MEANING

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• Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets,door-to-door or by delivery. 

Organised VS Unorganised Retailing

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OVERVIEW

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10%- GDP8%- EMPLOYMENT95%- UNORGANISED REAILINGORGANISED PENETRATION LEVEL 85%- US 80%- FRANCE 66%-JAPAN 20%- CHINA 5-6%- INDIA

Types by products

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• Food products — typically require cold storage facilities.

• Hard goods or durable goods ("hard-line retailers") — appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time.

• Soft goods or consumables — clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.

Types of retailers outlets

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Department Store Supermarkets Warehouse retailers Speciality Retailers E-tailer Convenience Retailer Discount Retailer 

Services Offered by Retailers

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Three Basic Tasks of Retailing

LO 1

Selling Process in the Retail Environment

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Customers Point Of View 19-

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Self serviceSelf selectionLimited serviceFull service

World’s top retailers 19-

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Wal-MartKrogetTargetWalgreenCostcoHome depotCVS caremarkLowe’sBest buy

India’s top retailers 19-

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Pantaloon retailK Raheja groupTata groupRPG groupLandmark groupBharti wall martReliance

Retail pricing 19-

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Cost plus pricingSuggested retail pricing

Transfer mechanism 19-

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Counter priceDeliveryOrderDoor to doorSelf serviceDigital delivery

BPO SERVICES For Retail Industry 19-

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RetailStrategy

The main focus:The main focus:Bringing harmony between the controllableBringing harmony between the controllable

variables and the uncontrollable ones.variables and the uncontrollable ones.Uncontrollable variables drive the controllable ones!Uncontrollable variables drive the controllable ones!

Developing an Overall Retail Strategy

Retail Marketing Mix:Retail Marketing Mix:Controllable FactorsControllable Factors

Competition & Environment:Competition & Environment:Uncontrollable FactorsUncontrollable Factors

What’s the3rd element

of retailStrategy?

TargetMarket

ControllableVariables

Store Location Store Format & Layout

Merchandise Management Pricing

Communications

UncontrollableVariables

Consumers Competition Technology

Economic Conditions Seasonality

Legal Restrictions

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Composition of key elements

PlaceProductPricePromotionPeopleProcessPhysical Environment

Key Element

Place (store location)Target marketChannel structureChannel managementRetailer imageRetail logisticsRetail distribution

Key element

Product (merchandise)Product developmentProduct managementProduct features and benefitsBrandingPackagingAfter-sales services

Key element

PriceCostsProfitabilityValue for moneyCompetitivenessIncentivesQualityStatus

Key element

PromotionDeveloping promotional mixesAdvertising managementSales promotionSales managementPublic relationsDirect marketing

Key element

People elementStaff capabilityEfficiencyAvailabilityEffectivenessCustomer interactionInternal marketing

Key element

Process elementOrder processingDatabase managementService deliveryQueuing systemStandardisation

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Customer Service 19-

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The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. These activities increase the value customers receive from the merchandise and service they purchase.

Strategic Advantage Through Customer Service

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• Good service keeps customers returning to a retailer and generates positive word-of-mouth communication, which attracts new customers

• The challenge of providing consistent high-quality service offers an opportunity for a retailers to develop a sustainable competitive advantage

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Customer Service Strategies

Personalized ApproachGreater benefits to customers

Greater inconsistency

Higher cost

Standardized ApproachLower cost

High consistency

Meets but does not exceed expectations

Personalized Approach 19-

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Personalized Approach encourages service providerto tailor the service to meet each customer’s personal needs.

Drawback: Service might be inconsistent

Customized service is costly

Standardization 19-

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Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently.

Retailers that use this approach:

McDonald’s Wal-Mart IKEA Dollar General Save-A-Lot

The McGraw-Hill Companies, Inc./John Flournoy, photographer

Perceived Service 19-

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Cues used to assess service

Reliability

Assurance

Tangibility

Empathy

Responsiveness

Perceived Services – evaluations are based on perception

Assessing Service Characteristics 19-

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Reliability: accuracy of billing, meeting promised delivery dates

Assurance (trust): guarantees and warranties, return policies

Tangibility: appearance of store and salespeopleEmpathy: personalized service, receipts of notes

and emails, recognition by nameResponsiveness: returning calls and emails,

giving prompt service

Challenges 19-

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Recent trends In 2013 19-

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