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Title: dba 1742 retail outlet and brand managemen


  • 1.1 Introduction to the subject.
  • Retailing occupies a very eminent position in the
    economies of all modern societies. The retail
    sector is changing at an ever increasing rate and
    this is leading to a greater competition
    activity. As a result of acute competitor
    activity companies have to improve upon the way
    in which they approach retail marketing.
  • That is to say retail management has to be
    developed within the context of marketing
    approach. There are of course different ways of
    approaching retail market and learn retail
    marketing principles. Fundamentally you have to
    look retail marketing through customers eyes.
  • It Retailers have a wider knowledge of markets
    (customers) and also the retail applications than
    the manufacturers. In fact they are in close
    contact with the customers for your companys
    products than the company itself.
  • A retailer is also a middleman in the channel of
    distribution. In fact a retailer is the last link
    in the chain of distribution. But he is an
    important link. In the transaction if the buyer
    is the end-consumer or ultimate customer then the
    seller is a retailer.

  • Thus he is a merchant middleman between the
    wholesaler and the consumer. The basic feature of
    the retail trade is that the retailer purchases
    the goods from a wholesaler and resells them in
    small quantities to different consumers.
  • The retailer studies the requirements of the
    consumers, their likes and dislikes and
    accordingly stocks or replenishes the goods in
    his shop. He pays personal attention to
    customers, pleases them in many respects and is
    also very polite relative to other members of the
    distribution channel. It is the retailers who
    have to stick to the principle of right goods,
    right quality, right quantity, etc with a prompt
    after-sales service. Prompt and proper service to
    customers is the meaning in brief to retailing

1.1a Retailing
  • Retailing consists of the sale of goods or
    merchandise from a fixed location, such as a
    department store or kiosk, or by post, in small
    or individual lots for direct consumption by the
    purchaser.1 Retailing may include subordinated
    services, such as delivery.
  • Purchasers may be individuals or businesses. In
    commerce, a retailer buys goods or products in
    large quantities from manufacturers or importers,
    either directly or through a wholesaler, and then
    sells smaller quantities to the end-user.
  • Retail establishments are often called shops or
    stores. Retailers are at the end of the supply
    chain. Manufacturing marketers see the process of
    retailing as a necessary part of their overall
    distribution strategy.
  • Shops may be on residential streets, shopping
    streets with few or no houses, or in a shopping
    center or mall, but are mostly found in the
    central business district. Shopping streets may
    be for pedestrians only. Sometimes a shopping
    street has a partial or full roof to protect
    customers from precipitation. In the U.S.,
    retailers often provided boardwalks in front of
    their stores to protect customers from the mud.
    Online retailing, also known as e-commerce is the
    latest form of non-shop retailing (cf. mail
  • Shopping generally refers to the act of buying
    products. Sometimes this is done to obtain
    necessities such as food and clothing sometimes
    it is done as a recreational activity.
    Recreational shopping often involves window
    shopping (just looking, not buying) and browsing
    and does not always result in a purchase.

  • 1.1b Retail pricing
  • The pricing technique used by most retailers is
    cost-plus pricing. This involves adding a markup
    amount (or percentage) to the retailers cost.
    Another common technique is suggested retail
    pricing. This simply involves charging the amount
    suggested by the manufacturer and usually printed
    on the product by the manufacturer.
  • 1.1c Retail Services
  • Behind the scenes at retail there is another
    factor at work. Coporations and independent store
    owners alike are always trying to get the edge on
    their competitors. One way to do this is to hire
    a merchandising solutions company to design
    custom store displays that will attract more
    customers in a certain demographic. The nation's
    largest retailers spend millions every year on
    in-store marketing programs that correspond to
    season and promotional changes. As products
    change, so will a retail landscape.
  • 1.1d Etymology
  • Retail comes from the French word retaillier
    which refers to "cutting off, clip and divide" in
    terms of tailoring (1365). It first was recorded
    as a noun with the meaning of a "sale in small
    quantities" in 1433 (French). Its literal meaning
    for retail was to "cut off, shred, paring". Like
    the French, the word retail in both Dutch and
    German (detailhandel and Einzelhandel
    respectively) also refer to sale of small
    quantities of items.

  • 1.1e Retail types
  • There are three major types of retailing. The
    first is the market, a physical location where
    buyers and sellers converge. Usually this is done
    in town squares, sidewalks or designated streets
    and may involve the construction of temporary
    structures (market stalls).
  • The second form is shop or store trading. Some
    shops use counter-service, where goods are out of
    reach of buyers, and must be obtained from the
    seller. This type of retail is common for small
    expensive items (e.g. jewelry) and controlled
    items like medicine and liquor. Self-service,
    where goods may be handled and examined prior to
    purchase, has become more common since the 20th
  • A third form of retail is virtual retail, where
    products are ordered via mail, telephone or
    online without having been examined physically
    but instead in a catalog, on television or on a
    website. Sometimes this kind of retailing
    replicates existing retail types such as online
    shops or virtual marketplaces such as Amazon.3
  • In addition to the enclosed malls, there are also
    strip malls which are 'outside' malls (in Britain
    they are called retail parks. These are often
    comprised of one or more big-box stores or

  • Non-traditional exterior of a super target store.
    Los Angels- USA.
  • Local shops can be known as brick and mortar
    stores in the United States. Many shops are part
    of a chain a number of similar shops with the
    same name selling the same products in different
    locations. The shops may be owned by one company,
    or there may be a franchising company that has
    franchising agreements with the shop owners (see
    also restaurant chain)
  • Some shops sell second-hand goods. In other
    cases, especially in the case of a nonprofit
    shop, the public donates goods to the shop to be
    sold (see also thrift store). In give-away shops
    goods can be taken for free.
  • There are also 'consignment' shops, which are
    where a person can place an item in a store, and
    if it sells the person gives the shop owner a
    percentage of the sale price. The advantage of
    selling an item this way is that the established
    shop gives the item exposure to more potential
  • The term retailer is also applied where a service
    provider services the needs of a large number of
    individuals, such as with telephone or electric

  • One of the theories is the Wheel of retailing.
    This theory states that new types of retailers
    appear /enter the market as low status, low
    margin and low price operators. This is the entry
    phase and allows the retailers to compete
    effectively and take market share away from more
    traditional retailers.
  • These new retailers gradually acquire more
    sophisticated and elaborate facilities as they
    meet with success, thereby becoming less
    efficient in the trading phase. This results in
    higher operating costs and investments. Hence
    they will raise prices and margins as they are
    entering the vulnerable phase. In the process
    they become vulnerable to the new low price, low
    margin new retailers.
  • This appears to be the case with many outlet
    malls. Also the imperfect merchandise of the
    manufacturers or excess merchandise of the
    manufacturers cause extra expenditure for the
    retailer to make things more attractive with
    fancy lighting and whatnotgenerous return
    policies, private dressing room etc.
  • . Now as an intermediary the retailer has to
    forge his own marketing strategy. Some retailers
    exercise dominance on the manufactures while
    others employ strategic marketing plans and
    sophisticated tools for effective retail
    management. All depend on the nature of product,
    demand, consumers behavior, market segmentation
    etc. They even measure performance more on return
    on investment basis than on profit-margin basis.

  • The word retail is derived from the French word
    retaillier meaning cut a piece off or break the
    bulk. It simply means first hand transaction with
    the customer. It is actually a direct interface
    with the customer and coordination of activities
    right from the concept and design of a product
    till it is delivered to the end consumer followed
    by the post delivery services to the customer.
    The retail industry has contributed a lot to the
    economic progress of many countries and has
    created a large potential for employment.
    Retailing concept of course is undergoing fast
    changes today.
  • Retailing is an important part of marketing and
    the marketing mix consists of elements like
    product, place, price, people, presentation and
    promotion. Place represents distribution and in
    retailing it is the different locations of the
    store where products are available. Normally for
    any manufacturer selling through intermediaries,
    it is the retailer who introduces the product to
    the customer. Organizations sell their services
    and products through the retail outlets and get
    feed back on the performance of the products and
    customers expectations and suggestions from or
    through the retailers only.

  • The importance of a policy for retail stores
    development can be felt from the following
    example of the retail set up in the downtown
    Washington. Strategy, Not Serendipity, Needed
    To Renew Downtown's Retail Core
  • Development activity in downtown Washington's
    east end may be an encouraging sign for merchants
    at the Shops at National Place, among others, as
    local real estate experts suggest. But that kind
    of speculation is fairly typical of the whimsical
    notions that have contributed to the decline of
    merchandise-oriented retail in the downtown area.
  • The existing convention center and the Shops at
    National Place opened in the early 1980s amid
    considerable fanfare and promises of great things
    to come. Neither, however, has lived up to those
    promises. The convention center proved to be too
    small soon after it opened and the Shops, an
    enclosed shopping center at 14th and F streets
    NW, continues to have trouble finding the right
    tenant mix.
  • It was in a similar planning vacuum during the
    1980s that developers overbuilt the office market
    and forced dozens of struggling retailers out of
    the downtown area. But with the development
    slowing dramatically because of the commercial
    real estate bust in the early '90s, experts are
    now selling entertainment

  • General description
  • EVEA (Estonian Association of SME-s) is a
    non-governmental, non-profit association of SME-s
    and self-employed performing a representative,
    advocacy and lobbying function for small and
    medium-sized businesses as a social group. The
    main goal of EVEA is to create a favourable
    entrepreneurial environment in Estonia as the
    basis for economic growth and social stability.
  • Serving as an interface between the Estonian SME
    community from one side and the policy
    decision-makers, international organisations and
    various social partners from the other side, EVEA
    provides information about the situation in the
    SME sector, its problems, economic legislation,
    business opportunities and business-related
    infrastructure in Estonia.
  • EVEA membership is open to any Estonian SME and
    currently includes 180 companies and
    self-employed. Most of the members are businesses
    with less than 50 employees.

  • 1.2b Retail specific information and data
  • EVEA activities in the frames of the RENET
    project are focussed on the South-Estonian area,
    which covers five counties. This part of Estonia
    is chosen due to the fact that that area is
    problematic in the Estonian state equilibrated
    development model. Nevertheless the territory of
    Estonia has small enterprises and incomes differ
    in regions in industrial regions in North- and
    Northeast Estonia income and salaries are higher,
    purchase capacity is bigger, and population
    density is higher than in the agriculture and
    forestry regions in South-Estonia.
  • The attraction centre for the people from
    South-Estonia is the city of Tartu with 100,000
    inhabitants, where the development model for the
    year 2030 is being worked out. The vision of
    Tartu 2030 The city of active, creative and
    happy people Tartu is the intellectual capital of
    Estonia and the centre for promoting development
    in the whole of Southern Estonia it is a
    university town with traditions, a city of youth
    where creativeness and open reasoning support
    development activity and innovation in
    enterpreneurship a city with modern urban
    environment, safe, developing sustainable way of
    life and an actively cooperating Estonian city.

  • 1.2d Planned RENET related activities
  • The second aim after the study is carried through
    to involve councillors of all five counties in
    October 2007 into the retail network development
    prognostication development for planning together
    ways of retail development. They should take into
    consideration the presumed area specific problems
    of South-Estonia as a partitioned landscape,
    thinly populated area etc.
  • Third aim was to form a representative
    organization with an own visual identity and
    Internet homepage for better solving problems
    standing between retailers of South-Estonia. That
    representative organisation, the Association of
    Small Retailers and Service Providers NGO (MTÜ
    VKTL) was established in 2006 and officially
    registered in March 2007. The development of the
    association will go on in three directions.

  • India has emerged as the most attractive
    destination for retailers in 2007. According to
    the latest AT Kearney study, for the third year
    in a row, India leads the annual list of most
    attractive emerging markets for retail investment
    followed by Russia and China.
  • Retail has proved to be one of India's largest
    industries, and has presently emerged as one of
    the most dynamic and fast paced industries with
    multitude of players entering the market.
    Accounting for over 10 of the country's GDP and
    around 8 of the employment retailing in India is
    gradually inching its way towards becoming the
    next boom industry.

  • 1.2f The Spending Generation
  • India's middle-classes, widely traveled and with
    deep pockets, are flocking to malls...India's
    organized retail industry...is poised to grow by
    97 per year in the next five years to a
    staggering 24bn....in two years there will be
    360 malls across the country....And it has only
    just begun. Developers and promoters of malls
    believe the face of the industry is about to
    dramatically change." Source BBC World Service,
  • India retail industry is reflected in its
    sprawling shopping centers, multiplex- malls and
    huge complexes offer shopping, entertainment and
    food all under one roof, the concept of shopping
    has altered in terms of format and consumer
    buying behavior, ushering in a revolution in
    shopping in India.
  • The new culture brought in by the Tech generation
    has not only changed the way Indians work but
    also how they play. This is preeminently
    reflected in the contemporary retail sector
    development. The tech generation not only bought
    in gadgets and gizmos but also big and deep
    pockets and an eye for all things expensive. They
    were willing to spend for comfort and pleasure.

  • 1.2g Shop till you Drop
  • 27 million square feet of organized retail space
    is currently available. Another 90 million square
    feet is expected to be added by 2008 from 263
    mall projects. Of these, 18 million square feet
    is slated to come up in Delhi as well as in
    Mumbai, 9.5 million square feet in Ludhiana, 6
    million square feet in Chandigarh and 3.6 million
    square feet in Ahmedabad. Big cities or small
    towns to the obscure villages, retail shopping
    development is coming to all parts and corners of
  • With the retail sector experiencing a boom, the
    country is witnessing a spurt in extremely large
    retail spaces. Shopping malls with over 1 million
    sq ft of are now common In the National Capital
    Region (NCR), Unitech's Great India Place has a
    million square feet (sq ft) of retail space. In
    Mumbai, at least eight malls are covering over 1
    million sq ft each In Bangalore, at least three
    malls with similar dimensions are under
    development. Ludhiana will soon have a
    1.6-million sq ft mall by Today Homes. The
    biggest mall of the world Mall of India will have
    32 acres spanning a huge entertainment area and
    large city town squares offering a total retail
    experience. The Mantra here seems bigger the
  • Specialized malls seems like another catching
    trend Gurgaon, on the suburbs of New Delhi, has a
    jewellery mall and will soon have an auto
    mallBangalore will get an exclusive furniture
    mall. Two malls targeting foreign tourists will
    come up at tourist hotspots--Goa and Udaipur. A
    furnishings mall is coming in Kolkata. And
    India's largest theme amusement park, Noida
    Entertainment City will be absolutely colossal
    standing upon 150 acres approximately.

  • As retail is evolving, so are the relationships
    between marketers and the companies helping them
    to leverage the medium. Project based
    relationships are giving way to strategic
    relationships that are broader in scope, longer
    term in nature and evaluated on the basis of
    defined and measurable performance goals.
  • These strategic relationships are helping
    marketers to respond to the pressure to more
    effectively create, manage and continuously
    improve their retail programs. To understand why,
    it is important to understand the factors that
    are necessitating the change to the
    client/supplier relationship (1) the growth and
    importance of the retail medium, and (2),
    incessant bottom line pressure.

  • Never before has the importance of the in-store
    environment been so elevated in the minds of
    brand marketers and retailers. The proliferation
    of communications channels has diluted the
    ability of traditional media to hit the target,
    bringing increasing attention on the retail store
    as the surest point of contact.
  • Growing recognition by retailers that they
    themselves are a brand has raised awareness of
    the need to manage and distinguish their
    environments and the experience of shopping
    within their stores.
  • Brand companies are looking to the in-store
    environment as a more important and integral
    component in their marketing mix. Brand equity is
    becoming the last vestige of competitive
    advantage and brand marketers are recognizing the
    retail store as a point of tangible contact
    between their brand and their target consumer.
    There is increasing emphasis on the creation of
    in-store programs that deliver a more fulfilling
    brand experience.

  • Few industries are free from the pressure to
    reduce costs and retail is no exception. Retail
    is a physical business and the scope and
    complexity of programs is growing. In turning
    over every stone to find cost saving
    opportunities, strategic purchasers have
    recognized that the end-to-end process for retail
    programs needs to be optimized from design and
    development activities, to production costs, to
    the wide range of logistical issues related to
    implementing three dimensional marketing programs
    to a multitude of store doors. Its understood
    that there are efficiencies to be gained across
    the total supply chain, and that manufactured
    costs are only part of the equation. It is also
    understood that there are economies of scale to
    be realized between the programs that comprise a
    total retail presence, and over time as programs

  • Traditional client/supplier relationships inhibit
    the ability to leverage the full potential of the
    retail medium. The use of multiple suppliers
    across multiple programs tends to undermine the
    coherency of a marketers total marketplace
    presence and impact, the effectiveness and
    efficiency of their processes, economies of
    scale, and ultimately the profitability of their
    retail effort. For this reason, marketers are
    moving toward strategic relationships with a
    single partner or a core group of agency/supplier
    partners, with an emphasis on tighter
    collaboration among the partners and defined
    end-to-end processes.
  • Performance benefits, including increased sales
    and decreased costs, are being realized.
  • Innovation is enabled, as a focused team armed
    with strategic information can create a stream of
    innovations that are more relevant and targeted
    than speculative efforts. Consistency of
    presentation, across channels and across
    geographic borders, is managed as is the
    synchronization of a marketers retail effort. A
    well-orchestrated retail plan assures that all
    programs are working in concert to maximize
    marketplace potential. These benefits, along with
    improved confidentiality of brand and retail
    strategies, ultimately impact sales and consumer
    loyalty. They are difficult to achieve without
    vested partners.

  • A long term strategic supplier is in a better
    position to identify cost saving opportunities
    than a one-program supplier. A partner with a
    view of the total supply chain can respond to the
    expectation to optimize efficiencies and to
    continuously improve processes, where a supplier
    given only a limited view of specific activities
    can not. Within the context of a defined
    partnership, speed to market is accelerated as
    the learning curve is diminished and the impact
    of awkward hand-offs is eliminated. Finally, a
    marketers internal capacity is improved, as a
    streamlined process allows them to focus on their
    core business while their partners focus on the
    creation and management of their retail presence.
  • Retail is changing for the better. One shot deals
    no longer make economic sense, and activities can
    no longer be viewed in isolation. Building a
    retail presence requires planning and
    collaboration, and managing profitability
    requires a long term view. As the relationships
    between marketers and their agencies improve, so
    will the potential of retail as a high
    performance marketing tool.
  • The retail environment offers a great deal of
    customer convenience in so far as it tries to
    provide for consumer needs precisely and on time
    throughout the country. It is a vital element in
    triggering consumer spends. The growth in
    retailing will generate tremendous employment
    opportunities for both professionals and
    non-professionals- say in different levels. In
    fact maximum number of people with most minimum
    qualifications can be employed in the front line
    operations. Of course a bit of training will be
    an added advantage

  • A many fold effect on GDP is possible because of
    retailing. It first of all generates employment
    directly and indirectly through supply chain. The
    outsourcing by retailers can contribute to the
    growth of many small and medium industries. The
    contribution of retailers to tiny and cottage
    industries along with huge industries is
    astonishing.Organised retailing can bring about a
    telling change in the supply chain of agriculture
    and other rural products. Retailing can remove
    inefficiencies in the distribution of consumer
    goods. A well organized retail store can give
    better products, variety of products, better
    ambience and convenience, better prices or
    competitive prices-all at the same time. It gives
    an overall satisfaction to the customer or his
    family and friends who visit the store.
  • While we attach so much importance to organized
    retailing, opening the doors to international
    giants directly or indirectly, it should not be
    at the cost of local family run small retail
    set-ups or the kirana shops. However we have to
    adopt to the new system for providing convenience
    and economy to customers and also to meet their
    changing needs and behaviors.

  • Retailers play another important role in society
    when they employ different levels of people and
    with status today. In US, UK, FRANCE etc the
    retail industry employs around 20 t0 27 of the
    workforce. Two thirds of the labour employed by
    retail is female force, a considerable portion of
    employees in US, CANADA, UK etc are part time
    employees, including students. In unorganized
    retail sector, especially in India, the employees
    were paid far less and worked for longer hours.
    Conditions are far better with Spencers,
    Nilgiries, Food world (now Spencers), Reliance
    fresh, More, Stop and shop, Pantaloons, Odyssey
    etc. in India itself.
  • A retailer does not simply sell what the supplier
    can give him nowadays. A retailer acts as a
    gatekeeper within the channel of distribution.
    The retailer today exerts pressure on the
    suppliers on wanted brands and need based stocks
    only. The consumers stand to benefit as they get
    what is needed at relatively economical cost.
    Some retailers have left lasting impression and
    image in the minds of consumers by their
    ambience, service and display of social
    responsibility that many consumers are not only
    retail-brand loyal but also are ready to buy
    their other non-related products like financial
    services etc. Further today retailers have
    started moving internationally and have even
    joint ventures.

1.4 Retail outlets mapping and performance
  • 1.4.1 The Need for a Retail Outlets Mapping
  • Retail marketing has undergone a sea change in
    the last couple of years. In a market where
    brands are proliferating, shelf space getting
    rare and the customers multiplying, it has become
    imperative to assess whether the sales team and
    distribution network cover all the outlets in the
    city in an effective manner. Are you certain that
    the territories covered are by hunch or fully
    supported by scientific survey and ststistics?
    Did you consider the demographic factors while
    allowing the different retail outlets to perform?
    Please do not be impressed either by the
    largeness of the area or by the hugeness of the
    population. A territory with smaller population
    with needs and purchasing power supported by its
    behaviourial characteristics can be a better one
    than the one with large, price sensitive
    territory with a huge population, less purchasing
    power, not ready for challenging cultural
    advancement etc.It therefore becomes necessary
    for any supplier to prepare a map, geographical
    map, of the retail outlets referring to roadmaps,
    atlas, government records, census graphs etc. The
    management of the performance of these outlets
    will carry and justification only with the help
    of thoughtfully prepared maps that are result
    oriented. That can help you to analyze the data
    for performance management.

  • Almost every research report on media, marketing
    and consumer economics refers to SEC categories.
    These categories are important because they help
    in effectively segmenting markets and targeting
    relevant communication to core consumers for
    products and services.
  • Words like SEC A and SEC B are freely tossed
    around without realising that, barring a few
    experts, there is little, if any, knowledge about
    their real meaning. Very few, for example, may be
    aware that shopkeepers/ traders though affluent
    and, therefore, having more spending power than
    most executives would fail to make the high
    grade, if they are not well educated.
  • Although, MRUC Hansa Research have come up with
    a new concept of Household Potential Index
    (HPI), based on the data being regularly
    collected by IRS, to reclassify consumers, SEC
    continues to remain universally referenced
    classification of consuming classes. While, a
    detailed postings on HPI will soon follow, we
    explain below the basis of classification of
    different SEC categories and their relative
    importance in relation to marketing/ retailing

  • The pace of development of retailing varied
    between developed and developing countries. You
    can find that retailing is very much organized in
    developing countries and are still very much
    disorganized in developing and under developed
    countries. Thus in India retailing is organized
    only to the extend of 4 while it is around 60 to
    80 organized in US ,UK, Canada, Germany and
    even in France. According to a report of Meckency
    co 80 of retail business is organized in US.
    It accounts for high figure of US7.5 trillion.
    The other countries like Western Europe, Malasia,
    Thailand, Brazil and Argentina have 70,50,
    50,40and 40 respectively. It is 35 in
    Philippines, 25 in Indonesia, 15 in South Korea
    and only 10 in China.
  • A large share of GDP is from service sector in
    developed countries and retail sector is a major
    component in this. As a result the employment
    opportunity offered by retail industry is very
    large. According to US department of labour about
    23 million people are employed in retail industry
    in US, in more than 2.1 million retail outlets.

  • In organized sector retailing is very highly
    customer centric, with continuous thrust on
    innovations in products, designs, services,
    benefits, processes, store planning
    modifications, categorizations, displacement and
    replacement to break monotony, pleasant ambience,
    better and more beneficial application of IT,
    more convenient methods and processes for
    customer retention as well as relations etc
    Organized retailing strongly believes that
    customer is the king and hence the necessity for
    user friendly application of internet, intranet,
    web ,erp, tracking, data ware housing etc. all
    professionalized. The nuclear families are on the
    increase, working women are on the increase,
    increased pressure of work for men and women
    inadequacy of time for commuting, backlog or
    overload of work etc has all forced priority to
    convenience and speed for consumers in developing
    countries including India. People wanted an easy
    access to goods and also to get everything under
    one roof. This has offered an excellent
    opportunity for retail business to become more
    and more organized. Inspite of the huge potential
    for growth, the Indian retail business in
    organized sector forms around 2 only. In fact a
    recent survey shows that most modern stores
    account for only about 0.6
  • There are at least two major factors that the
    growth of organized Indian retail market- lower
    prices and the benefits hitherto not obtained.
    Economies of scale are the major contributor for
    this. The retail business in India in 2000 is
    around Rs. 400,000 crores .But it is around
    10,000 crores in 2007. This pace of growth is
    phenomenal supported by a one billion population
    consisting of 30 of BPL and 70 0f paltry income
    holders. The contribution of organized sector was
    Rs 20,000 crores in the year 2000 and it is
    Rs.200000 crore in 2007.( report of CMIE). The
    organized sector has attracted many gigantic
    foreign retailers like Marks and Spencer,
    Samsonite, Wallmart, KFC, Macdonalds, Campell,
    Dominos. Goenkas, Swarovsky etc. Also TATA,
    BIRLA, RELIANCE, PIRAMAL etc have greatly
    invested in most professional retailing. The
    Indian mind is fast catching the value for money
    concept and this is an impetus to retail growth
    in an organized way. Big bazaar, Subhikha, Margin
    free, more etc is the evidence for such

  • India is an example for unorganized sector of
    retail trade. It is estimated that there are
    about 14 million retail outlets of various sizes
    and formats in India. About 96 of the retail
    outlets have less than 500 sq.ft. size. The per
    capita retail space in India is 2 sq.ft. whereas
    it is 18 sq.ft. in US. It can be commented that
    India has the lowest per capita retail space in
    the world. (Kurt salmon associates). India has an
    average 10 outlets for every 1000 people. Thus
    India has the largest number of retail outlets
    and they contribute to 96 of the retail sales.
    These retail outlets are all independent. Most of
    the stores are kirana shops, family owned shops,
    single man shop, portable shops on carts or
    bicycles, door to door manual carriers etc. not
    providing much values and benefits to customers.
    Most of the shops sold whatever they had than
    marketing what the consumers wanted at a
    reasonable price, place and time. Retail and
    whole sale took place weekly or bimonthly both in
    rural and urban areas even today, that too at
    particular places only earmarked for that
    purpose. Limited choice was a big hurdle in
    unorganized retailing. The quality, durability,
    value for money, replacement, buys back
    arrangement, modifications, goods return etc were
    simply impossible in unorganized retailing.

  • 2.1a Retailing AS AN ACTIVITY
  • Retailing consists of the sale of goods or
    merchandise from a fixed location, such as a
    department store or kiosk, or by post, in small
    or individual lots for direct consumption by the
    purchaser.1 Retailing may include subordinated
    services, such as delivery. Purchasers may be
    individuals or businesses. In commerce, a
    retailer buys goods or products in large
    quantities from manufacturers or importers,
    either directly or through a wholesaler, and then
    sells smaller quantities to the end-user. Retail
    establishments are often called shops or stores.
    Retailers are at the end of the supply chain.
    Manufacturing marketers see the process of
    retailing as a necessary part of their overall
    distribution strategy.
  • Shops may be on residential streets, shopping
    streets with few or no houses, or in a shopping
    center or mall, but are mostly found in the
    central business district. Shopping streets may
    be for pedestrians only. Sometimes a shopping
    street has a partial or full roof to protect
    customers from precipitation. In the U.S.,
    retailers often provided boardwalks in front of
    their stores to protect customers from the mud.
    Online retailing, also known as e-commerce is the
    latest form of non-shop retailing (cf. mail

Non-traditional exterior of a Super Target,
  • Local shops can be known as brick and mortar
    stores in the United States. Many shops are part
    of a chain a number of similar shops with the
    same name selling the same products in different
    locations. The shops may be owned by one company,
    or there may be a franchising company that has
    franchising agreements with the shop owners (see
    also restaurant chain)
  • Some shops sell second-hand goods. In other
    cases, especially in the case of a nonprofit
    shop, the public donates goods to the shop to be
    sold (see also thrift store). In give-away shops
    goods can be taken for free.
  • There are also 'consignment' shops, which are
    where a person can place an item in a store, and
    if it sells the person gives the shop owner a
    percentage of the sale price. The advantage of
    selling an item this way is that the established
    shop gives the item exposure to more potential
  • The term retailer is also applied where a service
    provider services the needs of a large number of
    individuals, such as with telephone or electric
  • Retailers may use facing to create the look of a
    perfectly-stocked store even when it is not.

  • India tops the AT Kearney's annual Global Retail
    Development Index (GRDI) for the third
    consecutive year, maintaining its position as the
    most attractive market for retail investment.
    Furthermore a report by PricewaterhouseCoopers
    foresees India and China to continue as the top
    sourcing hubs in retail and consumer sector in
    the coming years.
  • The Indian retail market, which is the fifth
    largest retail destination globally, according to
    industry estimates is estimated to grow from the
    US 330 billion in 2007 to US 427 billion by
    2010 and US 637 billion by 2015. Simultaneously,
    modern retail is likely to increase its share in
    the total retail market to 22 per cent by 2010.
  • Continuing the robust growth of the organised
    retail in India, according to the Credit Rating
    and Information Services of India, the industry
    raked in US 25.44 billion turnover in 2007-08 as
    against US 16.99 billion in 2006-07, a whopping
    growth rate of 49.73 per cent.

2.2a Retail space
  • Driven by changing lifestyles, strong income
    growth and favourable demographic patterns,
    Indian retail is expanding at a rapid pace. Mall
    space, from a meagre one million square feet in
    2002, is expected to touch 40 million square feet
    by end-2007 and an estimated 60 million square
    feet by end-2008, says Jones Lang LaSalle's third
    annual Retailer Sentiment Survey-Asia.
  • Alongside, Indian cities are witnessing a
    paradigm shift from traditional forms of
    retailing into a modern organized sector. A
    report by Images Retail estimates the number of
    operational malls to more than double to over 412
    with 205 million square feet by 2010 and further
    715 malls by 2015, on the back of major retail
    developments even in tier II and tier III cities
    in India.

2.2 b The Indian Retail Scenario The Charm of
Novelty battles it out with the Charm of
  • So now our metros are definitely getting
    overcrowded with new retail formats. If all of
    India has a 3-4 organized retail percentage
    figure in metros, its probably close to 30-40
    (or more).
  • Grocery, Apparel, Books Music, now even
    Medicines, are now all seeing huge sales via the
    spanking new stores (they used to be called
    shops when they were mom and pop now you
    cant call them anything but stores J ). But I
    think the phenomenon that has overwhelmed us
    Indians is the mallification of our metros.
  • In fact, when Crossroads, one of the very first
    malls in Mumbai, India was opened, the crowds
    became so unmanageable that they had to restrict
    entry --- only people with cell phones (in those
    days, mobile penetration was much lower than it
    is now) were allowed in
  • I actually love these malls I like to window
    shop as much as the next person, I think the
    lesser crowded malls make for nice weekend jaunts
    for the kids where you combine your necessity
    shopping with fun and food.Every major
    retailer is gunning for a scale that gives them
    sleepless nights

  • IT has already had a tremendous effect on the
    retail sector. A number of new IT innovations lie
    in store for shops. The new IT products are being
    used along with the internet that is exciting
    adding value and new experiences to consumers.
    Internet is used for selling, advertising,
    distributing and even for designing and modifying
    the design etc by retailers and of course by
    suppliers/manufacturers. Internet is an
    attractive and more able substitute for
    traditional functions of the intermediaries.
    Because of its ability to transform information
    inexpensively and quickly, internet has a
    significant effect on sales transactions,
    communications and logistics. Some of the trends
    for the IT in retailing are 1) Smart
    cardEquipped with a silicon chip, these cards
    replace other forms of transaction, retailers
    have to invest in equipments only. The Smart
    cards are more secured and carry a lot more
    information than conventional cards. It has
    already revolutionized the banking industry which
    20 years ago enjoyed got reshaped by ATMs.
    Avoiding the long ques in the bank. Smart cards
    enable consumers transfer money quickly and
    provide accurate and secure cash free
    transactions. The technology is well developed
    that smart tags are there /bar codes etc that can
    tell full information about the supplier, monitor
    the supply chain, provide stock control etc. Even
    theft and unauthorized use can be detected by
    these cards.

  • The important trend today is that retailers
    decide the type of products, categorization,
    services to be rendered, differentiation of
    services, the very format etc. These are the
    super markets, departmental stores and specialty
  • The next important trend is the retailers carve a
    niche for themselves, become a specialist product
    category, unusual services followed by strategic
    pricing. This differentiation results in
    intensified competition for products and
    services. The offer becomes standardized and
    price becomes the most significant selling point.
    This ends up in the formation of the so called
    discount stores.
  • The next trend is the formation of hyper markets
    when a wide variety of goods and services are
    offered at the most competitive prices. Of course
    they normally lack product depth and extra
  • Apart from the above consumers are also
    influenced by factors like migration of formats,
    cross-border movement and mergers and
    acquisitions of firms.
  • By migration of formats what is meant is that
    many retailers are adopting formats of super
    markets, hyper markets, departmental stores, mail
    order stores, telemarketers, web-enabled
    marketers etc. Thus Tesco in Briton operates
    super markets, hyper markets, neighbourhood
    stores, convenient stores, departmental stores,
    mail order stores etc. These are applicable to
    many retailers like Bata stores, Spencers, More,
    Reliance etc.

2.2.2 Frequent Leisure Time Shoppers Spend More
per Trip
  • 2.2.2 a Shoppers Focus on Wants over Needs
  • Frequent leisure time shoppers are a retailers
    dream comes true according to BIG research and
    MARS Advertising. Their semi-annual Shopper
    Mindset survey revealed that frequent leisure
    time shoppers, those who take a leisure shopping
    trip once a month or more, spend considerably
    more per leisure trip than other adults over 18
  • 2.2.2 b Frequent Leisure Time Shoppers Focus
    on Wants, Not Needs
  • Frequent leisure time shoppers spend an average
    of 113.33 per shopping trip, making this segment
    of consumers one of most profitable and informed.
    According to Anne Howe, SVP, Market Intelligence
    Insights at MARS, frequent leisure time
    shoppers, "are more relaxed and have either
    researched their planned purchases online or rely
    on in-store personnel or point-of-sale material
    as information sources before purchasing."

  • 2.2.2 c Whats In the Leisure Time Shoppers'
    Shopping Bag?
  • Apparel -- 40.2 Health and Beauty Aids --
    26.6 Entertainment, Leisure Items and
    Electronics -- 22.5
  • 2.2.2 d Frequent Leisure Time Shoppers
  • Female -- 54.0 Average Age -- 31 Want
    to relax and get away from the house -- 61.3
    Bought apparel on last leisure shopping trip --
    40.2 Made Purchases at Discount Stores --
    32.0 Have cell phones -- 86.0 Have text
    messaging on their cell phone -- 56.0 Wander
    up and down aisles when leisure shopping -- 38.0
  • Providing an informative and engaging in-store
    environment could result in incremental sales
    from this shopper segment," Howe suggested. "This
    shopper is way more likely to respond to a myriad
    of in-store influencers, and not as likely to say
    that traditional media messages are influencing
    their purchase behavior. This is good news for
    marketers who have been using effective in-store
    messaging as part of promotion programs. And it
    reinforces the message to retailers that
    consumers are looking at more than price while in
    the aisles." The following references are given
    so that you may go to those web-sites and get
    more information on latest retail trends

2.2.3. Strengthening and Evolving
Consumer Trends
  • While attitudes, perceptions and behavior
    continually evolve into trends, and as
    individuals, the nation and the world adjust to
    change, some trends become cultural
    characteristics, observes Hallmark's trends
    expert Marita Wesely-Clough.
  • "A social trend becomes a component of a culture
    when it lasts five to eight years or more
    bargain hunting, for example," Wesely-Clough
    says. "Of course, countertrends can surface,
    strengthen and eventually supplant an established
    cultural trend.
  • Other strengthening trends include the pursuit of
    happiness, the desire for more and more, Eastern
    influences, shifting boomer behavior, and
    polarization of attitudes.
  • Understanding the consumer is the first step in
    creating products that are on target, and is
    essential in developing relevant products that
    help people express their emotions and strengthen
  • "A number of trends are continuing and
    intensifying some that dramatically affect the
    way we think, live, and shop," Wesely-Clough
    says. "Of course, countertrends emerge,
    preventing society from becoming static, although
    a culture may share an overriding belief that
    directs its path democracy, for example, which
    carries with it freedoms to be, do, have and
    express. And those freedoms offer lots of
    opportunity for people to jump on bandwagons."

2.2.4. Evolving Trends and Counter Trends for
2005 and Beyond
  • Recent studies in the realm of positive
    psychology, continuing research of "happy" or
    normal people rather than "abnormal" people, will
    increase the belief that happiness is attainable.
    Though points of view may vary on how happiness
    is achieved, or even what one considers the state
    of happiness to be, there will be broader
    acceptance that a true state of well being is
    accessible to everyone. Using new discoveries via
    the study of well being from "the cup is half
    full" perspective, efforts will be made to teach
    how to become happy.
  • 2.2.4 b OSTENTATION NATION More is More
  • Watch for the continuous and intensified drive
    for aspirational luxury. People will be searching
    for the most upscale and most fabulous handbag,
    suit, car, dog, vacation. There will be
    increasing pressure on the part of well-to-do
    consumers to distinguish themselves from the
    masses. Watch these consumers go for the high end
    on products, goods and services, as they search
    for the most unique in what they want to drive,
    where they travel, what they choose to wear.
    Handcrafted and customized, or rare, almost
    museum quality super luxe items will be in
    greater demand by high-end consumers.

  • 2.2.4 c Counter Trend Enough is Enough
  • That the standard of living in the United States
    is far better than many other places fosters an
    understanding that we "have enough." Watch for
    people of all ages to scale down and simplify, to
    insure they have time to invest in what matters
    friends, family, giving back, their legacy.
    Boomers approaching retirement will lead this
  • 2.2.4 d PAST PERFECT
  • Consumers insatiable desire for new, new, new
    will drive fashion, architecture, furniture,
    textiles in fact, all visual disciplines to
    mine past design practices. As companies become
    more focused on giving consumers something new,
    fresh, unique, they look to the past for
    reference. Lucky are those companies that can
    draw upon their own past product successes to
    generate present-day profits. Watch as companies
    draw upon days gone by to bring about the "new"
    longed for by retailers and shoppers alike.
  • 2.2.4 e Counter Trend The Power of Now
  • Those wanting to break away, find freedom from
    the common, the mundane will welcome a look to
    the future with new technologies, new uses and
    new materials light-emitting diodes (LED) and
    translucent cements, for example, to create new
    reality-altering atmospheres and sturdy

  • Behold aCerno the only predictive targeting ad
    network that drives transactions, propels brand
    metrics, finds prospects who are in-market for
    your product or service, and predicts what they
    are interested in. Your best prospects are
    delivered flawlessly and efficiently to you.
  • aCerno helps marketers motivate consumers by
    always putting the right message before their
    eyes when and where they're receptive to your
  • aCerno understands and capitalizes on the
    symbiosis among brands, retailers and consumers.
    Our predictive modeling gleans vital data from
    this ecosystem to target messages that pique
    interest and prompt the consumer reaction you
    seek. With aCerno, online advertising unearths
    greater market potential by delivering
    predisposed prospects. It's more than ads, Web
    sites, surfing and shopping it's relevant,
    intuitive, smart, insightful targeting to
    consumers who are looking for what advertisers
    offer. And everyone benefits.
  • By 2007, the overwhelming majority of apparel
    buyers and sellers had adjusted themselves to a
    world in which virtually all clothes sold in
    affluent countries were assembled in poorer
    countries. The relocation of manufacture had
    brought prices down over the previous 15 years
    and restrictions and taxes on international trade
    were generally headed for extinction. However,
    subtle differences between the ways each
    exporting country is treated has made
    understanding trade restrictions increasingly
    difficult. This briefing reviews apparel trade
    over the last 12 months and looks at how to deal
    with the major sourcing issues in 2008.

  • Since the concept of "atmospherics" was
    introduced in the early 1970s, there has been a
    slow, but growing, interest in understanding and
    predicting the impact of the environment on
    consumer responses. The objective of this session
    was to showcase state-of-the-art research and
    practice in retail atmospherics, and to identify
    research opportunities in this emerging area.
  • The term "retail atmospherics" refers to all of
    the physical and nonphysical elements of a store
    that can be controlled in order to enhance (or
    restrain) the behaviors of its occupants, both
    customers and employees. These elements present a
    multitude of possibilities including ambient cues
    such as color, smell, music, lighting, and
    textures, as well as architectural and
    artifactual elements. This session began with a
    detailed overview of how some of these
    environmental elements are being used by
    professional store designers and architects to
    create desired retail settings. This first
    presentation, "Theater of Retailing Selling
    Through the Senses" (Randall E. Gebhardt, Fitch
    Associates, Columbus, OH), included numerous
    examples of how retailers use sounds, scents, and
    visual elements of the store atmosphere to
    produce desired images and to increase sales. The
    examples included a tie store's use of leather
    and tobacco scents to create an atmosphere in
    which female gift buyers are comfortable in
    purchasing men's ties and a music store's use of
    audio engineering to create a store auditorially
    segmented by department

  • The second presentation, "Olfaction and the
    Retailing Environment" (Terence A. Shimp, Pam
    Scholder Ellen and Paula Fitzgerald Bone), gave
    examples of how olfactory stimuli are being used
    in the retail environment, along with a
    discussion of the theoretical explanations for
    the observed effects of such stimuli. The primary
    response to olfactory stimuli was said to be
    approach/avoidance behavior. Evidence was
    presented that olfactory stimuli have the
    potential to attract attention and motivate
    processing, enhance mood states, and affect
    salesperson/customer interactions. Potential
    moderators and mediators of olfactory effects
    were also discussed.
  • The final presentation, "The Impact of
    Atmospheric Music and Retail Density on Retail
    Crowding Perceptions and Their Consequences Does
    Song Augment the Throng?" (Karen A. Machleit,
    James J. Kellaris and Sevgin A. Eroglu),
    discussed the results of a laboratory experiment
    which manipulated both retail density and music
    loudness. The results indicated that both
    loudness of music and customer density increase
    subjects' perceptions of retail crowding
    however, these independent variables did not
    directly affect other customer responses. Rather,
    outcome responses such as the feelings
    experienced while shopping and store satisfaction
    are influenced by the level of crowding
    experienced by the shopper.

  • The session discussant, Meryl P. Gardner,
    provided insightful comments with respect to all
    three presentations. Of particular note was her
    observation that retailers make store changes on
    a number of dimensions and then measure the
    impact on variables such as store traffic
    patterns and sales. To contrast, academic
    researchers study only one or two aspects of the
    environment at a time, often in artificial
    settings which, unfortunately, is the only
    realistic option available to most researchers.
  • In conclusion, this session intended to
    contribute to consumer research by identifying
    opportunities for research in the area of
    person-environment relationships in marketing
    contexts. Although practitioners and
    environmental psychologists have long been aware
    of the impact of environmental stimuli on human
    behavior, consumer research has lagged behind in
    this field

  • Shari Waters
  • Shari Waters began her journey in retail more
    than 25 years ago when she agreed to work
    Saturdays in a sporting goods store for a family
    friend. Since then, she has worked her way up
    through the retail ranks from sales clerk to
    store manager, on to shop owner.
  • Experience
  • Shari's background includes working in various
    sectors of the retail industry and her roles have
    ranged from cashier to store manager. She has
    participated as a member of several retail
    round-table discussions with the National
    Association of College Stores and served as an
    officer of the Marketing/Management Advisory
    Committee at Ogeechee Technical College. Besides
    operating the specialty retail business she and
    her husband began, Shari also works as a
    freelance writer and consultant for other
    retailers and small-business startups.

  • From Shari Waters
  • I understand that being a shop owner/operator
    requires an extraordinary amount of skill. You
    have many hats to wear and must know when to wear
    which in order to be successful. From writing
    orders and managing employees to stocking new
    inventory, the job as a retailer is never done
    and there is always room for improvement. I hope
    this site offers the necessary tools, resources
    and support you need to successfully start and
    operate your retail business.

Top 10 Ways to Turn Off Customers
  • customer service tips
  • retail atmospherics
  • As individuals, we all have our own little pet
    peeves. What may turn off one customer may not
    bother another. As retailers, we can't afford to
    turn off a single customer and image is
    everything. Keeping our stores neat and clean is
    not only easy to do it is generally an
    inexpensive way to attract customers and create a
    pleasant store atmosphere.
  • Take a look around your retail store. Do any of
    the following situations exist? If not, look
    harder. Your store may be exhibiting some other
    offenses you haven't noticed until now. Here are
    ten ways your store may be turning off customers

  • 1. Dirty Bathrooms
  • This customer pet peeve clearly deserves the
    number one spot on this list. Retail store
    restrooms should always be sparkling clean,
    whether they are open for public use or not. Make
    sure to stock the bathrooms with plenty of paper
    products, soap, trash receptacles and clean it
  • 2. Messy Dressing Rooms
  • Keeping the dressing room area free of discarded
    hangers, tags and empty packaging goes beyond
    creating a neat store appearance, it is also a
    good step towards loss prevention. Take a quick
    look for out of place items after each customer
    uses the dressing room.
  • 3. Loud Music
  • Playing music in a retail store can help create a
    certain atmosphere for our shoppers. Music that
    is too loud, inappropriate or of poor quality can
    run a positive shopping experience.

  • 4. Handwritten Signs
  • In this era of technology, there is no excuse for
    displaying handwritten signage. It is too simple
    to print a sign from our computers or use
    pre-printed signs. Printed signs simply look more
    professional and signs with hard-to-read
    handwriting can be a customer turn-off.
  • 5. Stained Floor or Ceiling Tiles
  • It is true, accidents happen. However, our
    customers don't have to see them. Dirty carpet,
    stained flooring and ugly ceiling tiles can turn
    off many shoppers. Sweeping, vacuuming and
    mopping should be done on a regular basis.
    Consider hiring a professional cleaning crew to
    polish tile floors. Replace stained portions of
    carpet and ceiling tiles where possible.
  • 6. Burned-out or Poor Lighting
  • Replace any burned out light bulbs as soon as
    possible. Make sure all customer areas of the
    store have ample lighting and take into
    consideration shoppers with aging or less than
    perfect eyesight. Your store should be well
    illuminated for all customers
  • 7. Offensive Odors
  • Customers understand if they visit a lawn and
    garden center they will have to deal with the
    smell of fertilizer. The same goes for shoppers
    of a feed supply store. Certain odors are
    understandable and may even appeal to the
    customer's sense of smell. However, shoppers
    don't want to smell an employee's lunch drifting
    across the store. Use neutralizers to combat any
    offensive odors.

  • 8. Crowded Aisles
  • Consumers like a selection but not if it means
    sacrificing comfort while shopping. Be sure your
    store is designed to allow adequate space between
    aisles and keep walkways free of merchandise.
    Cramped spaces can ruin a shopping experience and
    turn off a customer.
  • 9. Disorganized Checkout Counters
  • A stack of hangers, returned merchandise and
    sloppy work areas behind the checkout is a huge
    customer turn-off. This particular area where a
    customers financial transaction is taking place
    should not show any signs of disorganization.
    Like messy dressing rooms, a disorganized
    checkout counter can lead to theft. Keep those
    register areas neat and tidy.
  • 10. Lack of Shopping Carts/Baskets
  • Your type of retail shop may not require a
    shopping cart or y
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