Retailing

INTRODUCTION 2 RETAILING:

INTRODUCTION 2 RETAILING

Slide 2:

A set of business activities involved in selling goods and services to consumers for their personal, family, or household use. A retailer is a business that sells products and/or services to consumers for personal or family use.

Examples of Retailers . . .:

Examples of Retailers . . .

Retail Shops . . .:

Retail Shops . . .

The 10 Largest Retailers in the United States:

The 10 Largest Retailers in the United States Rank Company Main Emphasis 1 Wal-Mart Full-line discount stores, supercenters, membership clubs 2 Home Depot Home centers, design centers 3 Kroger Supermarkets, convenience stores, jewelry stores 4 Target Full-line discount stores, supercenters 5 Costco Membership clubs 6 Albertson’s Supermarkets, drugstores 7 Walgreens Drugstores 8 Lowe’s Home centers 9 Sears Department stores, specialty stores 10 Safeway Supermarkets

Retail Process:

Retail Process POS ERP Reports & Transactions

Retail formats in INDIA :

Retail formats in INDIA India is fifth most attractive emerging retail market: a potential goldmine. Indian retail is largest among all industries(200 billion $). 10% - India’s GDP. Growth rate – 20-25% 8% - employment Potentiality to grow 427 billion $ by 2010 and 637 billion $ by 2015.

Retail formats in INDIA :

Retail formats in INDIA Malls Specialty stores Discount stores Department stores Hyper marts / Super marts Convenience stores Multi brand outlets

Growth of Retail in INDIA :

INDUSTRY REVOLUTION Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. Growth of Retail in INDIA

Slide 12:

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers. Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume.

Manufacturer’s Perspective:

Manufacturer’s Perspective Retailers are part of the distribution channel

A Typical Channel of Distribution:

A Typical Channel of Distribution Manufacturer Wholesaler Final Consumer Retailer

The Retailer’s Role in the Sorting Process:

The Retailer’s Role in the Sorting Process

Distribution Types:

Distribution Types Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products Intensive: suppliers sell through as many retailers as possible Selective: suppliers sell through a moderate number of retailers

Multi-Channel Retailing:

Multi-Channel Retailing A retailer sells to consumers through multiple retail formats Web sites Physical stores

Retail Strategy:

Retail Strategy An overall plan for guiding a retail firm Influences the firm’s business activities Influences the firm’s response to market forces

Retail Strategy:

Retail Strategy

Six Steps in Strategic Planning:

Six Steps in Strategic Planning Define the type of business Set long-run and short-run objectives Determine the customer market Devise an overall, long-run plan Implement an integrated strategy 6. Evaluate and correct

“Pay Less + Expect More” at Target:

“Pay Less + Expect More ” at Target

Aspects of Target’s Strategy:

Aspects of Target’s Strategy Growth objectives Appeal to a prime market Distinctive image Focus Customer service Multiple points of contact Employee relations Innovation Commitment to technology Community involvement Monitoring performance

Applying the Retailing Concept:

Applying the Retailing Concept Customer Orientation Coordinated Effort Value Driven Goal Orientation Retailing Concept Retail Strategy

Eliminating Shopper’s Boredom:

Eliminating Shopper’s Boredom

Customer Service:

Customer Service Activities undertaken by a retailer with the basic goods and services Store hours Parking Shopper-friendliness Credit acceptance Salespeople

How Retailers Add Value . . .:

How Retailers Add Value . . . The value of the product and service increases as the retailer performs functions. Doll is developed at manufacturer Doll is developed in several styles Doll is offered in convenient locations in quantities of one Doll is featured on floor display Doll can be bought on credit or put on lay away

Retail Mix:

Retail Mix The combination of merchandise, assortment, price, promotion, customer service, and store layout that best serves the segments targeted by the retailer.

Types of Competition:

Types of Competition Intratype Competition Intertype Competition Divertive Competition

Intratype Competition:

Intratype Competition It occurs when two or more retailers of the same type, compete directly with each other for the same households.

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It occurs when two or more retailers of a different type, compete directly by attempting to sell the same merchandise lines to the same households. Intertype Competition

Divertive Competition:

It occurs when retailers intercept or divert customers from competing retailers. Divertive Competition

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The Retail Life Cycle Market share or profit Early growth Accelerated development Maturity Decline Value-retail stores On-line retailers Single-price stores Warehouse clubs Fast food outlets Convenience stores Supermarkets Department stores Catalog Retailers Malls (?) General store Factory outlet stores Profit Market share Single-brand stores

Future Changes in Retail:

Future Changes in Retail Nonstore Retailing New Retail Formats Integration of Technology Heightened Global Competition Increased use of Private Labels

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E-tailing Catalog Sales Direct Selling Non store Retailing

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Liquidators Recycled Merchandise Retailers Super centers New Retail Formats

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Creation of New Retail Formats Greater Diversity Increased Rate of Change Heightened Global Competition

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Customer Satisfaction Customer Management Supply Chain Management Integration of Technology

M.RAVISHANKAR MBA(AB) 2008-2010 Batch NIFTTEA KNITWEAR FASHION INSTITUTE TIRUPUR:

M.RAVISHANKAR MBA(AB) 2008-2010 Batch NIFTTEA KNITWEAR FASHION INSTITUTE TIRUPUR Oxygen024@gmail.com

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