48941446 ppt for retailing

8/13/2019 48941446 Ppt for Retailing

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RETAILRETAIL


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RETAILRETAIL

Growing Importance of RetailSector

Large and increasing contribution to GDP

Economic importance more visible

Major employer

Retailers diversifying their activities

Organisations groing on an international scale

!lurring of areas of retail to include ider areas ofbusiness activity

"i#e of operation alloing for supply chain control$


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Characteristics of RetailingCharacteristics of Retailin

g

%here is direct end&user interaction in

retailing$

"ales at the retail level is generally in smallerunit si#es$

Location is a critical factor in retail business$ 'n most retail businesses services are as

important as core product$

't is the only point in the value chain toprovide a platform for promotions.


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Modern Retail In ExpansionModern Retail In E

xpansionPhasePhase

I!IIIII

Initiation

Manufacturersopening theirown outlets

Pure play Retailers,realizing thepotential start to

test waters,

C

oncept"ali#ation Expansion and Entr$of Glo%al Retailers

Large InvestmentCommitments by largeIndian corporates

Epansion by leadingProduct !rands

"tiffCompetition

Large "caleConsolidation

More than #$% Playerswith Revenues inecess of &" ' ())mn

More *ggression fromInternational Players

"pecialty +ormats based

on finer segmentation ofthe maret

Private brands gettingestablished

Movement to"maller Citiesand Rural*reas

I

Si#e

of

Ind"s

tr$

Pre &''( &''( to)**(

)**( to)*&*

)*&* +nwards

Consolidation

Entry of largeglobal retailers


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T$pes of Retail ,ormats Mom and Pop "tores (e$g$ )iryana stores*

Department stores ( "hopper+s stop*

"pecialty store ( Pi##a ,ut*

"upermar)ets (-al&Mart.!ig !a#aar*

/onvenience stores ('n 0 Out*

E&tailors (e&bay.ama#on$com*

Discount stores (1outons*

2ull&line discounters or mass merchandisers

"pecialty discount stores or category )illers


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FUNCTIONS OF RETAILERS

UNCTIONS ORETAILERS

34DER"%54D'4G

/3"%OMER 4EED"0 -54%"

PRO6'D'4G5""OR%ME4%

O2 GOOD""ER6'/E"

PRO6'D'4G"ER6'/E" %O/3"%OMER"

!RE51'4G!3L1

,OLD'4G'46E4%OR7

PRO6'D'4G'42ORM5%'O4 %O

"3PPL'ER"


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e a ar e rea / p n/)**1)**1

Source: Technopak Analysis


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India Retail ScenarioIndia Retail Scenario

-

*ll +igs in &"'billion

The Indian retail market is expected to be about US $ 535 Billion by 2013 !ith

an anticipated US$ 30 Billion in "resh in#estments o#er next 5 years modernretail %ill sho% impressi#e &'() *+0,

- .- (/ .()0-) 1.)

#/# (##(-/

.,.%.

.,1-(

0,./#

0))/ 0))- 0)./ 2P3 0).- 2P3

Modern Retail Retail 45P


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Currently, Modern Retail Comprises aCurrently, Modern Retail Comprises aSmall Perenta!e o" Total Retail in IndiaSmall Perenta!e o" Total Retail in India

Breakup o" -odern and Traditional)etail

Breakup o" cate.ories %ithin modernretail


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Spending Shifting ,rom .asic ToSpending Shifting ,rom .asic To

2iscretionar$2iscretionar$

The share of food and grocery in the

consumers wallet continues to drop releasing money for discretionary

expenditure

F& share expected to decline from !"#

in $%% to !$# in $%'!

Source: India Consumer Trends 07, Technopak analysis

)**3

)**1

)*&3

Food # $roery

Rent, Utilities #Eduation

Fuel, Transport #

Communiation

Sa%in!s #

In%estment

&isretionaryE'penditure


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44+pport"nit$ ,or Retail 5 Cons"mer+pport"nit$ ,or Retail 5 Cons"mer

Prod"cts Is Still IntactProd"cts Is Still Intact

Medium and long term prospects for the 'ndian economycontinue to be enthusing ith strong domestic consumptionand reduction in commodity prices. inflation. and loeringinterest rates$

"ectors such as /onsumer Products. 2ood 0 Grocery./onsumer 5ppliances 0 Durables. 8"Rs. ,ealthcare.

Education. etc$ are still shoing high groth prospects asreflected in their recent financial numbers$

Modern 'ndian retail is currently e9periencing a steeplearning curve and the current turbulence is not entirelyune9pected or undesirable$

Retail ill itness e9pansion. consolidation. ac:uisition andfurther entry of international chains beteen ;


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2E,INITI+N +, RETAILING2E,INITI+N +, RETAILING

T(e term )retailin!* is deri%ed "rom t(e old Fren(T(e term )retailin!* is deri%ed "rom t(e old Fren(

+ord +ord retaillerretailler- meanin! )a piee o"* or )to ut- meanin! )a piee o"* or )to ut

up*.up*.

Retail isRetail is@@

Any usiness t(at direts its mar/etin! e""ortsAny usiness t(at direts its mar/etin! e""orts

to+ards satis"yin! t(e "inal onsumer ased uponto+ards satis"yin! t(e "inal onsumer ased upon

t(e or!anisation o" sellin! !oods and ser%ies ast(e or!anisation o" sellin! !oods and ser%ies as

a means o" distriution-.a means o" distriution-.


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Classification of RetailClassification of Retail0nits0nits

Retail stores can be classified as per the folloing

6 Nat"re of ownership@

& Sole proprietorship, Partnership, Joint Venture

Limited Liability company.

6 +n the %asis of +perational Str"ct"re 6 / Independent Unit, Retail Chain, Franchise, Leased (sins!

departments, Cooperati"es (Fair price!

6 +n the %asis of retail Location 6

Free Standin# Retailers, In $usinessassociated location,

planned shoppin# centers6 +n the %asis of Merchandise Mix7


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/ Electronic Retailing

/ Catalog"e 5 2irect Mail Retailing

/ 2irect Selling

Person to PersonParty Plan or Person "elling

Multilevel 7etwor

/ !ending Machines

T$pe of Retailers

Store Retailers 4on&"tores Retailers

Met(od o" Customer InterationMet(od o" Customer Interation


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Retail Mar-etingRetail Mar-etingThe Nat"re of Retail Mar-eting6

8he ey aspects of retailmareting is an attitude of mind9

In maing retail maretingdecisions, retailers must considerthe needs of the customers9

Retail mareting decisions aredriven by what the shoppers need

and want


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Cont:

Retail mareting is therefore a philosophy and is

all about satisfying the customers;hat the customers regard as value and what

they buy is decisive9

;hat the customers buy determines the nature of

the retailer


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Mar-etingMar-eting %he retail mar)eting concept is the acceptance by

the retailer that it is the AcustomerB and notAdemandB that lie at the core of the retailorganisation$

%he retail mar)eting concept is a philosophy. nota system of retailing or retail structure$

't is founded on the belief that profitable retailingand satisfactory returns on investment can onlybe achieved by identifying. anticipating andsatisfying customer needs and desires$

't is an attitude of mind that places the customerat the very centre of retailing activities$


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Retail mareting is stimulating, =uic$paced, and influential9

It encompasses a wide range ofactivities including>

? En8ironmental anal$sis? Mar-et research

? Cons"mer anal$sis

? Prod"ct planning etc7

Importance +f Mar-eting InIm

portance +f Mar-eting In


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Importance +f Mar-eting InImportance +f Mar-eting InRetailingRetailing

% &ar'etin# is a "ital tool or e"ery retailer, as it identiies

current, unulilled needs and )ants, )hich it deines and*uantiies.

% &ar'etin# determines )hich tar#et #roups the retailer shouldser"e.

% &ar'etin# could be seen as deli"erin# an acceptable standardo li"in#.

% &ar'etin# can ensure complete satisaction and sustainedcustomer loyalty.

% &ar'etin# depends on the eicient coordination o consumer

prediction, product de"elopment, pac'a#in# desi#n andinluencin# demand throu#h appropriate communicationmedium.

% From these, a suitable mi+ is achie"ed$


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Retail mar/etin! o0eti%es

%he retail mar)eting objective is a performance

parameter hich has been e9plicitly stated$ 't can be stated in :uantifiable terms and time terms so

that results can be measured against it$

%hree types of retail objectives include@

>$!asic objective C those hich defines retailer+s long&term purposes$

;$Goals C those hich the retailer must achieve to be

successful?$%argets C short&term goals that re:uire immediate

achievement$


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Retail mar-eting mix% Retail mar'etin# mi+ is the term used to describe the

"arious elements and methods re*uired to ormulate ande+ecute retail mar'etin# strate#y.

% Retail mana#ers must determine the optimum mi+ o

retailin# acti"ities and coordinate the elements o the mi+.

% he aim o such coordination is or each store to ha"e adistinct retail ima#e in consumers- mind.

% he mi+ may "ary #reatly accordin# to the type o mar'etthe retailer is in, and the type oproductser"ices.

Th 3 P9 f M - i :E d d


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The 3 P9s of Mar-eting :ExtendedMar-eting mix;


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elementselements Place

Product

Price

Promotion

People

Process

Physical Environment


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Retail Mar-eting MixRetail Mar-eting Mix

/hile many elements may ma'e up a irm-s retailmar'etin# mi+, the essential elements may include0

% Store location,

% merchandise assortments% Store ambience,

% customer ser"ice,

% price,% Communication )ith customers


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Mi' 1

Personal selling "tore image

"tore design

"ales incentives

People

Process

Physical evidence


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Theories of Retail DevelopmentTheories of Retail Development

Retail 1e"elopment rom the theoretical perspecti"e0

% 2o sin#le theory can be uni"ersally applicable or acceptable.

he application o each theory "aries rom mar'et to mar'et ,

dependin# on the le"el o maturity and the socioeconomic

conditions in that mar'et.

% he retail scenario 'eeps chan#in# continuously. hese chan#es

are brou#ht by e"er chan#in# customer re*uirement, economic

de"elopment o the nation , allin# borders, ne) technolo#iesand by entrepreneurs.


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% 3ro)th in retail is a result o understandin# mar'et si#nals andrespondin# to opportunities that arise in a dynamic manner.

% heories o retail de"elopment can broadly be classiied as0

1. Environmental0 )here a chan#e in retail is attributed to thechan#e in the en"ironment in )hich the retailers operate.

2. Cyclical : )here chan#e ollo)s a pattern and phase can ha"edeinite identiiable attributes associated )ith them.

3. Conflictual:)here the competition or conlict bet)een t)o

opposite types o retailers, leads to a ne) ormat bein#de"eloped.


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T(e 2(eel 3eeps On Turnin! And &epartment Stores,Supermar/ets, And Mass Mer(andise 2ent T(rou!(T(is Cyles

(ntry

phase

Trading upphase

)uln

era*ili

typ

hase

-ature retailerTop hea+y

,eclining -./

Inno#ati#e retailer0ow status and price1inimum ser+ice2oor facilities

0imited product offering

Traditional retailer(la*orate facilities3igher rent1ore locations

3igher prices(xtended product offerings

(ntry

phase

8

)uln

era*ili

typ

hase

-ature retailerTop hea+y

,eclining-./

Inno#ati#e retailer0ow status and price1inimum ser+ice2oorfacilities

0imited product offering

Traditionalretailer(la*oratefacilities3igher rent1ore locations

3igherprices(xtended productofferings


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3. Conflict theory (dialectic Process)3. Conflict theory (dialectic Process)

% Conlict al)ays e+it bet)een operators o similar ormats or

)ithin broad retail cate#ories.

% Retail inno"ation does not necessarily reduce the number o

ormats a"ailable to the consumer, instead , it leads to the

de"elopment o more ormats.

% Retailin# in"ol"es throu#h a dialectic process, i.e. blendin# o

t)o opposite to creates a ne) ormat. his can be applied to

de"elopment in retailin# li'e4


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5$ Thesis:Indi"idual retailers as corner shops all across thecountry.

B. Antithesis0 5 position opposed to the thesis de"elops o"er a

period o time . (department store, discount store!. he

antithesis is a challen#e to the hesis.

C. Synthesis:here is a blendin# o the hesis and antithesis.

he result position bet)een the thesis and antithesis.

Supermar'ets and hypermar'ets lourish. his 6synthesis7

or the ne+t round o e"olution$


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2isco"nt Store

2isco"nt

2epartment Store

2epartment Store

Antithesis

Ill"stration

Thesis

48941446 ppt for retailing

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