RETAIL MARKETING

Q.1) explain any retail brands retail life cycle ?

Ans) Wal-Mart Retail Mix
Customer Service = Limited
Location = Freestanding stores in power centers
Merchandise Assortment = Many categories, Shallow assortment within each category
Pricing = Low, EDLP
Communication Mix = TV & Newspaper insert ads
Store Design and Display = Racetrack with grid or simple displays within feature areas, basic fixtures
Q.2) how supply chain management has helped to accelerate growth of retail?
Having timely, accurate, and complete data and information related to orders, shipments, inventory, sales, costs, assets,
and other supply chain related items.
Supply Chain Visibility enables companies to quickly and confidently answer the most common supply chain questions
that arise every day: Whats the status of my order? Wheres my shipment or truck? How much inventory do we have
across our network? Are products selling faster or slower than forecasted? Whats the total cost to serve?
Supply Chain Visibility also helps companies to analyze more strategic questions, such as If we flowed products
differently across our network, what impact would it have on costs and lead time?
Unfortunately, achieving timely, accurate, and complete supply chain visibility remains an elusive goal for many
companies. There are many reasons why:

Supply chain data is stored in too many systems, in too many formats, across many companies and
geographies.

A lot of data/information is communicated in batch and serial mode, sometimes hours or days after a
transaction or event occurs.

Low-tech / no-tech processes still exist, especially in developing countries.

Supply chain networks are reconfiguring at a rapid pace, so the challenge of connecting to new trading
partners is ongoing.

Nobody really owns or is accountable for supply chain visibility and data quality management.
In a survey of retailers conducted by RSR Research in May 2014, 72 percent ranked system-wide inventory visibility as
having a lot of value (up from 45 percent in 2012), but only 47 percent reported having a lot of visibility in that area,
virtually the same percentage as in 2012. In addition, only 34 percent of the retailers reported having real-time updates
to inventory from transactional systems and only 31 percent said they have implemented true landed cost calculation.

Retailers Falling Short on Visibility Capabilities

Q.3) ethics in retailing?

Ethics is derived from the Greek word ethos which means character. Ethics in retailing pose certain critical issues.
Retailing plays a vital role in the economy. The retail industry is the first link in the distribution chain, from the customers
point of view. It is therefore vital for retailers to act in an ethical manner because they affect the lives of many people.

The unethical practices used by the retailers towards consumers are:

i. They charge full price for a sale item without the customers knowledge.

ii. Dont tell the complete truth to a customer about the characteristics of a product.

a. Ethical practice towards consumers:

The retailers should charge fair price for the products offered to them. The consumers have the right to get correct and
precise knowledge about the products sold to them in respect of warranty, guaranty, price, usage, ingredients etc. Ethics
is essential for the long run of the business. Ethical business is essential in todays competitive and dynamic environment.

b. Ethical practice towards investors/shareholders:

The shareholders are the owners of the business. Shareholders must be given fair returns on their investment at regular
intervals. The share holders should be disclosed with correct information about the financial status of the business
organisation. The business organisation must act in the interest of the shareholders.

c. Ethical practices towards employees:

Ethical practices must also be followed towards the employees. The retail industry employs large volume of retail staff.
Therefore proper policies and procedures must be framed for the employees regarding recruitment, selection, training,
promotion, welfare etc.

Negative issues relating employment relations in the work place can lead to loss of reputation and customers, it leads to
poor staff morale, low productivity, and high labour turnover. To avoid these confrontations the retail manager should
follow ethical practices towards employees.
Q4) COMMON ERRORS OCCURRING IN VISUAL MERCHANDISING?
Visual merchandising is a fantastic way to boost sales for your business, but when it comes to your average store, many
shopkeepers either dont have the creative touch or dont understand the benefits of well-structured, tidy and visually
appealing visual merchandising
No strategy or theme
The human brain seeks order in all things visual, and when it doesnt find order it becomes distressed, even
subconsciously. A lack of theme or story in visual merchandising makes it ineffective for selling products. A well-themed
display can draw people into your store by creating a story or aspiration that they can buy into.
Crowded or minimalist displays
There is a fine balance when it comes to creating the perfect display. Too crowded and your display looks messy and
cheap, too sparse and it will seem like you havent finished or dont have enough stock to complete it. A clutter free, welllaid out display is both attractive to look at and ordered enough to draw buyers in to examine the goods.
Not changed often enough
There are few things more horrifying to customers than stock gathering dust. Keeping a display in place for too long has a
similar effect. Customers dont want to see the same old, tired stock sitting in the window month after month. Create a
schedule for replenishing your stock on a regular basis to draw in curious customers and keep the display fresh and
relevant.
Low and no stock displays
Never put low stock items in your display, or worse, stock that you dont have available in store. Customers dont like
paying full price for display goods, even if theyve just been sat in the window, so anything in a window display must have
plenty of back up stock in the shop. In store displays will start to look messy if customers are buying the last few items,
and with products like clothes, displaying an outfit and not having the right size in stock once youve made the
subconscious sale leaves your customer feeling cheated.
Poor design/sloppy execution
Your customer will not notice perfection in your visual display but they will notice errors and sloppy finishes. Bad
paintwork, tools left amongst the merchandise or dirty stock will be picked up by even the most oblivious of customers and
will do more subliminal harm to your business than having no display at all.
Q.5) current retail strategy of any indian retail?

A Retail Strategy a clear & definite plan that the retailer outlines to tap the market & build a long term relationship with
the consumers
It enables other areas within the retail organization to determine their strategies
Product:
Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture,child care, toys, etc
of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.
Big Bazaar also promotes a number of in house brands like:

DJ & C

Tasty Treat

Clean Mate

Sensei

Care Mate

Koryo and 44 other brands.

Pricing:
The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing at Big Bazaar is based on the following
techniques:
Value Pricing (EDLP Every Day Low pricing):
Promotional Pricing:
Differentiated Pricing:

Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs add value to
customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling.
Place:
The Big Bazaar stores are operational across three formats hypermarkets spread over 40,000-45,000 sq ft, the Express
format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34
cities and towns across India with 116 stores. Apart from the Metros these stores are also doing well in the tier II cities.
These stores are normally located in high traffic areas
Promotion:
The various promotion schemes used at Big Bazaar include:

Saal ke sabse saste 3 din

Hafte ka sabse sasta din Wednesday bazaar

People:

Well trained staff at stores to help people with their purchases

Employ close to 10,000 people and employ around 500 more per month.

Well-dressed staff improves the overall appearance of store.

Process:

Big Bazaar places a lot of importance on the process right from the purchase to the delivery of goods. When
customers enter the stores they can add the products they which to purchase in their trolley from the racks. There
are multiple counters where bill can be generated for purchases made. Big Bazaar also provides delivery of
products over purchases of Rs. 1000.

Physical Evidence:

Products in Big Bazaar are properly stacked in appropriate racks. There are different departments in the store
which display similar kind of products. Throughout the store there are boards/written displays put up which help
in identifying the location of a product.

Q6) WHAT IS RETAIL? Put light on Global & Indian Brands

Word derived from French word retaillier to cut a piece/ break a bulk.

It implies first hand transaction with the customer.

Retailing is said to encompass the business activities involved in selling of goods & services to consumers for
their personal, family or household use Berman & Evans

Retail is the final stage of any economic activity.

Retailing includes all activities involved in selling of goods & services - final consumers personal, non-business
use.

A retailer or retail store is any business enterprise whose sale volumes comes primarily from retailing. Any
organization selling to final consumers whether it is a manufacturer, wholesaler or retailer is doing retailing.

& it does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet
or where they are sold in a store, on the street or at consumers home.)

About 40% of global retailers are yet to enter the country despite foreign direct investment allowed in Indian retail,
said a new study. These include global retail chains such as 7 Eleven, Costco and others, said a report by
property consultant CBRE.

While 30% of global retailers present in the country are from US, 19% are from Italy and 16 present are from the
UK.

Of the total global retailers present in the country 79% are present in Delhi, while the figure stands at close to 68%
for Mumbai and close to 50% for Bangalore, highlighting the significance of these tier I cities as the preferred entry
points for international retailers, it said.

In terms of most preferred catergories, nearly 80% of global beauty and cosmetics brands are present in the
country followed by 77% of food and beverages and 74% of fashion accessory brands, said the study.

While beauty and cosmetic retailers such as Mac, Clinique and Estee Lauder have a strong present in cities such
as Mumbai and NCR and gradually moved to cities such as Ludhiana and Amritsar, food and beverage retailers
such as KFC, McDonald's have expanded in both tier I and II cities, said the study.

Of the total brands present in the country, 35% belonged to luxury segment, 16% are mid end brands, 14% are
premium and 35% belonged to high end category.

Q.7) contribution of retail to indian economy?

Q.8) store image and store productivity with examples?

Store Image = Merchandise stocked + Promotional Activities + Customer Service

EG: 7-ELEVEN

US retailer having 4000 convenience stores

Why not 8-Twelve 7-Eleven stresses on store hours

Orange-Green logo Quality Freshness

Price saving signs conveys promotional environment

Smell of Cheese +Sight of sausages create certain atmosphere

SPACE PRODUCTIVITY

The more merchandise the customer are exposed to, that is presented in the orderly manner, the more they tend to buy

In-store Advertising and displays let the customer know that what is happening in other shopping areas and thus encourage to
visit that area

Retailers are spending more on in-store design, merchandise presentation, Visual displays and in-store promotions instead of
advertising

It is easy to make; that customer buy more who is already in the store than getting new one

Q9) key drivers of retailing in india?

Organised retailing is a recent development. It is the outcome of socioeconomic factors. India is standing on the threshold
of retail revolution. Retail Industry, one of the fastest changing and vibrant industries that, has contributed to the economic
growth of our country. Within a very sport span of time, Indian retail industry has become the most attractive, emerging
retail market in the world.
1. Growth of middle class consumers:
In India the number of middle class consumer is growing rapidly. With rising consumer demand and greater disposable
income has given opportunity of retail industry to grow and prosper.
2.Increase in the number of working women:

Today the urban women are literate and qualified. They have to maintain a balance between home and work. The
purchasing habit of the working women is different from the home maker.
3. Value for money:

Oganised retail deals in high volume and are able to enjoy economies of large scale production and distribution. They
eliminate intermediaries in distribution channel.
4. Emerging rural market:

Today the rural market in India is facing stiff competition in retail sector also. The rural market in India is fast emerging as
the rural consumers are becoming quality conscious.
5. Entry of corporate sector:

Large business tycoons such as Tatas, Birlas, and Reliance etc. have entered the retail sector. They are in a position to
provide quality products and entertainment.
6. Entry of foreign retailers:

Indian retail sector is catching the interest of foreign retailers. Due to liberalisation multinationals have entered out country
through joint ventures and franchising. This further is responsible for boosting organised retailing.
7. Technological impact:

Technology is one of the dynamic factors responsible for the growth of organised retailing. Introduction of computerization,
electronic media and marketing information system have changed the face of retailing. Organized retailing in India has a
huge scope because of the vast market and the growing consciousness of the consumer about product quality and
services.
8. Rise in income:

Increase in the literacy level has resulted into growth of income among the population. Such growth has taken place not
only in the cities but also in towns and remote areas.
9. Media explosion:

There has been an explosion in media due to satellite television and internet. Indian consumers are exposed to the
lifestyle of countries. Their expectations for quality products have risen and they are demanding more choice and money
value services and conveniences.
10. Rise of consumerism:

With the emergence of consumerism, the retailer faces a more knowledgeable and demanding consumer. As the business
exist to satisfy consumer needs, the growing consumer expectation has forced the retail organizations to change their
format of retail trade. Consumer demand, convenience, comfort, time, location etc. are the important factors for the growth
of organised retailing in India.
Q 10 ) Retail Franchising
A contractual agreement between a franchisor (a manufacturer, wholesaler, or service sponsor) and a retail
franchise, allowing the franchisee to conduct a certain form of business under an establishment name and
according to a specific set of rules.
Franchisor advantages

Cost effective growth

Commitment

Loss of ownership

Reduced involvement

Exclusivity

Co-operative advertising

Management and personnel skills

Collective bargaining

Loss of flexibility

Confidentiality
Franchisee advantages

Enhanced advertising

Reduced risk

Better financing

Economies of scale

Exclusivity

Skilled management

Franchisor disadvantages

Franchisee disadvantages

Control

Restricted right to sell

Reliance on reputation

Dependence

Restrictions on products

Q11) e- Retailing.

India has an internet user base of about 354 million as of June of 2015.[1] Despite being the second largest
userbase in world, only behind China (650 million, 48% of population), the penetration of e-commerce is low
compared to markets like the United States (266 M, 84%), or France (54 M, 81%), but is growing at an
unprecedented rate, adding around 6 million new entrants every month. [2] The industry consensus is that growth is
at an inflection point.[3]

In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities.
[4]

Demand for international consumer products (including long-tail items) is growing much faster than in-country

supply from authorised distributors and e-commerce offerings.

Largest e-commerce companies in India are Flipkart, Snapdeal, Amazon India, Paytm

Q12) 4- Gear Path : KSA Technopak

1. Stage of
Infancy

4. Period of
Consolidation

2.

3. Shift in power equation between

manufacturers & retailers

A four-gear path for the organized retail trade

suggested by KSA Technopz places India in the
second gear and predicts that it will match global
standards I 2010.

Gear one is the stage of infancy. The Super

Bazaar, as a conce] focusing on price control,
started during the inflationary period of the 1960
The development of the modern retail industry
began when Indian shoppe upgraded from local
shops to Super Bazaars. The open layout and
sel service concepts were new to the Indian
consumer, who was used to beir served while
shopping. Gear I was driven by entrepreneurs
like Subhiksl and Vivek's in the South, real estate
owners like the Rahejas (who starte

Shoppers' Stop) and marketers who integrated

forward from manufacturing to retailing (for
instance, lifestyle brands like Zodiac, Park
Avenue and Bombay Dyeing which opened
exclusive stores).
This gave the new breed of retailers an
opportunity to differentiate on the basis of good
quality products, services and ambience. These
retail formats raised the bar for consumers as far
as retail interface was concerned. The first level
also looks at retailers driving customer
awareness. The model primarily applies to
apparel more than any other form of retailing. For
instance, manufacturers in the food and grocery
business hardly get into retailing. It is completely
driven from the demand side and not on the
supply side.
The second gear is about meeting customer
expectations. It is consumer-driven, where
buyers are exposed to new retail formats. This
leads to first-generation retailers expanding to
multiple locations (Shoppers' Stop, Food World
and Subhiksha expand their networks as well as
their locations). Convenient timings, dial-n-order,
free parking, provision for trial and taste, prices
below MRP (maximum retail price), free home
delivery and 'no-questions-asked' return policies
are some of the features offered by these new
forms of stores. Moreover, some offer facilities
like taking care of the kids while the mothers
shop, vending machines and entertainment for
those accompanying serious shoppers,
convenient floor levels for the physically
handicapped and so on.
Pure retailers like Westside and Lifestyle provide
a unique selling proposition of choice and width.

They capture a higher share of the organized

retail formats and cut across all categories. For
example, Barista in coffee, Pizza Hut and
McDonalds in quick-service formats, Swarovski
in crystal, Swatch in watches, THS in home,
Agrani Switch in technology products, Apollo
pharmacy and The Medicine Shoppe in
pharmaceuticals and Ceat Shoppe in tyres.
Global retailers like Marks & Spencer and Mango
are evincing interest in India with their pilot
projects.

Gear II is a period of growth. India is currently in

this stage.

The apparel retail market in India is a little more

evolved than the rest. While apparel retailing can
be said to be in the second gear, other sectors
like electronics, food, etc. are still in the first gear.

Compared to the first two stages, the main

differentiator in the next two is the shift in the
power equation between manufacturers and
retailers. In the third and fourth stage retailers
exert more influence than manufacturers and
therefore have stronger bargaining power.
Furthermore, the third 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. Cost
savings in terms of initiating vendor partnerships
and increasing stock turns take priority. Retailers

expand into non-metros and look at various

customer loyalty programmes Many retailers in
China and South Asia are in this phase.

A distinctive mark of this phase is efficiency:

profitability through heav; investment in the backend. Aldi, a grocery chain in Europe and the US,
is ; good example of retail efficiency and can be
roughly placed in the thin gear.

The fourth and last gear is a period of

consolidation. The organize< sector acquires a
significant share of the retail pie. It is the start of
a cross border movement, with mergers and
acquisitions gaining in importance Retailers in
North America and Europe like Wal-Mart, Tesco,
M&S am Carrefour are in gear four, where they
are looking for cross-bordei movement.
Furthermore, companies start adding more
stores and newei markets to their portfolio. There
is a fair degree of domestic consolidation as well.
Sourcing gets done globally.

Thus retailing in India has a very long haul

ahead. The process ol getting into newer forms
of purchasing has been gradual because ol
traditional buying habits and the manner in which
traditional retailers manage relationships. There
is no specific international format or an existing
role model that can be easily adapted and
applied in the Indian context. India is going
through that phase in retailing which the US
experienced in the eighties and early nineties. In

order to develop the right proposition one needs

to go through the learning curve. The growth and
development oi organized retailing in India will be
driven mainly by two factors low price and
benefits the consumers can't resist. Economies
of scale will drive down the cost of the supply
chain and increase the benefits offered to the
customer. From product-based shopping, the
emphasis will shift to experience-based
shopping.

Q13) various types of Store Layouts

Grid Layout

Best used in retail environments in which majority of customers shop the entire store

Can be confusing and frustrating because it is difficult to see over the fixtures to other merchandise

Should be employed carefully; forcing customers to back of large store may frustrate and cause them to look
elsewhere

Most familiar examples for supermarkets and drugstores

Curving/Loop (Racetrack) Design

Major customer aisle(s) begins at entrance, loops through the store (usually in shape of circle, square or
rectangle) and returns customer to front of store

Exposes shoppers to the greatest possible amount of merchandise by encouraging browsing and cross-shopping

Racetrack Layout

Major and minor loops with multiple entrances & multiple sight lines, draws shopper around the store, encourages
exploration, impulse buying

Loop with a major aisle that has access to

departments and stores multiple entrances.

Draws customers around the store.

Provide different site lines and encourage

exploration, impulse buying

Used in department stores

Free-Flow Layout

Fixtures and merchandise grouped into free-flowing patterns on the sales floor no defined traffic pattern

Works best in small stores (under 5,000 square feet) in which customers wish to browse

Works best when merchandise is of the same type, such as fashion apparel

If there is a great variety of merchandise, fails to provide cues as to where one department stops and another
starts

Spine Layout

Variation of grid, loop and free-form layouts.

Based on single main aisle running from the front to the back of the store (transporting customers in both
directions)

On either side of spine, merchandise departments branch off toward the back or side walls

Heavily used by medium-sized specialty stores ranging from 2,000 10,000 square feet

In fashion stores the spine is often subtly offset by a change in floor coloring or surface and is not perceived as an
aisle

Q14) Global Retail Scenario?

Retail sales worldwideincluding both in-store and internet purchaseswill reach $22.492 trillion
this year, according to new figures from eMarketer. The global retail market will see steady growth
over the next few years, and in 2018, worldwide retail sales will increase 5.5% to reach $28.300
trillion.

China and the US are by far the worlds leading ecommerce markets, combining for more than 55%
of global internet retail sales in 2014. Chinas growth over the next five years will widen the gap
between the two countries, and China will exceed $1 trillion in retail ecommerce sales by 2018,
accounting for more than 40% of the total worldwide. The US will maintain its position as the
second-largest retail ecommerce market in 2018, totaling nearly $500 billion that year, while the
UK will account for about one-quarter of that figure, landing in a distant third place

The other two largest ecommerce markets, China and the UK, have much higher proportions of
online-to-total retail sales than the US, and ecommerce trends in each market are unique. For
example, digital buyersconsumers who purchase online at least once during the yearwill
represent only 27.5% of Chinas population in 2014, while more than 10% of all retail purchases
occur via the internet. This points to the fact that consumers in China who buy online do so often.

Q15) Store Formats with hierarchical diagram? Explain any 4 types.

1. Product Factors:

Retail store formats can be classified on the basis of the number of products sold by the retailer and the range of
products in each category.

Narrow and Deep Product Assortment:

The store has one product category or a very narrow, related range of products. The store however stocks large
amount of variety of these products. The variety available in this store format is unparalleled and is the competitive
criteria among these stores.

These are sometimes called specialty stores. The price range in these stores could either be narrow, catering to a
specific market segment, or it could be broad covering a large number of segments. Product categories in which
this format is popular are footwear, clothing, furniture and furnishing.

As the economy of a country develops, people will want more sophistication and variety in greater number of
categories and this can be provided only in this type of format. This format can afford specialization of retail
personnel which will be necessary in handling customers enquiries as categories develop.

Some specialty stores have a very limited number of product categories (typically one) and the complete range in
that category is available under one roof. These stores can afford lower prices because of their influence on the
manufacturers as they sometimes control the market of the category.

For instance, IKEA is one such store that stocks every type of furniture, in all price ranges and usage. Called
category killers, these stores eliminate competition in the specified category.

Wide and Shallow Product Assortment:

The store has a number of products, but stocks a limited variety of all these goods. The store usually stocks
related items, for instance, lifestyle goods for the whole family that include clothes, books, home decor, jewellery,
cosmetics, accessories, stationary, toys, etc.

For instance, in India, Ebony Shoppers Stop are such stores. This store format is gaining wide acceptance in
India as the store acts as a one- stop-shop for the complete family. Usually such stores are also accompanied by
food joints and entertainment plazas that provide an ideal day out.

Such formats always face a conflict between the number of product categories they should store and the range in
each category. If the number of product categories is large, chances are that the range in each one of them would
be smaller because of space constraints or else it may become too unwieldy.

But this arrangement will leave a lot of customers dissatisfied as they may find the range too limited. The other
option is to have limited product categories and a wide range in each one of them. But this will reduce the number
of occasions that the customer will find a reason to walk into the store.

These store formats will ultimately be targeted to specific segments. One such store targeted towards the up
market will stock premium brands in all categories, whereas the down-market store will stock popular or less
premium brands.

Hypermarkets:

The evolution of hypermarkets has resulted in wider and deeper product assortments for customers. These retail
formats are characterized by very large retail spaces that are leased out to various brands. These huge retail
formats have many single brand stores in many of the product categories.

The choice of the brands offered conveys the depth of the category, image of the store and reflects the intended
target market.

2. Location Factors:

One specific type of specialty store is the grocery store or the chemist, whose critical factor for success is the
proximity to the customer. These stores operate in those product categories for which the customer desires
convenience of location.

The products may be urgently required like medicines. Some of these products, like grocery items, vegetables and
fruits, have to be bought frequently as they would be spoiled if they were stored for a long time.

The importance of a stores proximity to customers has not waned even with improvement in transportation and
more families owning vehicles because, in most households, both husbands and wives are working longer hours.

Purchasing for the household is done only during weekends. Such families need nearby stores when they have to
purchase fresh grocery items during the weekdays. Therefore such stores should stock only those items whose
purchases the family cannot postpone till the weekend. These stores can have arrangement to deliver the items
on a regular basis to the households.

Families make major purchases for the household during the weekend. But they often combine the purchasing of
supplies with an entertainment trip. The family would watch a movie and buy its supplies on a common trip.

For such excursions, location of stores is not important in terms of proximity to customers. Proximity to customers
may even become a liability, because for most people, the idea of entertainment is not walking into the theatre or
restaurant which is next door.

Customers would like to travel some distance for their weekend trips. But location still remains important. The
store has to be located at places where the customers are most likely to visit during their weekends. Shopping and
entertainment have to be packaged together for customers who do not have the time to shop during weekdays.

3. Price Factors:

Some retail stores may charge normal or list prices, while some may charge lower than list prices on a regular
basis. Retail stores that offer products on the list price do not give discounts on a regular price, though they
engage in promotions.

All the stores mentioned above charge list prices from their customers. But there are stores called discount stores
which sell products at low prices daily.

They can do this by bulk buying, accepting low margins, managing costs tightly and choosing locations where real
estate prices are low. These discount stores get price concessions from manufacturers because of the high offload
from these stores.

Q16) FDI in Indian Retail.

Foreign Direct Investment in Retail

India with a population of more than one billion has become a magnet for many international industries
that found their growth to be stagnating due to a saturated domestic market in their countries.

With the government showing inclination in allowing FDI for high end and grocery retailing, the idea of
permitting FDI in the Indian retail sector is slowly gaining momentum.

The Government may initially allow overseas retailers to set up shops only in major cities.

Again, there will be limits on the number of outlets for each company, the size and nature of the
outlets.Besides, FDI will be allowed in phases and in select areas only, something that China did when it
allowed FDI in its retail sector back in 1992.

ADVANTAGE

Change in competitive landscape

Supply chain improvement

Investment in technology

Manpower and skill development

Tourism development

Greater sourcing from India

Up-gradation in agriculture

Efficient small and medium scale industries

Growth in market size

Greater productivity

Disadvantage Competition for Indian retailers

High cost of capital for Indian retailers

An analysis on the various aspects of permitting FDI in the Indian retail sector is presented below.

Q.17) hollander's accordian theory?

Player either have Open Accordions representing general retailer with broad product ranges.

Closed Accordions - indicating narrowing of range focusing on specific merchandise.

That at any point of time any retailer could outnumber the other.

This analogy illustrates complexity of Retail scene, & the way different attitudes to successful retailing will come in
& go out of fashion at different times.

Q18)MIS in Retail.?

Management information systems have several applications in the retail industry. MIS is the systematic use of
technology and people to manage the flow of information. In retail, MIS is used for point-of-sale data collection,
logistics, inventory control and internal communication, all of which affect retail operations and marketing.

CRM and POS

Customer relationship management, or CRM, is a prominent marketing system in which companies use point-ofsale terminals to set up customer accounts and collect data on their relationship history. Front-end service
associates perform transactions, and your relationship software database collects and stores the information.
Using CRM helps you leverage your core customer relationships, which is key to the success of small retailers
competing with large chains. You can use customer data become more familiar with your top customers, to offer
targeted marketing promotions and to improve your total customer experience. For instance, customers who have
purchased certain products are good targets for renewal or upgrade offers when the opportunities arise. You also
could send direct mailers to customers you haven't seen for a while.

Logistics

Small retailers have a distinct disadvantage over large chains that use expensive technology to manage the flow
of information and goods throughout the retail distribution process. You can keep up by linking your store
computers directly to key suppliers or your distribution center if you have multiple locations. This allows your
vendors to pull shipping data automatically from stores for order fulfillment. Once orders are ready, vendors can
submit shipping orders electronically to stores to alert them that the merchandise is on the way. Store computers
show product in stock at the same time they arrive physically.

Internal Communication

MIS technology offers several benefits for internal communication. You can program your store computers to
display daily messages and important memos for all staff members to read. If you have employees who work at
different times or at multiple locations, they can communicate via email with other employees or stores.

Inventory Control

Closely related to logistics and distribution is inventory control. At the store level, MIS technology allows retail
associates to more efficiently update pricing and conduct inventory audits. In the past, an employee went around
manually to put sticker prices on products. Scanners then evolved to the point that employees could scan the new
price for each product. Today, retailers often have electronic scanners synched directly to their computers that
allow them to simply change the store-level price on a particular item of stock rather than correct each individual
product.