RETATILING INDUSTRY IN INDIA.

Presented by, -

PratikPankaj

Shabbir Priya

Deepikakhusbu

RETAILING: AN OVERVIEW

An oviervi

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INDIAN RETAILING LARGEST EMPLOYER

AFTER AGRICULTURE- 8% OF POPULATION.

HIGHEST OUTLET DESTINY IN WORLD.

AROUND 12 mn OUTLETS.STILL EVOLVING AS AN

INDUSTRY.LONG WAY TO GO.

India’s advantage

India ranked 1st in the Global AT Keareny retail development index

india

Russia

China

INDIAN RETAIL MARKET

Traditional format retaliers Kiranas Kiosks Street market Exclusive/multiple brand outlets

Objectives

Determine the types of organizations in this sector.

Learn what marketing decisions organizations in this sector make.

Understand the major trends in this sector.

Retailing

Retailing Basics

Types of retailers Marketing

decisions Retailing trends

Retail life cycle Wheel-of-retailing Service levels Retail positioning

strategies Nonstore retailing Corporate

retailing

Retailing

Specialty store Department

store Supermarket

Discount store Convenience

store Off-price

retailer Superstore

Major Store Retailer Types

Retailing

Retail-store types pass through the retail life cycle.

The wheel-of-retailing describes how new store types emerge.

Retailers can offer one of four levels of service: Self-service, self-selection, limited

service, and full service

Retailing

Four broad retail positioning strategies include: Bloomingdale’s Tiffany Sunglass Hut Wal-Mart

Non-store retailing has been growing faster than store retailing

Retailing

Corporate chain store

Voluntary chain Retailer

cooperative

Consumer cooperative

Franchise organization

Merchandising conglomerate

Major Types of Retail Organizations

Retailing

Retailing Basics

Types of retailers Marketing

decisions Retailing trends

Target market Product

assortment and placement

Services mix and store atmosphere

Price Promotion Place

Slide 11 in Chapter 15

To accompany A Framework for Marketing Management, 2nd Edition

Retailing

General business district

Regional shopping center

Community shopping center

Strip mall (shopping strip)

Location within a larger store or operation

Location Options for Retailers

Retailing

Retailing Basics

Types of retailers Marketing

decisions Retailing trends

New retail forms Intertype competition Growth of giant

retailers Technology Global expansion Selling experiences Competition between

store-based and non-store-based retailing

Retailing

Retailing

All activities involved in selling goods &

services directly to final consumer for

personal, non-business use.

1. A retailer’s most important decision concerns the target market.

2. Periodic marketing research is a must to ensure that ,reaching their target customers.

Target Market

Must match the target market’s shopping expectations.

The retailer has to decide on product-assortment breadth and depth.

Differentiation strategy. Some possibilities are: Feature exclusive national brands not available

at competing retailers Feature mostly private branded merchandise Feature surprise or ever-changing merchandise Feature latest merchandise first Offer a highly targeted assortment

Product Assortment

Decide on the services mix

o Pre-purchase services like accepting telephone and mail orders

o Post-purchase services like shipping and delivery

o Ancillary services like parking, restaurants etc.

Place decision

Location Decision: Key to Success.

High traffic- High Rent

General business districts

Regional shopping centers

Community shopping centers/ malls etc.

Sales Effectiveness by:

1. Number of people passing

2. Percentage who Enter the store.

3. Percentage who buy.

4. Average amount per sale.

Store AtmosphereLook and physical layout that makes hard or easy to move out.

Walls: Earthy tone that convey freshness.

Lighting: Warm accent lights that direct attention to products.

Signate: Add big picture of healthy food.

Produce Department: Enlarge the section.

Floors: Wood, plastic etc floors for perishable items

Bakery: The centre point etc.

Retailing FormsRetailing can be done in two ways:

1. Store. 2. Non Store.

Types of Retailers

a. Specialty Store:

Narrow Product line with a deep assortment, such as

apparel stores, furniture stores, bookstores etc.

b. Department Store:

Several Product lines.

typical clothing, home furnishings

and household goods

c. Super market:

Relatively large,

low cost low margin,

high volume,

self service operation designed

to serve total needs for food, laundry

and household maintenance products

d. Convenience Store:

Relatively small store located near residential area,

open long hours seven days a week

carrying a limited line of high turnover

convenience products at slightly higher prices

e. Discount store:

Standard merchandise

sold at lower prices with lower margins

higher volumes

f. Off-Price Retailer:

Merchandise bought at less than regular wholesale price

sold at less than retail;

often left over goods,

overruns and irregulars obtained at lower prices.

Retail Services

Retailers can position themselves as offering one of four levels of service:

a. Self-service: It is corner stone of all discount operations.

b. Self selection: Customers find their own goods, although they can ask for assistance

c. Limited service: These retailers carry more shopping goods and customers need more information and assistance

d. Full Service: Sales people are ready to assist in every phase of the locate-compare-select process.

2. Non-Store.

Non Store Retailing:1. Direct Selling.: Multilevel Selling or network

Selling. Eg Amway etc

2. Direct Marketing.: Telemarketing, Internet

Marketing, mailing etc.

3. Automatic Wending.: Kiosks.

4. Buying Service. Eg Sodexo pass.:

Retail positioning strategies :

By combining these different service

levels with different assortment

breadths, we can distinguish the four

broad positioning strategies available to

retailers .

Departmental stores to malls, one-stop

shopping

Marketing channels are increasingly becoming

professionally managed and programmed. New

store formats launched

Technology as a competitive tool for inventory

management, fund transfer etc.

Retailers with unique formats and strong brand

positioning are moving to other countries like

McDonalds etc

Rise in establishments that provide a place for

people to congregate such as coffee shops etc.

Trends in Retailing

Retailing business owner use strategic planning,

advanced information system, and sophisticated

marketing tools.

They measure performance more on return on

investement basis than on profit margin basis.

They segment their market, improve their

targeting and positioning.

Conclusion: