Introduction

What is Retail
All activities involved in selling goods or services to the final consumers for personal use Any organisation selling goods to the final consumer is involved in retailing Retail Store/Retailer is a business enterprise whose sales volume comes primarily from retailing Retailing is the final step in distribution of merchandise for consumption by end consumers

Introduction
Retailing involves a direct interface with the customer Coordination of business activities from end to end- right from the concept or design stage of a product or offering, to its delivery and postdelivery service to the customer. The retail industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.

Introduction
Functions Of A Retailer Storing the goods & providing an assortment of products in various categories to the consumers Creating time utility by keeping the store open when consumers prefer to shop Creating place utility by being at a convenient location Creating ownership utility when the product is sold. Final link in the distribution chain

Importance Of Retailing
Increase in gross domestic product increase in per capita income increase in purchasing power the ever changing tastes and preferences of the people. The entry of plastic money, ATMs, credit cards and debit cards and all other consumer finances, the taste for the branded goods Internet has made it possible for businesses to develop across geographical boundaries

Importance Of Retailing
With emergence of supermarkets ,hypermarkets etc ,retailers are the closest to the consumer. First contact point of the consumer, Consumers are very powerful. They demand convenience & comfort while shopping. This has led to the rise of specialists and increase in services offered by the retailer Retailers decide what to stock. Most retailers have developed their own instore brands known as private labels

Retail Marketing
Retail marketing is not just buying and selling but also rendering all other personalized consumer services Has given a new look for various fast moving capital goods (FMCG) goods. Has increased the demand for various goods in the market Retail marketing the second largest employment area, the first being agriculture.

Retail Mix
Retail strategies are combination of one or more of the 6 Ps of Retail referred as "Retailing Mix". Every retailer seeks to find a unique combination of these factors that put them in the target market.

Retail Mix
Retailing mix refers to the various features of retail strategy planning. Retailing mix details a retail business' approach to its products, promotion efforts, personnel, process, place and price. Retailing mix helps a business define its strategy and carry out operations according to its goals.

Retail Mix
Address Customers need Retail mix approach forces a business to place its customers in the center of its strategy development. Formulate Strategy Business managers have to consider all the significant factors that define the business, including products, personnel, promotion, presentation, place and price. The retailing mix approach helps business managers consider how to use each of these factors in meeting the needs and desires of customers.

Retail Mix
Coordinate Operations By developing the retailing mix before carrying out business operations, business managers provide a plan for all employees to follow. This way, the different parts of the business don't work haphazardly without following a definite plan. The retailing mix helps coordinate the efforts in all departments and at all levels of the business, so every person works toward the same goal, targeting their products and services at the same market segment.

Retail Mix
Respond to Competition When developing the retailing mix, a business may consider other companies working in the same industry and targeting the same market segment. The business may analyze how its competitors address each factor of the retailing mix and compare its strategy to the competitors. This way, the business can fashion its retailing mix in response to the strategies of its competitors.

The Retailing Mix

Product Personnel Promotion

Target Market

Presentation

Place

Price
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Product Offering

Mix Of Product offered Product assortment/merchandise mix

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6 ps of Retailing
Product: Identifying, anticipating and satisfying customer needs & desires. Retailers need to ensure that their products and services are focussed to meet the customers expectations. Product in the retail mix considers classification and brands - price points, labels, quality, branding.

6 ps of Retailing
Variety Different merchandising categories within a store or department. Also known as breadth Of merchandise. Depth /Assortment No of SKUs within a category. Niche retailers offer deep assortment with less variety. Eg: av shoppers stop store carries 30k sku of different products.carry 63 days of stock

6 ps of Retailing
Brand Vs Private Label Mix Shoppers Stop Brands Arrow , Louis Phillipe , Park Avenue Burberry ,CK,dior , diesel in perfumes Private Labels Stop , Kashish , Haute Curry, life ,ijeanswear,

6 ps of Retailing
Brand vs Private Label Pantaloon Private Label
T Lombard Knighthood RIG UMM Agile Bare T2006 JM Sports

6 ps of Retailing
F Factor Annabelle Honey Agile Brands John Miller Urbaba Scullers Indigo Nation Pepe Jealous21 Lee Copper

6 Ps of Retailing
Pricing: Price is important element of the retail mix, it brings profits. Pricing depends on the kind of product category , cost of raw materials, competition and sales strategy Retailers must decide what pricing strategy to follow

6 Ps of Retailing
Discount pricing Premium pricing Competitive pricing

Price
Low Price
BIG BAZAAR Good Value

High Price
SHOPPERS STOP Quality Image PANTALOONS

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Price
HIGH TURNOVER PANTALOONS LOW MARGIN HIGH MARGIN

LOW TURNOVER

6 Ps of Retailing
Place: Correct channels for reaching the customers Where are the customers & how to get products to them locations, sites, space and opening hours to achieve the objective.

Location
Location Decisions Freestanding Store

Mall

Shopping Center
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Retail Promotion Strategy

Advertising

Public Relations

Publicity

Retail Promotion Strategy

Sales Promotion

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6 ps of Retailing
Promotion: How to get your message to the customers Publicity, advertising, public relations, personal selling, direct marketing, communication Communicate and reinforce positive image of the product

Retail Promotion Strategy

Events Gift Vouchers Loyalty Programs Eg: Green Card Program Of Pantaloon, first citizen program of shoppers stop

6 Ps of Retailing
Personnel: It is the people working for you determine the level of service or value you provide to customer. Be is selling function, service, support or communication. These are people that are differentiators as compared with the competition whether it is pre-sales, sales or post-sales activities.

Presentation of the Retail Store 6

Employee Type & Density Merchandise Type & Density Fixture Type & Density

Factors in Creation of a Stores Atmosphere

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Sound Odors Visual Factors

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6 Ps of Retailing
Presentation/Process Ensure customer has good experience All activities undertaken to get the product to the customer including marketing and planning. Presentation of the stores, websites, premises, offices, delivery vans, warehouses, uniforms etc plays crucial role in associating customer with your brand. It very important to ensure that the image portrayed is consistent with the product and services being offered.

6 Ps of Retailing
Eg: shoppers stop ground floor products kept to attract customers for impulse purchase perfumes ,cosmetics etc Men are usually accompanied by women for shopping . Women are more impulse buyers compared to men who are serious buyers So usually womens apparel is placed before menswear to attract women for impulse purchase

Retail Formats
Retailers can be categorised on the basis of Ownership Type of Merchandise Non Store Operations

Retail Formats
Forms Of Ownership
Independent Retailer: Generally operates one outlet and offers personalized service, a convenient location and close customer contact. Retailing is easy and it requires low investment and little technical knowledge. High degree of competition.. Most independent retailers fail because of the ease of entry, poor management skills and inadequate resources.

Retail Formats
Retail Chain:
It involves common ownership of multiple units. In such units, the purchasing and decision making are centralized. Chains are able to serve a large dispersed target market and maintain a well known company name. Chain stores have been successful, mainly because they have the opportunity to take advantage of economies of scale in buying and selling goods. They can maintain their prices, thus increasing their margins, or they can cut prices and attract greater sales volume. they can also take advantage of such tools as computers and information technology.

Retail Formats
Retail Franchising:
Is a contractual arrangement between a franchiser (which may be a manufacturer, wholesaler, or a service sponsor) and a franchisee or franchisees, which allows the latter to conduct a certain form of business under an established name and according to a specific set of rules. The franchise agreement gives the franchiser much discretion in controlling the operations of small retailers. In exchange for fees, royalties and a share of the profits, the franchiser offers assistance and very often supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas.

Retail Formats
Cooperatives: A retail cooperative is a group of independent retailers,that have combined their financial resources and their expertise in order to effectively control their wholesaling needs. They share purchases, storage, shopping facilities, advertising planning and other functions. The individual retailers retain their independence, but agree on broad common policies. Eg: Amul is a typical example of a cooperative in India.

Retail Formats
Leased Department: They are also termed as shop in shops. When a section of a department in a retail store is rented to an outside party, it is termed as a leased department.

Retail Formats
Based On Merchandise Offered Convenience store: They are relatively small stores located near residential areas. They are open for long hours, seven days a week and offer a limited line of convenience products like bread, eggs, mil k etc. Department store: It is large scale retail outlet, often multileveled whose merchandise offer spans a number of different product categories. They are defined as those establishments depending on good, clothing and home related items.

DEPARTMENT STORES
UPSCALE DEPARTMENT STORES General sale of name brand clothes above an average price level, such as Dior, Chanel, Versace, Lacoste. Sale of branded perfumes and beauty supplies, like Burberry, Calvin Klein or MAC at the main entrance, with specialists in cosmetics there to assist customers with applying and selecting makeup

DEPARTMENT STORES
Sale of small household appliances like blenders, or small electronic items such as portable radios. Specialized services or subset businesses such as personal shopping assistance, salons, restaurants, and/or travel agencies.

DEPARTMENT STORES
Top Upscale Stores
BLOOMINGDALES NEIMAN MARCUS BARNEYS SAKS FIFTH AVENUE HARRODS

DEPARTMENT STORES
MID RANGE DEPARTMENT STORES Sale of some apparel brand names, with greater emphasis on private label brands. Sale of cosmetics but generally not brand name. Fragrances and beauty supplies may be placed further into the interior of the store, without cosmetic specialists at the counters. Sale of some small household appliances. Sale of furniture in larger locations.

DEPARTMENT STORES
Major MID-RANGE STORES Macys (b/w upscale & mid-range)
JC PENNY KOHLS BONTON MARKS & SPENCERS (B/W upscale & midrange)

DEPARTMENT STORES
Full-Line Discounters

Categories of Discount Stores Warehouse Clubs

Off-Price Discount Retailers

DEPARTMENT STORES
Discount Department Store/Super-Store Offer a wide variety of products. Sell very few brand names in apparel. Generally doesn't sell name brands in accessories & cosmetics. Sells small household appliances. Sells toys, electronics and video games.

DEPARTMENT STORES
Major DISCOUNT STORES
TARGET KMART SHOPKO WALMART

DEPARTMENT STORES
OFF PRICE RETAILERS Products may be over-runs, seconds, or last season's stock liquidated from department stores. Product mix typically emphasizes women's clothing and may include men's clothing, children's clothing, shoes, accessories, perfume, toys, housewares, or packaged gourmet food.

DEPARTMENT STORES
MAJOR OFF PRICE RETAILERS
T.J. Maxx Factory 2-U Century 21 Gabriel Brothers Ross Dress For Less Marshalls

Burlington Coat Factory

Retail Formats
Super markets and hyper markets: Super markets are large, low cost, low margin, high volume, self service operations designed to meet the needs for food, groceries and other non food items like health and beauty care products. Hyper markets are a combination of super markets and departmental stores. A retail store with a sales area of over 2500 square meter, with at least 35 per cent of selling space devoted to non-grocery products like clothes, jewellery, hardware etc. are called hyper markets.

Retail Formats
Speciality stores: A stores specializing in a particular type of merchandise or single product goods categories is termed as a speciality store. Speciality stores are owing to their unique designs and patterns. . These are characterized by a narrow product line with deep assortments in that product line. Specialty stores usually concentrate on apparel, jewellery, fabrics, furniture etc. Eg : gap ,W , BIBA

Level of Service
Self Service Full Service

Factory outlets Warehouse clubs

Discount stores

Exclusive stores

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Level of Service
Type of Retailer
Department Store Specialty Store Supermarket Convenience Store Factory outlets Drugstore Warehouse clubs Full-line Discounter Warehouse Clubs Off-price Retailer Service Level Assortment Price Gross Margin

2
Mod High
Low

Self Service

Mod Hi-High
High Low Low

Broad
Narrow Broad

Mod-High
Moderate

Full Service Mod-High High

Med-Narrow Mod High Mod High Discount stores Exclusive stores Low-Mod Medium Moderate Low

Mod-Low
Low Low

Med-Broad
Broad

Mod Low
Low-lower

Mod Low
Low Low

Med-Narrow Low

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Retail Formats
Non- Store Retailing Customers do not go to a store to buy. This type of retailing is growing very fast. the ability to buy merchandise not available in local stores the increasing number of women workers the presence of unskilled retail sales persons who can not provide information to help shoppers make buying decisions

Retail Formats
In Home Retailing: Where, a sales transaction takes place in a home setting including door-door selling. It gives the sales person an opportunity to demonstrate products in a very personal manner. He/She has the prospects attention and there are fewer distractions as compared to a store setting. Examples of in home retailing include, Eureka Forbes vaccum cleaners and water filters.

Retail Formats
Telesales/Telephone Retailing: This involves contact between the prospect and the retailer over the phone, for the purpose of making a sale or purchase. A large number of mobile phone service providers use this method. Other examples are private insurance companies, and credit companies etc.

Retail Formats
Catalog Retailing: This is a type of non store retailing in which the retailers offers the merchandise in a catalogue, which includes ordering instructions and customer orders by mail. The basic attraction for shoppers is convenience. The advantages to the retailers include lover operating costs, lower rents, smaller sales staff and absence of shop lifting. Burlingtons catalogue shopping was quite popular in recent times. Some multi level marketing companies like Oriflame also resort to catalogue retailing.

Retail Formats
Direct Response Retailing: The marketers advertise these products/ services in magazines, newspapers, radio and/or television offering an address or telephone number so that consumers can write or call to place an order. It is also sometimes referred to as Direct response advertising. The availability of credit cards and toll free numbers stimulate direct response by telephone. The goal is to induce the customer to make an immediate and direct response to the advertisement to order now. Telebrands is a classic example of direct response retailing. Times shopping India is another example.

Retail Formats
Automatic Vending: is the ultimate in non personal, non store retailing. Products are sold directly to customers/buyers from machines. These machines dispense products which enable customers to buy after closing hours. ATMs dispensing cash at odd hours represent this form of non store retailing.

Retail Formats
Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with customers and offer products and services for sale, over the internet. The rapid diffusion of internet access and usage, and the perceived low cost of entry has stimulated the creation of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so. Amazon.com, E-bay .etc, are some of the many e-tailers operating today.

The Global Retail Scenario

Rise Of 24/7 economy has fuelled growth of global retail market. Market Sz USD 13.9 Trillion USA Dominates world retail market space Global retail market dominated by USA followed by Europe EU Retail Turnover is 2000b euros China , India emerging retail markets

Global Retail Giants

Walmart (USA) 8,500 stores in 15 countries. Sales in 2010: $405.04 bn Carrefour(France) Sales in 2010: $119.88 bn

Metro AG(Germany) Sales in 2010: $90.85 bn

Tesco(UK) Sales in 2010: $90.43 bn Lidl Stiftung & Co (Germany) Sales in 2010: $77.22 bn
..

Changing Indian Retail Scenario

India is standing on the threshold of a retail revolution India is the most preferred new destination for global retailers India has emerged as the fifth most favourable destination for international retailers India's retail market is expected to grow at 7 per cent over the next 10 years, reaching a size of US$ 850 billion by 2020 The entire textile and apparel industry in India is expected to grow by 11 per cent to touch Rs 10,320 billion (US$ 185.75 billion) by 2020