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FRANKLYN’S RETAIL

MANAGEMENT

Objective
Retail Industry has witnessed a phenomenal growth in our country, keeping an eye on
these growing needs Franklyn’s Retail Plus Course is designed for all who are eager to
know the retail industry, although many seasoned marketing and retail sales professionals
will find the course useful as a way of refreshing their practice through learning in new or
different ways. All are welcome to join - the only requirements are punctuality and a
commitment to working with determined effort during the course. The Retail English
Course is perfectly suited for young students & professionals looking to make a career in
Retail Industry. It is emphasized that Retail Management concentrates on theory and
interaction. Too often Retail Management staffs quit the field because they do not get
what they want. Our module ensures you learn everything about a career in Retail
Industry that there is to know. The approach on this course is to work hard to ensure that
any technique introduced is of use in your future career.

Retail English can be exciting & joyful! It is sometimes approached as a heartless,


mechanical, activity - a daily chore to be endured at all costs through gritted teeth. This is
simply the wrong approach. In our course we take the middle way and integrate what
might be called both "heart" and "head" practices to teach you more easily.
Students will learn Retail English in the right atmosphere with proper guidance &
training at each step of the way. This course has extensive theory & project work. After
course completion students will be well on their way to a high profile & successful career
in Retail Sales with top Indian & Multinational Companies.

We help provide a good job in retail marketing or sales management after the course for
all graduating candidates with our business partners, top Indian & multinational
companies. The retail marketing & retail management industry is booming and there are

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tons of good jobs to be had in all over India & Asia. We can also submit your profile for
free to the topmost headhunting agencies to enable you to get a great job after the Retail
English.
The course incorporates discussions, case studies, assignments, interactive sessions,
workshop, role-plays, and group presentations.

Syllabus:-

• Overview of Retail Industry

• Retail Terms
• Customer Service, Salesmanship skills, Counter Sales
• Retail Strategy
• Retail Communication
• Public Relation
• Retailing in India

• Project Work & Assignments


Case studies and dummy projects.

• Unit 1: Overview of Retail Industry

Class: 1

Retailing consists of the sale of goods or merchandise, from a fixed


location such as a department store or kiosk, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated
services, such as delivery. Purchasers may be individuals or businesses. In
commerce, a retailer buys goods or products in large quantities from
manufacturers or importers, either directly or through a wholesaler, and
then sells smaller quantities to the end-user. Retail establishments are
often called shops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part
of their overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no


houses, or in a shopping center or mall, but are mostly found in the
central business district. Shopping streets may be for pedestrians only.
Online retailing, also known as e-commerce is the latest form of non-shop
retailing (cf. mail order).

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Shopping generally refers to the act of buying products. Sometimes this is
done to obtain necessities such as food and clothing; sometimes it is done
as a recreational activity. Recreational shopping often involves window
shopping (just looking, not buying) and browsing and does not always
result in a purchase.

Retail Industry has brought in phenomenal changes in the whole process


of production, distribution and consumption of Consumer Goods all over
the world. In the present world most of the developed economies are
using the Retail Industry as their vital growth instrument. At present,
among all the industries of U.S.A the Retail Industry holds the second
place in terms of Employment Generation. In fact, the strength of the
Retail Industry lies in its ability to generate large volume of employment.

Not only U.S but also the other developed countries like U.K, Canada,
France, and Germany are experiencing tremendous growth in their Retail
Sectors. This boom in the Global Retail Industry was in many ways
accelerated by the Liberalization of Retail Sector.

Observing this global upward trend of Retail Industry, now the developing
countries like India are also planning to tap the enormous potential of the
retail sector. Wal-Mart, the world's largest Retailer has been invited to
India. Other popular Brands like Pantaloons, Big Bazaar; Archie’s are
rapidly increasing their market share in the retail sector. According to a
survey, within 5 years, the Indian Retail Industry is expected to generate
10 to 15 million jobs by direct and indirect effects.
Emergence of a strong Retail Sector can contribute immensely to the
economic development of any country. With a dominant retail sector, the
farmers and other suppliers can sell their produce directly to the major
retail companies and can ensure stable profit. On the other hand, to
ensure steady supply of goods, the Retail Companies can inject cash into
the production system. This whole process can result into a more efficient
production and distribution system for the economy as a whole.

Typical Retail Malls.

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Large Retail Stores typically sell many different types of items, such
as:

• Alcoholic products (where


provincial/state and/or local laws allow;
individual state and province control as
to beer, wine,)
• Baby food and products
• Bakery
• Books, newspapers, and magazines,
including supermarket tabloids
• Car care products
• CDs, DVDs, and videos (including video
rentals)
• Confectionery
• Cosmetics
• Clothing and footwear
• Cereal
• Dairy products
• Diet foods
• Electrical items
• Feminine hygiene products
• Financial services (mortgages, credit
cards, savings accounts, wire transfers,
etc.)
• Flowers
• Frozen foods
• Fruits and vegetables
• Greeting cards
• Housecleaning products
• Luggage
• Lottery tickets
• Meat
• Medicines and first aid items (mostly
over-the-counter, some supermarkets
have pharmacies)
• Non alcoholic beverages, such as
refreshments and water
• Personal financial products
• Personal hygiene and grooming products
• Pet foods and products
• Snacks

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• Toys

In other countries, the range of products is sometimes more narrowly


focused on food products, although the ranges sold are broadening in
many countries as average store sizes increase.

• Unit Two Retail Terms.

Retail Acronyms

Class: 2

AR Accounts Receivable
AS/RS Automatic Storage and Retrieval System
BPI Buying Power Index
CBD Central Business District
CLV Customer Lifetime Value
COD Collect on Delivery
CRM Customer Relationship Management
DOI Date of Invoice
CPFR Collaborative Planning, Forecasting and Replenishment
DPP Direct Product Profitability
DSD Direct Store Distribution
EBI Effective Buying Income
ECR Efficient Consumer Response
EDI Electronic Data Interchange
EDLP Everyday Low Pricing
EOQ Economic Order Quantity
GAAP Generally Accepted Accounting Principles
GAF General merchandise, Apparel and Furniture
IAS International Accounting Standards
NBD Neighborhood Business District
OLAP On-Line Analytical Processing – OLAP
OTB Open-to-Buy
PIN Personal Identification Number
PM Push Money
POG Planogram
RFM Recency, frequency and monetary value
RDA Retail Display Allowance
ROA Return on Assets
RMM Retail Merchandise Management System
SBD Secondary Business District
SKU Stock Keeping Unit
UPC Universal Product Code
UVM Universal Vendor Marking

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B2B – Business to business e-commerce; where business partners in the
supply chain use
e-commerce technologies to procure goods and services from each other.
B2C – Business to consumer e-commerce; where business makes its goods
and services
available to the end consumer through e-commerce technologies.
BAM– Business activity monitoring; set of tools and applications used to
monitor and modify
business processes and business process parameters in an automated
manner in real time, in
response to inputs received from the business environment.
BI – Business intelligence; set of tools and applications used to analyse huge
quantities of
collected data in order to identify patterns useful for making business
decisions.
CPFR – Collaborative planning, forecasting and replenishment; technique
used in the retail
industry to synchronize forecasting, planning and procurement of supplies
though out the
supply chain by use of technology. The demand data travels from the stores
and retail head
office back to the supplier in an automated fashion and in near real time
mode reducing need
to maintain high levels of inventory and improving response time to
fluctuating demands.
CRM – Cutomer relationship management; software used to monitor
customer behavior and
accordingly customize level of service and response to the customer.
DC – Distribution centre; warehouses and centres for intermediate storage of
goods procured
from the supplier for reasons of convenience and proximity to the distribution
channel.
e-Commerce – use of internet technologies to do B2B, B2C and C2C
business.
EDI – Electronic document interchange; integration of business process and
workflows
between business partners through use and exchange of business document
in electronic format.
Enterprise portals – Website of an enterprise exposed on the intranet,
extranet or the internet,
containing host of features and exposing numerous enterprise applications in
an unified
interface.
EPC – Electronic product code; use of signal producing and receiving
electronic gadgets
and devices to codify products in order to track their exact physical location.
Often used in
warehouses and stores for tracking goods.
ERP – Enterprise resources planning; enterprise level application having
different functional

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modules for different organizational functions like human resources, finance,
administration,
marketing etc.
Legacy applications – existing applications in an enterprise typically using
older technologies
like mainframes, first generation client-server etc. and typically having a
stovepipe architecture
(lack of enterprise scale multiple application integration).
OASIS – Organization for the advancement of structured information
standards. It is a notfor-
profit, international consortium that drives the development, convergence,
and adoption
of e-business standards.
PDA– Personal data assistance; handheld / mobile devices having desktop-
like utility features.
POS– Point of sale; applications and devices like scanners, printers,
computers and associated
applications used at the sales counter.
Merchandise management – Planning and management of procurement
and mobilization
of goods from the supplier based on the forecasted demand from the stores,
DCs, or end
consumers.
Real time – synchronous response or occurrence of an activity in response to
an event.
RFID – Radio frequency identification; use of radio frequency signals in EPCs.
RTE – Real time enterprise; use of applications and architecture where an
enterprise can
respond in real time to changes in the environment signifying extreme
adaptability and
agility.
SCM – Supply chain management; enterprise applications used for streamline
the business
process with supply chain partners.
SOA – Service Oriented Architecture
SOAP – Simple object access protocol
Supply chain – the chain of the business partners in an industry where the
links travel
from upstream suppliers to downstream consumers. An element in the link
could be
a logical consumer of an upstream supplier and a logical supplier to a
downstream
consumer.
UDDI – Univeral description, discovery and integration
VAN – Value added network; special private networks operated by service
providers or by
the business partners which have value added features like high reliability,
security and performance.

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W3C – World wide web consortium. This is an industry consortium entrusted
with the
responsibility to standardize and popularize specifications for internet-related
technologies
like communication and message format protocols, web services etc.
WSDL – Web services description language
WSRP – Web services for remote portlets.
WS-I – Web services interoperability organization; industry consortiums set
up to specify,
standardize and popularize profiles for Web services technology in order to
ensure complete
interoperability of web services across multiple platforms and languages.
XML– eXtensible Markup Language;HTMLlike markup language for describing
structured
data having self-decriptive capabilities through the use of extensible,
customizable tags.

A Glossary of Retail Terms:

Class: 3

A large box in which products for sale are kept on the shop
Bin/Display Bin
floor
A shop that is in a building as opposed to an internet
Bricks and mortar
shopping site, a street market stall, party sales, van sales or
store
door-to-door sales
The ability to negotiate favorable terms due to the
Buying Power
proposition of high volume purchases
The area from where the majority of a shop's customers are
Catchments (area)
located
As in "chain stores". A chain is a group of stores operated
Chain
under one organization or brand
Checkout The point where customers declare and pay for their goods
Combination Store A store that combines two or more specialist product areas
An organization that is jointly owned and or managed by its
Co-operative
members and is run for the mutual benefit of members
Co-op Co-operative
Concessionaire A store within a store
Courier Shipper
Dedicated (vehicle)
A vehicle delivering to one location only
Delivery
Delivery Collating products in order to produce appropriate delivery
Consolidation batches

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Sales of goods between two distant parties where the
Distance Retailing
deliverer has no direct interest in the transaction
Distributor Shipper
Downstream
Forward movement of goods through the supply chain
Distribution
Dress Code Rules on what clothes can and can't be worn
Dry Grocery Generally food that is not fresh

Finished Goods Generally products that are ready to be consumed


A trading entity such as a marketing tool or method, a
Franchise
product or group of products or simply a trade brand
The party that sells goods and services within the framework
Franchisee
of the franchise
Franchisor The party that established (manages) the franchise
Metal that is coated with an anti-corrosive material such as
Galvanized Metal
zinc
A protective cover for clothes, ranging from a simple
Garment Cover
polythene garment cover to a heavy duty zipped bag
The function that receives finished clothes and steams, folds,
Garment Processor
hangs or packs them, ready for sale
General Store A shop that sells a variety of goods including food
A free standing display fixture where all sides are accessible
Gondola (fixture)
to customers
Haulier Shipper, A huge contractor
Using a central location to collate and consolidate products
Hub Distribution
prior to onward dispatch
Logistics The planning and execution of product distribution
Margin Profit
Merchandising The way that products are displayed in a shop
Multiple (store) Retail Chain
Retail outlet that caters for virtually every need within a
One-stop-shop
product or service group or across all products and services
Outlet Shop
Pallet A large flat board that is used to hold and move products
A plot of land used by street traders
Pitch As in sales pitch, the approach, emphasis and nuances used
when articulating the virtues of a service or product

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Synthetic polymer often used to coat household goods such
Polyester
as refrigerators
A bag that contains a small plastic hangar as an integral part
Polyhook Bag
of the top of the bag
A colloquial phrase denoting aggressive price reductions on
Price War
the same (or similar) products by competing retailers
Primary Packaging The immediate packaging around the finished product
Procurement Obtaining Goods
Product Offer Product's attributes, including price
Retail Chain A group of shops operated by the same organization
Reverse Logistics Reverse movement of goods through the supply chain
A time-limited period when a product or group of products
Sales Promotion
are given extra publicity and intense marketing
Secondary The container in which several finished packs would be
Packaging distributed (and sometimes displayed in)
A store where customers can pick the goods directly from the
Self-Service
display and take them to the checkout for payment
Shadow Box A cabinet display built into a wall
Spot Delivery A single one-off delivery
Staple Goods Products that are regularly purchased and are a necessity
The route that products take from their production through to
Supply Chain
their consumption
Tertiary Packaging The carrier for the secondary packaging
Transporter Shipper
Upper Garments Clothes worn on the upper part of the body
Upstream
Reverse movement of goods through the supply chain
Distribution
Volume The amount of stock being sold

Exercise based on Retail Vocabulary:

1. I went to Buy Lots and bought a computer on hire purchase.


(a) Payment in cash
(b) Discount payment
(c) Payment plan
(d) Price increase

2. The best time to go shopping in the USA is the day after Thanksgiving, because all stores
mark down their prices.
(a) reduce

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(b) boost
(c) raise
(d) hike

3. Nowadays, lots of people purchase products over the Internet.


(a) sell
(b) give away
(c) buy
(d) ship
4. It's really important to keep a receipt of the products you buy in case you need to return
or exchange them.
(a) record
(b) proof of purchase
(c) profit
(d) coupon
5. When I first moved to the USA and didn't have a bank account, I used money orders to
pay my rent.
(a) order of payment issued by a bank
(b) dollar bills
(c) personal check
(d) debit card
6. Thanks for buying at Build-a-Monster, your product will be shipped in 1 to 2 business days.
Have a nice day!
(a) received
(b) withdrawn
(c) purchased
(d) mailed
7. My son would love to have a Buzz Light month toy for his birthday. Do you have any at your
store? — Sorry, ma'am. They are out of stock.
(a) bankrupt
(b) broken
(c) not available
(d) stacked
8. Excuse me, sir. I would like my money back on these shoes, please. They don't fit me. —
Sorry, ma'am. We can't do that.
(a) a forfeit
(b) a reimburse
(c) a fine
(d) a retain
9. Melinda bought a Plasma TV with a one year warranty.
(a) guarantee
(b) invalidation
(c) vintage

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(d) release
10. Mr. Thompson only buys things that are in a sale.
(a) uneconomical
(b) priceless
(c) inexpensive
(d) overpriced

• Unit 3: Customer Service, Salesmanship skills, Counter Sales

Class: 4

Effective customer handling is the most important of all. In retailing


personalize training has been given to the staffs directly deal with the
customers. Let’s discuss about some of the essential traits must be
followed by the salespersons and other staffs.

1. Appropriate Appearance of Staff (Dress Code and the Ethics beyond)

Personal hygiene and cleanliness of staff is important for all retailers


and even more so for stores selling food products or drugs. Staff in
stores that sell hardware products will often wear overalls. Apart from
protecting their own clothes, overalls can give the staff, and therefore
the store, a professional appearance and reinforce the practical nature
of their products.

Staff in a fashion store may be encouraged to wear fashionable clothes


themselves. Some stores will provide clothes to staff from their own
stock as a way of promoting specific items. Stores that sell information
technology equipment, modern gadgets or recorded music may be
encouraged to dress very casually so that their predominantly young
market will not feel intimidated or alienated by formal dress.

Retailers that sell high value goods, or goods that are perceived as
high value, may ask their staff to dress formally. Examples are high-
class clothes stores and jewelers. Although rare, some of these
retailers insist that customers should also dress smartly.

Dress codes will mainly apply to larger retailers. With the exception of
food and drug stores, it is very common for small retailers to have no
dress code at all.

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Many stores will ask their management staff to wear dress that is more
formal than the rest of the staff, even in some cases where staffs are
being encouraged to dress fashionably or casually. This contrast may
be preferred by stores that wish to make staffs appear welcoming while
giving the impression that the store is run professionally and can be
trusted.

Attractive Appearance (Personal Grooming)

Some retail stores will recruit staff who they perceive as being good
looking. This is especially true of fashion outlets. This practice is rarely
official company policy and is often a subconscious decision. Selection
filtering that uses facial or bodily attributes may be considered
unlawful in some jurisdictions where it could be considered as de facto
discrimination on grounds of race, gender or even age.

Price Deals (Retail pricing)

The pricing technique used by most retailers is cost-plus pricing. This


involves adding a markup amount (or percentage) to the retailers cost.
Another common technique is suggested retail pricing. This simply
involves charging the amount suggested by the manufacturer and usually
printed on the product by the manufacturer.

In Western countries, retail prices are often so-called psychological prices


or odd prices: a little less than a round number, e.g. $6.95. In Chinese
societies, prices are generally either a round number or sometimes a lucky
number. This creates price points.

Often prices are fixed and displayed on signs or labels. Alternatively, there
can be price discrimination for a variety of reasons, where the retailer
charges higher prices to some customers and lower prices to others. For
example, a customer may have to pay more if the seller determines that
he or she is willing to. The retailer may conclude this due to the
customer's wealth, carelessness, lack of knowledge, or eagerness to buy.
Another example is the practice of discounting for youths or students.
Price discrimination can lead to a bargaining situation often called
haggling, in which the parties negotiate about the price.
Retailers who are overstocked, or need to raise cash to renew stocks may
resort to "Sales", where prices are "marked down", often by advertised
percentages - "50% off" for example.” Sales" are often held at fixed times
of the year, for example January sales, or end-of-season sales, or Blue
Cross Sale

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Deal-Making as a Marketing Tool

Making deals with customers, such as two for the price of one, for
example, is an age-old method of retailing. Whereas deal-making has
traditionally been a two-way affair between an individual customer and
the retailer - and often still is in small retailers - it has in recent times
been used as a marketing tool by the larger chains.

Class: 5

Selling Skill in Retail Industry:

Points to be discussed in this session:

Retail Salespersons
Nature of the Work
Working Conditions
Training, Other Qualifications, and Advancement
Employment
Job Outlook
Earnings
Related Occupations
Sources of Additional Information

Significant Points

Good employment opportunities are expected because of the need to


replace the large number of workers who leave the occupation each
year.
Most salespersons work evenings and weekends, particularly during
sales and other peak retail periods.
Employers look for people who enjoy working with others and who
have tact, patience, and an interest in sales work, a neat appearance,
and the ability to communicate clearly.

Nature of the Work

Whether selling shoes, computer equipment, or automobiles, retail


salespersons assist customers in finding what they are looking for and
try to interest them in buying the merchandise. They describe a
product’s features, demonstrate its use, or show various models and
colors. For some sales jobs, particularly those involving expensive and
complex items, retail salespersons need special knowledge or skills.
For example, salespersons who sell automobiles must be able to

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explain the features of various models, the manufacturers’
specifications, the types of options and financing available, and the
warranty.

Consumers spend millions of dollars every day on merchandise and


often form their impression of a store by evaluating its sales force.
Therefore, retailers stress the importance of providing courteous and
efficient service to remain competitive. For example, when a customer
wants an item that is not on the sales floor, the salesperson may check
the stockroom, place a special order, or call another store to locate the
item.

In addition to selling, most retail salespersons—especially those who


work in department and apparel stores—make out sales checks;
receive cash, checks, debit, and charge payments; bag or package
purchases; and give change and receipts. Depending on the hours they
work, retail salespersons may have to open or close cash registers.
This work may include counting the money in the register; separating
charge slips, coupons, and exchange vouchers; and making deposits at
the cash office. Salespersons often are held responsible for the
contents of their registers, and repeated shortages are cause for
dismissal in many organizations.

Salespersons also may handle returns and exchanges of merchandise,


wrap gifts, and keep their work areas neat. In addition, they may help
stock shelves or racks, arrange for mailing or delivery of purchases,
mark price tags, take inventory, and prepare displays.

Frequently, salespersons must be aware of special sales and


promotions. They also must recognize security risks and thefts and
know how to handle or prevent such situations.

Working Conditions

Most salespersons in retail trade work in clean, comfortable, well-


lighted stores. However, they often stand for long periods and may
need supervisory approval to leave the sales floor. They also may work
outdoors if they sell items such as cars, plants, or lumber yard
materials.

The Monday-through-Friday, 9-to-5 workweek is the exception rather


than the rule in retail trade. Most salespersons work evenings and
weekends, particularly during sales and other peak retail periods. The
end-of-year holiday season is the busiest time for most retailers. As a
result, many employers restrict the use of vacation time to some
period other than Thanksgiving through the beginning of January.

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The job can be rewarding for those who enjoy working with people.
Patience and courtesy are required, especially when the work is
repetitious and the customers are demanding.

Training, Other Qualifications, and Advancement

There usually are no formal education requirements for this type of


work, although a high school diploma or the equivalent is preferred.
Employers look for people who enjoy working with others and who
have the tact and patience to deal with difficult customers. Among
other desirable characteristics are an interest in sales work, a neat
appearance, and the ability to communicate clearly and effectively.
The ability to speak more than one language may be helpful for
employment in communities where people from various cultures tend
to live and shop. Before hiring a salesperson, some employers may
conduct a background check, especially for a job selling high-priced
items.

In most small stores, an experienced employee or the proprietor


instructs newly hired sales personnel in making out sales checks and
operating cash registers. In large stores, training programs are more
formal and are usually conducted over several days. Topics generally
discussed are customer service, security, the store’s policies and
procedures, and how to work a cash register. Depending on the type of
product they are selling, employees may be given additional
specialized training by manufacturers’ representatives. For example,
those working in cosmetics receive instruction on the types of products
the store has available and for whom the cosmetics would be most
beneficial. Likewise, salespersons employed by motor vehicle dealers
may be required to participate in training programs designed to
provide information on the technical details of standard and optional
equipment available on new vehicle models. Since providing the best
possible service to customers is a high priority for many employers,
employees often are given periodic training to update and refine their
skills.

As salespersons gain experience and seniority, they usually move to


positions of greater responsibility and may be given their choice of
departments in which to work. This often means moving to areas with
potentially higher earnings and commissions. The highest earnings
potential usually lies in selling “big-ticket” items—such as cars,
jewelry, furniture, and electronic equipment—although doing so often

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requires extensive knowledge of the product and an extraordinary
talent for persuasion.

Opportunities for advancement vary in small stores. In some


establishments, advancement is limited because one person—often the
owner—does most of the managerial work. In others, some
salespersons are promoted to assistant managers. Large retail
businesses usually prefer to hire college graduates as management
trainees, making a college education increasingly important. However,
motivated and capable employees without college degrees still may
advance to administrative or supervisory positions in large
establishments.

Retail selling experience may be an asset when one is applying for


sales positions with larger retailers or in other industries, such as
financial services, wholesale trade, or manufacturing.

Employment

Retail salespersons held about 4.3 million wage and salary jobs in
2004. They worked in stores ranging from small specialty shops
employing a few workers to giant department stores with hundreds of
salespersons. In addition, some were self-employed representatives of
direct-sales companies and mail-order houses. The largest employers
of retail salespersons are department stores, clothing and clothing
accessories stores, building material and garden equipment and
supplies dealers, other general merchandise stores, and motor vehicle
and parts dealers.

This occupation offers many opportunities for part-time work and is


especially appealing to students, retirees, and others seeking to
supplement their income. However, most of those selling big-ticket
items work full time and have substantial experience.

Because retail stores are found in every city and town, employment is
distributed geographically in much the same way as the population.

Class: 6

Job Outlook

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As in the past, employment opportunities for retail salespersons are
expected to be good because of the need to replace the large number
of workers who transfer to other occupations or leave the labor force
each year. In addition, many new jobs will be created for retail
salespersons as businesses seek to expand operations and enhance
customer service. Employment is expected to grow about as fast as
average for all occupations through the year 2014, reflecting rising
retail sales stemming from a growing population. Opportunities for
part-time work should be abundant, and demand will be strong for
temporary workers during peak selling periods, such as the end-of-year
holiday season. The availability of part-time and temporary work
attracts many people seeking to supplement their income.

During economic downturns, sales volumes and the resulting demand


for sales workers usually decline. Purchases of costly items, such as
cars, appliances, and furniture, tend to be postponed during difficult
economic times. In areas of high unemployment, sales of many types
of goods decline. However, because turnover among retail
salespersons is high, employers often can adjust employment levels
simply by not replacing all those who leave.

Despite the growing popularity of electronic commerce, Internet sales


have not decreased the need for retail salespersons. Retail stores
commonly use an online presence to complement their in-store sales;
there are very few Internet-only apparel and specialty stores. Retail
salespersons will remain important in assuring customers that they will
receive specialized service and in improving customer satisfaction,
something Internet services cannot do. Therefore, the impact of
electronic commerce on employment of retail salespersons is expected
to be minimal.

Earnings

The starting wage for many retail sales positions is the Federal
minimum wage, which was $5.15 an hour in 2004. In areas where
employers have difficulty attracting and retaining workers, wages tend
to be higher than the legislated minimum.

Median hourly earnings of retail salespersons, including commissions,


were $8.98 in May 2004. The middle 50 percent earned between $7.46
and $12.22 an hour. The lowest 10 percent earned less than $6.38, and
the highest 10 percent earned more than $17.85 an hour. Median

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hourly earnings in the industries employing the largest numbers of
retail salespersons in May 2004 were as follows:

Automobile dealers $18.61


Building material and supplies dealers 10.85
Department stores 8.47
Other general merchandise stores 8.36
Clothing stores 8.17

Compensation systems vary by type of establishment and merchandise


sold. Salespersons receive hourly wages, commissions, or a
combination thereof. Under a commission system, salespersons receive
a percentage of the sales they make. This system offers sales workers
the opportunity to increase their earnings considerably, but they may
find that their earnings strongly depend on their ability to sell their
product and on the ups and downs of the economy. Employers may use
incentive programs such as awards, banquets, bonuses, and profit-
sharing plans to promote teamwork among the sales staff.

Benefits may be limited in smaller stores, but benefits in large


establishments usually are comparable to those offered by other
employers. In addition, nearly all salespersons are able to buy their
store’s merchandise at a discount, with the savings depending on the
type of merchandise.

Five Mistakes commonly seen: Needs to be AVOIDED—

Mistake #1: Listening to the Wrong Messages


If you say to a salesperson, ‘I want to buy your product’, chances are
they heard every word of that message. But if you say to that same
salesperson, "I’ve changed my mind and I don’t want to buy this
product," suddenly you notice their eyes glazing over as they hear
something completely different than the words that come out of the
customer’s mouth.

Often we are taught in sales training to ignore objections and only


listen to "hooks" or "openings" that the customer may pass along and
then to go in for the close. Now does this approach work? Sure it works
some of time. It has worked for hundreds of years with sales bullies.
But does it work to build a long-term relationship with your customers?
Hmmm, that is a good question to ask yourself if your listening skills
need a tune up.

Mistake #2: Dominating a Prospective Customer


We’ve all been manipulated or lied to by a salesperson and been
turned off by this sales approach. Some sales people think they can

19
fool prospects with charm, flattery, and dramatic appeal, but these
behaviors only mask the underlying motivation behind every word of
the message. When I went to buy my new car, I heard every
salesperson at the dealership use those same tactics over and over
again. I was shocked and appalled that this type of sales pressure still
exists today in a world full of much more savvy consumers.

Mistake #3: Staying One Step Ahead


Anytime you are one step ahead of your prospective customer, your
customer has fallen twenty steps behind you. Is that fair when you are
trying to build a relationship with someone? Follow your customer’s
lead and stay one step beside them if you want to build a strong bond
and lasting connection.

Mistake #4: Believing You Need a Degree in Sales


Some people waste too many years getting a college degree in sales
and still don’t do a good job at it. Getting a degree won’t instantly
make you a great salesperson. The only credentials you need for sales
are the knowledge and interest in what you are selling along with the
desire to help and inform others. Then when you have the opportunity
to sell it over and over again, you will have the confidence and the skill
to make lots of sales.

Mistake #5: Judging People Too Quickly


If you feel that you may judge or size up people too quickly, stop and
take another look at yourself first. Spend more time judging your
abilities and journaling your sales success instead of spending time
searching for your prospect’s weakness. Sure, sales people do this all
them time and exploit others weaknesses to their advantage. But this
is no way to build lasting relationships, get referrals, repeat business
and make more sales.

Class: 7

Customer Service Traits:

Customer Relationship Management (CRM) has become the buzz word


in today’s corporate circles. At the core of customer service is the
sincere desire to serve. This new culture is very effective in the Retail
front as it directly addresses the customers and means for their
satisfaction.
The floor staffs and the counter sales staffs have to follow the basic
traits that come under customer service:
There are some traits of good customer service that can be easily
learned.
Traits that depict good customer service

20
A Friendly Rapport
Greeting Assertion
Building

Te
am
wo
Being rk
A Positive
Pro-active
Attitude
An
Esteem
Self
m effective
of
Pr listening
es
sio
na
lis Never say
NO

1. Friendly Greeting:
A greeting is simply a basic courtesy. It shows that you are polite and
are interested in making the other person feel welcome. It is the first
point of contact with the customer, and should be articulated in a
warm voice and with a smile.

Greet before you are


greeted
2. Being pro active:
When you greet someone without waiting for them to do so, you are
being proactive. You are taking the first step. Let’s keep in mind that
the essence of Customer Service is serving. There’s no room here for
ego clashes with the customer or thoughts such as; “why should I offer
to help? I will wait for him to come to me!” In other words, being pro
active means taking the initiatives.
3. Assertion:
Let’s take an example. A customer comes to you and complains about
the higher rate of the products comparing to the same products in
other stores and how you should give him a discount because the
competitors are charging less. What can you do? There are two
options: first, be a door mat and give in to his every demand and offer
a discount. Second, you decline giving into his demands. Obviously the
first option is out because at the representative level, you usually do

21
not have a say on who gets a discount and who does not. Thus you
have to choose the second option and say no.
As usual the golden rule is to bring out the positive in the situation.
Remind him of the service he is getting of the benefits of having a
customer of your store, and if all else fails assure him that you will pass
this feed back to the senior management level and try to make him
feel as you have patiently listened to his grievance. By doing all these
you are being assertive. You still make your point; you still manage to
say NO, but you don’t offend the customer or be discourteous in any
process.

An angry customer

He is the c I can’t giv


u e in to his
whatever h stomer, demands, I
need to
es
right. I sho ays is say NO.

uld give
him the dis Agent’s possible
count.
Reactions
X

Assertion √
x Aggression

“While we are not in a position


“Look! I already
To give discount, what we can
told you!
Do is…..”
We can’t give

Discount”

4. Effective Listening:
Have you had the experience of someone saying something to you
while you were lost in thought of something else? And as a result, you
had absolutely non idea about what had just been said and the speaker
had to repeat the whole sentence!
This is a simple example of what happens when you hear something
but do not listen. Hearing is just a physical sensation of sound waves
reaching your ears. Listening, on the other hand, is hearing with your

22
Attention. Two ears ….one mouth… we were
obviously meant
To listen twice as
much as we speak!

5. Establishing and building rapport:


Having rapport means that you have a certain harmony with and can
relate to your customer; that the two of you are on the same page.
Simply put, it means you need to bond with your customer. This has
more to do with striking a professional relationship with your customer;
you say things to put him or her at ease and there is an easy flow of
communication between the two of you. This will allow you to solve the
customer’s problem and achieve customer satisfaction. Immediate
rapport is established with a warm welcome and offer of assistance.
Once the customer knows that you are friendly and want to assist, he
or she I more likely to reciprocate and you start the interaction on a
positive mode.
6. Team work:
Always remember that you represent a team that again showcases the
organization in general. Any adverse comment against others on the
same line and profile can repudiate the industry in general. Moreover
the customer knows not you but the organization and any
badmouthing can bring upon a loss.
7. Professionalism:
Entering the corporate retail world requires quite a mental gearshift.
Retail industry demands certain ethics on standard of quality and
professionalism. This culture is filtering into the retail arena rapidly.
Integrity, being quality conscious, a good time management capacity
and consideration for others are the most important factors of
professionalism.

Circumstances are out of control but our


reactions are not.

A real life case study of counter sales inside a retail shop.

A customer (C) walked inside a departmental store with his wife (W).
They are welcomed by a nicely dressed customer associate girl (A). As
they proceed towards the garments department the following
conversation follows.

23
A: welcome to our garments store sir. You can get a variety of range
of any sort of dresses as
Per your choice. Could you please tell me sir what are you
looking for?
C: (being comfortable to see someone as a guide at hand), I see!
Could you please show me
Some winter jackets?
A: of course sir, here you get a wide stock of jackets you can browse
through them to suit your
Choice. The price is displayed in the sticker with each item; you
could also get a discount of
Some of the products. (With simple yet pragmatic details the A
helps C to know everything.)
W: can you specify the latest collections out here because we are
looking for something trendy
Yet affordable.
A: sure ma’m, there are the new collections and all are fresh lot of
stocks you may like the
variety of colours and new materials. (Guiding through the right
place A satisfies the
customers)
C: yes that’s better!
A & W becomes busy in selecting the jacket while A patiently
watches with a caring attitude
and smile)
W: (Picking up one) okay this one looks good, I keep it for you
C: have you checked the price I think it’s quite high.
A: (if you don’t mind sir I will interrupt you a bit only to say that you
get a flat 20% discount on
this item and look at the brand sir, I think it will carry your
personality too. Above all you
should respect madam’s choice. (Maintaining a courteous nature
A actually teases the ego
of C. W: that’s true. (See how politely A is persuading C yet
not imploring at all)
C: Okay, now what about the exchange if requires?
A: its very simple sir, any day you just drop in to our store and you
shall get the garments
replaced with new, but I believe you never have to take the
hazard of this because we are
Confident about the quality of our products. (Notice the assertive
attitude).
W: that’s fine; now tell us where the counter is? And do you accept
card?
A: Ma’m you can give it to me, while I do the billing you can roam
around the other

24
Departments. (Making the customers hassle free)
A: here is your packet sir, you please check it once and put your
signature in this bill.
Thank you sir and please visit again. (Closing the deal)

Test of selling skill

1. When a customer objects to your price, it generally means that they


have got a cheaper price elsewhere and that your product is overpriced. True Don't Know False

2. It is a good idea to add a bit on the price for a tough customer so you
can take it off again under pressure. True Don't Know False

3. Being more expensive than your opposition is often a good thing.


True Don't Know False

4. To a customer, the price of a product and cost of a product are


essentially the same. True Don't Know False

25
5. When a customer offers to pay your price less 10%, you should offer to
negotiate by splitting the difference. True Don't Know False

6. Value is what a buyer gets when they buy a product that is at a reduced
price. True Don't Know False

7. Paying a higher price for a product is often the best choice.


True Don't Know False

8. Attempts to persuade or influence customers will adversely affect your


relationship with them. True Don't Know False

9. Your customer's view of your price often depends on your view of your
price. True Don't Know False

10. The hardest products to sell are those whose price is higher than
similar products sold by your competitors. True Don't Know False

Unit 4: Retail Strategy

Class: 8

Store Management and Operations


Technology

As technology has advanced, it has been possible for some retail


outlets to offer complicated price deals based on various factors such
as the amount of goods purchased, or what combination of goods have
been purchased. This is possible because the computer system is able
to calculate the permutations that arise.
The cash register is, in effect, a terminal to the main computer system
and provides its operator and the customer information on the cost of
the goods that are being purchased.
An example of a price deal is where a store offers money off if a
customer buys two packs of a given product. When the first pack’s
information is entered into the terminal, the system will calculate the
full price. When the second pack is entered it will automatically
subtract the discount.

Décor

The way a retail outlet looks will usually inform customers and
potential customers about the type of store and type of products it
sells. Nowadays as the competition grows the supermarkets are

26
running after the front look and exterior. The fashionable and attractive
design pulls customers easily and increases the flow of business.

Design

A store that sells high class goods will usually have high class décor. By
contrast, a store that sells basic goods may have basic décor. Retailers
will typically want their stores to be different from their competitors.
This distinction allows the store to offer a shopping "experience". A
store offering distinct décor can score points over their competitors.
This dimension is important as it reduces the burden on product versus
product and price versus price competition. This ultimately feeds in to
the value of the products on offer and helps to maintain margins. A
balance needs to be struck between this need to be different with the
need to make customers feel welcome. Surroundings can be distinct,
innovative and even edgy but must not alienate the customer.

Frequency of Redecoration

Stores that sell fashion goods will often change their décor regularly to
reflect the changing nature of their products. For some well established
stores, their décor may be synonymous with their business and their
product offer. Such stores may seldom change their décor or only
change it in minor ways. Some stores offer a mixture of both – they
may be well established and have traditional décor, but will also adapt
it in order to highlight the changing fashions of their product offer.

Lighting

Food stores are usually well lit. This re-enforces an impression of


hygiene and honesty. It also allows customers to read labels and signs,
some of which may be legally required. The lighting in clothes and
some specialist goods stores may vary across the store, according to
the products being lit. Such lighting may range from soft, or even dull,
to bright and occasionally colored.
Very similar factors affect stores that are on the internet. For example,
this online store that sells fly killers is mainly white and bright in order
to symbolize hygiene.

Six ideas to capture customers and enhance your brand

27
1. Help associates spend more time with the customer through
intelligent conversation. Instead of using traditional techniques, deploy
intelligent conversational tools to engage the customers listening to
you and about your product. Intelligent systems boost productivity,
employee and customer satisfaction.

2. Make your store hum by using wireless communication. Wireless


technology is dramatically changing the world of retail; wireless
handheld computers and mobile point-of-sale devices enable retailers
to help customers in real time from wherever they are in the store.
Wireless telecom is even bigger. Wireless-enabled sales associates are
responsive to customer needs via faster price checks, size assistance,
and location of merchandise that hasn’t made it out of the back of the
store. It enables instant communication with other departments and
other stores.

3. Drive faster decision-making by turning on newest training methods.


Retail CIO’s routinely talk about the huge number of reports they
generate or meetings they hold to help marketing and merchandise
staff get the right information. Personalize training on the technological
advances can enable faster decisions. The intelligent communications
infrastructure can be effective instrument to covey the right
information at the right time.

4. Anticipate the customer’s desire to make your store their favorite


place. As your efforts to attract and retain customers become

28
successful, your business will grow. Intelligent Communications can
help to make it happen. Using voice technologies, customers who need
help can quickly and easily locate assistance. If merchandise isn’t
available it becomes possible to provide immediate access to the call
center for order and delivery. Retailers can also leverage their
knowledge of the customer to create effective push (newsletters, e-
mails) and pull communications (frequent buyer programs) that can
increase the stickiness of the customer-retailer relationship.

5. Enable seamless multi-channel communications. Retailers may


differentiate between channels but customers don’t – they view
retailers as a single integrated business. Retailers need to provide
these customers with consistent pricing, promotional offers and
communication. At the same time, each channel has its own unique
requirements. To capitalize on the multi-channel opportunity
businesses can leverage new telephony tools to drive increased
demand, customer service and greater profitability across the
channels.

6. Enable individual store associates to get the information they need.


In some stores the person who knows the least about merchandise is
the sales associate. Some retailers address this by creating phone-
enabled information centers where sales associates can ask questions
of the resident expert. The next step is for retailers to use integration
tools to create a link between customer databases and their in-store
phone system. Catalog retailers have used systems similar to this for
years, and have relied on the fast turnaround they provide. This
enables these same experts to also be on the floor available to
customers.

Merchandising

The way that products are displayed – or “merchandised” - can have a


significant affect on retail sales. For example, sales of fruit and
vegetables tend to increase when displays are full and bold.

In self-service stores, staple products tend to be merchandised


strategically so that customers looking for these items are required to
walk past higher profit items such as luxury goods. This can often
result in higher sales and higher profits.

Merchandising consists of the following elements:

- Correct strategic placement in the store


- Eye-catching and appealing display

29
- Appropriate point of sale support media (e.g. labels, signs)
- Legal requirements satisfied

Unit 5: Retail Communication

Class: 9

Voice Conversation

Communications is not just about a integrated technique to lure the


customers and look your product catchy to others. It's about changing
the way you think about the power of language and its ability to make
a difference in how your organization achieves its strategic objectives.

Quite simply, it is the result oriented voice based applications inside


mission-critical business processes to deliver competitive advantage.

Intelligent and goal oriented selling pitch enables businesses to forge


closer relationships with customers. For retailers interacting with
customers and guiding them through the array of merchandises is a
discipline that should be followed with calculative measures. After
identifying the customer and his or her demand, the retailer steers that
customer to the right advisor based on the customer's characteristics.
This type of customized service helps build closer relationships with
customers.

Intelligent interactions can also increase employee productivity. It


ensures that every sales person is gripped with the target that should
be achieved to reach the incentive edge. It requires a lot of rigorous
experiment on dealing with different clients coming from different
strata of our society.

What is intelligent communications (relationship


infrastructures) device?

Intelligent communications is the ability to link direct, real-time


communication between humans when - and only when - needed to do
the job. Intelligent communications is enabled by integrating voice
communications into business processes to bring exact and timely
service to a customer.

Picture this scenario that is common today: Customer receives an e-


mail notification of their recent online purchase. Customer reviews and
notices an issue. Customer must look up and then call the customer

30
service , navigate through a series of prompts, relay the information
about the order and discuss the issue for resolution.
Now let’s see what happens when intelligent communications are
embedded into this process: A customer who purchased online reviews
his confirmation and notices an issue….the customer presses a ‘click to
talk’ button. Behind the scenes, the button connects to the
communication system, which identifies the need for assistance. It
looks up the customers contact information and initializes a phone call
between an available agent in the call center and the customer.
Simultaneously, it sends the order information to the agent desktop.
Now the customer and agent talk, immediately and in an informed
way, improving the efficiency of the customer interaction and opening
the door to enable the agent to cross-sell or up-sell the customer.

Thus, intelligent communications can really make a difference in a


customer’s experience – and greatly impact whether a customer sticks
with one retailer or switches to another.

Unit 6: Public Relation.

Class: 10

Introduction to Public Relation in Retail.

Public Relation is a management function that involves monitoring and


evaluating public attitudes and maintaining mutual relations and
understanding between an organization and its public. Public could
include shareholders, government, consumers, employees and the
media. It is the act of getting along with people we constantly come in
touch with. PROs ensure internal cohesion in the company by
maintaining a clear communications network between the
management and employees. Its first objective is to improve channels
of communication and to establish new ways of setting up a two-way
flow of information and understanding.

Public Relation is an integrated part of the Retail Industry because of


the need to market their product, service and facilities. Public image is
important to all Retail Industry as it has directly to deal with the
consumer in general. The role of public relation specialist becomes
pertinent in crisis situations when the correct and timely transmission
of information can help save the face of the organization.

In terms of Retail , Public relations is broadly practiced for merchandise


publicity, corporate publicity, to have better relations with the

31
consumers, to publish corporate publications like newsletter, bulletins,
magazines for employees and consumers etc.

How does PR work in Retail?


Public relations officers have to work within and outside the
organization. Within the concern they have to conduct management-
employee meets, to inform organizations policies, activities and
accomplishments. Outside he has to liaison with government
departments, trade unions, press etc whose cooperation is required for
the smooth functioning, and also have to manage complaints from the
consumers, organized events like fairs, exhibitions etc.
The work involves keeping management aware of public attitudes and
concerns of the many groups and organizations with which they must
deal.
In Retail the Public relations managers evaluate advertising and
promotion programs for compatibility with public relations efforts and
serve as the eyes and ears of top management. They observe social,
economic, and political trends that might ultimately affect the firm,
and they make recommendations to enhance the firm’s image on the
basis of those trends.
A Retail Organization’s reputation, profitability, and even its continued
existence can depend on the degree to which its targeted “publics”
support its goals and policies. Public relations specialists—also referred
to as communications specialists and media specialists, among other
titles—serve as advocates for businesses, nonprofit associations,
universities, hospitals, and other organizations, and build and maintain
positive relationships with the public. As managers recognize the
importance of good public relations to the success of their
organizations, they increasingly rely on public relations specialists for
advice on the strategy and policy of such programs.
Public relations specialists handle organizational functions such as
media, community, consumer, industry, and governmental relations;
political campaigns; interest-group representation; conflict mediation;
and employee and investor relations. They do more than “tell the
organization’s story.” They must understand the attitudes and
concerns of community, consumer, employee, and public interest
groups and establish and maintain cooperative relationships with them
and with representatives from print and broadcast journalism.
Public relations specialists also arrange and conduct programs to keep
up contact between organization representatives and the public. For
example, they set up speaking engagements and often prepare
speeches for company officials. These media specialists represent
employers at community projects; make film, slide, or other visual
presentations at meetings and school assemblies; and plan
conventions. In addition, they are responsible for preparing annual
reports and writing proposals for various projects.

32
With the upcoming trend of retailing PR gets focus and is indeed an
effective tool to bring in qualitative changes in the industry.

Unit 7: Retailing in India:

Class: 11

India Retail has got airborne and the concept of organized retailing and
better distribution and logistics has set in. The Indian urban consumer
is also now getting hooked to this new method of home purchases that
also combine into family outings and entertainment. The mall
infrastructure across cities and supply chain mechanisms across the
country are getting into place. India Retail seems set to grow
exponentially in the next few years and the global giants are waiting at
the wings for entry. The government regulation on ownership in retail is
the only obstacle for international retailers. Global brands have
however come in and set themselves up well.
Like in most other countries, India's retail network has grown through
what are called "mom-and-pop" stores, small grocery stores that are
run by individuals or families and cater to their immediate
neighbourhood or locality. Like in most other countries India's retail
industry is slowly getting organized and corporatized and giant
networks of stores are spreading themselves across the Indian
landscape starting with the larger and more populated cities and
towns.

33
The Indian retail story of transformation began a few years ago and is
rapidly spreading across the more densely populated cities and towns
but still a small fraction of the total retail potential that exists. Indian
regulations do not allow for foreign owned and controlled retail chains
and this has held back the world's largest retailers including Wal-
Mart, Tesco, Sears, Target, Krogers and others. Indian organized
retail is presently being tested and built upon by a clutch of new
entrepreneurs and companies and these include Pantaloon Retail,
FoodWorld, Spencers, Shoppers Stop, Lifestyle, Subiksha and
several other smaller players.

India's retail revolution has been driven by large expectations, a flurry


of interest by Indian and international companies and a large activity in
the development and operation of retail malls. These malls anchored
by large stores have become home to several large international and
Indian brands that are using this channel to spread themselves out
across Indian cities in high-profile exclusive brand formats.
Analysts expects the Indian retail growth process to take a decade
since there is a large population of one billion that needs to be slowly
reached and this population is spread across six hundred thousand
villages. The large urban population of India is about three hundred
million and spread across about a couple of hundred large cities and
smaller towns. Organized retail is expected to home in on this
proportion first in the next five to ten years. At present most of the
large retail activity and brand building is focused on about twenty
Indian cities, each of which has a population of one million.

Indian retail will slowly expand from the small dots that it represents
across the Indian map and become large spots and areas over the next
few years.

Indian government regulations are going through a long and


meandering debate on whether or not India should allow foreign retail
chains to come in and if yes, then how they need to be regulated and
controlled. Most see retail as a bastion that will fully liberalize and
globalize India and threaten large employment that is presently
provided by the small unorganized retail network that is present all
across Indian districts including the small towns and villages. The new
organized format will mean a lot of change for the network, the
consumers and the product vendors and this is being analyzed and
considered carefully by the government. The government knows that
opening up the retail sector will create a lot of changes in cultural and
employment patterns as well as sound the death knell for several
hundreds of thousands of small and tiny enterprises that are involved
in retailing and manufacturing of products for local markets. This large

34
change is however unlikely to be possible to stem in the long run. India
will slowly open up and moderate the change but the new retailing
experience that has already been sampled with great success is
expected to expand slowly but surely till it covers the entire geography
of the country.

Corporate Retailers plan to augment the share of modern retail from


the current 4% to approximately 15%-20% in the next four years by
investing more than US$25 billion.

Class : 12

India's Consumer Markets: identifying a plausible market size for products

This report is intended to assist consumer product companies in identifying a


plausible market size for their product/s in India. The table below should be viewed
in conjunction with the text that follows.

India's consuming class

Table I
Table II
Estimated households by annual
Structure of the Indian consumer market (1995-96)
income
Annual income Number of households (in
Annual income (in No. of million)
Rupees) at 1994-95 households (in Rupees) at Classification
prices (in million) 1994-95 Urban Rural Total
prices

<25,000 80.7 <16,000 Destitutes 5.3 27.7 33.0


16,001-
25,001-50,000 50.4 Aspirants 7.1 36.9 44.0
22,000
22,001-
50,001-77,000 19.7 Climbers 16.8 37.3 54.1
45,000
45,001-
77,001-106,000 8.2 Consumers 16.6 15.9 32.5
215,000
>106,000 5.8 >215,000 The rich 0.8 0.4 1.2
Total no. of households:
Total no. of households 46.6 118.2 164.8
164.9 million

• Data on income distribution of households is insufficient in determining


market size for different consumer products in India. This is because of the
lack of homogeneity of the consuming class and the varying prices of a single
product in different parts of India. For example, vegetables generally cost
more in Mumbai than in Calcutta, hence vegetable-purchasing power for
identical income groups would be different in the two places even though they
are the two biggest cities in India with comparable populations. In other
words, purchasing power is location-specific, not income specific.

35
Consumption habits of households are therefore better determinants of
consumer market size than income distribution. Of course, other factors are
also to be considered and they are detailed below.

• While determining market size for a consumer product, the structure of the
consuming class as seen in Table II above, can be both revealing as well as
misleading depending on the kind of product. For example, any specific
consuming class would be fit to be a market for consumer products like tea or
soap, but a product such as vacuum cleaners would find market largely only
in the "consumers" and "rich" segments of the market as defined in Table II
above. Furthermore, even this may not be correct, because a taste for a
vacuum cleaner is not necessarily a function of purchasing power but of
culture and/or taste as well.

• Identifying a plausible market size for a consumer product is therefore a


hazardous task in a heterogeneous country like India. Yet, the marketer
needs some data to come as close to the real picture as possible. For this
purpose, it can be cautiously assumed that purchasing power is proportional
to income despite variables such as location, taste etc. Companies are
therefore advised to plan their consumer product marketing strategies on an
area-by-area basis, rather than on an all-India basis.

• Income data is insufficient. Therefore, it must be supplemented by product-


specific information regarding its existing stock in the marketplace (in the
case of consumer durables) and existing rate of purchases.

• It is also advisable to further refine the plausible market size by taking into
account details based on social, cultural and demographic factors.

• Marketing a super-premium product such as a Rolex watch is relatively easy.


Just go for the income class above Rs. 106,000 per annum (in 1995-96) as
per Table I above. This class, Table I shows, comprises 5.8 million households.
But the problem lies in the fact that the 5.8 million households are spread all
over India.

• The prime market for consumer products in India is aware of the cost-benefit,
or value for money, aspect. Their convept of value incorporates socio-cultural
benefits in addition to product utility. For example, many households in the
"consumers" class and the "rich" class (as defined Table II) may have two
television sets, but both the sets may not be top-of-the-line. Thus, while they
may be demand for an additional TV set in many households in the two
mentioned classes, it must not be mistaken as demand for the higher priced
TV models. The prime consumer market in India therefore is not a market for
absolute premium products, but for something between the "high end popular
brands" to the "premium brands."

• The class described in the previous paragraph is actually the "consumers"


class defined in Table II. This class comprises 33.5 million households as at
1995-96 and it owned and 'consumed' most of the expensive consumer
products such as refrigerators and washing machines as well as premium
expendables. At 1994-95 prices, their annual household incomes ranged

36
between Rs. 45,000 and Rs. 215,000 (to calculate the latest income statistics,
use an annual inflator of 5 per cent). In addition to this class, the "climbers"
and "aspirant" classes (defined in the Table II) totaling 23.9 million
households in urban India, also have the socio-cultural traits of the
"consumers" class and, with time, will join the consumers class. Medium-to-
long-term marketing strategy must therefore aim at the aspirants and the
climbers as well. This is based on the safe assumption that, except for the
destitute class as defined in Table II, the other classes are on the way to the
next higher class. For companies with long-term marketing plans in India, the
"consumers" (urban + rural), "climbers" (urban only) and "aspirants" (urban
only) classes can be clubbed together to give a market size of around 57
million households which can be said to be the "prime segment" of the Indian
consumer market. This becomes even more true as consumer financing and
the credit card culture picks up. Fine-tuning between the classes is of course
important, as explained in the next paragraph.

• Suppose you are marketing washing machines. Go for two broad types: fully
automatic and semi-automatic. Target the fully automatic machines at the
"consumers" class and the semi-automatic at the "aspirant" class; the
"climbers" class will then overlap the market for both the types of washing
machines.

• All of the above may be confusing, but the marketing strategist has to live
with it because that's how the Indian consumer market is in reality. There is
hardly a characteristic that applies across the market. Hence, the term
"Indian consumer market" is a misnomer: it would be more accurate to
describe it as a collection of different consumer markets.

Class 13

Indian Consumer Market survey

The Indian consumer market is set to scale new heights. With an estimated ten-fold increase
in the middle-class population and three-fold rise in household income, aggregate consumer
spending is likely to more than quadruple from around US$ 428.69 billion in 2005 to US$
1.76 trillion in 2025.

Simultaneously, India is likely to leap-frog from being the twelfth largest consumer market in
the world to become the fifth largest consumer market in the world, says a study by
McKinsey Global Institute. Significantly, over 23 million Indians-more than the population of
Australia-will number among the country's wealthiest citizens.

FMCG

India's fast moving consumer goods (FMCG) sector is the fourth largest sector in the
economy. The total FMCG market is in excess of US$ 17.36 billion and is set to treble from
US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.The Indian FMCG industry grew by 22
per cent in 2006. Food (43 per cent) and personal care (22 per cent) constitute the largest
contributors to the total sales.

The fact that the per capita income has nearly doubled in a short span of four years to just
under US$ 800 in 2006-07 (from around US$ 450 in 2002-03), has boosted the growth of

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FMCG companies. The prospect for further growth in this segment is robust as in many
categories of commodities, the market penetration levels of the organised sector is still low.

In fact, the surge in consumer spending along with the changes in consumer tastes is likely
to ensure high growth rates across a range of FMCG categories. For example, market
research firm AC Nielsen has identified 24 categories in the personal grooming space that
are growing at an average growth rate of 13 per cent. Products like perfumes, body washes
and hair colours among others have all been experiencing high double-digit growth.

Consumer Durables

A combination of changing lifestyles, higher disposable income, greater product awareness


and affordable pricing has been instrumental in changing the pattern and amount of
consumer expenditure leading to robust growth in the consumer durables industry.

During the first six months of the current fiscal year, the industry recorded a growth rate of 13
per cent, which is higher than the 11.5 per cent growth rate for the whole of 2006-07 and 8.5
per cent growth rate for April-September 2006.

The microwave oven segment grew at a robust rate of 75 per cent as against 27 per cent in
the corresponding period last year.
The fully automatic washing machines market grew at the rate of 40 per cent as against 33
per cent recorded in the same period last year.
While refrigerators as a whole increased by 12 per cent as against 10.3 per cent in the same
period last year, frost-free refrigerators sales rose by 35 per cent.
Similarly, while air conditioners as a whole grew by 40 per cent as against 25 per cent in the
same period last year, split air conditioners grew by 80 per cent as against 58 per cent in the
corresponding period last year.
Significantly, rural markets, which account for about 70 per cent of population, have been
growing at a higher rate of 25 per cent compared to 7-10 per cent growth rate of urban
consumer retail market.

Consumer Electronics

The consumer electronics sector is estimated to grow at the rate of around 11 per cent,
achieving a production level of US$ 5.04 billion during 2006-07 compared to 2005-06. The
fastest growing segments during the year were colour TVs, DVD players and home theatre
systems. The growth momentum has continued into the new fiscal.

Colour TV (CTV) sales grew by 15 per cent during April-September 2007 as against 14.4 per
cent during the corresponding period last year.
During April-June this year, overall personal computer (PC) sales rose by over 47 per cent
compared to the same period last year. Within this, desktops rose by 38 per cent and
notebook sales grew by 104 per cent.
India recorded the world's largest sale of mobile phones during July-September this year
accounting for 8.5 per cent world-wide sales, recording 15 per cent growth compared to the
same period last year.
iSuppli, an electronics market research firm, predicts that the Indian audio/video consumer
electronics industry will grow to US$ 6.59 billion by 2011, rising at a compounded annual
growth rate (CAGR) of around 10 per cent.

Automobiles

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The Indian auto industry has grown at a CAGR of 14 per cent over the last five years with
total domestic sales of vehicles reaching around 10.1 million vehicles in 2006-07. The growth
continues in the new fiscal with cumulative growth of Passenger Vehicles sales recording
13.45 per cent during April-October 2007. Presently, India is the second largest two-wheeler
market in the world, the fourth largest commercial vehicle market, the 11th largest passenger
car market in the world, and is expected to be the seventh largest automobile market by
2016.

e-commerce

Thanks to the broadband revolution, more Indians are spending ever more on the web.
According to a comprehensive consumer e-commerce survey conducted jointly by the
Internet and Mobile Association of India [IAMAI] and IMRB, the Indian consumer internet
market is estimated to grow to US$ 2.32 billion by the end of 2007-08 from US$ 1.78 billion
in 2006-07, recording a growth rate of 30 per cent.

Segment-wise online travel accounted for 77.68 per cent of the total e-commerce market in
2006-07 and is expected to grow by 30 per cent this year.

In this segment, India is well placed with the growing number of credit and debit card
holders. In fact, India became the largest market for Visa debit and pre-paid cards in the
Asia- Pacific in 2006, accounting for 34 per cent of the total customer base in the region.

Consumer Confidence

The Indian consumer remains the most upbeat globally. According to the AC Nielson
Consumer Confidence and Opinion Survey, India has topped both the 47-nation global
survey and the 14-country Asia Pacific study for the fifth time in a row. Also, the perception of
Indians regarding their personal finances (90 per cent optimistic) and job prospects (94 per
cent optimistic) is robust which opens attractive avenues for industries planning to tap the
Indian consumer market.

Class 14
A Newspaper Editorial about Retailing.

The ever expanding retailing sector

How much more can it grow, how many players can it hold?
-------------------------------------------------------------------------------
Retailing has reached a certain degree of specialisation in that chains of wellness shops,
healthcare outlets and centres for lighting, furniture,

and even crystals have come up at various places.

--------------------------------------------------------------------------------

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ONE-STOP-SHOP: A view of f More retail store.

The Mahindra group may be the latest to express an intent to get into the ballooning retail
sector, trying to get a slice of the rapidly expanding market, especially the lifestyle segment.
The group’s desire to enter this sector comes in the wake of an already crowded field, where
both multinationals and corporate giants are trying to cater to a rapidly rising middle-class
and affluent sections.

Global brands

When the Central Government began to liberalise the retail sector, multinational corporations
and global brands (especially in textiles and garments) swiftly moved in to capture a new
market. The global brands, which were available only to the globetrotters or business
travellers, or routed through the parallel market, were now available at several shopping
malls and showrooms in many of the major cities and towns.

Realising the potential in the retail segment, which was confined to the supermarket chains
in the past, a host of Indian companies decided to enter the segment. After the advent of
Marks and Spencer, followed by a large number of brand names, Indian giants such as
Reliance, the Tatas, and the Aditya Birla group decided to try their hand in retailing. There
was a mild storm when the Bharti group announced a tie-up with the famous Walmart chain
to enter wholesale retailing in the country.

The dust may not have settled in this controversy, but Bharti chief Sunil Mittal remains
committed to launching his retail chain by March 2008, and to get Walmart into the country
by the third quarter of the year.

Reliance’s plans

40
While many of them have already launched operations across the country, they are also
coming up with ambitious plans for the future.

Reliance Retail has specialised in virtually every segment of retail business — from books
and music to fresh vegetables and groceries. It plans to open about 2,000 stores by 2011.

The Tata-Trent vehicle came up with the Star Bazaar, and this has been followed by several
other bazaars and one-stop-shops. From exquisite watches and jewellery, to home décor,
and jeans, a whole range of articles is now available in these shopping centres.

Retailing has reached a certain degree of specialisation in that chains of wellness shops,
healthcare outlets and centres for lighting, furniture, and even crystals have come up at
various places. And names such as Gautier, Fortis, and Swarovski are associated with them.
In addition to the import and retailing of branded goods, the Centre has liberalised the
foreign direct investment (FDI) rules in the retail sector. This may be particularly relevant to
the electronics, stationery and sports goods.

Protests

These plans and expansion of the branded markets have, of course, raised an uproar in
many States, especially among political parties, besides local manufacturers, artisans, retail
traders and non-Government organisations. They have all raised banners of protests against
what they describe as “large scale invasion of foreign brands and multinationals” into the
retail sector, which not only provides millions of local jobs, but also sustains lakhs of small
traders. Their fears relate mainly to two major concerns: One elimination of the existing small
trader network and two introduction of contract farming or production that could also result in
drastic reduction in the prices paid to the primary producer such as the farmer.

Mr. Sunil Mittal has taken the stand that the expanding retail sector can take both the existing
network and the new high-end chains. His argument is that the chains of retails outlets,
format shops, supermarkets, and hypermarkets can certainly generate more employment in
the local areas. The retail segment now has a trade of about $300 billion and this could climb
to $500 billion in three years.

The organised retail business, or the high-end market, could account for just about $100
billion, which meant that the bulk of the market would remain with the private retailers still in
business.

But the traders argue that they will have to compete both for the produce as well as the
market. Customers could prefer the well-displayed, stocked, and packaged products sold in
those chains to their own premises.

At least initially, they say the chains may offer the producer a better price and the customer a
more competitive price just to capture the market. So, some of them are launching special
drives for customer loyalty and going in for telephonic orders, door delivery, and one-month
credit too, as the competition hots up.

Class 15
Retail Quotations

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The god whom science recognizes must be a God of universal laws exclusively, a God who
does a wholesale, not a retail business. He cannot accommodate his processes to the
convenience of individuals.
William James

Count not him among your friends who will retail your privacies to the world.
Publilius Syrus

Most of my friends from college became dental hygienists or went into retail, a lot went into
sales. They all started getting married and having kids and buying homes and I was still
living like a college student.
Patricia Heaton

Know how to effectively voice a complaint or make a claim at a retail store.


Marilyn vos Savant

Well, there's no question that the law passed in 1996 was flawed. It deregulated the
wholesale market, meaning the price that the utilities had to pay energy companies for
power, but not the retail market.
Gray Davis
Retailing, it's always true that there is some items that I wish we had a lot more of like the
iPod and there is some items I wish we had a lot less of.
Lee Scott

No one in my family had a retail or marketing background. They were professionals. They
didn't understand just what I was doing by going into retailing. After I started, though, it got
into my blood. I knew this was what I wanted.
Andrea Jung

My brethren, when God first began to love you, He gave you all that He ever meant to give
you in the lump, and eternity of time is that in which He is retailing of it out.
Thomas Goodwin

Windows are as essential to office prestige as Christmas is to retailing.


Enid Nemy

Retail Translations

Retail in German is Kleinverkauf, Einzelhandelsabsatz, Kleinverkauf


Retail in Hungarian is kiskereskedelem
Retail in Italian is commercio al dettaglio
Retail in Spanish is venta al por menor
Retail in Swedish is detaljhandels
Retail Jokes

1. A Manager of a retail clothing store is reviewing a potential employee’s application and


notices that the man has never worked in retail before. He says to the man, "For a man with
no experience, you are certainly asking for a high wage." "Well Sir," the applicant replies,
"the work is so much harder when you don't know what you’re doing!"

2. A duck walks into a general store and asks the manager,"Gotany fresh fruit?" "No." "Got
any fresh vegetables?" "No. We have only canned and dry goods." The next day, the duck

42
returns." Got any fresh fruit?" "No." "Got any fresh vegetables?" "No. I told you yesterday, we
have only canned and dry goods. If you come back tomorrow and ask me the same
question, I'll nail your flippers to the floor." On the 3rd day, the duck walks in and asks,"Got
any nails?" "No." "Got any fresh fruit?"

3. Reaching the end of a job interview, the Human Resources person asked a young
applicant fresh out of Business School, "And what starting salary are you looking for?"

The applicant said, “$125,000 a year, depending on the benefits package."

The interviewer said, "Well, what would you say to a package of 5-weeks vacation, 14 paid
holidays, full medical and dental, company matching retirement fund to 50% of salary, and a
company car leased every two years - say, a red Corvette?"

The applicant sat up straight and said, "Wow! Are you kidding?"

And the interviewer replied, "Yeah, but you started it."

Retail Interview Process

Shine at interviews
This is where the recruitment process finally moves off line - but not necessarily face to face.
A growing number of retailers conduct first stage telephone interviews. It cuts back on
recruitment time and is a great way of assessing how quickly you can build a rapport with
customers or colleagues. It also makes sense for the growing number of retailers who have
moved into home shopping and do much of their business over the phone.

Whether it's a phone interview or face to face, the same principles apply if you want to
succeed:

Do your research
Find out as much as you can about the business, its products, customers, and future plans.
This is especially important if you are applying for a managerial vacancy but it is also worth
the effort if you are being interviewed for a sales assistant or entry-level job. Good sources of
information are corporate websites or retail trade magazines. If there is a store near you,
have a good look round at what it sells and how.
If you are new to retail, look at some of the trade association sites to find out more about
what makes retailers tick. Try www.skillsmartretail.com or www.brc.org.uk

Create the right impression


Retailers want to recruit people who can get on with a whole range of different colleagues
and customers and at all levels of the business. There are a few simple rules to help you
establish a rapport within the first few minutes of the interview:
Dress appropriately. Supermarket managers and supervisors look smart, which still means
wearing a suit. Fashion retailers tend to wear the clothes they sell. Your dress is a great way
of indicating that you understand the brand. If in doubt, concentrate on being clean and
comfortable.
Arrive a few minutes early and turn off your mobile phone.
Be polite and friendly to everyone you meet from the security guard onwards - you can never
be sure who will have an input into the selection process.
Make eye contact with the interviewer as soon as you enter the room.

43
Shake hands firmly and don't sit down before you are asked.
If it's a panel interview, make an effort to address your comments to everyone.
Unless you are supremely confident don't risk any retail jokes - there is every chance they've
heard them all before.

Get your message across


Retailers are looking for people with the right skills set who are going to stick with the
business. Show the interviewer that you have a passion for retail and their brand in particular
and have what the job requires.
Wherever possible illustrate your answers with examples of how you have already dealt with
an issue - preferably within work. For example, if the interviewer asks you how you would
deal with a particularly dissatisfied customer, talk about when you have done that in the past.

Don't be afraid to ask questions


Use the interview to find out about the job such as the hours, who you would report to, why
the job has become vacant and what opportunities there are for progression. This is another
opportunity to show your enthusiasm for the job and the industry.
Don't forget to ask what happens next and when you can expect to hear if you have made it
through to the next stage in the selection process.

After the interview


Interviews can be exhausting. But if you can, sit down somewhere quiet for a few minutes to
think about the questions you were asked and how you might improve your answers a
second time round.

If you have not heard within the time frame you expected, then ring or e-mail the recruiter. If
it turns out that you haven't got the job, ask for some feedback on your performance. You put
a lot of effort into an interview and good recruiters are happy to oblige. They know they may
have other vacancies in the future that you might be able to fill. However, be prepared to
take criticism on the chin and learn from it.

Tricky interview questions - and how to answer them


Don't be put off by tricky interview questions. If you have prepared well beforehand,
researched the company and the role and have thought carefully about your successes and
achievements to date you should be able to handle anything.

Q. Why do you want this job?


It's the natural next step for you and this is the right organisation in which to further your
career. Show off your knowledge about retailing in general and this retailer in particular -
make all that research worthwhile.

Q. What are your strengths?


You will always be asked this in one form or another so make sure you have some succinct
answers relevant to the job. An ability to handle tricky situations may be relevant for a
customer service role and being a great team player will be useful for many roles in retail.

44
Q. You've worked for three different retailers in the past four years. How do we know
you will stay with us?
Don't be defensive if you have changed jobs frequently - it's fairly common in retail. Explain
that great opportunities came your way to work with different brands but now you are looking
for solid career opportunities.

Q. You've never worked in retail - why should we take you seriously?


If you've been offered an interview the employer must think you will be useful to the
organisation. Make sure you highlight any relevant any sales skills, customer service
experience or knowledge of the service sector.

Class: 16

Unit 8: Project Work & Assignments: Case studies and dummy


projects

1. Write a brief scenario of Retailing nowadays. What is the challenge factors


work behind the growth of it?

2. Specify a few merchandise that is sold in the retail shops and


discuss about the phenomenon
Requires supporting the customers as well as storing staffs to have a
better and fair deal.

3. What is store management? What are must do things for a smooth


management?

4. What is the job opportunity in retail sector? Can it make a good


career for someone?

5. Suppose you want to hire some customer support associates for


your store in a supermarket,
What are the things you will look in the candidate?

6. If somebody asks you about the growth potential of retail in India


what will be your answer?

7. What is PR and how it works in a retail sector?

8. Suppose you went for a survey to Pantaloons just to check out the
way how CCA s manage the
Customers and after a through survey for three days you are going
to pen down a report based
On your observation?

45
9. Go through the following topics and arrange them according to their
priorities as it comes to a
retail salesperson.

1. Customer Needs and Preferences


2. Making On-Target Recommendations
3. Cross Selling and Up Selling
4. Greeting the Customer
5. Establishing Rapport and Trust
6. Closing
7. Handling Customer Resistance

10. Make a conversation between you (A salesperson) and a customer who has come to
Your store of cosmetics for a wedding shopping.

11. If you get a complaint from your management for not working as per the instructions what
may be the probable fall outs you bring upon yourself?
What are the steps you take to eradicate these problems?

12. What should be the proper etiquettes (non-technical) to be maintained while working in a
retail outlet?

13. Write down the words or phrases told by your faculty and give the meaning?

The
END

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