Sie sind auf Seite 1von 17

RETAIL MANAGEMENT, 2/E

Chetan Bajaj, Director, Sona School of Management, Salem, Tamil Nadu Rajnish Tuli, Director, Millward Brown, South East Asia, Singapore Nidhi Varma Srivastava, Director, Millward Brown, India
Oxford University Press 2010

Chapter - 1 RETAILING: ROLE, RELEVANCE AND TRENDS

Oxford University Press 2010

What is retailing?
Retailing: a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use Retailer: a person, agent, agency, company or organization instrumental in reaching the goods, merchandise, or services to the ultimate consumer Countries that have enjoyed the greatest economic and social progress have been those with a strong retail sector Over the last decade there have been sweeping changes in the general retailing business
Oxford University Press 2010

Retail industry and economy


Retail business is the largest private industry Retail is ahead of finance and engineering and

contributes over 8 per cent of GDP in the western countries Over 50 of the Fortune 500 and about 25 of the Asian Top 200 companies are retailers Today, in some developed countries, retail businesses have shares as large as 40 per cent of the market The significance of the retail business has increased with the fast growth in the service sector

Oxford University Press 2010

Retail industry in India


Retail forecasts in India: - the business in India is expected to reach Rs. 25,000 billion in 2008 - growth of organized retailing in both food and non-food segments - proportion of sales through organized retailing estimated, increase by 8% in 2010 Emergence of organized retailing: -India to have over 700 shopping malls by 2015 (400 operational malls in 2010) - land developers rushing to cash in on the booming retail business
Oxford University Press 2010

Contd
50 million square feet of total mall space in India,

expected to sprout in six metros (Delhi and Mumbai) and seven non-metros in 2008 40 per cent of the total mall space to be concentrated in the National Capital Region

Oxford University Press 2010

Characteristics of retailing
Direct end-user interaction Sole point in the value chain to provide platform for

promotions Sales at the retail level is generally in smaller unit sizes Location is a critical factor for retail business Retail services are as important as core products A larger number of retail units as compared to other members present in the value chain
Oxford University Press 2010

Functions of retailing
Sorting Breaking bulk

Holding stock
Additional services Channel of communication

Transport and advertising functions

Oxford University Press 2010

Activities performed by retailers


Arrange for assortment of offerings
Breaking quantity Holding stock Extending services

Oxford University Press 2010

Categorizing retailers
Number of outlets

Margin vs Turnover
Location Size

Oxford University Press 2010

Trends in retail formats


Mom and Pop Stores and traditional kirana stores E-commerce

Department Stores
Discount Stores Category Killers

Specialty Stores
E-tailers
Oxford University Press 2010

Relationships between retailers and suppliers


The retail sector is critically dependent on its suppliers for

effective operation and the profitability of its business Several socio-economic and demographic factors are considered by manufacturers for identifying the ideal retail format mix for its products This is illustrated by the washing soap category in India and the resultant retail format preferences

Oxford University Press 2010

Retail format mix adopted by manufacturers for soaps


Soap is targeted towards women as they are the chief decision-makers in soap purchase. Medicated positioning like germ killing and anti-bacterial are marketed to families. About 75% of the soaps are bought through these following types of outlets. Kirana stores Pan-beedi shops Department stores
Oxford University Press 2010

Retail strategy
Define the business of the firm in terms of orientation

towards a particular sector Set short-term and long-term objectives with regard to image and profitability Identify the target market and direct efforts on the basis of the customers characteristics and needs Decide the broad direction the company must take in future Implement an integrated plan that encompasses all aspects of retailing like pricing, location, and channel decisions Evaluate and revise the plan depending on the nature of the internal and external environment
Oxford University Press 2010

Retail concepts
An essential part of the retailing strategy, the retailing concept is essentially a customer-centred, companywide approach to developing and implementing a marketing strategy. The retailing concept covers four broad areas: Customer orientation Goal orientation Value driven approach Coordinated effort
Oxford University Press 2010

The changing face of retailing


Role of the Internet

- Does the size of the retail organization play a big part in adapting easily to the Internet? - Is the product/service offering also a prime determinant of cyber retailing? Branding through retailers - How do retailers choose which brands to display? - Why do many new products fail in the marketplace - How can manufacturers maximize the brand opportunity in a given retail outlet? - What is future of Lifestyle Clustering? - Vertical retail concepts are increasing in popularity Consumption related mega trends
Oxford University Press 2010

Drivers of success in the retail sector


Customers are the driving force in change Re-evaluating the marketing plan

Advanced education for retailers is critical for growth


Strong visual recognition The workplace challenge

Planning for success

Oxford University Press 2010

Das könnte Ihnen auch gefallen