2 Course Objectives Explain What is Retail Management Describe the Benefits of RetailingExplain the Retail Selling ProcessExplain the Classification of RetailersExplain the Components of Retailing ConceptExplain the Steps of Retail Strategy PlanningExplain What is FranchisingExplain What is MerchandisingExplain What is Visual MerchandisingDescribe the Importance of Location in RetailingExplain the Types of Retail LocationExplain What is a Private LabelExplain the Process of Creation of Private LabelList the Myths about Careers in RetailingList the Tips for Success in Retailing
3 IntroductionLook at the logos of some of the leading organizations across the world.What do you think is common among the companies shown?All the companies whose logos have been shown are ‘retailers’.
4 IntroductionThus, each one of the companies shown sells directly to the final consumers.They also render services that are incidental to the sale of such goods.All these retailers are establishments that are engaged in selling merchandise for personal or household consumption.
5 IntroductionLet us look at the various aspects of retail management in detail.Therefore, like any business, it is very important to manage a retail business and its various components.In fact, the retail industry is one of the fastest growing and biggest sources of employment across the globe.
6 Definition Retailing Retailer Wholesaling Wholesaler Now, let us look at a few definitions that will be useful while you study retail management.The word ‘Retailing’ is derived from the French verb ‘retailer’, which means, "to cut a piece off.” Retailing is defined as all business activities that are involved in selling goods or services directly to the final consumers for their personal, family or household and non-business use.Whereas, from a marketers point of view, retailing is defined as a set of marketing activities that are designed to provide satisfaction to the end consumer and profitably maintain the customer base by continuous quality improvements across all areas concerned with selling goods and services.RetailingRetailerWholesalingWholesaler
7 What is Retail Management? Retailing includes all business activities involved in selling goods and services to end consumers for their personal, family, or household use. Therefore, the process of management of any retailing business is known as ‘Retail Management’. Thus, ‘Retail Management’ is the process of managing of a retail business which includes all its aspects of set-up, operations, maintenance etc.
8 Role of Retailer in Channel of Distribution ManufacturerWholesalerRetailerFinal Consumer
9 Benefits of Retailing Benefits to Customers Breaking Bulk : One of the major benefits that retailers pass on to their customers is through their activity of ‘breaking bulk’. This is because retailers buy goods in bulk from manufactures. They then divide the bulk goods into smaller saleable units as per the consumption patterns of the end consumer.Benefits of Retailing to Customers:For consumers or customers, the retailers act as buying agents. Retailers perform various activities that increase the value of goods and services that are then ultimately sold to the end consumer. The various activities performed by the retailers that ultimately benefit the customers are as follows:Breaking BulkProviding AssortmentHolding InventoryProviding ServicesProviding InformationLet us look at each activity in detail.
10 Providing Assortment: Real Life ExampleProviding Assortment:Retailers evaluate the products of various manufacturers; they then choose and offer the best assorted collection of products depending on the tastes and needs of their target customers. Hence, consumers get a wide range of products and prices to choose from as per his/her choice. Therefore, the offered variety in assortment makes the buying process easier for customers.
11 External Environment Affecting Retailing 3Technological EnvironmentTechnological Environment:One of the major factors that drive change in the retail industry is ‘Technology’. Across the globe, the manner in which retailing is carried out has changed drastically due to the computerization of various retail store operations through the advent of computers, MIS etc. Technology is now being used in the retail industry as a means to improve the shopping environment and to provide a pleasant shopping experience to the customer.
12 Retail Marketing Mix Retail Marketing Mix The following are the components that make up the ‘Retail Marketing Mix’:Customer ServicePeoplePresentationProductRetail Marketing MixPromotionPricePlace
13 Classification of Retailers Amount of ServiceRetailers can be classified based on the ‘amount of service’ they offer to their customers. Hence, based on the amount of service offered to customers, retailers can be such as follows:Self-serviceRetailersLimited-service Retailers:In such retail stores, the customers are offered limited service rather than a completely self-serving mode. Such retail stores are such as discount stores, most department stores etc.Limited-serviceRetailersLimited-serviceRetailersFull-serviceRetailers
14 Classification of Retailers Organizational ApproachRetailers can be classified based on the ‘organizational approach’ they choose for their business. Hence, based on the organizational approach, retailers can be such as follows:Corporate Chain StoresVoluntary ChainsRetailer Cooperatives:These stores are operated by groups of independent retailers who buy in bulk.Retailer CooperativesRetailer CooperativesFranchise OrganizationsMerchandising Conglomerates
15 Components of Retailing Concept One of the key components of the retailing concept is ‘customer orientation’. A retailer always determines the attributes and needs of its customers. He then endeavors to take action in order to satisfy these needs of his customers.Customer OrientationCoordinated EffortA retailer must always make a coordinated effort to succeed. Hence, a retailer integrates all his plans and activities to maximize efficiency.Retailing ConceptOne of the primary things that a retailer should aim to offer to his customers is a ‘good value proposition. Hence, a retailer must offer good value to the customers, through ‘appropriate pricing’ for goods and customer service.Value-drivenGoal OrientedA retailer should always set goals and then use strategy to attain them.
16 Store-based Retail Strategy Mix Non-store Based Retail Strategy Mix Classification of Retail InstitutionsThe given flowchart shows the classification of retail institutions:OwnershipStore-based Retail Strategy MixNon-store Based Retail Strategy MixOwnership:IndependentChainFranchiseLeased DepartmentVertical Marketing SystemConsumer CooperativeStore-based Retail Strategy Mix:Convenience StoreConventional & Food-based SupermarketBox (limited line) StoreWarehouse StoreSpecialty StoreVariety StoreTraditional & Full-line Department StoreOff-price ChainFactory OutletFlea(louse) MarketNon-store Based Retail Strategy Mix & Non-traditional Retailing:Direct MarketingDirect SellingVending MachineWorld Wide Web (WWW)
17 Real Life ExampleLet us now understand how the concept of franchising works through SUBWAY® Restaurants.SUBWAY® Restaurants were started way back in 1965 by a seventeen-year-old Fred DeLuca.Fred DeLuca had just completed his high school and he aspired to become a medical doctor.
18 What is SKU? SKU is an acronym for Stock Keeping Unit. SKU is a unique numerical identifying number.This unique number refers to a specific stock item in a retailer's inventory or product catalog.
19 Retail Life CycleThe given image shows the ‘Retail Life Cycle’ of any retail establishment.
20 Importance of Location in Retailing Location decides and influences the merchandise mix and interior layout of the store based on the locality and neighbors surrounding the store.Hence, vice versa, the choice of the location of the store also depends on the target audience and kind of merchandise to be sold.It is important to keep in mind that once the store comes into existence, it is very difficult to change the location as changing the location of a store may result in loss of customer and employees.
21 In certain cases, a store may belong to a wholesale buying group. Private LabelThis wholesale buying group may own labels, which are made available to the members of the group.Controlled labels can be used by the retailer belonging to that wholesale group.Hence, this whole-sale owned labels are referred to as controlled labels.In certain cases, a store may belong to a wholesale buying group.
22 ManagementStudyGuide.comThis is a DEMO Course On – Introduction to Retail Management.Register Today and Get Access to 5 FREE Courses.What Do you Get:View All Courses Online.Download Powerpoint Presentation for Each Course.Do the Knowledge Checks for Each Course.