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1 RETAILMANAGEMENTSTUDYMATERIALBBAMARKETIN GSPECIALISATIONVISEMESTER(2011 ADMISSION)UNIVERSITYOFCALICUTSCHOOLOFDIS TANCEEDUCATIONTHENJIPALAM, ,MALAPPURAM,KERALA-673635 SchoolofDistanceEducationRetailManagemen tPage2 UNIVERSITYOF CALICUTSCHOOLOFDISTANCEEDUCATIONSTUDYMAT ERIALBBA(MARKETINGSPECIALISATION) ,DepartmentofCommerceSullamussalamScienc eCollege, ,AssociateProfessor,DepartmentofCommerce , ,MadappallyType settings&Lay outComputerSection, SDE Theword retail isderivedfromtheFrenchwordretailerwhichm eans tocutapieceoff Presumablythereasonforthisis;that, ,therewere12millionsuchunitsofwhich98%ar esmallfamilybusinesses, amongretailenterprises,whichemployhiredw orkers, : Heisregardedasthelastlinkinthechainofdis tribution. Hepurchasesgoodsinlargequantitiesfromthe wholesalerandsellinsmallquantitytothecon sumer.

2 Hedealsingeneralproductsoravarietyofmerc handise. Hedevelopspersonalcontactwiththeconsumer . Heaimsatprovidingmaximumsatisfactiontoth econsumer. : Theretailerperformsstoringfunctionbystoc kingthegoodsforaconsumer. Hedevelopspersonalcontactwiththeconsumer sandgivesthemgoodsoncredit. ,theft,deteriorationinthequalityandspoil ageofgoods. Heresortstostandardizationandgradingofgo odsinsuchawaythattheseareacceptedbythecu stomers. $500billionandoneofthetopfiveretailmarke tsintheworldbyeconomic , ,India' ,largerformatconvenience storesandsupermarkets accountedforabout4percentoftheindustry, 'sretailandlogisticsindustryemploysabout 40millionIndians( ).Asamajorsourceofemploymentretailingoff ersawiderangeofcareeropportunitiesinclud ing;storemanagement, ,Indiancentralgovernmentdeniedforeigndir ectinvestment(FDI)inmulti-brandretail,fo rbiddingforeigngroupsfromanyownershipins upermarkets, MegaMalls Multiplexes Largeandsmallsupermarkets Hypermarkets Departmentalstoresare afewformatswhichflourishinginthebothbiga ndsmallregionalmarketsAsthemajorcitiesha vemadethepresentretailscenariopleasant, strategicplans.

3 Totapintothepsycheofconsumers (suchasasupermarketoradepartmentstore),r etailerscanbecategorizedby(a)Ownership,( b)Storestrategymix,and(c) , canbeownedbyasoleproprietor,partnersorac orporation. , ,aremanagedandrunbyindependents,includin gbarbershops,drycleaners,furniturestores ,bookshops, , ,thepurchasing anddecisionmaking ,specialization, ,mainlybecausetheyhavetheopportunitytota keadvantageof"economiesofscale" ,thusincreasingtheirmargins,ortheycancut pricesandattractgreater ,independentretailerswithlesserfinancial means, "franchiser"(whichmaybeamanufacturer,who lesaler,oraservicesponsor)anda"franchise e"orfranchisees, ,royaltiesandashareoftheprofits, , ,thathavecombinedtheirfinancialresources andtheirexpertiseinordertoeffectively ,storage,shoppingfacilities, , canbeclassifiedbyretailstorestrategymix, whichisanintegratedcombinationofhours,lo cation,assortment,service,advertising.

4 Isgenerallyawellsituated,foodoriented ;forfillinitemssuchasbread,milk,eggs, :Isadiversified ,someapparelitems,bakery,filmdeveloping, jams,pickles,books,audio/videoCD' :Adepartmentstoreusuallysellsagenerallin eofapparelforthefamily,household linens, storesincludePantaloon, :Concentratesonthesaleofasinglelineofpro ductsorservices,suchasAudioequipment,Jew ellery,BeautyandHealthCare, ,MusicWorldforaudioneeds,Tanishqforjewel leryandMcDonalds, PizzaHutandNirula' , ;theabilitytobuymerchandisenotavailablei nlocalstores,theincreasingnumberofwomenw orkers, :Where, ' , :Thisinvolvescontactbetweentheprospectan dtheretaileroverthephone, areprivateinsurancecompanies, :Thisisatypeofnonstoreretailinginwhichth eretailersoffersthemerchandiseinacatalog ue, Theadvantagestotheretailersincludelovero peratingcosts,lowerrents,smallersalessta ff andabsenceofshop :Herethemarketers advertisetheseproducts/servicesinmagazin es,newspapers,radioand/ortelevisionoffer inganaddressortelephonenumbersothatconsu merscanwriteorcalltoplace "Directresponseadvertising.

5 " "ordernow." :AlthoughinaverynascentstageinIndia,isth eultimate innonpersonal,nonstoreretailing. Productsaresolddirectlytocustomers/buyer sfrommachines. 'sdispensing ,alargenumberofIndianbanksalsoprovideATM services, :Isaretailformatinwhichretailerscommunic atewithcustomersandofferproductsandservi cesforsale, , , , ,lowmargin,lowprice, wanttoexpandtheirmarketsandbegintostockm oremerchandise,providemoreservices, , storeillustratesthe"wheelofretailing" ,thedepartment ,stockselection,advertising ,becauseitbecomesSchoolofDistanceEducati onRetailManagementPage8vulnerabletolowco st/lowserviceformats,suchasfulllinedisco untstores (a)Targetmarkets(b)Merchandisemanagement (c)Storelocation(d)Storeimage(e)Storeper sonnel(f)Storedesign(g)Promotion,and(h) :Althoughretailersnormally aimatthemassmarket,agrowingnumberareenga ginginmarketingresearchandmarketsegmenta tion.

6 Theobjectivehereistoidentifythemerchandi sethatcustomers want,andmakeitavailableattherightprice,i ntherightplaceattherighttime. MerchandiseManagementincludes(i)merchand iseplanning(ii)merchandisepurchase,and(i ii) , ,inventoryrequirements, , Control:dealswithmaintainingtheproperlev elofinventoryandprotectingitagainstshrin kage(theft,pilferageetc.). ' ,trafficpatterns,accessibility,competito rs'location, :Astoreimageisthementalpicture,orpersona lityofthestore, , services;storelayout,personnel, aswellasthequality, , ,toprovidetrainingto, :Astore' andinvitingandshouldblendwiththestore' "Atmospherics"isusedtorefertotheretailer ' :retailpromotionincludesallcommunication ,promotecustomertraffic, ,both, storesandspecialitystores, ThemediausedareTV,Radio,Newspapers,Outdo ordisplaysanddirectmail,otherformsofprom otioninclude,displays.

7 Retailersaregenerallywaryofprovidingcred it,becauseofadditionalcosts-financingacc ountsreceivables, (VMS)isoneinwhichthemainmembersofadistri butionchannel producer,wholesaler,andretailer systems,producers,wholesalers, , , , ,eachcompany , , , , , ,anautopartssuppliermightpracticeforward integrationbypurchasing ,theautopartssuppliermightpracticebackwa rdintegrationbypurchasingasteelplanttoob taintherawmaterialsneededtomanufacture ,inwhichmembersatthesamelevelinachannelo fdistributionbandtogether instrategicalliancesorjointventurestoexp loitanewmarketingopportunity.**SchoolofD istanceEducationRetailManagementPage1111 Module 2 StrategicplanninginretailingRetailEnviro nmentTherehasbeenatremendousmetamorphosi sintheretailingenvironmentinIndiaoverthe lasttenyears, , Themicroenvironmentconsistsoftheactorsin theretailer simmediateachievementthataffectitsabilit ytoserveitsmarket-suppliers,intermediari es, customers, ,social, arebusinessfirmsandindividuals aretailstoremustobtainvariousproductsfro mdifferentsupplierssothatasandwhencustom erscomeandasktheproduct, , ,itsgeographicdistribution,density,mobil itytrends, , sociallyharmfulproductssuchascigarettes ,,activists,socialworkers, ,prices,savingsandcreditavailability.

8 Inretailsection :e-web-store,e-shop,e-store,Internetshop ,web-shop,web-store,onlinestore, (orm-commerce)describespurchasingfromano nlineretailer' ,flipkart, ,arecentdevelopment, ' (EDI)Thisisthecomputertocomputerexchange ofinformation, andbusinessdocuments, ,informationregardingpurchaseorders,invo ices (QR)SystemIntoday'sretailingenvironment "youareeitherquickoryouaredead".Manyvend orshavedevelopedretailspecificERPsystems whichhelptointegrate allthefunctionfromwarehousingtodistribut ion, ,Figurehelpstheretailerinmaintaininghiss tocks,receivingSchoolofDistanceEducation RetailManagementPage1313suppliesontime,p reventing (IFID)Itisamethodofremotelystoringandret rievingdatausingdevicescalledRFID tags ,suchasanadhesivesticker, ,marketersarekeentoknowtheconsumers shoppingbehaviour,whichinvolvesanunderst andingofdecisionvariableslikewhenwhere, ' 'sresponsetoretailmarketingmixhasanimpac tonthefirm' ,attitude, ,motives,perceptions, ' ' segmentsbasedonfactorssuchasage,incomefa milysize,gender,occupation, 'spsychologyguidestheretailer'ssegmentat ion ,personality, , attachmeaningtoincomingstimulibyformingm entalpicturesofpersons, ,sound,taste, (hear,feel,tasteandsmell) customersees,hears,feels, , ,stability,responsibility.

9 Workaholic,Impulsive,Selfconfident,Frien dliness,Adaptability,Ambitious,Introvers ion, (goodsandoutlets),spatialrelationship (locationofshoppingcenterandmerchandisin gstores)andsocialfactors(referencegroups andopinionleaders).Theenvironmentalfacto rsinfluenceconsumerwants,learning,motive setc. ,occupation,wealth, , s way/styleoflivingasdeterminedbyhis/herac tivities, ,doubleincomeno-kids(DINKS)familiesinmet rosregularlyshop atsupermallsbecauseoflimitedtimeattheird isposalandthey alsolookforentertainment (RIS)isaflexibletoolthatenablesyoutocoll ect,aggregate ,SalesandDistribution, andInventoryManagement, andalsoenablesyoutoevaluatedatathatispar ticularlysignificantforRetail(datarelati ngtoretailpricechangedocumentsorthePOSin terface,forexample).

10 : SalesInformationSystem(SIS) PurchasingInformationSystem(PURCHIS) InventoryControlling(INVCO) QualityManagementInformationSystem(QMIS) RetailInformationSystem(RIS)TheLogistics InformationSystem(LIS)alsoincludesthefol lowinginformationsystems: ProductionInformationSystem PlantMaintenanceInformationSystemRetailr esearchMarketingresearchisthefunctiontha tlinkstheconsumer,customerandpublictothe marketthroughinformation-usedtoidentifya nddefinemarketingopportunitiesandproblem s;generate ,refine,andevaluatemarketingactions; ,designsthemethodsforcollecting information,managesandimplementsthedatac ollectionprocess, Undertakemarketsituationanalysis Workatdevelopingstrategytobuildcompetiti veadvantage Workoutspecificmarketdevelopmentprograms Implementstrategywithmeasureableobjectiv esQualitativeresearchmethodsThequalitati veresearchisusedtofindoutwhatisinaconsum er , (likefeelings,thoughts,intensions,pastbe havior ) Definingtheproblemindetail Suggestinghypothesestobetestedinsubseque ntresearch Generationnewproductorserviceconcepts,pr oblems,solutionsproductfeaturesandsoon Obtainingpreliminaryreactiontonewproduct concept Gettingtoknowtheconsumer sbestviewandvocabulary , consumers,retailers,industrialusersetc.