RETAIL MANAGEMENT

TYBMS

Evolution of Retail in India

Indian Retail has evolved into a major growth opportunity

Retail Management

Definitions of Retailing
Retail is any business that directs it marketing efforts towards satisfying the final consumer based upon the organisation of selling goods and services as a means of distribution. - David Gilbert Retailing is sale of goods and services to the ultimate consumers for personal, family or household use. -Paul Brittain In simple words Retail means Sale of goods or commodities in small quantities directly to customers.

ROLE OF RETAILER IN DISTRIBUTION CHANNEL

Producer

Wholesaler

Retailer

Customer

Distribution Channel

Channel Levels Consumer goods marketing channels

Functions of Retailer
Providing an assortment of products and services
Breaking bulk Holding inventory Providing additional services Increase the value of products and services

Advertising functions

CONCERNS FOR THE RETAILER TO SURVIVE

Traffic building
Layout

Product presentation Right products to the customers

Location

Customer satisfaction

Attempt to success

Technological advancement

FACTORS AFFECTING GROWTH OF RETAIL SECTOR IN INDIA

Increasing role of media

Rising incomes High standard of living

Change in consumption pattern and consumer behaviour

Improvement in infrastructure
Entry to various sources of financing

Foreign retailers/ globalisation Customer proximity Private labels

Challenges a Global Retailer would face in India

Emergence of new markets Empowered consumer Technology enabled efficiencies Rise of E-age

GROWTH STORY OF INDIAS MODERN RETAIL SECTORS

Multi format retailing on the rise Big bazaar D mart Growth in tier II and tier III cities 68% organised retail in tier I cities Mysore , nashik etc tier II cities Consolidation Mergers

Interactive marketing Promotional tools Ads, FM, sample

Virtual shopping Electronic & mobile retailing www.gadgets .com online

Multi service retail store Eg: couriers, airlines beauty parlous, banks, gaming zones, visual entertainment.
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Lifestyle retailing International brands offered to local market. Eg: Mc donals ,woodland etc

Internationalization of Indian retail Huge size of Indian market spreading at international. Eg: Aditya Birla Group & pantaloons

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CASE STUDY

Pratap Kapoors wild dining format is unique and one of its kind in Mumbai. Advertised as a jungle theme restaurant, it is named as the Sher Baug. Wild dining is more of an amusement park than dining space with all the facilities which can delight a family. It delivers its promises through robotic animals and a stimulated thunderstorm, features that would delight children. It gives a feeling of living in the wild for the urbanities and gives them a break from the typical fancy restaurants.
Mr. Pratap was planning to convert his venture into a franchise format with opening of outlets in all metro cities in India. However, he is not sure of the salability of this kind of retail format in the Indian context . The critics of his venture say that for adults who put the food over the experience of eating in an artificial jungle, the wild dining restaurant is not all that dun. Also the cost incurred in setting-up the format is a point of concern?

Questions:
What is wild dinings offering and target market? Acc to you, will this kind of dining format succeed in India? Why? Explain Many retailers have tried to make their stores more entertaining. What are the pros and cons of providing entertainment in a retail store or restaurant?

Retailers Profile

Introduction
Categories of retailer

Retail Formats

Ownership Structure

Store based retailing

Non- Store Retailer

Retail Organization

Service Retailer

Single Ownership

Corporate Chains

Franchising

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Store retailer
In store retailers, retail transactions are done through face to face interaction between retailer and consumer.

Operates from fixed point of sale location

Extensive displays and use of mass media advertising Also provides after sale services.

Store retailers are further classified into:

Sole Retailer Specialty Store Department store Super Market Convenience Store Discount Store Factory Outlets
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Non- Store Retailer

Non store retailer sell to customers in the absence of a retail store (direct selling), some times interaction between two entities take place without face to face interaction (Internet, TV, Mail, catalogue).
Non-Store retailers are further classified into: Direct selling Online Shopping Mall Telemarketing Television shopping

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Retail Organisation
Corporate Chains Retailer co operatives Franchising

Service Retailing
Self-service Retailing Full service retailing Self Selection retailing

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Ownership Structure
Single Ownership Corporate Chains

Franchising
Leased Department

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STORE DESIGN

Retail Store Design

Store design and layout tells a customer what the store is all about and it is very strong tool in the hands of the retailer for communicating and creating the image of the store in the mind of the customers.

The design and layout of the store are a means of communicating the image of the retail store.
The environment which is created in the retail store, is a combination of the exterior look of the store, the store interiors, the atmosphere in the store and the events, promotions and the themes.

Store Design Elements

Layouts Signage and Graphics

Feature Area

Exterior Store Design & Interior Design

Exterior Location Parking Ease of access The building architecture Health and safety standards Store windows, lighting Interior Fixtures Flooring & Ceilings Lighting Graphics & Signages

Store Layout

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Objectives of store layout:

Get customers into the store (market image). Convert them into customers buying merchandise once inside the store (space productivity).

Do this in the most efficient manner possible.

Store Layout Considerations

High margin items should be placed in high traffic areas. High demand items should be placed in low traffic areas. Complementary items should be placed near each other. Seasonal needs should be considered. Larger departments should be placed in lower traffic areas. Shopping behavior and operational considerations should be recognized.
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TYPES OF LAYOUT

Grid Layout
Grid layout has parallel aisles with merchandise on shelves on both side of the aisles Cash registers are located at the entrances/exits of the stores Easy to locate merchandise Cost-efficient Most supermarkets and full-line discount stores use the grid layout Limitation Does not encourage customers to explore store

Racetrack Layout (Loop)

Loop with a major aisle that has access to departments Draws customers around the store Provide different viewing angles and encourage exploration, impulse buying Used in department stores

Free-From Layout
Fixtures and aisles arranged asymmetrically Provides an intimate, relaxing environment that facilitates shopping and browsing

Fixture Types
Wall Fixtures
To make stores wall merchandisable, wall usually covered with a skin that is fitted with vertical columns of notches similar to those on a gondola, into which a variety of hardware can be inserted

Fixture Types
Straight Rack long pipe suspended with supports to the floor or attached to a wall Gondola large base with a vertical spine or wall fitted with sockets or notches into which a variety of shelves, peghooks, bins, baskets and other hardware can be inserted. Four-way Fixture two crossbars that sit perpendicular to each other on a pedestal Round Rack round fixture that sits on pedestal Other common fixtures: tables, large bins, flat-based decks

Spine Layout
THE ADVANTAGE TO THE RETAILER IS THAT THE LAYOUT CAN USE THE BENEFITS OF FREE FLOW, GRID AND LOOP SYSTEMS APPROPRIATE.

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Graphics can reinforce a stores image

Category Signage identifies types of products and located near the goods Promotional Signage relates to specific offers sometimes in windows Point-of-sale Signage near merchandise with prices and product information

Digital Signage
More effective in attracting the attention of customer

helping customers recall the messages displayed

Provides appealing atmosphere Overcomes time-tomessage hurdle Eliminates costs

Feature areas
Areas within a store designed to get the customers attention Feature areas
Windows Entrances Freestanding displays End caps Promotional aisles Walls Dressing rooms Cash wraps (POP counters, checkout areas)

VISUAL MERCHANDISING

Visual merchandising
Can be termed as the orderly, systematic, logical and intelligent way of putting stock on the floor
VM is the art of presentation, which puts the merchandise in focus. It educates the customers, creates desire and finally augments the selling process.

Visual Merchandising
Fixtures
A. Straight rack B. Rounder (bulk fixture, capacity fixture) C. Four-way fixture (feature fixture) D. Gondolas

Visual Merchandising
Presentation Techniques
Idea-Oriented Presentation Item and size Presentation Color Organization Price Lining Vertical Merchandising Tonnage Merchandising Frontal Presentation

Lighting Color Music Scent

Store Atmosphere

Creating an Appealing Store Atmosphere

Examples of Visual Merchandising

Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.

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Examples of Visual Merchandising

Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.

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Multi Channel Retailing

Introduction
The retail market is changing and becoming ever more competitive and complex. MCR is all about giving the customer a choice of which shopping channel he or she wishes to purchase products through.

MCR uses more than once channel to reach the customers.

MCR is not just about exploiting technology to open new channels to market. Store and catalog retailer are evolving into MCR for gaining valuable insights into their customers shopping behavior.

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Types of Channel

Store Channel
Browsing Touching and feeling products Personal Service Cash Payment Immediate gratification Risk Reduction Entertainment and Social Experience

Catalog Channel
Convenience Safety Quality and Visual Presentation

Internet Channel
Broader Selection More information to evaluate merchandise Personalization

Multi-Channel Retailing

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Need of multi channel retailing

Multichannel retailing helps to: Grow market share Wide coverage Increase customer base Increase in revenue and profit Achieve cost reductions through economies of scale Reduce cycle time between order and delivery Improve demand planning
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Challenges in Multi Channel Retailing

Integration
Evaluation of alternate channel Resistance to change Lack of IT infrastructure Mode of Payment Difficulty in integrating supply chain Inventory Mismanagement Bad forecasting