Retail Intro1

8/8/2019 Retail Intro1

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INTRODUCTION UNIT-1


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DEFINITION

According to Philip Koltler:

Retailing includes all the activities involved in

selling goods or services to the final consumersfor personal , non-business use. A retailer or

retail store is any business enterprise whose

sale volume comes primarily from retailing.


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CHARACTERISTIC OF RETAILER

Retailers sell small quantities of items infrequent basis

Retailers attempt to provide convenience in

terms of location, payment and credit facilities ,range of merchandise, after sales service , etc.

Retailers offer selection

The retailers interface with the customers is

predominately service based, often with socialinteraction and interpersonal sale techniquesmasking the sophistication of computer-basedordering ,stocking and transaction system.


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Retailers set up in business to trade with the

general public

They normally charge higher prices than would

a wholesaler. They use various pricing policies

The retailers bear the different kind of risk to

the manufacturers and the wholesaler.


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FUNCTIONS OF RETAILER

Customers

point of

view

Form utility

Time utilityOwnership

utility

Place utility


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Task Retail marketing function

1. Identifying the customer s needs and

buying patterns for a stores retail offer.

2. Analyzing marketing opportunities.

3. Translating needs into products

(assortments and store layouts).

4. Determining the retail products value to

the customer at different seasonal

periods.

5. Making the product available.

6. Informing and motivating the customer.

Marketing research and EPOS data mining.

Analyzing and selection of target markets

(segmentation) and understanding

buyer/supplier relationships.

Retail product planning and formulation as

well as merchandise and stock management.

Pricing policy-management to provide value .

Establish distribution outlets, inventory

systems, location analysis.

Promotion signage and in-store display.


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Transactional Marketing Relationship Marketing

1. short-term orientation

2. Me oriented

3. Focus on result of a sale as the is the end

of the process.

4. Emphasis on persuasion to buy5. Need to win , manipulation

6. Stress on conflict inherent in achieving a

transaction.

1. Long term orientation.

2. we oriented

3. Focus on retention and repeat sales

4. Stress on creating positive relationships

5. Providing trust and service6. Partnership and co-operative to minimize

defection and provide longer-term

relationship.


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8

THE RETAILERS ROLE IN THE

SORTING PROCESS


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FACTORS AFFECTING RETAILING

Socio

economic

environment

Behaviors of

consumers

State of

technology

Legal and

ethical system

Behaviour of

channel

Behaviour ofcompetition


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FACTORS AFFECTING THE GROWING

IMPORTANCE

Large and increasing contribution to GDP

Economic importance more visible

Major employer

Retailers as gatekeepers

Retailers diversifying their activities

Organizations growing on a international scale

Size of operations allowing for supply chain control Blurring of areas of retail to include wider area of

business activity


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THE MARKETING-RETAIL EQUATION

Manufacturer Manufacturer Manufacturer

Wholesaler

Retailer

Consumer

Wholesaler

Consumer Consumer


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RETAIL STRATEGIES :

1. RIGHT POSITIONING.

2. EFFECTIVE VISUAL

COMMUNICATION3. STRONG SUPPLY CHAIN

4. CHANGING THE PERCEPTION


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SPECIAL CHARACTERISTICS

AFFECTING RETAILERS

Retailers

Strategy

Small

Average

Sale

Impulse

Purchase

Popularity

of

Stores


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RETAIL MARKETING STRATEGY

Develop the Seven Ps

Define & Sele tT r et M rketKey T sksKey T sks

ininStr te iStr te iRet ilinRet ilin


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DEFINING A TARGET MARKET

S EP 1:

Segment the ar et

Demographics

Geographics

Psychographics


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CHOOSING THE RETAILING MIX

S EP 2:Choose theRetailing ix

Product

Price

Promotion

Place

Personnel

Presentation


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CHALLENGES AND OPPORTUNITIES

Store over saturation

Increasing consolidation and shakeouts

Marketing to smaller niches Rapid Globalization

Increased Demand for value and service

Database-Driven Marketing Use of technology


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HIDDEN CHALLENGES :

Retail differentiation:

Significant losses/ damage during shipping

Customer insight, allocation and assortment

techniques.

Customer experience, value vs price

,aspiration, innovation, accessibility of

suppliers brand.


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GROWTH OPPORTUNITIES


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DRIVERS OF RETAIL CHANGE IN INDIA

Socio-economic factors

Changing income profiles

The changing role of women and the evolvingfamily structure.

The changing consumption basket

Increased credit friendliness Geographical dispersion of market potential


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TRENDS IN GLOBAL RETAILING

Social responsibility Global consumer growth

Commoditisation run amok

Rise of long tail retailing The fight to plant the flag in India

Retail investments in services

Emerging market investment in developedretailers

Multi-channel integration


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PANTALOON MULTI FORMAT

APPROACH :

Hyper market

Super market

Specialty store

Mall

Online retailing

Retail Intro1

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Transcript of Retail Intro1