Slide 1

I am Responsible for My Financial Future.Created by Genevieve KincaideUniversity of HoustonITEC 1301 Intro to Computer Application TechnologyInstructor Natalia Fofanova

1Genevieve Kincaide1Background Information

My name is Genevieve Kincaide and I am a student at the University of Houston College of Technology. I am pursuing a Bachelor of Science in Consumer Science and Merchandising and plan to graduate in 2010. I plan to educate myself even further by going to school for my MBA in Marketing and follow with a PHD in Social Psychology. I also plan on taking some fashion classes at the Houston Community College. Right now I work at Space Center Houston. My career goal is to work in the fashion industry. After the work experience I would like to become an entrepreneur and run my own fashion business.3Genevieve Kincaide

3Background Information Cont. Doing so will take a lot of business and financial experience. Saving money can be very difficult especially if you are young, going to school, and working low end jobs. My cousin Kathryn Courville really inspired me to keep pursuing my fashion dream as did the rest of my family. My plan is to get all the girls in my family to participate in this venture so we can all be part of something special. Besides they all love fashion too! 4Genevieve Kincaide

4Left Picture: Girls in the family. Right picture: Cousin Kathryn Courville

The Family5Genevieve Kincaide

5Business Proposal My business proposal is to open an apparel boutique named Build your own Closet or My Closet. The concept is to literally build your own closet with staple pieces that every individual essentially needs. Any item in the store is purchasable including the hangers, racks, mannequins, furniture, antiques etc. The clothing is all basic solid clothing with accessories to build an outfit such as belts, shoes and bracelets. The store will be economically and environmentally friendly. Other amenities provided incorporate our own dry cleaning and tailoring services. The only promotion would consist of buying one outfit and receiving the second outfit half off attracting consumers. Of course if turn over is not doing well we would have more sales. The next two slides are some merchandise we would like to sell.6Genevieve Kincaide

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Some Labels7Genevieve Kincaide

7Other Items

8Genevieve Kincaide

8Consumer Science and Merchandising9Genevieve Kincaide

9Consumer Science and Merchandiseing Cont.10Genevieve Kincaide

Professor Shirley Ezells PowerPoint

10Fashion Business History and Industry NowHistoryhttp://www.youtube.com/watch?v=1F2uek4hDlENowhttp://www.ehow.com/video_6197964_fashion-industry.html11Genevieve Kincaide

11Business Entrepreneur and FinancialsExample of how to start your own businesshttp://www.entrepreneur.com/video/1812186069/playlist/1445018101/Learn about financehttp://www.entrepreneur.com/video/6743576001/playlist/1551132511/12Genevieve Kincaide

12Creditswww.google.comwww.ehow.comwww.entrepreneur.comProfessor Shirley Ezellwww.youtube.com

13Genevieve Kincaide

13The EndI hope you thoroughly enjoyed my presentation!

14Genevieve Kincaide

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Chapter 1: Introduction to the World of Retailing
HDCS 3303 Introduction to Merchandising Dr. Shirley Ezell

What is retailing?
Retailing is the set of business activities that adds value to the products and services sold to the consumers for their personal or family use.

What is retailing?A Retailers Role in Supply Chain
Retailers are the final business in a supply chain that links manufacturers to consumers.

Manufacturers make products and sell them to retailers or wholesalers. Wholesalers buy products from manufacturers and resell these products to retailers. Wholesalers satisfy retailers needs, while retailers direct their efforts to satisfying needs of ultimate consumers.

Some retail chains are both retailers and wholesalers. Theyre performing retailing activities when they sell to consumers and wholesaling activities when they sell to other businesses like building contractors or restaurant owners.

What is Retailing?

In some distribution channels, the manufacturing, wholesaling, and retailing activities are performed by independent firms. But most distribution channels have some vertical integration. Vertical integration means that a firm performs more than one level of activity in the channel.

For example, Kmart, Safeway, Wal-Mart, and Macys do both wholesaling and retailing activities.
A Retailers Role in a Supply Chain

What is retailing? Retailers Create Value

Retailers undertake business activities and perform functions that increase the value of the products and services they sell to consumers.

These Functions are: 1. Providing Assortments of Products/Services 2. Breaking Bulk 3. Holding Inventory 4. Providing Services

What is Retailing?

Offering an assortment enables customers to choose from a wide selection of brands, designs, sizes, colors, and prices in one location

All retailers offer assortments of products, but they specialize in the assortments they offer

Supermarkets provide assortments of food, health and beauty care and household products

Abercrombie & Fitch provides assortments of clothing and accessories
Providing Assortments
Functions Performed by Retailers

What is Retailing?

Breaking BulkTo reduce transportation costs, manufacturers and wholesalers typically ship cases/cartons of products to retailers. Retailers then offer the products in smaller quantities tailored to individual consumer's and households consumption patterns.

Holding InventoryA major function of retailers is to keep inventory so that products will be available when consumers want them, reducing consumers cost of storing products.
Functions performed by Retailers

What is Retailing?

Retailers provide services such as credit, product displays, staff & Websites to make it easier for customers to buy and use products

Functions performed by Retailers
Providing Services

Increasing the value of products and services
What is Retailing? Functions Performed by Retailers

Social and Economic Significance of Retailing
Retail Sales

US retail sales are over 4 trillion. These official statistics do not include retail sales of automobiles and repairs.

There are 1.9 million retail firms in the US. Most retail firms are not large businesses. Of the retail firms in the US, 95% of them have only one store. Less than 1% have more than 100 stores.

Employment

Retailing is one of the nation's largest industries in terms of employment. Twenty-four million people are employed in retailing, approximately 18% of the U.S. workforce.
Social and Economic Significance of Retailing?

Companies that sell a wide variety of merchandise through different retail formats, such as Wal-Mart & Sears Of the top 2004 global retailers, 36% are headquartered in the US, 36% in Europe, and 14% in Japan
Social and Economic Significance of Retailing?
Global Retailers
This list includes companies that sell a few categories of merchandise (McDonalds & Toys R Us)

Ten Largest Retailers Worldwide
Social and Economic Significance of Retailing

What is Retailing?

Structure of Retailing and Supply Chains around the World
The US distribution system has the greatest retail density with the greatest concentration of large retail firms. The combination of large stores and large firms results in a very efficient distribution system.

The Chinese and Indian supply chain system is characterized by small stores operated by relatively small firms and a large independent wholesale industry. This difference in efficiency results in a larger percentage of labor being employed in distribution and retailing than in the US.

What is Retailing?
Northern European retailing is similar to the US system. Southern European retailing is more fragmented across all sectors.

Factors have created differences in distribution systems including social and political objectives, geography, and market size.
Structure of Retailing and Supply Chains around the World

Opportunities in Retailing
Management Opportunities

Retailers employ people with expertise and interest in finance, accounting, human resource management, supply chain management, and computer systems as well as marketing.

A typical buyer in a department store earns $50,000- $60,000 per year. Senior buyers and store managers make $120,000- $160,000.

Retailing provides opportunities for people wishing to start their own business. Some of the worlds richest people are retailing entrepreneurs.

Examples are: Jeffrey Bezos (Amazon.com) Anita Roddick (The Body Shop) Ingvar Kamprad (IKEA)
Jeffrey Bezos
Anita Roddick
Ingvar Kamprad
Opportunities in RetailingEntrepreneurial Opportunities

Retail Management Decision Making Process
The retailing concept emphasizes that high-performance retailers must be strong competitors.They cant achieve high performance by simply satisfying customers needs They must also keep a close watch to ensure that competitors dont attract their customers.
The success of a small entrepreneurial retailer or a major retail corporation depends largely on how much it embraces the retailing concept
The retailing concept is a management orientation that focuses a retailer on determining its target markets needs and satisfying these needs more effectively and efficiently than its competitors

Retail Management Decision-Making Process
Understanding the World of Retailing
Retail managers need a good understanding of their environment, especially their customers and competition, before they can develop and implement effective strategies
The critical environmental factors in the world of retailing are
The Macro Environment: technological social and ethical/legal/political factors

The Micro Environment:competitors andcustomers

To appeal to a broader group of consumers and provide one-stop shopping, many retailers are increasing their variety of merchandise.

The offering of merchandise not typically associated with the store type is called Scrambled merchandise
A retailers primary competitors are those with the same format

Thus, department stores compete against other department stores and supermarkets compete with other supermarkets.

This competition between retailers with the same format is called Intratype Competition
Competition

between retailers

that sell similar

merchandise using

different formats,

such as discount and

department stores is

called

Intertype

Competition

Retail Management Decision-Making Process
Increasing intertype competition has made it harder for retailers to identify and monitor their competition

In one sense, all retailers compete against each other for the dollars consumers spend buying goods and services

Since convenience of location is important in store choice, a stores proximity to competitors is a critical factor in identifying competition
Management's view of competition also can differ, depending on the managers position within the retail firm

Retail Management Decision-Making Process
To develop and implement an effective strategy, retailers need to know why customers shop, how they select a store, and how they select among the stores merchandise.
CustomersRetailers need to respond to broad demographic and life-style trends in our society, such as the growth in the elderly and minority segments of the US population and the importance of shopping convenience to the rising number of two-income families.

Retail Management Decision Making Process
Developing a Retail Strategy The retail strategy indicates how the firm plans to focus its resources to accomplish its objectives. It identifies:(1) The target market toward which the retailer will direct its efforts

(2) The nature of the merchandise and services the retailers will offer to satisfy needs of the target market

(3) How the retailer will build a long-term advantage over competitors

Retail Management Decision-Making Process

The key strategic decision areas are determining a market strategy, financial, status, location, organizational and HR structure, information systems, supply chain organization, and customer relationship management strategies.

When major environmental changes occur, the current strategy and the reasoning behind it are re-examined.

The retailers market strategy must be consistent with the firms financial objectives. A retailers organizational design and HRM strategy are intimately related to its market strategy.
Strategic Decision Areas

Retail Management Decision-Making Process
JCPenney Moves from Main Street to the MallIn the late 1950s, Penney was one of the most profitable national retailers. Its target market was small towns. In its Main Street locations, Penney sold staple soft goods at low prices with friendly service. All sales were cash; the company didnt offer credit to it customers.Organizational structure was decentralizedIn spite of its success, there was a growing awareness among company executives that macroenvironmental trends would have a negative impact on the firm.In the early 1960s Penney undertook a new strategic direction that was consistent with changes it saw in the environment.

Retail Management Decision-Making Process
JCPenney Moves from Main Street to the MallAll new Penney stores were located in regional malls across the United States. Penney opened several mall locations in each metropolitan area to create significant presence in each market.

The firm began to offer credit to its customers and added new merchandise lines.

Penney made its organization structure more centralized.

To effectively control its 1,150 stores Penney installed a national communication network.

Retail Management Decision-Making Process
Implementing the Retail StrategyTo implement the retail strategy, management develops a retail mix that satisfies the needs of its target market better than its competitors.

Elements in the retail mix include the types of merchandise and services offered, merchandise pricing, advertising and promotional programs, store design, merchandise display, assistance to customers provided by the salespeople, and convenience of the stores location.

Retail Management Decision Making Process
Whole Foods Market: An Organic and Natural FoodSupermarket Chain

When John Mackey,founder and CEO of a Whole Foods Market, found that textbooks werent going to provide the answers he was looking for, he dropped out of college, lived in a vegetarian housing co-op, and worked in an Austin natural food store.

After he opened his own health-food store and restaurant, he teamed up with a local organic grocer to open the first Whole Foods which was an instant success.

About 200 Whole Foods stores carry a much broader assortment than typical natural and organic grocery stores.

IV. Retail Management Decision-Making Process
Whole Foods Market: An Organic and Natural Food Supermarket Chain

Whole Foods has a Fresh Shopper Rewards program to increase customer loyalty and reward its best customers.

The flower power of the 60s is reflected in Mackeys guiding management principles: love, trust, and employee empowerment.

Whole Foods thinks shopping should be fun, so its opening stores that synthesize health and pleasure.

Retail Management Decision-Making Process

Ethical standards and legal and public policy considerations guide management decisions

Retailers often use ethical standards to guide decision-making when confronting questionable situations not covered by the law

Careers in Retailing
Retailing offers exciting and challenging career opportunities. Few other industries grant as many responsibilities to young managers.

Retailing offers a variety of career paths such as buying, store management, sales promotion, advertising, personnel, training and HRM, operations/distribution, loss prevention, and finance in several different corporate forms such as department stores, specialty stores, food stores, and discount stores.
Starting salaries are competitive, and the compensation of top management ranks among the highest in any industry.

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