RETAIL MANAGEMENT

Group – 2
D-17-04
D-17-18
D-17-20
D-17-46
D-17-40
 ORGANIZED AND THE UNORGANIZED SECTOR OF THE RETAIL MARKET

BASIS FOR COMPARISON ORGANISED SECTOR UNORGANISED SECTOR

Meaning The sector in which the The sector that comprises

employment terms are of small scale enterprises
fixed and employees have or units and are not
assured work is registered with the
Organised sector. government.
Governed by Various acts like Factories Not governed by any act.
Act, Bonus Act, PF Act,
Minimum Wages Act etc.

Government rules Strictly followed Not followed

Remuneration Regular monthly salary. Daily wages

Job security Yes No

Working hours Fixed Not fixed

Overtime Workers are paid No provision for overtime.

remuneration for
overtime.
Salary of workers As prescribed by the Less than the salary
government. prescribed by the
government.
Contribution to Provident Yes No
fund by the employer
Increment in salary Once in a while Rarely

Benefits and perquisites Employees get add-on Not provided.

benefits like medical
 DIFFERENT RETAIL OUTLETS
Organised Unorganised

 Monginis  Rucha cold drinks

 Bata  Ullas electronic store

 Super quality  Sudesh foot wears

 Aj supermarket  Gold finer collection

 Brand outlets  India electronics

• DIFFERENT TYPES OF RETAIL FORMATS

• Department Stores: - Bombay bazar

• Discount Stores: - Vishal mega mart
• Supermarket: - super quality, Aj super market
• Warehouse Stores: - wholesale cloth merchants
• Mom and Pop Store (also called Kirana Store in India) : - Bhavu genral store
• Speciality Stores: - nike, Benetton outlets, melsons
• Malls: - mall de goa, caculo mall
• Chemist Shop: - Union pharmacy
• Hawkers: - Milan ice cream
• DIFFERENCES BETWEEN DIFFERENT TYPES OF RETAILERS

• Department stores – they provide various items, goods and products of

different band and categories.
• Discount Stores – these are the shops which sell the goods less than the
normal retail price.
• Supermarket – it is a large self-service shop selling foods and household
goods.
• Warehouse stores - a large store that sells large quantities of products at
low price to the public.
• Mom and Pop store - A small, independent, usually family-owned,
controlled, and operated business that has a minimum amount of
employees.
• Speciality stores - it is a store that focuses on a specific class of a product
or brand.

• Malls - a large retail complex containing a variety of stores and often

restaurants and other business establishments.

• Chemist shops - a store that sells medicines and various other products.

• Hawkers - a person who travels about selling goods, typically advertising

them by shouting specially on a trolley or a cart.
• ADVANTAGES AND DISADVANTAGES BETWEEN DIFFERENT TYPES OF
RETAILERS.
• Department Stores: -
• Advantages of Departmental Stores
• Economies of scale and also cost advantages.
• Availability of cash in liquid form
• Availability of a variety of products under a single roof.

• Disadvantages of Departmental Stores

• Operational cost is very high.
• No personal involvement or maintaining client relationship.
• The staff members are usually poor qualified and lack the requisite
competencies.
• Discount Stores: -
• Advantages
• Selling of their dead stock
• Disadvantages
• Deviation of customer towards products which they don’t originally planned to
purchase.

• Supermarket: -
• Advantages
• Convenience in shopping and affordable prices.
• The customer’s shopping time is considerably reduced.
• Disadvantages
• Incur heavily on administrative and maintenance expenses.
• Service aspects are usually ignored in this model of retail.
• MOM AND POP STORE (ALSO CALLED KIRANA STORE IN INDIA): -

• Advantages
• Low Cost Structure
• Location in residential area
• Travelling Expense

• Disadvantage
• Less scope of growth
• MALLS: -
• Advantages
• Availability of parking
• A stop at the shopping and entertainment

• Disadvantages
• Overcrowding
• Shopping malls are a waste of resources
• CHEMIST SHOP: -

• Advantages:
• Economies of scale
• Technology driven
• Retailing their own pharma brands/generic brands along with competitors
brands

• Disadvantages
• No economies of scale to small medical stores
• Small geographic area
• HAWKERS: -

• Advantages
• You get the things at cheap rates.
• Things are easily available and we do not have to go to far off the markets
• Outsiders can enjoy local food from their stalls.

• Disadvantages
• Sometimes they fool the customers by selling at high prices and outdated
goods.
• They disturb the people by shouting on the streets.
• Many of them do not have licence which creates a problem.
• They often block the footpaths.
• No we are not suggesting any changes because these formats
of retailing are suitable with the merchandises they are dealing
with.
• UNDERSTANDING YOUR CUSTOMER

• Process of purchasing grocery item

• Step 1 :- when customer feel the need of buying the product

• Step 2 : - In most cases customer choose the specific store, for buying the
items, very little people don’t have any specific store in mind.

• Step 3 : - choosing the specific brand, most of the people have specific
brand in their mind for specific item, they have end up on this brand by
using all other brand, if they find some other brand they try that brand also
in small quantity and if they like that brand then they take shift to that
brand.
• A customer purchasing electronic items
• Step 1 : - when customer feel need of a electronic device most of the customer
first decide the budget

• Step 2 : - then they look for the devices and compare and choose the best device
they feel will provide most value for their money. Customer also take take advise
from his friends and family.

• Step 3 :- For the third step there are 3 types of customers

• First type – customer who purchases offline
• Second type – customer choose the product to buy and compare their prices,
online as well as offline
• Third type : - customer who purchase directly online

• Step 4 : - purchasing the item

• A customer purchasing the high value item
• Step 1: - customer feels the need of the product

• Step 2: - customer decide the budget

• Step 3: - customer look for the different options available in his budget

• Step 4: - customer take advice of the expert or his friends and family

• Step 5: - customer experiences the products

• Step 6: - final advice from the expert

• Step 7: - purchasing the product

THANKYOU