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Module I Lecture No 1 to 8 Lecture No 1 Introduction To Know where you are going , you need to know where you have

been. This is the intention of taking you through a very brief history of the retail industry.The module briefly touches upon the retail environment as it stands today and exposes you to the various formats that are in existence. Opportunities A dramatic transformation is taking place as the traditional formats of kirana stores ,hawkers,grocers,are being replaced by the modern formats of department stores ,discount stores,malls,supermarkets,convenience stores,fast food outlets. FDI ( allowed upto 51 % in single brand retail trade ) investments from abroad would further improve its productivity,competetiveness and efficiency. Players like bagari foods, Fun foods, etc are trying to sell their products exclusively to large retail chains to overcome the advertising & distribution hurdles. It has created huge job opportunity similar to the job scenario in IT,BPO industry. Both in metros & two tier cities \towns there is a need for talented people to plan for merchandise ,in logistics , and to manage the supply chain information and stores. Mall management also need trained manpower as around 300 malls are coming up. Rapid rise in disposable incomes Changing lifestyle patterns More nuclear & double income families Increased use of plastic money Better access to consumer finance Large proportion of consumers in age group 20 40 years

Challenges Large geographical areas and a weak infrastructure along with lack of 3 pl distribution services makes distribution costly. Real estate is the single largest operating costs which is critical to the ultimate success of the venture. Talent management is a challenge as there is a need for quality training required to deliver high volume low margin & differentiating service. For International retailers it will be necessary to ensure that Indian operations imbibe Indian culture with involvement of local managers at the highest level. Conclusion With the entry of national \ international players in retail sector the race is on to please the Indian consumer and its time for the Indian Consumer to sit back and enjoy the hospitality of being treated like a King. Facts critical to the success of Indian retail Industry: 1.Evaluation of current market trends 2.Profile discussion of key players in this sector 3.Micro analysis of various challenges & opportunities before the industry. Large organized retailers will come up in the suburbs of metropolitan cities. Small retailers would continue to occupy a niche position as corner side shops because with personalized services and convenient walking distance they are able to provide a special kind of service which will always be demanded.

Module Objectives By the end of this module , you will be able to :

Trace the origin of the word Retail and comprehend its definition. Appreciate the various functions in the Retail Industry. Appreciate its size and importance amoungst other sectors of the world economy Identify the drivers of the retail boom in India Identify the challenges for the retail industry. Discuss the future trends in retailing Distinguish amoung the various retailing formats Identify the different merchandise categories offered at stores

Lecture No 2 What is Retail? According to Philip Kotler : Retailing includes all the activities involved in selling goods or services to the final consumers for personal ,non business use.A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing. The word retail is derived from the French word retaillier, which means to cut off a piece or to break bulk.A retailer may be defined as a dealer or trader who sells goods in small quantities or one who repeats or relates. Retailing thus may be understood as the final step in the distribution of merchandise,for consumption by the end consumers. In an age where the customer is the king and the marketers are focusing on customer delight, retail may be redefined as the first point of customer contact. Functions & role of a retailer is to provide real added value or utility to the customer:

1.In the form of the product itself, a retailer does not supply raw materials but rather offers finished goods and services in a form that the customer wants. The retailer performs the function of storing the goods and providing us with an assortment of products in various categories. 2.He creates time utility by keeping the store open when the consumers prefer to shop. 3. By being available at a convenient location he creates place utility. 4. Finally when the product is sold, ownership utility is created. Relationship with customer lasts over the complete life of the product . Therefore the customers experience of our products continues to be formed & built over the period that they own the product.To keep our customers satisfied during the complete life cycle of the product , we have to improve their buying & ownership experience by becoming their advisors for life .If their experience is good there is a possibility that they will upgrade within the brand thus extending the customer for life. So if we maintain good work flow process & sales operating standard then it is possible to deliver uniform & consisitent quality of services in order to achieve a high customer satisfaction index which will decide the customers future intention of the 3 RS namely: 1. Recommendation 2. Revisit 3. Repurchase. This results in higher sales & revenue , increased confidence in company & staff , improved brand image.

. Lecture No 3

Theories of Retail No single theory can be universally applicable or acceptable.The application of each theory varies from market to market , depending on the level of maturity and the socio-economic conditions in that market. The theories developed revolve around the importance of competitive pressures,the investments in organizational capabilities and the creation of a sustainable competitive advantage, which requires the implementation of strategic planning by retail organizations.Theories of retail development can be broadly classified as : 1. Environmental 2. Cylical 3. Conflictual Environmental Theory Darwinss theory of natural selection has been popularized by the phrase survival of the fittest. According to this theory those retailers that successfully adapt technological,economic,demographic and legal changes are the ones that are most likely to grow and prosper.The ability to adapt to change,successfully,is at the core of this theory. Cylical Theory The most well known theory of retail revolution is The Wheel of Retailing theory.This theory as described by McNair suggests that retail innovators often first appear as low price operators with low cost structure and low profit-margin,offering some real advantages,which enables them to take customers away from more established competitors.They then become vunerable to new discounters and lower cost structures that take their place along the wheel.As a result scrambled merchandising occurs as the retailer adds goods and services that are unrelated to each other and the

firms original business so as to increase overall sales and profit margins.This is termed as the wheel of retailing. Conflict Theory Conflict always exists between operators of similar formats or within broad retail categories.Retail Innovation leads to the development of more formats.This is also known as the dialectic process i.e blending of two opposites to create a new format as follows: 1. Thesis Individual retailers as corner shops all across the country 2. Anthesis A position opposed to Thesis develops over a period of time. These are department stores 3. Synthesis There is a blending of the thesis and antithesis. Supermarkets and hypermarkets thrive.

Lecture 4 Classification of Stores Types of Retail Formats In this module we attempt to classify the existing retail models/formats.The basic classification done is based on store based retailers and non-store retailers.The store based retailers can be further classified on the basis of the merchandise (operations) that they offer , or by the manner of ownership.

Classification on the basis of Ownership: 1. Independent Retailer An independent retailer is one who owns and operates only one retail outlet.Such an outlet is managed by the owmer & proprietor and many such stores tend to be passed on from generation to generation examples are Daily needs shop, Roadside vendors, paan shops. 2. Corporate Retail chain When two or more outlets are under a common ownership , it is called a retail chain. Examples are Spencers , shoppers stop, Arrow. 3. Franchising A franchisee is a contractual agreement between the franchiser and the franchisee , which allows the franchisee to conduct business under an established name as per a particular business format , in return for a fee or compensation. Examples are Mc Donalds & Pizza Hut. 4. Leased Departments These are also termed as shop in shops.When a section of a department in a retail store is leased/ rented to an outside party , it is termed as a leased department.Examples are perfumes & cosmetic counters 5. Consumer Co Operatives A consumer co operative is a retail institution owned by its member customers.Examples are Sahakari Bhandar & Kendriya Bhandar Classification on the basis of the Merchandise Offered If retailers are to be classified on the basis of the merchandise mix(operations) that they Offer to their customers, yhey may be very broadly be classified into food and the general merchandise retailers.Within this classification

we can further classify them on the basis of the target market that they cater to examples are speciality stores,department stores and convenience stores 1 Convenience Stores These are relatively small stores located near residential areas- they are open for long hours, open seven days a week and offer a limited line of convenience products like eggs,bread, milk.Size varies from 1000 sq ft to 3000 sq ft . examples are Reliance Fresh , Subiksha . 2. Supermarket These are large , low cost , low margin , high volume , self service operations designed to meet the needs for food , groceries & other non food items(like garments & electronics).Examples are Reliance Super , sizes are 5000 sq ft to 10,000 sq ft. 3. Hypermarket The word hypermarket is derived from the French word hypermarche, which is a combination of a supermarket and a department store.The store occupy an area which ranges from anywhere between 80,000 to 2,00, 000 sq ft and offer a variety of food and non food products like clothes , jewellery, sports equipment , cycles , books ,cdd , tvs , computers apparels , furniture , travel accessories.Examples are BigBazar .,Walmart, Star Bazar. 4. Speciality Stores A store specializing in a particular type of merchandise or single product of durable goods ( that is home furniture , consumer electronics) is termed as a speciality store.Examples are jewellery , apparel , furniture. 6. Department Stores A department store is a large scale retail outlet that offers a number of different product categories.Size varies from 20,000 sq ft to 40,000 sq ft Examples are Shoppers Stop, Westside , Lifestyle.

7. Other Formats Factory outlets are off price retail outlets, Catalogue showrooms non product display, Dollar Stores , Automateed vending / Kiosks for cigarettes , cand & toffee, The cash & Carry for small businessmen & retailers., Airport Retailing gift shops

Lecture 5 Franchisor and Franchisee Concept , Types , advantages , disadvantages. Concept : The origin of the word franchising can be traced back to the French word franchise , which means to grant powers to a peasant. Definition : A franchise is a continuing relationship in which the franchisor provides a licensed privilege to do business , plus assistance in organizing, training,merchandising, and management , in return for a consideration from the franchisee. Franchisor is the seller of the franchisee , he owns the trademark/product/service and licenses the trademark to another party. Franchisee is the person who pays for and purchases a franchisee from a franchisor as above and operates a business using the name , product , business format provided by the franchisor. Types The first type being a product/tradename franchise and the second, a business format franchise. Under product / trade name franchising , the franchisee concentrates on one manufacturers product ,. Examples are automobile , dealership and gas service stations.

Business Format franchising has been defined as the granting of a license for a predetermined financial return , by a franchisor to its franchisees , entitling them to make use of a complete business package , including training , support and the corporate name ; thus enabling them to operate their own businesses according to exactly the same standards and format as the other units in the franchised chain .Examples are restaurants , convenience stores. Advantages of Franchising Low Risk a franchise business eliminates the risk of learning from a completely new business Growth As a franchise is a part of a network the opportunities for the individual franchisee to grow also increase. Ease of Financing & Operational Support a franchisor may assist the franchisee in obtaining financing for the setting up of the business. Advertising advertising costs are greatly reduced because the cost is shared by the franchisee. Disadvantages Royalty / Fees The franchisee fees or the royalty that may be required to be paid may be relatively steep for a successful brand. Lack of control if the franchisee acts independently , it may result in the loss of goodwill/dilution of brand. Franchising in India examples are Holiday Inn , Dominos , KFC , Pizza Hut. It is estimated that are over 600 active franchisors in the country and over 40 ,000 franchisees across various sectors in India. Annual turnovers range between Rs.8,000 to Rs.10,000 crores and investments are believed to be Rs.5,000 crores , employing over 3,00,000 people.

Lecture 6

Organised and Unorganised The local kirana store . the paanwala . and the vegetable vendor who are very much a part of the Indian retail landscape , are termed together by many as the unorganized sector.They do not use technology , they are well aware of the needs and wants of their customers , are aware of their likes and dislikes and they know what and how much to stock.Many of them also know their customers by name and offer add-on services like free home delivery and credit facilities.This is the traditional form of retail in India. While it is true that traditional formats exist in all the markets of the world , the level of maturity of the market determines the dependence on the formats traditional or modern. The total retail sector in India is estimated at rs.9,30,000 crores ( 2003 04 ).The organized retail sector stood at Rs.28,000 crores in the same year. , thereby accounting for a mere 3 % of the total retail trade. The organized retail trade is estimated to be around Rs. 1,00,000 crores by the year 2010. Break up of Retail Trade in India ( report 2005 KSA Tecnopak ) Retail Segment Clothing & Fashion Accs Jewellery Watches Footwear Health & Beauty Care Consumer Durables Mobile Handsets & Accs Furniture & Furnishing Total size ( Crores ) 80,000 43,500 2,800 10,000 30,000 32,000 13,000 33,000 Size of Organised ( Crores) 10,900 850 1,110 2,500 550 2,500 840 2,200

Food & Grocery F & B ( Catering Services ) Books & Music Entertainment Total

61,500 35,000 8,200 25,000 9,30,000

2,000 2,000 800 650 28,000

Size of the Organised Retail market ( Rs. Cr ) Category Food Clothing Consumer Durables Books & Music Total 2001 - 02 1800 4950 1650 450 16000 2007 7473 10423 3787 1426 37216 CAGR ( % ) 33 16 18 26 18

Module I Lecture 7 Retail Scenario in India 1. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs.

20 billion but is present across most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.) One of their recent innovations include e-commerce hybrid format of small shops , the area for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to browse through the entire range of products on digital screen. They will be able to place the order, the delivery of which will be arranged by the shop to their homes within a few hours 2. K Raheja Group They forayed into retail with Shoppers Stop, Indias first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion. The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 bn in its first year. Crossword brand of book stores, Homes stop a store for home solutions, Mothercare a concept stocking merchandise related to childcare are also owned by them. Recently, Rahejas have signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010.

3. Tata group: Established in 1998, Trent - one of the subsidiaries of Tata Group operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in 2006. Tatas has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics chain. It is a 1500017000 sq. ft. format with 8 stores as of September 2007. Another subsidiary, Titan Industries, owns brands like Titan, the watch of India has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their combined turnover is Rs 6.55 billion. Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls. 4. RPG group: One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencers Hyper, Super, Daily and Express formats and Music World stores across the country. RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006. It is planning to venture into books retail, with the launch of its own bookstores Books and Beyond by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010.

5. Landmark group: were launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio. Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail), hypermarkets & supermarkets (Max), kids entertainment (Funcity). They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100 crores on Citymax 3 star hotel chain. They have already instituted a separate company christened Citymax Hotels (India). 6. Piramal Group In September 1999, Piramal Enterprises announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramyd Megastore; and a family entertainment centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food & grocery retail with the launch of TruMart supermarkets in Pune. They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6 mn in 2005. Piraymd Megatsores contributes more than 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5 years. 7. Subhiksha

Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq ft with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its operations to 1200 stores by 2008. New but potential BIG players 8. Bharti-Walmart Their plans include US$ 7 bn investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end. 9. Reliance Indias most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermart has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana. 10. AV Birla Group They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town.

In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 - 9000 crores in the first 3 years till 2010. The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400 stores in the country. Their More range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities in Western India in 2007.

Module I Lecture 8 Current Trends in Retail Factors affecting the growth of retail in India Growth in GDP , Changing Income Profiles , the emergence of young Earning India , FDI in Retail Challenges to Retail Development in India Retail not being recognized as an industry in India The high costs of real estate High stamp duties Lack of adequate infrastructure Multiple and complex taxation system Current Trends 1. Modern Retail will thrive but traditional Retail will survive. 2. Consumption will shift to Lifestyle categories 3. New Retail formats will emerge and grow 4. Modern Retail Growth will be fuelled by private equity infusion 5. Consolidation will increase in the Retail sector 6. There will be creation of large Retailer Brands ( Private label )

7. There will be interesting interplay between retailers & suppliers 8. Modern retail will face a few key bottlenecks 9. New Investments will happen in the back end 10. Modern retail will benefit consumers & rural sector

Module II Lecture 9 to 20 Lecture 9 Retail Store Operations Overview An important part of retail management is managing store operations. Store operations are all the activities that must be performed to make the store functional and fulfil target customers expectations from the store.These include the following key activities: Managing the operations on the shop floor and the back-end to ensure a smooth and pleasing customer experience. Ensuring safety of the merchandise ,store and people ( staff and customers). Ensuring right quantity of merchandise is available at the right time and right place.

Ensuring fast check-in and check-out of customer. Managing records and reports for predicting right quantities of the right product and analyzing buying trends. These activities have been divided in the seven key areas: 1. 2. 3. 4. Performing store administration Managing store environment Ensuring store security Managing inventory , stacking and display 5. Managing promotions , events , alliances and partnerships 6. Managing customer service 7. Managing cashiering and receipts

Module II Lecture 10 Store Administration Store administration deals with various aspects like the cleanliness of the store premises , maintenance of the store faade and the display windows, etc.Administration is also responsible for utilizing the store personnel effectively. This involves the task of cleaning the store and arranging the merchandise before the first customer can walk into the store. The premises of the store need to be maintained as per the standards decided upon by the management. An important task of administration involves ensuring that all the required permissions and licenses to run a retail establishment are procured from the right authoriries. Following is the list of Licenses to be needed:

1.Registeration under Shop & Establishment Act 2.License for Weights & Measures 3.Registeration for Central Sales Tax 4. Registeration for Employees Provident Fund 5. Phonographic Performance License or Music License Module II Lecture 11 Store Environment management Managing the operations of a retail store starts by determining how the tasks pertaining to the premises are to be performed. Firstly , the duration of the hours for business need to be determined alongwith specifying with whom the responsibility of opening and closing the store lies with. Security of the store premises and of the merchandise in the store is equally important. Module II Lecture 12 Security of merchandise is needed to ensure that pilferage of merchandise or shrinkage as it is commonly termed , is minimal. Inventory shrinkages may arise due to theft by employees , customers or by error on the part of the store at the time of receiving merchandise. A large number of retailers across the world use specially designed tags , which are attached to products. These tags are sensed by the electronic devices specially designed to detect them and are usually placed at the store entrance and exits.If an attempt is made to take the product out of the store without removing these tags , an alarm goes off , thus alerting the store personnel.The other device used for monitoring the movement of customers and staff is video cameras.Some retail stores also provide separate entrances and exits for store staff , so that they can be checked each time they leave and enter the store premises.

Module III Lecture 13 Man Management Duty Roster

Module III Lecture No 14 New Store Opening Another very important activity that is critical to the retailing industry is new store opening. In this the newly recruited operations team takes handover from projects team so as to make the store ready before opening the store for customer entry. The following stages are part of a new store opening manual process : I Human Resource : Recruitment of Team ( CSE , SR CSE , SS , DM & ASM) Training Modules & Induction ( dos & donts briefing ) Trade Licenses Admin requirements Following is the HR opening checklist : 1. Municipal License 2. Prevention of Food Adulteration License 3. Drugs License 4. Insecticide License 5. Central & State Sales Tax registeration certificate 6. Shops & Establishment Act 7. Civil Supplies License

8. Contract Labour registeration certificate 9. Phonographic performance License 10. ESIC certificate 11. Stamping registeration certificate ( weights & measures) 12. EPF ( Provident fund) 13. Uniform for Staff , promoters & concessainners 14. ID cards for all staff 15. EPABX & telephone lines 16. Office stationary 17. Xerox jobbers 18. Bagging ( housekeeping & security ) 19. Courier 20. Liason with police , fire dept & other local bodies 21. Photographer 22. Travel agents 23. AMC systems , printers & telephones 24. Drinking water supply 25. Lockers 26. Coffee/tea vending machine 27. Garbage bins 28. Salary accounts II Operations: Project handover checklist Marketing checklist Loss Prevention checklist Warehouse checklist Outsourced services checklist Equipment master checklist Following is the project handover checklist: 1. Heavy duty & light duty racks

2. Shelving accessories peg hooks & perforated back panels 3. Tubelight guard on racks 4. Price Indicator label data strips 5. Slotted angle racks 6. Impulse bins 7. Partition works changing room 8. Stackable hyper bins 9. Vegetable heapers 10. Electronic weighing scales 11. Chillers 12. Freezers 13. Safe 14. Fire Extinguishers 15. Cable TV connection 16. Erection of cash counter / check out 17. POS installation & POS weighing scale 18. Carpets 19. Floor treatment 20. Trolley Bay 21. Trolley & shopping baskets 22. Wheel chair 23. Entrance door mat 24. Signages all internal & external 25. Pest control & fumigation Following is the marketing opening checklist: 1. All labels top 100 sku , supplier out of stock 2. All A2/A3/A5 POP holders 3. Layout of merchandise flow 4. Identification of subcat location bay wise 5. Fixing of data strips 6. Receipt of plannogram 7. Receipt of end cap & till end plan 8. Hyper bins positioning & marking 9. Display policy & top stacking procedures

10. Internal signage positioned & cleaned 11. Line of sight SKUS marking 12. Cross bins position 13. Wall signages 14. External area debris clearance 15. Parking rules , regulations & lighting 16. Electrical conection for concessainnaires 17. Ad hoc price change requisition form 18. Exchange procedure 19. Perpetual inventory procedures 20. Unclaimed baggage / lost & found procedures 21. Conessainnaires terms of trade / signed off agreement 22. Marking of two wheeler & four wheeler parking 23. Marking of trolley bay 24. Main awning lighting check 25. Customer toilets 26. Final painting & patch up 27. Emergency lights working 28. Promotions test run 29. PA system working & training 30. Instore music system with local music 31. Free gifts updation check 32. Door mats & garbage bins positioned Following is the Loss Prevention check list: 1. Prepare evacuation & fire team 2. List of telephone numbers in case of emergency 3. Locks for doors & shutters 4. Fire detector installation 5. First Aid box 6. Generator operations training 7. Diesel vendor identification , stock availability & supply schedule 8. Key board cabinet 9. Frisking chambers with curtains

10. Fire alarm test register 11. Key control register 12. Photography & visitor register 13. Material In & Out register 14. Security staff movement register 15. Security guard roster & duty register 16. Fire officer inspection certificates 17. Cash room burglar alarm check 18. Store opening & closing register 19. Numbered tokens for customer baggage 20. Briefing all staff on fire evacuation drill , process & procedures 21. Signage indicating emergency exit 22. Lock sealing tape 23. Notice Board 24. Customer counting machine 25. Cash cabin opening 7 closing register 26. Shop lifting register 27. Promoters timing & duty roster 28. Warehouse scrap register Following is the Warehouse opening checklist: 1. Pumping trolley 2. Weighing machine 3. Sealing machine 4. Crates 5. Pallettes 6. Drums 7. EAN code scanner 8. 2 Up / 5 UP barcode scanner 9. Packing material BOP covers (50 gm,100 gm,200gm500gm)HDPE bags (10kg,20kg,50kg) , F&V rolls Following is the outsourced servives checklist: 1. Electrical contractor

2. Housekeeping agency 3. Painter 4. Plumber 5. Pest control agency 6. Shutter mechanic 7. Carpenter 8. Garbage disposal 9. Scrap sale contractor 10. Cable Network Following is the check list of equipment master: 1. Water cooler 2. Tables 3. Almirahs 4. Split & window AC 5. Visitor chairs 6. Manager chairs 7. Staff lockers 8. Filling cabinet 9. Fax IV Commercial : Requirements for new stores Cash Supervisor checklist Stationary checklist Following is the commercial opening checklist: 1. Currrent Bank a/c 2. Cash pick up 3. Coins for change 4. C forms 5. Insurances till cash & safe cash 6. Insurance public liability & fidelity 7. Fake currency detector

8. Cash counting machines 9. Emergency lamps 10. Cashier OB boxes with stapler , calculator. 11. Declaratiob register 12. OB register 13. Cashier shortage summary 14. Petty cash /Impressed register 15. Sage register 16. Manual Bill Books 17. Special Discount Authorisation Book 18. Refund register 19. Day end & begin procedures 20. Banking register 21. POS rolls 22. Cash receipt books 23. All voucher , computer , box, flat files 24. Carry bags availibility V IT : Equipment checklist Pre Opening checklist Following is the IT opening checklist: 1. Check all SKUS prices are reflecting on cask till 2. Check MRP price wih system product price 3. Check F & V price matches with product on floor 4. Check bill no is starting from 0 5. Ensure data back up plan

Module II Lecture 15 Indenting and Receiving:

INDENTING TO DC

Was Stock -updation done properly? (Check for 3 days at random) Is the Indenting being done as per schedule? (Check for the time on the printout) TOTAL Indenting: SKU_NAME APPLE FIJI APPLE GRAINY SYMITH APPLE ROYALGALA APPLE WASINGTON BANANA ROBUSTA BEANS FRENCH BEETROOT BITTER GOURD BOTTLE GOURD LOOSE CAT FRU. FRU. FRU. FRU. FRU. VEG. VEG. VEG. VEG.

MAX POINTS 1 1 2 UOM QNT . ? KG ? KG KG ? ? KG ? PCS ? KG ? KG ? KG ? KG

HyperLucknow 0 1 1

BRINJAL NAGPUR BRINJAL SUPHAL CABBAGE CAPSICUM BELL GREEN CAULIFLOWER CHERRY FRESH LOOSE CHILLI GREEN CLUSTER BEAN COCCINEA COCONUT COLOCASIA CUCUMBER KEERA FRESH ALMOND FRESH DATES GARLIC GINGER GRAPES IMPORTED KAMALKAKDI KHARBOOZA SRADHDA(YELLOW MELLON) KIWI LADIES FINGER(OKHRA) LEMON LOBIA LOOSE DHANIA LOOSE PALAK MANGO SAFEDA MINT LEAF MUSAMBI LOOSE ONION PAPAYA PARWAL LOCAL

VEG. KG VEG. KG VEG. PCS VEG. KG VEG. PCS FRU. BOX VEG. KG VEG. KG VEG. KG FRU. PCS VEG. KG VEG. KG FRU. KG FRU. PKD VEG. KG VEG. KG FRU. KG VEG. KG FRU. KG FRU. VEG. VEG. VEG. VEG. VEG. FRU. VEG. FRU. VEG. FRU. VEG. PCS KG KG KG KG KG KG KG KG KG KG KG

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

? ? ? ? ? ? ? ? ? ? ? ? ?

PEACH IMPORTED PEARS IMPORTED PINEAPPLE PLUM LOOSE POMEGRANATE MRIDULA POTATO PREMIUM POULTRY EGGS PACK OF 6 PUMPKIN COUNTRY RATNAGIRI RAW MANGO RAW BANANA RED CARROT RIDGE GOURD SWEET TAMARIND TOMATO COUNTRY WATERMELON-KIRAN MANGO DASHARI MANGO MALLIKA {HUSNHARA} MANGO LANGDA MANGO KESAR{MUMBAIYA} APPLE GOLDEN (ITELIYEN PEACH) MANGO CHAUSA KARONDA LEAF CHANNA SAAG(RED SAAG)

FRU. FRU. FRU. FRU. FRU. VEG.

KG KG PCS KG KG KG

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

VEG. PKD VEG. KG VEG. KG VEG. KG VEG. KG VEG. KG FRU. PCS VEG. KG FRU. KG FRU. KG FRU. FRU. FRU. FRU. FRU. VEG. VEG. KG KG KG KG KG KG KG

Receiving:

RECEIVING

RECEIVING FROM DC Was the trip sheet in order? Are there incidents of seal tampering reported by security? (Check security register) Cartons/Gunny bags/HV Boxes Were the quantity cross verified? (Check vehicle log with security register) Are discrepencies mentioned in the GAD Sheet? Are GAD sheets sent to WH on a daily basis duly signed by Supervisor/Store Manager? Has TO/TI been received for GADs? DSP RECEIVING :

MAX POINT 1 1 1 1 1 1

HyperLucknow 1 1 0 0 0 0

PRIOR TO RECEIPT: Was the P. O. raised and suppliers informed? (Check P.O. Register) Were the P.O.s raised within the scheduled time? Are the suppliers delivering as per agreed schedules? (Check Receiving time on invoice of available invoices) AT THE TIME OF RECEIPT: Did Security make entry into the pass-in slip register? (check for any inconsistencies in serial nos or dates) No receiving after 4:30 PM (check with WH) Did security make Pass-in-slip supplierwise? (Check last 3 days details.) Were there any discrepency? Price/Quantity? (Check previous days details) 1 0 1 0 1 1

Were the discrepencies corrected by the supplier? (Check previous days details and whether signatures were obtained) AFTER THE RECEIPT : Are the GRNs prepared daily? (Check last three days details. Check total no. of Security Pass and the total no. of GRNs raised) Was the printout of the GRN taken and a copy attached with the bill? (Check the previous days details.) DSP ordering register to be maintained properly (Manual Register) Ordered vs Received quantity After the day end, was the GRN register printed and the bills with GRNs sent to the HO on a weekly basis? (Check the last 4 days details) Is it signed by the WH Manager? (Check the last 4 days details)

When the products come under a challan and the bill next day,are these compared? (Check three dates) Is the above signed by the vendor and the WH Manager? TOTAL

1 1 15

0 0 3

Module II Lecture 16 Store opening and Closing: HyperLucknow 0 0

STORE OPENING AND CLOSING

STORE OPENING Was the Store opening details recorded in the Store Opening and Closing Register? ( Check for 3 days at random) Was the transfer of keys done

MAX POINTS 1 1

through the Register? STORE CLOSING Was the Store opening details recorded in the Store Opening and Closing Register? ( Check for 3 days at random) Was the transfer of keys done through the Register? CASH DEPT -SAFE ROOM Is the safe being opened and closed in the presence of the LP? Is the safe room closed at 6.30pm? Does the Cash In-charge have a set of all keys? TOTAL 1 6 0 0

Module II Lecture 17 Cashering:

CASH

CASH COLLECTIONS Does pick up/declaration cash total for the day agree with Bank pa working day? CREDIT CARD SLIPS AND COLLECTIONS Is EDC/ EOD Settlement equal to CB4? Is EOD Settlement available for all days? Is EOD settlement made at the end of the same day?

Are manual charge slips summarised and presented to the bank ne applicable) Are cashier declarations backed by chargeslips?

Have Credit card slips been checked with credit Card demand sum CB1? Are reconciliations done on receipts? Are discrepancies being recorded? Have receipts against credit card been entered?

Are Service charges are as per agreed rates? Does the Daily Sales/Outstanding report, reconciliation statement for the day tallied with CB1 and SL3 on a daily basis? COUPONS SALES Have the coupon summary been checked with coupon report CB5 and CB1?

Have receipts against Coupon sales been entered on the day of th Are the cheques banked on the next working day? Are the coupons sent to Issuer tallied with CB5 and signed by the Are the coupons Cancelled by C & A everyday? (Verify coupons on the day of audit)

Whether free coupons / paper cuttings are sent to HO alongwith t SALES CASH: Does the number of pouches tally with the entries in the drop box Is it done in the presence of LPO? (Check for the time & signatures of the CSS and LPO).

FLOAT CASH: Is the FC handed over to the Cashiers through the CR2/OB/FC Reg both cashier & CSS Check the CR2 Register

Is the FC amount taken back and entered in the CR2 Register duri IMPREST CASH: Is the Expense summary note signed by the Stock Controller?

Whether the denominations of cash/coins are recorded at the back page/register?

Is sales cash utilised for petty expenses? (Check: Any till and go to option called cross check and take a p with physical cash in the tills cash drawer and question any shorta SUSPENSE VOUCHERS Is the voucher being signed by the Stock Controller? (ideally there should not be any suspense voucher)

HOME DELIVERY Are Home Delivery bills entered in the home delivery manifest, sec loading Has LP Manager conducted surprise checks in the Home Delivery SDANs Are SDANs are prepared prior to the giving of discount? Are reasons given for the SDANs? Is it signed by the floor supervisor? Is it counter signed by the floor manager?

Are they serially numbered/dated? Are POS bill and till numbers written? Does EX6 report reflect the SDAN discounts? Are Discounts over Rs.500/- have the business head's signature? Is there adequate controls on issue of books?

Credit customers Are the Customer introduction formats duly signed by the business manager? Is credit limit fixed for every customer? Are credit period clearly mentioned? Is there any outstanding which exceeds credit limit? Is there any outstanding which exceeds credit period?

Manual bills Do they have the reference of the POS bill number and till number Are they serially numbered/dated Is there adequate controls on issue of books

Money Receipts Is there adequate controls on issue of books? ( should only be with

Are they serially numbered/dated Are original (white copy) attached for adjustment against bills?

Do they have the reference of the POS bill number and till number Are there cash refunds? Is there an IOM for other income (Marketing & Concessionaires)? Safe Register Is it updated everyday?

Are all monies received entered in the register (manual bills, mone

Are all monies received deposited the next day ( except advances, Are promotion gifts (Gold/Silver articles) entered in the register? TOTAL

Module II Lecture 18 Statutory and Process Audit :

PROCESS AUDIT FORM FOR HYPER STORE FORMAT HyperLucknow 1 0 0 1 0 0

RETURNS

RETURNS TO VENDORS Is the damaged/expired stocks being returned to vendors as per schedule? (These stocks are to be returned by NRGP at the time of next delivery.) Is the GRWM being signed by the Supervisor and the WH Manager? Are TI's received within stipulated time (2-3 days from collection date) RETURNS TO DSP VENDOR Were the stocks returned under a Non Returnable Gate pass? Was it duly signed by the Supplier? Are NRGPs entered in NRGP register with the Security?

MAX POINTS 1 1 1 1 1 1

Have the NRGP been sent to HO? RETURNS TO F&V VENDORS Is the qty returned entered in the register? Is it signed by the warehouse staff and the security? Are NRGP's raised on the same day TOTAL

1 1 1 10

0 0 0 2

STOCKS TO BE DISPOSED AT STORES

F&V AND BAKERY Is the F & V and Bakery SKUs dump being entered in the Dump register & signed by the supervisor Are DADs signed by WH & Cat. Supervisor & LP?

MAX POINTS 1 1

HyperLucknow 0 0

Are SVs raised everyday? Is the SV signed by the Stock Controller? Are there differences (Quantity and Code) between dump register,DAD & SV? Are the stocks being dumped in the presence of LP/security staff? OTHER CATEGORIES Are DADs signed by WH & Cat. Supervisor & LP? Is the SV signed by the Stock Controller? Are there differences (Quantity and Code) between DAD & SV? Are the stocks being dumped in the presence of LP/security staff? TOTAL

1 1

1 0

1 1

1 0

1 10

1 4

INVENTORY AT STORE

PI/HV Is PI / HV check done on a daily basis? Is the CSA alloted for PI/HV rotated on a regular basis? Were all the SKUs counted? (Check for last 5 days) Was PI-HV list printed out? (Check for last 7 days) Is the PI/HV report signed by the Stock Controller? Was the diff in the Book and Physical quantity more than 5 in any SKUs? Physically inspect 5 SKUs each of the stocks reported short and HV on the day of audit. Are all in order? STOCK UPDATION & QUANTITY RECONCILIATION

1 1 1

1 1

HyperLucknow 0 0 0 0 0 0 0

MAX POINTS

Have the cumulative net transfer quantity and value as per warehouse Guard sheet been tallied with SK1 net transfer quantity? Have the SL3 quantity and value been tallied with SK1 sale value? Have SV quantity and value as per SV register been tallied with SK1 quantity? Have stock updation control quantity been agreed with SK1 quantity? TOTAL

1 1 1 1 11

0 0 0 0 0

F & V STOCKS

Is the Dump check completed before 10.30 AM Are Salvaging of F & V being done regularly? FLOOR CLEANLINESS - F&V

MAX POINTS 1 1 1

HyperLucknow 1 1 1

Hourly Freshness Checklist done Baskets availability Packing & Sticker roll availability Adequate staffing Pricing display standards Heapers full Benchmarking done (twice a week minimum) Weighing scales in order Barcoding & till cleanliness TOTAL

1 1

0 1

1 1 1 1 1 1 11

1 0 1 1 1 1 9

HUMAN RESOURCE & ADMINISTRATION

Attendance Register Updated Weekly Offs mentioned National and Festival Holidays mentioned Leave Register Leave with wages entered Shift Roster displayed Licenses The following licenses are to be updated and displayed: 1. Labour License 2. Contract Labour License 3. Dept Store license 4. Fast Food license if applicable 5. Bakery license if applicable 6. Insecticide license 7. 7 Days Exemption 8. Health License 9. PFA license 10. Stamping and Regn Certificates if weights & measures. 11. ST and CST / Branch

1 1 1 1 1 1 1 1 1 1 1

HyperLucknow 1 0 1 1 0 1 0 0 0 1 0 1 0

MAX POINTS

Certificate. 12. OTC / Drug license 13. Music license 14. Food & Civil Supplies License 15. Liquor License where aplicable 16. APMC (If applicable) 17. Hoarding & Display Licences STAFF DISCIPLINE (INCL. PROMOTERS ) a) GROOMING b) UNIFORM c) IDENTITY CARD d) SHOES STAFF ROSTERING PLAN STAFF ATTENDANCE TIME HOUSE KEEPING STANDARDS a) FLOOR b) SHELF C) PREMISES TOTAL

1 1 1 1 1

0 0 0 0 0

1 1 1 1 1 1 1

1 1 1 1 1 1 1

25

13

DISPLAY

MAX POINTS

PI LABELS Lowest to Highest Prices All SKUs updated STACKING Is it neat ? FIFO Expiry Stocks Is there any expiry stocks in the shelf? Are stocks being removed as per guideline? FIFO & EXPIRY CHECK - One shelf per Gandola (Staples,Processed Food,Beverages) a) SHELF 1 b) SHELF 2 c) SHELF 3 d) SHELF 4 e) SHELF 5 (Give 1 point for each category) KEY SKUs ON DISPLAY (Check 2 end gondola display) a) POP CHECK b) DISPLAY STD CHECK TOP TOP DISPLAY HWP a) TOP 1 b) TOP 2 IMPULSE BINS (CHECK FIVE BAYS) - Esp.

1 1

0 0

1 1

1 1

1 1

1 1

1 1 1 1 1

1 1 1 1 1

1 1

0 1

1 1

1 1

a) MERCHANDISE DISPLAY b)PI LABEL PROMOTIONS Are all communications regarding Gondolas/Bins/Alligators/Company stand there with the store? (Check for usage of the same after the contract period) Are promotions communicated to staff & updated? (Check for any old promotion still displayed) Are Banners & Posters in visibility? TARGETS Daily tracking of target is done? Previous year's camparison done? YVMs Are YVMs are filed? Responses are recorded? House Keeping Is there a schedule available? Are there any litter visible during store walk? TOTAL Declaration

1 1

1 1 23

18

Do the number of pouches tally with the number of declarations for the day? Is change taken for the tills documented in the required format? Are monies taken for obtaining change entered in the staff cash register at the exit? PROCESS AUDIT FORM FOR HYPER STORE FORMAT POINTSMAX Percentage 0.00% 50.00% 20.00% 20.00% 40.00% 0.00% 81.82% SL NO Scored 0 1 3 2 4 0 9

PROCESSES

1 2 3 4 5 6 7

STORE OPENING AND CLOSING INDENTING RECEIVING RETURNS DISPOSAL AT STORES INVENTORY F & V STOCKS

6 2 15 10 10 11 11

8 9

SALES AND CASH: REPORTS

39 17 25 23 169

12 0 13 18 62

30.77% 0.00% 52.00% 78.26% 36.69%

HUMAN RESOURCE & 10 ADMINISTRATION 11 DISPLAYS TOTAL 1 2 3 Note: Yes - Max 1 point No - 0 point Not Applicable - NA to be provided in Y/N column only. Points not to be entered

Module 11 Lecture 19 Energy Saving in Retail Stores.

Module II

Lecture No 20 Store EBIDTA , KRA & KPI Only a retailer who makes profit can sustain growth and continiue to offer products and services to customer. The success of retail depends on two key issues : the ability to manage costs and the ability to manage assets. The first is the cost of procuring merchandise , the second is the cost of sales and the third is the investment in the land or the lease for the store.The ability to manage cost is reflected in the profitability of the business.The concept of performance measurement would be different from the point of view of an investor as compared to that for a manager of the business.In this module we examine the concepts of performance from both the perspectives. Feasibility Report The primary tool used for assessing whether a retailer should venture into new markets or business areas or not is a Feasibility Report. A thorough feasibility analysis provides a lot of information necessary for the business plan. Typically a feasibility report comprises the following areas: 1. A description of the business 2. Market factors 3.Cost of new premises 4.Start up cost & operating expenses 5.Cost of inventory 6. Cash flow requirements If the market analysis research indicates that business idea is feasible , the next step is the creation of a business plan.The shorter the cash cycle , the more working capital a business generates , and the less it has to borrow. Financial performance is an indicator of the health of the organization . Analysing financial performance is necessary for the following reasons: 1.To help identify the gaps in the targets.

2.To identify the opportunities for improvement 3.To evaluate past and present performance. The two basic indicators in retail of evaluating financial performance are : 1. Profit and Loss Statement which shows income 2. Balance Sheet indicates the turnover The Income Statement The Income statement is a record of the revenues earned by an organization and the expenses incurred or a companys operational performance over a particular period of time. The chief components of an income statement are: 1. Sales 2. Cost of goods sold. 3. Gross Margin 4. The Operating Expenses 5. The Net Profit Sales The total money received by the retailer from the sale of merchandise Cost of goods sold .Cost of goods sold is the expenses incurred by the organization for producing the goods that is the money spent on manufacturing its products and labor costs. Gross margin Gross Profit on Sales = Net Sales Cost of Goods Sold Operating Expenses In retail these are the expenses incurred under following heads: I Total Personnel Expenses

1. Gross Salary 2.Performance Linked Incentive 3.Bonus 4.Recruitment & Training 5. Outsourced staff 6.Staff Welfare II Total Admin Expenses 1.Repairs & maintenance 2.Housekeeping 3. AMC 4.Power & Fuel 5.Communication 6.Guest House Expenses 7. Travel Expenses 8. Local Conveyance 9.Secuirity 10. Stationary III Total Selling Expenses : 1. Packing 2. Freight 3. Shrinkage IV Total Non Controllable ( Fixed) expenses: 1.Rent 2.Service Tax 3.CAM 4.Bank Charges 5. Insurance 6.License Fees Net Profit

The Operating profit before Tax is the operating profit less interest and depreciation.

Module III Lecture 21 to 25 Lecture 21 Introduction Session Objectives: Retail Marketing Mix Catchment area analysis In store and outstore promotions

Module III Lecture 22 Marketing in Retail Catchment area analysis : sample Team member name:

Kamlesh

Date of visit: Area covered: Name of locality: House hold details

19-Feb Indra nagar Appts MIG LIG / Flats 200

Type

HIG

Govt Flats Numbers 350

A- Block Nerar Lekhraj Meena market

Commercial complexes

Dept stores Name Address Dept stores Name Address

Module III Lecture 23 In store and Outstore Promotion

Module III Lecture 24 Objectives: Definition of merchandising Functions of Merchandiser Merchandising is having the right product in the right quantity , available at the right place , at the right time and at the right price.Five rights is the key to successful merchandising . Functions of a merchandiser are the analysis , planning , acquisition , handling and control of the merchandise of a retail operation.

Module III Lecture 25 Visual Merchandising Visual Merchandising can be termed as the orderly , systematic , logical and intelligent way of putting stock on the floor.It involves SKU planning,store windows , floor displays, signs, space design, fixtures and mannequins.

Module IV Lecture 26 to 36 Module IV Lecture 26 Buying and Selling Process : An Overview By the end of this session, you will be able to : Explain the buying process

Define Selling Explain the selling process- ODPEC Explain the characteristics of each stage of the ODPEC Explain how it relates to the buying process

Significance of Buying and Selling Process The buying and selling processes involve a buyer and a seller in pursuit of exchanging a product/service for a negotiated price An understanding of the buying process will help you identify what is going on in the buyers mind while you are interacting with them Your success as a sales professional depends on your ability to identify needs and motivation of the customer and propose the appropriate solution

Module IV Lecture 27 The Selling Process - ODPEC Open a Sale Develop Sale Propose a Solution Eliminate Doubts Close a Sale Characteristics Open a Sale Opening a channel of communication between the buyer and the seller by: - Greeting the customer

- Building a rapport with the customer Characteristics Develop Sale Identifying the customers need and convincing them that your product/service will solve their purpose Understand needs clearly In case it is a weak need, help the customer recognise the need better

Characteristics Propose a Solution Propose a solution that best fits the customer needs budgets and buying criteria Share how your product can fulfil the customerss needs and help solve his problems Suggest and help the customer to make a decision Always demonstrate the actual product to the customer

Characteristics Close the Sale Your customer is now ready for the purchase Suggest add-ons to increase the value of the sale Always check with the customer before raising the invoice

Module IV Lecture 28 The Buying Process - REED

R ecognise Need E valuate Options E liminate Doubts D ecide THE BUYING PROCESS

Characteristics Recognising the Need The stage where the customer recognises the need for a product or service Need is a problem in the existing situation Characteristics Evaluating Options Explore all the possible options Evaluate various options and narrow down to one option In small value products, like daily products the evaluating option stage is usually not as complicated or as long as for a large value product Characteristics Eliminating Doubts Customer tries to bring down these risks by the doubts related to the product eliminating all

It is only when these doubts are eliminated that you are ready for the final decision

Buyer seeks reassurance by checking out the product and its credibility Characteristics - Deciding

Customer decided to purchase , pays for the product , and takes the delivery Value of Sale REED Process The amount of time that a person spends in the REED process depends on the value of the need For low value purchases like vegetables or choclates, the amount of involvement in the purchase and risk taken is lower and hence the REED process takes place lesser than a highvalue purchase ( car , home etc. ) What is Selling ? Selling is the act of interacting with the customer to persuade them to purchase a product for a negotiated price.

Module IV Lecture 29 Role Play and Class Activity

Module IV Lecture 30 REED - ODPEC The two process happen together. Recognise Need Open a Sale

Evaluate Options

Develop Sale

Eliminate Doubts Propose a Solution Decide Eliminate Doubts

Module IV Lecture 31 Close a Sale A quick Recap In this session , you learnt that: The buying process is called as REED Process. REED stands for recognise the need,evaluating options,eliminate doubts and decide The amount of time that a person spends in the REED process depends on the value of the need The selling process is called as ODPEC Process ODPEC stands for open a sale,develop sale,propose a solution,eliminate doubts and close the sale Selling is the act of interacting with the customer to persuade them to purchase a product for a negotiated price

Module IV Lecture 32 Customer

Session Objectives Define a Customer Define Customer Behaviour Identify the need to study Customer Behaviour Identify the factors that influence Customer Behaviour Consumer or Customer ? Consumer is the one who uses the product. He/ She influences the decision to purchase Customer is the one who makes the actual purchase Example buying shoes for a child - Child ( consumer) - Parent ( customer)

Module IV Lecture 33 Basics of Customer Behaviour It refers to the behaviour that customers display in Searching for Purchasing Using Evaluating Disposing Off products and services that they expect will satisfy their needs Analysing Customer Behaviour Factors Influencing Customer Behaviour How would you describe the modern day retail customer ?

What is their lifestyle and personality ? What age group and class do they belong to ? What factors influence their buying choices ? Where do they like to buy ? What is their attitude towards money ? What type of buying experience do they prefer ? Answer: Retail Customer Profile Huge and expanding numbers in all age groups,classesand location; huge potential for kids merchandise Ever changing preferences of customers;short lifespan of trends Unique needs,personalities and lifestyle Highly diversified choices and tastes Lack of time but high on buying power Need personalised experience Value privacy and specialised products Increasing number of young customers; experimental hence no brand loyalty Highly aware of customer rights Individualistic in taste A Quick Recap. A Consumer is one who uses the product and a customer is one who purchases a product Customer Behaviour refers to the study of what,why,when,where and how customers make purchases and how often they use the product It is important to study customer behaviour to design effective marketing and selling strategies Customer Behaviour is influenced by social,personal and psychological factors

Module IV Lecture 34 Defining Customer Satisfaction and Customer Service Session Objectives By the end of this session , youll be able to : Define customer service Identify the characteristics of good service Define loyalty and see how loyal customers build business Define customer delight Identify the role of a customer service executive in ensuring customer delight Definition of Customer Service Customer Service is identifying customer expectations and meeting them in a way that the customer wants it. What does a Customer expect in terms of service ? Good Service Should Be : Timely means to be on time every time Competence refers to having the product knowledge, process knowledge and skilled people involved in providing the service Problem Free means giving right and complete information On Target Every time ! What is Customer Focus ?

Customer focus means a way to do business as the customer needs it Its goal is not customers needs being ocassionally satisfied or met but instead it is To create a positive experience that consistently and predictably meets and exceeds customer expectations . Each time every time Why Customer Focus ? Manufacturer Is looking to differentiate himself from the competition

The customer is now becoming the focus of business.He is the king Customer is our Business ! To make sure that we succeed in what we are doing: selling our products and ideas Remember the customer is KING.If the customer does not buy, we are out of business To know who our customer is and what do they expect from us Retail business deals with a lot of customers with diverse interests and each needs different treatment Satisfaction Vs Dissatisfaction Towards Customer Delight

Unless you exceed customer satisfaction, which means they are not just satisfied but are excited about what you are doing you have to improve Good Service Indicators: Role of a Customer Service Executive Helping Assisting Providing Expertise Guiding Giving Advice Solving Problems Giving Satisfaction Listening Intently Educating / Informing A Quick Recap. Customer service is identifying customer expectations and meeting them in a way that the customer wants it Its goal is not customers needs being ocassionally satisfied or met but instead it is To create a positive experience that consistently meets and exceeds customer expectations. Companies that are customer-focussed build their systems,processes and people around customer delight Customer-focussed employee understand the customers and what they expect

Module IV Lecture 35 Complaint Handling What is a Complaint ? A Complaint is any communication,verbal or written conveying dissatisfaction about the product,its functioning and

any organisational activity relating directly or indirectly with the customers experience of the product Why Complaints Occur ? Complaints Occur when There is a perception of the customer that the product is not functioning satisfactorily There is a mismatch between expectations from the product/service and its performance Commitments made are not kept by the organisation There is a lack of response from any customer support department The service is substandard or there is a performance breakdown And many other reasons

Module IV Lecture 36 Role Play and class Activity

THANK YOU ANUJ GUPTA FACULTY RETAIL MANAGEMENT HIHT