RETAIL MANAGEMENT

MBA

Retailing consists of the final activity

and steps needed to place merchandise, made elsewhere in to the hands of the consumer or to provide services to the consumer

 > 10% of the global labor force is in Retail Every living individual is a customer

Largest single industry in most nations

In essence a Retailer is a service provider Change is the driving force behind Retail

 The harmful effects of large distant retail centers

which increased owing to car ownership, is now an issue of political public policy discussions The industry is economically significant Retail is an important social institution. 30% on what we spend is on retail products and services It is a sophisticated user of modern technology

TRADITIONAL
MFGRS RESEARCH

MFGR

RETAIL

WHOLESALE

CONSUMER

TODAY
RETAIL'S RESEARCH

MFGR

RETAIL

CONSUMER

 Large multiple chains

Own brands Big employer (65% female; 50% part time)

R o c e 10% to 40%
International operations Shapes consumer demand Services included

 Convenience of Location Goods range Credit After sales

Sales with service Customer is public

Simplistic pricing
Different risk type

1. PRODUCT ORIENTED COMPANY

RETAIL CHANNEL MANAGEMENT RETAIL PRODUCT CREATION / OFFER PROMOTION

SALES

2. MARKET ORIENTED COMPANY

MARKETING RESEARCH
RETAIL OFFER FORMULATION

RETAIL CHANNEL MANAGEMENT

PROMOTION
SALES

3. INTEGRATED COMPANY
MARKETING RESEARCH
RETAIL CHAIN MANAGEMENT

PROMOTION

PRINCIPLES OF PROVIDING VALUE

SALES

MANAGEMENT EXPERTISE NEEDED Finance Accounting Hrm Logistics Computer systems Marketing Et al

ENTREPRENEURIAL

All large retail chains have started

very small Some of the worlds richest people are retail entrepreneurs

ANALYTICAL METHOD Finding and investigating facts Summarizing and synthesizing these facts Decisions on models and retail phenomena theories Standardized set of procedures, guidelines and success formulae is the result

CREATIVE METHOD Use of insight, intuition and implicit knowledge in place of facts Novel way at problem solving Cannot be a permanent long-term way

TWO PRONGED APPROACH Adopting both approaches most likely to be successful Necessary in all fields of retailing

FOUR MAJOR ORIENTATIONS 1. Environmental 2. Management planning 3. Profit 4. Decision making

* DEMOGRAPHIC * LIFE STYLE

* PSYCHOGRAPHIC * ECO INFLUENCES

TECHNOLOGY
* AUTOMOBILES * J i T DELIVERY * MICROWAVES * INTERNET

COMPETITION
* CHANNEL OPTIONS * RETAIL TYPES * RETAIL NATURE

INTRA TYPE: Competition between the same type of retailers INTER TYPE: Retailers selling similar products using different formats

1. Provide specialized assortment 2. Provide services

3. Break bulk
4. Hold inventory

High-priced merchandise top range store

Low-priced merchandise high-value store

Trading-up mid-priced merchandise mid-range store

LOW PRICE LOW EXPENSES LOW STATUS COMPETITOR

RESTRICTED SERVICES LIMITED PRODUCT MIX MODEST ATMOSPHERE

ENTRY STAGE

SUCCESS ACCEPTANCE

IMPROVED FACILITIES
ENHANCED SERVICES NEW PRODUCT LINES IMPROVED PRODUCT LINES

TRADING UP

MATURITY INABILITY TO ADAPT

RETURN RATE DOWN

GAP IN THE WHEEL NEW ENTRY

VULNERABILITY

GENERAL RETAILER ENTRY

DIVERSIFY FOR GROWTH

FOCUS: PRODUCT OR CONSUMER

RETURN OF THE SMALL STORE

BACK TO SPECIALIZATION

CASH FLOW

TIME

CONVENTIONAL SUPER MARKET: Self Service Food Store with limited non food items High-low pricing strategy Everyday low pricing SUPER STORE: (20,000 to 50,000 sq ft) Large CSs with expanded service in bakery, seafood and non food items SUPER CENTER: (150,000 to 200,000 sq ft) with 30% Food and 70% Non Food items

HYPER MARKET: (100,000 to 300,000 sq ft) 70% Food and 30 % general goods WAREHOUSE CLUB: (100,000 to 150,000 sq ft) Limited assortment, service, display, credit CONVENIENCE STORE: (2 to 3,000 sq ft) Limited assortment, speedy check out

 DISCOUNT STORE: Broad variety, limited

service, low prices SPECIALTY STORE: (8,000 sq ft) Limited but complementary merchandise, high service level CATEGORY SPECIALIST: Narrow but deep assortment, low prices, self service HOME IMPROVEMENT CENTER: Category Specialist offering DIY equipment

 Electronic Retailing Direct Mail & Catalog Retailing

Direct Selling
T V Home Shopping Vend Machine Etc.

1. SINGLE STORE ESTABLISHMENTS:

Sometimes they form themselves into groups 2. CORPORATE RETAIL CHAINS: From a chain of 2 to 10,000 3. FRANCHISING: Assorted formats

 VARIETY: The number of different merchandise

categories within a store (Breadth) ASSORTMENT: The number of different items in a merchandise category (Depth) STOCK KEEPING UNIT: Each different item of merchandise SCRAMBLED MERCHANDISE: Products which are not typically representative of that type of store in which they are sold

 Overall response rate Average purchase amount (By location,

gender etc) Volumes by product categories Revenues generated by mailing lists

1. 2. 3. 4. 5. 6. 7.

Develop Brand Customize Provide pictures and other info (Speed?) Reduce number of clicks needed Provide best possible on-site search engine Capitalize customer info Integrate Online and Offline

8.
9. 10. 11. 12.

13.

Look for partnering opportunities Save data Indicate shipping charges clearly Clear delivery options Take care of stock-outs State return and privacy policies

 ORGANIZED SECTOR Rs. 100,000 crores

5% of total country retailing Growing at about 30% y-o-y GDP contribution still small Own brands trend just started

Large houses have entered