module v retail mgt

MODULE VSTORE OPERATIONS

RETAIL MARKETINGPRESENTED BY : TEAM III

Retailing and Retail Management

Retailing :

Commercial transaction in which a buyer intends to consume the good or service through personal, family, or household use.

Retail Management :

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.

STORE The retail store is the place where the customers take a decision on the purchase of the  products  offered by the retailer.

Key roles in store environment The retail store is of prime importance to the retail origination, for two reasons.

1. The retail store is the primary source of revenue for the retailer .

2. It is the point where the customer actually interacts with the retail store and its offerings .

Store AtmosphereThe store must offer a positive ambience to the customers for them to enjoy their shopping and leave with a smile.1.The store should not give a cluttered look. 2.The products should be properly arranged on the shelves according to their sizes and patterns. Make sure products do not fall off the shelves. 3.There should be no foul smell in the store as it irritates the customers. 4.The floor, ceiling, carpet, walls and even the mannequins should not have unwanted spots. 5.Never dump unnecessary packing boxes, hangers or clothes in the dressing room. Keep it clean. 6.Make sure the customers are well attended. 7.Don’t allow customers to carry eatables inside the store

Cash Handling

1. It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the store.

2. Cash Registers, electronic cash management system or an elaborate computerized point of sale (POS) system help the retailer to manage the daily sales and the revenue generated.

Prevent Shoplifting/Safety and Security

1. The merchandise should not be displayed at the entry or exit of the store.

2. Do not allow customers to carry more than three dresses at one time to the trial room.

3. Install CCTVs and cameras to keep a close watch on the customers.

4. Each and every merchandise should have a security tag.

5. Ask the individuals to submit carry bags at the security.

6. Make sure the sales representative handle the products carefully.

7. Clothes should not have unwanted stains or dust marks as they lose appeal and fail to impress the customers.

8. Install a generator for power backup and to avoid unnecessary black outs.

9. Keep expensive products in closed cabinets.

10. Instruct the children not to touch fragile products.

11. The customers should feel safe inside the store.

Customer Service

1. Customers are assets of the retail business and the retailer can’t afford to lose even a single customer.

2. Greet customers with a smile.

3. Assist them in their shopping.

4. The sales representatives should help the individuals buy merchandise as per their need and pocket.

5. The retailer must not oversell his products to the customers. Let them decide on their own.

6. Give the individual an honest and correct feedback. If any particular outfit is not looking good on anyone, tell him the truth and suggest him some better options.

7. Never compromise on quality of products. Remember one satisfied customer brings five more individuals to the store. Word of mouth plays an important role in Brand Promotion.

Refunds and Returns

1. Formulate a concrete refund policy for your store.

2. The store should have fixed timings for exchange of merchandise.

3. Never exchange products in lieu of cash.

4. Never be rude to the customer, instead help him to find something else.

Visual Merchandising1. The position of dummies should be changed frequently.

2. There should be adequate light in the store. Change the burned out lights immediately.

3. Don’t stock unnecessary furniture at the store.

4. Choose light and subtle colours for the walls to set the mood of the walk-ins.

5. Make sure the signage displays all the necessary information about the store and is installed at the right place visible to all.

6. The customers should be able to move and shop freely in the store.

7. The retail store should be well ventilated.

Training Program

1. The store manager must conduct frequent training programs for the sales representatives, cashier and other team members to motivate them from time to time.

2. It is the store manager’s responsibility to update his subordinates with the latest softwares in retail or any other developments in the industry.

3. It is the store manager’s responsibility to collate necessary reports (sales as well as inventory) and send to the head office on a daily basis.

Inventory and Stock Management

1. The retailer must ensure to manage inventory to avoid being “out of stock”.

2. Every retail chain should have its own warehouse to stock the merchandise.

3. Take adequate steps to prevent loss of inventory and stock

Legal Compliance1. Ensure that the store is in compliance with employment laws, including

those regarding wage and hour, human rights and equal employment opportunities.

2. Maintain safe working conditions for the employees and customers coming in the store, resolve any safety concerns quickly.

3. Ensure store security from internal and external theft and get to know the proper apprehension and prosecution procedures for your state.

In brief Typically in a retail store, the following tasks need to be performed.

1. Store administration and management of the premises

2. Managing inventory and display

3. Managing receipts

4. Customer service

5. Managing promotions, events, alliances and partnerships

Role of store manager Store Manager:

An individual responsible for managing the overall functioning of the store is called a store manager.

A store manager takes care of the day to day operations of the store and ensures maximum profitability for his store.

In simpler words a retail store is a store manager’s baby.

HierarchyGeneral Manager

↑Store Manager

↑All employees of the store

(Floor manager, cashier, Department manager, Asst Store manager)

Gender Preference

Both Male/Female.

In certain cases the selection might depend on the merchandise available in the store.

A store specializing in female lingerie would prefer a female store manager as she would be more comfortable with the female buyers.

Responsibilities of the Store Manager

1. Recruiting employees for the store is the store manager’s prime responsibility.

2. The store manager must make sure his store is meeting the targets and earning profits

3. The store manager is responsible for maintaining the overall image of the store

4. He is responsible for managing the assets of the store

He must ensure1. The store is kept clean 2. Shelves and racks are properly stocked and products do not fall off the shelves. 3. Mannequins are kept at the right place to attract the customers into the store and rotated

frequently. 4. The merchandise should be according to the season as well as the latest trends. 5. The store is well lit, ventilated and offers a positive ambience to the customers. 6. The signage displaying the name and logo of the store is installed at the right place and

viewable to all.

Types of store location1. Central Business District

2. Stand alone locations

3. Convenience location

4. Destination Location

I. Malls

II. Conventional Shopping Center

Retail Location Strategies1. Department Store

2. Specialty Apparel Store

3. Category Specialists

4. Grocery Stores/ Food Stores

Importance of store location in retail

1. Consumer Choice

2. Need for Competitor Advantage

3. Consideration of Trends

4. High Involvement

5. Property Asset

6. Declining number of Sites

7. Cost Factor

8. Revenue Factor

9. Means of success

10. Not Changeable

11. Consumer Profile

Factors affecting location selection

1. Pedestrian Traffic

2. Vehicular Traffic

3. Parking Facilities

4. Transportation

5. Store Composition

6. Specific Site

7. Occupancy

STP Approach of retailing1. Segmenting

2. Targeting

3. Positioning

Segmenting1. Geographic

2. Demographic

3. Psychographic

4. Behavioral

Demographic segmenting1. Age and Life style

2. Gender and Sexual Orientation

3. Marital Status

4. Income

5. Status

6. Family Size

7. Occupation

8. Education Level

9. Religion

Psychographic Segmentation1. Life styles

2. Personality

3. Values

4. Beliefs

Behavioral segmentation1. Occasions

Regular

Special

2. Benefits

Quality

Service

Economy

Specialty

continued3. User Status

Non user

Potential

First Time

Regular

Ex User

continued 4. buyer Readiness state

Unaware

Aware

Informed

Interested

Desired

Intended to Buy

continued 5. Quantity Consumed / Usage Rate

Light

Medium

Heavy

Continued 6. Loyalty Status

Hardcore

Soft core

Split loyal

Switchers

Continued 7. Attitude

Enthusiastic

Positive

Indifferent

Negative

Hostile

Significance of Segmenting in Retail

1. Adjustment of product and Retail Marketing Appeals

2. Allocation of Market Budget

3. Fighting Competition Effectively

4. Understanding and meeting the needs of consumers

5. Minimizing Aggregation Risk

6. Targeted Marketing

Continued7. Development of proper marketing mix

8. Store Location Decision

9. Understand Consumer Behavior

10. Merchandising decisions

11. Promotional Campaigns

12. Positioning

Targeting Strategies1. Undifferentiated or Mass Marketing

2. Differentiated or Selective Marketing

3. Concentrated or Focus Marketing

Significance of Targeting in Retail

1. Helps in providing important Services and Features

2. Ability to offer the Right Products

3. Retailers more aware about prices

4. Retailer gets more sales

5. Helps in knowing where consumer lives

Positioning Strategies1. Benefit Positioning

2. Attribute Positioning

3. User Positioning

4. Quality or Price Positioning

5. Competitor Positioning

6. Image/Personality Positioning

7. Merchandise category Positioning

8. Price and Quality Positioning

9. Specialty Products Positioning

Requisites of Positioning in Retail1. Specific Shopping Mode

2. Clear Focus

3. Recognizable and Memorable

4. Consistency

5. Profitability

Store Design Element most responsible for planning the store environment.

Objectives:

1. Consistent with image and strategy

2. Positively influence consumer behavior

3. Considers cost vs value

4. Flexibility

Elements of store design1. Exteriors

2. Interiors

Store exteriors1. Place of location

2. Marquee

3. Store Entrance

4. Display Window

5. Door Types

6. Walkways

7. Size of the Building

8. Awning

9. Colors and Materials

Store Interiors1. Envelop

2. Store Layout

3. Signage

4. Visual Merchandising

5. Colors

6. Lighting

7. Smells

8. Sounds

Store Layout Associated with the user movement ease inside the store.

1. Grid layout

2. Race court/Loop Layout

3. Free Flow/ Boutique Layout

4. Spine Layout

Grid layout

Race Court / Loop Layout

Free Flow / Boutique Layout

Spine Layout

Other layouts1. Soft aisle layout

2. Minimal floor layout

3. Combination floor layout

4. Universal access layout

Importance of store layout1. Implement the desired image

2. Enhancing the efficiency of Store Operations

3. Maximizing the sales revenue

4. Prevention of Merchandising Shrinkage

5. Energy Efficiency

Steps of Designing Layouts1. Selecting the basic store layout plan

2. Allocating selling space to different departments

3. Location departments within the store

4. Organisations of merchandise within departments

Visual Merchandising Visual Merchandising can be called as the silent salesman for retail formats.

Visual Merchandising also referred to as display is defined as the presentation of products in order to sale .

Elements of visual merchandising

1. Window display

2. Lighting

3. Music

4. Signs and graphics

5. Colors

6. Props

7. Mannequins

Role of visual merchandising1. Increasing sales

2. Informing and educating customers

3. Enabling ease of shopping

4. Creating and enhancing the stores image

Tools Used For Visual Merchandising

1. Products

2. Brand

3. Color

4. Size

5. Quality/price

6. Product characteristics

7. Lifestyle

8. Age group

9. Combination of several elements

Consumer Touch Point “ A point of contact between a shopper or a prospect with the store.”

Types :

1. Broadcast

2. Email

3. Internet

4. Systematic

5. Mail

6. Event

7. Phone/fax

8. Personal

Managing touch points1. Identifying

2. Prioritizing

3. Assessing

4. Defining improvement

5. Defining business impact and resources

6. Developing key action plans

Shopper Marketing The employment of any marketing stimuli, developed based on deep understanding of shopper behavior designed to build brand equity engage the shopper and lead him/her to make a purchase.

Components of shopper marketingAt home On the Go In store

Paid media Mobile Signage of Shelf

Relationship marketing Out of home In store coupons

Product Placement Product Placement Video Display

Search before you buy Alternative out of home Interactive media

Social media Interactive vending Sampling programs

Displays

Shopper Marketing Process1. Develop customer insights

2. Understand the path to purchase

3. Influence the Shopper

4. Measure and generate feedback

5. Integrated Marketing and Merchandising

6. In store advertising and shopper marketing

Benefit of shopper Marketing1. Enhances strategic relevance with retailers

2. Improves shoppers loyalty

3. Increases preferences in in store programs

4. Improves innovation planning and execution

5. Reduces out of stock

6. Improves brand equity

Thank You