retail marketing1

8/7/2019 retail marketing1

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Retailing is the combination of activities

involved in selling or renting consumer goodsand services directly to ultimate consumers for

their personal or household use. In addition to

selling, retailing includes diverse activities like

buying, advertising, data processing and

maintaining inventory.



Evolution of Retailing

India is a nation of shopkeepers and has more

outlets than any other county in world

Retail outlets exist in all shapes and sizes from a

Panwala to Shoppers stop

Organized retailing in India initially began in

south

It took two years of recession for this concept of

shopping to take roots in cities like Mumbai and

Delhi



Growth of Organized Retailing in India

Organized Retailing in India initially began in the south. In

fact in Chennai nearly 20% of food sales now is

accounted for by Supermarkets and an equal share of consumers durables is sold through specialty chains.



Four ± Gear Path for the organized retail grade-

By KSA Technopak

Gear One ±Stage of Infancy- The Super Bazar as

a concept focusing on price control, started during

the inflationary period of the 1960s, that's where it

began. The open layout and self service concept

were new to Indian consumers.

Gear I was driven by Entrepreneurship like

Subhiksha.

The model primarily applies to apparel more than

any other form of retailing like food and grocery. It

is completely driven from the demand side and not

on the supply side.



Gear ±II- Meeting Cutomer Expectation

It is consumer driven, where buyers are exposed to

new retail formats. This is a period of growth. India

is currently in this stage.

Some of the features offered by these new forms

of store are convenient timings, dial an order,

free parking, provision for trial and taste, prices

below MRP, free home delivery etc«



Gear ±III ±Shift in the power equation between

manufacturers and retailers

The III gear involves efficient Back-End

Management. Retailers exploit economies of scale and

offer the best prices to their customers .The focus is on customer acquisition and category

management

A distinctive mark of this phase is efficiency:

profitability through heavy investment in the back ±end



Gear ±IV- period of consolidation

The organized sector acquires a significant share of

retail pie

It is the beginning of cross border movement

with mergers, acquisitions gaining in

importance .

Eg. Wal Mart «



Importance of Retailing

�Convenience to customers

�Generates employment

�Opportunities in frontline retailing

�Remove inefficiencies in distribution

�Better range of products

�Better prices for customers

F or Consumers



�Triggers customers Spends

�Real Estate The Retail Industries real estate

requirement will be huge which will mean

productive use of large lands lying with govt.

agencies like ports, railways etc

�Tourism /Outbound Shopping-like

New York Dubai even India can be developed for

ethnic Indian brands and organized retailing canhelp in developing cities as tourist destination

F or Economy



Importance of Retailing

�Higher

GDP

�Outsourcing opportunities

�Foreign Direct Investment in retail



Functions of Retail Marketing

Buying

-Buying for a retail organization is a critical

function of merchandising. The process beginswith the preparation of the buying plan ,called

³open to buy´ or OTB.

-It is also a process of forecasting sales and

purchase.

-OTB refers to merchandise budgeted, for which

the stock have not yet been ordered.



An efficient OTB Plan has the following Function:

�Forward sales planning (Sales forecast)

�Forward cover

� Stock required-for current month 1, it is

sum of planned forecast sales of 2,3 &4

�Opening stock

�Intake requirement difference between

opening and required stock



�On Order- Due for delivery

�Open to Receive-deducting stock onorder from intakes requirement

�Closing stock



Retail Selling

The Sales Approach

Service Approach-

Salutation Approach (greetings)

Merchandise Approach



Proper Attitude

Making the Sale

CRM



A Model for Customer Relationship Marketing

Input Processing -Unit Output

Addition of value

with product &

service

Contact &

involvement

Intimacy & one to

one relationship

Price offers

Information sharing

Customer

Need

Assessment

Customer Dev.

through

personalization &

customization

Customer retention

and referring new

customers

Relationship

marketing

Commitment

recognitionrespect

Reward

Transparency

Share values

High customer

satisfaction

Increased market

share

High customer loyalty

High customer

retention index

Life time

customer



Transportation

Fundamental Factors:

Cost ±It is the payment for movement between two

locations.

Speed ± It is the time required to complete a specific

movement. Speed and cost of transportation are related in

two ways:

� Faster service with higher rates

� Faster service means shorter time interval



�Road transport

�Water transport

�Shipping companies

�Air transport



JIT ± Just in time transport

Management

JIT is a method used for managing

inventory level.

Manufacturers in a number employ it to help them

reduce the amount of production supplies that they

keep on hand.



Seven benefits of JIT implementation

�Downtime reduction

�Inventory reduction

�Workspace reduction

�Increased quality

�Increased manpower utilization

�Increase equipment utilization

�Increased inventory turnover









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retail marketing1