Retailing
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Transcript of Retailing
1
EXCELLENCE IN RETAILING
2
What’s Retailing All About?
• It’s about reaching out to consumers first hand!!
– Through Formats that differentiate offerings to suit customer needs to fulfill them every time
– Through formats that (one or a combination) provide true shopping value
3
What’s Retailing All About?
• It’s about efficiently providing a vehicle
for mediation with the customers.
– With the right merchandise at the right
place in the right quantities at the right price
at the right time.
4
Evolution of Retailing in India
• Emergence of Channels of Distribution
• Retailing & its Evolution
– From Shanties (temporary sheds) to Professional Retailing
– Agrarianism to Industrialization to Mature Markets to Global Competitiveness
5
From Evolution to Revolution
• It’s not just the evolution of retailing in India.
• It’s a revolution.– To get the customer’s heart-share and
not even the mind-share.
6
Retail Formats
7
Formats of Physical Store Retailing
• Formats by Size
• Departmental Stores / Super Markets
• Bazaar or Discount Formats
• Specialty Formats
• Category Killer Formats
Large Formats
8
Formats of Physical Store Retailing
• Stop Over Formats
• Kiosks & Dispensing Formats
Small Formats
9
Conglomerates
• Malls
• Hyper Markets
• Plazas
• Bulk Marts
• Warehouse Formats
10
Characteristics of Retail Formats
• Store Image
• Location
• Service Type
• Merchandising Mix
• Presentation
11
Key Attributes in Customer Satisfaction
• Merchandise Assortment / Selection
• Merchandise Quality
• Pricing
• Locational Convenience
• Customer Service
12
The Retail Environment (Macro)
• The Composition of Retail Environment
• Factors Governing & Influencing Retail
Environment
– Political Factors (WTO)
– Economic Factors (FDI)
• Retailing & its Industry Status in India
13
The Retail Environment Model (Micro)
Staff Space
Stock
Customer
14
• Customer focused not Real Estate
focused
• Facilities & Concessionaries
• Differentiate to Niche Retailing
• Concept Retailing
Current Retail Trends
15
• Store Image, Type and Density
• Store Space Planning
• Store Circulation
Store OperationsStore Planning
16
60%
15%
25% Selling
Circulation
Back Areas
Area Mix
17
• Free Flow
• Grid
• Race Track
• Herringbone
• Spine
The Circulation Plan – The “Silent Guide”
18
• Store Location
Strategy
High Street
Destination
Mall Partners
• Determinants of Store LocationAccessibilitySurroundings &
catchment profileAvailability Facilities
Store Location
19
Functions of Store Operations
Planning
Organizing
Co-ordinating
Implementing
Controlling
Role of Store Operations
20
• Licenses & Permissions
• Legal Compliance
• Routine Administration
Administrative Process
21
• Sales Planning
• Personal Selling
Cross Selling
Upselling
• Sales Reports
Sales Process
22
• Cashiering System Sequence
• Customer Check Out Strategy
• Cashier’s Role
Cashiering Process
23
• Customer Service Vision & Strategy
• Customer Service Standards Determination
• Benchmarking
• MOT & Expectation Analysis
Customer Service Process
24
• Staffing & Scheduling
• Grooming
• Floor Meeting
• Training
• Performance Management
• Personal Development
HR & Welfare Process
25
• House Keeping
• Security
• Maintenance
Facilities & Concessions Management Process
26
• Key Successful
Parameters
Space Oriented
Stock Oriented
Staff Oriented
Customer Oriented
• Parameters Analysis, Conclusions, Decisions & Actions
(What Should Be Those For In & Out?)
Store Operating Parameters
27
• Customer Segmentation
• Range Structure
• Merchandise Hierarchy & Merchandise Planning
Buying & MerchandisingCreating the Merchandising & Buying
Vision
28
• What is Buying & Merchandising
• Significance of Buying & Merchandising
• Sourcing & Vendor Management
• Trends & Forecasting Techniques
Principles of Buying & Merchandising
29
• Category Vision
• Category Definition
• Category Scorecard
• Category Review
• Category Functions
Category Management
30
• Merchandise & Assortment Planning
• Micro-merchandising
• Line Presentation
• Replenishment Planning
Designing Merchandising Working Practices
31
• OTB
• Mark Down Planning
• Planogram (Sample sheet integrating
base stock, fixture mapping, etc.)
Designing Merchandising Working Practices
32
• Existing Measures of Performance
Store wise Performance (Stocks,
Space, Sales)
Partner Performance & Assessment
Dealer
Alliance Partner
Determining Key Performance Indicators (KPIs)
33
• Connect’s Ownership
• Business Manager
Business Estimates and Achievement
• Operations Manager
Category / Processes Ownership
• Trainer
RCC’s Role
34
• Contribution of Technology to Retail Process
Speed, Accuracy
Data in required form for decision making
Customer satisfaction through Technology
The Role of Technology in Retailing
35
• Business Needs to Drive Technology Requirements, not otherwise
• Deploy Instore Technologies for Customer Convenience
Customer – Technology Adopters
• Deploy Technology for Speed, Accuracy & Total Customer Satisfaction
Retail Technology Implementation Factors
36
• Review Technology Performance
• Innovate & Deploy New Technologies to
Stay Ahead of Competition
• Technology Scalability
Retail Technology Implementation Factors (contd..)
37
SERVICE MANAGEMENT
RETAIL STORES
38
DISCIPLINE OF MARKET LEADERS
• Product Leadership
• Operational Excellence
• Customer Intimacy
Service Quality --- Why?
39
• Intangibility
• Inseparability
• Heterogeneity
• Perishability
• Ownership
Characteristics of Service
40
• Services are things a company does / offers its customers
• Service is how well a company does / offers what it does / offers to its customers
Service Vs. Services
41
• Product
• Price
• Promotion
• Place
• People in Services
• Physical Evidence in Services
• Process in Services
Services Marketing Mix Beyond The Four P’s
42
The Service Triangle
People Service Strategy
Systems
Customer
43
• Putting people
behind products and
services
• Treating customers
with respect,
individuality and
personal attention
What is Customer Service?
44
• The Customer is the Business’s Biggest Asset
• The Customer pays all salaries, wages and
dividends
• The Customer will go where s/he receives the
best attention
• You must be your customer’s best choice ! !
Obsession With Customer
45
• Not necessarily those who pay but all those whom we serve
Who Is Our Customer?
• Paying Customer
• Colleagues
• Wife
• Parents
• Neighbors
• Boss
• Subordinates
• Children
• Relatives
• Environment
• Fellow Human Beings
46
The Spirit of Service
Is an attitude based on certain values & beliefs about people, life and
work, that leads a person to willingly serve others and take pride in
his or her work.
47
• People’s Skills
• Product
• Presentation
• Process
4 P’s Which Shape Customer’s Decision to Buy
48
• Dependability (Did the service provider do what
was promised?)
• Responsiveness (Was the service provided in a
timely manner?)
• Authority (Did the service provider elicit a
feeling of confidence in the customer during the
service delivery process?)
Five Universal Dimensions of Service Process Quality
49
• Empathy (Was the service provider able to take the
customer’s point of view?)
• Tangible Evidence (Was evidence left that the
service was indeed performed?)
Five Universal Dimensions of Service Process Quality
50
• Friendliness
• Understanding
• Fairness
• Control
• Options & Alternatives
• Information
Six Basic Customer Needs
51
Bad Service v/s Good Service
My ExpectationsMy Treatment
My Treatment
Is less thanWhen
When exceeds
My Expectations This
=
Good Service
This
=
Bad Service
GOOD SERVICE IS GIVING CUSTOMERS A LITTLE MORE THAN WHAT THEY EXPECT
52
• The best service companies have a passion for service excellence!!
• Providers of service excellence do it with energy and enthusiasm
• Excellent service is a win-win experience!!
• In today’s competitive market place the customer decides who wins and who loses
Excellent Service = Enjoying Giving People Little More Than They Expect
Excellent Service
53
Define the Customer’s “Moments of Truth”
Moments of Magic Moments of Misery
Moments of Truth
54
The Customer is Respected
And Understood
And treated Genuinely
The foundations are laid for Quality Service
When what is communicated at Moments of Truth is that:
Moments of Truth & Service Quality
55
Perceived Value =Services X Service-----------------------
Price
Expectations & Perceived Value
56
IMPORTANCE OF COMPLAINTSGives us another chance of improve our service
Doing the job right the first
time
Effective Complaint Handling
+ =
Increased Customer
Satisfaction & Brand Loyalty
Handling Customer Complaints
57
Do not return anger for anger
Avoid fuelling the anger
Keep control of the situation
Be quiet and listen
Do not make excuses
Managing Yourself
58
Recognize the customer’s feelings
Probe
Solve problem
Soothe problem
Apologise whenever required
Managing Yourself
59
• Attention
• Interest
• Desire
• Conviction
• Action
Stage of Selling
60
• Pre-approach
• Approach
• Identifying wants & needs
• Presenting the Product or Service
Steps of Sale
61
• Answering questions and objections
• Suggestion Selling
• Closing the Sale
• Post Sale Services
Steps of Sale
62
• Zone of Recommendation
• Zone of Normality
• Zone of Tolerance
• Zone of Rejection
Four Zones of Customer Influence
63
• When you are serving a customer, you are on stage, so…..
• Are your dressed for the part?
• Do you know your lines?
• Do you understand the play?
You Are On Stage