321 33 powerpoint slides chapter 1 retailing role relevance trends
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role relevance trends of retailing retail industry in indiaTRANSCRIPT
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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RETAIL MANAGEMENT,RETAIL MANAGEMENT,
2/E2/E
Chetan BajajChetan Bajaj, Director,
Sona School of Management, Salem, Tamil Nadu
Rajnish TuliRajnish Tuli, Director,Millward Brown, South East Asia, Singapore
Nidhi Varma SrivastavaNidhi Varma Srivastava, Director,
Millward Brown, India
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Chapter - 1Chapter - 1RETAILING: ROLE, RELEVANCERETAILING: ROLE, RELEVANCE
AND TRENDSAND TRENDS
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What is
retailing?Retailing: a conclusive set of activities orsteps used to sell a product or a service toconsumers for their personal or family useRetailer: a person, agent, agency,
company or organization instrumental inreaching the goods, merchandise, orservices to the ultimate consumerCountries that have enjoyed the greatest
economic and social progress have beenthose with a strong retail sectorOver the last decade there have been
sweeping changes in the general retailing
business
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Retail industry andeconomyRetail business is the largest privateindustry
Retail is ahead of finance and engineering
and contributes over 8 per cent of GDP inthe western countries
Over 50 of the Fortune 500 and about 25of the Asian Top 200 companies areretailers
Today, in some developed countries, retailbusinesses have shares as large as 40 percent of the market
The significance of the retail business has
increased with the fast growth in the
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Retail industry in IndiaRetail forecasts in India:- the business in India is crossed Rs. 25,000
billion in 2008- growth of organized retailing in both food andnon-food
segments
- proportion of sales through organizedretailing increased by 8% in 2010
Emergence of organized retailing:
-India to have over 700 shopping malls by2015(400 operational malls in 2010)- land developers rushing to cash in on the
booming retail
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Contd…
40 per cent of the total mall space to beconcentrated in the National Capital Region
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Characteristics of retailingDirect end-user interaction
Sole point in the value chain to provideplatform for promotions
Sales at the retail level is generally in smallerunit sizes
Location is a critical factor for retail businessRetail services are as important as core
products
A larger number of retail units as compared to
other members present in the value chain
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Functions of retailing
Sorting
Breaking bulkHolding stock
Additional services
Channel of communication Transport and advertising functions
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Activities performed byretailers
Arrange for assortment of offerings
Breaking quantity
Holding stock
Extending services
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Categorizing retailers
Number of outletsMargin vs Turnover
Location
Size
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Trends in retail formats
Mom and Pop Stores and traditional kirana
storesE-commerce
Department Stores
Discount StoresCategory Killers
Specialty Stores
E-tailers
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Relationships betweenretailers and suppliers
The retail sector is critically dependent on itssuppliers for effective operation and theprofitability of its businessSeveral socio-economic and demographic
factors are considered by manufacturers foridentifying the ideal retail format mix for itsproducts
This is illustrated by the washing soap categoryin India and the resultant retail formatpreferences
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Retail format mix adopted
by manufacturers forsoaps
Soap is targeted towards women as they
are the chief decision-makers in soappurchase. Medicated positioning like germkilling and anti-bacterial are marketed tofamilies.
About 75% of the soaps are bought throughthese following types of outlets.
Kirana stores
Pan-beedi shops
Department stores
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Retail strategyDefine the business of the firm in terms of
orientation towards a particular sectorSet short-term and long-term objectives with
regard to image and profitabilityIdentify the target market and direct efforts on
the basis of the customers characteristics andneedsDecide the broad direction the company must
take in futureImplement an integrated plan that
encompasses all aspects of retailing likepricing, location, and channel decisions
Evaluate and revise the plan depending on thenature of the internal and external environment
7/15/2019 321 33 Powerpoint Slides Chapter 1 Retailing Role Relevance Trends
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Retail concepts
An essential part of the retailing strategy,the retailing concept is essentially acustomer-centred, company-wide approachto developing and implementing amarketing strategy. The retailing conceptcovers four broad areas:
Customer orientation
Goal orientation
Value driven approach
Coordinated effort
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The changing face of retailingRole of the Internet- Does the size of the retail organization play a big
part in adapting easily to the Internet?- Is the product/service offering also a prime
determinant of cyber retailing?Branding through retailers- How do retailers choose which brands to
display?
- Why do many new products fail in themarketplace- How can manufacturers maximize the brand
opportunity in a given retail outlet?- What is future of Lifestyle Clustering?
- Vertical retail concepts are increasing inpopularity
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Drivers of success in theretail sector Customers are the driving force in change
Re-evaluating the marketing planAdvanced education for retailers is critical for
growth
Strong visual recognition
The workplace challenge
Planning for success