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RETAIL MANAGEMENT MBA


ď‚—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

MFGR

RETAIL

MFGR’S RESEARCH WHOLESALE

TODAY RETAIL'S RESEARCH

MFGR

CONSUMER 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 SALES

RETAIL PRODUCT CREATION / OFFER PROMOTION


2. MARKET ORIENTED COMPANY MARKETING RESEARCH RETAIL OFFER FORMULATION

RETAIL CHANNEL MANAGEMENT PROMOTION SALES


3. INTEGRATED COMPANY MARKETING RESEARCH

RETAIL CHAIN MANAGEMENT PRINCIPLES OF PROVIDING VALUE

PROMOTION

SALES


MANAGEMENT EXPERTISE NEEDED Finance Accounting H r m Logistics Computer systems Marketing Et al


ENTREPRENEURIAL

All large retail chains have

started very small Some of the world’s 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

RETURN OF THE SMALL STORE

FOCUS: PRODUCT OR CONSUMER

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 CS’s 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


1. SINGLE STORE ESTABLISHMENTS:

2. 3.

Sometimes they form themselves into groups CORPORATE RETAIL CHAINS: From a chain of 2 to 10,000 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. 127,000 crores

(2009-10) & Rs.159,000 crores (2010-11 Est)  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

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