MEANING

19-2
Retail is the sale of goods and services from
individuals or businesses to the end-user. Retailers
are part of an integrated system called the supply
chain. A retailer purchases goods or products in large
quantities from manufacturers directly or through a
wholesale, and then sells smaller quantities to
the consumer for a profit. Retailing can be done in
either fixed locations like stores or markets,door-to-
door or by delivery.
Organised VS Unorganised Retailing

19-3
OVERVIEW

19-4
10%- GDP
8%- EMPLOYMENT
95%- UNORGANISED REAILING
ORGANISED PENETRATION LEVEL
85%- US
80%- FRANCE
66%-JAPAN
20%- CHINA
5-6%- INDIA

Types by products

19-5
Food products typically require cold storage
facilities.
Hard goods or durable goods ("hard-line
retailers") appliances, electronics, furniture, sporting
goods, etc. Goods that do not quickly wear out and
provide utility over time.
Soft goods or consumables clothing, apparel,
and other fabrics. Goods that are consumed after one
use or have a limited period (typically under three
years) in which you may use them.

Types of retailers outlets

19-6
Department Store
Supermarkets
Warehouse retailers
Speciality Retailers
E-tailer
Convenience Retailer
Discount Retailer

Services Offered by Retailers

19-7
Three Basic Tasks of Retailing
LO 1
Selling Process in the Retail Environment

19-9
Prospecting
Approach
Sales presentation
Closing the sale
Suggestion selling
Customers Point Of View
19-
10
Self service
Self selection
Limited service
Full service

Worlds top retailers
19-
11
Wal-Mart
Kroget
Target
Walgreen
Costco
Home depot
CVS caremark
Lowes
Best buy


Indias top retailers
19-
12
Pantaloon retail
K Raheja group
Tata group
RPG group
Landmark group
Bharti wall mart
Reliance


Retail pricing
19-
13
Cost plus pricing
Suggested retail pricing

Transfer mechanism
19-
14
Counter price
Delivery
Order
Door to door
Self service
Digital delivery
BPO SERVICES For Retail Industry
19-
15
Facility
support
service
Customer
service
Reputation
mgt.
Retail
analytics
Market
expansion
Finance
and
accounting
Retail
Strategy
The main focus:
Bringing harmony between the controllable
variables and the uncontrollable ones.
Uncontrollable variables drive the controllable ones!
Developing an Overall Retail Strategy
Retail Marketing Mix:
Controllable Factors
Competition & Environment:
Uncontrollable Factors
Whats the
3
rd
element
of retail
Strategy?
Target
Market
Controllable
Variables

Store Location
Store Format & Layout
Merchandise Management
Pricing
Communications
Uncontrollable
Variables

Consumers
Competition
Technology
Economic Conditions
Seasonality
Legal Restrictions

19-
17
Composition of key elements
Place
Product
Price
Promotion
People
Process
Physical Environment


Key Element
Place (store location)
Target market
Channel structure
Channel management
Retailer image
Retail logistics
Retail distribution

Key element
Product (merchandise)
Product development
Product management
Product features and benefits
Branding
Packaging
After-sales services

Key element
Price
Costs
Profitability
Value for money
Competitiveness
Incentives
Quality
Status

Key element
Promotion
Developing promotional mixes
Advertising management
Sales promotion
Sales management
Public relations
Direct marketing

Key element
People element
Staff capability
Efficiency
Availability
Effectiveness
Customer interaction
Internal marketing

Key element
Process element
Order processing
Database management
Service delivery
Queuing system
Standardisation

19-
25
Customer Service
19-
26
The set of activities and programs undertaken by
retailers to make the shopping experience more
rewarding for their customers. These activities
increase the value customers receive from the
merchandise and service they purchase.
Strategic Advantage
Through Customer Service
19-
27
Good service keeps customers returning to a
retailer and generates positive word-of-mouth
communication, which attracts new customers
The challenge of providing consistent high-quality
service offers an opportunity for a retailers to
develop a sustainable competitive advantage
19-
28
Customer Service Strategies
Personalized Approach
Greater benefits to
customers
Greater inconsistency
Higher cost
Standardized Approach
Lower cost
High consistency
Meets but does not
exceed expectations
Personalized Approach
19-
29
Personalized Approach encourages service provider
to tailor the service to meet each customers personal needs.


Drawback: Service might be inconsistent
Customized service is costly


Standardization
19-
30
Standardization Approach is based on establishing a set
of rules and procedures and being sure that they are
implemented consistently.
Retailers that use this approach:
McDonalds
Wal-Mart
IKEA
Dollar General
Save-A-Lot
The McGraw-Hill Companies,
Inc./John Flournoy, photographer

Perceived Service
19-
31
Cues used to
assess service
Reliability
Assurance
Tangibility
Empathy
Responsiveness
Perceived Services evaluations are based on perception
Assessing Service Characteristics
19-
32
Reliability: accuracy of billing, meeting promised
delivery dates
Assurance (trust): guarantees and warranties, return
policies
Tangibility: appearance of store and salespeople
Empathy: personalized service, receipts of notes and
emails, recognition by name
Responsiveness: returning calls and emails, giving
prompt service
Challenges
19-
33
Depends on
economy
Industry
concentration
Seasonal cash
flow
Protecting
customer
information
Trend affect
demand
High worker
turnover
Auditing
Technology
Recent trends In 2013
19-
34
Better over bigger
Improved service
Voluntary data exchange
Home delivery
Organised crime and fraud
Selg service tech.
19-
36