

Advertisin g

Standalone Stripcentre

Self

Corp plan

Ware house

Mass

General

Discount

Adverstin g

Stand alone Stripcentre

Self

Corp plan

Category killer

Mass

Specialty

Discount Competitive

Advertising

Standalone Stripcentered

Assorted

Corp plan

Departme nt store

Specialty

General

Competitiv e

Advertisin g

Shopping area Shopping mall

Assorted

Corp plan

Boutique

Specialty Exclusive

Specialty

Full

Selling

Standalone Strip centered Shopping area

Full

Individual

Catalog

Mass

General

Discount Direct Competit mail -ive

Direct Assorte marketer d

Corp structur e

E- Tailer

Mass

General

Discount Competiti ve Full

Advertisi- Online ng seller

Self

Corp structure

Franchis e

Mass

Specialty

Competit- Advertisi ive ng

Stand alone Strip center

Assorted

Contractual

Convevie -nce

Mass

General

Full

Advertisi- Standng alone

Self

Individual / Corp plan


Corp structure

Vending

Mass

Specialty

Full

None

Vending

Self

Functions Of Retailing
Retailing is supposed to provide : Product Utility Place utility Time Utility Ownership Utility

Retail Store Operations


The major Operations carried out by retailers are : Store Atmosphere Cash Handling Prevent Shoplifting/Safety and Security Customer Service Refunds and Returns Visual Merchandising Training Program Inventory and Stock Management

Retail Promotional Strategy

Retail promotion : Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm. Objectives: Increase sales Raise customer traffic Inform customers about goods and services Popularize new stores and Web sites Enhance customer relations Maintain customer loyalty

Retail Promotional Strategy


Elements of Retail Promotion strategy Advertising Public Relations Loyalty schemes Personal Selling Sales promotion

Retail Store Environment


Store Image is the overall perception the customer has of the
stores environment.

Space Productivity represents how effectively the retailer utilizes


its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space.

Elements Of Retail Store Environment


Visual Communications
Store Image And Productivity

Store Planning

Store Design

Merchandising

Elements Of Retail Store Environment


Store Planning
Allocating Space
# Back room # Office ,functional spaces

Shrinkage Prevention
# One of the important considerations when

Circulation

# Circulation is a type of store


layout in which counters and fixtures are placed in long

# services areas
# Non-selling areas # main sales floor

planning the layout is


visibility of the merchandise. # Represents merchandise

rows or runs, usually at


right angles, throughout the store.

# Wall merchandise space


# Floor merchandise space

that cannot be accounted for


due to theft, loss, or damage.

Elements Of Retail Store Environment


Circulation

Free Flow Layout

Grid Layout
Advantages wandering freely

Spine Layout
Disadvantages # Possible confusion # Waste of floor space

# Allowance for browsing and # Loitering encouraged

# Increased impulse
purchases # Visual appeal

# Cost
# Difficulty of cleaning

# Flexibility

Elements Of Retail Store Environment


Merchandising - Fixture Selection , Merchandise Presentation , Visual Merchandising

Straigh t Rack

Gondol a

Round Rack

Fourway Fixture

Wall Fixture s

Other fixture s

Elements Of Retail Store Environment


Merchandising - Fixture Selection , Merchandise Presentation , Visual Merchandising

Shelving Pegging

Hanging Stacking

Dumping

Elements Of Retail Store Environment


Merchandising - Fixture Selection , Merchandise Presentation , Visual Merchandising

SUGGESTION POSITIONING

COLOR IS KING

GLASS CASE

ESCALATORS

MAIN ENTRANCE

Elements Of Retail Store Environment


Store Design
Storefront Design Lighting Design Sounds & Smells

name and nature Hint exterior signage Store windows advertising changed often fun/exciting

Highlighting Displaying

Sounds Marketing tool Volume & tempo Smells Emotions Fragrances Odors

Elements Of Retail Store Environment


Visual Communications
Name, Logo & Retail Identity Directional & Departmental Signage

Category Signage

POS Signage

Lifestyle Graphics

Information Technology In Retail


Globalization Undergoing a transformation Complexity of retail operations IT managers and CIOs Integrated IT systems IT used in retail departments like Supply chain management Vendor development Merchandising Inventory management.

Information Technology In Retail


Technology challenges : Theft and Crime Product complexity Supply chain challenges Process complexity Staff Training Empowered Customer

Retail Buying Process


Merchandise planning

Assortment planning

Actual buying &


rearrangement plan

Category Management
Definition : Category Management is a distributor/supplier process

of managing categories as strategic business units, producing enhanced business results by focusing on delivering consumer value. Example :
General Manager (Merchandis e)

Category Manager (Jewelers)

Category Manager (Ladies apparels)

Category Manager (Ladies footwear)

Buyer 1 (Gold jewelers)

Buyer 2 (Silver jewelers)

Buyer 3 (costume jewelers)

Location strategy
Store locations Trading Area Types of locations

Choosing a Store Location


Trading area analysis Deciding on most desirable type of location Selecting a general location Choosing a particular site within the location

Importance of Location

Long Run
Influences the strategy The site is consistent with its mission, goals & target market for extended time Location to population trends Distances people travel Competitors entry and exit

Short Run
Impact on the specific elements of the strategy mix Product Mix

Store Location- Steps


Evaluate Geographic areasResidents, Retailers Determine where to locate- Isolated Store, Unplanned business district, Shopping Centre Select the decided location Analyse alternate sites in the specified retail location

Trading Area
Geographic Area containing the customers of a particular firm or group of firms for specific goods or services. Advantages: Consumer Demographic and socio economic characteristics are known. Focus of Promotional strategies is known catch new customers Anticipate competition Best no. of stores for a chain in a given area Geographic weaknesses are known Impact of other forms of retailing is known Competition, Financial Institutions etc.

Types of Locations
Isolated Store Unplanned Business District Planned Shopping Centre

Isolated Store

Freestanding retail outlet located on highway or street No competition Low rental costs Isolation good for convenience shopping Easy parking, facilities, Lower prices Disadvantages
Initial Customers difficult Travelling this far might be unviable High Ad expenses Variety missing for the shopper Costs: outside lighting etc not shared, high Store has to be built not rented

Business District
Two or more stores situate together in an unplanned manner Stores locate based on their interest not area Four Types

CBD SBD Neighbourhood BD String

Planned Shopping Center

Group of architecturally unified commercial establishments on a site centrally owned/managed, designed and operated as a unit based on balanced tenancy and with parking facilities.

Planned Shopping Center

Advantages
Well rounded assortment of goods/services Strong suburban population One stop family shopping Cooperative planning and sharing of costs Distinctive and unified image. Popularity of malls Maximization of foot falls Common ad costs Landlord regulations Higher rent and infra costs Highly competitive environment Domination by larger anchor stores

Disadvantages

Planned Shopping centers


Regional Community Neighbourhood

The Retail distribution channel


Direct channel Retailer channel


Ownership Pricing philosophy Product assortment Service level

Wholesaler channel Agent or broker channel


Resident sales agents Buying offices

Dual channel or multiple channel

How Channels Are Chosen

The products themselves The type of customer Market size The producers level of control The size of the producing company The size of the retailers

Types of Distribution within Channels


Exclusive distribution Selective distribution Intensive distribution

Channel Relationships

part of the team. Ideal cooperation Conflict channel leader or channel captain Strategic Alliances
Collaborative Horizontal Beneficial to both

Logistics

Definition : logistics as that part of the supply chain process that plans, implements and control the efficient forward and reverse flow of goods, services. Objective
Reduce inventory holding costs Improve profits

Retail logistics

Retail logistics is the organizer process of managing the flow of merchandise from the source of supply to the customer. functions.
Physically moving the goods from one location to another. Stocking the goods at the locations needed in the quantities needed. The management of this entire process.

CRM in Retail
Most important aspect Not utilized the full potential CRM game in the future Good news for customers & providers of CRM technologies and services. Data management Multichannel contact Social networking Brand identity and advocacy

CRM process

Collecting customer data

CRM in retail

Analyzing customer data & Identifying target customers


Identifying market segments Identifying best customers

Developing CRM programs


Customer retention Converting good customers into best customers Dealing with unprofitable customers

MALL MANAGEMENT

What is meant by mall management?

An advanced Building Management System Positioning a mall Zoning formulating the right tenant mix and its placement in a mall Promotion and marketing Finance management Facility management Infrastructure, Traffic and ambience management

POSITIONING A MALL
Positioning a mall refers to defining the category of services offered based on demographics, psychographics, income levels, competition in neighboring areas.

ZONING FORMULATING THE RIGHT TENANT MIX AND ITS PLACEMENT IN A MALL
Tenant mix refers to the combination of retail shops occupying space in a mall.

PROMOTION AND MARKETING


Promotional activities like food festivals, handicraft exhibitions and celebrity visits increase foot traffic and in turn sales volumes.

FINANCE MANAGEMENT
Professional financial management of a mall as a business venture is a must. Cash receipts and collection of income including rentals, service charges, car park receipts, electricity and other utility income

FACILITY MANAGEMENT
Facility management refers to the integration of people, place, process and technology in a building. It broadly includes infrastructure, ambience and traffic management.

STAGES

Ideation The Location of the mall Design - The circulation of traffic, ease, convenience, ambience and safety. Construction Optimizing cost and completion within deadline Leasing In house or outsourced Management A professional and experienced team Positioning & marketing stage as per the catchment area and demographics Operational stage Rent/ Cam collection, revenue generation. Malls a novelty in Tier II and Tier III cities Tier II and III cities face unique issues which are not seen in metros. Customer characteristics Less traveled No exposure to modern facilities

ISSUES FACED BY MALL MANAGEMENT


Over use and spoilage of toilets Parking Misuse of elevators and escalators which are being usedas free Joy-rides

High maintenance cost


Improper parking and confusion

People sitting idle for the entire day in air condition edenvirons.
Littering by customers

Spitting in the corners

INDIAN SCENARIO FOR MALL MANAGEMENT


Currently, there are very few designated mall management companies in India. Big retail chains such as Future Group and some large developers have set up their own mall management divisions that operate as their subsidiary companies. Developers were managing their malls in-house, which is expected to change

10 Internet Marketing Tips for Retailers

1. Send a Press Release One of the fastest ways to spread word about your store, and products or services, is by sending a press release. Media outlets all thrive on press releases every day.
2. Submit Product Feeds A product feed is simply a file generated from the website that lists product details such as photos, descriptions, pricing and even specials. 3. Share Your Knowledge Internet retailers have known for years that one popular way to share knowledge and gain extra exposure is by writing content for free distribution.

4. Create a Newsletter Newsletter and email marketing is key in keeping in touch with the customers you've manage to get in your store or on your website.
5. Submit Your Site Many new website owners submit their site to the major search engines and then sit back and wait for customers to come. While this is an important step for marketing online, website owners often overlook all the other directories available.

6. Grab Local Listings Google, Yahoo and other directories and search engines are creating tools for local shoppers to find your business, provide maps of location, hours of operation and even coupons. 7. Create Your Own Commercials If your store has paid for a print display ad in the local newspaper, radio and television marketing may be too costly. Video marketing online reach of their message to a larger audience for little investment.

8. Join Social Networking Social networking sites like Facebook, MySpace and LinkedIn may help retailers keep in touch with shoppers, make announcements

9. Offer an Affilate Program


The process in which a retailer pays one or more affiliates for each sale or customer gained as a direct result of the affiliate's marketing efforts.

10. Give Something Away


Retailers know this and have used free gifts and giveaways as marketing tools for decades. A big advantage of marketing online is the opportunity to easily and quickly offer contest, valuable content as promotional giveaways.

LEGAL ASPECTS OF RETAIL BUSINESS

Registration Act, 1908 (Registration Act) Indian Stamp Act, 1899 The Easement Act 1882 Employees Provident Funds Act, 1952 Contract Labour (Regulation and Abolition) Act, 1970.

CONT..
Employees Provident Funds Act, 1952 Employees State Insurance Act, 1948 Minimum Wages Act, 1948 Payment of Gratuity Act, 1972 Environment (Protection) Act, 1986 Workmens Compensation Act, 1923

FUTURE OF TRANSACTON IN RETAILING

THE DIGITAL REVOLUTION KNOW YOUR CUSTOMER INTEGRATION IS KEY

conclusion
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retail management is the sale by seller in small quantities to customer not for resale. The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. Therefore, bringing about operational efficiency at this last stage, and creating an environment so compelling that he looks nowhere else, is "Retail Management". RM- is an art, and necessitates employing several tools of logistics management for a complete end user satisfaction. RM - is getting to know the final user on behalf of the producer. RM - is a process of facilitation.

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