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ChapterChapter11

Retail Management?Introduction, scope and trends in Retailing

RickyRicky KishoreKishore

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Refreshor!!!!Refreshor!!!!

ManagementManagement MarketingMarketing Product Marketing vs. Service MarketingProduct Marketing vs. Service Marketing

SWOT analysisSWOT analysis 4 Ps or Marketing Mix4 Ps or Marketing Mix BrandingBranding Distribution & PlacementDistribution & Placement

PositioningPositioning Retail Managers (in organizations & inRetail Managers (in organizations & in

retail outlets)retail outlets) Franchising, Dealership, Service RetailingFranchising, Dealership, Service Retailing

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Distribution NetworkDistribution Network

DistributorDistributor

Broker / AgentBroker / Agent

Factory OutletFactory Outlet

WholesalersWholesalers

RetailersRetailers

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Issuesin RetailingIssuesin Retailing

zzHow can we best serve ourHow can we best serve ourcustomers while earning a fair profit?customers while earning a fair profit?

zzHow can we stand out in a highlyHow can we stand out in a highlycompetitive environment wherecompetitive environment whereconsumers have too many choices?consumers have too many choices?

zzHow can we grow our business, whileHow can we grow our business, whileretaining a core of loyal customers?retaining a core of loyal customers?

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A Typical Channel ofDistributionA Typical Channel ofDistribution

Manufacturer

Wholesaler

Final

Consumer

Retailer

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The RetailersRole in the SortingThe RetailersRole in the Sorting

Process (link to Mkt. Mix)Process (link to Mkt. Mix)

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Relationship Management AmongRelationship Management Among

Retailers and SuppliersRetailers and SuppliersDisagreements may occur:

control over channel

profit allocation

number of competing retailers

product displays

promotional support

payment terms

operating flexibility

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Distribution TypesDistribution Types

ExclusiveExclusive: suppliers make: suppliers makeagreements with one or few retailersagreements with one or few retailers

that designate the latter as the onlythat designate the latter as the onlyones in a specified geographic areaones in a specified geographic areato carry certain brands or productsto carry certain brands or products

IntensiveIntensive: suppliers sell through as: suppliers sell through as

many retailers as possiblemany retailers as possible

SelectiveSelective: suppliers sell through a: suppliers sell through amoderate number of retailersmoderate number of retailers

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Special CharacteristicsAffectingSpecial CharacteristicsAffecting

RetailersRetailers

Retailers

Strategy

Small

Average

Sale

Impulse

Purchase

Popularity

of

Stores

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Eliminating Shopper BoredomEliminating Shopper Boredom

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Customer ServiceCustomer Service

Activities undertaken by aActivities undertaken by aretailer in conjunction withtheretailer in conjunction withthebasic goods and services it sells.basic goods and services it sells.

Store hoursStore hours

ParkingParking

ShopperShopper--friendlinessfriendliness

CreditacceptanceCreditacceptance

SalespeopleSalespeople

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Relationship RetailingRelationship Retailing

Seekto establishand maintain long-termbonds with customers, rather thanactas ifeach sales transaction is a completely newencounter

Concentrate on the total retail experienceConcentrate on the total retail experience

Monitor satisfactionMonitor satisfaction

Stay in touch with customersStay in touch with customers

Develop customer databaseDevelop customer database

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KeyDriversKeyDrivers

Consumer Pull Rising incomes Explosion of media Change in consumer behavior

Consumerism cycle The Rural market: Waking up Supply chain establishment Entry ofCorporate sector Expansion of family owned businesses New Entrepreneurs Reducing Brand dominance Foreign retailers seeking entry Technological impact