BRANDING A

RETAIL STORE
THERE ARE 2 EASY WAYS OF
LOOSING MONEY . ONE CAN GAMBLE
OR EASIER WAY IS GETTING INTO
RETAILING WITHOUT KNOWING
ABOUT IT .
RETAILING
ANY FIRM THAT SELLS A PRODUCT OR PROVIDES A SERVICE TO
FINAL CONSUMER IS SAID TO BE PERFORMING A RETAILING
FUNCTION .

WHETHER A FIRM SELLS TO CONSUMER,
1.IN A STORE
2.OVER TELEPHONE
3. THROUGH MAIL
4. THROUGH INTERNET
5. THROUGH A VENDING MACHINE
6. DOOR TO DOOR

THAT FIRM IS INVOLVED IN RETAILING

SELLING OF SERVICES TO FINAL CONSUMER IS ALSO RETAILING
E.G. BANKS, MOVIE THEATRES, MEDICAL AND DENTAL CLINICS,
BARBER SHOPS, HEALTH CLUBS FALL UNDER RETAILING .

RETAILING IN INDIA ( 2013 )
TOTAL OUTLETS : 1.4 CRORES (ONLY 4% OF THEM ARE MORE THAN
500 SQ. FT), 1/3 IN URBAN AND 2/3 IN RURAL
AREAS .

GROWTH: 20% PER ANNUM

VALUE: US $ 500 BILLION (Rs. 30 LAKH CRORES)

CONTRIBUTION TO GDP: 15%

ORGANIZED AND UNORGANIZED RETAIL: 6:94
ORGANIZED SECTOR IS GROWING AT 35% PER ANNUM AND
UNORGANIZED SECTOR 6% PER ANNUM

INDIAN RETAIL :
HIGHEST NO. OF OUTLETS / PERSON - 7 / 1000
LOWEST RETAIL SPACE / PERSON - 2 SQ. FT. / PERSON

PROFIT MARGINS
IN INDIA , A SUPERMARKET WOULD
MAKE A MARGIN OF 18-19%.THE 3
BIGGEST COST COMPONENTS RENT ,
MANPOWER AND ENERGY WOULD
ADD UPTO 15-16%.

THIS MEANS THE WAFER THIN PROFIT
MARGIN IS NOT LARGE ENOUGH TO
SUSTAIN BUSINESS OR STORE IS
LOSING MONEY.
WORLDS BIGGEST SHOPLIFTERS
INDIAN RETAIL INDUSTRY HAS TOPPED THE
GLOBAL RETAIL THEFT BAROMETER SURVEY FOR
2011 CONDUCTED BY THE CENTRE FOR RETAIL
RESEARCH IN NOTTINGHAM , UNITED KINGDOM.

INDIA HAS TOPPED THE RETAIL SHRINKAGE RATE
( REDUCTION IN INVENTORY DUE TO SHOPLIFTING,
THEFT AND PROCESS FAILURES ) IN 43
COUNTRIES SURVEYED ACROSS THE WORLD FOR
THE 5 TH YEAR IN A ROW.

WORLDS BIGGEST SHOPLIFTERS
RETAILERS IN INDIA HAVE THE HIGHEST SHRINKAGE
RATE AT 2.38% OF SALES ( DOWN FROM 2010
REPORT WHEN IT STOOD AT 2.72%). SECOND
HIGHEST SHRINKAGE RATE WAS OF RUSSIA - 1.74%.
USA HAD SHRINKAGE RATE OF 1.59% ( 10 TH ).

THE INDIAN RETAIL SECTOR LOST ROUGHLY RS. 4,000
CRORES DUE TO SHOPLIFTING AND THEFT DURING
2010-11.
TYPICAL CUSTOMER BEHAVIOUR
EVEN TODAY WHEN ONE BUYS
VEGETABLES WHICH ARE NOT PACKED , A
SIGNIFICANT NUMBER OF LADIES FINGERS
ARE MUTILATED AND LEFT BEHIND. IT IS
BASED ON ASSUMPTION THAT ONLY
THOSE WHOSE TIPS SNAP AWAY SHARPLY
ARE TENDER AND WORTH BUYING.
CUSTOMERS PURCHASING FURNITURE IN
MANY CASES TEND TO KNOCK ON THE
WOODEN SURFACE AS IF IT IS AN OCCULT
MATERIAL THAT WOULD YIELD UP
SECRETS.
CUSTOMERS RESERVE THE RIGHT TO ASSUME
EARLY DAYS OF CORPORATE RETAIL WERE ALSO THE
EARLY DAYS OF MOBILES. RPG FOODWORLD HAD TIED UP
WITH A MOBILE COMPANY TO GIVE A HANDSET FREE AS A
PART OF CONTEST.IT CREATED LOT OF EXCITEMENT. ONE
ELDERLY LADY WAS HOPEFUL OF WINNING THE PHONE AND
ASK STORE MANAGER EVERYTIME SHE CAME TO STORE IF
THE CONTEST WAS OVER. SHE CLAMED THAT GOD HAD
TOLD HER THAT SHE WAS GOING TO GET THE PHONE.

THE CONTEST WAS OVER AND WINNER WAS ANNOUNCED
WHO WAS NOT THE ELDERLY LADY. SAME DAY ELDERLY
LADY WALKED UP TO MANAGER AND ASKED WHEN SHE
COULD GET THE PHONE. MANAGER TOLD HER THAT
SOMEONE ELSE HAD WON. THE CUSTOMER BECAME
ABUSIVE AND MADE A GESTURE OF SPITTING TO SHOW HER
DISGUST.
CUSTOMERS RESERVE THE RIGHT TO ASSUME
THE STORE MANAGER UNDERSTOOD THAT SHE WAS MORE
THAN DISAPPOINTED CUSTOMER. HE APOLOGISED TO HER
FOR HER DISAPPOINTMENT AND GENTLY ASKED HER WHY
SHE WAS UPSET. THE LADY BROKE DOWN AND TOLD HER
STORY.HER HUSBAND WAS CRITICALLY ILL AND THEY HAD
APPLIED FOR A LANDLINE PHONE WHICH WAS GETTING
DELAYED.WHEN SHE HEARD OF A CONTEST, IT WAS LIKE A
SIGN FROM GOD AND SHE STARTED BELIEVING THAT IF SHE
WON THE PHONE,THEY COULD GET MEDICAL HELP
WHENEVER THEY WANTED AND HER HUSBAND WOULD GET
WELL.

FREEBIES
DIFFERENT KINDS OF FREEBIES ARE MORE
IMPORTANT FOR DIFFERENT CATEGORIES.

eg:-

IN A PARTICULAR STORE PEOPLE WERE HAPPY TO
GET A SMALL PLASTIC CONTAINER FREE ALONG
WITH A DETERGENT PACKET. SIMILARLY WHEN
SUGAR WAS OFFERED FREE WITH RICE BAGS THE
IMPACT WAS GREAT BUT WHEN FLOUR PACKETS
WERE GIVEN FREE ,CUSTOMERS GAVE IT THUMBS
DOWN.

MANUFACTURERS VS RETAILERS
1. SALES

2. INFORMATION

3. PROFESSIONALISM

4. LOCAL MARKETING

5. PRIVATE BRANDS
MANUFACTURERS VS RETAILERS
1. SALES : BIGGEST MANUFACTURERS MAY FORM FEW % OF A
RETAILERS SALES. ON CONTRARY 1 RETAILER MAY COUNT
FOR 25 % TO 50 % OF A MANUFACTURERS SALES.

2. INFORMATION : RETAILER HAS MORE AND CURRENT
INFORMATION THAN MANUFACTURER BECAUSE HE HAS
VARIOUS BRANDS OF MANUFACTURERS AND HAS
INTERACTION WITH DIFFERENT MANUFACTURERS.

3. PROFESSIONALISM : JUST LIKE MANUFACTURERS, RETAILERS
ARE ALSO BECOMING PROFESSIONAL.

4. LOCAL MARKETING : A RETAILER IS MORE CLOSER TO
CONSUMER AND THAT IS WHY HE CAN ADAPT MORE EASILY TO
LOCAL MARKETING AS COMPARED TO MANUFACTURER.

5. PRIVATE BRANDS : SINCE RETAILER HAS FULL CONTROL OF
ACTIVITIES INSIDE THE STORE, THE SHARE OF PRIVATE
BRANDS WILL INCREASE IN FUTURE. RETAILER CAN DECIDE
HOW TO BRING PRIVATE BRAND TO ATTENTION OF CONSUMER.
RETAIL BRAND CIRCLE
(RETAIL BRAND IDENTITY)
1. BRAND POSITIONING
2. BRAND PERSONALITY
3. BRAND COMMUNICATION
BRAND POSITIONING
IT IS BASICALLY ABOUT TANGIBLE (FUNCTIONAL) BENEFITS.
IT IS WHAT A RETAIL BRAND HAS TO OFFER CONSUMER ?

DIFFERENT WAYS OF BRAND POSITIONING IN RETAIL ARE :-

1. POSITIONING ON RANGE
2. POSITIONING ON SPEED
3. POSITIONING ON PRICE
4. POSITIONING ON SERVICE
5. POSITIONING ON IDEOLOGY



POSITIONING ON RANGE
A) SELECTION BRANDS

B) BRAND MIX BRANDS

C) PRODUCT MIX BRANDS

D) TARGET GROUP BRANDS

CASE STUDY
AMAZON- SELECTION BRAND
SELECTION BRANDS
THEY DIFFERENTIATE THEMSELVES BY GIVING DEEP OFFERINGS
WITHIN ONE CATEGORY .

CASE STUDY : AMAZON.COM
FOUNDED : 1994
COUNTRY OF ORIGIN : USA
REVENUE (2012) : US $ 61 BILLION ( 3.60 LAKH CRORES+)
FOUNDER : JEFF BEZOS
USPS :
a) MOST ASSORTMENTS OF BOOKS .
b) SEGREGATION ACCORDING TO LEADERSHIP, SELF
HELP, MARKETING ETC .
c) TELLS ABOUT BOOKS RELEASED IN LAST 30 DAYS, LAST
90 DAYS .
d) GIVES RATINGS TO BOOKS ACCORDING TO CUSTOMERS
REVIEWS .
e) GIVES DATA ON SIMILAR, COMPARABLE BOOKS.
f) ONE CAN GO THROUGH CONTENTS OF SOME BOOKS.
g) GIVES INFORMATION ON BESTSELLERS.
BRANDS MIX BRANDS
IT OFFERS CONSUMER A UNIQUE COMBINATION OF PRIVATE AND
MANUFACTURER BRANDS .

ADVANTAGES OF MANUFACTURERS BRANDS

1. CREATING STORE TRAFFIC
STRONG MANUFACTURER BRANDS CREATE STORED
TRAFFIC .

2. A STRONG QUALITATIVE APPEAL
A STORE THAT SELLS ONLY MANUFACTURER BRANDS
WILL HAVE DIFFERENT APPEAL THAN STORE HAVING ONLY
PRIVATE LABELS .

3. PRICE BENCHMARK
A RETAILER CAN DECIDE ON PRICE OF PRIVATE LABELS
ACCORDING TO PRICE OF MANUFACTURER BRANDS.
PRIVATE LABEL PRICE COULD BE LOWER OR HIGHER AS
COMPARED TO MANUFACTURER BRANDS. HERE
MANUFACTURER BRANDS PRICE ACTS AS BENCHMARK.
BRAND MIX BRANDS



ADVANTAGES OF PRIVATE BRANDS

1. MORE DIFFERENTIATION
FASHION RETAILERS ZARA, GAP HAVE BUILT STRONG
BRANDS PARTLY BECAUSE OF PRIVATE LABELS.

2. HIGHER MARGIN
ACCORDING TO COO OF SHOPPERS STOP MR. SALIL NAIR,
PROFITS FROM PRIVATE LABELS IS DOUBLE THAN THAT
OF MANUFACTURERS BRANDS .

3. CONTROL OVER PRICE
RETAILER CAN DETERMINE SALES PRICE OF PRIVATE
LABELS AND NOT PRICE OF MANUFACTURERS BRANDS.
PRODUCT MIX BRANDS
HERE RETAILER MIXES DIVERSE PRODUCTS.


1. A NEW YORK RETAILER SELLS TEA AND PERFUMES IN A STORE.


2. A LONDON RETAILER SELLS CHOCOLATES AND FLOWERS IN A
STORE .


3. A BELGIAN SUPER MARKET SELLS CARS .
TARGET GROUP BRANDS

1. IN LONDON ONE CAN FIND A SHOP CALLED
ANYTHING LEFT-HANDED A LEFT HANDED
STORE WHICH SELLS EVERYTHING FOR LEFT
HANDED PEOPLE.


2. IN INDIA, THERE IS aLL , A LITTLE LARGER
WHICH IS A PLUS SIZED STORE .
POSITIONING ON SPEED

HAVE YOU HEARD FAST FOOD ?
WHAT ABOUT FAST FASHION ?
CASE STUDY
ZARA- POSITIONING ON
SPEED
POSITIONING ON SPEED

FOUNDED : 1975

COUNTRY OF ORIGIN : SPAIN

REVENUE (2011) : RS. 1.02 LAKH CRORES

PRODUCTS : CLOTHING

NO. OF STORES : AROUND 1659, IN 60 COUNTRIES







METHOD OF OPERATION
ZARA WAS DESCRIBED BY LV FASHION
DIRECTOR DANIEL PIETTE THE MOST
INNOVATIVE AND DESTRUCTIVE
RETAILER IN THE WORLD .
METHOD OF OPERATION
ZARA RIDES ON 2 WINNING RETAIL
TRENDS. IT OFFERS FASHIONABLE
CLOTHES AT LOW PRICES.

IT ALMOST SELLS LIKE VEGETABLES
OR BREAD , OFFERING NEW CLOTHES
EVERY 2 WEEKS AGAINST INDUSTRY
STANDARD OF 6 MONTHS.
STRATEGIES
1. INSTEAD OF MORE QTY. PER STYLE IT PRODUCES LESS QTY. AND
MORE STYLES. BY REDUCING QUANTITY PER STYLE, ZARA
CREATES ARTIFICIAL SCARCITY .
2. OWNERSHIP OF PRODUCTION : IT PRODUCES HALF OF ITS
COLLECTION.
3. IT HAS 250 DESIGNERS ,USUALLY RECENT GRADUATES OF TOP
DESIGN SCHOOLS WHO MAKE AROUND 12000 DESIGNS PER YEAR .
4. AT MANY FASHION STORES AROUND 50 % OF STOCK IS MARKED
DOWN, BUT AT ZARA BECAUSE OF FAST FASHION MARKED DOWN
PRICING IS FOR 10 TO 15 % OF TOTAL STOCK.
5. FAST SECOND STRATEGY : IT IS VERY STRONG IN MARKET
RESEARCH. ITS TEAM GATHERS INFORMATION BY VISITING
CATWALK SHOWS OF FAMOUS DESIGNERS, DISCOS AND
UNIVERSITY CAMPUSES .
INDITEX WHICH OWNS ZARA IS CONSTANTLY ALLEGED OF
KNOCKING OF RANGES OF TOP DESIGNERS THUS SPENDING
LESS ON PRODUCT DEVELOPMENT AND DESIGN .
6. ZARA BUYS UNCOLOURED FABRIC IN ADVANCE AND COLOURS
UP ACCORDING TO SEASONAL NEED.

CAN ZARA SUCCEED IN INDIA ?
1. ZARA EXISTS IN A MARKET (EUROPE) WHERE FASHION IS A FACT
OF LIFE .

2. LARGE POPULATION OF CONSUMERS CAN AFFORD TO CHANGE
WARDROBE WITH CHANGING STYLES IN EUROPE .

3. INDIAN READY TO WEAR MARKET IS DOMINATED BY MENSWEAR
WHICH HAS A LONGER FASHION CYCLE THAN WOMENWEAR .

MOST CONSUMERS ARE WILLING TO WAIT SEVERAL MONTHS
FOR OFF SEASON SALES .
CAN ZARA SUCCEED IN INDIA ?
ZARA ENTERED INDIA IN 2009. IN 2012-
2013 ITS ANNUAL SALES WAS RS. 405
CRORES , EACH OF ITS 9 STORES
MAKING RS. 45 CRORES ON AN
AVERAGE , A LITTLE HIGHER THAN
COUNTRYS LARGEST DEPARTMENTAL
CHAIN SHOPPERS STOP.
POSITIONING ON PRICE
A) LOW PRICE BRANDS

B) ONE PRICE BRANDS

C) LUXURY BRANDS
LOW PRICE BRANDS
IT IS TOUGH TO COMPETE ON LOWER PRICES, BECAUSE OTHER
RETAIL BRANDS CAN LOWER THE PRICES FURTHER .

A RETAIL BRAND CAN CHARGE LOWER PRICES IF IT HAS LOWER
COSTS .
E.G. WALMART

ONE PRICE BRANDS
SOME STORES KEEP LIMITED PRICE POINT / S IN THEIR SHOP.
STORES CAN HAVE $1, $2, $3, $5 PRICES FOR THEIR PRODUCTS.
E.G. DOLLAR GENERAL WHICH HAS AROUND 8000 STORES IN USA
HAS FOLLOWING CRUCIAL FACTORS WHICH CONTRIBUTE FOR ITS
SUCCESS .
1. ACCEPTS ONLY CASH .
2. KEEPS LIMITED PRICE POINTS (17) .
3. KEEPS PREDOMINANTLY PRIVATE LABELS.
4. IT DOESNT ADVERTISE REGULARLY EXCEPT AT TIME OF
OPENING A NEW STORE .
5. IT SIGNS LOW RENT AND SHORT TERM LEASES.
6. IT LOCATES STORES AS CLOSE AS POSSIBLE TO DISTRIBUTION
CENTRES .
7. IT USES ONLY BASIC TECHNOLOGIES TO BOOST OPERATIONAL
EFFICIENCY .

LUXURY BRANDS
UNLIKE NORMAL BRANDS, ITS DEMAND INCREASES WHEN PRICE
INCREASES.

E.G. LVMH, GUCCI, ARMANI, TIFFANY

TIFFANY SELLS DIAMOND ENGAGEMENT RING PRICED UPTO US$13
LAKHS (RS. 6 CRORES) .

CASE STUDY
PUBLIX- POSITIONING
ON SERVICE
POSITIONING ON SERVICE

FOUNDED : 1930
COUNTRY OF ORIGIN : USA
SALES (2012) : RS. 1,62,000 CRORES +
TYPE : SUPERMARKET
NO. OF STORES : 1072
USA EMPLOYEES : 1, 58,000
SLOGAN : WHERE SHOPPING IS A PLEASURE








POSITIONING ON SERVICE
KEY FACTS
1. PUBLIX IS EMPLOYEE OWNED AND THERE IS PROFIT SHARING
AND HAS BEEN RECOGNIZED AS ONE OF 100 BEST COMPANIES TO
WORK FOR SINCE 1985 (LAST 25 YEARS+) .
2. MOST OF SENIOR MANAGEMENT EMPLOYEES STARTED OUT
FROM BASIC OPERATIONS.
3. IT GIVES GURANTEE WE WILL NEVER KNOWINGLY DISAPPOINT
YOU. IF FOR ANY REASON YOUR PURCHASE DOESNT GIVE YOU
COMPLETE SATISFACTION THE FULL PURCHASE PRICE WILL BE
CHEERFULLY REFUNDED IMMEDIATELY UPON REQUEST.
4. PUBLIC BAGGERS TAKE GROCERIES TO SHOPPERS CARS .
5. IF A ITEM IS NOT AVAILABLE IN STORES , THEY WILL CALL YOU
TO LET YOU KNOW WHEN IT COMES IN .
6. PUBLIX SELLS QUARTER CAKES, HALF CAKES WHICH ARE
ACCORDING TO CUSTOMER NEEDS.
7. WHEN FOOD PRICES STARTED TO RISE COMPANY REDUCED
PRICES BY 20 % ON ESSENTIALS LIKE BREAD AND MILK .
8. DURING TOUGH TIMES THEY DID NOT LAYOFF EMPLOYEES.
9. PHILANTHROPY : PUBLIX SUPPORTS NATIONAL CHARITIES .









POSITIONING ON IDEOLOGY
E.G. BODYSHOP WHOSE MISSION IS

TO DEDICATE OUR BUSINESS IN PERSUIT OF SOCIAL AND
ENVIRONMENTAL CHANGE. TO PASSIONATELY CAMPAIGN FOR
PROTECTION OF ENVIRONMENT, HUMAN RIGHTS AND AGAINST
ANIMAL TESTING WITHIN COSMETICS INDUSTRY .


IT HAS BEEN STRONGLY ASSOCIATED WITH ISSUES RELATING TO
NON -VIOLENCE AGAINST WOMEN , NO CUTTING OF TREES , SAVE
THE SHARKS ETC.







BRAND PERSONALITY
A RETAIL BRAND HAS TO BE MORE THAN A BRAND POSITIONING
IT IS BASICALLY ABOUT INTANGIBLE (EMOTIONAL) BENEFITS.
IT IS WHO IS RETAIL BRAND ?
STRONG RETAIL BRANDS OFFER CONSUMERS BOTH FUNCTIONAL
AND EMOTIONAL BENEFITS.

COPYING A BRAND PERSONALITY OF ANOTHER RETAIL BRAND IS
MUCH MORE DIFFICULT THAN COPYING A POSITIONING .
SOMETIMES PERSON IS BRAND AND PERSONALITY OF THAT
PERSON IS PERSONALITY OF THAT BRAND.
IF VIRGIN IS FUN, INNOVATIVE BECAUSE ITS FOUNDER RICHARD
BRANSON IS LIKE THAT.

DIFFERENT PERSONALITIES OF DIFFERENT BRANDS ARE :

1. TAJ HOTELS - SINCERE
2. STARBUCKS - WARM, FRIENDLY, OUTGOING
3. PIZZA-HUT - FUN, FRIENDLY
4. McDONALD - COMPETENT
5. TARGET - SOPHISTICATED
6. ZARA - YOUNG, TRENDY, FASHIONABLE










BRAND COMMUNICATION
COMMUNICATION OBJECTIVES




CREATING STORE TRAFFIC




IMPROVING SPEND PER
CUSTOMER




STRENGTHENING THE BOND




COMMUNICATION TOOLS




ADVERTISING
DIRECT MARKETING
STORE DESIGN (EXTERIOR)


STORE DESIGN (INTERIOR)
DIRECT MARKETING
VISUAL MERCHANDISING



EMPLOYEES
DIRECT MARKETING




OUT OF STORE COMMUNICATION


1. ADVERTISING


2. DIRECT MARKETING


RETAIL ADVERTISING
ADVERTISING PLAYS A LESS DOMINANT ROLE IN RETAIL AS
COMPARED TO MANUFACTURER BRAND .

e.g.-

1. STARBUCKS BECAME SUCCESFUL WITHOUT ADVERTISING .

2. ZARA SPENDS 0.3 % OF TOTAL SALES ON ADVERTISING AS
COMPARED TO 3% LIKE OTHER FASHION RETAILERS.
ALMOST ONCE IN 2 WEEKS IT HAS NEW CLOTHES IN STORES AND
ONLY OPENS STORES IN THE BEST LOCATIONS. THAT IS
ADVERTISING FOR ZARA.
DIFFERENCE BETWEEN RETAIL AND
MANUFACTURER ADVERTISING
1. FREQUENCY OF ADVERTISING
RETAILER ADVERTISES LESS AS COMPARED TO
MANUFACTURERS .

2. PURPOSE OF ADVERTISISNG
THE MOST IMPORTANT OBJECTIVE OF RETAIL
ADVERTISING IS TO CREATE STORE TRAFFIC. RETAILERS
DO IT BY ADVERTISING SPECIAL OFFERS.

3. LOCAL APPROACH
RETAILER HAS TO TAKE LOCAL APPROACH WHILE
MANUFACTURER HAS TO CATER TO ENTIRE NATION .

4. BUDGET FOR ADVERTISING
PROFIT MARGINS OF RETAILERS ARE SMALL AND HENCE
HIS BUDGET IS ALSO SMALL THAT IS WHY HE HAS TO
SPEND MONEY CAREFULLY AND CREATIVELY .
DIRECT MARKETING
1. DIRECT MAIL
THIS REFERS TO COMMUNICATION SENT TO CUSTOMERS
BY USING POSTAL SERVICES. THIS INCLUDES SENDING
LETTERS, CATALOGUES, CDS, AUDIOTAPES ETC

2. EMAIL

3. FAX

4. TELEMARKETING

5. KIOSK MARKETING
KIOSK IS A SMALL STRUCTURE THAT MIGHT SELL
PRODUCTS .NORMALLY IT IS USED FOR SELLING
WATCHES, JEWELLERY ETC. THIS TERM ALSO COVERS
VENDING MACHINES SEEN AT DIFFERENT PLACES.

INSTORE COMMUNICATION
1. STORE DESIGN

2. VISUAL MERCHANDISING

3. EMPLOYEES


STORE DESIGN
STORE DESIGN OF RETAIL BRAND IS COMPARABLE TO PACKAGING OF
A MANUFACTURER BRAND .


TOUCH POINTS OF STORE DESIGN FUNCTIONS

EXTERIOR ATTRACTING CUSTOMERS .

INTERIOR COMMUNICATING BRAND
PERSONALITY .

LIGHTING DRAMATIZING
MERCHANDISE .

LAYOUT NAVIGATING THROUGH
THE STORE .

FIXTURES SHOWING THE
MERCHANDISE .


EXTERIOR OF STORE DESIGN
ITS MOST IMPORTANT FUNCTION IS TO ATTRACT CUSTOMERS .

A SURVEY DONE IN USA PROVED THAT TRAFFIC JUMPED 23% IN
STORES USING DIGITAL SIGNAGE AS COMPARED TO STORES
WHO DID NOT USE SIGNAGE .

STORE EXTERIOR HAS SAME EFFECT AS SOMEONES LOOKS. THE
FIRST IMPRESSION CONSUMERS GET OF STORE GIVES THEM
POSITIVE OR NEGATIVE FEELING .
INTERIOR OF STORE DESIGN
ITS FUNCTION IS TO COMMUNICATE BRAND PERSONALITY .


A SMOOTH WOODEN FLOOR COMMUNICATES A DIFFERENT
BRAND PERSONALITY .

AT BARNES AND NOBLE, BEST SELLERS AND SPECIAL OFFER
BOOKS ARE PRESENTED CLOSE TO ENTRANCE.
LIGHTING
IT IS FOR DRAMATISING THE MERCHANDISE .



A RETAIL BRAND THAT POSITIONS ITSELF ON PRICE
SHOULD CHOOSE BRIGHT, WHITE LIGHTING .
LAYOUT
AISLENESS

IT IS % OF STORE OCCUPIED BY PRODUCTS, FIXTURES
AND STAFF .

HIGHER THE AISLENESS , MORE CROWDED THE STORE
AND SLOWER THE SHOPPERS SPEND THEIR MONEY .



IT IS FOR NAVIGATING THROUGH THE STORE .

FIXTURES
IT IS USED FOR SHOWING THE MERCHANDISE .

IDEAL STORE SHOULD HAVE FOLLOWING DIMENSIONS FOR
FIXTURES .

MAXIMUM HEIGHT OF 8.5 FEET .
LENGTH PREFERABALY 15 TO 20 FEET .

VISUAL MERCHANDISING
IT IS SILENT SALESPERSON .

WHY V.M.

1. DIFFERENTIATION
UNIQUE V.M. HELPS A STORE TO DIFFERENTIATE ITSELF
FROM COMPETITORS. MAJORITY OF SALES IN RETAIL
ARE IMPULSE PURCHASES AND HENCE V.M. PLAYS A
BIG ROLE.

2. COMPLEMENTING SALES EMPLOYEE
SALES EMPLOYEE CAN SELL FASTER IF V.M. IS UNIQUE .

3. REPLACING SALES EMPLOYEE
IN RETAIL WAGES MAKEUP ABOUT HALF OF THE TOTAL
COSTS. FEWER THE SALES EMPLOYEES, A LOT OF
ATTENTION NEEDS TO BE PAID TO V.M.

METHODS OF PRESENTATION IN
VISUAL MERCHANDISING
1. PRESENTATION BY COLOUR

2. PRESENTATION BY SIZE

3. PRESENTATION BY STYLE

4. PRESENTATION BY TARGET GROUP

5. PRESENTATION BY END USE
EMPLOYEES
MILLIONS SPENT ON ADVERTISING, DIRECT MARKETING,
STORE DESIGN AND VISUAL MERCHANDISING WILL BE
WASTE IF CONSUMER HAS A BAD EXPERIENCE WITH AN
EMPLOYEE.

FACTORS CONSUMERS SEE IN EMPLOYEES
1. AVAILABILITY
2. APPEARANCE
3. EAGERNESS
4. EXPERTISE
5. FRIENDLINES
RETAILERS AND SHARE OF PRIVATE BRANDS
RETAILERS
WALMART
TESCO
SPENCERS
SHOPPERS STOP
PANTALOON
RELIANCE


SHARE
40%
50%
10%
20%
75%
80%
FUTURE TRENDS IN RETAILING
1. ONLY STRONG RETAIL BRANDS WILL SURVIVE .

2. EACH RETAIL SECTOR WILL BE DOMINATED BY 2 OR 3
BRANDS.

3. POWER WILL SHIFT FROM MANUFACTURERS TO
RETAILERS.

4. NEWCOMERS WILL CHANGE THE RULES .

5. SPEED WILL BE IMPORTANT DRIVER FOR RETAIL SUCCESS.

6. THERE WILL BE FURTHER GROWTH OF PRIVATE BRANDS .