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An Introduction to Retail Marketing Aug 2011

An Introduction By

253079 Srujana Nalam 253092 Vijay ram Mohan B. 253093 Yahya Husain

An Introduction to Retail Marketing Aug 2011

RETAIL ?

What do these words mean?


The

word Retail is derived from the French word, adjoined with the prefix and means to cut off and redo or attach it together again.

Here, retail deals with the phenomenon of purchasing large quantities from one point and selling smaller quantities at another store/point/outlet

be it in any form, for example at a or a .

An Introduction to Retail Marketing Aug 2011

MARKETING ?

Marketing is the art of selling

The process that deals with the process of

that the retailer intends to sell or trade in. (Kotler, 2003, p.5)

An Introduction to Retail Marketing Aug 2011

AIM

The aim of Retail Marketing is to the needs of customers who buy at/in retail stores and that match them and when the occasion presents itself, to the collective consumers
and product. in a particular

For example, Levis, a brand famous for Mens clothing that has standalone outlets and also has their goods being sold at Shoppers Stop, a chain of Retail stores across the country.

An Introduction to Retail Marketing Aug 2011

Role of a Retailer

Manufactures Products

RETAILER
Risk of Selling from Producers Guarantee to the products he sells.

Purchases and Consumes the products.

Producer

Purchaser

In the process of justifying this dual role, the retail system of trade is often credited with the of goods and services. The growing trend of global chains from consumer goods (Gillette) to restaurants (McDonalds) is a prominent display of the standardisation benefits that retailing adds to the society.

An Introduction to Retail Marketing Aug 2011

Factors affecting RETAILERS

The and environmental forces that shape the Retail industry and in implication the marketing efforts are as follows: In the environment, the customer- PURCHASER, intermediary- PROCURER and the supplier-PRODUCER define the dynamics. Each of their relationships with the retailer is dependent on the external uncontrollable factors of the .

Competition however is another factor that affects retailers and is often not under their immediate control area. From a broader perspective, the factors that affect the retailer are the demographic, economic, technological socio-cultural and politicolegal market environments.

An Introduction to Retail Marketing Aug 2011

Types of Retail Businesses

Depending on the type of goods sold, the retail market is divided into :
Food products and Fast Moving Consumer Goods (FMCG) which are consumables.

Soft Goods such as Garments and miscellaneous lifestyle goods such as shoes, bags, etc. with transient lifecycles. Hard Goods such as Electronic appliances, furniture, automobiles which have a longer lifecycle.

An Introduction to Retail Marketing Aug 2011

Types of Retail Businesses

where the producer directly retails his products and is the wholesaler as well as the retailer.

Ex: Sony Electronics Showroom

or large scale retail shopping centres which contain an entire range of products of different brands in a combination of one or all the afore mentioned types.

Ex: Croma, Reliance Digital, HyperCITY

are stores which have lifestyle and consumer goods that replace the traditional grocer and also add the benefits of items from other categories. Ex: More,

have four or more stores across different places selling the same products and are controlled centrally. These multiple shops
can have their own distribution networks and warehousing.

Spencers

Ex: Shoppers Stop, eZone

An Introduction to Retail Marketing Aug 2011

Non Store Retailing

Retailing without stores requires intensive marketing strategies and can be of many types.

Though they need warehouses, the costs of running a store are removed and distribution are reduced.

An Introduction to Retail Marketing Aug 2011

Franchising

Is a widely adopted retailing practice which is both an influence and outcome of the .
Enterprises are taken or franchised by a franchisee who/which follows conditions regarding set by the franchiser.

The franchiser or the company giving out the franchise has benefits of publicity for the company and reduction in running expenses of expansion. The franchiser gains an already built up brand image that can be counted upon to bring in business.
Ex: Soft goods/ services - Restaurants such as Pizza Hut, Hard Rock Caf, Hard Goods Automobiles such as Hyundai, BMW.

An Introduction to Retail Marketing Aug 2011

Marketing Strategies
Physical Location and Layout of the store

Brand Positioning vis a vis the

competition and target


market

Marketing Mix

Creating a USP

Promotion Advertising , In House events, Discounts

Sales forecasting

R&D Investment and Retail Policies

An Introduction to Retail Marketing Aug 2011

Organizational Structure

CEO/ Owner
Operations/ Store Administrati on

Merchandising

Strategic

An Introduction to Retail Marketing Aug 2011

Trends
and

GLOBAL The mantra now is about , creating chain stores and large scale retail department stores with increasing focus on the Customer experience and service.

Indian Retail Trends In the past few decades growth in Retail industry in India has increased to about 33-35% of the GDP of which only 2-3% belongs to the organised sector.
12%

Western companies are expanding in Asia in the sectors :


Retail Markets Categorisation

88%

An Introduction to Retail Marketing Aug 2011

References

Websites: www.ehow.com www.articlesbase.com http://business.mapsofindia.com/india-retail-industry http://www.slideshare.net/hemanthcrpatna/retailmarketing


Books: Retailing Management byMichael Levy and Barton A Weitz McGraw Hill, 2008 Marketing Management by Philip Kotler, 2003 Survey of Indian Retail Sector - Corporate Catalyst India, June 2011

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