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DBA 1742 RETAIL OUTLET AND BRAND MANAGEMENT

UNIT 1- INTRODUCTION TO RETAIL OUTLET

• 1.1 Introduction to the subject.
•Retailing occupies a very eminent position in the economies of all modern societies. The retail sector is changing at an ever increasing rate and this is leading to a greater competition activity. As a result of acute competitor activity companies have to improve upon the way in which they approach retail marketing. •That is to say retail management has to be developed within the context of marketing approach. There are of course different ways of approaching retail market and learn retail marketing principles. Fundamentally you have to look retail marketing through customer‘s eyes. •It Retailers have a wider knowledge of markets (customers) and also the retail applications than the manufacturers. In fact they are in close contact with the customers for your company‘s products than the company itself. •A retailer is also a middleman in the channel of distribution. In fact a retailer is the last link in the chain of distribution. But he is an important link. In the transaction if the buyer is the end-consumer or ultimate customer then the seller is a retailer.

• Thus he is a merchant middleman between the wholesaler and the consumer. The basic feature of the retail trade is that the retailer purchases the goods from a wholesaler and resells them in small quantities to different consumers. • The retailer studies the requirements of the consumers, their likes and dislikes and accordingly stocks or replenishes the goods in his shop. He pays personal attention to customers, pleases them in many respects and is also very polite relative to other members of the distribution channel. It is the retailers who have to stick to the principle of right goods, right quality, right quantity, etc with a prompt after-sales service. Prompt and proper service to customers is the meaning in brief to retailing

1.1a Retailing
• Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery.

Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. In the U.S., retailers often provided boardwalks in front of their stores to protect customers from the mud. Online retailing, also known as ecommerce is the latest form of non-shop retailing (cf. mail order). Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

1.1b Retail pricing • The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
1.1c Retail Services • Behind the scenes at retail there is another factor at work. Coporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nation's largest retailers spend millions every year on instore marketing programs that correspond to season and promotional changes. As products change, so will a retail landscape. 1.1d Etymology • Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities of items.

1.1e Retail types
• There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done in town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 20th century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as Amazon.[3] In addition to the enclosed malls, there are also strip malls which are 'outside' malls (in Britain they are called retail parks. These are often comprised of one or more big-box stores or superstores

Los Angels. and if it sells the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. such as with telephone or electric power. which are where a person can place an item in a store. or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain) • Some shops sell second-hand goods. Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one company. • There are also 'consignment' shops.USA.• Non-traditional exterior of a super target store. • The term retailer is also applied where a service provider services the needs of a large number of individuals. especially in the case of a nonprofit shop. the public donates goods to the shop to be sold (see also thrift store). . • Local shops can be known as brick and mortar stores in the United States. In give-away shops goods can be taken for free. In other cases.

This is the entry phase and allows the retailers to compete effectively and take market share away from more traditional retailers. All depend on the nature of product. Also the imperfect merchandise of the manufacturers or excess merchandise of the manufacturers cause extra expenditure for the retailer to make things more attractive with fancy lighting and whatnot—generous return policies. In the process they become vulnerable to the new low price. They even measure performance more on return on investment basis than on profit-margin basis.• One of the theories is the ―Wheel of retailing‖. Some retailers exercise dominance on the manufactures while others employ strategic marketing plans and sophisticated tools for effective retail management. This results in higher operating costs and investments. • • • . This appears to be the case with many outlet malls. low margin new retailers. thereby becoming less efficient in the trading phase. Hence they will raise prices and margins as they are entering the vulnerable phase. consumer‘s behavior. low margin and low price operators. This theory states that new types of retailers appear /enter the market as low status. demand. Now as an intermediary the retailer has to forge his own marketing strategy. These new retailers gradually acquire more sophisticated and elaborate facilities as they meet with success. market segmentation etc. private dressing room etc. .

• Retailing is an important part of marketing and the marketing mix consists of elements like product.• The word retail is derived from the French word ‗retaillier‘ meaning cut a piece off or break the bulk. Place represents distribution and in retailing it is the different locations of the store where products are available. it is the retailer who introduces the product to the customer. presentation and promotion. people. price. Retailing concept of course is undergoing fast changes today. It simply means first hand transaction with the customer. Normally for any manufacturer selling through intermediaries. place. . Organizations sell their services and products through the retail outlets and get feed back on the performance of the products and customers expectations and suggestions from or through the retailers only. The retail industry has contributed a lot to the economic progress of many countries and has created a large potential for employment. It is actually a direct interface with the customer and coordination of activities right from the concept and design of a product till it is delivered to the end consumer followed by the post delivery services to the customer.

experts are now selling entertainment • • • .1. among others. continues to have trouble finding the right tenant mix. The existing convention center and the Shops at National Place opened in the early 1980s amid considerable fanfare and promises of great things to come. has lived up to those promises. But with the development slowing dramatically because of the commercial real estate bust in the early '90s. an enclosed shopping center at 14th and F streets NW. Not Serendipity. ― Strategy. as local real estate experts suggest. But that kind of speculation is fairly typical of the whimsical notions that have contributed to the decline of merchandise-oriented retail in the downtown area. The convention center proved to be too small soon after it opened and the Shops. Neither. It was in a similar planning vacuum during the 1980s that developers overbuilt the office market and forced dozens of struggling retailers out of the downtown area.2 RETAIL OUTLETDEVELOPMENT POLICY DECISIONS • The importance of a policy for retail stores development can be felt from the following example of the retail set up in the downtown Washington. however. Needed To Renew Downtown's Retail Core‖ Development activity in downtown Washington's east end may be an encouraging sign for merchants at the Shops at National Place.

Most of the members are businesses with less than 50 employees. international organisations and various social partners from the other side. nonprofit association of SME-s and self-employed performing a representative. its problems. business opportunities and business-related infrastructure in Estonia.General description • EVEA (Estonian Association of SME-s) is a non-governmental. • EVEA membership is open to any Estonian SME and currently includes 180 companies and self-employed. EVEA provides information about the situation in the SME sector. The main goal of EVEA is to create a favourable entrepreneurial environment in Estonia as the basis for economic growth and social stability. • Serving as an interface between the Estonian SME community from one side and the policy decision-makers. economic legislation. advocacy and lobbying function for small and mediumsized businesses as a social group. .

This part of Estonia is chosen due to the fact that that area is problematic in the Estonian state equilibrated development model. a city with modern urban environment. developing sustainable way of life and an actively cooperating Estonian city. and population density is higher than in the agriculture and forestry regions in South-Estonia. Nevertheless the territory of Estonia has small enterprises and incomes differ in regions – in industrial regions in North. . where the development model for the year 2030 is being worked out. safe.and Northeast Estonia income and salaries are higher. a city of youth where creativeness and open reasoning support development activity and innovation in enterpreneurship. creative and happy people Tartu is the intellectual capital of Estonia and the centre for promoting development in the whole of Southern Estonia: it is a university town with traditions. The vision of Tartu 2030: The city of active.000 inhabitants.2b Retail specific information and data • EVEA activities in the frames of the RENET project are focussed on the South-Estonian area. purchase capacity is bigger. which covers five counties.1. • The attraction centre for the people from South-Estonia is the city of Tartu with 100.

That representative organisation. thinly populated area etc.2d Planned RENET related activities • The second aim after the study is carried through to involve councillors of all five counties in October 2007 into the retail network development prognostication development for planning together ways of retail development.1. • Third aim was to form a representative organization with an own visual identity and Internet homepage for better solving problems standing between retailers of SouthEstonia. They should take into consideration the presumed area specific problems of South-Estonia as a partitioned landscape. the ―Association of Small Retailers and Service Providers NGO‖ (MTÜ VKTL) was established in 2006 and officially registered in March 2007. The development of the association will go on in three directions. .

2.e RETAIL INDUSTRY TRANSFORMATION • India has emerged as the most attractive destination for retailers in 2007. India leads the annual list of most attractive emerging markets for retail investment followed by Russia and China. . • Retail has proved to be one of India's largest industries. for the third year in a row. Accounting for over 10 % of the country's GDP and around 8% of the employment retailing in India is gradually inching its way towards becoming the next boom industry. According to the latest AT Kearney study.1. and has presently emerged as one of the most dynamic and fast paced industries with multitude of players entering the market.

.1.. They were willing to spend for comfort and pleasure. This is preeminently reflected in the contemporary retail sector development.." Source: BBC World Service. the concept of shopping has altered in terms of format and consumer buying behavior. • India retail industry is reflected in its sprawling shopping centers. . The tech generation not only bought in gadgets and gizmos but also big and deep pockets and an eye for all things expensive.malls and huge complexes offer shopping. ushering in a revolution in shopping in India.. multiplex.. • The new culture brought in by the Tech generation has not only changed the way Indians work but also how they play.And it has only just begun. entertainment and food all under one roof.in two years there will be 360 malls across the country..India's organized retail industry.. widely traveled and with deep pockets..2f The Spending Generation • India's middle-classes. Developers and promoters of malls believe the face of the industry is about to dramatically change..is poised to grow by 97% per year in the next five years to a staggering $24bn. are flocking to malls..

A furnishings mall is coming in Kolkata. Big cities or small towns to the obscure villages. • • .1.6 million square feet in Ahmedabad.5 million square feet in Ludhiana.6-million sq ft mall by Today Homes. has a jewellery mall and will soon have an auto mallBangalore will get an exclusive furniture mall. Another 90 million square feet is expected to be added by 2008 from 263 mall projects. And India's largest theme amusement park. at least three malls with similar dimensions are under development. 9. Ludhiana will soon have a 1.2g Shop till you Drop • 27 million square feet of organized retail space is currently available. In Mumbai. Two malls targeting foreign tourists will come up at tourist hotspots--Goa and Udaipur. on the suburbs of New Delhi. Unitech's Great India Place has a million square feet (sq ft) of retail space. Noida Entertainment City will be absolutely colossal standing upon 150 acres approximately. Shopping malls with over 1 million sq ft of are now common In the National Capital Region (NCR). 18 million square feet is slated to come up in Delhi as well as in Mumbai. The Mantra here seems bigger the better Specialized malls seems like another catching trend Gurgaon. the country is witnessing a spurt in extremely large retail spaces. at least eight malls are covering over 1 million sq ft each In Bangalore. Of these. The biggest mall of the world Mall of India will have 32 acres spanning a huge entertainment area and large city town squares offering a total retail experience. retail shopping development is coming to all parts and corners of India. 6 million square feet in Chandigarh and 3. With the retail sector experiencing a boom.

longer term in nature and evaluated on the basis of defined and measurable performance goals. and (2). incessant bottom line pressure. To understand why.3 STRATEGIC IMPORTANCE OF RETAIL OUTLET DECISIONS • As retail is evolving. so are the relationships between marketers and the companies helping them to leverage the medium. Project based relationships are giving way to strategic relationships that are broader in scope. . manage and continuously improve their retail programs. • These strategic relationships are helping marketers to respond to the pressure to more effectively create.1. it is important to understand the factors that are necessitating the change to the client/supplier relationship. (1) the growth and importance of the retail medium.

The proliferation of communications channels has diluted the ability of traditional media to hit the target. • Brand companies are looking to the in-store environment as a more important and integral component in their marketing mix. • Growing recognition by retailers that they themselves are a brand has raised awareness of the need to manage and distinguish their environments and the experience of shopping within their stores.3 a THE GROWTH AND IMPORTANCE OF THE RETAIL MEDIUM • Never before has the importance of the in-store environment been so elevated in the minds of brand marketers and retailers. . Brand equity is becoming the last vestige of competitive advantage and brand marketers are recognizing the retail store as a point of tangible contact between their brand and their target consumer. There is increasing emphasis on the creation of in-store programs that deliver a more fulfilling brand experience. bringing increasing attention on the retail store as the surest point of contact.1.

1. to the wide range of logistical issues related to implementing three dimensional marketing programs to a multitude of store doors.3 b BOTTOM LINE PRESSURE • Few industries are free from the pressure to reduce costs and retail is no exception. In turning over every stone to find cost saving opportunities. and over time as programs evolve. strategic purchasers have recognized that the end-to-end process for retail programs needs to be optimized – from design and development activities. Retail is a physical business and the scope and complexity of programs is growing. It‘s understood that there are efficiencies to be gained across the total supply chain. and that manufactured costs are only part of the equation. to production costs. . It is also understood that there are economies of scale to be realized between the programs that comprise a total retail presence.

These benefits. is managed as is the synchronization of a marketer‘s retail effort. • • . The use of multiple suppliers across multiple programs tends to undermine the coherency of a marketer‘s total marketplace presence and impact. Consistency of presentation. are being realized. A well-orchestrated retail plan assures that all programs are working in concert to maximize marketplace potential.1. including increased sales and decreased costs. with an emphasis on tighter collaboration among the partners and defined end-to-end processes. economies of scale. ultimately impact sales and consumer loyalty. Performance benefits. across channels and across geographic borders. They are difficult to achieve without vested partners. along with improved confidentiality of brand and retail strategies.3 c BENEFITS OF NEW RELATIONSHIP MODELS • Traditional client/supplier relationships inhibit the ability to leverage the full potential of the retail medium. marketers are moving toward strategic relationships with a single partner or a core group of agency/supplier partners. as a focused team armed with strategic information can create a stream of innovations that are more relevant and targeted than speculative efforts. and ultimately the profitability of their retail effort. For this reason. Innovation is enabled. the effectiveness and efficiency of their processes.

Building a retail presence requires planning and collaboration. One shot deals no longer make economic sense. Finally. as a streamlined process allows them to focus on their core business while their partners focus on the creation and management of their retail presence. The retail environment offers a great deal of customer convenience in so far as it tries to provide for consumer needs precisely and on time throughout the country. so will the potential of retail as a high performance marketing tool. where a supplier given only a limited view of specific activities can not. A partner with a view of the total supply chain can respond to the expectation to optimize efficiencies and to continuously improve processes. a marketer‘s internal capacity is improved. As the relationships between marketers and their agencies improve. Within the context of a defined partnership. It is a vital element in triggering consumer spends. Of course a bit of training will be an added advantage • • . Retail is changing for the better. and managing profitability requires a long term view. and activities can no longer be viewed in isolation.say in different levels. speed to market is accelerated as the learning curve is diminished and the impact of awkward hand-offs is eliminated. The growth in retailing will generate tremendous employment opportunities for both professionals and non-professionals.• A long term strategic supplier is in a better position to identify cost saving opportunities than a one-program supplier. In fact maximum number of people with most minimum qualifications can be employed in the front line operations.

The outsourcing by retailers can contribute to the growth of many small and medium industries. • . However we have to adopt to the new system for providing convenience and economy to customers and also to meet their changing needs and behaviors.Organised retailing can bring about a telling change in the supply chain of agriculture and other rural products. variety of products. It gives an overall satisfaction to the customer or his family and friends who visit the store. Retailing can remove inefficiencies in the distribution of consumer goods. better ambience and convenience. better prices or competitive pricesall at the same time.1. While we attach so much importance to organized retailing. It first of all generates employment directly and indirectly through supply chain.3 d IMPACT ON GDP AND ECONOMY • A many fold effect on GDP is possible because of retailing. opening the doors to international giants directly or indirectly. it should not be at the cost of local family run small retail set-ups or the kirana shops. A well organized retail store can give better products. The contribution of retailers to tiny and cottage industries along with huge industries is astonishing.

Nilgiries. In US. a considerable portion of employees in US. in India itself. UK etc are part time employees. UK. Stop and shop. FRANCE etc the retail industry employs around 20 t0 27 % of the workforce.1. Further today retailers have started moving internationally and have even joint ventures. Odyssey etc. More. A retailer acts as a gatekeeper within the channel of distribution. In unorganized retail sector. especially in India. Reliance fresh. The consumers stand to benefit as they get what is needed at relatively economical cost. CANADA. A retailer does not simply sell what the supplier can give him nowadays. Some retailers have left lasting impression and image in the minds of consumers by their ambience. Conditions are far better with Spencer‘s. Pantaloons. including students.3 E IMPACT ON EMPLOYMENT AND OTHER SERVICES • Retailers play another important role in society when they employ different levels of people and with status today. The retailer today exerts pressure on the suppliers on wanted brands and need based stocks only. service and display of social responsibility that many consumers are not only retail-brand loyal but also are ready to buy their other non-related products like financial services etc. Two thirds of the labour employed by retail is female force. the employees were paid far less and worked for longer hours. • . Food world (now Spencer‘s).

census graphs etc. shelf space getting rare and the customers multiplying.4. geographical map. it has become imperative to assess whether the sales team and distribution network cover all the outlets in the city in an effective manner. In a market where brands are proliferating. A territory with smaller population with needs and purchasing power supported by its behaviourial characteristics can be a better one than the one with large.1 The Need for a Retail Outlets Mapping • Retail marketing has undergone a sea change in the last couple of years.4 Retail outlets mapping and performance management 1. less purchasing power. not ready for challenging cultural advancement etc. of the retail outlets referring to roadmaps. . government records. atlas. The management of the performance of these outlets will carry and justification only with the help of thoughtfully prepared maps that are result oriented. price sensitive territory with a huge population. That can help you to analyze the data for performance management. Are you certain that the territories covered are by hunch or fully supported by scientific survey and ststistics? Did you consider the demographic factors while allowing the different retail outlets to perform? Please do not be impressed either by the largeness of the area or by the hugeness of the population.It therefore becomes necessary for any supplier to prepare a map.1.

Very few. While.‖ based on the data being regularly collected by IRS. barring a few experts. marketing and consumer economics refers to SEC categories. for example. having more spending power than most executives would fail to make the ‗high‘ grade. • Although. SEC continues to remain universally referenced classification of consuming classes. if they are not well educated.RETAILOUTLETS IN DIFFERENT CULTURAL STANDINGS • Almost every research report on media. we explain below the basis of classification of different SEC categories and their relative importance in relation to marketing/ retailing potential . therefore. knowledge about their real meaning. there is little. These categories are important because they help in effectively segmenting markets and targeting relevant communication to core consumers for products and services. MRUC & Hansa Research have come up with a new concept of ―Household Potential Index (HPI). may be aware that shopkeepers/ traders though affluent and. if any. to reclassify consumers. a detailed postings on HPI will soon follow. • Words like SEC A and SEC B are freely tossed around without realising that.

It is 35% in Philippines. The other countries like Western Europe. in more than 2.40%and 40% respectively.6. Brazil and Argentina have 70%. . Canada.5 trillion. According to US department of labour about 23 million people are employed in retail industry in US. Thailand. It accounts for high figure of US&7. 50%. • A large share of GDP is from service sector in developed countries and retail sector is a major component in this. According to a report of Meckency & co 80% of retail business is organized in US.6 ORGANIZED AND UNORGANIZED RETAIL OUTLETS 1. 25% in Indonesia.1 ORGANIZED SECTOR • The pace of development of retailing varied between developed and developing countries. Germany and even in France.1. Malasia. You can find that retailing is very much organized in developing countries and are still very much disorganized in developing and under developed countries. 15% in South Korea and only 10% in China. As a result the employment opportunity offered by retail industry is very large.1 million retail outlets.50%.UK. Thus in India retailing is organized only to the extend of 4% while it is around 60 to 80 % organized in US .

• In organized sector retailing is very highly customer centric. 400. Goenka‘s. Big bazaar. The nuclear families are on the increase. The Indian mind is fast catching the value for money concept and this is an impetus to retail growth in an organized way.000 crores . better and more beneficial application of IT. services.200000 crore in 2007.( report of CMIE). • . the Indian retail business in organized sector forms around 2% only.lower prices and the benefits hitherto not obtained. displacement and replacement to break monotony. RELIANCE. Subhikha. Also TATA. This pace of growth is phenomenal supported by a one billion population consisting of 30% of BPL and 70% 0f paltry income holders. People wanted an easy access to goods and also to get everything under one roof. Swarovsky etc. with continuous thrust on innovations in products. Margin free. benefits. categorizations. Campell.But it is around 10. more convenient methods and processes for customer retention as well as relations etc Organized retailing strongly believes that customer is the king and hence the necessity for user friendly application of internet. data ware housing etc. Domino‘s. Macdonalds. Wallmart. tracking. In fact a recent survey shows that most modern stores account for only about 0. all professionalized. increased pressure of work for men and women inadequacy of time for commuting. PIRAMAL etc have greatly invested in most professional retailing. more etc is the evidence for such expansion.000 crores in 2007. Economies of scale are the major contributor for this. web . backlog or overload of work etc has all forced priority to convenience and speed for consumers in developing countries including India. KFC. pleasant ambience. working women are on the increase. The contribution of organized sector was Rs 20. The organized sector has attracted many gigantic foreign retailers like Marks and Spencer. Samsonite. The retail business in India in 2000 is around Rs.6% There are at least two major factors that the growth of organized Indian retail market.erp. This has offered an excellent opportunity for retail business to become more and more organized. store planning modifications. designs. BIRLA.000 crores in the year 2000 and it is Rs. intranet. processes. Inspite of the huge potential for growth.

It can be commented that India has the lowest per capita retail space in the world. portable shops on carts or bicycles. whereas it is 18 sq. (Kurt salmon associates).1. Most of the stores are kirana shops.ft. About 96% of the retail outlets have less than 500 sq. durability. These retail outlets are all independent. buys back arrangement. India has an average 10 outlets for every 1000 people. The per capita retail space in India is 2 sq. that too at particular places only earmarked for that purpose. single man shop. goods return etc were simply impossible in unorganized retailing. It is estimated that there are about 14 million retail outlets of various sizes and formats in India. in US. door to door manual carriers etc. The quality.ft. Retail and whole sale took place weekly or bimonthly both in rural and urban areas even today. family owned shops. place and time.ft. value for money. not providing much values and benefits to customers.6. . size. UNORGANIZED SECTOR • India is an example for unorganized sector of retail trade. modifications. Limited choice was a big hurdle in unorganized retailing. replacement. Thus India has the largest number of retail outlets and they contribute to 96% of the retail sales.2. Most of the shops sold whatever they had than marketing what the consumers wanted at a reasonable price.

. shopping streets with few or no houses. In commerce. RETAIL OUTLET SURVEY 2. Online retailing. • . but are mostly found in the central business district.S.[1] Retailing may include subordinated services. Purchasers may be individuals or businesses. in small or individual lots for direct consumption by the purchaser. a retailer buys goods or products in large quantities from manufacturers or importers. and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. retailers often provided boardwalks in front of their stores to protect customers from the mud. also known as e-commerce is the latest form of nonshop retailing (cf. In the U. either directly or through a wholesaler. or in a shopping center or mall. Shops may be on residential streets.2. or by post. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. such as a department store or kiosk. Shopping streets may be for pedestrians only.1a Retailing AS AN ACTIVITY • Retailing consists of the sale of goods or merchandise from a fixed location. mail order). such as delivery.

which are where a person can place an item in a store. . In other cases. In give-away shops goods can be taken for free. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. and if it sells the person gives the shop owner a percentage of the sale price. such as with telephone or electric power. Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain) • Some shops sell second-hand goods. especially in the case of a nonprofit shop. the public donates goods to the shop to be sold (see also thrift store). The shops may be owned by one company. • The term retailer is also applied where a service provider services the needs of a large number of individuals.Non-traditional exterior of a Super Target. Jacksonville • Local shops can be known as brick and mortar stores in the United States. • There are also 'consignment' shops.

• Continuing the robust growth of the organised retail in India. the industry raked in US$ 25. according to the Credit Rating and Information Services of India.44 billion turnover in 2007-08 as against US$ 16. • The Indian retail market. according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Furthermore a report by PricewaterhouseCoopers foresees India and China to continue as the top sourcing hubs in retail and consumer sector in the coming years.2 EMERGING TRENDS IN RETAIL OUTLETS • India tops the AT Kearney's annual Global Retail Development Index (GRDI) for the third consecutive year. maintaining its position as the most attractive market for retail investment. modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. which is the fifth largest retail destination globally. Simultaneously. a whopping growth rate of 49. .99 billion in 2006-07.2.73 per cent.

A report by Images Retail estimates the number of operational malls to more than double to over 412 with 205 million square feet by 2010 and further 715 malls by 2015. Indian cities are witnessing a paradigm shift from traditional forms of retailing into a modern organized sector.2. on the back of major retail developments even in tier II and tier III cities in India. says Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia. Indian retail is expanding at a rapid pace. strong income growth and favourable demographic patterns. is expected to touch 40 million square feet by end-2007 and an estimated 60 million square feet by end-2008. from a meagre one million square feet in 2002. . Mall space.2a Retail space • Driven by changing lifestyles. • Alongside.

mobile penetration was much lower than it is now) were allowed in I actually love these malls – I like to window shop as much as the next person. Apparel. one of the very first malls in Mumbai. India. the crowds became so unmanageable that they had to restrict entry --. But I think the phenomenon that has overwhelmed us Indians is the ‗mallification‘ of our metros. when Crossroads. Grocery. are now all seeing huge sales via the spanking new ―stores‖ (they used to be called ―shops‖ when they were mom and pop – now you can‘t call them anything but ―stores‖ J ). Every major retailer is gunning for a scale that gives them sleepless nights • .2 b The Indian Retail Scenario – The Charm of Novelty battles it out with the Charm of Simplicity • So now our metros are definitely getting overcrowded with new retail formats. its probably close to 30-40% (or more). Books & Music.2. was opened. If all of India has a 3-4% organized retail percentage figure – in metros. • • In fact.only people with cell phones (in those days. now even Medicines. I think the lesser crowded malls make for nice weekend jaunts for the kids where you combine your necessity shopping with fun and food.

Some of the trends for the IT in retailing are 1) Smart card—Equipped with a silicon chip. distributing and even for designing and modifying the design etc by retailers and of course by suppliers/manufacturers. A number of new IT innovations lie in store for shops. advertising.c FUTURE TRENDS • IT has already had a tremendous effect on the retail sector. these cards replace other forms of transaction.2.2. communications and logistics. Internet is used for selling. Because of its ability to transform information inexpensively and quickly. Avoiding the long ques in the bank. Internet is an attractive and more able substitute for traditional functions of the intermediaries. provide stock control etc. Even theft and unauthorized use can be detected by these cards. internet has a significant effect on sales transactions. It has already revolutionized the banking industry which 20 years ago enjoyed got reshaped by ATMs. The technology is well developed that smart tags are there /bar codes etc that can tell full information about the supplier. The new IT products are being used along with the internet that is exciting adding value and new experiences to consumers. monitor the supply chain. The Smart cards are more secured and carry a lot more information than conventional cards. retailers have to invest in equipments only. Smart cards enable consumers transfer money quickly and provide accurate and secure cash free transactions. .

departmental stores and specialty stores. • Apart from the above consumers are also influenced by factors like migration of formats. mail order stores etc. telemarketers. differentiation of services.• The important trend today is that retailers decide the type of products. departmental stores. hyper markets. Of course they normally lack product depth and extra services. categorization. This ends up in the formation of the so called discount stores. Thus Tesco in Briton operates super markets. become a specialist product category. • The next important trend is the retailers carve a niche for themselves. These are applicable to many retailers like Bata stores. departmental stores. unusual services followed by strategic pricing. . mail order stores. the very format etc. More. convenient stores. Spencers. • By migration of formats what is meant is that many retailers are adopting formats of super markets. cross-border movement and mergers and acquisitions of firms. This differentiation results in intensified competition for products and services. • The next trend is the formation of hyper markets when a wide variety of goods and services are offered at the most competitive prices. services to be rendered. hyper markets. The offer becomes standardized and price becomes the most significant selling point. Reliance etc. neighbourhood stores. web-enabled marketers etc. These are the super markets.

making this segment of consumers one of most profitable and informed.2. Not Needs • Frequent leisure time shoppers spend an average of $113. those who take a leisure shopping trip once a month or more. Market Intelligence & Insights at MARS.33 per shopping trip. Their semi-annual Shopper Mindset survey revealed that frequent leisure time shoppers. According to Anne Howe.2. frequent leisure time shoppers. SVP.2 a Shoppers Focus on Wants over Needs • Frequent leisure time shoppers are a retailers dream comes true according to BIG research and MARS Advertising.2 Frequent Leisure Time Shoppers Spend More per Trip 2.2.2.2 b Frequent Leisure Time Shoppers Focus on Wants. "are more relaxed and have either researched their planned purchases online or rely on instore personnel or point-of-sale material as information sources before purchasing." . spend considerably more per leisure trip than other adults over 18 2.

5% 2.86.0% • Have text messaging on their cell phone -.0% Providing an informative and engaging in-store environment could result in incremental sales from this shopper segment. and not as likely to say that traditional media messages are influencing their purchase behavior." The following references are given so that you may go to those web-sites and get more information on latest retail trends .2. "This shopper is way more likely to respond to a myriad of in-store influencers.0% • Average Age -.2% • Made Purchases at Discount Stores -.26.54.22.2. This is good news for marketers who have been using effective in-store messaging as part of promotion programs.32.2 c What‘s In the Leisure Time Shoppers' Shopping Bag? • Apparel -.31 • Want to relax and get away from the house -.6% • Entertainment. Leisure Items and Electronics -.0% • Have cell phones -.0% • Wander up and down aisles when leisure shopping -.3% • Bought apparel on last leisure shopping trip -. And it reinforces the message to retailers that consumers are looking at more than price while in the aisles." Howe suggested.56.40.2 d Frequent Leisure Time Shoppers Statistics • Female -.61.2% • Health and Beauty Aids -.40.38.2.

• • • • "A number of trends are continuing and intensifying – some that dramatically affect the way we think. countertrends emerge. and as individuals. Understanding the consumer is the first step in creating products that are on target. "A social trend becomes a component of a culture when it lasts five to eight years or more – bargain hunting. and polarization of attitudes. the nation and the world adjust to change. observes Hallmark's trends expert Marita Wesely-Clough. Strengthening and Evolving Consumer Trends • While attitudes. And those freedoms offer lots of opportunity for people to jump on bandwagons. and is essential in developing relevant products that help people express their emotions and strengthen relationships. Eastern influences. live. countertrends can surface. some trends become cultural characteristics. "Of course." Wesely-Clough says." Wesely-Clough says. and shop. have and express. which carries with it freedoms to be. for example. perceptions and behavior continually evolve into trends. for example. the desire for more and more.2.2. strengthen and eventually supplant an established cultural trend." . preventing society from becoming static. do. although a culture may share an overriding belief that directs its path – democracy.3. "Of course. shifting boomer behavior. Other strengthening trends include the pursuit of happiness.

4. 2. There will be increasing pressure on the part of well-to-do consumers to distinguish themselves from the masses. goods and services. will increase the belief that happiness is attainable. Watch these consumers go for the high end on products. People will be searching for the most upscale and most fabulous handbag.2. Using new discoveries via the study of well being from "the cup is half full" perspective. . efforts will be made to teach how to become happy.2. Though points of view may vary on how happiness is achieved. where they travel. Handcrafted and customized. or rare. Evolving Trends and Counter Trends for 2005 and Beyond 2. as they search for the most unique in what they want to drive. vacation. what they choose to wear. suit. almost museum quality super luxe items will be in greater demand by high-end consumers. car. continuing research of "happy" or normal people rather than "abnormal" people.4 a THE PURSUIT OF HAPPINESS Recent studies in the realm of positive psychology.2.4 b OSTENTATION NATION: More is More Watch for the continuous and intensified drive for aspirational luxury. there will be broader acceptance that a true state of well being is accessible to everyone. or even what one considers the state of happiness to be. dog.2.

textiles – in fact.2. unique. . architecture. new. giving back. they look to the past for reference. As companies become more focused on giving consumers something new.2.2.2. Lucky are those companies that can draw upon their own past product successes to generate present-day profits. fresh.4 d PAST PERFECT Consumers‘ insatiable desire for new. to create new reality-altering atmospheres and sturdy structures. the mundane will welcome a look to the future with new technologies. 2. Boomers approaching retirement will lead this trend. for example. family. their legacy. find freedom from the common. furniture. to insure they have time to invest in what matters – friends. new will drive fashion. 2. all visual disciplines – to mine past design practices.4 c Counter Trend: Enough is Enough That the standard of living in the United States is far better than many other places fosters an understanding that we "have enough." Watch for people of all ages to scale down and simplify. new uses and new materials – light-emitting diodes (LED) and translucent cements.4 e Counter Trend: The Power of Now Those wanting to break away. Watch as companies draw upon days gone by to bring about the "new" longed for by retailers and shoppers alike.

surfing and shopping. It's more than ads. And everyone benefits. The relocation of manufacture had brought prices down over the previous 15 years and restrictions and taxes on international trade were generally headed for extinction. Our predictive modeling gleans vital data from this ecosystem to target messages that pique interest and prompt the consumer reaction you seek. Web sites. intuitive.5 CONSUMER TRENDS • Behold aCerno — the only predictive targeting ad network that drives transactions.2.2. Your best prospects are delivered flawlessly and efficiently to you. online advertising unearths greater market potential by delivering predisposed prospects. aCerno understands and capitalizes on the symbiosis among brands. aCerno helps marketers motivate consumers by always putting the right message before their eyes when and where they're receptive to your message. finds prospects who are in-market for your product or service. With aCerno. insightful targeting to consumers who are looking for what advertisers offer. subtle differences between the ways each exporting country is treated has made understanding trade restrictions increasingly difficult. This briefing reviews apparel trade over the last 12 months and looks at how to deal with the major sourcing issues in 2008. smart. it's relevant. By 2007. However. • • • . propels brand metrics. and predicts what they are interested in. retailers and consumers. the overwhelming majority of apparel buyers and sellers had adjusted themselves to a world in which virtually all clothes sold in affluent countries were assembled in poorer countries.

as well as architectural and artifactual elements. Fitch Associates. SOUNDS AND SMELLS • Since the concept of "atmospherics" was introduced in the early 1970s. and visual elements of the store atmosphere to produce desired images and to increase sales. included numerous examples of how retailers use sounds. Gebhardt. This first presentation. both customers and employees. The examples included a tie store's use of leather and tobacco scents to create an atmosphere in which female gift buyers are comfortable in purchasing men's ties and a music store's use of audio engineering to create a store auditorially segmented by department • . These elements present a multitude of possibilities including ambient cues such as color. This session began with a detailed overview of how some of these environmental elements are being used by professional store designers and architects to create desired retail settings. smell. music. The objective of this session was to showcase state-of-the-art research and practice in retail atmospherics. and textures. and to identify research opportunities in this emerging area. The term "retail atmospherics" refers to all of the physical and nonphysical elements of a store that can be controlled in order to enhance (or restrain) the behaviors of its occupants.ATMOSPHERIC FACTORS IN THE RETAIL ENVIRONMENT: SIGHTS. "Theater of Retailing: Selling Through the Senses" (Randall E. lighting. scents. interest in understanding and predicting the impact of the environment on consumer responses. Columbus. but growing. OH). there has been a slow.

Machleit. James J. Rather. discussed the results of a laboratory experiment which manipulated both retail density and music loudness. Eroglu). Potential moderators and mediators of olfactory effects were also discussed. The primary response to olfactory stimuli was said to be approach/avoidance behavior. "The Impact of Atmospheric Music and Retail Density on Retail Crowding Perceptions and Their Consequences: Does Song Augment the Throng?" (Karen A. • The final presentation. "Olfaction and the Retailing Environment" (Terence A. .• The second presentation. Evidence was presented that olfactory stimuli have the potential to attract attention and motivate processing. these independent variables did not directly affect other customer responses. along with a discussion of the theoretical explanations for the observed effects of such stimuli. Kellaris and Sevgin A. however. Pam Scholder Ellen and Paula Fitzgerald Bone). gave examples of how olfactory stimuli are being used in the retail environment. Shimp. outcome responses such as the feelings experienced while shopping and store satisfaction are influenced by the level of crowding experienced by the shopper. and affect salesperson/customer interactions. The results indicated that both loudness of music and customer density increase subjects' perceptions of retail crowding. enhance mood states.

Although practitioners and environmental psychologists have long been aware of the impact of environmental stimuli on human behavior. often in artificial settings which. Of particular note was her observation that retailers make store changes on a number of dimensions and then measure the impact on variables such as store traffic patterns and sales. is the only realistic option available to most researchers. • In conclusion. unfortunately. consumer research has lagged behind in this field . academic researchers study only one or two aspects of the environment at a time. Gardner. this session intended to contribute to consumer research by identifying opportunities for research in the area of person-environment relationships in marketing contexts. Meryl P. provided insightful comments with respect to all three presentations.• The session discussant. To contrast.

Since then. Experience • Shari's background includes working in various sectors of the retail industry and her roles have ranged from cashier to store manager. She has participated as a member of several retail round-table discussions with the National Association of College Stores and served as an officer of the Marketing/Management Advisory Committee at Ogeechee Technical College. on to shop owner. Besides operating the specialty retail business she and her husband began.Shari Waters • Shari Waters began her journey in retail more than 25 years ago when she agreed to work Saturdays in a sporting goods store for a family friend. she has worked her way up through the retail ranks from sales clerk to store manager. . Shari also works as a freelance writer and consultant for other retailers and small-business startups.

I hope this site offers the necessary tools. resources and support you need to successfully start and operate your retail business. From writing orders and managing employees to stocking new inventory. the job as a retailer is never done and there is always room for improvement.From Shari Waters • I understand that being a shop owner/operator requires an extraordinary amount of skill. . You have many hats to wear and must know when to wear which in order to be successful.

What may turn off one customer may not bother another. Keeping our stores neat and clean is not only easy to do. Here are ten ways your store may be turning off customers: .Top 10 Ways to Turn Off Customers • customer service tips • retail atmospherics • As individuals. As retailers. look harder. Do any of the following situations exist? If not. • Take a look around your retail store. we can't afford to turn off a single customer and image is everything. we all have our own little pet peeves. Your store may be exhibiting some other offenses you haven't noticed until now. it is generally an inexpensive way to attract customers and create a pleasant store atmosphere.

Retail store restrooms should always be sparkling clean. 2. 3. trash receptacles and clean it daily. inappropriate or of poor quality can run a positive shopping experience. it is also a good step towards loss prevention. soap. Make sure to stock the bathrooms with plenty of paper products. Music that is too loud. Take a quick look for out of place items after each customer uses the dressing room. tags and empty packaging goes beyond creating a neat store appearance. Loud Music • Playing music in a retail store can help create a certain atmosphere for our shoppers. . Dirty Bathrooms • This customer pet peeve clearly deserves the number one spot on this list. Messy Dressing Rooms • Keeping the dressing room area free of discarded hangers.1. whether they are open for public use or not.

stained flooring and ugly ceiling tiles can turn off many shoppers. The same goes for shoppers of a feed supply store. However. . 6. accidents happen. It is too simple to print a sign from our computers or use pre-printed signs. Replace stained portions of carpet and ceiling tiles where possible. Make sure all customer areas of the store have ample lighting and take into consideration shoppers with aging or less than perfect eyesight. there is no excuse for displaying handwritten signage. Sweeping. However. vacuuming and mopping should be done on a regular basis. 5. Offensive Odors • Customers understand if they visit a lawn and garden center they will have to deal with the smell of fertilizer. Consider hiring a professional cleaning crew to polish tile floors. our customers don't have to see them. Dirty carpet. shoppers don't want to smell an employee's lunch drifting across the store. Stained Floor or Ceiling Tiles • It is true. Printed signs simply look more professional and signs with hard-to-read handwriting can be a customer turn-off. Burned-out or Poor Lighting • Replace any burned out light bulbs as soon as possible.4. Use neutralizers to combat any offensive odors. Your store should be well illuminated for all customers 7. Certain odors are understandable and may even appeal to the customer's sense of smell. Handwritten Signs • In this era of technology.

Lack of Shopping Carts/Baskets • Your type of retail shop may not require a shopping cart or your store may be too small. 9. a disorganized checkout counter can lead to theft. 10. returned merchandise and sloppy work areas behind the checkout is a huge customer turn-off. Cramped spaces can ruin a shopping experience and turn off a customer. This particular area where a customer‘s financial transaction is taking place should not show any signs of disorganization. Be sure your store is designed to allow adequate space between aisles and keep walkways free of merchandise. Crowded Aisles • Consumers like a selection but not if it means sacrificing comfort while shopping.8. Keep those register areas neat and tidy. Like messy dressing rooms. but there's not a single type of retailer that wouldn't need at least some sort of shopping basket. be sure to have an adequate supply of shopping carts or baskets on hand . Disorganized Checkout Counters • A stack of hangers. If you hope for your customer to purchase more than one item in your store.

It implies that a fair knowledge of the consumer behaviour of the area is a must. layout. sound pricing policies. the retailer has to weigh the pros and cons for a long term competitive advantage to be derived out of the best location. Investment requirement—whether it is high.very high or affordable with the present expected turnover.The location is dependent on the decision of the consumer ―where to shop‖. rate of growth of multiple retailers etc 4. location and location only. whether new regional shopping areas are there. 6. 3. There are restrictions due to governmental rules on the availability of sites. Consumer choice. This true to a great extend but other factors like selection of merchandise. However the selection of site its acceptance or rejection are supported by many issues like 1. 2. The opportunities for planning permission are also politically controlled . power of retailer brands. Property assets—selection of the property in a site has long term implications in that the value of the property in the days to come may surpass even the business turnover. motor car usages increase. 5. Since the location has strategic importance.2. rental costs time period to recover the costs are to be considered.4 REATAIL LOCATION STRATEGIES • It is often said that three major things that matter for retailing are location. presentation and such other retail strategies also play an equally important role in the successful retail operations. Thus it is the good customer service policy that makes the customer to repeat visit the stores for purchases of many items. Consideration of trends: Any changes in the social structure or trends has to be a factor— people taking more interest in out of shopping experience.

The rollout plan defines the types of location selected on the basis of the retail store format. Has stores that are generally found in clusters based on product categories. Has an array of retail stores in small sizes. It is the method of selecting the right location and an appropriate site for the store with the catchment definition for each store.• An important feature of store planning as earlier said is the location planning which can be followed by selection. • High real-estate rentals . Very busy with customer traffic. – Types of locations • • • • High street location.

witty aphorisms to describe the Net. a cacophony of voices using it for a multitude of different reasons with the different providers and users not understanding each other. It is democratic but. cyberspace. they no longer dominate discussions and debate on the Net. there are many who say it is not free e nough. as is becoming increasingly clear. • . knows no age barriers and does not distinguish between time. It is a medium with cultures that are constantly in conflict with each other. as they see the Internet as a threat to their authority. While the Internet. it is becoming a society unique to itself. space or borders.2. The Internet is a growing phenomenon that.5 INFORMATION TECHNOLOGY IMPACT ON RETAIL OUTLET MANAGEMENT • This chapter will deal with some of the latest trends on the Internet as well as with speculations regarding the social impact of the evolving information and communication technologies. The Internet is an ubiquitous but not harmonious medium. as will be shown. Information technologies are now central to our lives. but healthy and diverse in its culture and ethnic characteristics. many governments would like to place heavy restrictions on it. While the voices demanding a totally free commons in this new world called cyberspace are still there. Rather. It is potentially the most dynamic tool for democracy we have evolved while also having the highest potential for abuse. At its present stage of growth it could be likened to the Tower of Babel. Others say it is too free. There are no longer easy. is a free commons. or to use a more germane term. The anarchistic elements of the Internet have been subsumed as the corporate interests rise and dominate the medium.

• Technological growth is now so immense. – electronic commerce (as governments are now moving into electronic transactions). it is now a whole range of subset of subjects. – information management and how management of information is becoming crucial in order to be an effective administrator in a high tech world. – the potential social implications emerging as a result of current technological innovations and evolution within our society. This chapter will then look at some trends from four perspectives: – how technology and people are merging and integrating as a new entity in society. legal. as it has become obvious that Information Management is the key to effective use of the Internet and for the administration of any form of information technology. . Some of these issues will be dealt with here. to name a few. With that growth has come many social. cultural and political issues: privacy. Rather.• The Internet is in a state of constant growth. that it is not possible to talk about it as simply one subject. and so embedded in our society. affordability and accessibility. intellectual property. censorship.

This merging of modern technology and Mankind is quickly taking place in our working and personal lives where IT and Communication technologies have become an intricate part of daily life in the industrialized nations of the world. A central question for governments is going to become: to what extent do we continue to have the major role in society in the delivery of information based services? . • Governments must struggle with the fact that the new communication technologies not only create greater demands for electronic delivery of services but the need to find new ways to adjust to both the changes and the social shifts which these technologies are bringing.A MARRIAGE: WILL IT WORK? • The marriage of information technology and Man is beginning to occur. We are quickly becoming what could be called "TechnoMan".

• There were even some who thought that any technological revolution within government was still decades in the future. • The consistent implementation of new technologies presents both many challenges and problems to governments and private sector organizations alike. .

• get into a fully computerized car.Current research indicates that we are still very much at an interim stage of technological growth and use. • go online to check our bank account. • make a deposit or withdrawal using an automated teller card. • witness a scanning device at a retail outlet (which will be sending information on the sale to a central database). . • possibly pass someone who has an electronic bracelet as part of a bail process or parole condition (but we would never know it). For example. through the course of any day we might possibly • pass through a video surveillance camera. or • enter a security code number to get into our home or office. . • have our name recorded in a computer through a transaction over the phone.

• At the same time. this growing electronic umbrella is creating an enormous amount of potential for abuse. .

. Its citizens expect their government to legislate all aspects of their lives.Germany is essentially a paternalistic society. It is this cultural heritage which allows them to legislate morality on the Internet without any outrage in Germany.

In the U.. provisions of the Communication Decency Act had created a criminal offence for access to sexually explicit material on the Net in certain circumstances. as striking at the heart of freedom of speech and freedom of expression as guaranteed in the American Constitution.S. the Supreme Court. . This was struck down by both a Federal Court and. ultimately.

has been stimulated by the popularity of the World Wide Web (WWW). The growth of the Internet internationally. and especially in the US where the highest numbers of users reside. . There are many reasons for this.THE RISE OF THE WEB • We are now facing a maelstrom of change. One of these is that it is a very user friendly medium.

writing in the July 1997. for both government and business alike.• It is a medium that has paved the way for electronic commerce. edition of Forbes magazine. predicted that this will become a trillion dollar industry for business by early in the next century. . Nicholas Negroponte.

including airline. While such activity is not being done in the tens of millions yet.• The chartered banks in Canada are also using the Web to supply information about all their services and software technology. • Many businesses are taking advantage. • This change means tougher competition for travel agencies as the consumer becomes his/her own travel agent. One can find the best possible hotel or accommodation package in any given country in the world (where the Web is being used). where they can have instantaneous access to their account. make transfers between accounts. . From this we can expect a decline of travel agencies in the next decade. or other areas of the Internet. For example. The consumer can book his/her whole trip. train or bus travel and a limousine to the airport. it is now possible to go online and book a trip anywhere in the world. The user can use the Web. get updates and program their account for payments for their bills to be automatically withdrawn on the dates specified by the customer. it is nevertheless occurring at a significant rate to assist both the traveler and the travel industry in general. It is given free to their customers. and book the entire trip.

gives the buzz on the activities of the current stars and provides weekly updates for visitors who want to be kept informed. glitzy site and attracts millions of visitors a year. It helps to promote all the latest movies.hollywood. • For example. www. advertising and business transaction (and the latter is going to be the main activity of government very soon). according to Negroponte: subscription.• Commerce on the Net is going to be the area of single most growth in the next few years. . • The Web is a medium used for three central activities by business.com is a high tech.

it is still combined with other technologies. fax and mail. He goes on to speculate on the types of businesses that could emerge and how consumers could well use this medium to their advantage. especially the phone. there is much evidence of its growth but. . as Negroponte points out. These are in use in the huge outlets like Wal-Mart and Super Kmart that are arising around North America. ― • As technologies become more sophisticated in the stores it is possible one could use a terminal on the shop floor to browse and then go to the precise range of products that appeal to him/her.• As to business transactions.

.' Just think what that does to consumer economics. and the deal puts him in a good light with the manufacturer. because the small margins will be offset by volume.• Negroponte goes on to describe some innovative ways consumers might use online transactions. • "Don't be surprised if 21 consumers get together and demand a fleet discount from a Taurus dealer. The folks at the Yellow pages didn't know just how much you could let 'your fingers do the walking. The dealer won't be displeased. • "With the help of computer agents you will be able to find the least expensive. fastest-delivered and longest-warrantied item. with no more than a few clicks or keystrokes. which will benefit both the consumer and the retailer and result in significant shifts in the marketplace and business world overall.

in just one small example. At the end of the day. Negroponte sees a significant shift in the world of business that will impact heavily on multinationals. the Web is a publishing medium that offers you access to millions and millions of bits of information around the world. The change will only escalate but with this change will come serious social issues (discussed below in this chapter). the ways in which the new information and communication technologies are changing not only the world of commerce but also the very way we conduct our lives. .• The last is a salient point as it illustrates. • Because of the rise of the Digital world. the place of bits and bytes that can move information and knowledge around the world at the flick of a keystroke.

We don't care about customs (the kind that impose duties).• "In fact.000 customers at one location. Our marginal cost to make more product is zero." . we don't care if we have one customer in every town with a population of more than 10.000 people or if we have 10. We have no inventory. In short. our unit costs aren't a lot higher than those of the corporate agents.

or having a site that offers an exclusive product. . Everything from tracking and buying stocks online. It sees growth potential but foresees this much further down the line. the Economist magazine in the UK takes a rather more conservative view. to surfing the web to get the best deal. is now becoming possible. The growth potential is strong. being your own travel agent.• • This is but one example which Negroponte gives to make the very relevant point that this medium is very much poised to move businesses into new areas for entrepreneurs and anyone who wants to do business. While Negroponte and many others are enthusiastic about electronic commerce and its potential.

• However. then goes out over the Net in search of the item. what is clear is that much of the confusion over shopping online will be handled by software technologies that will find a choice of products the consumer is seeking. One example came in the summer of 1997. It gets from the client what he/she is looking for. This software does the search for the client (through a company that offers this service). with the release of new software. . called Jango.

for example. the FedEx web site is used as an example. to facilitate and make it easy for their customers to get their packages prepared for delivery and picked up with the least fuss. This makes sense if. it is not just about purchasing The Economist makes the point that many surveys fail to take into account the most lucrative of online business activities . It is geared for businesses.However. . as to Electronic Commerce.that of business to business dealings.

will be not only the millions of new users who will come online in the next few years but what the new super literate technology generation will do with these technologies.• This latter fact is revealing in itself. mirroring the rapid state of change that these technologies bring. as more consumers come online and as the tastes and needs of society itself change. . conservative). Call Centers are the epitome of cost saving measures. They could be located anywhere. How this up and coming generation will use these technologies will mean more social shifts. there is no doubt that Electronic Commerce is a phenomenon that is here to stay. in a rural area of one's country or abroad.. • The single most important factor which will lead to the true growth of business on the Net. in areas where wages and taxes were lower and the quality of life better. will continue to grow and change as more technologies evolve. • Reading the Negroponte article (waxing enthusiastic) and the Economist (guarded.

they input the product into their cell phone and in just a few seconds. They know their favorite retailers. After carefully considering the choices. and they aren't afraid to bump a few elbows to get them. browsing your amazingly deep and broad assortment. But before they head to the checkout. • Additionally. they receive a coupon for one of the other retailers.New Mobile Shopping Services Increase Competition • We all know people that seem to approach shopping like it is a contact sport. While many of us may not aspire to be one of these top shopping athletes. they decide. they shop often. • Imagine your customer shopping in the store. new mobile services are helping the average shopper compete better for the bargains. This may sound like a futuristic scenario. complete with fancy fixtures and signage. but there are offerings today that make it a reality. they know when and where to find the bargains. This is presenting both challenges and opportunities for today's retailers. find out how much all the other local retailers and online retailers sell this same product for. . and suddenly they are leaving your merchandising display intact and searching for a way to exit the store without getting into a checkout line.

• Here are two examples Nearbynow.com has a service that can tell you via text message all the places in the mall that have the product you are looking for and its price.com has a service that will send you coupons and deals from your local merchants to your cell phone. As an added feature. You can even send a message back to have the inventory held for you. You can literally use the coupon on your cell phone at checkout . Cellfire. You decide who and when you want to hear from. it can also tell you where the store is in the mall and suggest the best places to park.

branding can be especially important in the retailing industry to influence customer perceptions and drive store choice and loyalty. Given its highly competitive nature. . branding has emerged as a top management priority in the last decade.RETAIL STRATEGIC BRAND MANAGEMENT Understanding Retail Branding: Conceptual Insights and Research Priorities • With the growing realization that brands are one of a firm‘s most valuable intangible assets.

what they care about. • Building on those capabilities. This is the key to changing the value proposition from a purely pricebased commodity. creating differentiation in experiences that result in loyalty is all about treating your best customers better than anyone else . as opposed to just the value of the current transaction. you need to understand who your best (most profitable) customers are.• Connected consumers are increasingly taking advantage of the mobility and transparency of this type of information at POP. and create offerings based on their long-term value. there is also an opportunity to use mobile services to drive customized offerings to high-value customers at POP (your POP or your competitor's). The question for retailers is how to take advantage of these types of capabilities. These ensure that where you have the best price. Whether your best customers are top athletes or just average shoppers. Automating the delivery of coupons and product info to mobile devices as well as having a mobile Internet shopping capability are obvious ways (either directly or through the types of services discussed above). • To do this. you remain competitive.

Although they are aware that immediate business benefits are attainable through a more holistic examination of strategic sourcing opportunities.Key Business Value Findings • • • • • • Retailers remain mired in organizational structures that are ill suited to 21st century competitive challenges and opportunities. Spreadsheets. and e-mail remain the most commonly used sourcing technologies even though more comprehensive Web-based technologies are available and affordable. . faxes. they are mostly unable to implement these strategies within their organizations.

not just individual performance. • Align incentives and compensation to team. demand forecasting. logistics modeling. • Incrementally adopt a Sourcing for Innovation strategy. and actual demand. Recommendations for Action • • • • • • • Aberdeen offers the following recommendations to retailers: • Evaluate how you are doing compared with your peers. and the supplier-brand manager relationship remains adversarial and essentially noncommunicative. generating return on investment (ROI) all along the way.Implications and Analysis • • • • • • • • • • Retailers‘ inability to examine and implement better sourcing strategies has cost them dearly. Gross margin dollars are left on the table. Aberdeen created Sourcing for Innovation. Take small steps toward improving sourcing processes. sourcing. Retailers that do go forward with both organizational changes and supporting technologies achieve gross margin and turn improvements without sacrificing customer service levels. Consider sourcing short life-cycle product geographically closer to the point of demand . Market leaders validated Aberdeen‘s hypothesis that a sound sourcing strategy can provide more value than just squeezing another penny out of suppliers. • Look beyond your current supplier base to possible new sources of finished goods. a new sourcing framework based on survey results that encourages and rewards a holistic view of the relationships between product development.

MANUFACTURER AND RETAILER BRANDS IN FOOD RETAIL ASSORTMENTS Notes from a shopping trip across Europe • Heart Healthy Living – Quaker Oatmeal & Heart Health – Understand Heart Health • • • • • • • • • Understanding Heart Disease Lowering Cholesterol Maintaining Arterial Health Preventing Hypertension & Stroke Heart Healthy Glossary Managing Stress Managing Weight Heart Healthy Eating Exercising for Your Heart – Lead a Heart Healthy Lifestyle – Interactive Heart Health Assistant – Smart Heart Challenge .

• Managing Weight – Adults & Weight Management • • • • Quaker Weight Control Plan Lose Weight Gain Health Nutrition & Healthy Eating Exercise & Weight Loss – Kids & Weight Management • Strive for Five • Teach Healthy Eating Habits • Importance of a Healthy Weight • Living Well – – – – – – – Healthy Eating & Nutrition Fiber & Whole Grains Healthy Lifestyle Fitness & Exercise Women's Health Managing Diabetes Health Tools .

• • • • • • Health & Nutrition Glossary BMI Calculator How Many Calories Do You Need Calorie Burn Calculator Target Heart Rate Calculator Other Internet Resources • Family Focus – Healthy Families • • • • • • • • • • Family Health Family Nutrition Family Activities Seasonal Topics Toddler Nutrition Toddler Health Behavior & Development Parenting a Toddler Holidays and Travel Toddler Activities – Quaker Toddlers .

• Quaker Kitchen – – – – – – Recipes Oatmeal Topping Ideas Recipe Exchange Baking Classes Baking Bloopers Kids in the Kitchen • Our Products – Quaker Oats – Instant Quaker Oatmeal • • • • • • • • Classic Favorites Oatmeal Crunch Weight Control Take Heart Lower Sugar Nutrition For Women Organic Quaker Family Favorites – – – – – – – Oatmeal Express Simple Harvest Other Hot Cereals Oatmeal to Go Oatmeal Squares Cereal Preparation Instructions Product Locator .

In doing so.g. Some retailers have managed their brands more effectively than others. retailers compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner 1993). e. Brooks Brothers.RETAILERS AS BRANDS • At the same time. • • Understanding how a retailer should be positioned and how the brand assortment sold by the retailer is related to its image are thus of critical importance. . one can find several examples of retailers who carry only their own private label products. and Talbots. GAP. as is evident in their performance. in industries like apparel.. Private label products may have their own unique brand names or be branded under the name of the retailer. In fact. although often without the support afforded manufacturers brands. they may sell some of their own brands. They allow the retailer to differentiate its offerings from competing retailers.

depth and frequency of promotions. the variety and quality of products. e. A retailer‘s brand equity is exhibited in consumers responding more favorably to its marketing actions than they do to competing retailers (Keller 2003). and brands sold.. and so on. Lindquist (1974) and Mazursky and Jacoby (1986) categorized these attributes into a smaller set of location. the physical store appearance. a retail brand identifies the goods and services of a retailer and differentiates them from those of competitors.g. The image of the retailer in the minds of consumers is the basis of this brand equity Researchers have studied a multitude of retailer attributes that influence overall image. behavior and service quality of employees. and store atmosphere related dimensions. service. the appearance. . services.THE DIMENSIONS OF RETAILER IMAGE • Following the American Marketing Association‘s definition of a brand. merchandise. the price levels.

• however.Access • The location of a store and the distance that the consumer must travel to shop there are basic criteria in their store choice decisions. Achabal. . Consumers‘ store choice may be based on different criteria depending upon the nature of the trip.g. although location no longer explains a major portion of the variance in consumers‘ choice of stores. Ho..g. • In summary. • Consistent with this trend. that location is unimportant. Gorr. Donthu and Rust 1989). Bell. and Mahajan 1982. and Tang (1998) find that location no longer explains most of the variance in store choice decisions. it is a key component in consumer‘s assessment of total shopping costs and is still important for retailers who wish to get a substantial share of wallet from fill-in trips and small basket shoppers. Ghosh and Craig 1983. Huff 1964) store choice and the optimization of retail site location attracted a lot of research attention in the eighties (e.. Beginning with gravity models (e.

Store Atmosphere • Mehrabian and Russell (1974) note that the response that atmosphere elicits from consumers varies along three main dimensions of pleasantness. music. can influence consumers‘ perceptions of a store‘s atmosphere. in turn. arousal. and crowding. whether or not they visit a store. and how much money they spend there . and dominance.. with greater likelihood of purchase in more pleasant settings and in settings of intermediate arousal level. e.g. • Different elements of a retailer‘s in-store environment. how much time they spend in it. color. This response. influences behavior.

or purchase situation might differ. Store price perceptions • A retailer‘s price image should be influenced by attributes like average level of prices. however. product. Decades ago. we highlight three areas that are of direct relevance to consumers‘ image and choice of retailers. . and whether the retailer positions itself as EDLP or HILO. the frequency and depth of promotions. how much variation there is in prices over time. From the vast literature on pricing. price represents the monetary expenditure that the consumer must incur in order to make a purchase.Price and Promotion • No matter how the characteristics of the consumer. store. Brown (1969) highlighted the difference between consumers‘ perceptions of price levels in various stores and reality. showing that consumers may use non-price related cues like service offerings and quality levels to form their price perceptions.

• A retailer‘s price format. They therefore prefer EDLP because it gives them a lower expected price for their shopping basket. by buying on deal. Tang. which is on a continuum between EDLP (Every Day Low Price) and HILO (High-Low Promotional Pricing).Retailer pricing format. • • • . Large basket shoppers are captive to the pricing across a large set of product categories at a time and do not have the flexibility to take advantage of occasional price deals on individual products. and Bell (1998) also explain why both EDLP and HILO coexist in the market. Bell and Lattin (1998) show that ―large basket shoppers‖ prefer EDLP stores whereas ―small basket shoppers‖ prefer HILO stores. on the other hand. Ho. The intuition behind the finding is straight-forward. can lower their basket price even if average prices in the store are high. also influences consumers‘ store choice and shopping behavior. Small basket shoppers. They show that average prices are higher in HILO stores and average purchase quantities are lower. HILO pricing is more effective in enticing shoppers to make more frequent store visits. can take advantage of variations in prices of individual products and.

Price promotion switching. • Cross-Category Assortment • Consumers‘ perception of the breadth of different products and services offered by a retailer under one roof significantly influence store image. the greater the breadth of product assortment. The benefits of a wide assortment are clear. induced store • The third research area studies whether retailer price promotions result in store switching by consumers. Kumar and Leone (1988) and Walters (1991) find a significant impact of promotions on store switching/traffic. and therefore the stronger its salience. First. . the greater the range of different situations in which the retailer is recalled and considered by the consumer.

increasingly. another is the negotiating leverage they provide over manufacturers (Narasimhan and Wilcox 1998). We review the main findings from this research and summarize the implications for retail branding. As the perceived assortment of brands. but. One motivation for offering private labels is the higher percent margins that they provide to retailers (Hoch and Banerji 1993). has become particularly important in the last decade as a tool for retailers to influence their image and develop their own brand name.Within-Category Assortment • Consumers‘ perceptions of the depth of a retailer‘s assortment within a product category are an important dimension of store image and a key driver of store choice. The growth in private labels has spawned much research on who buys private label products. flavors. and the category and market determinants of private label share. • • . • BRAND ASSORTMENT • One specific aspect of the retailer‘s assortment strategy. and sizes increases. they also offer private label products. Kahn and Wansink 2004). consumers with uncertain future preferences will believe they have more flexibility in their choices (Kahn and Lehmann 1991). variety seeking consumers will perceive greater utility (McAlister and Pessemier 1982. Most retailers carry manufacturer brands. brand assortment. and a third is the implicit assumption that providing a private label brand engenders loyalty to the retailer (Steenkamp and Dekimpe 1997). whether and how private labels provide leverage to retailers.

The advantage of brand architecture is simple: Building onto the equity of an existing. and less expensive. than launching a new effort. • • . The brand architecture strategy consolidates the image your organization wants to project. Macro communications and marketing specialists help organizations establish effective brand architecture through strategic analysis and by optimizing the relationships among an organization. and its clients. both now and in future endeavors. messages. strong brand is much easier. Brand architecture also provides a solid framework for an organization to manage future opportunities so that the new ventures are strengthened by their association with the value and equity invested in current activities.3. its products. or elements of an organization so that people both within and outside of the organization understand how its clients or customers are being served.2 RETAIL BRAND ARCHITECTURE • Brand architecture is a systematic way of organizing the identity of the different products.

.Architecture as Brand • Architectural design conceived as part of an overall brand strategy can effectively demonstrate the promise behind a brand [B]randing [i]s the chemical reaction in the back of your head that happens when you are exposed to a brand. just like great marketing does. Physical space in a building speaks to you the way branding does. For instance. Architecture is a form of branding. it is more than making a place functional. It can affect emotions and decisions. I think of safety. when I‘m exposed to Volvo.

branding has become more important than ever. • While the dynamics of our high-speed economy are indeed causing corporations and brand managers to rethink who. where and why they brand. BMW has one. corporations merge. • A Branding Strategy Discussion • Intro: As companies merge and morph to position themselves and their products for success in the new economy. much of the tried-and-true lessons of positioning for shelf space still apply to companies positioning in cyberspace. and new products come to market and subsequently become obsolete are ever increasing. Both are valid brand architectures. when. what. The key is to create clarity — the trick is to leverage the brand without diluting it. Answering the question "What to brand?" is a complex challenge for companies of every size. The speeds at which markets shift. .Brand Architecture: A Method to the Madness • GM has 33 brand names.

Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. "Brand Managers" often carry line-management accountability for a brand's P&L profitability. This may increase sales by making a comparison with competing products more favorable. • Brand management is the application of marketing techniques to a specific product. product line. and/or reduced or more efficent marketing investment. which are allocated budgets from above. • • • • . and/or reduced COGS (cost of goods sold). in contrast to marketing staff manager roles. The value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price. All of these enhancements may improve the profitability of a brand. to manage and execute. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. and thus. or brand. It may also enable the manufacturer to charge more for the product.Brand architecture is an essential component of brand management.

When a company uses the brand equity associated with an existing brand name to introduce a new product or product line. this is referred to as family branding. When one brand name is used for several related products. this is referred to as corporate branding. When all a company's products are given different brand names.Types of brands displayed or dealt with also contribtes to brand architectural strength. Private brands can be differentiated from "manufacturers' brands" (also referred to as "national brands"). white labelling. " When large retailers buy products in bulk from manufacturers and put their own brand name on them. this is called private branding. An "economy brand" is a brand targeted to a high price elasticity market segment. When two or more brands work together to market their products. this is referred to as "co-branding"." An "employment brand" is created when a company wants to build awareness with potential candidates. A "fighting brand" is a brand created specifically to counter a competitive threat. • A number of different types of brands are recognized. this is referred to as individual branding. When a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area. When a company's name is used as a product brand name. • • • . this is referred to as "brand leveraging. this is referred to as "brand licensing. A "premium brand" typically costs more than other products in the category. store brand. private label or own brand (UK).

Brand Architecture • The different brands owned by a company are related to each other via brand architecture. considered by many to have created product branding. Virgin Atlantic. such as The Courtyard Hotels (product brand name) by Marriott (mother brand name). With endorsed brand architecture. • • Techniques Companies sometimes want to reduce the number of brands that they market.g. In the third model only the mother brand is used and all products carry this name and all advertising speaks with the same voice. a mother brand is tied to product brands. Virgin brands all its businesses with its name (e. Pampers.. the company supports many different product brands each having its own name and style of expression but the company itself remains invisible to consumers. Procter & Gamble." Some companies tend to create more brands and product variations within a brand than economies of scale would indicate. Virgin Megastore. . most often known as corporate branding. A good example of this brand architecture. Endorsed brands benefit from the standing of their mother brand and thus save a company some marketing expense by virtue promoting all the linked brands whenever the mother brand is advertised. In product brand architecture. This process is known as "Brand rationalization. Virgin Brides) and uses one style and logo to support each of them. is a choice example with its many unrelated consumer brands such as Tide. is the UK-based conglomerate Virgin... Ivory and Pantene.

Often product level managers are not given enough information to construct strategic objectives. It is sometimes difficult to translate corporate level objectives into brand or product level objectives. Changes in shareholders' equity are easy for a company to calculate. Managers tend to ignore potential synergies and inter-unit joint processes. • • • . Short term objectives should be seen as milestones towards long term objectives. Brand managers sometimes limit themselves to setting financial and market performance objectives.Challenges • • • There are several challenges associated with setting objectives for a brand or product category. It is not so easy to calculate the change in shareholders' equity that can be attributed to a product or category. Most product level or brand managers limit themselves to setting short term objectives because their compensation packages are designed to reward short term behaviour. Brand managers sometimes set objectives that optimize the performance of their unit rather than optimize overall corporate performance. More complex metrics like changes in the net present value of shareholders' equity are even more difficult for the product manager to assess. This is particularly true where compensation is based primarily on unit performance. They may not question strategic objectives if they feel this is the responsibility of senior management.

Expertise. Similar product in a different form from the • • • • • • original parent product. 3. 2. 7. Companion products. Designer image/status. 5. Benefit/attribute/feature owned. 6. Same customer base. Vertical extensions. . • 8.8 Types of Brand Extensions • 1. Distinctive flavor/ingredient/component in the new item. 4.

3.3 BRAND EXTENSION
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).

Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it.

Brand personality. Much of the theory and practice of branding deals with intangibles – how marketers can transcend their physical products or service specifications to create more value. One important brand intangible is brand personality – the human characteristics or traits that can be attributed to a brand. One widely accepted brand personality scale is composed of five factors (Aaker 1996): 1) Sincerity (e.g., down-to-earth, honest, wholesome, and cheerful), 2) Excitement (e.g., daring, spirited, imaginative, and up-to-date), 3) Competence (e.g., reliable, intelligent, and successful), 4) Sophistication (e.g., upper class and charming), and 5) Ruggedness (e.g., outdoorsy and tough). But, how applicable are these brand personality dimensions to retail brands? Do other dimensions emerge? Which retailer attributes affect which dimensions of retailer brand personality and how does this vary across market segments? Experiential marketing. An important trend in marketing is experiential marketing – company-sponsored activities and programs designed to create daily or special brand-related interactions. Schmitt (1999, 2003) has developed the concept of Customer Experience Management (CEM) – which he defines as the process of strategically managing a customer‘s entire experience with a product or company. Brand architecture. Brand architecture involves defining both brand boundaries and brand relationships. The role of brand architecture is twofold: 1) to clarify all product and service offerings and improve brand awareness with consumers and 2) to motivate consumer purchase by enhancing the brand image of products and services. In general, there are three key brand architecture tasks:

comparable quality private labels. no-name generics to cheap. that links these strategic decisions to building the retailer‘s brand equity. • Private label tiers and retailer brand positioning.• Role of Private Labels in Building Retailer Brand Equity Although researchers have discussed optimal private label introduction. ranging from low quality. pricing. We discuss below some issues that are particularly important from the perspective of retail branding. high value added private labels that are not priced lower than national brands (Laaksonen and Reynolds 1994). there is little work. In . quality. medium quality own labels to somewhat less expensive. either normative or descriptive. There are at least four tiers of private label products. and positioning strategies from the perspective of private label sales or category profit maximization. to premium quality.

Manufacturer response.they do not yet seem to have that kind of equity.• Private label branding strategy.. Gedenk. Extending private labels. One of the major benefits of brand equity is the option it provides for extending the brand name to other market segments within the category or to other product categories. Starbucks). cutting prices. Although some retailers with premium private labels sell those private labels through other retail outlets (e. a German hard discounter who is becoming a major force in European retailing. Hoch (1996) and Dunne and Narasimhan (1999) discuss how manufacturers should think about private labels and what issues they should consider in deciding whether to supply private label products. increasing promotions. there are also two separate and sizeable segments that buy one but not the other. Many retailers give their own name to their private label.g. CVS puts the ―CVS‖ name on all its private label products while Kmart does not. increasing R & D expenditures. introducing discount "fighter" brands. and supplying private label makers. Manufacturers have responded to the rise of private labels in a number of different ways: decreasing costs. it is not yet common for North American packaged goods retailers to do so -. Aldi. whereas others use different names for their private label products. also does not put its own name on any of the products it sells even though only private labels are sold in its stores. and Neslin (2001) show that although there is a segment of value conscious consumers who buy private labels and manufacturer brands when the latter are promoted. For instance. • • . Ailawadi.

6 CHARACTERISTICS OF A GOOD BRAND NAME. ASSIGNMENT OF RESPONSIBILITY TO THE PRODUCT – the customer having confidence on the functional responsibility of the product. the customer repeatedly buys the same brand. Bbrands get positioned strongly In this way the name gets established strongly in the minds of customers i. 4.PACT WITH THE MAKER.enabling the customer to find out the manufacturer or supplier instantaneously. 7. . PROMISE.The name must hence develop brand loyalty i. SYMBOLIC DEVICE AND SIGNAL OF QUALITY. 3.3. 2.BOND .It immediately sounds quality and work as a special device in customer‘s mind.e. 6. A good brand/ brand name must create a positive impact on the target segment. get a strong position in customer‘s mind. it must be capable of establishing a bond affectionately. IDENTIFICATION OF THE SOURCE OF THE PRODUCT.The name represents all the benefits promises committed through ads.longs for the same brand or the store. sensitively and emotionally so that it results in sort of a pact or agreement with the customer.e. 5. RISK AND SEARCH COST REDUCER. What is this impact? branding impact on consumers 1. Rresulting in brand loyalty.The brand reduces the time and energy for searching the brand that can satisfy their needs and gives assurance on performance without risks.

. Unique within its industry • Your name doesn't need to be weird or clunky.Professionals agree that these are the top 10 characteristics of a good brand name 1. sweet and easily pronounced • The ideal name for customers to remember.com.com. LocalJobs.com.com. and for you to use to cut through • 2. CareerJunction. Short. BAJobs. but it does need to not sound like all the rest of your direct competitors. Careers.com are all easily lost in the crowd. HotJobs.

3 Legally available and defensible Your lawyers think this should be item one of course. AT&T.? . Coca Cola. 5 Does not lend itself to abbreviations If you have a long descriptive name. is four syllables. But notice how smoothly it rolls off the tongue.g. especially if a longer name Sometimes a longer name does have a place in marketing. we know it worked for IBM.which only can be issued by the USPTO (or equivalent agency in other countries). then you have problem (2) above anyway. Leave FMCC etc. to the legal documents only. the most famous brand in the world. this means you quickly become YASI (Yet Another Set of Initials) and drown in the initial bit bucket. but how many years and how many branding dollars do you have? For a small company. Common law trademark searches are also critically important 4 Good alliteration. Linguists will tell you it has good alliteration. CBS etc. At least make sure the trademark part (brand part) of your tradename is a name and not initials. After all. Ford is the trademark for Ford Motor Car Company. OK. But who or what are AMA. Regardless. CCI. etc. E.. people will abbreviate it quickly. If the USPTO won't issue a registration certificate because they judge it to be generic. what is the point of starting any company or marketing campaign if you cannot have full rights in the name? Your best defense is always a magic ® .

be very careful of "in" words or expressions.6 Flexible and expandable Too many people try to describe their company rather than name it. Copydata. Embraces company personality Two competitors. Portuguese or French native speaker? What does it mean in these languages? 8 Will not age quickly Is your name hip and topical? If you are in the fashion trend business this might be fine. QuickCopy all define what they do . will pick different names because every company . Italian. Japanese. But otherwise. Linguistically clean What are the root origins of the name? How is it pronounced by a Spanish. entering the same market at the same time with directly competing products. Copyshop. Copyland.and are barely distinguishable from one another.

but one with big potential rewards.1 TYPES OF RETAIL BRANDS RETAILERS AS BRANDS The last decade has seen major flux in retailing. . the growth of discounters and warehouse clubs has put immense pressure on traditional retailers and significantly increased retail competition both within and between retail formats. Since a large portion of most retailers‘ revenue and profit comes from selling manufacturer brands. and the indirect impact of decreasing costs as their leverage with brand manufacturers also increases. Such equity insulates them from competing retailers.4. which has the direct impact of increasing revenue and profitability.S. especially in the U. the growth of promotions and private labels has been seen by many as an indicator of growing retailer power. On the other hand. building their own equity is a particularly challenging problem. On one hand. which many of their competitors also offer. grocery and general merchandise industry.

the physical store appearance. services. 4) cross-category product/service assortment 5) within-category brand/item assortment. e. and store atmosphere related dimensions. the variety and quality of products. and brands sold. . 3) price & promotion. depth and frequency of promotions. The five dimensions we use to review past research are: 1) access 2) in-store atmosphere. behavior and service quality of employees. service. and so on. • Researchers have studied a multitude of retailer attributes that influence overall image.. merchandise. Lindquist (1974) and Mazursky and Jacoby (1986) categorized these attributes into a smaller set of location.g. retailers compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner 1993).• At the same time. the appearance. the price levels.

The authors. . Most of the debate revolves around how retailers with investments in physical channels can apply their existing strategy online. • The retail service brand is one component that requires examination.4. therefore.2 RETAIL SERVICE BRANDS • Considerable discussion has arisen about how electronic commerce is changing retail marketing theory and practice. but there is no model to guide online strategy. draw on exploratory research from consumer focus groups to understand retail service branding in electronic markets. The case setting is a nationwide grocery service that recently extended its traditional strategy and offered consumers online shopping.

DSC Hyundai motor services Saravana Electronic Services. Whenever you need a legal consultancy you refer to legal services rendered by Iyer &Dolia or Bhat &Bhat etc which are famous brand names in those field. and so on for the reasons already explained in brand loyalty. • For retail service brands.The Impact of Brand Commitment on Loyalty to Retail Service Brands • Consumers become loyal to retail service brands like Tata Telecom Services. Why they are famous is similar to why Philips is . while newer entrants to the Australian market are brandoriented and eager to offer services online rather than face-to-face. the evaluative process includes. That's the conclusion from a recent high-level . Reliance Telecom Services. Maggie is etc for their value and customer oriented benefits and confidence and good will established over time. Retail service brands that create strong connections • Impudent newcomers take on incumbents in retail banking: Australia's traditional retail banks are people-focused and wary of technology. Colgate is.

web-services. Viral marketing has become increasingly sophisticated since the Hotmail campaign. Each email sent through Hotmail arrived with the appended message ―Get your private.BRAND PROMOTION TECHNIQUES • Personal selling. In all these cases what is underlying is the message and marketing communication that will convince. Sales promotion and Publicity are considered to the elements of promotion mix . David Nichols of market research firm Added Value told the Financial Times in 2002. free email from Hotmail at http://www. Today it is likely to involve free software. You may see how important it is for a retailer through the following examples Although the origins of viral marketing can p robably be traced back to graffiti. attract. having been introduced in 1996 by venture capitalist Steve Jurvetson to describe the marketing strategy of the free email service Hotmail. Viral marketing is a powerful promotion tool.payment facilities etc all c an contribute to the promotion of different brands in the store. The subject for us is how to bring about this promotion to effectively end up in buying actionfrom a store.the implicit recommendation of the sender.and this was key -. let it be a product or brand. The sales promotion techniques employed in a store can end up in excellent viral marketing. Advertisement.trained sales counter personnel. The service gained 12 million subscribers in 18 months at a total cost of US$ 500.000.facilities of space.category display.shopping cart. The very store location. that too from a particular retailer.formats. a short film clip or a book.com. the term itself is of relatively recent provenance. The very retailer store itself is a brand by itself. compared to US$ 20 million spent by its nearest competitor.availability.‖ along with -.hotmail. Juno. generate interest and desire and will lead the prospects to a favourable action of purchase of a brand .ambience. and so far it‘s still cheaper than traditional advertising. "Grown-up viral marketing is about involving people in things they love as a way of introducing a dialogue between brand and consumer • • • .

brand promotion and rural & urban promotion requires focus on the right segment at the right time. at Relio Quick in India. • An advertising agency known for its innovative ideas and great creative with its head office in New Delhi and Regional offices at Mumbai. As the right product and sale promotion.• Product and Sales Promotion riddles are the trickiest ones. . we do the necessary campaign analysis to measure the success of the promotion. Chennai. Lucknow. including Urban. Our specialized promotion includes Rural & Urban Promotions. SemiUrban and Rural Promotions. Bhopal and Pune on PAN India Basis • Relio Quick combines carefully selected traditional and new communication techniques according to your requisite promotion needs. Hyderabad. Bangalore.

• Checkout dispensers: On checkout the customer is given a coupon based on products purchased. • Mobile couponing: Coupons are available on a mobile phone. 25 percent extra).Consumer sales promotion techniques • Price deal: A temporary reduction in the price. • Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup. miles. Consumers show the offer on a mobile phone to a salesperson for redemption. such as happy hour • Loyalty rewards program: Consumers collect points. . • Coupons: coupons have become a standard mechanism for sales promotions. • On-shelf couponing: Coupons are present at the shelf where the product is available. Two famous examples are Pepsi Stuff and Advantage • Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. or credits for purchases and redeem them for rewards. • Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales • Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. • On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. • Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example.

or the emotion. or to shorten the purchase cycle by buying more frequently. Finally. A trade allowance or discount provides retailers with financial incentives to stock and promote a manufacturer's products. sales promotion appeals more to the pocketbook. two types of sales promotion can be used: Consumer oriented sales promotion. sales promotion acts as an accelerator designed to speed up the selling process and maximize sales volume. A trade contest directed at wholesale or retail personnel provides an extra incentive to concentrate on sales of the manufacturer's products. Generally speaking. It can be targeted to different levels in the marketing or distribution chain to accomplish various objectives. By providing incentives. Third. or trade oriented (business-to-business) sales promotion • • . Second.Sales Promotion • • • • • • Provides an extra incentive to buy or try Provides an increased incentive to sell Accelerates the sales process/Maximizes volume Is extremely flexible While advertising and public relations appeal to the mind via rational calculations of self-interest. sales promotion can increase the incentives for intermediaries such as wholesalers and retailers to deal with a firm's products. sales promotion is flexible. sales promotion techniques can motivate consumers to purchase larger quantities of a brand.

That is to say. during the past 15 years.S. but its percentage of the marketing budget has increased. not only has the total amount of money spent on sales promotion increased.Consumer oriented sales promotion tools include: • • • • • • • • Sampling Coupons Premiums Rebates Contests and Sweepstakes Bonus packs Price reductions Event sponsorships Trade oriented sales promotion tools include: • • • • • • Trade allowances Point of purchase displays Contests and dealer incentives Training programs Trade shows Cooperative advertising Sales Promotion Growth • In the U. the percentage of marketing budget that is applied to trade promotion has increased while the percentage of budget applied to advertising has decrease .

RELATIONSHIP IN THE MARKETING BUDGET
Reasons for Growth • One reason for this absolute and relative increase in the use of sales promotion has been the shift in relative power from manufacturers to retailers. In the past, manufacturers maintained an information advantage over retailers concerning inventory and product movement. • Recent acquisitions of computers check out scanners, and other technology that improves retailers' inventory control and evaluation capability has placed the retailer in a stronger position to know what products are selling well with good turnover rates, and what sales promotions are working. So the power advantage has begun to shift from the manufacturer to the retailer. • The result has been increasing demand by retailers that manufacturers provide sales promotion ideas and programs to move products more effectively. Manufacturers who do not meet this challenge find their products languishing on retail shelves. Reasons for Shift • A general decline in brand loyalty has also contributed to the sales promotion increase.

Reasons for the Shift to Sales Promotion
• • • • • • • • • Power Shift from Manufacturers to Retailers Declines in Brand Loyalty Brand Expansion Fragmentation Focus on Short-term Profitability Increases in Competition Increases in Clutter Increases in New Product Introductions Before utilizing sales promotion, marketers should assess the longterm effect the promotion will have on the brand's image and position in the marketplace. Poorly implemented sales promotion can erode price positioning, value assessments, and other positioned attributes for the product. • As we mentioned, sales promotion can be either consumer-oriented or business-to-business oriented. We'll discuss the two major types in that order.

Objectives for Consumer Oriented Sales Promotion
• Different sales promotion activities achieve different objectives. Planners should focus on what the sales promotion will accomplish and whom it is targeting. One mistake some marketers make is to allow a need for immediate sales to outweigh consideration of the effect the sales promotion has on the overall plan for an audience. Firms might want to increase immediate sales to, for example, achieve sales targets near the end of a sales period: or reduce inventories before a model year ends. So there are often "year-end closeouts" and the like. At the same time, innovative products must reach a certain critical level of penetration in the marketplace before they become a "standard The objective for a sales promotion must be evaluated against the audience message statement and the promotion program objectives to ensure they are compatible. If the objective of the sales promotion doesn't conform to the guides, don't do it. A maverick sales promotion, which isnÕt coordinated with long-term firm objectives, runs the danger of doing the firm and its product long term damage in the minds of the audience. This damage could represent the destruction of years of work and negate the spending of thousands of dollars from the promotional budget.

Providing a "sample" of a car is hard. The purchase cycle for the product must be relatively short. demonstration) In home (mail. For new products. making the costs of a sampling promotion affordable The product must be divisible to permit breaking into smaller units. • Consumer Sales Promotion Techniques—Sampling • • • • • • The types of sampling include: In store (on package.Basic Objective • The basic objective of consumer oriented sales promotion is to achieve a significant short-term increase in sales. the goal might be to achieve more rapid trial and adoption of the product. For an established brand. marketers can use sales promotion to consumers to accomplish this goal in various ways. With this objective in mind. . but a sample size of a shampoo is of course easy to manage. the goal might apply to increasing consumption of the brand from current sales levels. door-to-door) Three criteria for effective sampling are: The product must have a relatively low unit value.

One reasons for their relative lack of acceptance in developing countries is the need for a fairly elaborate infrastructure. So it is somewhat difficult to imagine their universal acceptance. In exchange for information about your preferences and buying patterns. far higher than the 1% to 5% rate for newspaper inserts. it will send you a personalized selection of coupons every week via email. Coupons can be used for both new and established brands. Results are encouraging . Coupons are somewhat selective: They allow extending a price reduction to buyers who are price sensitive without reducing the product's price to all consumers.the redemption rate is about 20%. has pioneered a program to allow shoppers to print their own coupons from the Internet. coupon implementation can be expensive (costs include printing. market. One problem with the use of coupons is that it is difficult to estimate how many coupons will be redeemed. Store employees must be educated: the store has to store the coupons: then they must be sent somewhere for redemption.S. Catalina Marketing Corp. Vignette Coupons haven't done as well abroad as in the U. Also. distribution. and redemption). • . Coupons are less used in other parts of the world.Consumer Sales Promotion Techniques—Couponing • As we discussed in the opening of the chapter. • • • • • • Coupons are distributed in a number of ways newspaper direct mail on-package bounce back cross reference A relatively new phenomenon is the provision of coupons on-line. Only about 2% of all coupons issued are redeemed. coupons are the oldest and most widely used of the techniques in the U.S.

from a free sample to buying at regular price. Premiums are of two types • Free premiums • Self-liquidating premiums . The steps are: • -Free sample • -Major coupon. with an ever-decreasing sales promotion component. with a significant price reduction • -Coupon with a smaller price reduction • -Regular price purchases • Consumer Sales Promotion Techniques--Premiums • The idea here is to offer an item of merchandise or service either free or at a low price.The Coupon Conversion Model • The primary idea of this model is to lead the consumer through a series of steps.

S.Consumer Sales Promotion Techniques--Refunds and Rebates • Refunds and rebates return a portion of the product's price. ability. The Pillsbury bake off is good example. A game is a type of sweepstakes where some kind of playing piece is distributed at the point of purchase. Winners are selected in a judging process. Winners are selected by chance.S. Consumer Sales Promotion Techniques--Contests and Sweepstakes • • • A contest is a promotion when consumers compete for prizes based on skills. Consumer Sales Promotion Techniques--Bonus Packs Consumer Sales Promotion Techniques--Price Reductions Consumer Sales Promotion Techniques--Event Sponsorships Trade Oriented Sales Promotion Trade Oriented Sales Promotion--Trade Allowances . Sweepstakes only require consumers to register. This usually occurs after the consumer supplies some proof of purchase. Sweepstakes are mistakenly called contests. Contests usually require proof of purchase as a condition of entry. In the U. the best examples of a game are conducted by fast food restaurants that offer a scratch off card so customers receive immediate feedback about their winning status. Proof of purchase cannot be a condition of registering in the U.

3. Promotional allowances Allowances or discounts for retailer to perform certain promotional activities.Types of Trade Allowances 1. These allowances may help discourage the appearance of new products. since this is an additional cost of bringing a new product to market. Slotting allowances • Discounts or allowances paid to the retailer for shelf space. Providing the displays themselves helps manufacturers to ensure a high level of in-store merchandising . 2. Buying Allowances Special pricing available during a limited time. • Trade Oriented Sales Promotion--Point of Purchase Displays • Displays for retailers to use in stores.

Trade Oriented Sales Promotion--Trade Shows • Targeted to resellers. Trade shows are also a good venue for the introduction of new or revamped products. or providing training materials.Trade Oriented Sales Promotion--Contests and Incentives • These are usually targeted to sales personnel at the wholesale or retail level. Trade Oriented Sales Promotion--Sales Training • Manufacturers provide sales training for a retailer's sales personnel. This can mean providing classes (including an instructor). . trade shows provide an opportunity for face-to-face contact with resellers. Importantly. Cooperative advertising is similar to promotion allowance except that it tends to have greater manufacturer participation such as production of advertising or promotion materials. computers and cars. they allow for demonstration of the product without having to visit wholesalers or retailers on a one-by-one basis. Trade Oriented Sales Promotion--Cooperative Advertising • Here the cost of advertising is shared by the manufacturer and the retailer. The producer provides incentives such as prizes for travel or expensive goods like televisions.

S. direct marketing allows a "sales call" which is relatively inexpensive on a per-call basis. direct marketing allows one-on-one communication with buyers. which allow precise targeting. we consider e-commerce worth special and individual coverage These techniques are exemplified in the U. • • • . some authors describe electronic commerce as direct marketing. like direct marketing because of low access costs and databases. however. Direct marketing is much more than direct mail or mail order catalogs. by companies such as Tupperware. A full list is shown in Table 5. It now includes a variety of activities such as direct selling. who do not use traditional retail distribution networks. Like personal selling. Rather. Dell and Gateway Computers. As shown. Unlike personal selling. the traditional components of this tool. The two-income household exhibits severe time pressure. telemarketing. Mary Kay Cosmetics. meanwhile. Although this classification is accurate in a strict sense. and one way to have more time is to spend less time shopping. they depend on direct consumer access to sell to and service their end users.Direct Marketing • Among the trends that have made direct marketing more attractive to buyers are time constraints and congestion. Sellers. and direct response advertising.

Direct Marketing Methods • • • • • Catalogs and Direct Mail Telemarketing Direct Responses from TV. newspapers Electronic Shopping Kiosk Shopping . Dell Computer maintains a production facility in Limerick. magazines.there is a sales force dealing with Dell's corporate customers. Avon and others estimate that direct marketers provide incomes for 2 million Chinese. This method is best suited for selling products that buyers can evaluate using prior experience.Airline tickets. many of whom would otherwise be unemployed because they lack experience or working capital. radio. The direct marketing model applied to all of Dell's customers . Things have been going less well for Avon and others using the direct marketing approach in China. the Middle East and Africa is custom built to customer order and shipped direct to the customer. In China. Ireland from which every Dell computer ordered for Europe. but machines are still made to individual order. .

acceptability. confidence of both the governments in particular but that of the rest of the countries in general as all of them will have their ambassadors in the 3rd country etc. especially in service industries. special features or characteristics. The political post calls for certain qualifications. Often the employees of the company are good ambassadors as they interact with customers . The credibility is very important. clean and pleasant appearance and acceptance and appreciation. energy. power of representation. where probably Dr. • Thus Amitab or Tandulkar can be ambassadors for Reid and Tailor or Boost but can not be for a life saving drug or for technology of steel or engine etc. full knowledge of the product and its use .overall a customer confidence builder and sales promoter and puller for the brand. credibility.4 RETAIL BRAND AMBASSODORS • A brand ambassador is as good a as an ambassador of one country to another country in political set up . Abdul Kalam the missile technologist may be correct ambassadors. experience. personality.Pratap reddy of Apollo hospitals or Dr. • So also the brand ambassador should have all those necessary qualities.status. popularity.-.4. .

Brand Ambassador Duties/Responsibilities * Know and communicate product messages to qualified consumers * Educate consumers on product information * Interact with bar/club patrons using effective communication * Gather information from bar/club patrons * Hand out gift items * Recap and process paperwork.Brand Ambassador .Bar & Night Club Promotions. GMM and GMR * Uphold Program standards * Other duties as assigned by the TM . clear and accurate records of all Program Night activity for TM. if necessary * Maintain consistent. and clubs). Candidates must be available to execute Thursday through Saturday evenings.GMR Marketing • ! The primary duty of the Brand Ambassador is to work with the Team Manager (TM) to execute scheduled Program Nights for the Client in local signed venues (bars. pubs. Additional evenings are possible.

or touch objects or controls and talk or hear. The employee is regularly required to stand. While performing the duties of this job. the employee is regularly required to sit. . Specific vision abilities required by this job include close vision. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.com for consideration . walk. Know someone that would want to work with you? Please forward this information along to any friends or family that might be interested in working this event! Please email a copy of your resume and any additional promotional information to cgramzagmrlive. Educational Requirements High school diploma or equivalent Physical Demands The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. handle.• All Brand Ambassadors must * Be at least 21 years of age or older * Be able to work nights and weekends in a bar/nightlife atmosphere * Be able to submit to and pass a criminal background check and drug screen * Have reliable transportation * Wear required uniform * Attend all mandatory Brand Ambassador trainings * Be able to provide a government issued id providing proof of age. and reach above shoulders. The employee is frequently required to use hands to finger.

though most companies talk about the crucial role their employees play. how do you know? • • As we've reported elsewhere. communicate with your customers. (See "The Power of the Fifth P" and "People Who Need People" in the "See Also" area on this page.Don't Neglect Your Brand Ambassadors • Whether your company is a bank or a grocery store. you're making brand promises that are supported -. employees are critically important contributors to the strength and health of a company's brand relationships. survey results continue to point to the woeful experiences that are typical in today's customer encounters. And yet. Many business books attest to the importance of human contact in building customer relationships. Your employees are the ones who design and develop your products.by the people who work for you. PCs. gives meaning and dimension to your company's brand promise. or ocean cruises. Anyone in your company who has contact with your customers.or not supported -. (See "Are Your Customers Dissatisfied? • . Wharton's annual Baker Retail Initiative survey noted that 1 in 4 shoppers reported being totally ignored by sales associates during their most recent retail store visit. however indirectly. or whether you're marketing sports cars.) They have an impact on customer relationships that can far outweigh the influence not just of your advertising but of the prices you charge and of the convenient locations you painstakingly select. and service what you market. Your people "live" your brand -.or at least that's what you assume But how well do they really understand your brand promise and what it entails? More to the point.

a representative of an organization. One very proper description of a brand ambassador I heard recently caught my attention: "a diplomat. Having a strong brand is vital to your company's success.it is your company's product or service. institution or corporation that best portrays the product or service. combined with a unique positioning and key company equities. • But what exactly is a "brand ambassador"? At first thought.― . you might consider it to be the owner of the company or the board of directors.'Brand ambassadors' give your business a boost • Everyone knows what a "brand" is -. these people are considered the ones who have the greatest interest in seeing the company and its products survive and grow. that fills a need for consumers. • While this is certainly true. a brand ambassador is much more than that.

but a single measure that offers rich insights and diagnosticity and yet is easy to compute and track still evades us. Brand equity is defined as the marketing effects or outcomes that accrue to the product or service with its brand name as compared to the outcomes if that same product or service did not have the brand name (Keller 1993). the portion of its revenue or profit that cannot be explained by physical attributes. it does play a role in his analysis – his expression for brand equity is a function of. A retailer‘s residual from this regression. researchers often use private labels as the ―no brand name‖ benchmark (Park and Srinivasan 1994. etc. can be conceptualized as a measure of its retail brand equity.1 For instance. Since it is difficult to determine what outcomes would accrue in the hypothetical ―no brand name‖ situation. Ailawadi. one could regress retailer revenue or profit on various physical attributes such as location.4. product/service assortment. Keller and Lehmann 2002. Another possibility might be to use a cross-retailer hedonic regression type of approach. Ailawadi. among other things. • • . • As if the measurement of brand equity were not hard enough..e. However. What should be the benchmark for assessing a retailer‘s equity and comparing it with other retailers? One possibility is the approach developed by Dubin (1998) who uses oligopoly economic theory and a series of simplifying assumptions to derive an analytic expression for the incremental profit that a product would get with its brand name versus if it did not have the brand name. Lehmann. although Dubin does not treat the private label directly as a benchmark. Lehmann.g.5 Measuring Retail Brand Equity • The measurement of brand equity has been one of the most challenging and important issues for both academics and managers. the measurement of retail brand equity adds its own unique challenges.. availability of private label. A common conceptual definition of brand equity and a clear distinction between the consumer-based sources of brand equity and the product-market outcomes of brand equity have been very useful in efforts to develop measures of brand equity (e. and Neslin 2003). and Neslin 2003). store timings. i. the price elasticities of branded and private label products. square footage. Sethuraman 2000.

however. • Consumer perceptions of these dimensions of retailer image can help develop strong and unique retail brand associations in the minds of consumers. and the share of trips. Even though there has not been much academic research on retail branding per se. . They also influence the utilitarian and hedonic benefits that consumers feel they gain from retailer patronage and ultimately the price premium consumers will pay. a number of important retail branding questions and issues are yet to be resolved. share of requirement. the extra effort they will be willing to expend in order to shop the retailer. a lot of work has been done on retailer actions and consumer perceptions of retailer image that has direct relevance to branding. • Perhaps because of the lack of explicit focus. and loyalty that the retailer enjoys.CONCLUSION • Our contention is that branding and brand management principles can and should be applied to retail brands.

After 60 seconds of intense tasting. once he believes that he is tasting his preferred brand. Invariably these drinkers cited the taste of their chosen beer brand as the reason for their loyalty. perceives one to be superior to all the others that he has tried? • • • • • • • . In one episode we went to a London pub to recruit brand-loyal drinkers in a London pub who claimed that they drank only one particular beer. only to open the envelope and discover it was a different one altogether. Three pints of beer marked A. each drinker identified the beer that they believed was their favoured brand. with only just one beer left. where we had set up a blind-taste test. it is also true that a brand can surreptitiously alter the way a consumer perceives that quality. after another minute of drinking. the most fascinating implication of brand equity is its influence on customer perception. What the drinker did not know was that not only were all three beers identical. The drinker was then given a second chance and. they selected the final pint only to discover that yet again they were mistaken. we gave the drinker another minute to identify it. and when asked if they could identify their choice without the aid of the logo. While it is true that brands are a guarantee of quality. For me. We took these drinkers to the corner of the pub. B and C were set out on a table and the drinker was given one minute to identify their favoured brand from two imposters.Brand Equity Can Taint Perceptions • A couple of years ago I was invited to make a series for the BBC about brands. Finally. once again pronounced with certainty that one of the two remaining beers was their usual. Once again they opened the envelope to discover their mistake. each was certain they could. How else can one explain a drinker who samples three identical pints and each time. but they were all from a rival brand to the one they usually drank. Convinced that this time they were definitely drinking their preferred beer.

Among the retailer‘s current best customers. We also show how the model can be used to identify the key product category that influences brand equity in consumers‘ learning process. Based on the behavioral research on brand equity and consumer inference. However. The model provides a tool to track the evolution of brand equity at the individual consumer level. We integrate this associative belief structure into a Bayesian learning model. we represent consumers‘ beliefs about the qualities of the retail brand and the product categories as nodes that are linked in an associative network.RETAIL BRAND EQUITY—A STUDY Retail brand equity is a critical differentiator in today‘s competitive marketplace. We analyze the complete transaction history of a sample of customers over ten and a half year period. In this paper. The results show the existence of learning within and across product categories as well as considerable heterogeneity in learning across consumers. The model is applied to a direct mail retailer that sells products in three major categories. we propose a structural model to describe how retail brand equity is formed in each consumer‘s mind based on his/her consumption experiences across product categories provided by the retailer. we find that the retail brand equity contributes about 6% to the annual revenue. which can be estimated empirically from individual purchase data across categories. . This associative network enables consumers to generalize what they learn from one product category to the other categories as well as to the retailer. retail managers have few metrics that they can rely on to manage their brand equity.

Crew and Banana Republic make investments in product assortments. First. which includes specialty stores. 2000). However. . Current managerial and academic metrics of retail brand equity have not addressed both issues. extensive studies have been done to measure brand equity (Green and Srinivasan 1978. Managers would like to not only measure current retail brand equity but also monitor the temporal evolution of their retail brand. department stores. and supermarkets. Introduction Managers recognize that a retailer‘s brand image is a critical differentiator in an extremely competitive marketplace. show that such investments can be fruitful (Henderson and Mihas. these models do not consider the dynamic brand equity formation process at an individual consumer level. Industry-leaders such as AC Nielsen (Shopper Trend) and Interbrand measure brand equity at an aggregate level and do not assess dynamics. which makes it desirable to measure retail brand equity at the individual consumer level. In academic research. al 1993. check out larger-than-average shopping baskets or pay price premiums at retailers they perceive to be strong. al. Green and Srinivasan 1990. 1999). consumer experiences form the building blocks of retail brand equity (Ailawadi and Keller 2004). Kamakura and Russell 1993. There is considerable variation in these experiences among consumers. J. merchandising and marketing communications to establish and reinforce their brand images. developing retail brand equity metrics is challenging for at least two reasons. managers rely on metrics. Rangaswamy et. Leading retailers like Ann Taylor. A second challenge to measurement is that a retailer‘s brand equity is dynamic and it accrues over time via consumer learning and decision making processes (Erdem et. Park and Srinivasan 1994. Consumers are found to make more frequent visits. Sriram et. But. al.1. 2007). Studies across a broad range of retail formats. To manage their retail brand equity.

RETAIL BRAND LOYALTY • Some consumers use the same retail outlet or purchase the same brand of product on most occasions or on a regular basis. Here the consumer shifts his loyalty to two. – A person continues to utilize store or brand over time. . This is also known as brand allegiance. Soft core loyals. Brand switchers. This buyer characteristic is known as store loyalty or brand loyalty respectively. – A person utilizes the store more than other stores or buy the same brand more frequently . Hard core loyals where the consumer buys only the same brand all t he time to satisfy his needs and would even wait for the brand if out of stock.three or four brands. This is strong allegiance and undivided loyalty to the brand. 3. different each time they make a purchase. The loyalty can be of 5 types 1.based upon brand attitudes.e. 4. Here the consumer shows no loyalty to any brand and simply switches the brand from one to any depending on price or other benefits or deal etc. where the consumer buys brand A or B depending on availability and moods but loyalty is divided between two competing brands Shifting loyals. Brand loyalty or store loyalty can be summarized as follows. This attitude of course is based on store or brand preference. 2. – A person feels positively disposed towards the brand. They may also want variety shopping i.

BRAND LOYALTY
CUSTOMERS INSIST FOR THE SAME BRAND FOR USE AND RECOMMEND TO OTHERS THE SAME BRAND COME WHAT MAY LOYAL CUSTOMERS CAN NOT EXIST WITHOUT THE BRAND WHEN IN NECESSITY. REPEAT PURCHASES DUE TO CONFIDENCE THAT THE BRAND INQUESTION CAN SATISFY HIS NEEDS MORE THAN ANYBODY . A STRONG ,ADEQUATE ,RELEVANT ASSOCIATION AND RELATIONSHIP MARKS LOYALTY.

BRAND RESONANCE OCCURS WHEN CUSTOMER‘S MINDS ARE ATTUNED TO THAT OF THE BRAND IN MANY RESPECTS. BEHAVIOURAL LOYALTY,ATTITUDINAL ATTACHMENT,SENSE OF COMMUNITY( A KINSHIP WITH OTHER USERS OF THE BRAND) AND ACTIVE ENGAGEMENT ARE THE HALL MARKS OF BRAND RESONANCE.

ROLE AND RESPONSIBILITIES OF A RETAIL BRAND MANAGER
• Store manager
• A store manager is the person ultimately responsible for the day-to-day operations (or management) of a retail store. All employees working in the store report to the store manager. A store manager reports to a district or general manager.

• • • • • • • •

Roles and responsibilities
Responsibilities of a store manager may include: Human Resources, specifically: recruiting, hiring, training and development, performance management, payroll, and schedule workplace scheduling; Store business operations, including managing profit and loss, facility management, safety and security, loss prevention (also called shrinkage), and banking; Product management, including ordering, receiving, price changes, and handling damaged products and returning them. Customer expectations keep rising. It is the responsibility of the retail organization to define the service vision,strategy and objectiveto achieve higher levels of customer satisfaction. Customer service standards and quality of service management need to be defined so that efficient monitoring and measurement can be done. Gaps in the service delivery process should be found through the application of a customer service feedback plan.These gaps need to be filled in with the required action plan.

Brand Manager
Job Description: Develop Brand strategy in terms of positioning, pricing, distribution and marketing Conceptualize and execute activities for Brand positioning Manage the Profit & Loss of the Brand Job Requirements: Degree holder with 8 years experience in retail brand management in the fashion industry with at least 5 years in a managerial capacity Experience in retail operations, merchandising, inventory control. sales & marketing Excellent interpersonal, communication and presentation skills

Retail Manager
Job Description: To lead a dynamic sales team and to maximize their potential to achieve set targets and objectives Excellent leadership with good interpersonal and communication skills taStrong background and interest in fashion Able to work at retail and long hours Job Requirements: Diploma in Marketing / Retail Minimum 5 years experience in retail store operation with 2 years in a managerial role Previous experience in boutiques or apparels related stores preferred

They have an enviable global network and will be most people's first port of call in certain areas. merchandise and distribution teams where you will have to foster collaborative relationships. My client is located in the West but free parking is available. Your role will be to help these teams be proficient in their business aims whilst ensuring inventory levels are kept at a tight level in store along with rolling stock. Analytically you must be strong and be able develop sound business conclusions from data analysis. Only shortlisted candidates will be contacted About our Client • My client leads the way in a number of categories in the retail market and has diversified its product with great success. . The business portrays a family culture coupled with a desire for continued growth and therefore has an excellent working environment. • • The Successful Applicant Ideally you will have retail experience but you will need a number of years experience managing inventory of commodity flow and exposure to a sales & marketing orientated company will be useful.$50 p/hr with a commensurate package if the role turns permanent. What's on Offer • Superb opportunity to join a leading retail business on a temp to perm basis. Job Description Ultimately reporting to the Supply Chain Manager you will have close liaison with the buying. An open and collaborative nature will be required to make this role a success. Initially the role will be paying $45.Retail Sales Manager Job Description: Able to undertake all departmental stores operation in various shopping malls Planning and managing daily operational functions of retail outlets Able to work at retail and long hours Job Requirements: Diploma in Marketing / Retail 8 years relevant experience with 5 years at manager's role in a multi-store operation Dynamic and proactive in generating sales Annual product allowances of $2000-5000 are payable with each position. All candidates must be effectively bilingual with good interpersonal skills and pleasant personality.

or brand.Brand Management • Brand management is the application of marketing techniques to a specific product. • All of these enhancements may improve the profitability of a brand. in contrast to marketing staff manager roles. This can result from a combination of increased sales and increased price. to manage and execute. This may increase sales by making a comparison with competing products more favorable. and thus. and/or reduced or more efficent marketing investment. and/or reduced COGS (cost of goods sold). It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. • The value of the brand is determined by the amount of profit it generates for the manufacturer. product line. which are allocated budgets from above. In this regard. It may also enable the manufacturer to charge more for the product. Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. "Brand Managers" often carry line-management accountability for a brand's P&L profitability. .

SYSTEMATIC PERIODIC EXAMINATION OF THE MARKETING ENVIRONMENT. 10 THE BRAND AUDIT A CONSUMER FOCUSSED EXERCISE TO ASSESS THE HEALTH OF THE BRAND. 11 THE AUDIT UNCOVERS THE SOURCES OF BRAND EQUITY AND SUGGESTS WAYS TO IMPROVE ITS EQUITY.STRATEGIES ETC.Retail Brand Performance Audit 1 2 3 4 5 6 A COMPANY SHOULD KNOW WHAT IS THE CONSUMER‘S PERCEPTION OF THE BRAND AS ON DATE THIS IS REQUIRED TO ALTER THE STRATEGIC POSITIONING OF THE BRAND ONE CAN LEARN WHAT CONSUMERS KNOW ABOUT COMPANY‘S PRODUCTS AND BRANDS. 7 8 9 THE AUDITOR SUBMITTS A REPORT ABOUT THE ACCURACY.FAIRNESS AND ACCEPTABILITY OF RECORDS.OBJECTIVES. THIS ENABLES DETERMINATION OF PROBLEM ARES AND PLAN OF ACTION TO IMPROVE. A MARKETING AUDIT IS A COMPREHENSIVE . ASSOCIATIONS. IN ACCOUNTING AN AUDIT INVOLVES ASYSTEMATIC EXAMINATION OF ACCOUNTING RECORDS. FAMILIARITY. ( BRAND AWARENESS. A BRAND AUDIT IS A COMPREHENSIVE EXAMINATION OF A BRAND IN TERMS OF ITS SOURCES OF BRAND EQUITY. FEELINGS. IMAGE ETC) . THE OUTCOME OF AN ACCOUNTING AUDIT IS AN ASSESSMENT OF THE FINANCIAL HEALTH OF THE FIRM.

CHARACTER. 13 THE BRAND MEANING STUDIED AS ON DATE. PRICING. FEELINGS. 20 BRAND AUDIT HAS TWO STEPS – BRAND INVENTORY AND BRAND EXPLORATORY. BELIEFS. MARK. COMMUNICATION. 14 THE AUDIT GIVES A DIRECTION TO THE BRAND. POSITION ARE ALL AUDITED.FEELINGSASSOCIATIONS ARE EXPLORATORY. 22 CUSTOMER‘S ACTUAL PERCEPTIONS . SYMBOL.12 CONSUMER‘S PERCEPTIONS. SLOGAN. 23 SUBMIT A REPORT AND REPOSITION THE BRAND ACCORDINGLY. IMAGERY. NAME. . 21 CURRENT PROFILE OF THE BRAND ON LOGO. DISTRIBUTION ETC IS INVENTORY. 15 ARE THE CURRENT SOURCES OF BRAND EQUITY SATISFACTORY? 16 DOES THE BRAND LACK UNIQUENESS? 17 ARE THE ASSOCIATIONS PERFECT OR NEED STRENGTHENING? 18 WHAT ARE THE OPPORTUNITIES AND CHALLENGES FOR THE BRAND? 19 REGULAR BRAND AUDITS ALLOW MARKETERS TO FEEL THE PULSE OF THEIR BRANDS.

such as in Exhibit 10. Provide an analysis of the effectiveness of these retail outlets. demographic. and similar information. or unsought product Discuss your analysis of where the brand is on the product life cycle (In addition to this description. . b. Brand Description – – – In narrative form. B. Provide a small graphical representation of your brand for one time use in an educational setting. technological. Include the corporate office location. economic. External Marketing Environment Describe the social. information about their marketing operations. Discuss whether the brand is a convenience.A.4. shopping. use the ―Drawing‖ toolbar of MS Word to draw an example of the product life cycle. Marketing Mix Product a. and competitive factors that affect your brand C. political and legal. identify your brand and describe its history Explain the product or service your brand represents and identify the corporation that owns it. and indicate where your brand is on this graph) Place – – – Discuss the primary marketing channel or channels for your brand Discuss the major retail outlets for your brand. specialty. CEO‘s name.

Price Discuss whether the pricing objective is profit-oriented or sales oriented Discuss your analysis of whether the primary price strategy is price skimming. or status quo pricing Discuss two tactics use by your brand for fine-tuning the base price 4. Promotion – Discuss your analysis of advertising campaigns of the brand. penetration pricing. If available. – Discuss how the organization uses public relations for the brand. • . SWOT Analysis Provide your analysis of the strengths. weakness. opportunities and threats associated with your brand. show examples. – Discuss the media types used in the advertising.3. – Describe how sales promotion of the brand occurs.

warehouse & POS Security Keeping it Global Optimized performance for high traffic & transaction volume Customer Personalized Experience Optimizing Distribution & Fulfillment Do more with less – the power of efficiency Respecting the Brand E-Commerce Marketing Reporting & Business Intelligence Functionality that meets your business requirements Rapid Deployment .ONLINE RETAIL BRANDS • • • • • • • • • • • • • • • • • • Retail E-Commerce Platform Online Merchandising Management Driving Sales Conversion Online Payment Pricing and Promotions Increase Order Size & Conversion Rates Seamless Integration to back office.

. Some stores have added FMCG and OTC medicines. It is on set to achieve 100% growth this year and will probably end with Rs 800 crore topline and Rs 18 crore bottomline.5 SUCCESSFUL INDIAN RETAIL BRANDS. For FY06 its topline was Rs 334 crore with mere Rs 6 crores bottomline.A REVIEW South India based neighbhourhood chain of retail stores. It has 35 stores in Bangalore and will touch 60 by end of 2007 further consolidationg its position in TamilNadu. Karnataka. Subikasha currently has 520 stores which makes it the largest retailer in India today.2000 by 2007-08. Groceries. It plans to expand its retail stores to 1. Gujarat and Andhra Pradesh.Kerala & West Bengal] in India including Mumbai metro.000 sft in size and mainly stocks Vegetables. Each of Subhiksha's store is 2. fruits. ICICI ventures holds 24% stake in Subhiksha. On a trial basis they are adding Mobile currency recharging facilities in select stores and may also have a separate section for mobile retailing.5. Subhiksha Trading has planned an ambitious Rs 300 crores expansion across various states [New states .

k.BRAND RETAIL STORES BY PANTALOON. Vishnu Prasad.a export rejected goods]. The Trick: Consumers in this category usually go to BUY seconds and Marthahalli is famous for seconds stores [a. Brand Factory has a different argument. . Who says that Brands are only for the Higher class and Upper Middle Class ? Kishore Biyani finds it hard to digest that argument and hence has unveiled a new retail chain of stores. But they need not compromise by buying seconds and hence Brand Factory will bridge that gap. My experience: Brand Factory or Shoppers Stop. Such a waste of time shopping in India. CEO of Brand Factory has chalked out an ambitious plan of establishing 55 stores by 2010. most Indian products are not at par with international quality being sold in Banana Republic or Macy's but Indian products do match the international price tag. The first one is already operational in Marathahalli in Bangalore / Bengalooru. Consumers aspire for branded products. Brand Factory. His second store is getting ready to go live in Hyderabad soon.

While Hart Schaffner Marx brand is a suit and tuxedo brand for men. Sanjay Lalbhai. Homi Patel. Arvind Brands & Retail division. Hartmax pact to bring more retail brands into India • Arvind Brands. we get the benefit of knowing those 50-60 new ways for suit-making. There are around 150 ways in which a suit can be made and typically in India. CMD. J Suresh. Arvind Brands will have exclusive rights to design.reputed global brands in the men's apparel segment. Pierre Cardin is a designer brand targeted at younger customers." • • • • . CEO of Hartmarx said. has signed a license agreement with the US-based Hartmarx Corporation." With this association. suits are made in around 80-90 different ways. As a part of the agreement. and Bangalore apparel Markets for the three brands. Mumbai. chief executive officer. Pierre Cardin and Sansabelt . a division of Arvind Mills Ltd. the company aims to get to a dominant position in the apparel segment in India. and retail in India. Hart Schaffner Marx. distribute. So. the company will concentrate on the Delhi. catering to 40% of the tailored clothing market in US. "These brands reinforce our commitment to associate with world class labels that have carved a unique place in fashion history. The company has plans to open 10-15 exclusive stores for these brands in the 16-month period beginning this December and will be spending around Rs 10 crore on the venture. said. "It will also give us access to more technology for apparel making. Arvind Mills added." Hartmarx Corporation is America's largest men's tailored clothing company.Arvind. Initially. while Sansabelt is a trouser brand targeted at a cross-section of the populace. "We are extremely excited to be working with Arvind Brands and we look forward to a long and mutually beneficial relationship for both Companies.

– A person continues to utilize store or brand over time. . – A person utilizes the store more than other stores or buy the same brand more frequently . – A person feels positively disposed towards the brand. based upon brand attitudes.RETAIL BRAND LOYALTY • Some consumers use the same retail outlet or purchase the same brand of product on most occasions or on a regular basis. Brand loyalty or store loyalty can be summarized as follows. This buyer characteristic is known as store loyalty or brand loyalty respectively. This is also known as brand allegiance. This attitude of course is based on store or brand preference.

A STRONG . .BRAND LOYALTY • CUSTOMERS INSIST FOR THE SAME BRAND FOR USE AND RECOMMEND TO OTHERS THE SAME BRAND COME WHAT MAY LOYAL CUSTOMERS CAN NOT EXIST WITHOUT THE BRAND WHEN IN NECESSITY • REPEAT PURCHASES DUE TO CONFIDENCE THAT THE BRAND INQUESTION CAN SATISFY HIS NEEDS MORE THAN ANYBODY .SENSE OF COMMUNITY( A KINSHIP WITH OTHER USERS OF THE BRAND) AND ACTIVE ENGAGEMENT ARE THE HALL MARKS OF BRAND RESONANCE.ATTITUDINAL ATTACHMENT.ADEQUATE . • BEHAVIOURAL LOYALTY.RELEVANT ASSOCIATION AND RELATIONSHIP MARKS LOYALTY • BRAND RESONANCE OCCURS WHEN CUSTOMER‘S MINDS ARE ATTUNED TO THAT OF THE BRAND IN MANY RESPECTS.