ARTICLES ON RETAIL MANAGEMENT

Evolution of Online Retail

Competing in a high-pressure business scenario has become a challenge Ior retailers. As an
eIIective alternative sales channel sellers are looking at the internet, which gives them direct
access to target customers. Online retailing (also known as e-tail) is a web-enabled interIace
between a retailer and its target consumers Ior selling products and services on the web with the
Iacility oI ecommerce. These kinds oI retailers are also known as e-tailers. Almost all big
retailers are now electronically present on the World Wide Web.
AIter the invention oI WWW (World Wide Web) web browser in 1990's, release oI Mozilla
Netscape navigator in 1994 and opening oI Iirst online retail by Pizza Hut, the online retail has
gone through a lot oI transIormation and today it is still developing in a very diversiIied way. E-
tail has become very popular in the areas oI apparel, arts and handicraIts, books, car rentals,
computers and electronics, cosmetics, Iinancial services, giIts and novelties, etc. This retail could
be an e-store, internet shop, web shop, web store, online store or virtual store.
Some oI the major advantages oI e-tail which makes it popular among the retailers are low
investment cost, direct access to target customers and quick return on investment. This kind oI
retail Iormat helps the retailers to serve their customer quickly and more eIIiciently by oIIering
them a detailed portIolio oI products and services. On the other hand, availability oI the point oI
transaction data helps the retailers to analyse and interpret their target customers. It has become
the most eIIicient way to oIIer valuable inIormation to the customers like discounts, promotions,
new and existing products as per the customer requirements and past shopping behaviour.
Availability oI plenty oI inIormation about the products has increased the conIidence level
among the consumers.
Online retail industry in India is likely to be worth ` 70 billion by 2015 according to Associated
Chambers oI Commerce and Industry oI India. The buying-selling trends Irom leading e-tail
portals indicated that online retail market currently stands at ` 20 billion and is growing at a
steady annual rate oI 35. Among Indian states, Maharashtra has the best IT inIrastructure, both
Irom the retail industry perspective as well as consumers. Mumbai accounts Ior a 24 per cent
share in India's e-commerce transactions. Some oI the popular Indian online retailers are Staples
Inc, Home Shop 18, Indiaplaza, eBay India, Future Bazaar, India Times, RediII, etc. Easy
availability oI broadband services and increasing internet penetration is acting as a support to the
growth oI online retailing. The increasing purchasing power oI the Indian customers is set to
bring online shopping boom in India. One oI the latest additions to online retail is advertising
through social media websites like Facebook, Twitter, Google, etc. Apart Irom website
technologies, retail leaders are trying to adopt video, mobile and social media strategies with a
view to provide richer, more engaging and user Iriendly experience.
AIter bringing revolution in the metro cities, online retailing is set to create sensation even in the
rural areas. Furthermore, with the opening up oI the Indian economy in relation to change in the
FDI strategies, it is a wake-up call Ior retailers that have done too little to develop an online
strategy as retail giants like Tesco, and Amazon have already started actions and strategy
implementation in the Indian retail market.
Source: http://EzineArticles.com/
Image Courtesy:
casestudy.co.in
indianexpress.com
````````````````````````````````````````````````````
Promotional Analysis
Consumers in today's dynamic economy have high expectations, and their behavior is
unpredictable. It is critical to understand what promotional oIIers are presently having the
highest impact. Promotional analysis is a technique oI evaluating success or Iailure oI a
promotion using past time series data. It can be understood as discovering a correlation between
sales patterns and marketing eIIorts which includes promotions oIIered and advertising. The
objective oI promotional analysis is to help a retailer understand the impact oI past promotions
and hence Iormulate Iuture strategies which could be applied and adapted to produce proIitable
results.

Types of Promotions
"Promotions" in any industry is a vital ingredient oI marketing plan to retain best customers and
to attract new ones. The retail market Iaces increasingly stiII competition, and is Ilooded with
various promotional oIIers to drive-in traIIic. Hence, the consumer today is leIt with a large
range oI promotions to choose Irom in almost all the product categories. To list a Iew:

1. Quantity/Product concession

1) Buy one get one Iree
2) Innovative cross-sell and up-sell strategies
3) Free samples to test new product
4) OIIering promotions on particular day oI a week to drive sales
5) Pseudo personalized promotions targeting particular customer segment
(students/promotions linked to age, height, gender, proIession)

. Price discount

1) Some per cent oII per item
2) Fixed amount oII per item
3) Discount vouchers

3. Ads

1) On-line/e-mail coupon
2) Mobile coupon

4. Shipping promotions

1) Free delivery oI product
2) Money oII on delivery item by means oI a selected ship mode

These are some oI the promotions that may lure customers to purchase a product. In spite oI such
attractive oIIers, there is a high probability that a customer may not avail or take advantage oI
every oIIer that comes their way.

What retailers should know before launching a promotion?

Mere sales are not enough; the eIIectiveness oI a promotion oIIered should be measured in order
to draw more proIit out oI the oIIer given to customers. In order to do so, customer behavior
should be analyzed. Retailers oIten Iail to realize that a consumer can have their own parameters
like age, gender, requirement, income and preIerence to evaluate a promotion.

nderstanding the kind oI promotions to be launched plays a key role to category growth.
ReIerring to the past promotions, retailers should bear Iew points in mind beIore launching any
promotion:

1. How Irequently should a promotion be launched?
2. Which categories respond the most to which promotions?
3. What product combinations can be promoted together?
4. To promote the entire category or to concentrate on only key products?
5. What sales rise can be estimated at each concession level?
6. How does a retail price change in product aIIect traIIic and overall revenue?
7. What promotional plan to be designed to meet deIinite sales and volume targets?
8. Do price increase/decrease on some items negatively impact sales oI other items?
9. How to drive new traIIic to stores?
10. Based on demographics, how to vary promotional strategies across various stores?
11. What are the most eIIective promotions to reach target customers?

Once a retailer understands the direct-indirect impact oI promotions, they can:

1. Increase proIit by optimizing coupon usage, oIIer personalized packs to targeted
customers, decide on concession prices, buy-one-get-one schemes, displays, ads etc
2. Add to revenue by avoiding unnecessary price reductions and discounts
Tailored promotions: Designing sets oI oIIers that are collectively more eIIective than
individual oIIer depending on segmentation, analysis oI shopping behavior, demographic
inIormation

The idea is to provide the right customer with the right promotions.

Effectiveness of a promotion

Promotion tactics aim to stimulate customer interest in a product. It was a common notion at
some point in history that the nature and degree oI promotional activity is driven by market
knowledge with a blend oI experience and gut Ieeling. This was also true. However, since the
competition in market has become increasingly stiII, the promotions launched by a retailer needs
to be unique, innovative and designed to bear IruitIul results. Retailers are being conIronted with
painIul realities regarding the eIIectiveness oI current promotions, as the type oI promotions that
have done well Ior them in past may no longer be as eIIective. Almost all retailers use oIIers that
they are unsure will result in a positive ROI (Return On Investment). This has resulted in
degradation oI customer conIidence.

Promotions are expensive as there are certain hidden costs such as advertising cost and loss oI
revenue when discount is oIIered to customers. Hence, it becomes mandatory to evaluate
promotional perIormance and execute it well. Moreover, consumer expectation has increased
Irom day-to-day stuII to liIestyle goods with subject to some promotional oIIer at some point oI
time. Thereby it is very important Ior a retailer to stand up to customer expectations and oIIer
them with innovative promotions as purchasing decisions depend on this Iactor. It thus becomes
essential to use historic inIormation in order to study customer behavior, sales pattern during past
promotion and product perIormance.

ow to do promotional analysis?

Econometric techniques such as Iorecasting, time series analysis, intervention analysis,
predictive analysis, what iI scenarios, marketing mix model and other techniques are used to
analyze data to produce powerIul insights and decide on promotion and pricing strategy.
1. Retailers capture detailed data customer-wise which helps in giving insight not only about a
product and their brands purchased but also the socio-demographic nature and buying
pattern oI a customer. Various parameters can be judged using such approach.

1) Whether the promotion targets new customers
2) Repurchase history
3) Cannibalization
4) ShiIt Irom competitor brand/product
5) A loyal customer who would have purchased the product even without the promotion.

In this case the retailer tends to lose margin. Such loyal customers should not be considered in
analysis.

This above inIormation can be clubbed and hence can be compared with sales liIt data to track
perIormance oI promotion.

2. Intervention analysis can be another way to analyze historic sales data with respect to
promotions and thus help in Iraming Iuture promotions. Intervention analysis technique
rests upon historical data and judgment oI a practitioner. The end result using intervention
analysis is that practitioners have better understanding oI their past promotions and hence
can design near accurate attractive Iuture promotions.

Thus, promotional analysis means not just oIIering any promotion. For e.g.: shampoo cannot be
promoted with biscuits. Customers who tend to buy biscuits lean to buy other snacks like cake,
cookies etc. To promote slow moving shampoos, a best promotion plan would be to oIIer them
with conditioner or body wash. In this manner we need to analyze customer behaviour, product
perIormance and product combination. Based on the promotional analysis, retailers can optimize
the perIormance oI Iuture promotions, restore normalcy in sale, clear stocks, promote items as
per the season and Iestival, drive proIits through improved sales, increase brand awareness as
well as continue to have strong relationship with loyal customers.


````````````````````````````````````````````````````

ow to Make Your Retail Store Famous
Make your retail store Iamous and customers will beat a path to your door. That is what most oI
us think at least. We see Iame as delivering Iinancial success.
OI course, this is not true Ior all Iame. What I am interested in this article is Iame Ior the right
reasons, Iame which can be turned into viable commercial success. The other Iame, notoriety Ior
wrong doing oI some sort, is usually not good Ior any retail business.
The Iame I am talking about is Iame which attracts traIIic which converts to money through your
cash registers. For a retail business this is the only Iame which matters.
So how do you make your retail business Iamous?
Here are some suggestions Ior generating Iame Ior your retail store. Some Iocus on big Iame
while others Iocus on more narrow, local, Iame.
e a larger than life personality. Live and act large and beyond what people expect. This
means living the liIe oI a personality. Some people achieve this by dating Iame, others achieve it
by constantly being in the right place. This type oI Iame can be somewhat Ialse but it can also
attach an aura oI success to you business.
e a superman. Help out in your community and the broader community beyond. When there is
a need discussed on talk back radio, call up and oIIer to help. When there is a story in the local
newspaper which indicates help could be useIul, oIIer to help. When there is a telethon on TV,
make a big and bold donation. Get known as the go to person Ior those in need.
e large online. II your retail store operates in a special interest niche, build a strong online
presence with a blog and website where you live beyond the size oI your business. Take on a
new personality oI almost super hero proportions by oIIering advice and help. Get known Ior
always being available, always having an opinion and being the genuine expert in your Iield.
e heard. Contact newspapers and TV stations with relevant comments on topical stories. Pitch
yourselI right and you could become the go to person Ior comments on your area oI expertise.
This media coverage makes you Iamous and trusted.
ecome the home of something. Make your retail store stand Ior something relevant to your
niche, a product or service which sets you apart, makes you special. You could serve the largest
oI something. There could be a challenge associated with what you do or oIIer which gets
customers in vying Ior the honour. This type oI competition gets talked about.
Stand for something. This applies to all points. Your retail business will not become Iamous iI
it does not stand out by standing Ior something. So, start with your business beIore you embark
on a mission to make your store Iamous.
Being Iamous makes commercial sense iI done right and in a way which connects with people in
your retail niche. Spend time planning and go about this in a way which supports rather than
detracts Irom your business.
Go on, make yourselI and your retail store Iamous. Enjoy liIe in the spotlight.

Article Source: http://EzineArticles.com/5203362
``````````````````````````````````````````````
ow to Cut Employee Theft in Retail
Employee theIt can cost a retail business a signiIicant amount oI money iI leIt unchecked.
The practical theIt reduction tips in this article have been developed over years oI helping
retailers cut the cost oI theIt. Most can be implemented without cost.
The key to cutting theIt is to have a plan and to stick with it consistently.
1. Pay above award wages. The quality oI your employees is up to you. II you're doing
your job you have good employees. Value them. Pay above award. HR and business
psychology experts say this will reduce theIt.
2. Talk to them. Ask Ior their honest comments about the business. The more they Ieel,
genuinely Ieel, valued, the less likely they are to steal Irom you.
3. No employee bags at the counter.
4. Clear refund policy. Type the policy up and put it on the wall Ior customers and
employees to see. Cover, Ior example, age oI transaction, management approval, that you
need their name, address, phone number and signature - such requirements will stop
abuse.
5. Offer good discounts to employees. Let employees buy products Irom you at your cost
or just above it. This respects them as part oI your team and it reduces the chances oI
them being tempted to steal what they want Irom you.
6. on't take cash out of the til yourself. II employees see you take money out Ior items
like a coIIee or your lunch they will Ieel invited to do the same.
7. Roster mix up. Change your roster regularly. It is common that a roster change will
show you a theIt problem you never thought was there.
8. Roster rules. Don't have Iriends working with Iriends iI they are the only ones rostered
on.
9. Speed humps. Have a day where you turn on receipts Ior ALL customers. Then a day
where you require that everything is scanned (as opposed to using hot keys and the like).
These changes will keep employees and customers oII guard and make it easier Ior you to
spot problems. It will also keep you on your guard and that's good Ior the business.
10.Spend more time at the counter. The Iurther you are Irom the action in your business
the greater the opportunity Ior you to be ripped oII. Spend time where the action is -
unexpectedly.
11.alance the register during the day. Do this every so oIten. Again to keep people on
their toes. It is also good practice.
12.on't let employees ring their own purchases up.
13.on't let employees sell to family and friends.
14.Your local council. Many local councils oIIer theIt prevention training and help as do
some local police. (Local U.S. police stations are considerably more active in this area.)
15.eware of popularity. There is anecdotal evidence that the more popular the employee
the more likely they are the one stealing Irom you.
Choose the ideas which you Ieel will work Ior you and give them a go. Taking some action is
better than doing nothing.

Article Source: http://EzineArticles.com/4256820
``````````````````````````````````````````````
ow o I Start My Own usiness In Retail?
Starting a retail business has been one oI the harder ways to start a business, and the statistic that
"98 oI businesses Iail in their Iirst year" has a lot to do with this business model.
Here's the reason why... Retail businesses usually require a large sum oI money to start. I'm
going to share a method with you Ior starting a retail business that isn't that costly, but let's Iirst
look at how retail businesses were usually operated beIore.
Other than having to pay Ior your monthly lease, you have to worry about hiring employees,
hiring a manager (iI you don't want to be at the store every day), buying stock, getting a
merchant service and computer system... not to mention having to worry about your employees
taking you Ior whatever you got in your stock or your cash register.
All oI these risks and expenses end up doing a number on the business owner iI they're not
prepared to handle them... and unIortunately, 98 oI business owners never think oI the true
importance oI handling these things.
The basic rule oI thumb is, iI you're trying to start a retail business, you need to have AT LEAST
6 months worth oI your monthly overhead saved up and available Ior use.
The interesting thing is though, the majority oI these obstacles can very easily be overcome... IF
you think about them in advance and prepare yourselI Ior each one oI them.
And to bring this into better perspective Ior you, I'm going to tell you a story about a very well
known business person by the name oI T. Harv Eker.
He's known Ior a wide array oI accomplishments, but this one is going to be speciIically about
when he started up his Iirst business, Fitness Land.
Fitness Land was a retail exercise equipment shop that systematically sold Iitness equipment to
people. With his system, he was able to open up 11 locations in less than 3 years and sold halI oI
his shares to the Heinz corporation (the ketchup people) Ior $1.6 Million.
Here's the Iull story...
When Harv decided to start up Fitness Land, he was dead broke. He had absolutely no money to
start his business with... so he borrowed $2,000 Irom one oI his credit cards to pay Ior the 1st
month and last months' rent on his retail space.
And since he didn't have any money Ior his products, he went to the product manuIacturer with a
very clever oIIer.
He asked the manuIacturer iI they could lend him one oI their machines Ior a couple oI hundred
dollars and he promised that he would come back with a large order soon.
So the manuIacturer decided to try it out, and then lend him the one machine. Here's what Harv
did with that one machine... (this is the power oI creativity)
He had about 600 square Ieet oI space to work with, so what he did was he cut oII the majority oI
the space so that people couldn't access it. He put the machine behind the line that people
couldn't cross, put up a sign (which was just a piece oI cardboard with permanent marker writing
on it), and anyone who came in his store interested in the product would see a demonstration oI
how it worked.
Harv would get on the machine which was behind the dividing line, showed the potential
customer how it worked and iI they were interested here's what he would say...
"Well, as you can see, we only have this one machine in stock because we JUST sold out... so
heres what I can do for you. Theres a shipment coming in tomorrow and you can have one of
those machines for the full price of $567... or you can reserve one from the next shipment for
$100 but that will come in two weeks"
So naturally, most people wanted the earlier shipment. He would collect Iull payment BEFORE
he placed the order with his manuIacturer and delivered the product to the customer. (This
concept is very important... It's called "no receivables". Collect payment EFORE you deliver
your product)
He told every person who wanted the machine to come on Saturday between 1pm - 2pm to pick
it up.
Now, here's where the cool part comes in...
When the people showed up to pick up their equipment, they Iound themselves in the middle oI a
battle-zone type environment, trying to Iind an opening in the large crowd oI people so that they
can pick up their stuII. And I'm willing to bet that 100 oI all those people were thinking in the
back oI their minds "Wow... I'm really glad I made it on time to get mine. This MUST be a good
product iI they have THIS many people here"
And everyone who hadn't bought the product yet, was looking at the crazy crowd oI people
stuIIed in a tiny 600 square Ioot space, thinking, "What the hell is going on over there? I should
check it out once the dust settles"
Those two thought processes were EXACTLY what Harv was trying to build. An intense
curiosity Ior what he was selling.
It gets better though...
Within a Iew weeks, the police told Harv that he couldn't do business iI he didn't have a Iew
police oIIicers there to direct the traIIic in and out oI his little store. Can you imagine what that
does Ior your marketing? To have police oIIicers directing traIIic in and out oI your store?
That's awesome.
So using this same system, he brought in several diIIerent pieces oI exercise equipment and sold
them all like clockwork. And seeing that his system was working, he decided to open up a
similar location in a diIIerent part oI town and have his managers run it.
Using this simple, yet ingenious system, he was able to open up 11 locations and the rest is
history...
There are some amazing golden nuggets in this speciIic article. My recommendation is Ior you to
go back and read the whole thing again... take notes where necessary.
II I were to ever start my own business in retail, I would Iollow this system. In my opinion, as
long as you're willing to put in the work, there really is no way that this system can Iail a retail
business.
You DON'T need a lot oI cash laying around to start a retail business. All you need is some
ambition and hard work.

Article Source: http://EzineArticles.com/6548706

``````````````````````````````````````````````