RETAIL MANAGEMENT

 Retail is defined as first point of customer contact.  It means selling the finished product to final consumer.

The Evolution of retail in India

Traditional Formats Haats Melas Mandis etc.

Established formats Kirana shops Convenience/ department stores PDS/ fair price shops Pan/ Beedi shops

Emerging Formats Exclusive retail outlets Hypermarket / Specialty Stores Multiplexes Fast food outlets Service galleries

Retail scenario PAKISTAN 1 INDIA 3 CHINA INDONESIA BRAZIL THAILAND MALASIA TAIWAN USA 0% 20% 99 97 20 30 36 40 55 81 85 40% 80 70 64 60 45 19 15 60% 80% 100% ORGANISED UNORGANISED .

China and Japan. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. India is the world s 4th largest economy in terms of Purchasing Power Parity. For e. Food World. Crossword and Fountainhead in books.Growth opportunities in retail The Indian retail industry accounts for 10% of the GDP and 8% of employment. . after USA. The sheer size of the population demands attention from retailers worldwide and the potential for growth in this nascent industry is tremendous.g. Subhiksha and Nilgiris in food and FMCG. it is expected to move to the third position by 2010. Planet M and Music World in music.

. 2006. The Great Indian Retail Story.Analysis Of organised sector Source: E&Y.

RETAILING IN INDIA Source: NASSCOM 2007 .

Group of Companies  Pantaloon retail India limited (PRIL)  Tata Group  RPG Group  Reliance Retail Limited (RRL)  Aditya Birla Group  Murjani Group  Disney Artist Stores  Vishal Group . Raheja Corp.Major retail players in India  K.

Retailing formats in India There are two types of retailing formats: 1) Store form of retailing 2) Non-store Form of Retailing .

Store form of retailing Malls ± Inorbit mall Branded stores ± Provogue Departmental stores ± Shoppers stop Specialty stores ± Planet M Discount stores ± Big Bazaar Supermarkets ± Food Bazaar Hypermarkets ± Hypercity .

Non-stores kind of retailing Direct selling Direct marketing Television shopping Cataloguing Net marketing .

The Retail marketing mix Merch andisi ng People Pricin g Custo mer Servic e Place/ Locati on Presen tation (Visual Merch andisi ng) Promo tion .

4.MERCHANDISING Merchandising ± means having the right product in the right quantity at the right place in the right time at the right price. 3. Size of the organization. Merchandise to be carried. Factors affecting the merchandising function: 1. 2. Types of stores. Organization structure .

pricing Pricing is one of the factor which is the source of revenue for the retailer. Factors affecting Retail Pricing : Target Market & Demand Economic Conditions RETAIL PRICE Store Policies Competitor¶ s Price .

location Locating the retail store in the right place is considered adequate for success. Steps involved in choosing a Retail Location: Step 1 Identify the market in which to locate the store Step 2 Evaluate the demand & supply with in the market Step 3 Identify the most attractive site Step 4 Select the best side available .

promotion Advertising Sales Promotion Public Relations Personal Selling .

Colour dominance 2. systematic.Presentation (Visual Merchandising) Visual merchandising can be termed as the orderly. Co-ordinated presentation 3. Presentation by price . logical & intelligent way of putting stock on the floor. Methods of display: 1.

Customer services Appearance of store Appearance of sales people Recognizing regular customers Friendliness Assurance re: problem solving Giving prompt service Accuracy in billing .

Recruiting people with the right attitude to fit the jobs. Training 4. Identifying various roles in organization. 2. 3.people The people who deal with costumer at one-to-one level are consider the face of organization This function in retail involves: 1. Evaluating employee performance . Motivating employees 5.

psycho. geographic) Determine the retail format Design organizational structure Select locations .key task performed in retail firm A. Strategic Management Develop a retail strategy Identify the target market (demo.

A. 5. 2. Establish a mission. 4. 6. 3. 7. Identify the option Set objectives Obtain and allocate resources Develop implementation plan Moinitor progress and control . Strategic Management contd« Develop a retail strategy 1. Analyse situation.

Administrative Management Promote the firm. its merchandise and services Manage human resources Distribute merchandise Establish financial control .B.

3.MERCHANDISE MANAGEMENT Buy merchandise 1. Locate vendors Evaluate vendors Negotiate with vendors Place orders . 2. 4.

. Allocate merchandise to stores 3. Review open-to-buy and stock position.MERCHANDISE MANAGEMENT(contd) Control merchandise inventory 1. Develop merchandise budget plans 2.

Adjust prices .MERCHANDISE MANAGEMENT(contd) Price merchandise 1. Set initial prices 2.

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