retail mgt 1
TRANSCRIPT
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BY
GIBSON G. VEDAMANI
Retail Management
Functional Principles andPractice
By : Roohi Kanwal ShaikhSession-1
Class-BBA.1V
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Lecture 1
CHAPTER 1. INTRODUCTION TO RETAILING
CHAPTER 2. TRENDS IN RETAILING
By : Roohi Kanwal ShaikhSession-1
Class-BBA.1V
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RETAIL MANAGEMENT
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WHATISTHE NATUREOFTHE SUBJECT ?Retail Management
Concepts
Case Studies Applications
Concept Application
Case Studies
RetailManagement
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CHAPTER 1 & 2 : INTRODUCTION
1. What is Retailing?
2. Retailing and Marketing Mix
3. Retailing at Global level
4. Prospects of Retailing in Central Asia (Pakistan / India)
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WHATIS RETAILING?
The word retail came from French wordRETAILLIER which mean to cut a piece offorto break bulk. In simple it means the firsthand dealing with customer
Retailing is defined as selling products to
consumers for their personal use. A retailer isa reseller (i.e., obtains product from one partyin order to sell to another) from which aconsumer purchases products.
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WHATIS RETAILING?
Retailing consists of the sale of goods or merchandise
for personal or household consumption either from a
fixed location such as a department store or kiosk.
.
Retailers are at the end of the supply chain. Marketerssee retailing as part of their overall distribution strategy
Some Companies use Vertical Integration : Wal Mart,
HKB, KMart
Manufacturing Wholesaler Retailer
Customer
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RETAILING
Retailing Role in Distribution
Manufacturer
Brand A
ManufacturerBrand D
Manufacturer
Brand C
Manufacturer BrandB
Wholesaler
Retailer
Wholesaler
Brand ABrand BBrand C
Brand D
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WHATIS RETAILING?
Retailing involve business activities from endto end. (Mean retailing starts right from the
design stage to selling stage)EXAMPLES:
Motels, Videotape Rental, home deliveredPizza, CDNOW, PKMall, Cash-n- Carry,Makro, HKB, Wal Mart, Kmart, LarkanaBackers, City Bakers, Fashion Valley, CableTV, Karachi etc.
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FUNCTIONS PERFORMEDBY RETAILER
Providing an assortment of Goods and Services
Breaking Bulk
Holding Inventory
Providing Services
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PROVIDING GOODSAND SERVICES
Normally a super market carry 20,000 to 30,000different products
Variety for customers to choose from wide selection
What will happen if each manufacturer will open hisown store?
New trends : Play it Again Sports,
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BREAKINGTHE BULK
Reduce cost for manufacturers and wholesalers
Important for both consumer and manufacturer
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HOLDING INVENTORY
Keep the inventory for all products which alreadybroken into user friendly sizes and quantities
Important for consumer as he has limited place
Really important in the case of perishable items
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PROVIDING SERVICES
Easier to buy and use products
Offer Credit
Testing of Products before buying
Salespeople to answer any question Multi channel Retailer (24 hour Service)
Seven Eleven
Home Delivery
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RETAILINGAND MARKETING MIX
Retailing is important part of marketing mix
Retailing it self include all elements ofproduct, place, price, presentation and
promotion.Place is related to the distribution of
products through many locations
Products are introduced through Retail
storesProducts performance is checked through
sale at stores
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RETAILINGAND MARKETING MIX
Retail Stores are Point of Sale (POS) or Point ofPurchase (POP) How?
Retail stores are Communication Hubs
They spread information through different channels
Retailing has greatChannel Power
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PAKISTAN RETAIL INDUSTRY
With an estimated 150 million consumers, Pakistan is theworlds ninth largest market.
Economic growth, which was averaged about 5 percentannually for the past decade.
One of the major objectives ofPakistans government isto restore investor confidence and to implement broadeconomic reforms.
Although per capita income remains low (about $1085),there is a large and growing consumer class (estimated atabout 25 percent of the total population).
The average Pakistani consumer spends 42% of her
income on food only.
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RETAILAT GLOBAL LEVEL
Most of big economies depends upon retail sector.By 2010 around 17% of total US work force (26
Million people) are employed in retailing and it hasgrowing trend
World total sale $6.6 trillion , Ist in the world50 fortune 500 companies are in retail25 of the Asian top 200 firms are retailersWal Mart s turnover is 1/3 of India's GDP10% of the worlds billionaires are retailers
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RETAILAT GLOBALLEVEL
Retail formats have evolved in three phases
Category & QualitySuper market, Dept,Specialty Stores / Metro/Tesco
Product Rang &Price
Category & Price Discount Stores /Kmart
Hypermarkets/Carrefour
Ist Phase
2nd Phase
3rd
Phase
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GLOBAL FACTORSAFFECTINGTHE RETAILER
Cross Border Movement
Consolidation
Migration of format
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KEY DRIVERSOF RETAILING
Consumer Pull
Rising Incomes
Explosion of Media
Change in Consumer behavior Consumerism Cycle
Rural Market are waking up
Establishment of Supply Chain
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KEY DRIVERSOF RETAILING
Emergence of Hubs of Retail Activity
Change in Scale of Operation
Entry of Corporate Sector
Expansion of Family Owned business New Entrepreneurs
Foreign Retailers
Technological Impact
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PAKISTAN RETAIL SECTOR
60
0
10
20
30
40
50
60
Market
Share
Supermarkets
Traditional
Wet
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PAKISTANS RETAIL INDUSTRY
The development of true supermarket chains is stillrequired.
Most "semi-supermarkets" are located in Pakistans twomajor cities, Karachi (population 10 million) and Lahore(population 7.5 million) and their popularity is increasingslowly largely because Pakistani consumers assume pricesin supermarkets must be higher due to higher overhead andinvestment costs.
A fast expanding distribution infrastructure has helped toimprove marketing in rural areas. Cold storage and freezerspace remains in short supply
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PAKISTANSLABORFORCE
Pakistans labor force is still concentrated inagriculture (48.4%); only 17.4% are employed
by the industrial sectorwith 11.5% in the manufacturing industry. This
figure shows that albeit the success of the
industrial sector, it has not been able toproduce a comparable amount of jobs.
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ASSIGNMENT 1
Search the other new trends in retailing and makereport.
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