retman midterms

• Retail management


  The various processes which help the customers to procure the desired merchandise from the retail stores for their end use
• Retailing


  A set of business activities that adds value to the products and services sold to consumers for their personal or family use
• Retailer


  A business that sells products and/or services to consumers for personal or family use
• Retail management


  • Includes all the steps required to bring the customers into the store and fulfill their buying needs
  • Makes shopping a pleasurable experience and ensures the customers leave the store with a smile
  • Helps customers shop without any difficulty
• Retailers


  • Mom and Pop Store
  • Today's Retailer
• How retailers add value

  • Breaking Bulk
  • Holding Inventory
  • Providing Assortment
  • Offering Services
• Functions of a retailer

  • Creates value (Assorting, breaking bulk, holding inventory, providing services)
  • Customer convenience
  • Important link in the supply chain
  • Supply of information
  • Risk bearing
  • Financing
  • Introduction of new products
  • Advertising
  • Economic development
• The Four P's of Marketing

  • Product
  • Price
  • Promotion
  • Distribution
• Retailers are part of the distribution channel
• Factors influencing retail trade

  • Increase in per capita income
  • Demographical changes (young people, higher savings, high standard of living, attracts big retailers to India)
  • Increase in number of working women
  • Growth of middle class consumers
  • Change in consumption pattern (number of innovators or early adopters have increased)
  • Availability of low cost credit to consumers
  • Entry to various sources of financing (FDI, FII)
  • Technological changes
  • Media explosion
  • Entry of corporate sector
• Scope of retail management

  • Buying and merchandising
  • Marketing
  • Store operation
  • Human resources
  • Sales
  • Finance
  • Technology and E-commerce
  • Visual merchandising
  • Supply chain management and logistics
• Retail Formats


  • Store Based Retailing
  • Non-Store Based Retailing

  
• Independent retailer


  Owns and operates only one retail outlet. Such stores can be seen under proprietorship.
• Advantages of independent retailer

  • Flexibility
  • Investment Costs Down
  • Ease in entry
  • Strong Control
  • Rapport with customers
  • Independence
  • Entrepreneurial Drive
• Disadvantages of independent retailer

  • Lack of Power
  • No Economies of Scale
  • Labor Intensive
  • Limited Access to Advertising
  • Over-dependence on Owner
  • Limited Resources for Long-run Planning
• Chain retailer/ corporate retail chain


  When two or more retail outlets are under a common ownership
• Advantages of chain retail

  • Bargaining Power with the suppliers
  • Cost Efficiencies
  • Operating Efficiencies
  • Technical Abilities
  • Advertising Availability
• Disadvantages of chain retail

  • Time and Resources Spent on Long-run Planning
  • Limited Flexibility
  • Investments High
  • Managerial Control is Difficult
  • Limited Independence for Personnel
• Franchising


  A contractual agreement between franchisor and a franchisee in which the franchisor allows the franchisee to conduct a business under an established name as per the business format
• Franchisee Advantages


  • Small Capital Investment
  • Brand Awareness
  • Operation Procedures and Management Skills
  • Reduced Marketing Cost
  • Exclusive Selling Rights
• Franchisee Disadvantages


  • Contract Provisions
  • Cancellation Clauses
  • Less authority in decision making
• Franchisor Advantages


  • National or Global Presence
  • Ownership Qualifications Set
  • Stringent Rules for Franchisees
  • Royalties Continue
  • Smooth Operations
• Franchisor Disadvantages


  • Intra-franchise Competition
  • Injured Profitability
  • Franchisee Desire for Independence
• Leased Departments


  Also known as Shop in Shops. When a section or a department in a retail store is rented to the outside party.
• Leased Department Advantages


  • Fills Merchandise
  • Enlarged Market
  • Reduces Store Costs
  • Increased Percent of Revenues
• Leased Department Disadvantages


  • Conflicts in Operating Procedures
  • Damaged Image
• Consumer co-operatives


  A retail organisation owned by its member customers. The objective is to provide commodities at a reasonable price.
• Departmental Stores


  A large scale retail institution that offers several products from a pin to plane such as clothing, grocery etc. Retail establishment that sells a wide variety of goods.
• Convenience Stores


  Relatively small stores located near the residential area that offer limited line of convenient products
• Super Market


  Retail organisations that provide low cost high volume self-service operation to meet consumer requirements. Most of the super market charge lower price.
• Hyper Market


  A superstore which combines a supermarket and a department store. Huge retail stores that offer various products such as clothes, jeweler, stationery, electronic goods at cheaper price
• Specialty Stores


  Carry a narrow product mix with depth of assortment within the line. The emphasis is on a limited number of complimentary products and high level of customer service.
• Specialty Stores


  • Tanishq
  • Titan watches
  • Van Heusen
  • Raymond's
• Specialty Stores


  • A store that exclusively sells cell phones or video games
• Off-price retailers


  • Purchase manufacturers seconds, outdated, off seasons at a deep discount
  • Odd size, unpopular colors or defected units can be the merchandise
• Direct Selling


  A retail channel for the distribution of goods and services where there is no fixed retail location and the retailer has direct contact with the ultimate customers
• Mail order

  A retail format in which offerings are communicated to the customers through a catalogue, letters or broachers
• Tele Marketing


  A form of retailing in which the products are advertised on television and customers can place orders by calling the provided phone numbers
• Automatic Vending


  A form of non store retailing in which the products are stored in a machine and dispensed to the customers when they deposit cash
• Electronic retailing


  Also called as e-tailing or internet retailing. A retail format in which products are offered to the customers through internet