Retail Mgt 1

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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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Documents

Retail Mgt 1