2. INTRODUCTION
Retailing includes all the activities in
selling goods or services directly to final
consumers for personal or non-business
use.
Any organisation selling to final consumers
– Whether it is manufacturer, wholesaler,
or retailer – is doing retailing
3. TYPES OF RETAILER
SPECIALITY STORE Narrow product line.
EXAMPLE, The Reebok
DEPARTMENT STORE Several product
line. EXAMPLE, Nordstrom
SUPERMARKET Large, low cost, low
margin, high volume, self service store.
EXAMPLE, Big Bazaar, More Supermarket
CONVENIENCE STORE Small store in
residential areas, ex 24X7 stores, Big Apple
4. DISCOUNT STORES Standard or
speciality merchandise, low price, low
margin, high volume stores. EXAMPLE,
Wal-Mart
OFF-PRICE RETAILER Leftover goods,
overruns, irregular merchandise sold at
less than retail like in factory outlets
SUPERSTORE Huge retailing space of
household items, Ex Carrefour, Metro
Cash n carry
5. RETAILER MARKET
DECISIONS
Retailers conduct market decisions.
They are made depending on need
and nature of situation. Businessman
can make target market decisions,
product assortment and services
decisions, price decisions, place
decisions and promotion decisions.
6. Target Market Selection
For Retailers all decision regarding products, distribution, price,
promotion follow this initial decision. He attempts to narrow the
prospective markets to most profitable segments. Using
demographic data such as age, income, geographical location of
profitable prospective groups. Retailers tailor product offerings
price, store location and store atmosphere to attract the customers.
Product Assortment and Service
Retailers address certain question in deciding on product
assortments. Should a variety of product be stocked, or only a few
lines with a depth of product within each? Should high quality or
low priced goods be emphasized? Additionally intangibles such as
service and the atmosphere in which products are presented are
considered. Retailers desire for services such as credit and delivery
must also be considered in attempting to find a balance between
serving customers and maintaining profitability
7. Place: A number of options are open to retailers in selecting a
location. An isolated location maybe fine for a discount store or
catalog showroom where price advantages will impel customers to
go out of their way to shop. Speciality stores and service
businesses may choose to locate in an unplanned central business
district, with its heavy foot traffic.
Price: Some retailers charge a high mark up and would never
expect to achieve high volume. Retailers may either seek high
mark up on high volume. Speciality stores usually go for high mark
ups on lower volume.
Promotion: In order for the retailers products to be known to
customers promotional tools like advertising , personal selling,
sales promotion and publicity should be utilized
8. STORE ATMOSPHERE
Every Store has a look and a physical layout that
makes it hard or easy to move around.
Walls: Replacement of plain white walls with
earthy tones
Lighting: Replacement of bright lights with warm
accent
Signage: Add big pictures of Healthy Food
Produce Department: Moving to wooden
floors to give a natural feel ex nature’s basket
Baking: Knocked down walls to show off bread
baking
9. Store Activities & Experiences
Calling each shopper a guest
Building a indoor amusement park
Providing Café facility
Examples
Bass Pro Shops: Retailer of outdoor sports
equipments, features giant acquariums, trout
ponds, archery & rifle ranges, all free
The Discovery Zone: A chain of children’s play
spaces. Offers indoor spaces where kids can
go wild without breaking anything
13. Levels of Service.
Level of service (LOS) is a qualitative measure
used to relate the quality of traffic service. LOS is
used to analyse highways by categorizing traffic
flow and assigning quality levels of traffic based on
performance measure like speed, density,etc.
14. TYPES
Self Service. Customers are willing to carry out
their own locate-compare-select process to save money.
Self Selection. Customers find their own goods.
although they ask for assistance.
Limited Services. These customers carry more
shopping activities, need more information and
assistance.
Full Service. Firm with a large range of goods offered
at retail prices and which provides advice and detailed
information on goods sold through its trained sales force.
15. Retailing can be divided in two categorizes,
store and Non store retailing.
Direct selling: followed by Eureka Forbes,
Amway,
Aviance etc.
Direct Marketing: Followed by Amazon,
Flipkart, Myntra etc.
Automatic Vending: Is used to sell Milk,
Beverages and Magazines and to dispense
monies from ATMs
Buying Services: Is a scoreless retailer serving
specific clientele like employees in large
16. PRIVATE LABELS
Enable retailers to
offer quality products
and earn higher
margins
In-store labels are
atleast 5-20%
cheaper across
various categories.
Reduces
dependence on
Manufacturer &
Enhances
negotiation power.
17. Corporate Retailing
Although most retail stores are independently
owned, some are part of corporate retailing.
Corporate retail store achieve economies of scale,
greater purchasing power, wider brand recognition
and better employees. The major corporate retailer
operating in India are Shoppers stop, Super
Bazaar, McDonald, Time zone and Raymond
Outlets etc.
18. Location decision
Key to success “LOCATION,LOCATION &
LOCATION”
Departmental stores chains, oil-co. and fast food
chains
Evolution of location
1. No. of people passing by on an average day
2. percentage who enter the store
3. Percentage who buy
4. Avg amount of sale
19. Communications
Retailers use a wide range of
communications tools
special sales campaigns
issue money saving coupons
In store food sampling
Customised Point-of-sale material ex
Shopping Bags
Ads in magzines, T.V. & newspapers
Coupons on shelves or at check out
point
