8/8/2019 Retail Env

1/31

Retail environment

8/8/2019 Retail Env

2/31

content of this presentation

1. The meaning of retail and retailing

2. What is retail environment?

3. 7 Ps of retail marketing, Involvement of RE in7Ps an d explanation of the same.

4. Retail environment analysis- macro and micro

5. Retail environment audit- PEST AND SWOT

6. Major environment factors which affects RE

7. Conclusion with case study

8/8/2019 Retail Env

3/31

The meaning of retail and retailing

David gilbert-

Retail is a Any business that direct its marketing

efforts towards satisfying the final consumerbased upon the organisation of selling goods

and services as mean of distribution.

Retailing can be referred to all activity involved

in marketing and distribution of goods and

service

8/8/2019 Retail Env

4/31

What is retail environment?

Retail environment is a place where the

marketer/manufacture select a place ( market

where the product or service is launched).

It is a place where the marketer or the retailer

deliver its product or service, it can either

distribution center or a small outlet to reach

the final consumer.

8/8/2019 Retail Env

5/31

7 Ps of retail marketing

1. Product

2. Price

3. Place4. Promotion

5. People

6. Physical evidence

7. process

8/8/2019 Retail Env

6/31

Involvement of RE in 7Ps

3. Place

4.Promotion

5.Physical evidence

We will see in detail..

8/8/2019 Retail Env

7/31

Place

As stated earlier

RE is a place where product and service are

delivered. The place of delivery is calledmarket (example: reliance fresh outlets in

chennai city, here chennai is a market where

retail service are done by reliance fresh)

The marketer have to analysis the market

environment before launching the service.

8/8/2019 Retail Env

8/31

Promotion

The promotional activity includes advertising, personalselling, sales promotion, publicity, public relations etc

BUT HOW RE IS INVOLVED IN PROMOTION?

When getting bac

k tobuyer decision making process

Problem recognition

General need description

Product specification

Supplier/retail store search

Supplier/retail store selection

Performance review of retail store

8/8/2019 Retail Env

9/31

Selection of retail store with good

environment

When other things remains the same (productrange, feature, price etc)--- applicable to life timeproducts and leisure type e.g.-car, movie.

1. Consumer will prefer to go shopping mallinstead of a stand alone outlet. e.g. for watchingmovie.

2. Consumer will prefer to set and discusses the

technical feature ofcar.

By this we can assume that RE promotes salesindirectly.

8/8/2019 Retail Env

10/31

Physical evidence

Physical evidence is a environment whichincludes

1. Furnishings.

2. Colour.3. Layout.

4. Noise level and

5. Facilitating goods and tangible clues.

These factors can compared in retail outlet like GTRjewelers, Castrol bike zone, naturals unisexsaloon.

8/8/2019 Retail Env

11/31

Cont

By the previous understanding , we can

assume that store environment plays a vital

role in retail function.

Store environment management includes.

Ambience

Layout and design of the store and Geographical location.

8/8/2019 Retail Env

12/31

Retail environment analysis

Macro environments analysis

it includes political and legal

ec

onomic

sociocultural

technological

demographic

physical

8/8/2019 Retail Env

13/31

Cont.

Micro environment

it includes market

suppliers and intermediariescompetitors

8/8/2019 Retail Env

14/31

Retail environment audit

Through

- PEST analysis

- SWOT analysis

8/8/2019 Retail Env

15/31

Major environment factors

1. CHANGES RELATED TO CONSUMER

Demographicchanges- increase or

decrease in population numbers,age groups

etc.

Attitudes and preferences to

purchasing,brands and products.

Changes in life style- fastfood,telephonebanking,creditcard payments are becoming

important.

8/8/2019 Retail Env

16/31

Cont..

Economic influences based on real incomes,

number of women working etc..

2.CHANGES IN TECHNOLOGYmicrowave cookers, food freezers, the

internet, computer applications in business,

JIT delivery systems and so on

8/8/2019 Retail Env

17/31

Cont..

3.CHANGES IN COMPETITION:

The competitive strength or otherwise of

actual or alternative channels of distribution,

depending upon the nature and type of the

retail organization.

The impact of the internet is a

fundamental example of new types ofcompetition that can appear.

8/8/2019 Retail Env

18/31

8/8/2019 Retail Env

19/31

8/8/2019 Retail Env

20/31

2.Promotion

R.Fdoesnt involve in any tele media mode,but you can find some adds in local news

paper to reach the local customer, this adds

are not standard for all 560 retail outlet. The internal environment includes space,

design, air condition, this set up indirectly

promotes the sales when compared to retail

setup

8/8/2019 Retail Env

21/31

3.Physical evidence

Onc

e again the ambianc

e of the internal setup

And tool like(trailer, shelf etc) these tool make

the customer to pick the product.

8/8/2019 Retail Env

22/31

RELIANCE FRESH Envo ANALYSIS

MACRO ENVIRONMENT

1. Political and legal:

consumer protection, equal rights,

safetyat work, working hours, minimumwages.

8/8/2019 Retail Env

23/31

Cont..

safetyat work

1. Reliance Fresh faced the ire of theMayawatigovernment in Uttar Pradesh where 10 newly

opened shops were shut down in Lucknow2. Dr S Ramadoss [ Images ], the Pattal Makkal Katchi

leader, is spearheading the opposition to RelianceFresh on the ground that it will break the backbone

of the rural economy in the southern state.3. Some stone throwing incident in ranchi and

some parts of A.P

8/8/2019 Retail Env

24/31

Cont..

2. Economic

includes disposable income, gross domestic

produc

t, unemployment.Disposable income: India IT boom

GDP: increasing GDP

Unemployment: created a good job opportunityfor young talents.

8/8/2019 Retail Env

25/31

Cont..

3. Socioculture

includes social culture, reference group,culture and sub-culture.

Even though Indian population speak more than1600 languages and follows six major faith.The shopping habits are same and unique.

Earn now spend later - -earn now spend nowThe change of attitude among the Indian

population made RF success.

8/8/2019 Retail Env

26/31

Cont..

4.Technological

includes products, processes, production,

information handling, management.

In this aspect the customer are

connected/contacted through their cell phones,

thus information are transferred.

Service improvement in banking industry like creditcard etc, made a plat form for RF to handle

modes of payments.

8/8/2019 Retail Env

27/31

Cont..

5. Demographic

includes age, sex, martial status,

household size, geographic

loc

ation

8/8/2019 Retail Env

28/31

Micro environment

1.Market

includes segment size, behaviors, trends,

loc

ations, level of servic

e demand.

8/8/2019 Retail Env

29/31

Cont..

2. Suppliers and intermediaries

includes supply chain, avaliability,

loc

ation, geographic

c

onc

entration, volumeconcentration.

8/8/2019 Retail Env

30/31

Cont..

3.Competitors

includes, strategies, potential new

entrants, rivalry.

8/8/2019 Retail Env

31/31

END OF THE PRESENTATION