Retail

Management
Mkt 531
Retail Evolution
The Retail Value Chain
• Although organizing a company with strict functional
departments is how the old guild works, a new age
method of adding more value to the value chain is to
create cross functional departments and hold them
accountable to “learning milestones”.

Recommendation
• A retail format represents a specific configuration of the retail
marketing mix (e.g. store size, typical location, merchandise,
price and service offered) and it often forms the core of the
retail strategy.
• For example, category killers (a large store, typically one of a
chain, which specializes in a particular type of discounted
merchandise and becomes the dominant retailer in that
category)such as Sapphire, IKEA
• Hard discounters, such as Imtiaz are certainly one of the most
aggressively growing retail formats in food retailing
worldwide

Retail Format
• Now lets Take the category killer Ikea. There’s a word of
caution here, and that’s the risk of ubiquity. There is a
backlash beginning to rise against “IKEA style” in which a
home furnished exclusively by IKEA is considered to be a
bit cheap.
• Ingvar, the founder of IKEA, developed his first business as a
boy, selling matches to neighbors from his bicycle. He found that
he could buy matches in bulk very cheaply from Stockholm, sell
them individually at a low price, and still make a good profit.
From matches, he expanded to selling fish, Christmas tree
decorations, seeds, and later ballpoint pens and pencils. When
Ingvar was 17, his father gave him a little cash for doing well at
school. He used this cash to establish what has grown into IKEA.

Retail Formats
• Early IKEA was very much about opportunist retail,
selling whatever it could, but the big growth came after
Igvar started to think systematically about selling
furniture.

Ikea
• The basic gist is Retail is a long process. What you start
with may not be what you specialize in or are recognized
for.
• Retail is like its consumer evolving and it is because it is
so connected to the user that it must strive to be ever
accepting and ready to grow and change.

Ikea
Types of Retail
Types of Retail 2018
• A department store is a retail establishment offering a
wide range of consumer goods in different product
categories known as "departments".

Department Stores
• Specialty stores are retail businesses that focus on
specific product categories, such as office supplies, men's
or women's clothing, or carpet.
• It isn't the product they sell that determines if a company
is a specialty store, but rather the breadth of their product
offering.
• JF Carpets, Wall master, S.Adullah, Bombay Sweets,
Damaan, WOV, Amir Adnan
• A subcategory would be Multibrand Specialized Retail
Stores like Labels, Ensemble, and Brand Just Pret

Specialty Store
• A supermarket is a self-service shop offering a wide variety
of food and household products, organized into aisles. (Imtiaz
Bahandurabad)
• A Grocery Store is a retail store that primarily sells food.
( This would primarily fall under specialty stores, eg Whole
Foods)
• a hypermarket is a superstore combining a supermarket and
a department store. The result is an expansive retail facility
carrying a wide range of products under one roof, including
full groceries lines and general merchandise ( Hyperstar,
Metro)

Supermarkets
• A pharmacy (also called "drugstore" ) is a retail shop
which provides prescription drugs, among other products.
• Walgreens, Farids, Health mart, Kausur medico, Meher
Impex, etc

Drug Store
• A convenience store is a small retail business that stocks
a range of everyday items such as groceries, snack foods,
confectionery, soft drinks, tobacco products, over-the-
counter drugs, toiletries, newspapers, and magazines
• Select Store, PSO Shop Stop, Kirana, small neighborhood
retail store)*

Convenience Store
• ( Export Left Overs)
• A discount store is a retail store which sells products at
prices that are lower than the typical market price.

Discount Stores
• Ethnic ( BBQ Tonite, Bundookhan)
• Fast food ( OPTP, Broadway)
• Fast casual (OMG)
• Casual dining (Espresso, Pantry, Cosmopolitan,
BellaVita, Delfrio, NewYork Café)
• Family style ( Zauq, Kolachi, Rowtisserie, Nandos)
• Fine dining ( Fuschia, Aylanto, Pompei, Sakura)

Restaurants
• Mobile Retailer - Uses a smartphone platform to process
retail transactions and then ships the products that were
purchased directly to the customer.
• Internet E-tailer –Sell from an Internet shopping website
and ship the purchases directly to customers at their
homes or workplaces and without all the expenses of a
traditional brick-and-mortar retailer, usually sell
merchandise for a lower-than-retail price

New Retailer types

 • Drop shipping is a retail fulfillment method where a store
doesn’t keep the products it sells in stock.
• Instead, when a store sells a product using the drop
shipping model, it purchases the item from a third party
and has it shipped directly to the customer. As a result,
the seller doesn’t have to handle the product directly.

Now you even have a format referred to as

Drop shipping
• The biggest difference between drop shipping and the
standard retail model is that the selling merchant doesn’t
stock or own inventory. Instead, the seller purchases
inventory as needed from a third party—usually a
wholesaler or manufacturer—to fulfill orders.
• We can extensively cover the differences later in supply
chain, however even this form of retail as the
merchandise isn't essentially with the retailer is now in
form
• And how is it so easy, with social media and specifically
Facebook and instagram leading to monetization and
growth of their business pages, it is easier than ever to
start a online business and cheaper relatively too.
History and Evolution of
Retail
• Providing an assortment of products and services
• Breaking Bulk ( To reduce costs manufacturers ship cases of
fabric or raw material to the retailer, who then offer them in
small quantities tailored to consumption patterns
• Holding Inventory ( also Holding your cash) A major function
is to hold on to inventory and make them available when
consumers want them.
• Providing Service, Retailers provide a service that make it
easier to buy and use products ( reduce trips to tailor) , they
offer credit so you can buy now, pay later, they display
products so customers can touch and appraise them before
buying them.

Functions Performed By
Retailers
• Retailing is a major part of World Commerce.
• Estimates for Pakistan’s retail market today vary widely, the
industry mostly reported to the tune of USD 42 billion with
annual sales in excess of USD 105 billion (The Economist
Intelligence Unit).
• The Industry is the third largest after Agriculture and
Manufacturing and still shows a healthy appetite for growth
• Retail Trade and wholesale comprises more than a third of
Pakistan’s service sector which itself constitutes more than
53% of Pakistan’s GDP

Retailing and the

economy
• Retailing is a major source of Jobs*

Economic Benefit of
Retailing
A brief history of Retail
 Global
• "Our mission: to inspire and nurture the
human spirit – one person, one cup and one
neighborhood at a time.“ ( Starbucks)
• "We ignite opportunity by setting the world in
motion.“ Uber
• Girl's Best Friend
Claire’s is the world’s leading brand for fun, affordable
and fashionable jewelry, accessories and beauty
products. (Claire's Mission)

Mission Statement
• "Our vision is to be earth's most customer-centric company; to
build a place where people can come to find and discover
anything they might want to buy online.“
• Amazon.com has had a clear focus and a solitary mission since
it began.
• Founder Jeff Bezos has publicly referred to
the Amazon.com mission statement as the guiding force
behind his leadership decisions many times in the company's
18-year history.
• It can be concluded that the success of Amazon.com as the top
Internet retailing company in the world is due at least in part to
their unwavering commitment to this mission and the daily
execution of it.

Goals and Belief form

your mission statement
• What you offer
• Who you offer it to
• Your service Proposition
• The outcome for your customer

Components of a Mission
Statement
 Global
• "Our mission: to inspire and nurture the
human spirit – one person, one cup and one
neighborhood at a time.“ ( Starbucks)
• "We ignite opportunity by setting the world in
motion.“ Uber
• Girl's Best Friend
Claire’s is the world’s leading brand for fun, affordable
and fashionable jewelry, accessories and beauty
products. (Claire's Mission)

Mission Statement
• "Our vision is to be earth's most customer-centric company; to
build a place where people can come to find and discover
anything they might want to buy online.“
• Amazon.com has had a clear focus and a solitary mission since
it began.
• Founder Jeff Bezos has publicly referred to
the Amazon.com mission statement as the guiding force
behind his leadership decisions many times in the company's
18-year history.
• It can be concluded that the success of Amazon.com as the top
Internet retailing company in the world is due at least in part to
their unwavering commitment to this mission and the daily
execution of it.

Goals and Belief form

your mission statement
• What you offer
• Who you offer it to
• Your service Proposition
• The outcome for your customer

Components of a Mission
Statement
How to write a mission
statement
 "To bring inspiration and innovation to every athlete in the world.“ (NIKE )

• Does Nike follow through on their Mission statement?

2015 2017 2018 2018

Flyease Pro Hijab is Nike signs Lacry Baker, female

Sneakers for Introduced first athlete skate boarder featured
the disabled. with cerebral in ad
“Easy Entry palsy
Footwear

Connecting Mission Statements to

Product Offerings
Nike Branding
• In 1976, Anita Roddick opened the first The Body Shop in Brighton, selling
25 naturally-based skin and hair care products. The Body Shop International
now has over 1,500 stores in 47 countries selling over 400 different products.
• The Body Shop story, however, is not just of a highly successful market-
oriented manufacturer and retailer of toiletries and cosmetics. Like its
founder, the whole organization is committed to issues such as respect for
human rights, animal and environmental protection.
• The organization has arranged and supported national and international
campaigns on animal testing in the cosmetic industry, women’s rights, anti-
nuclear testing and coordinated an international protest at the sentencing and
execution of environmental activist Ken Saro-Wiwa and other Ogoni leaders
in Nigeria who were fighting to protect their community from multi-national
oil companies. All business organizations need to make a profit to survive
but the emphasis at The Body Shop is on profit with a wider social
responsibility i.e. ‘profit with principles.’

The Body Shop