RETAILI NG

Retail is the final stage of any economic activity. Retail occupies an important place in the world economy. The word retail comes from the French retaillier, which means to cut off a piece or to break bulk. Retailing is the set of business activities that adds value to the products & services sold to consumers for their personal or family use. People often think of retailing as the sale of products in stores, but retailing also involves the sale of services. RETAIL MAYBE REDEFINED AS THE FIRST POINT OF CUSTOMER CONTACT.

DEFINITION
Retailing- Retailing includes all the activities involved in selling goods or services to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing.
Philip Kotler

 Retailer- dealer or trader who sells goods in small quantities or one who repeats or relates

A RETAILERS ROLE IN A DISTRIBUTION CHANNEL Retailers attempt to satisfy consumer needs by having the right merchandise, at the right price, at the right place, when the consumer wants it. Distribution channel is a set of firms that facilitate the movement of products from the point of production to the point of sale to the ultimate consumer.

EXAMPLE OF A DISTRIBUTION CHANNEL-

MANUFACTURI NG

WHOLESALE R

RETAILER

CONSUME R

FUNCTIONS OF A RETAILER
1. Providing an assortment of products or services; 2. Breaking bulk; 3. Holding inventory; 4. Providing services

PROVIDING ASSORTMENTS
Supermarkets often carry 20,000 to 30,000 different items made by 500 companies. Offering an assortments enables their customers to choose from a wide selection of brands, designs, sizes, colors & prices in 1 location. If manufacturers had its own stores, consumers would have to go to different stores to buy their groceries!!!

BREAKING BULK To reduce transportation costs, manufacturers & wholesalers typically ship cases to retailers. Retailers then offer the products in smaller quantities tailored to individual consumers. this is called breaking bulk. Its important to both manufacturers & consumers because its cost effective to the manufacturers & easier for consumers to purchase in smaller quantities.

PROVIDING SERVICES
Retailers provide service that make it easier for customers to buy & use products. They offer credit so consumers can have a product now & pay for it later. Display of products, salespersons to explain, flexibility of buying, shipping to homes etc..

HOLDING INVENTORY
Retailers keep inventory that is broken into user-friendly sizes so that products will be available when consumers want them. By maintaining an inventory, retailers provide a benefit to consumers- they reduce the consumers cost of storing products.

 INCREASING VALUE OF PRODUCTS & SERVICES By providing assortments, breaking, holding inventory & providing services, retailers increase the value consumers receive from their products & services.

TOP 10 RETAILERS:
Name of Company
1. 2. 3. 4. 5. 6. 7. 8. WAL-MART CARREFOUR KROGER HOME DEPOT METRO AHOLD KMART ALBERTSON S 9. SEARS 10. TARGET(DAY TON HUDSON)

Country of Origin
1. U.S 2. FRANCE 3. U.S 4. U.S 5. GERMANY 6. NETHERLANDS 7. U.S 8. U.S 9. U.S 10. U.S

RETAIL MANAGEMENT DECISION PROCESS

The world of retailing 1. 2. 3. 4. Introduction to the world of retailing Types of retailers Multichannel retailing Customer buying behaviour

RETAILING STRATEGY
5. Retail marketing strategy 6. Financial strategy 7. Retail location 8. Site location 9. Organisation structure & Human resource Management 10. Information System & Supply Chain Management 11. Customer relationship Management

RETAIL MARKET STRATEGY

Retail Strategy
Retailers target market. Format the retailer plans to satisfy target market needs. Build sustainable competitive advantage.

SUSTAINABLE COMPETITIVE ADVANTAGE

Customer loyalty. Location. Human resource management. Distribution and information systems. Unique merchandise. Vendor relations. Customer service.

Growth strategies
Market penetration.
Market expansion. Retail format development. Diversification.

Criteria for evaluating market segments

Actionability- must clearly indicate what the retailer should do to satisfy its needs. Identifiability helps retailers to identify customers in a target segment. Accessability ability of the retailer to deliver the appropriate mix to the customers in the segment. Size target segment must be large enough to support a unique retailing mix.

Approaches to sementing markets

Geographic segmentation: groups customer by where they live Demographic segmentation: groups customers on the basis of easily measured characteristics such as age, gender, income , etc. Geodemographic segmentation: uses both geographic and demographic characteristics ti classify customers.

 Lifestyle segmentation: refers how people live, how they spend the time, their activities, attitudes, opinions, etc. Buying situation segmentation: buying behaviour of customers.

Benefit segmentation: grouping customers with similar benefits

Customer buying behaviour

Types of customers decision-making process:

Extended problem solving: a decision process in which customers devote considerable time and effort to analyzing alternatives.

Limited problem solving: involves a moderate amount of time and effort.

Habitual decision making: a purchase decision process involving little or no conscious effort.

The buying process: The process consists of the following stages

Need recognition Information search evaluation

choice

visit

loyalty

 Need recognition: The buying process is triggered when people recognize they have an unsatisfied need. An unsatisfied need arises when a customers desired level of satisfaction differs from his or her present level of satisfaction.
Information search: The customers may seek information about retailers or products to help them satisfy the need. Evaluation: Based on the information attained, they evaluate the alternative products and select one to satisfy their needs.

Social factors influencing decisions

Family Reference groups Culture Market segmentation: A retail market segmentation is a group of customers whose needs are satisfied by the same retail mix because they have similar needs

Criteria for evaluating market segments

Actionability- must clearly indicate what the retailer should do to satisfy its needs. Identifiability helps retailers to identify customers in a target segment. Accessability ability of the retailer to deliver the appropriate mix to the customers in the segment. Size target segment must be large enough to support a unique retailing mix.

Approaches to sementing markets

Geographic segmentation: groups customer by where they live Demographic segmentation: groups customers on the basis of easily measured characteristics such as age, gender, income , etc. Geodemographic segmentation: uses both geographic and demographic characteristics to classify customers.

 Lifestyle segmentation: refers how people live, how they spend the time, their activities, attitudes, opinions, etc. Buying situation segmentation: buying behaviour of customers.

Benefit segmentation: grouping customers with similar benefits

TYPES OF RETAILING

GENERAL MERCHANDISE RETAILERS

DISCOUNT STORES SPECIALITY STORES CATEGORY SPECIALISTS HOME IMPROVEMENT CENTRES DEPARTMENT STORES DRUG STPORES OFF-PRICE STORES VALUE RETAILERS

NON STORE RETAIL FORMATS

ELECTRONIC RETAILING DIRECT SELLING TELEVISION HOME SHOPPING VENDING MACHINE RETAILING SERVICES RETAILING

Global Growth Opportunities

Key to success
Globally sustainable competitive advantage Adaptability Global culture Deep pockets

The Strategic Retail Planning Process

Define the business mission Conduct a situation audit Identify strategic opportunities

Evaluate strategic alternatives Establish specific objectives and allocate resources

Develop a retail mix to implement strategy Evaluate performance and make adjustments

APPENDIX