indian retail industry

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Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain.

Transcript of indian retail industry

  • MEANING 19-2 Retailisthesaleofgoodsandservicesfrom individualsorbusinessestotheend-user.Retailers arepartofanintegratedsystemcalledthesupply chain.Aretailerpurchasesgoodsorproductsinlarge quantitiesfrommanufacturersdirectlyorthrougha wholesale,andthensellssmallerquantitiesto theconsumerforaprofit.Retailingcanbedonein eitherfixedlocationslikestoresormarkets,door-to- doororbydelivery.
  • OrganisedVSUnorganisedRetailing 19-3
  • Types by products 19-5 Food products typicallyrequirecoldstorage facilities. Hard goods or durable goods ("hard-line retailers")appliances,electronics,furniture,sporting goods,etc.Goodsthatdonotquicklywearoutand provideutilityovertime. Soft goods or consumables clothing,apparel, andotherfabrics.Goodsthatareconsumedafterone useorhavealimitedperiod(typicallyunderthree years)inwhichyoumayusethem.
  • Typesofretailersoutlets 19-6 Department Store Supermarkets Warehouse retailers Speciality Retailers E-tailer Convenience Retailer Discount Retailer
  • ServicesOfferedbyRetailers 19-7
  • ThreeBasicTasksofRetailing LO 1
  • SellingProcessintheRetailEnvironment 19-9
  • Customers Point Of View 19- 10 Self service Self selection Limited service Full service
  • Worlds top retailers 19- 11 Wal-Mart Kroget Target Walgreen Costco Home depot CVS caremark Lowes Best buy
  • Indias top retailers 19- 12 Pantaloon retail K Raheja group Tata group RPG group Landmark group Bharti wall mart Reliance
  • Retail pricing 19- 13 Cost plus pricing Suggested retail pricing
  • Transfer mechanism 19- 14 Counter price Delivery Order Door to door Self service Digital delivery
  • BPO SERVICES For Retail Industry 19- 15
  • Retail Strategy The main focus:The main focus: Bringing harmony between the controllableBringing harmony between the controllable variables and the uncontrollable ones.variables and the uncontrollable ones. Uncontrollable variables drive the controllable ones!Uncontrollable variables drive the controllable ones! Developing an Overall Retail Strategy Retail Marketing Mix:Retail Marketing Mix: Controllable FactorsControllable Factors Competition & Environment:Competition & Environment: Uncontrollable FactorsUncontrollable Factors Whats the 3rd element of retail Strategy? Target Market Controllable Variables Store Location Store Format & Layout Merchandise Management Pricing Communications Uncontrollable Variables Consumers Competition Technology Economic Conditions Seasonality Legal Restrictions
  • 19- 17
  • Composition of key elements Place Product Price Promotion People Process Physical Environment
  • Key Element Place (store location) Target market Channel structure Channel management Retailer image Retail logistics Retail distribution
  • Key element Product (merchandise) Product development Product management Product features and benefits Branding Packaging After-sales services
  • Key element Price Costs Profitability Value for money Competitiveness Incentives Quality Status
  • Key element Promotion Developing promotional mixes Advertising management Sales promotion Sales management Public relations Direct marketing
  • Key element People element Staff capability Efficiency Availability Effectiveness Customer interaction Internal marketing
  • Key element Process element Order processing Database management Service delivery Queuing system Standardisation
  • 19- 25
  • Customer Service 19- 26 The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. These activities increase the value customers receive from the merchandise and service they purchase.
  • Strategic Advantage Through Customer Service 19- 27 Good service keeps customers returning to a retailer and generates positive word-of-mouth communication, which attracts new customers The challenge of providing consistent high-quality service offers an opportunity for a retailers to develop a sustainable competitive advantage
  • 19- 28 Customer Service Strategies Personalized Approach Greater benefits to customers Greater inconsistency Higher cost Standardized Approach Lower cost High consistency Meets but does not exceed expectations
  • Personalized Approach19- 29 Personalized Approach encourages service provider to tailor the service to meet each customers personal needs. Drawback: Service might be inconsistent Customized service is costly
  • Standardization19- 30 Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently. Retailers that use this approach: McDonalds Wal-Mart IKEA Dollar General Save-A-Lot The McGraw-Hill Companies, Inc./John Flournoy, photographer
  • Perceived Service19- 31 Cues used to assess service Reliability Assurance Tangibility Empathy Responsiveness Perceived Services evaluations are based on perception
  • Assessing Service Characteristics 19- 32 Reliability: accuracy of billing, meeting promised delivery dates Assurance (trust): guarantees and warranties, return policies Tangibility: appearance of store and salespeople Empathy: personalized service, receipts of notes and emails, recognition by name Responsiveness: returning calls and emails, giving prompt service
  • Challenges 19- 33
  • Recent trends In 2013 19- 34
  • 19- 36