marketing of retail business in india

Marketing of Retail Business In IndiaMarketing Management Project

INTRODUCTIONRetailing includes all the activities in selling goods or services directly to final consumers for personal or non-business use.

Any organisation selling to final consumers – Whether it is manufacturer, wholesaler, or retailer – is doing retailing

TYPES OF RETAILERSPECIALITY STORE Narrow product

line. EXAMPLE, The ReebokDEPARTMENT STORE Several product

line. EXAMPLE, NordstromSUPERMARKET Large, low cost, low

margin, high volume, self service store. EXAMPLE, Big Bazaar, More Supermarket

CONVENIENCE STORE Small store in residential areas, ex 24X7 stores, Big Apple

DISCOUNT STORES Standard or speciality merchandise, low price, low margin, high volume stores. EXAMPLE, Wal-Mart

OFF-PRICE RETAILER Leftover goods, overruns, irregular merchandise sold at less than retail like in factory outlets

SUPERSTORE Huge retailing space of household items, Ex Carrefour, Metro Cash n carry

RETAILER MARKET DECISIONS

Retailers conduct market decisions. They are made depending on need and nature of situation. Businessman can make target market decisions, product assortment and services decisions, price decisions, place decisions and promotion decisions.

Target Market Selection For Retailers all decision regarding products, distribution, price,

promotion follow this initial decision. He attempts to narrow the prospective markets to most profitable segments. Using demographic data such as age, income, geographical location of profitable prospective groups. Retailers tailor product offerings price, store location and store atmosphere to attract the customers.

Product Assortment and Service Retailers address certain question in deciding on product

assortments. Should a variety of product be stocked, or only a few lines with a depth of product within each? Should high quality or low priced goods be emphasized? Additionally intangibles such as service and the atmosphere in which products are presented are considered. Retailers desire for services such as credit and delivery must also be considered in attempting to find a balance between serving customers and maintaining profitability

Place: A number of options are open to retailers in selecting a location. An isolated location maybe fine for a discount store or catalog showroom where price advantages will impel customers to go out of their way to shop. Speciality stores and service businesses may choose to locate in an unplanned central business district, with its heavy foot traffic.

Price: Some retailers charge a high mark up and would never expect to achieve high volume. Retailers may either seek high mark up on high volume. Speciality stores usually go for high mark ups on lower volume.

Promotion: In order for the retailers products to be known to customers promotional tools like advertising , personal selling, sales promotion and publicity should be utilized

STORE ATMOSPHEREEvery Store has a look and a physical layout that

makes it hard or easy to move around.Walls: Replacement of plain white walls with

earthy tonesLighting: Replacement of bright lights with

warm accentSignage: Add big pictures of Healthy FoodProduce Department: Moving to wooden

floors to give a natural feel ex nature’s basketBaking: Knocked down walls to show off bread

baking

Store Activities & ExperiencesCalling each shopper a guestBuilding a indoor amusement parkProviding Café facility

ExamplesBass Pro Shops: Retailer of outdoor sports

equipments, features giant acquariums, trout ponds, archery & rifle ranges, all free

The Discovery Zone: A chain of children’s play spaces. Offers indoor spaces where kids can go wild without breaking anything

NEW RETAIL ENVIRONMENT

1. NEW RETAIL FORMS AND COMBINATIONS: Ex inclusion of Bank branches by superstores & food outlets by Petrol Pumps

2. GROWTH OF INTERTYPE COMPETITION: competition between Department, convenience & super stores

3. COMPETITION B/W STORE BASED & NON STORE BASED STORES

4. GROWTH OF GIANT RETAILERS

Contd.5. DECLINE OF

MIDDLE MARKET RETAILERS

6. GROWING INVESTMENT IN TECHNOLOGY

7. GLOBAL PROFILE OF MAJOR RETAILERS

Levels of Service.

Level of service (LOS) is a qualitative measure used to relate the quality of traffic service. LOS is used to analyse highways by categorizing traffic flow and assigning quality levels of traffic based on performance measure like speed, density,etc.

TYPESSelf Service. Customers are willing to carry out their own locate-compare-select process to save money.

Self Selection. Customers find their own goods. although they ask for assistance.Limited Services. These customers carry more shopping activities, need more information and assistance.

Full Service. Firm with a large range of goods offered at retail prices and which provides advice and detailed information on goods sold through its trained sales force.

Retailing can be divided in two categorizes, store and Non store retailing. Direct selling: followed by Eureka Forbes, Amway,Aviance etc.

Direct Marketing: Followed by Amazon, Flipkart, Myntra etc.

Automatic Vending: Is used to sell Milk, Beverages and Magazines and to dispense monies from ATMs

Buying Services: Is a scoreless retailer serving specific clientele like employees in large organizations.

PRIVATE LABELSEnable retailers to

offer quality products and earn higher margins

In-store labels are atleast 5-20% cheaper across various categories.

Reduces dependence on Manufacturer & Enhances negotiation power.

Corporate RetailingAlthough most retail stores are independently owned, some are part of corporate retailing. Corporate retail store achieve economies of scale, greater purchasing power, wider brand recognition and better employees. The major corporate retailer operating in India are Shoppers stop, Super Bazaar, McDonald, Time zone and Raymond Outlets etc.

Location decisionKey to success “LOCATION,LOCATION &

LOCATION”Departmental stores chains, oil-co. and fast

food chains

Evolution of location1. No. of people passing by on an average day2. percentage who enter the store3. Percentage who buy4. Avg amount of sale

CommunicationsRetailers use a wide range of

communications tools special sales campaignsissue money saving couponsIn store food samplingCustomised Point-of-sale material ex

Shopping BagsAds in magzines, T.V. & newspapersCoupons on shelves or at check out

point

Submitted By:AanchalNayantaraKishwarAsadAliAnshul

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