Retail

Introduction to the subjectRetail management

Topics to be covered/Course content

Trends in retailing Retail Merchandising Retail Advertising &sales promotion Retail Economics Retail strategies Retail Marketing Retail Management Information System Personnel selling Online retailing Retail research

Text books to be referred: Retail Management Barry Berman & Joel Evans Retail Management- Michael Levy Retail Management- Swapna Pradhan Retail Management- Gibson Vedamani

Indian Retail Industry

What is the process of recruitment followed in India in organized retail industry?

Process of recruitment followed in India in organized retail industry

For Junior level , if required in a mass number. go ahead with paper ads for walk-ins If Requirement is less for junior level go ahead with consultants and reference recruitments

For Junior level, The recruitment process starts with an interview taken by department managers followed by store manager HR team leaders.

For Middle level , consultants Job - portals news paper ads of walk-ins.

 For Middle level, The recruitment process starts with first short listing by HR then interview is conducted with department head Store Manager Zonal Manager HR

Why does Company hire Placement Consultants :

To help them to find the right candidate to join their organization. Job Seekers contact Recruitment firms to help them identify and then apply for the right job.

The role of recruitment agents and consultants vis--vis employment with organized retail in India. :

Who are Placement Consultants in the Job & Recruitment Industry an entity that works towards reducing clutter streamlining the manpower requirements of Companies, big and small. These firms serve as middlemen and help organizations and job seekers to

How It Works: :
How It Works:

Consultants work for a number of different Companies, small and large. These head hunter groups receive details about the job vacancy such as job responsibilities, desired experience, remuneration etc. Next, Consultants go through their present database of job seekers registered with them. This database of aspiring candidates is a Placement Consultant's resource built over a period of time. Job seekers contact recruitment firms either through phone, email or walk ins and register their Resumes with them. Next, the wait begins - candidates hope to be informed of good openings and prepare themselves for interviews.

How to apply for a job through Placement Consultants: :

Identifying a Placement Firm Contacting them Following Up Jobs and Career Websites

Inventory management

 A retailer uses inventory management to maintain proper merchandise assortment while ensuring that operations are efficient and effective.

Some operational considerations:

How much inventory should be on the sales floor versus in a ware house or store room? How often should inventory be moved from non selling areas of a store? What level of in store merchandise breakage is acceptable? Which item require customer delivery? When? By whom? What supplier support is expected in storing merchandise or selling up displays? What inventory function can be done during non store hours?

As part of it logistics effort, a retailer utilizes inventory management to acquire and maintain a proper merchandise assortment while ordering a shipping, handling, storing, displaying and selling costs are kept in check.

1.

2. 3. 4. 5.

A retailer places an order based on sales forecast or actual consumer behavior. Both of the number of items and their variety are requested in order ( ordering size & frequency depends on quantity discounts and inventory costs) A supplier fills the order and sends merchandise to a warehouse or directly to the stores. Retailer receives the products and makes items available for sale (packing, pricing, & moving it to sales floor). Complete customer transaction. The cycle starts a new when a retailer places another order.

Different aspects of inventory management

RETAILER TASK Due to the comprehensive nature of inventory management, and to be more cost effective some retailers now expect suppliers to perform more tasks or they outsource at least part of their inventory management activities. In 1990s, producers shipped products to retailers in a warehouse ready mode. Retailers then reprocessed merchandise to package and price it for sale in the store where consumers make purchase. Today in the era of floor ready, producers ship products that have already been packaged and prepared for immediate movement to the sales floor. In the new millennium, there is a shift of consumer ready manufacturing where the links between producer and consumer are even more direct than traditionally

 INVENTORY LEVELS The retailer wants to be appealing and never lose a sale by being out of stock. Yet does not want to be stuck with excess merchandise. Situation is more complex or for fad merchandiser, who handle new items with no track record (types of merchandise are considered in determining the inventory level). Costumer demand is never completely predictableeven for staples. Shelf space allocation should be linked to current revenues, which means that allocations must be regularly reviewed and adjusted. A study reveals that, even supermarkets which carry more staples than most other retailers, lose 3% of sales due to out of stock goods.

 MERCHANDISE SECURITIES
REVERSED LOGISTICS It encompasses all merchandise flows from the retailer back through the supply channel. It typically involves items returned because of damages, defects or less than anticipated sales. US firms spend $40 billion per year for the handling, transportation and processing costs associated with returns.

Decision regarding reverse Logistics

Under what conditions are customer returns accepted by the retailer and by the manufacturer. Customer refund policy What party is responsible for this Customer documentation needed to prove date of purchase and price To what extent are employees empowered to process customer returns.

 INVENTORY ANALYSIS Inventory status and performance must be analyzed regularly to gauge success of the inventory management. recent advances in computer software have made such analysis much more accurate and timely.

Two important decisions

WHEN TO REORDER One way to control inventory investment is to systematically set stock levels at which new order must be placed. Such point is called lead reorder point, and it is based on the three factors. Order lead time : it is the period from the date an order is placed by retailer to the date merchandise is ready for sale Usage rate: it refers to average sales per day, in units, of merchandise. Safety stock: it is the extra inventory that protects against out-ofstock conditions due to un expected demand and delays in delivery.

Reorder Point = Usage rate * Lead time e.g. If Handy Hardware sells 10 paint brushes a day and needs 8 days to order, receive, and display them, it has a reorder point of 80 brushes. It would reorder brushes once inventory on hand reaches 80. by the time brushes from that order are placed on shelves (8 days later), stock on hand will be zero and new stock will replenish the inventory this strategy is proper only when handy has a steady customer demand of 10 paint brushes daily and it takes exactly 8 days to complete all stages in the ordering process. This does not normally occur. If customers buys 15 brushes/day during the month, Handy would run out of stock in 5 -1/3 (80/15) days and be with out brushes for 22/3 days. If an order takes 10 days to process, Handy would have no brushes for 2 days, despite correctly estimating demand

Reorder point = (usage rate * lead time) + safety stock Suppose Handy Hardware decides on safety stock of 30% for paint brushes; its reorder point = (10 * 8) + (.3 * 80) = 104 Handy still expects to sell an average 10 brushes per day and receives orders in an average of 8 days. The safety stock of 24 extra brushes is kept on hand to protect against unexpected demand or a late shipment. By combining a perpetual inventory system and reorder point calculations, ordering can be computerized and an automatic reordering system can mechanically activated when stock on hand reaches the reorder point.

HOW MUCH TO REORDER

A firm planning large order generally reduces ordering cost but increases inventory holding costs. AA firm planning small orders often minimizes inventory holding costs while ordering cost may rise (unless EDI and a QR inventory system are used)

Economic Order Quantity It is the quantity per order (in units) that minimize the total cost of processing order and holding inventory. Order processing cost includes computer time, order forms, labor, and holding new goods. Holding costs includes warehousing, inventory investment, insurance, taxes, depreciation, deterioration and pilferage. EOQ calculation can be done by large and small firms.

EOQ=

2DS IC

D= Annual demand (in units) S= cost to place an order I= % of annual carrying cost to unit cost C= unit cost of an item e.g. Hardy estimate it can sell 150 power will sets/ year. They will $90 each. Breakages, insurance, tied-up capital, and pilferage equal 10% of the cost of the sets (or $9each) order cost are $25/ order. The EOQ ? I.e. EOQ = 2(150) ($25) (.10) ($90) = 29

Careers in Retailing

What Do Retailers Look For?

Best students Effective oral and written communication Critical thinking

Advantages of Retail Careers

Team players, but individual contribution is noticeable. Variety of possible career paths Get major responsibilities fast. Starting salaries not bad, generally Rs.300000+, but opportunities do exist for very rapid advancement

Types of Career Paths

Corporate Staff Merchandise Management Store Management

Merchandise Management
Responsible for acquiring and monitoring merchandise activity until the time of sale. Jobs: Buyer, Merchandise Planner to VP of Merchandising Skills: strong analytic ability; requires tolerance for math as well as good taste

Store Operations
Attend to customers needs ; make sure that merchandise is available and neatly displayed; responsible for store overall; deal with store personnel issues Jobs: Asst Manager, Manager to Vice President of Stores Skills: ability to lead and motivate employees, get along with customers This is the biggest area of retail opportunity

Corporate Staff
Computer Systems Operations/ Distribution Promotions/Advertising Loss Prevention Finance/Control Real Estate Store Design Human Resources

Management Level Retail Jobs

In the retail industry, management level jobs may not be supervisory, but rather carry a higher level of responsibility and expertise.

 District Manager The supervision of several managers and several store locations is the responsibility of the retail district manager. Loss Prevention Manager Loss prevention is getting more sophisticated and more necessary in the retail industry

 Store Manager
Store managers are responsible for the successful execution of all aspects of a retail store operation. Employee supervision, merchandising, marketing execution, inventory management, and budget control are the ways in which a store manager ensures the profitability of a retail outlet.

Assistant Store Manager Assistant managers plan, organize, delegate, and work alongside the store manager to ensure that the store is operationally functional

 Management Trainee Many companies provide specific training and on-the-job experience with their management training programs. While working as an apprentice under one or more experienced store managers, management trainees gain the skills and experience in merchandising, advertising, inventory, bookkeeping, and human resources that positions them for advancement in their

 Retail Jobs and Careers in Visual Merchandising

Retail visual merchandising jobs require a unique combination of artistic creativity and analytical merchandising savvy.

Sales merchandiser
A Retail Sales Merchandiser is the connector between a manufacturer who makes products and the retailer who sells those products. By providing execution, education, promotions, and reporting support, the retail sales merchandiser helps maximize sales and increase sales volume which benefits both the retailer and the manufacturer.

Visual merchanding associate

Retail visual merchandising employees work with the advertising, marketing, and sales departments by designing, developing and executing in-store visual displays and by decorating store windows in the style of the brand of the merchandise and store. Visual merchandisers also help with merchandise handling, replenishment, and inventory control.

The Changing Face of Indian Retail

1)In the past decade the retail sector has experienced a significant positive shift and the size of the overall market grew more than 1.5 timeswhy???? It is because of the penetration of organized players in the sector has increased from less than 1% in 2000 to an estimated share of about 6% for 2010

2)The retail revolution started towards the end of the first half of the decade-why? It is because of two drivers (a) Demand and (b) supply On the Supply side : 1)liberalization of FDI regulations 2)Expansion and entry of business houses 3)Investments by private equity firms(venture capital-invst in real

On the demand side : 1.Rising consumerism 2.Growth of small town markets 3.Fast changing lifestyle 3)In the second half of the decade, the economic slow down started..what happened to the sector then???

The sector got affected.and gradually got into a correcting Phase Many retailers has to stall their aggressive expansion plans and follow a more inward looking approach of optimizing cost structures, streamlining operations and transforming their supply chains.

4)Did the retail sector learn something from this recession phase???

Most of the retail sector matured from learning of this phase. Some of the key learning includes 1)Retailing is meant for strong-hearted people, as it takes many years just to develop understanding of the sector and proves ones ability 2)Retail expansion is required to achieve a sustainable scale, however it requires regular and committed

3) Market and consumers are fast changing, therefore retailers may be required to alter strategies from time to time 4) Investment has to be done in the supporting back end infrastructure 5) Investment in retail real estate is a long term play and returns are dependent on the performance of the sector.

5)How the Indian retailers managed to beat the Slump? Through 1)Development of private labels 2)Increasing focus on working capital 3)Better merchandising 4)Better People management All the above helped retailers to bounce back

6) What is required in order to capitalize on the opportunities in the retail sector? In order to capitalize on the opportunities in the retail sector, players are required to have patience and perseverance as retail is a capital and people intensive sector.

Merchandise Management

PLANNING MERCHANDISE ASSORTMENT

Organising the buying process by categories: The category Category Management The Category Captain

The Buying organization

Department Classification Categories SKU (Stock Keeping Units)

Setting Objective for the Merchandise Plan

Putting Margin, Sales, and Turnover together: GMROI- Gross Margin Return On Investment Measuring Inventory Turnover Stock Turn

Advantage of High Inventory Turnover

Increased Sales Volume Less Risk of Obsolescence and Markdowns Improved Sales Person Morale More money for market opportunities

The Category Life Cycle

Variations on the category Life Cycle Seasonal Merchandise
Introductory Stage Growth Stage Maturity Stage Decline Stage

Total Market Sales

Time

Developing a Sales Forecast

Sources of information for category Level Forecast Previous Sales volume Published sources Customer Information A focus group Shop competition Vendors & Buying residing office Store level Forecasting CPFR- Collaboration, Planning Forecasting, and Replenishment

The Assortment Planning Process

Variety Assortment Product Availability-Assortment Process for service retailers

Trade-Offs between Variety, Assortment & Product Availability

Determining Variety and Assortment Profitability of Merchandise Mix Corporate Strategy and positioning toward the assortment Physical Characteristics of the store layout of the internet site Balance between Too much versus Too little assortment Determining product availability Cycle stock

Buying Systems
Staple Merchandise Buying Systems The Inventory Management Report Basic Stock List Inventory Turnover Product availability Backup stock Forecast Order Point

Buying Systems (contd..)

Order Quantity Monthly Reductions BOM- Beginning of Month Stock to Sales Ratio EOM- End of Month stock ratio Monthly additions to stock Evaluating the Merchandise Budget Plan Calculating Open-To-Buy for past periods & Current period

Allocating merchandise to stores

Analyzing Merchandise Performance ABC Analysis Sell through Analysis Multi attribute Method

Buying Merchandise
Private Label Brands Private Label Options Bargain branding Premium Branding A Brand or a store?

INTERNATIONAL SOURCING DESCISIONS

Cost Associated with Global Sourcing decisions Country-of-Origin effect Foreign Currency Fluctuations Tariffs WTO NAFTA - North American Free Trade Agreement

Free Trade Zones

Managerial issues associated with global sourcing decisions Building of Strategic Partnerships Source close to Home or buy Made in America

Connecting with Vendors

Internet Exchanges Wholesale Market Centres Trade shows Buying on their turf Resident Buying Offices

Negotiating with Vendors

Guidelines for Planning Negotiations with Vendors Knowledge is Power Consider History Assess where things are today Set goals Additional Markup opportunities Terms of Purchase Transportation

Negotiating with Vendors (contd..)

Delivery & Exclusivity Communications Advertising allowances Know the vendors goals & Constraints A Continuous relationship Testing new items Communications Showcase

Negotiating with Vendors (contd..)

Plans to have as many negotiations as the vendor Choose a good place to negotiate Dont burn bridges Dont assume

Establishing & Maintaining strategic relationships with vendors

Defining strategic relationships Maintaining strategic relationships mutual trust Open Communication Common Goals Credible commitments Building Partnering relationships

Pricing
Pricing Strategy Everyday Low Price High Low Pricing- Deciding which strategy is best

Approaches for setting prices

The cost oriented method Determining the initial markup from maintained markup and gross margin Determining the initial retail price under cost oriented pricing The demand oriented method The competition oriented method Profit impact of setting a retail price The us e of break-even analysis Calculating Break-even for a new product Calculating Break-even sales

Price Adjustments
Markdowns Reasons for taking markdowns Liquidating markdown merchandise Markdowns and price discrimination Coupons Rebates Price bundling

Price Adjustments (contd..)

Multiple Unit-pricing Variable pricing Pricing on the internet Leader pricing Price lining Odd pricing

Are you a smart merchandiser now??

Store Exterior, Interior Layout And Visual Merchandising

There are several factors relating to the store and its environment that affect the consumer purchase process:
Location of the store Retail format Store image

Introduction to Store Layout Management

Store Image is the overall perception
the customer has of the stores environment. Space Productivity represents how effectively the retailer utilizes its space and is usually measured by sales per square foot of selling space

Store Image
By incorporating
a caf as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.

Store Design
The concept of store design or retail design covers all aspects of the design of a store: ranging from store frontage, signage, to internal elements of furniture, merchandising, display, lighting, graphics, point of sale and decoration.

PURPOSE OF STORE DESIGN

Store design has two basic purposes:
To

support the retailers market position in maintaining its customer image To meet the operational needs of the company

Totality: Entire store has to be conceived as one unit which draws upon the retailers very reason for existence. Ie; vision and mission statement Focus: while aspiring to create beautiful places for the consumer to ship in, the retailer should not forget that the primary focus within the sore has to be the product or the merchandise. Ease of shopping; The store has been created for the customer, it has to be easy for him to navigate, easy to access and most importantly , simple to understand. Change and Flexibility: Store design has to be adaptable to the environment that they are a part of. Change and flexibility has to be

The principles of store design

To create and sustain its consumer image, the store design has to:

Take account of customer

aspirations, viz.:

A sense of status to confirm expectations of quality or fashion A sense of entertainment in hedonistic(pleasure seeking) shopping situations

Recognize and resolve customer

needs in accessing the store, viz:

special facilities for the disabled adequate parking

To create and sustain its consumer image, the store design has to:

Make it easier for customers to

access merchandise,

Clear labeling Fitting rooms in clothing stores

Provide consumers with a sense of

comfort and sense of belonging, such as

Rest areas and refreshment facilities Store appearance conforming to local features and the surrounding area.

In order to keep costs down and maintain sufficient stock, store design has to:

Keep structure consistent with the retailers

general policy and market position Relate store layout and display to the image of the store and the merchandise offered Have the flexibility to adjust to changes in sales patterns and display methods Support the sales methods used and services provided Use on-site storage and administration facilities efficiently Be consistent with safety and security requirements

The factors affecting the image of a retail store can be classified into : primary and complimentary factors Primary factors: Product itself Place, pricing, presentation, and Advertising and promotion

Complementary factors are: Customer service People Brand/store associations Shopping experience

It affects: The positioning of the store in the mind of the customer The customers choice of the store How far a customer is willing to travel to the store How often a customer will travel to the store Customer loyalty-the extent to which a customer uses the store

Selling space and Storage

Retailers have to make efficient use of space. Some floor space must be used to provide for access and services such as lifts, stairwells, entrances, airconditioning, etc. The rest of the available area is the effective retail space. The retailer has to divide the effective space into selling areas and non-selling areas. Non-selling areas include stockrooms, toilets, rest rooms, administrative offices and storage.

We can divide the store into two External store Internal store

Retailers have to provide on-site storage for some stock. They can do this through:
Direct Selling storage within the selling area Stockrooms

The external store is important in attracting customers and informing them of where the store fits in to their aspirations and lifestyles. The internal store provides in-depth information on how the retailers products fit with their lifestyles and completes the process of persuasion and selling that begins when customers are first attracted to their store.

EXTERNAL STORE

It has the following aspects, which affect consumer perception of the store:
External environment:

Location of the store Surrounding area

External architecture: Physical dimensions Visible materials used, such as brick, stone, metal , glass Structure and shape of the storefront Windows and window displays

EXTERNAL STORE

External Features: Car parking Landscaping (scenary) , sculpture (statue), lighting Other external buildings Outdoor seating Entrances to the store: Number, size and locations near parking and other pedestrian traffic flows Walkways Types of doorways, entrance flooring, lighting

EXTERNAL STORE

Signage:

Marquee or logo that is displayed over the store front Other signs and signals

Requirements of the External Store

Visibility Suitability Accessibility Welcoming Security

VISIBILITY
Use features to make the store stand out Giving the store a distinct identity by using materials, texture and color Have a fascia (outlook) that is distinctive and appealing

SUITABILITY
The retailer needs to take into account the external physical and social environment of the store and present an image to customers, employees and the community that it is appropriate to those surroundings.
Adjust to the surrounding stores and the perception of the local shopping area; and its situation within a shopping area.

ACCESSIBILITY
Parking: Plenty of free parking Less walking distance from parking to store Congestion: Have good walkways, displays Entrances: Ramps, safely opening doors, Welcoming: Widen entrances to reduce sense of crowding Use window display to maintain seasonal empathy (understanding) Security: Security should not be intimidating (threatening) to the consumer

Elements That Compose the Store Environment

Visual Communications Retail Identity Graphics POS Signage Store Image And Productivity Store Design Exterior Design Ambiance Lighting

Store Planning Space Allocation Layout Circulation

Merchandising Fixture Selection Merchandise Presentation Visual Merchandising

INTERNAL STORE
The internal store comprises the interior of the store that the customer sees once he has entered the store. Its physical attributes comprise of: 1.Envelope: The internal structure and decoration of the building that provides the physical boundaries within which the shopping takes place. 2. Internal layout: The internal paths customers use in order to view the merchandise.

 3. Methods of display: Including the fittings and fixtures; their positioning, 4. Signage: Text, color, coding, etc. 5. Visual merchandising: Displays of items on sale together with models, pictures and other items that illustrate product use or create lifestyle impressions that relate to

Atmospheric is the design of an environment, with the help of visual communication, lightening, color, music, to stimulate the customers perceptual and emotional responses and thereby influence their buying behavior. Philip kotler first introduced this concept.

Aesthetics: takes into consideration several factors like the actual size of the store, the colors and the textures etc. used within the store to create a particular look and feel for the store. Texture deals with the look and feel of materials.

MERCHANDISE PRESENTATION TECHNIQUES

To decide upon the most effective presentation technique, store planners must consider the following four issues: Merchandise must be displayed in a manner consistent with the stores image. Consider the nature of the product. E.g. Jeans Packaging often dictates how the product is displayed. Products profit potential influences display decisions.

STYLE/ITEM PRESENTATION:

All items of the same category are presented in one area. Merchandise can be arranged based on size, color, or by price or categories. Most prevalent in groceries, drug stores

 COLOR PRESENTATION:
Merchandising by color; e.g. all white colored apparels together.

PRICE LINING:
Organizing merchandize in price categories

FRONTAL PRESENTAION:
Display as much of the product as possible to catch the customers eye, e.g. book manufacturers.

FRONTAL PRESENTAION:

FIXTURES

The primary purpose of fixtures are to efficiently hold and display merchandise. At the same time, they must help define areas and encourage traffic flows. They should be in combination with other physical of the store, viz. floor coverings and lightings, as well as the overall image of the store. Fixtures come in an infinite variety of styles, colors, sizes and textures, but only a few basic types are commonly

FIXTURES

STRAIGHT RACK:
Consists of a long pipe suspended with supports going to the floor or suspended to a wall. It can hold a lot of apparel, but difficult to see the whole of the product.

ROUNDER/ BULK CAPACITY FIXTURE:

FIXTURE/

A round fixture that sits on a pedestal Its designed to hold a maximum amount of merchandise. They are easy to move and they

FIXTURES

FOUR WAY FIXTURE/FEATURE FIXTURE:

Two cross bars that sit perpendicular to each other on a pedestal. This fixture holds a large amount of merchandise, but it is hard to maintain. All merchandise on an arm must be similar in all aspects. Commonly utilized by fashion retailers.

GONDOLAS:
Islands of self-service counters with

Visual Merchandising
Visual Merchandising
Is the artistic display of merchandise and theatrical props used as scenesetting decoration in the store.

Planogram
A planogram is a diagram of fixtures and products that illustrates how and where retail products should be displayed, usually on a store shelf in order to increase customer purchases The planogram originated with K-Mart. Planograms are created with the help of a planograming software and most

In short
The planogram is a visual diagram, or drawing, that provides in detail where every product in a retail store should be placed. These schematics not only present a flow chart for the particular merchandise departments within a store layout but also show on which aisle and on what shelf an item is located

Planogram Purpose
Product placement and improved sales are just two very basic reasons a retailer should be implementing planograms in their shops. Planograms provide many other positive benefits, such as: Assigned selling potential to every square foot of space Satisfying customers with a better visual appeal

Visual Merchandising
Lead them to temptation. Department-store design
incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a stores most profitable department, should always be at the main entrance to the store. Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury. Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments. Suggestion positioning. Once the customer has
already purchased one item, its easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry

Visual Communications
Coordinate signs and graphics with the stores image. Directional, Departmental, and Category Signage Point-of-Sale (POS) Signage Lifestyle Graphics Inform the customer. Keep signs and graphics fresh. Limit the copy of signs. Use appropriate typefaces on signs Create theatrical effects (dramatic effect).

Directional, Departmental, and Category Signage

Directional and Departmental

Signage are large signs that are usually placed fairly high, so they can be seen throughout the store. Category Signage are smaller than directional and departmental signage and are intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed.

Departmental Signage
Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store. Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches. Point-of-Sale Signage Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items. POS signage for clearance and sale items tend to be in red to draw a consumers attention.

Lifestyle Graphics
The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line.

Store Design
Ambience
Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses.

Store Design
Storefront Design Interior Design Lighting Design Sounds and Smells: Total Sensory
Marketing

Total Sensory Marketing

Crabtree & Evelyn makes
effective use of fragrances and odors to generate smells that reinforce its store ambiance.

Lighting
Highlight merchandise. Structure space and capture a mood. Downplay features.

Lighting Design
Crate & Barrel makes effective use
of lighting to highlight and feature merchandise on display.

Color Dominance
Research has shown that warm colors (red and yellow) produces opposite physiological and psychological effects from cool colors (blue and green), which are opposite in a color spectrum

Coordinated Presentation
Many a times, it is effective to present merchandise in a coordinated manner. Presentation by co-ordination may be done for garments, and can also be done for home fashions, bed & bath linens and even kitchen requisites.

Conclusion
The store design and layout tells a customer what the store is all about. Exterior look is a function of the location of the store site, which is a combination of various factors, like the site itself, facilities like that of parking and the ease of access Store interiors are a function of the fixtures, flooring, ceiling, lighting and signages used within the store, to create its look. Space planning helps a retailer determine the amount of space available for selling and for storage

Space planning helps a retailer determine the amount of space available for selling and for storage Visual Merchandising is the orderly, systematic, logical and intelligent way of displaying merchandise in the retail store. To. Produce good visual merchandising, it is vital to understand the product, as well as the customer

Key drivers of retailing in India

Consumer pull Rising income Explosion of media Change in consumer behavior Consumerism cycle The rural market: waking up Establishment of the supply chain Emergence of south India as a hub of retail activity Entry of corporate sector Expansion of family owned businesses New entrepreneurs Building chains around brands Foreign retailers looking for entry options Technological impact

Recent Trends contd.

Multiple drivers leading to a consumption boom: Favorable demographics Growth in income Increasing population of women Raising aspirations : Value added goods sales Food and apparel retailing key drivers of growth Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets. HLL is using its Project Shakti initiative leveraging women self-help groups to explore the rural market. Mahamaza is leveraging technology and network marketing concepts to act as an aggregator and serve the rural markets. IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change buying behavior across the globe. e-tailing slowly making its presence felt. Companies using their own web portal or tie-sups with horizontal players like Rediff.com and Indiatimes.com to offer products on the web.

In short.
Modern retail will grow but traditional retail will survivetheres place for both New retail formats will emerge and grow-small format cash and carry; investment surge in forecourt retailing; growth of super specialty format Modern retail will witness enhanced private equity infusion There will be creation of large retailer brands (private labels)-own labels branding trend on the rise, more in groceries, home care and clothing; provides profit margin advantage to retailers

Modern retail will benefit consumers and rural sector Consolidation will increase in the retail sector Modern retail ill face a few key bottlenecks-talent, retail space and supplier base shortages; India will witness a shortfall of almost one million people in the retail sector by 2012

Major Retailers
Indias top retailers are largely lifestyle, clothing and apparel stores This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores These Walmart wannabes have the economy of scale to be low medium cost retailers pocketing narrow margin Leading Retailers

India vs. World

Indian retail is fragmented with over 12 million outlets operating in the country. This is in comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail market size as compared to India India has the highest number of outlets per capita in the world - widely spread retail network but with the lowest per capita retail space (@ 2 sq. ft. per person) Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size of Indian retail industry. Almost 100 times more than the turnover of HLL (India's largest FMCG company). Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's large format store (Shoppers' Stop, Westside, Lifestyle) can compare. The sales per hour of $22 million are incomparable to any retailer in the world. Number of employees in Wal-Mart are about 1.3 million where as the entire Indian retail industry employs about three million people. One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's annual turnover. Developed economies like the U.S. employ between 10 and 11 percent of their workforce in retailing (against 7 percent employed in India today). 60% of retailers in India feel that the multiple format approach will be successful here whereas in US 34 of the fastest-growing 50 retailers have just one format Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an average inventory turns ratio of about 18. Many Indian retailers KPMG surveyed have inventory turns levels between 4 and 10. Global best-practice retailers can achieve more than 95 percent availability of all SKUs on the retail shelves (translating into a stock-out level of less than 5 %).The stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent.

Future direction: Positives

AT Kearney has estimated Indias total retail market at US$ 202.6 billion which is expected to grow at a compounded 30 per cent over the next five years. With the organised retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010. The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decade Over next two years India will see several Indian retail businesses attaining a critical mass as growth in the industry picks up momentum driven by two key factors: Availability of quality real estate and mall management practices Consumer preference for shopping in new environments Wal-Mart : huge plans for India. Moving a senior official from its headquarters in Bentonville, Arkansas, to head its market research and business development functions pertaining to its retail plans in India. New York-based high-end fashion retailer Saks Fifth Avenue has tied up with realty major DLF Properties to set up shop in a mall in New Delhi. Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi, Ahmedabad, Lucknow and Bangalore in the next four months.

Future direction: Concerns

68 million square feet of mall space is expected to be available by end of 2007, which might lead to over-capacity of malls Lack of differentiation among the malls that are coming up. One option may be to look at specialization. Poor inventory turns and stock availability measures - retailers clearly need to augment their operations. Operations of retailers and suppliers are not integrated. Efficient replenishment practices practiced in the Indian auto and auto-component industry can be leveraged to implement efficient supply chain management techniques. Supplier maturity, in terms of adherence to delivery schedules and delivering the quantity ordered, is an issue Sales tax laws - lead to retailers having state-level procurement and storage leads to Indian retailers having higher inventories. VAT has helped alleviate this a bit. Increased adoption of IT and shrinkage management will be a critical area. Supply chain and customer relations followed by merchandising, facilities management and vendor development are areas which have significant gaps and proactive training is a key imperative for overcoming these.

Retailing
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.

The Role of Retailing

Retailing is one of the largest employers Retailers ring up almost a third of the U.S. GDP Industry is dominated by a few giant organizations, such as Wal-Mart

1 Ten Largest U.S. Retailers

Top 10 Retailers in India

Pantaloon (food bazaar, big bazaar) K Raheja Group (shoppers Stop) Tata group (Westside) RPG Group(food world, spencers, music world) Landmark (lifestyle) Pyramid Group(pyramid mega store,Trumart) Subhiksha Bharati walmart Reliance (Reliance fresh) AV Birla Group

Classification of Retail Operations -international context

Ownership Ownership

Level of Service Level of Service

Classification Classification of of Retail Retail Establishments Establishments

Product Assortment Product Assortment

Price Price

2 Classification of Ownership Independent Independent Retailers Retailers Chain Stores Chain Stores

Franchises Franchises

Level of Service
Full Service

Self Service

Factory outlets Warehouse clubs

Discount stores

Exclusive stores

Types of Stores and Their Characteristics

Service Service Level Level Mod Hi-High Mod Hi-High High High Low Low Low Low Low-Mod Low-Mod Mod-Low Mod-Low Mod-Low Mod-Low Low Low Low Low Low-High Low-High AssortAssortment ment Broad Broad Narrow Narrow Broad Broad Price Price Mod-High Mod-High Mod-High Mod-High Gross Gross Margin Margin Mod High Mod High High High Low Low Mod High Mod High Low Low Mod Low Mod Low Mod Low Mod Low Low Low Low Low Low-High Low-High

Type of Retailer Type of Retailer Department Store Department Store Specialty Store Specialty Store Supermarket Supermarket Convenience Store Convenience Store Drugstore Drugstore Full-line Discounter Full-line Discounter Specialty Discounter Specialty Discounter Warehouse Clubs Warehouse Clubs Off-price Retailer Off-price Retailer Restaurant Restaurant

Moderate Moderate Med-Narrow Mod High Med-Narrow Mod High Medium Moderate Medium Moderate Med-Broad Mod Low Med-Broad Mod Low Med-Broad Mod Lo-low Med-Broad Mod Lo-low Broad Broad Med-Narrow Med-Narrow Low-lower Low-lower Low Low

Med-Narrow Low-High Med-Narrow Low-High

Major Types of Retail Operations Department Stores Department Stores

Specialty Stores Specialty Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Stores Convenience Stores Discount Stores Discount Stores Restaurants Restaurants
On Line On Line http://www.walgreens.com http://www.walgreens.com

Blockbust er

Categories of Discount Stores

Full-Line Discounters

Categories of Discount Stores

Discount Specialty Stores

Warehouse Clubs

Off-Price Discount Retailers

Mass Merchandising
Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.

Hypermarket and Supercenter

A large retail store combining A large retail store combining a supermarket and a supermarket and a full-line discount store. a full-line discount store.

Hypermarket Hypermarket

Supercenter Supercenter

Retail store combining groceries Retail store combining groceries and general merchandise goods and general merchandise goods with a wide range of services. with a wide range of services.

Nonstore Retailing
Automatic Vending Automatic Vending

Direct Retailing Direct Retailing

Major Forms Major Forms of of Nonstore Nonstore Retailing Retailing

Direct Marketing Direct Marketing

Electronic Retailing Electronic Retailing

Direct Retailing
Direct Retailers Direct Retailers sell products: sell products:

NFL.COM

Door-to-Door Door-to-Door Office-toOffice-toOffice Office

Home Sales Home Sales Parties Parties

Direct Marketing
Direct Mail Direct Mail

Types Types of of Direct Direct Marketing Marketing

Catalogs & Mail Order Catalogs & Mail Order

Telemarketing Telemarketing

Electronic Retailing Electronic Retailing

On Line On Line http://www.avon.com http://www.avon.com

Electronic Retailing
Shop-at-Home Networks Shop-at-Home Networks

Types Types of of Electronic Electronic Retailing Retailing

On-Line Retailing On-Line Retailing

On Line On Line http://www.gap.com http://www.gap.com http://www.jcrew.com http://www.jcrew.com

5 Basic Forms of Franchising

Product and Trade Name Product and Trade Name Franchising Franchising

Basic Forms Basic Forms of of Franchising Franchising

Business Format Business Format Franchising Franchising

5Largest

U.S. Franchisers

6 Retail Marketing Strategy

Key Tasks Key Tasks in in Strategic Strategic Retailing Retailing

Define & Select Define & Select a Target Market a Target Market

Develop the Six Ps Develop the Six Ps

6 Defining

a Target Market
Demographics Demographics

STEP 1: STEP 1: Segment the Market Segment the Market

Geographics Geographics Psychographics Psychographics

6 Choosing the Retailing Mix

Product Product STEP 2: STEP 2: Choose the Choose the Retailing Mix Retailing Mix Price Price Promotion Promotion Place Place Personnel Personnel Presentation Presentation

The Retailing Mix

Product Product Personnel Personnel Promotion Promotion

Target Market

Presentation Presentation Price Price

Place Place

Product Offering
The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.

On Line On Line http://www.kroger.com http://www.kroger.com

6 Retail Promotion Strategy

Advertising Advertising

Public Relations Public Relations

Retail Retail Promotion Promotion Strategy Strategy

Publicity Publicity

Sales Promotion Sales Promotion

Factors to Consider in Site 6 Selection

Economic growth Economic growth potential potential Area competition Area competition

Geography Geography

Location Decisions
Freestanding Store Freestanding Store Shopping Center Shopping Center Tenant Tenant Mall Tenant Mall Tenant

Shopping Center and Mall 6 Locations

Advantages
Design attracts shoppers Activities and anchor stores draw customers Ample parking Unified image

Disadvantages
Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors

Price
High Price
Quality Image

Low Price
Good Value

Presentation of the Retail 6 Store

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

Factors Factors in in Creating Creating Stores Stores Atmosphere Atmosphere

Sound Sound Odors Odors Visual Factors Visual Factors

Personnel and Customer 6 Service

Trading Up Trading Up

Two Common Two Common Selling Selling Techniques Techniques

Suggestive Selling Suggestive Selling

The Top Ten Global Retailers

Global Retailing
Reasons for Global Expansion

Spread of Spread of communication communication and mass media and mass media Lowering of trade Lowering of trade barriers and tariffs barriers and tariffs

Growth potential Growth potential in underserved in underserved markets markets

Factors Used to Analyze Global Retail Markets

Market Size & Economics Market Size & Economics Infrastructure & Distribution Infrastructure & Distribution Competition Competition Operations Operations Financial & Tax Reporting Financial & Tax Reporting Merchandise Acceptability Merchandise Acceptability Partnering Capability Partnering Capability

Global Retailing
Secure Secure Domestic Domestic Position Position Long-Term Long-Term Perspective Perspective Consistent Consistent Global and Global and Corporate Corporate Strategies Strategies
On Line On Line http://www.walmartstores.com http://www.walmartstores.com

Prerequisites for Going Global

Trends in Retailing
Entertainment Entertainment

Trends in Retailing

Convenience Convenience and Efficiency and Efficiency

Customer Management Customer Management

Customer Management Strategies

Customer Relationship Customer Relationship Marketing Marketing

Loyalty Loyalty Programs Programs

Clienteling Clienteling

Which are the two retail formats that is most successful retail models in the Indian retail industry???????

Neighbourhood store (convenience store) and Hypermarket

What makes the two formats (Neighbourhood store and Hypermarket) the most successful retail models in the Indian retail industry?

Before going into an in-depth analysis of the success rate of the retail formats in India, let us check out the various retail formats available in India

Existing retail formats in India

1) Convenience stores 2) Branded stores (franchisee) 3) Specialty stores 4) Department stores-variety of products 5) Supermarkets-self service 6) Discount stores-offer discount on the retail price through selling in high volume 7) Hypermart-largest

Successful retail formats

The current scenario indicates two retail formats as successful in India 1) Hypermarket- (organized retail) 2)Standalone neighborhood stores (unorganized retail)

Hypermart is not a totally new concept in India rather it has its origin in melas and mandis of olden times. The sophisticated, air conditioned, modernize form of these melas and mandis is now termed as hypermarket.

Hypermarket format offers all the benefits of being an anchor to a retailer, with low occupancy cost and thus enables him to be successful. This have emerged as the biggest crowd pullers due to the fact that regular repeat

Neighbourhood retail stores are running more successful as they have also upgraded themselves to provide more convenience to the consumers. Moreover, it is human tendency, especially in India, to buy things from a trusted store where the shopkeeper provides not only quality products but also convenience at your door step, with

List of Popular Retailers and their Format size Category Area (sq.feet) Brand
Big Bazaar Star India Bazaar Hyper CITY Shoprite Aditya Birla Trinethra Bharti Walmart Spencer's Metro cash and carry Reliance Max Nilgiri Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Hypermarket Supermarket 40,000
40,000

1,20,000 40,000 40,000 40,000 40,000 40,000 40,000 80,000-60,000 50,000-1 lakh 10,000-15,000

Brand

Category

Area

Lifestyle Shoppers stop India bulls

Departmental store

25,000

Departmental stores 25,000 Hypermarket 1 l-1.5 lakhs

Consumer acknowledges retail formats

The speedy growth of the retail industry in India is clear indicator of the fact that the Indian consumer has accepted the new retail formats. Because- (1) Indian consumers is evolving and realizing the importance of quality with style

Hyper markets Provides one stop shopping experience Offer a lot of variety and product range

Stand Alones Small retail store is not a one stop shop Not possible in case of small time retailers as a result of space restraints

Provides excellent ambience and air They cannot afford it conditioned environment Monthly discounts schemes and offers attract consumers Do not have such schemes or offers

No personal touch as here Local retailers knows you for consumers hardly come in direct years and feels attracted to contact with the owner of the store you Due to space and rental constraints, Provides convenience to your most of the hyper marts drive down doorsteps to the outskirt of the city

Do not provide home delivery services Consumers has to pay at the time of purchase

Provides home delivery services Credit facilities are also available in case of local retailers

Consumes a lot of time as there are No such problem in case long billing queues and lot of of standalone small retail parking problem outlets

Introduction to the World of Retailing

PPT 1 -4

Distribution Channel
Distribution Channel

Retailers are a Business Like Manufacturers

Accounting

Finance

Marketing

Operations

MIS

Human Resources

Introduction:
The word retail has its origin in French word retaillier means to cut a piece or to break bulk. Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use.

According to Kotler: Retailing includes all the activities involved in selling goods or services to the final consumers

Functions performed by Retailer

Providing an assortment of products & services Breaking bulk Holding Inventory Providing services

How Retailers Add Value

Breaking Bulk -Buy it in quantities customers want Holding Inventory -Buy it at a convenient place when you want it Providing Assortment -Buy other products at the same time Offering Services -See it before you buy, get credit

Role of Retail in Marketing Mix

The Four Ps of Marketing
Retailers are part of the Retailers are part of the distribution channel distribution channel Product

Distribution

Price

Promotion

Retailing in India.

The global Retail development Index has ranked India first, among the top 30 emerging markets in the world. It is believed that India has the potential to deliver the fastest growth over the next 20 years. While barter would be considered to be oldest form of retail trade

 The first attempts at organized retailing were noticed in the textiles sector. One of the pioneers in this field was Raymonds which set up stores to retail fabric.

Challenges to retail Development in India

Retail not being recognized as an industry in India. The high costs of real estate. Lack of Adequate infrastructure. complex taxation system.

Classification of Retail Formats

Store based Retailing
Form of Ownership Independent retailer Chain retailer Franchise Leased Departments Consumer cooperatives Merchandise offered Convenience stores Supermarkets Hypermarkets Speciality stores Departmental stores Off price retailers Factory outlets Catalogue showrooms

Non-Store Retailing
Direct selling Mail order Tele marketing Automated Vending

Services Retailing
Banks Car Rentals Service contracts Providers of various services

On the basis of Ownership

Independent retailer:
One who owns & operates only one retail outlet, which is managed by the owner & a few other local hands or family members. The ease of entry into retail market. Has an advantage of having a one to one rapport with most of his customers. - Bargaining power with the suppliers is limited.

Chain Retailer/Corporate retail chain :

When two or more outlets are under a common ownership, it is called a retail chain. They are characterized by similarity in the merchandise offered to the consumer, the ambience, advertising etc. Has bargaining power with the suppliers. Cost effectiveness is possible in promotions. - Not always possible to have rural/urban preferences. - Ability to give attention to each of the stores becomes fairly restricted.

 Franchise:
A right to market a product or provide a service in a specified area. Such a right is provided by a manufacturer to a wholesaler or a retailer through some form of written agreement. The exclusive right to sell the product or use of trade name in certain areas is usually in exchange for an initial fee. The manufacturer or Supplier who grants franchise to an individual or group is known as franchiser. The individual or group (wholesaler or retailer) to whom the company (franchiser) grants an exclusive right to market its product or service or use of its name in a certain territory is known as franchisee.

 Leased Departments:
They are also called shop-in-shops, as a section of a dept in Retail store is leased/rented to an outside party. It is a good method for expanding his product offering to the customers. A new trend in India by setting up small retail outlets in high traffic areas like Malls. The main aim is to be available to consumer near his place of work/home.

On the basis of Merchandise Offered

Convenience Stores:
These are relatively small stores located near residential areas & offer a limited line of convenience products like eggs. The Food Marketing Institute defines this retail format as a small local store selling mainly groceries, open until late at night or even 24hrs/day & is abbreviated to c-store. They are not so popular in India, but has started to come up at petrol pumps like H.P Speed mart and In & Out can be termed as convenience stores. They target customers who want to make their purchase quickly.

 Supermarkets:
These are large, low margin, high volume, selfservice operations designed to meet the needs for food, groceries & other non-food items. 30% of grocery market is in this form. 1) A superstore-: which is larger than a conventional supermarket with at least 25,000 items & more non- foods. 2) A combination store-: which is a superstore & full-line pharmacy with products accounting for at least 15% of Sales. Eg: varkeys super market, margin free, subhiksha, food bazzar

Characteristics of Supermarket
It is a large store with enough moving space & parking ground. Located in the main shopping area. Deals in good items & household items. Similar goods are kept together in separate department. Self-service is the basis. Credit facility is not available.

 Hypermarket : The word hypermarket is derived from the French word hypermarche, which is a combination of a supermarket & a department store. Hypermarkets are designed to attract customers from a significantly large area with their low price offers, unique range & offers A wide range of products including food & non-food products. eg: Reliance fresh, big bazzar, Giant, Star India Bazzar, wal mart, Asda, Tesco etc

 Specialty stores A store specializing in a particular type of merchandise or single product of durable goods (i.e., Home furniture, household goods, consumer electronics/domestic appliances). These are characterized by a narrow product line with deep assortments in that product line. They concentrate on apparel, jewellery, fabrics sporting goods etc.. They have a clearly defined target market & their success lies in serving their needs. E.g: Proline fitness station & Gautier furniture.

 Departmental stores:
Aristide Boucicaut, son of a successful hat maker founded the first department store Bonmarche in Saint-German, Paris in 1838. The store lured shoppers by selling different types of goods all under one roof. The General stores eventually became department store as small towns became cities. The store layouts made shopping easier for consumers, irrespective of their social/economic background. They offered new customer services never seen before such as restaurants, reading rooms, wrapping services, rest rooms, new types of merchandise & so forth. E.g: Shoppers stop, Westside & Lifestyle, Meena bazar in hyderabad, Marks and spencers, J.C Penny

 Off price retailers:

The merchandise is sold at less than retail prices. They buy manufacturers seconds, overruns & off season at a deep discount. The merchandise may be in odd sizes, unpopular colours or with minor defects. These stores may be manufacturer owned or departmental store. These outlets are usually seen by the parent company as a means of increasing the business. - The factory outlets in case is owned by manufacturer, then it will stock only company merchandise. - This format largely depends on volume sales to make money. Eg: pantaloons , peter england..where they sell during off season at a discount price . ( big hotels are during the same)

 Catalogue Showrooms: They usually specialize in hard goods such as house ware, jewellery etc. A customer walks into the retail showroom & goes through the catalogue of the products that he would like to purchase. Some stores require the customer to write out the product code number & hand it over to the clerk who arranges for the product from warehouse for inspection & purchase. The sizes of retail outlets have changed to large & are called Big Box.Eg: Argos

 Discount department stores- Ranging from 80,000sq.ft. to 130,000sq.ft. .They offer a wide variety of merchandise including automotive parts & services etc. Category killers- Ranging from 20,000sq.ft. to 120,000sq.ft. They are speciality retailer who offers a very large selection in the chosen product category & economical prices. They focus only on one category. E.g: Toys R Us Outlet stores- Ranging from 20,000sq.ft. to 80,000sq.ft. They are typically the discount arms of major department stores such as Nordstorm Rack & J.C. Penny Outlet.

Big- box retail models:

Warehouse clubs- Ranging from 104,000sq.ft. to 170,000sq.ft. offer a variety of goods in bulk, at wholesale prices. They provide a limited number of

Major non-store retailer types:

Direct Selling: It deals with door-to-door or at home sale parties i.e. it involves one-to-one or one-to-many selling. Example > Eureka Forbes, Mary Kay Cosmetics. Automatic Vending: Example > ATM Buying services: Is a store less retailer serving a specific clientele-usually employees of large organizations-who are entitled to buy from a list of retailers who have agreed to give them discounts in return for membership. Example > Amazon.com Direct marketing: It involves direct response marketing. The different forms of direct marketing are: Direct mail, catalog marketing, telemarketing, television direct response marketing and electronic shopping.Example: Dell Computers

Non store retailing

Direct Selling Mail Order Business Tele Marketing Automated vending Internet marketing

Tele marketing
The use of the telephone as an interactive medium for promotion and sales. Telemarketing will grow to become a $480 billion+ business by 2009? Business to business telemarketing sales will leap to $268.3 billion from $220.3 billion in 2005. The Direct Marketing Association, www.thedma.orgs most recent report forecasts business to consumer telemarketing revenues will climb to $212.9 billion from $182.3 billion in 2005.

Business to Business Telemarketing

Use outbound telemarketing to acquire customers, qualify prospects and pass hot leads to sales reps and deal closers. Rely on inbound telemarketing to acquire and qualify buyers for followup by your sales reps, close sales, process orders and crosssell/upsell offers.

Vending Machines
During the early 1880s, the first commercial coin-operated vending machines were introduced in London, England and dispensed post cards. English publisher and bookshop owner, Richard Carlisle invented a vending machine for selling books, around the same time.

 In 1888, the Thomas Adams Gum Company introduced the very first vending machines to the United States. The machines were installed on the elevated subway platforms in New York City and sold Tutti-Fruiti gum. In 1897, the Pulver Manufacturing Company added animated figures to its gum machines as an added attraction.

Sodas & Cigarettes in Vending Machines

In the early 1920's, the first automatic vending machines started dispensing sodas into cups. In 1926, an American inventor named William Rowe invented the cigarette vending machine.

Service Retailing
Tailoring Saloon /Beauty Parlors Laundry Travels Educational institutions Banks Automobile maintenance

Service retailing
Childcare centers Movie theatres Real estates Healthcare/Fitness centers Financial services Telephone services/Couriers Tax /Law consultants Insurance

Top 10 Retailers in India

Pantaloon (food bazaar, big bazaar) K Raheja Group (shoppers Stop, hypercity) Tata group (Westside,trent,croma) RPG Group(food world, spencers, music world) Landmark (lifestyle) Pyramid Group(pyramid mega store,Trumart) Subhiksha

Share of organized & unorganized retail with comparison

source: Ernst &Young, The Great Indian Retail Story

PAKISTAN 1 INDIA CHINA INDONESIA BRAZIL THAILAND MALASIA TAIWAN USA

0% 20%

99

6 20 30 36 40 55 81 90
40%

94 80 70 64 60 45 19 10 60% 80% 100% ORGANISED UNORGANISED