RETAIL MANAGEMENT

AMIT ABICHANDANI 9164

AMEY BHAVE 9170

MONICA DOSHI 9178

VIJAY RAJPAL 9202

AMRUTA SHETYE 9212

 RETAIL MANAGEMENT

 Retail is defined as first point of customer contact.

 It means selling the finished product to final consumer.
THE EVOLUTION OF RETAIL IN INDIA

Established Emerging
Traditional formats Formats
Formats Kirana shops Exclusive retail outlets
Haats Convenience/ Hypermarket
Melas department stores / Specialty Stores
Mandis etc. PDS/ Multiplexes
fair price shops Fast food outlets
Pan/ Beedi shops Service galleries
RETAIL SCENARIO

PAKISTAN 1 99

INDIA 3 97

CHINA 20 80

INDONESIA 30 70

BRAZIL 36 64 ORGANISED

40 60 UNORGANISED
THAILAND

MALASIA 55 45

TAIWAN 81 19

USA 85 15

0% 20% 40% 60% 80% 100%

GROWTH OPPORTUNITIES IN RETAIL
The Indian retail industry accounts for 10% of the GDP and 8% of employment.

The sheer size of the population demands attention from retailers worldwide and
the potential for growth in this nascent industry is tremendous.

India is the world’s 4th largest economy in terms of Purchasing Power Parity, after
USA, China and Japan; it is expected to move to the third position by 2010.

The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and
Music World in music; Crossword and Fountainhead in books.
ANALYSIS OF ORGANISED SECTOR

Source: E&Y, The Great Indian Retail Story, 2006.

RETAILING IN INDIA

Source: NASSCOM 2007

MAJOR RETAIL PLAYERS IN INDIA

 K. Raheja Corp. Group of Companies

 Pantaloon retail India limited (PRIL)
 Tata Group
 RPG Group
 Reliance Retail Limited (RRL)
 Aditya Birla Group
 Murjani Group
 Disney Artist Stores
 Vishal Group
RETAILING FORMATS IN INDIA

There are two types of retailing formats: -

1) Store form of retailing

2) Non-store Form of Retailing

STORE FORM OF RETAILING

Malls – Inorbit mall

Branded stores – Provogue
Departmental stores – Shoppers stop
Specialty stores – Planet M
Discount stores – Big Bazaar
Supermarkets – Food Bazaar
Hypermarkets – Hypercity
NON-STORES KIND OF RETAILING

Direct selling

Direct marketing

Television shopping

Cataloguing

Net marketing
THE RETAIL MARKETING MIX
Merchan
People dising

Pricing

Customer
Service
Place/Loc
ation
Presentation
Presentation
(Visual
(Visual
Merchandising)
Merchandising) Promotio
n
 MERCHANDISING
Merchandising – means having the right product in the
right quantity at the right place in the right time at the
right price.

Factors affecting the merchandising function:

1. Size of the organization.
2. Merchandise to be carried.
3. Types of stores.
4. Organization structure
 PRICING
Pricing is one of the factor which is the source of
revenue for the retailer.
RETAIL
Factors affecting Retail Pricing :
PRICE

Economic
Conditions

Target
Competit
Market &
or’s Price Demand

Store
Policies
LOCATION
Locating the retail store in the right place is considered adequate for success.
Steps involved in choosing a Retail Location:
Step 13
Step 2
Identifythe
Identify
Evaluate the
the market
most
in
demand
which attractive
&tosupply
locate
the
with
sitestore
in the market

Step
4
S
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c
t

t
h
e

b
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s
t

s
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a
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PROMOTION

Advertising
Sales Promotion
Public Relations
Personal Selling
PRESENTATION (VISUAL MERCHANDISING)

Visual merchandising can be termed as the orderly, systematic, logical &

intelligent way of putting stock on the floor.

Methods of display:
1. Colour dominance
2. Co-ordinated presentation
3. Presentation by price
CUSTOMER SERVICES

Appearance of store
Appearance of sales people
Recognizing regular customers
Friendliness
Assurance re: problem solving
Giving prompt service
Accuracy in billing
PEOPLE
The people who deal with costumer at one-to-one level are consider
the face of organization

This function in retail involves:

1. Identifying various roles in organization.
2. Recruiting people with the right attitude to fit the jobs.
3. Training
4. Motivating employees
5. Evaluating employee performance
 KEY TASK PERFORMED IN RETAIL FIRM

A. Strategic Management
Develop a retail strategy
Identify the target market (demo, psycho, geographic)
Determine the retail format
Design organizational structure
Select locations
 A. Strategic Management contd…

Develop a retail strategy

1. Establish a mission.
2. Analyse situation.
3. Identify the option
4. Set objectives
5. Obtain and allocate resources
6. Develop implementation plan
7. Moinitor progress and control
B. ADMINISTRATIVE MANAGEMENT

Promote the firm, its merchandise and services

Manage human resources
Distribute merchandise
Establish financial control
 MERCHANDISE MANAGEMENT

Buy merchandise

1. Locate vendors
2. Evaluate vendors
3. Negotiate with vendors
4. Place orders
 
 
 MERCHANDISE MANAGEMENT(contd)

Control merchandise inventory

1. Develop merchandise budget plans
2. Allocate merchandise to stores
3. Review open-to-buy and stock position.
 MERCHANDISE MANAGEMENT(contd)

Price merchandise

1. Set initial prices

2. Adjust prices
SUPPLY CHAIN MANAGEMENT
Thank you