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Note for Retail Management - RM By JNTU Heroes

  • Retail Management - RM
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RETAIL MANAGEMENT 14MBAMM302 CONTENTS MODULE NO. MODULE NAME PAGE NOS. 1 Introduction & perspectives on retailing 4 - 23 2 Theories of Retailing 24 – 27 3 Retailing strategy for setting up Retail 28 -41 organisation and planning 4 Store management and visual merchandising 42 - 59 5 Retail pricing 60 - 69 6 Relationship marketing & international 70 - 79 retailing 7 Retail audit and ethics in Retailing DEPT. OF MBA /SJBIT 80-84 Page 3

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RETAIL MANAGEMENT 14MBAMM302 Module 1 Introduction and Perspectives on Retailing World of Retailing: Retailing is a global, high-tech industry that plays a major role in the global economy. About one in five U.S. workers is employed by retailers. Increasingly, retailers are selling their products and services through more than one channel—such as stores, Internet, and catalogs. Firms selling services to consumers, such as dry cleaning and automobile repairs, are also retailers. Retail management: The various processes which help the customers to procure the desired merchandise from the retail stores for their end use refer to retail management. Retail management includes all the steps required to bring the customers into the store and fulfil their buying needs. Retail management makes shopping a pleasurable experience and ensures the customers leave the store with a smile. In simpler words, retail management helps customers shop without any difficulty. What is Retailing?  Most common form of doing business  It consists of selling merchandise from a permanent location (a retail store) in small quantities directly to the consumers.  These consumers may be individual buyers or corporate.  Retailer purchases goods or merchandise in bulk from manufacturers directly and then sells in small quantities  Shops may be located in residential areas, colony streets, community centers or in modern shopping arcades/ malls. Meaning of Retailing:  According to Kotler: ´Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business uses. DEPT. OF MBA /SJBIT Page 4

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RETAIL MANAGEMENT  14MBAMM302 A process of promoting greater sales and customer satisfaction by gaining a better understanding of the consumers of goods and services produced by a company. Characteristics of Retailing: 1. Direct interaction with customers/end customers. 2. Sale volume large in quantities but less in monetary value 3. Customer service plays a vital role 4. Sales promotions are offered at this point only 5. Retail outlets are more than any other form of business 6. Location and layout are critical factors in retail business. 7. It offers employment opportunity to all age Types of Retailers: Store Retailing by Store based Strategy Food Retailers 1. Departmental stores. 2. Convenience Store. 3. Full Line Discount. 4. Conventional Supermarket. 5. Specialty Stores 6. Food Based Superstore 7. Off Price Retailer. 8. Combination Store. 9. Variety Store. 10. Super Centres 11. Flea Market. 12. Hypermarket. 13. Factory Outlet. 14. Limited Line Stores. 15. Membership Club. 1. Department Store Department stores are large retailers that carry wide breadth and depth of products. They offer more customer service than their general merchandise competitors. Department stores DEPT. OF MBA /SJBIT Page 5

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RETAIL MANAGEMENT 14MBAMM302 are named because they are organized by departments such as juniors, men’s wear, female wear etc. Each department is act as “ministore”. Means the each department is allocated the sales space, manager and sales personnel that they pay an attention to the department. IMC programme for each department is different and particular. Department store utilizes various sources for marketing communication. Due to overstoring most of the budget are spending on advertising, couponing and discounts. Unfortunately the use of coupons diminishes profits and creates a situation where consumer does not buy unless they receive some type of discount. 2) Convenience stores: Convenience stores are located in areas that are easily accessible to customers. Convenience store carry limited assortment of products and are housed in small facilities. The major seller in convenience stores is convenience goods and non alcoholic beverages. The strategy of convenience stores employ is fast shopping, consumer can go into a convenience stores pick out what they want, and check out relatively short time. Due to the high sales, convenience store receives products almost daily. Because convenience store don’t have the luxury of high volume purchase. 3) Full line Discount Stores It conveys the image of a high volume, low cost, fast turnover outlet selling a broad merchandise assortment for less than conventional prices. It is more to carry the range of products line expected at department stores, including consumer electronics, furniture and appliances. There is also greater emphasis on such items as auto accessories, gardening equipment, and house wares. Customer services are not provided within stores but at centralized area. Products are sold via self service. Less fashion sensitive merchandise is carried. 4) Specialty Store: Specialty store carry a limited number of product within one or few lines of goods and services. They are named because they specialize in one type of product. Such as apparel and complementary merchandise. Specialty store utilizes a market segmentation strategy rather than typical mass marketing strategy when trying to attract customers. Specialty retailers tend to specialize in apparel, shoes, toys, books, auto supplies, jewellery and sporting goods. In recent years, specialty stores have seen the emergence of the category killer. Category killers (sometimes called power retailer or category specialty) are generally discount specialty stores that offer a deep assortment of merchandise in a particular category. 5) Off-price Retailers Off price retailers resemble discount retailers in that they sell brand name merchandise at everyday low prices. Off price retailers rarely offer many services to customers. The key strategy of off price retailers is to carry the same type of merchandise as traditional department stores but offer prices that can be 40 to 60 percent lower. To able to offer the low prices, off price retailers develop special relationship with their suppliers for large quantity of DEPT. OF MBA /SJBIT Page 6

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