1742-Retailoutlet and Brand Mgt

8/2/2019 1742-Retailoutlet and Brand Mgt

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DBA 1742 RETAIL OUTLETDBA 1742 RETAIL OUTLETAND BRAND MANAGEMENTAND BRAND MANAGEMENT


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UNIT 1- INTRODUCTION TO RETAIL OUTLETUNIT 1- INTRODUCTION TO RETAIL OUTLET

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 isleading to a greater competition activity. As a result of acute competitor activitycompanies 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 ofmarketing approach. There are of course different ways of approaching retailmarket and learn retail marketing principles. Fundamentally you have to look retailmarketing through customers eyes.

It Retailers have a wider knowledge of markets (customers) and also the retailapplications than the manufacturers. In fact they are in close contact with thecustomers for your companys products than the company itself.

A retailer is also a middleman in the channel of distribution. In fact a retailer is thelast 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.


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Thus he is a merchant middleman between thewholesaler and the consumer. The basic feature of the

retail trade is that the retailer purchases the goods from awholesaler and resells them in small quantities to differentconsumers.

The retailer studies the requirements of the consumers,their likes and dislikes and accordingly stocks orreplenishes the goods in his shop. He pays personalattention to customers, pleases them in many respectsand is also very polite relative to other members of the

distribution channel. It is the retailers who have to stick tothe principle of right goods, right quality, right quantity, etcwith a prompt after-sales service. Prompt and properservice to customers is the meaning in brief to retailing


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1.1a Retailing1.1a 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 bythe purchaser.[1] Retailing may include subordinated services, such as delivery.

Purchasers may be individuals or businesses. In commerce, a retailer buys goods orproducts in large quantities from manufacturers or importers, either directly or through awholesaler, and then sells smaller quantities to the end-user.

Retail establishments are often called shops or stores. Retailers are at the end of thesupply chain. Manufacturing marketers see the process of retailing as a necessary part oftheir overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses, or in ashopping center or mall, but are mostly found in the central business district. Shoppingstreets may be for pedestrians only. Sometimes a shopping street has a partial or full roofto 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 order).

Shopping generally refers to the act of buying products. Sometimes this is done to obtainnecessities such as food and clothing; sometimes it is done as a recreational activity.Recreational shopping often involves window shopping (just looking, not buying) andbrowsing and does not always result in a purchase.


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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. Anothercommon technique is suggested retail pricing. This simply involves charging

the amount suggested by the manufacturer and usually printed on the productby 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 companyto design custom store displays that will attract more customers in a certaindemographic. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to season and promotionalchanges. As products change, so will a retail landscape.

1.1d Etymology

Retail comes from the French word retaillierwhich refers to "cutting off, clipand divide" in terms of tailoring (1365). It first was recorded as a noun with themeaning of a "sale in small quantities" in 1433 (French). Its literal meaning forretailwas to "cut off, shred, paring". Like the French, the word retail in bothDutch and German (detailhandeland Einzelhandelrespectively) also refer tosale of small quantities of items.


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1.1e Retail types

There are three major types of retailing. The first is the market, a physicallocation where buyers and sellers converge. Usually this is done in town

squares, sidewalks or designated streets and may involve the constructionof 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 theseller. 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 morecommon since the 20th century.

A third form of retail is virtual retail, where products are ordered via mail,telephone or online without having been examined physically but instead ina catalog, on television or on a website. Sometimes this kind of retailingreplicates existing retail types such as online shops or virtual marketplacessuch 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 oftencomprised of one or more big-box stores or superstores


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Non-traditional exterior of a super target store. Los Angels- USA.

Local shops can be known as brick and mortar stores in the UnitedStates. 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 afranchising company that has franchising agreements with the shopowners (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 shopto be sold (see also thrift store). In give-away shops goods can betaken for free.

There are also 'consignment' shops, which are where a person canplace 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 anitem this way is that the established shop gives the item exposure tomore potential buyers.

The term retaileris also applied where a service provider servicesthe needs of a large number of individuals, such as with telephone

or electric power.


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One of the theories is the Wheel of retailing. This theory states that new typesof retailers appear /enter the market as low status, low margin and low priceoperators. This is the entry phase and allows the retailers to compete effectivelyand take market share away from more traditional retailers.

These new retailers gradually acquire more sophisticated and elaborate facilitiesas they meet with success, thereby becoming less efficient in the trading phase.This results in higher operating costs and investments. Hence they will raiseprices and margins as they are entering the vulnerable phase. In the processthey become vulnerable to the new low price, low margin new retailers.

This appears to be the case with many outlet malls. Also the imperfectmerchandise of the manufacturers or excess merchandise of the manufacturerscause extra expenditure for the retailer to make things more attractive with fancylighting 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 retailmanagement. All depend on the nature of product, demand, consumersbehavior, market segmentation etc. They even measure performance more onreturn on investment basis than on profit-margin basis.


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The word retail is derived from the French word retaillier meaningcut a piece off or break the bulk. It simply means first handtransaction with the customer. It is actually a direct interface with the

customer and coordination of activities right from the concept anddesign of a product till it is delivered to the end consumer followedby the post delivery services to the customer. The retail industry hascontributed a lot to the economic progress of many countries andhas created a large potential for employment. Retailing concept ofcourse is undergoing fast changes today.

Retailing is an important part of marketing and the marketing mixconsists of elements like product, place, price, people, presentationand promotion. Place represents distribution and in retailing it is thedifferent locations of the store where products are available.Normally for any manufacturer selling through intermediaries, it isthe retailer who introduces the product to the customer.

Organizations sell their services and products through the retailoutlets and get feed back on the performance of the products andcustomers expectations and suggestions from or through theretailers only.


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1.1.2 RETAIL OUTLETDEVELOPMENT POLICY2 RETAIL OUTLETDEVELOPMENT POLICYDECISIONSDECISIONS

The importance of a policy for retail stores development can be felt from thefollowing 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 anencouraging sign for merchants at the Shops at National Place, amongothers, as local real estate experts suggest. But that kind of speculation is

fairly typical of the whimsical notions that have contributed to the decline ofmerchandise-oriented retail in the downtown area.

The existing convention center and the Shops at National Place opened inthe early 1980s amid considerable fanfare and promises of great things tocome. Neither, however, has lived up to those promises. The conventioncenter proved to be too small soon after it opened and the Shops, an

enclosed shopping center at 14th and F streets NW, continues to havetrouble finding the right tenant mix.

It was in a similar planning vacuum during the 1980s that developersoverbuilt the office market and forced dozens of struggling retailers out ofthe downtown area. But with the development slowing dramatically becauseof the commercial real estate bust in the early '90s, experts are now selling

entertainment


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General description

EVEA (Estonian Association of SME-s) is a non-governmental, non-profit association of SME-s and self-employed performing arepresentative, advocacy and lobbying function for small and medium-sized businesses as a social group. The main goal of EVEA is tocreate a favourable entrepreneurial environment in Estonia as thebasis for economic growth and social stability.

Serving as an interface between the Estonian SME community fromone side and the policy decision-makers, international organisationsand various social partners from the other side, EVEA providesinformation about the situation in the SME sector, its problems,economic legislation, business opportunities and business-relatedinfrastructure in Estonia.

EVEA membership is open to any Estonian SME and currentlyincludes 180 companies and self-employed. Most of the members arebusinesses with less than 50 employees.


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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 ofEstonia is chosen due to the fact that that area is problematic in theEstonian state equilibrated development model. Nevertheless theterritory of Estonia has small enterprises and incomes differ inregions in industrial regions in North- and Northeast Estoniaincome and salaries are higher, purchase capacity is bigger, andpopulation density is higher than in the agriculture and forestryregions in South-Estonia.

The attraction centre for the people from South-Estonia is the city ofTartu with 100,000 inhabitants, where the development model forthe year 2030 is being worked out. The vision of Tartu 2030: Thecity of active, creative and happy people Tartu is the intellectual

capital of Estonia and the centre for promoting development in thewhole of Southern Estonia: it is a university town with traditions, acity of youth where creativeness and open reasoning supportdevelopment activity and innovation in enterpreneurship; a city withmodern urban environment, safe, developing sustainable way of lifeand an actively cooperating Estonian city.


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1.2d Planned RENET related activities

The second aim after the study is carried through toinvolve councillors of all five counties in October 2007 intothe retail network development prognosticationdevelopment for planning together ways of retaildevelopment. They should take into consideration the

presumed area specific problems of South-Estonia as apartitioned landscape, thinly populated area etc.

Third aim was to form a representative organization withan own visual identity and Internet homepage for better

solving problems standing between retailers of South-Estonia. That representative organisation, theAssociation of Small Retailers and Service ProvidersNGO (MT VKTL) was established in 2006 and officiallyregistered in March 2007. The development of theassociation will go on in three directions.


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1.2.e RETAIL INDUSTRY TRANSFORMATION

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 mostattractive emerging markets for retail investment followed byRussia and China.

Retail has proved to be one of India's largest industries, andhas presently emerged as one of the most dynamic and fastpaced industries with multitude of players entering themarket. Accounting for over 10 % of the country's GDP and

around 8% of the employment retailing in India is graduallyinching its way towards becoming the next boom industry.


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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 growby 97% per year in the next five years to a staggering $24bn....intwo years there will be 360 malls across the country....And it hasonly just begun. Developers and promoters of malls believe the faceof the industry is about to dramatically change." Source: BBC WorldService,

India retail industry is reflected in its sprawling shopping centers,multiplex- malls and huge complexes offer shopping, entertainmentand food all under one roof, the concept of shopping has altered interms of format and consumer buying behavior, ushering in arevolution in shopping in India.

The new culture brought in by the Tech generation has not onlychanged the way Indians work but also how they play. This ispreeminently reflected in the contemporary retail sectordevelopment. The tech generation not only bought in gadgets andgizmos but also big and deep pockets and an eye for all thingsexpensive. They were willing to spend for comfort and pleasure.


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1.2g Shop till you Drop

27 million square feet of organized retail space is currently available. Another 90million 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, 9.5million square feet in Ludhiana, 6 million square feet in Chandigarh and 3.6 millionsquare feet in Ahmedabad. Big cities or small towns to the obscure villages, retailshopping development is coming to all parts and corners of India.

With the retail sector experiencing a boom, the country is witnessing a spurt inextremely large retail spaces. Shopping malls with over 1 million sq ft of are nowcommon In the National Capital Region (NCR), Unitech's Great India Place has amillion square feet (sq ft) of retail space. In Mumbai, at least eight malls arecovering over 1 million sq ft each In Bangalore, at least three malls with similardimensions are under development. Ludhiana will soon have a 1.6-million sq ft mallby Today Homes. The biggest mall of the world Mall of India will have 32 acresspanning a huge entertainment area and large city town squares offering a totalretail experience. The Mantra here seems bigger the better

Specialized malls seems like another catching trend Gurgaon, on the suburbs ofNew Delhi, has a jewellery mall and will soon have an auto mallBangalore will getan exclusive furniture mall. Two malls targeting foreign tourists will come up attourist hotspots--Goa and Udaipur. A furnishings mall is coming in Kolkata. AndIndia's largest theme amusement park, Noida Entertainment City will be absolutelycolossal standing upon 150 acres approximately.


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1.3 STRATEGIC IMPORTANCE OF RETAIL OUTLET1.3 STRATEGIC IMPORTANCE OF RETAIL OUTLET

DECISIONSDECISIONS As retail is evolving, so are the relationships between marketers and

the companies helping them to leverage the medium. Project basedrelationships are giving way to strategic relationships that arebroader in scope, longer term in nature and evaluated on the basisof defined and measurable performance goals.

These strategic relationships are helping marketers to respond tothe pressure to more effectively create, manage and continuouslyimprove their retail programs. To understand why, it is important tounderstand the factors that are necessitating the change to theclient/supplier relationship; (1) the growth and importance of theretail medium, and (2), incessant bottom line pressure.


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1.3 a THE GROWTH AND IMPORTANCE1.3 a THE GROWTH AND IMPORTANCEOF THE RETAIL MEDIUMOF THE RETAIL MEDIUM

Never before has the importance of the in-store environment been soelevated in the minds of brand marketers and retailers. The proliferationof communications channels has diluted the ability of traditional mediato hit the target, bringing increasing attention on the retail store as thesurest point of contact.

Growing recognition by retailers that they themselves are a brand hasraised awareness of the need to manage and distinguish theirenvironments and the experience of shopping within their stores.

Brand companies are looking to the in-store environment as a moreimportant and integral component in their marketing mix. Brand equity isbecoming the last vestige of competitive advantage and brandmarketers are recognizing the retail store as a point of tangible contactbetween their brand and their target consumer. There is increasingemphasis on the creation of in-store programs that deliver a morefulfilling brand experience.


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1.3 c BENEFITS OF NEW RELATIONSHIP MODELS

Traditional client/supplier relationships inhibit the ability to leverage thefull potential of the retail medium. The use of multiple suppliers across

multiple programs tends to undermine the coherency of a marketerstotal marketplace presence and impact, the effectiveness and efficiencyof their processes, economies of scale, and ultimately the profitabilityof their retail effort. For this reason, marketers are moving towardstrategic relationships with a single partner or a core group ofagency/supplier partners, with an emphasis on tighter collaborationamong 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 strategicinformation can create a stream of innovations that are more relevantand targeted than speculative efforts. Consistency of presentation,across channels and across geographic borders, is managed as is thesynchronization of a marketers retail effort. A well-orchestrated retailplan assures that all programs are working in concert to maximizemarketplace potential. These benefits, along with improvedconfidentiality of brand and retail strategies, ultimately impact salesand consumer loyalty. They are difficult to achieve without vestedpartners.


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A long term strategic supplier is in a better position to identify costsaving opportunities than a one-program supplier. A partner with aview of the total supply chain can respond to the expectation tooptimize efficiencies and to continuously improve processes, where asupplier given only a limited view of specific activities can not. Within

the context of a defined partnership, speed to market is accelerated asthe learning curve is diminished and the impact of awkward hand-offsis eliminated. Finally, a marketers internal capacity is improved, as astreamlined process allows them to focus on their core business whiletheir partners focus on the creation and management of their retailpresence.

Retail is changing for the better. One shot deals no longer makeeconomic sense, and activities can no longer be viewed in isolation.Building a retail presence requires planning and collaboration, andmanaging profitability requires a long term view. As the relationshipsbetween marketers and their agencies improve, so will the potential ofretail as a high performance marketing tool.

The retail environment offers a great deal of customer convenience inso far as it tries to provide for consumer needs precisely and on timethroughout the country. It is a vital element in triggering consumerspends. The growth in retailing will generate tremendous employmentopportunities for both professionals and non-professionals- say indifferent levels. In fact maximum number of people with mostminimum qualifications can be employed in the front line operations.

Of course a bit of training will be an added advantage


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1.3 d IMPACT ON GDP AND ECONOMY

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 manysmall and medium industries. The contribution of retailers to tiny andcottage industries along with huge industries isastonishing.Organised retailing can bring about a telling change in thesupply chain of agriculture and other rural products. Retailing canremove 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 orhis family and friends who visit the store.

While we attach so much importance to organized retailing, openingthe 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 providingconvenience and economy to customers and also to meet theirchanging needs and behaviors.


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1.3 E IMPACT ON EMPLOYMENT AND1.3 E IMPACT ON EMPLOYMENT AND

OTHER SERVICESOTHER SERVICES Retailers play another important role in society when they employ

different levels of people and with status today. In US, UK, FRANCE etcthe retail industry employs around 20 t0 27 % of the workforce. Twothirds of the labour employed by retail is female force, a considerableportion of employees in US, CANADA, UK etc are part time employees,including students. In unorganized retail sector, especially in India, theemployees 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 Indiaitself.

A retailer does not simply sell what the supplier can give him nowadays.A retailer acts as a gatekeeper within the channel of distribution. Theretailer today exerts pressure on the suppliers on wanted brands andneed based stocks only. The consumers stand to benefit as they getwhat is needed at relatively economical cost. Some retailers have leftlasting impression and image in the minds of consumers by theirambience, service and display of social responsibility that manyconsumers are not only retail-brand loyal but also are ready to buy theirother non-related products like financial services etc. Further todayretailers have started moving internationally and have even joint

ventures.


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1.4 Retail outlets mapping and1.4 Retail outlets mapping andperformance managementperformance management

1.4.1 The Need for a Retail Outlets Mapping

Retail marketing has undergone a sea change in the last couple of years. In amarket where brands are proliferating, shelf space getting rare and the customersmultiplying, it has become imperative to assess whether the sales team anddistribution network cover all the outlets in the city in an effective manner. Are youcertain that the territories covered are by hunch or fully supported by scientific

survey and ststistics? Did you consider the demographic factors while allowing thedifferent retail outlets to perform? Please do not be impressed either by thelargeness of the area or by the hugeness of the population. A territory with smallerpopulation with needs and purchasing power supported by its behaviourialcharacteristics can be a better one than the one with large, price sensitive territorywith a huge population, less purchasing power, not ready for challenging culturaladvancement 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 outletswill carry and justification only with the help of thoughtfully prepared maps that areresult oriented. That can help you to analyze the data for performancemanagement.


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RETAILOUTLETS IN DIFFERENT CULTURAL STANDINGSRETAILOUTLETS IN DIFFERENT CULTURAL STANDINGS Almost every research report on media, marketing and consumer

economics refers to SEC categories. These categories are importantbecause they help in effectively segmenting markets and targetingrelevant communication to core consumers for products and services.

Words like SEC A and SEC B are freely tossed around withoutrealising that, barring a few experts, there is little, if any, knowledge

about their real meaning. Very few, for example, may be aware thatshopkeepers/ traders though affluent and, therefore, having morespending power than most executives would fail to make the highgrade, 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 beingregularly collected by IRS, to reclassify consumers, SEC continues toremain universally referenced classification of consuming classes.While, a detailed postings on HPI will soon follow, we explain belowthe basis of classification of different SEC categories and their relativeimportance in relation to marketing/ retailing potential


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1.6 ORGANIZED AND UNORGANIZED1.6 ORGANIZED AND UNORGANIZED

RETAIL OUTLETSRETAIL OUTLETS

1.6.1 ORGANIZED SECTOR

The pace of development of retailing varied between developed anddeveloping countries. You can find that retailing is very muchorganized in developing countries and are still very much disorganizedin developing and under developed countries. Thus in India retailing isorganized 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 isorganized in US. It accounts for high figure of US&7.5 trillion. The othercountries like Western Europe, Malasia, Thailand, Brazil and Argentinahave 70%,50%, 50%,40%and 40% respectively. It is 35% in

Philippines, 25% in Indonesia, 15% in South Korea and only 10% inChina. 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 employmentopportunity offered by retail industry is very large. According to USdepartment of labour about 23 million people are employed in retail

industry in US, in more than 2.1 million retail outlets.


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In organized sector retailing is very highly customer centric, with continuousthrust on innovations in products, designs, services, benefits, processes, storeplanning modifications, categorizations, displacement and replacement tobreak monotony, pleasant ambience, better and more beneficial application ofIT, more convenient methods and processes for customer retention as well asrelations 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 areon the increase, working women are on the increase, increased pressure ofwork for men and women inadequacy of time for commuting, backlog oroverload of work etc has all forced priority to convenience and speed forconsumers in developing countries including India. People wanted an easyaccess to goods and also to get everything under one roof. This has offered anexcellent opportunity for retail business to become more and more organized.

Inspite of the huge potential for growth, the Indian retail business in organizedsector forms around 2% only. In fact a recent survey shows that most modernstores account for only about 0.6%

There are at least two major factors that the growth of organized Indian retailmarket- lower prices and the benefits hitherto not obtained. Economies of scaleare the major contributor for this. The retail business in India in 2000 is aroundRs. 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 BPLand 70% 0f paltry income holders. The contribution of organized sector was Rs20,000 crores in the year 2000 and it is Rs.200000 crore in 2007.( report ofCMIE). The organized sector has attracted many gigantic foreign retailers likeMarks and Spencer, Samsonite, Wallmart, KFC, Macdonalds, Campell,Dominos. Goenkas, Swarovsky etc. Also TATA, BIRLA, RELIANCE, PIRAMALetc have greatly invested in most professional retailing. The Indian mind is fastcatching 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 evidencefor such expansion.


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1.6.2. UNORGANIZED SECTOR

India is an example for unorganized sector of retail trade. It isestimated that there are about 14 million retail outlets of various sizes

and formats in India. About 96% of the retail outlets have less than500 sq.ft. size. The per capita retail space in India is 2 sq.ft. whereas itis 18 sq.ft. in US. It can be commented that India has the lowest percapita retail space in the world. (Kurt salmon associates). India has anaverage 10 outlets for every 1000 people. Thus India has the largestnumber of retail outlets and they contribute to 96% of the retail sales.These retail outlets are all independent. Most of the stores are kiranashops, family owned shops, single man shop, portable shops on cartsor bicycles, door to door manual carriers etc. not providing muchvalues and benefits to customers. Most of the shops sold whateverthey had than marketing what the consumers wanted at a reasonableprice, place and time. Retail and whole sale took place weekly orbimonthly both in rural and urban areas even today, that too at

particular places only earmarked for that purpose. Limited choice wasa big hurdle in unorganized retailing. The quality, durability, value formoney, replacement, buys back arrangement, modifications, goodsreturn etc were simply impossible in unorganized retailing.


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2. RETAIL OUTLET SURVEY2. RETAIL OUTLET SURVEY2.1a Retailing AS AN ACTIVITY

Retailing consists of the sale of goods or merchandise from a fixedlocation, such as a department store or kiosk, or by post, in small orindividual lots for direct consumption by the purchaser.[1] Retailingmay include subordinated services, such as delivery. Purchasers maybe individuals or businesses. In commerce, a retailer buys goods orproducts in large quantities from manufacturers or importers, eitherdirectly 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 marketerssee the process of retailing as a necessary part of their overalldistribution strategy.

Shops may be on residential streets, shopping streets with few or nohouses, or in a shopping center or mall, but are mostly found in the

central business district. Shopping streets may be for pedestriansonly. Sometimes a shopping street has a partial or full roof to protectcustomers from precipitation. In the U.S., retailers often providedboardwalks 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 order).


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Non-traditional exterior of a Super Target,Non-traditional exterior of a Super Target,JacksonvilleJacksonville

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 withthe same name selling the same products in different locations. Theshops may be owned by one company, or there may be a franchisingcompany that has franchising agreements with the shop owners (seealso restaurant chain)

Some shops sell second-hand goods. In other cases, especially in thecase of a nonprofit shop, the public donates goods to the shop to besold (see also thrift store). In give-away shops goods can be taken forfree.

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 apercentage of the sale price. The advantage of selling an item this wayis that the established shop gives the item exposure to more potentialbuyers.

The term retailer is also applied where a service provider services the

needs of a large number of individuals, such as with telephone orelectric power.


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2.2 EMERGING TRENDS IN RETAIL OUTLETS2.2 EMERGING TRENDS IN RETAIL OUTLETS

India tops the AT Kearney's annual Global Retail Development Index

(GRDI) for the third consecutive year, maintaining its position as themost attractive market for retail investment. Furthermore a report byPricewaterhouseCoopers foresees India and China to continue as thetop 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 theUS$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billionby 2015. Simultaneously, modern retail is likely to increase its share inthe 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 rakedin US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in2006-07, a whopping growth rate of 49.73 per cent.


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2.2a Retail space2.2a 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, isexpected to touch 40 million square feet by end-2007 and anestimated 60 million square feet by end-2008, says Jones LangLaSalle'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 reportby Images Retail estimates the number of operational malls to morethan double to over 412 with 205 million square feet by 2010 andfurther 715 malls by 2015, on the back of major retail developmentseven in tier II and tier III cities in India.


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2.2 b The Indian Retail Scenario The Charm of Novelty2.2 b The Indian Retail Scenario The Charm of Noveltybattles it out with the Charm of Simplicitybattles it out with the Charm of Simplicity

So now our metros are definitely getting overcrowded with new retail formats. If allof India has a 3-4% organized retail percentage figure in metros, its probably closeto 30-40% (or more).

Grocery, Apparel, Books & Music, now even Medicines, are now all seeing hugesales via the spanking new stores (they used to be called shops when they weremom and pop now you cant call them anything but stores J ). But I think thephenomenon that has overwhelmed us Indians is the mallification of our metros.

In fact, when Crossroads, one of the very first malls in Mumbai, India; wasopened, the crowds became so unmanageable that they had to restrictentry --- only people with cell phones (in those days, mobile penetrationwas much lower than it is now) were allowed in

I actually love these malls I like to window shop as much as the nextperson, I think the lesser crowded malls make for nice weekend jaunts forthe kids where you combine your necessity shopping with fun and food.

Every major retailer is gunning for a scale that gives them sleepless nights


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2.2.c FUTURE TRENDS2.2.c FUTURE TRENDS 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 arebeing used along with the internet that is exciting adding value andnew experiences to consumers. Internet is used for selling,advertising, distributing and even for designing and modifying thedesign etc by retailers and of course by suppliers/manufacturers.Internet is an attractive and more able substitute for traditionalfunctions of the intermediaries. Because of its ability to transform

information inexpensively and quickly, internet has a significant effecton sales transactions, communications and logistics. Some of thetrends for the IT in retailing are 1) Smart cardEquipped with a siliconchip, these cards replace other forms of transaction, retailers have toinvest in equipments only. The Smart cards are more secured andcarry a lot more information than conventional cards. It has alreadyrevolutionized the banking industry which 20 years ago enjoyed gotreshaped by ATMs. Avoiding the long ques in the bank. Smart cardsenable consumers transfer money quickly and provide accurate andsecure cash free transactions. The technology is well developed thatsmart tags are there /bar codes etc that can tell full information aboutthe supplier, monitor the supply chain, provide stock control etc. Eventheft and unauthorized use can be detected by these cards.


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The important trend today is that retailers decide the type of products,categorization, services to be rendered, differentiation of services, thevery format etc. These are the super markets, departmental stores andspecialty stores.

The next important trend is the retailers carve a niche for themselves,become a specialist product category, unusual services followed bystrategic pricing. This differentiation results in intensified competitionfor products and services. The offer becomes standardized and pricebecomes the most significant selling point. This ends up in theformation of the so called discount stores.

The next trend is the formation of hyper markets when a wide variety ofgoods and services are offered at the most competitive prices. Ofcourse they normally lack product depth and extra services.

Apart from the above consumers are also influenced by factors likemigration of formats, cross-border movement and mergers andacquisitions of firms.

By migration of formats what is meant is that many retailers areadopting formats of super markets, hyper markets, departmentalstores, mail order stores, telemarketers, web-enabled marketers etc.Thus Tesco in Briton operates super markets, hyper markets,neighbourhood stores, convenient stores, departmental stores, mailorder stores etc. These are applicable to many retailers like Batastores, Spencers, More, Reliance etc.

2 2 2 Frequent Leisure Time Shoppers Spend2 2 2 Frequent Leisure Time Shoppers Spend


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2.2.2 Frequent Leisure Time Shoppers Spend2.2.2 Frequent Leisure Time Shoppers SpendMore per TripMore per Trip

2.2.2 a Shoppers Focus on Wants over Needs

Frequent leisure time shoppers are a retailers dream comes trueaccording to BIG research and MARS Advertising. Their semi-annualShopper Mindset survey revealed that frequent leisure time shoppers,those who take a leisure shopping trip once a month or more, spendconsiderably 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 pershopping trip, making this segment of consumers one of most profitableand informed. According to Anne Howe, SVP, Market Intelligence &

Insights at MARS, frequent leisure time shoppers, "are more relaxedand have either researched their planned purchases online or rely on in-store personnel or point-of-sale material as information sources beforepurchasing."


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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 Statistics 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 resultin incremental sales from this shopper segment," Howe suggested. "Thisshopper is way more likely to respond to a myriad of in-store influencers,and not as likely to say that traditional media messages are influencingtheir purchase behavior. This is good news for marketers who have beenusing effective in-store messaging as part of promotion programs. And itreinforces the message to retailers that consumers are looking at morethan price while in the aisles." The following references are given so thatyou may go to those web-sites and get more information on latest retailtrends


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2.2.3. Strengthening and Evolving Consumer Trends2.2.3. 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, sometrends become cultural characteristics, observes Hallmark's trends expertMarita Wesely-Clough.

"A social trend becomes a component of a culture when it lasts five toeight years or more bargain hunting, for example," Wesely-Clough says."Of course, countertrends can surface, strengthen and eventuallysupplant an established cultural trend.

Other strengthening trends include the pursuit of happiness, the desirefor more and more, Eastern influences, shifting boomer behavior, andpolarization of attitudes.

Understanding the consumer is the first step in creating products that areon target, and is essential in developing relevant products that helppeople express their emotions and strengthen relationships.

"A number of trends are continuing and intensifying some thatdramatically affect the way we think, live, and shop," Wesely-Clough says."Of course, countertrends emerge, preventing society from becomingstatic, although a culture may share an overriding belief that directs itspath 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."

. . .


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. . .BeyondBeyond

2.2.4 a THE PURSUIT OF HAPPINESS

Recent studies in the realm of positive psychology, continuing research of"happy" or normal people rather than "abnormal" people, will increase the beliefthat happiness is attainable. Though points of view may vary on how happinessis achieved, or even what one considers the state of happiness to be, there willbe 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 willbe 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 consumersto 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 inwhat they want to drive, where they travel, what they choose to wear.Handcrafted and customized, or rare, almost museum quality super luxe itemswill be in greater demand by high-end consumers.


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2.2.4 c Counter Trend: Enough is Enough

That the standard of living in the United States is far better than many otherplaces fosters an understanding that we "have enough." Watch for people of allages to scale down and simplify, to insure they have time to invest in whatmatters friends, family, giving back, their legacy. Boomers approachingretirement will lead this trend.

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 candraw 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 forby 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 willwelcome a look to the future with new technologies, new uses and new materials light-emitting diodes (LED) and translucent cements, for example, to create newreality-altering atmospheres and sturdy structures.


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2.2.5 CONSUMER TRENDS2.2.5 CONSUMER TRENDS 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 deliveredflawlessly and efficiently to you.

aCerno helps marketers motivate consumers by always putting the right messagebefore their eyes when and where they're receptive to your message.

aCerno understands and capitalizes on the symbiosis among brands, retailers and

consumers. Our predictive modeling gleans vital data from this ecosystem to targetmessages that pique interest and prompt the consumer reaction you seek. WithaCerno, online advertising unearths greater market potential by deliveringpredisposed prospects. It's more than ads, Web sites, surfing and shopping; it'srelevant, intuitive, smart, insightful targeting to consumers who are looking for whatadvertisers 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 wereassembled in poorer countries. The relocation of manufacture had brought pricesdown over the previous 15 years and restrictions and taxes on international tradewere generally headed for extinction. However, subtle differences between the wayseach exporting country is treated has made understanding trade restrictionsincreasingly difficult. This briefing reviews apparel trade over the last 12 monthsand looks at how to deal with the major sourcing issues in 2008.

ATMOSPHERIC FACTORS IN THE RETAILATMOSPHERIC FACTORS IN THE RETAIL


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ATMOSPHERIC FACTORS IN THE RETAILATMOSPHERIC FACTORS IN THE RETAILENVIRONMENT: SIGHTS, SOUNDS ANDENVIRONMENT: SIGHTS, SOUNDS ANDSMELLSSMELLS

Since the concept of "atmospherics" was introduced in the early 1970s, there hasbeen a slow, but growing, interest in understanding and predicting the impact ofthe environment on consumer responses. The objective of this session was toshowcase state-of-the-art research and practice in retail atmospherics, and toidentify research opportunities in this emerging area.

The term "retail atmospherics" refers to all of the physical and nonphysicalelements of a store that can be controlled in order to enhance (or restrain) thebehaviors of its occupants, both customers and employees. These elementspresent 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 environmentalelements are being used by professional store designers and architects to createdesired retail settings. This first presentation, "Theater of Retailing: SellingThrough the Senses" (Randall E. Gebhardt, Fitch Associates, Columbus, OH),included numerous examples of how retailers use sounds, scents, and visualelements of the store atmosphere to produce desired images and to increasesales. The examples included a tie store's use of leather and tobacco scents tocreate an atmosphere in which female gift buyers are comfortable in purchasingmen's ties and a music store's use of audio engineering to create a storeauditorially segmented by department


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The second presentation, "Olfaction and the Retailing Environment"(Terence A. Shimp, Pam Scholder Ellen and Paula FitzgeraldBone), gave examples of how olfactory stimuli are being used in theretail environment, along with a discussion of the theoretical

explanations for the observed effects of such stimuli. The primaryresponse to olfactory stimuli was said to be approach/avoidancebehavior. Evidence was presented that olfactory stimuli have thepotential to attract attention and motivate processing, enhancemood states, and affect salesperson/customer interactions.Potential moderators and mediators of olfactory effects were alsodiscussed.

The final presentation, "The Impact of Atmospheric Music and RetailDensity 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 laboratoryexperiment which manipulated both retail density and music

loudness. The results indicated that both loudness of music andcustomer density increase subjects' perceptions of retail crowding;however, these independent variables did not directly affect othercustomer responses. Rather, outcome responses such as thefeelings experienced while shopping and store satisfaction areinfluenced by the level of crowding experienced by the shopper.


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The session discussant, Meryl P. Gardner, provided insightfulcomments with respect to all three presentations. Of particular notewas her observation that retailers make store changes on a numberof dimensions and then measure the impact on variables such as

store traffic patterns and sales. To contrast, academic researchersstudy only one or two aspects of the environment at a time, often inartificial settings which, unfortunately, is the only realistic optionavailable to most researchers.

In conclusion, this session intended to contribute to consumer

research by identifying opportunities for research in the area ofperson-environment relationships in marketing contexts. Althoughpractitioners and environmental psychologists have long been awareof the impact of environmental stimuli on human behavior, consumerresearch has lagged behind in this field


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Shari Waters

Shari Waters began her journey in retail more than 25 years agowhen she agreed to work Saturdays in a sporting goods store for afamily friend. Since then, she has worked her way up through theretail ranks from sales clerk to store manager, on to shop owner.

Experience

Shari's background includes working in various sectors of the retailindustry and her roles have ranged from cashier to store manager.She has participated as a member of several retail round-tablediscussions with the National Association of College Stores and

served as an officer of the Marketing/Management AdvisoryCommittee at Ogeechee Technical College. Besides operating thespecialty retail business she and her husband began, Shari alsoworks as a freelance writer and consultant for other retailers andsmall-business startups.


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From Shari Waters

I understand that being a shop owner/operator requires anextraordinary amount of skill. You have many hats to wear and mustknow when to wear which in order to be successful. From writingorders and managing employees to stocking new inventory, the job

as a retailer is never done and there is always room forimprovement. I hope this site offers the necessary tools, resourcesand support you need to successfully start and operate your retailbusiness.

Top 10 Ways to Turn Off CustomersTop 10 Ways to Turn Off Customers


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Top 10 Ways to Turn Off CustomersTop 10 Ways to Turn Off Customers

customer service tips

retail atmospherics

As individuals, we all have our own little pet peeves. What may turnoff one customer may not bother another. As retailers, we can't affordto turn off a single customer and image is everything. Keeping our

stores neat and clean is not only easy to do; it is generally aninexpensive way to attract customers and create a pleasant storeatmosphere.

Take a look around your retail store. Do any of the following situationsexist? If not, look harder. Your store may be exhibiting some other

offenses you haven't noticed until now. Here are ten ways your storemay be turning off customers:


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1. Dirty Bathrooms

This customer pet peeve clearly deserves the number one spot onthis list. Retail store restrooms should always be sparkling clean,whether they are open for public use or not. Make sure to stock thebathrooms with plenty of paper products, soap, trash receptaclesand clean it daily.

2. Messy Dressing Rooms

Keeping the dressing room area free of discarded hangers, tags andempty packaging goes beyond creating a neat store appearance, itis also a good step towards loss prevention. Take a quick look forout of place items after each customer uses the dressing room.

3. Loud Music

Playing music in a retail store can help create a certain atmospherefor our shoppers. Music that is too loud, inappropriate or of poorquality can run a positive shopping experience.


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4. Handwritten Signs

In this era of technology, there is no excuse for displaying handwritten signage. It istoo simple to print a sign from our computers or use pre-printed signs. Printed signssimply look more professional and signs with hard-to-read handwriting can be acustomer turn-off.

5. Stained Floor or Ceiling Tiles

It is true, accidents happen. However, our customers don't have to see them. Dirtycarpet, stained flooring and ugly ceiling tiles can turn off many shoppers. Sweeping,vacuuming and mopping should be done on a regular basis. Consider hiring aprofessional cleaning crew to polish tile floors. Replace stained portions of carpet andceiling 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 withaging or less than perfect eyesight. Your store should be well illuminated for allcustomers

7. Offensive Odors

Customers understand if they visit a lawn and garden center they will have to dealwith the smell of fertilizer. The same goes for shoppers of a feed supply store. Certainodors 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.


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8. Crowded Aisles

Consumers like a selection but not if it means sacrificing comfort whileshopping. Be sure your store is designed to allow adequate space between

aisles and keep walkways free of merchandise. Cramped spaces can ruin ashopping 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 acustomers financial transaction is taking place should not show any signsof disorganization. Like messy dressing rooms, a disorganized checkoutcounter 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 your store maybe too small, but there's not a single type of retailer that wouldn't need atleast some sort of shopping basket. If you hope for your customer topurchase more than one item in your store, be sure to have an adequatesupply of shopping carts or baskets on hand


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2.4 REATAIL LOCATION STRATEGIES2.4 REATAIL LOCATION STRATEGIES It is often said that three major things that matter for retailing are

location, location and location only. This true to a great extend butother factors like selection of merchandise, sound pricing policies,layout, presentation and such other retail strategies also play anequally important role in the successful retail operations. Thus it is thegood customer service policy that makes the customer to repeat visitthe stores for purchases of many items. However the selection of siteits acceptance or rejection are supported by many issues like

1. Consumer choice- The location is dependent on the decision of the consumer where toshop. It implies that a fair knowledge of the consumer behaviour of the area is a must.

2. Since the location has strategic importance, the retailer has to weigh the pros and cons fora long term competitive advantage to be derived out of the best location.

3. Consideration of trends: Any changes in the social structure or trends has to be a factorpeople taking more interest in out of shopping experience, motor car usages increase,

power of retailer brands, whether new regional shopping areas are there, rate of growth ofmultiple retailers etc

4. Investment requirementwhether it is high,very high or affordable with the presentexpected turnover, rental costs time period to recover the costs are to be considered.

5. Property assetsselection of the property in a site has long term implications in that thevalue of the property in the days to come may surpass even the business turnover.

6. There are restrictions due to governmental rules on the availability of sites. Theopportunities for planning permission are also politically controlled


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An important feature of store planning as earlier said isthe location planning which can be followed by selection.It is the method of selecting the right location and an

appropriate site for the store with the catchment definitionfor each store. The rollout plan defines the types oflocation selected on the basis of the retail store format.

Types of locations

High street location. Very busy with customer traffic. Has an array of retail stores in small sizes.

Has stores that are generally found in clusters based onproduct categories. High real-estate rentals

2 5 INFORMATION TECHNOLOGY IMPACT ON2 5 INFORMATION TECHNOLOGY IMPACT ON


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2.5 INFORMATION TECHNOLOGY IMPACT ON2.5 INFORMATION TECHNOLOGY IMPACT ON

RETAIL OUTLET MANAGEMENTRETAIL OUTLET MANAGEMENT This chapter will deal with some of the latest trends on the Internet as well as

with speculations regarding the social impact of the evolving information andcommunication technologies. Information technologies are now central to ourlives. The Internet is a growing phenomenon that, as will be shown, knows noage barriers and does not distinguish between time, space or borders. It ispotentially the most dynamic tool for democracy we have evolved while alsohaving the highest potential for abuse. At its present stage of growth it couldbe likened to the Tower of Babel, a cacophony of voices using it for a multitudeof different reasons with the different providers and users not understanding

each other. It is a medium with cultures that are constantly in conflict with eachother. The Internet is an ubiquitous but not harmonious medium.

It is democratic but, as is becoming increasingly clear, many governmentswould like to place heavy restrictions on it, as they see the Internet as a threatto their authority. While the Internet, or to use a more germane term,cyberspace, is a free commons, there are many who say it is not free e nough.Others say it is too free. The anarchistic elements of the Internet have been

subsumed as the corporate interests rise and dominate the medium. While thevoices demanding a totally free commons in this new world called cyberspaceare still there, they no longer dominate discussions and debate on the Net.Rather, it is becoming a society unique to itself, but healthy and diverse in itsculture and ethnic characteristics. There are no longer easy, witty aphorisms todescribe the Net.


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The Internet is in a state of constant growth. With that growth hascome many social, legal, cultural and political issues: privacy,censorship, intellectual property, affordability and accessibility, to

name a few. Some of these issues will be dealt with here, as it hasbecome obvious that Information Management is the key to effectiveuse of the Internet and for the administration of any form ofinformation technology.

Technological growth is now so immense, and so embedded in oursociety, that it is not possible to talk about it as simply one subject.Rather, it is now a whole range of subset of subjects. This chapterwill then look at some trends from four perspectives:

how technology and people are merging and integrating as a new entityin society;

electronic commerce (as governments are now moving into electronictransactions);

information management and how management of information isbecoming crucial in order to be an effective administrator in a high techworld;

the potential social implications emerging as a result of currenttechnological innovations and evolution within our society.


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A MARRIAGE: WILL IT WORK?A MARRIAGE: WILL IT WORK?

The marriage of information technology and Man is

beginning to occur. We are quickly becoming what couldbe called "TechnoMan". This merging of moderntechnology and Mankind is quickly taking place in ourworking and personal lives where IT and Communicationtechnologies have become an intricate part of daily life inthe industrialized nations of the world.

Governments must struggle with the fact that the newcommunication technologies not only create greaterdemands for electronic delivery of services but the need to

find new ways to adjust to both the changes and the socialshifts which these technologies are bringing. A centralquestion for governments is going to become: to whatextent do we continue to have the major role in society inthe delivery of information based services?


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There were even some who thought thatany technological revolution within

government was still decades in the future. The consistent implementation of new

technologies presents both many

challenges and problems to governmentsand private sector organizations alike.


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Current research indicates that we are still very much at an interim stageCurrent research indicates that we are still very much at an interim stageof technological growth and use.of technological growth and use. .. For example, through the course ofFor example, through the course of

any day we might possiblyany day we might possibly

pass through a video surveillance camera; witness a scanning device at a retail outlet (which will be sending

information on the sale to a central database);

have our name recorded in a computer through a transaction over thephone;

make a deposit or withdrawal using an automated teller card; go online to check our bank account; possibly pass someone who has an electronic bracelet as part of a

bail process or parole condition (but we would never know it); get into a fully computerized car; or enter a security code number to get into our home or office.


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At the same time, this growing electronic

umbrella is creating an enormous amountof potential for abuse.


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Germany is essentially a paternalistic society. Its citizensGermany is essentially a paternalistic society. Its citizens

expect their government to legislate all aspects of their lives.expect their government to legislate all aspects of their lives.It is this cultural heritage which allows them to legislateIt is this cultural heritage which allows them to legislatemorality on the Internet without any outrage in Germany.morality on the Internet without any outrage in Germany.


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In the U.S., provisions of the Communication Decency Act had created aIn the U.S., provisions of the Communication Decency Act had created acriminal offence for access to sexually explicit material on the Net incriminal offence for access to sexually explicit material on the Net incertain circumstances. This was struck down by both a Federal Courtcertain circumstances. This was struck down by both a Federal Courtand, ultimately, the Supreme Court, as striking at the heart of freedom ofand, ultimately, the Supreme Court, as striking at the heart of freedom ofspeech and freedom of expression as guaranteed in the Americanspeech and freedom of expression as guaranteed in the AmericanConstitution.Constitution.


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It is a medium that has paved the way for

electronic commerce, for both governmentand business alike. Nicholas Negroponte,writing in the July 1997, edition of Forbesmagazine, predicted that this will becomea trillion dollar industry for business byearly in the next century.


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The chartered banks in Canada are also using the Web tosupply information about all their services and softwaretechnology. It is given free to their customers, where they canhave instantaneous access to their account, make transfers

between accounts, get updates and program their account forpayments for their bills to be automatically withdrawn on thedates specified by the customer.

Many businesses are taking advantage. For example, it is nowpossible to go online and book a trip anywhere in the world.The user can use the Web, or other areas of the Internet, and

book the entire trip. One can find the best possible hotel oraccommodation package in any given country in the world(where the Web is being used). The consumer can book his/herwhole trip, including airline, train or bus travel and a limousineto the airport.

This change means tougher competition for travel agencies asthe consumer becomes his/her own travel agent. From this wecan expect a decline of travel agencies in the next decade.While such activity is not being done in the tens of millions yet,it is nevertheless occurring at a significant rate to assist boththe traveler and the travel industry in general.


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Commerce on the Net is going to be the areaof single most growth in the next few years.

The Web is a medium used for three centralactivities by business, according toNegroponte: subscription, advertising andbusiness transaction (and the latter is going tobe the main activity of government very soon).

For example, www.hollywood.com is a hightech, glitzy site and attracts millions of visitorsa year. It helps to promote all the latestmovies, gives the buzz on the activities of thecurrent stars and provides weekly updates forvisitors who want to be kept informed.

As to business transactions there is much
http://www.hollywood.com/http://www.hollywood.com/


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As to business transactions, there is muchevidence of its growth but, as Negropontepoints out, it is still combined with other

technologies, especially the phone, fax andmail. He goes on to speculate on the types ofbusinesses that could emerge and howconsumers could well use this medium totheir advantage.

As technologies become more sophisticatedin the stores it is possible one could use aterminal on the shop floor to browse and

then go to the precise range of products thatappeal to him/her. These are in use in thehuge outlets like Wal-Mart and Super Kmartthat are arising around North America.

N t t d ib i ti


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Negroponte goes on to describe some innovative waysconsumers might use online transactions, which will benefit boththe consumer and the retailer and result in significant shifts inthe marketplace and business world overall.

"With the help of computer agents you will be able to find theleast expensive, fastest-delivered and longest-warrantied item,with no more than a few clicks or keystrokes. The folks at the

Yellow pages didn't know just how much you could let 'yourfingers do the walking.' Just think what that does to consumereconomics.

"Don't be surprised if 21 consumers get together and demand afleet discount from a Taurus dealer. The dealer won't bedispleased, because the small margins will be offset by volume,and the deal puts him in a good light with the manufacturer.


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"In fact, we don't care if we have one

customer in every town with apopulation of more than 10,000 peopleor if we have 10,000 customers at one

location. We don't care about customs(the kind that impose duties). Ourmarginal cost to make more product iszero. We have no inventory. In short,our unit costs aren't a lot higher thanthose of the corporate agents."

This is but one example which Negroponte gives to make the very


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relevant point that this medium is very much poised to move businessesinto new areas for entrepreneurs and anyone who wants to do business.The growth potential is strong. Everything from tracking and buyingstocks online, being your own travel agent, to surfing the web to get thebest deal, or having a site that offers an exclusive product, is now

becoming possible. While Negroponte and many others are enthusiastic about electronic

commerce and its potential, the Economist magazine in the UK takes arather more conservative view. It sees growth potential but foresees thismuch further down the line.


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However, what is clear is that much of the

confusion over shopping online will behandled by software technologies that willfind a choice of products the consumer isseeking. One example came in thesummer of 1997, with the release of newsoftware, called Jango. This software doesthe search for the client (through a

company that offers this service). It getsfrom the client what he/she is looking for,then goes out over the Net in search of theitem.


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However, as to Electronic Commerce, it is not just about purchasing

The Economist makes the point that many surveys fail to take into account themost lucrative of online business activities - that of business to businessdealings. This makes sense if, for example, the FedEx web site is used as anexample. It is geared for businesses, to facilitate and make it easy for theircustomers to get their packages prepared for delivery and picked up with theleast fuss.

This latter fact is revealing in itself mirroring the rapid state of


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This latter fact is revealing in itself, mirroring the rapid state ofchange that these technologies bring. Call Centers are theepitome of cost saving measures. They could be locatedanywhere, in a rural area of one's country or abroad, in areaswhere wages and taxes were lower and the quality of lifebetter..

Reading the Negroponte article (waxing enthusiastic) and theEconomist (guarded, conservative), there is no doubt thatElectronic Commerce is a phenomenon that is here to stay, willcontinue to grow and change as more technologies evolve, asmore consumers come online and as the tastes and needs ofsociety itself change.

The single most important factor which will lead to the truegrowth of business on the Net, will be not only the millions ofnew users who will come online in the next few years but whatthe new super literate technology generation will do with these

technologies. How this up and coming generation will usethese technologies will mean more social shifts.

N M bil Sh i S i I C titiN M bil Sh i S i I C titi


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New Mobile Shopping Services Increase CompetitionNew Mobile Shopping Services Increase Competition

We all know people that seem to approach shopping like it is acontact sport. They know their favorite retailers, they shop often,

they know when and where to find the bargains, and they aren'tafraid to bump a few elbows to get them. While many of us may notaspire to be one of these top shopping athletes, new mobileservices are helping the average shopper compete better for thebargains. This is presenting both challenges and opportunities fortoday's retailers.

Imagine your customer shopping in the store, browsing youramazingly deep and broad assortment, complete with fancy fixturesand signage. After carefully considering the choices, they decide.But before they head to the checkout, they input the product intotheir cell phone and in just a few seconds, find out how much all theother local retailers and online retailers sell this same product for.

Additionally, they receive a coupon for one of the other retailers, andsuddenly they are leaving your merchandising display intact andsearching for a way to exit the store without getting into a checkoutline. This may sound like a futuristic scenario, but there are offeringstoday that make it a reality.


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Here are two examples

Nearbynow.com has a service that can tell you via text message allthe places in the mall that have the product you are looking for and itsprice. As an added feature, it can also tell you where the store is inthe mall and suggest the best places to park. You can even send a

message back to have the inventory held for you.

Cellfire.com has a service that will send you coupons and deals fromyour local merchants to your cell phone. You decide who and whenyou want to hear from. You can literally use the coupon on your cell

phone at checkout

RETAIL STRATEGIC BRAND MANAGEMENTRETAIL STRATEGIC BRAND MANAGEMENT


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RETAIL STRATEGIC BRAND MANAGEMENTRETAIL STRATEGIC BRAND MANAGEMENT

Understanding Retail Branding: ConceptualInsights and Research Priorities

With the growing realization that brands are one ofa firms most valuable intangible assets, brandinghas emerged as a top management priority in thelast decade. Given its highly competitive nature,

branding can be especially important in the retailingindustry to influence customer perceptions anddrive store choice and loyalty.


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Connected consumers are increasingly taking advantage of themobility and transparency of this type of information at POP.The question for retailers is how to take advantage of thesetypes of capabilities. Automating the delivery of coupons and

product info to mobile devices as well as having a mobileInternet shopping capability are obvious ways (either directlyor through the types of services discussed above). Theseensure that where you have the best price, you remaincompetitive.

Building on those capabilities, there is also an opportunity touse mobile services to drive customized offerings to high-valuecustomers at POP (your POP or your competitor's). This is thekey to changing the value proposition from a purely price-based commodity.

To do this, you need to understand who your best (most

profitable) customers are, what they care about, and createofferings based on their long-term value, as opposed to justthe value of the current transaction. Whether your bestcustomers are top athletes or just average shoppers, creatingdifferentiation in experiences that result in loyalty is all abouttreating your best customers better than anyone else


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Key Business Value Findings

Retailers remain mired in organizational structures that are ill suited to21st century competitive

challenges and opportunities. Although they are aware that immediate

business benefits are attainable through a more holistic examination ofstrategic sourcing opportunities,

they are mostly unable to implement these strategies within theirorganizations.

Spreadsheets, faxes, and e-mail remain the most commonly usedsourcing technologies

even though more comprehensive Web-based technologies areavailable and affordable.

Implications and Analysis


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Retailers inability to examine and implement better sourcing strategies has cost them dearly. Gross margin dollars are left on the table, and the supplier-brand manager relationship remains adversarial and essentially noncommunicative. Market leaders validated Aberdeens hypothesis that a sound sourcing strategy can provide more value than just squeezing another penny out of suppliers. Retailers that do go forward with both

organizational changes and supporting technologies achieve gross margin and turn improvements without sacrificing customer service levels. Aberdeen created Sourcing for Innovation, a new sourcing framework based on survey results that encourages and rewards a holistic view of the relationships between product development, sourcing, demand forecasting, logistics modeling, and actual demand.

Recommendations for Action

Aberdeen offers the following recommendations to retailers: Evaluate how you are doing compared with your peers. Take small steps toward improving sourcing processes, generating return on investment (ROI) all along the way. Incrementally adopt a Sourcing for Innovation strategy. Align incentives and compensation to team, not just individual performance. Look beyond your current supplier base to possible new sources of finished goods. Consider sourcing short life-cycle product geographically closer to the point of demand

MANUFACTURER AND RETAILER BRANDS IN FOOD RETAILMANUFACTURER AND RETAILER BRANDS IN FOOD RETAIL


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ASSORTMENTS Notes from a shopping trip across EuropeASSORTMENTS Notes from a shopping trip across Europe

Heart Healthy Living Quaker Oatmeal & Heart Health Understand Heart Health

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Managing Weight


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Health & Nutrition Glossary


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Quaker Kitchen Recipes


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RETAILERS AS BRANDSRETAILERS AS BRANDS


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RETAILERS AS BRANDSRETAILERS AS BRANDS At the same time, retailers compete with manufacturers for consumer

pull to increase their relative market power and their share of the totalchannel profit pie (Steiner 1993). In doing so, they may sell some oftheir own brands. In fact, in industries like apparel, one can findseveral examples of retailers who carry only their own private labelproducts, e.g., GAP, Brooks Brothers, and Talbots.

Private label products may have their own unique brand names or bebranded under the name of the retailer. They allow the retailer todifferentiate its offerings from competing retailers, although oftenwithout the support afforded manufacturers brands.

Understanding how a retailer should be positioned and how the brandassortment sold by the retailer is related to its image are thus ofcritical importance. Some retailers have managed their brands moreeffectively than others, as is evident in their performance.

THE DIMENSIONS OF RETAILER IMAGETHE DIMENSIONS OF RETAILER IMAGE


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Following the American Marketing Associations definition of a brand, aretail brand identifies the goods and services of a retailer and

differentiates them from those of competitors. A retailers brand equity isexhibited in consumers responding more favorably to its marketingactions than they do to competing retailers (Keller 2003). The image of the

retailer in the minds of consumers is the basis of this brand equity

Researchers have studied a multitude of retailer attributes that influenceoverall image, e.g., the variety and quality of products, services, and brandssold; the physical store appearance; the appearance, behavior and servicequality of employees; the price levels, depth and frequency of promotions;

and so on. Lindquist (1974) and Mazursky and Ja

1742-Retailoutlet and Brand Mgt

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