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Anna Shabeer Swathi
RETAILING AND RETAILER
Is defined as a set of activities or steps used to sell a product or service to consumers for their personal or family use. Retailer: Person, agent, Co., or organization instrumental in reaching the goods, merchandise or services to the ultimate customer.
NATURE OF RETAIL MARKETING
Profitable retailing and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires What the customers buy determines the nature of the retailer’s business. The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits.
then to the retailer & finally to the user of the product .a strong say in the success of a product being launched Marketers have to sell a new product several times: first within the Co. merchandise purchase policies. nature of promotion & expense control measures Retailers act as gatekeepers who decide which new products should formed their way to the shelves of their stores…. Cost & profit varies depending on type of operation & major product line Manage profit of 9-10% on sales Sales volume influences business opportunities.Contd….
KEY ASPECTS OF RETAILING oDirect customer interaction oSmall unit size of sale oPoint of sale promotions oCriticality of location oEmphasis of location .
DRIVERS OF CHANGE IN RETAILING Changing demographics & industry structure Expanding IT Emphasis on lower costs & price Emphasis on convenience & service Focus on productivity Added experimentation Continuing growth of non store retailing .
CHARACTERISTICS OF RETAILING There is a direct end user interaction Only point in the value chain to provide a platform for promotion Sale if small unit sizes Location is a critical factor Services are as imp as core products Large no of retail units to meet the geographical coverage & population density .
GLOBAL RETAILING Market Size & Economics Infrastructure & Distribution Competition Operations Factors Used to Analyze Global Retail Markets Financial & Tax Reporting Merchandise Acceptability Partnering Capability .
GLOBAL RETAILING Reasons for Global Expansion Spread of communication and mass media Growth potential in underserved markets Lowering of trade barriers and tariffs .
GLOBAL PLAYERS Wal –Mart Carrefour Home depot Tesco Sears JC Penney .
INDIAN RETAIL INDUSTRY 5 th largest retail destination globally Comprising of organized and unorganized sectors. Available mall space 100 mill square feet by 2011 . the retail industry was mostly unorganized Largest no of retailers about 12 million… 5 million sell food & related products Retail sector is the 2 nd largest employer after agriculture Amounts to US$ 330billion in 2007 to 427b in 2010 & 637 b by 2015 Retail has a share of 10 -11% in the GDP 6 times bigger than that of T hailand & 4 -5 times bigger than South Korea & Taiwan Expected growth rate 25 -30% annually. though initially.
which operates Westside and Star Bazaar.MAJOR RETAILERS IN INDIA Pantaloon With more than 450 stores across the country Launched country's first hypermarket ‘Big Bazaar’ Tata Group A major player with its subsidiary Trent. it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Established in 1998. .
T he brands like Louis Philippe. Allen Solly. Peter England . RPG Group One of the earlier entrants in the Indian retail market. A Birla Group Strong presence in Indian apparel retailing. Opened the pharmacy and beauty care outlets ‘Health & Glow’. Van Heusen.contd….000 crores by 2011. 90. Reliance More than 300 Reliance Fresh stores and Reliance Mart It's expecting its sales to reach Rs. food & grocery retailing in 1996 with its retail Food world stores.
apparel. and other fabrics. sporting goods. etc. (Goods that do not quickly wear out and provide utility over time. (Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them. furniture.CLASSIFICATION OF RETAIL Retail is usually classified by type of products as follows: Food products Hard goods or durable goods ("hardline retailers") appliances.) . electronics.clothing.) Soft goods or consumables .
Big Bazar . Nokia world. Westside. Apollo Pharmacies Convenience Stores Discount Stores Eg: Wal-mart. Globus Specialty Stores Eg: Bata.MAJOR TYPES OF RETAIL OPERATIONS Department Stores Eg: SS. Adidas Supermarkets Drugstores Eg:Medicine Shoppe.
They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. Pennyful and Ebay. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique.E-TAILING…. Example: Amazon. .
Showrooms either owned or franchised .RETAIL FORMATS AVAILABLE Mono/Exclusive branded retail shops .Product lines of different brands-one stop shop.Display of convergence goods .Complete range available for a given brand Multi Branded retail shops .Focus on particular product categories and carry most of the brands available . .Customers get to have more choices Convergence retail outlets .
in terms of both absolute amount of financing provided and percentage share of voting stock ) T he tax structure favors small retail business Lack of adequate infrastructure facilities (Absence of developed supply chain and integrated IT management) High cost of real estate Dissimilarity in consumer groups Shortage of retail study options Shortage of trained manpower Low retail management skill .CHALLENGES FACING INDIAN RETAIL INDUSTRY Regulatory barrier:(Restrictions on foreign investment in retailers.
. b) suggested retail pricing: involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.RETAIL PRICING The pricing technique used by most retailers are: a) Cost-plus pricing: involves adding a markup amount (or percentage) to the retailer's cost.
BENEFITS OF TECHNOLOGY IN RETAILING INDUSTRY Retailing market is in a state of explosive growth and one of the key factor in achieving the efficient retailing operations is by use of technology. Here are the some of the benefits a retailer can get by using different technologies : Improves Store Efficiency Enhances Customer Satisfaction More productive space .
. Saves Cost Customer Database Customer paper works Investing in technology appropriately can impact the business positively through improved operational efficiencies. happier customers and providing a competitive advantage. increased profitability.
SALES ORGANIZATION .
SALES ORGANIZATION A group of individuals striving jointly to reach qualitative and quantitative objectives. and bearing informal and formal relations to one another .
PURPOSES OF SALES ORGANIZATION To permit the development of specialists To assure that all necessary activities are performed To achieve coordination or balance To define authority To economize on execution time .
SETTING UP A SALES ORGANIZATION Defining Objectives Determination of Activities and their Volume of Performance Grouping activities into positions Assignment of Personnel to positions Provisions for coordination and control .
BASIC TYPES OF SALES ORGANIZATIONAL STRUCTURES .
3 Assistant Sales Manager Office Salespeople Salespeople Salespeople Office Staff . 1 Assistant Sales Manager Div.LINES SALES ORGANIZATION General Manager Sales Manager Assistant Sales Manager Div. 2 Assistant Sales Manager Div.
LINE AND STAFF SALES ORGANIZATION President VP (Marketing) Advertising Manager General Sales Manager Manager (Marketing Research) Director (Sales and Training) Sales Personnel Director Assistant General Sales Manager District Sales Managers Branch Sales Managers Sales Personnel Assistant to General Sales Manager Sales Promotion Manager Director of Dealer and Distribution Relations .
FUNCTIONAL TYPE OF SALES ORGANIZATION Director of Sales Administration Installation and Service Manager Manager of Sales Training Manager of Sales Supervision Manager of Sales Promotion Manager of Dealer and Distribution Networks Manager of Sales Personnel Sales person Sales person Sales person Sales person Sales person Sales person .
SCHEMES FOR DIVIDING THE LINE AUTHORITY IN THE SALES ORGANIZATION .
GEOGRAPHIC DIVISION OF LINE AUTHORITY General Sales Manager Sales Personnel Director Eastern Division Sales Manager Director of Sales and Training Central Division Sales Manager Director of Sales Promotion Western Division Sales Manager Director of Sales Analysis Branch Sales Managers Branch Sales Managers Branch Sales Managers Sales Personnel Sales Personnel Sales Personnel .
PRODUCT DIVISION OF LINE AUTHORITY General Sales Manager Sales Manager Product 1 Sales Personnel Director Director of Sales and Training Director of Sales Promotion Director of Sales Analysis Sales Manager Product 2 Sales Personnel Product 1 Sales Manager Product 1 .
Construction Industry Sales Director of Sales Training Manager. Mining Industry Sales Director of Sales Promotion and Advertising Branch Sales Managers Branch Sales Managers Branch Sales Managers Sales Personnel Sales Personnel Sales Personnel . Lumber Industry Sales Director of Sales Planning Manager.CUSTOMER DIVISION OF LINE AUTHORITY General Sales Manager Director Product R and D Manager.
MARKETING CHANNEL DIVISION OF LINE AUTHORITY General Sales Manager Sales Personnel Director Director of Sales Planning Sales Promotion Manager Advertising Manager Director of Customer Relations Sales Manager Chain Store Sales Sales Manager Wholesale Sales Sales Manager Institutional Sales Export Sales Manager Sales Personnel Sales Personnel Sales Personnel Sales Personnel .
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