retailingMBA IV Semester [MBA MK 03]

Dr. Rahul Pratap Singh Kaurav

Syllabi

Factors affecting HR policy framework in retail industry

The HR Policy Framework

Functions of human resource in retail - I

Identify various roles in the organization Buying and merchandising Store management and operations Technology support

Recruitment and selection Training

Communication skills Product knowledge Company policies on return Knowledge of workplace Market awareness Personal grooming

Functions of human resource in retail - II

Motivation The organization culture Rewards and recognition Monetary benefits

Evaluation of performance Benefits of employees at

NORDSTROM Health benefits Dental Income protection Retirement benefits Group legal services

Legal compliances

Payment of bonus act, 1985

Payment and gratuity act, 1972

Employee provident fund act

The employees state insurance act

The minimum wages act, 1948

The trade union act, 1926

The delayed payment act, 1993

The payment of wages act, 1936

Employment of women The contract labour act, 1970 The inter-state migrant workmen act,

1979 The factories act The maternity benefit act Equal remuneration act, 1976 Employees’ state insurance (general)

regulation Workmen’s compensation act

Syllabi

Creating organization structures

Top management Buying and merchandising Store operations Administration & human resources Support functions like,

Advertising , branding and PR Marketing Finance and Accounts

Organisation structure for small/ single/ independent retailer

Owner/ ManagerBuying, Promotion, Sales,

HR, Operational control, and general management

External AdvisorsLawyers, CAs, Bankers etc.

Back Office StaffAccounting & record keeping, Data entry, Inventory control,

Purchase orders, Time keeping and payroll, Facilities and

management

Sales StaffCustomer service, Selling, Stock control, Display &

Housekeeping

Organisation structure for retail store chain/ departmental store

CEO

Publicity Manager- PR- Advertising- Display

Merchandising Manager

- Divisional MM- Divisional MM

- Stock people- Sales people

- Divisional MM

Controller - Expense- Merchandise- Credit- Records

Store Manager- Workroom- Customer service- HR- Receiving & Marking- Warehousing- Maintenance

General ManagerPresident Research

Syllabi

“is the efficient and effective implementation of

the policies and tasks that satisfy a retailer’s

customers, employees, and management (and

stockholders, if publicly owned)”.

Operations management

Operating A Retail Business

Operations Blueprint

Store Format, Size, and Space Allocation

Personnel Utilization

Store Maintenance, Energy Mgt., Renovations

Inventory Management

Store Security

Insurance

Credit Management

Computerization

Outsourcing

Crisis Management

Operations Blueprint

An operations blueprint systematically lists all the

operating functions to be performed, their characteristics,

and their timing.

The retailer specifies, in detail, every operating function

from the store’s opening to closing – and those responsible

for them.

With prototype stores, multiple outlets conform to relatively

uniform construction, layout, and operations.

Rationalized retailing programs combine centralized management

control with strict operating procedures.

With a top-down space management approach, a retailer starts with

its total available store space, divides space into categories, and then

works on product layouts.

Store Format, Size, and Space Allocation

Maximizing Personnel Productivity

Hiring Process

Workload Forecasts

Job Standardization and Cross-Training

Employee Performance Standards

Compensation

Self-Service

Length of Employment

Store Maintenance Decisions

Outside Agencies

For specialized maintenance services

Allows to focus on real and main job

Inventory Management Decisions

Merchandise from different suppliers

Sales floor versus warehouse or storeroom inventory

size

Inventory functions during non-store hours

Supplier support in storing merchandise or setting up

displays

Customer delivery items

Store Security

Uniformed security guards

Undercover personnel

Brighter lighting, cameras

Limited access to backroom facilities

Frequent bank deposits

Insurance Issues

Rising premiums

Reduced scope of coverage

by insurers

Greater need for insurance

against environmental risks

Credit Issues

Computerization

Crisis Management

Outsourcing

Syllabi

Importance of Services in Retail

Image- a satisfied (by services) customer of a store would definitely be a marketer for store by positive WoM.

Reputation- by attention on service.

Customer service as part of retail strategy

Identify its key customers and listen and respond to them. Define superior service and establish a service strategy. Set standards and measure performance. Select, train and empower employees to work for the customer. Recognise and rewards accomplishment.

Syllabi

Characteristics of services

IntangibleInseparablePerishableVariable

Strategic implication for service characteristics: Intangible

No patent protection is possible for services. It is difficult to display and communicate services and their

benefits. Service prices are difficult to set. Some services involve performances/ experiences.

Strategic implication for service characteristics: Inseparable

The consumer may be involved in the production of services. Centralized mass production of services is difficult. If the popular employee leaves a firm, customer may switch to

the new company where that person now works.

Strategic implication for service characteristics: Perishable

Services can not be inventorised.The effect of seasonality can be severe.Planning employee schedule can be complex.

Strategic implication for service characteristics: Variable

Standardization and quality control are hard to achieve. Services may be delivered by employees who are beyond the

immediate influence of management (at the customer’s home). Customer may perceive the variability in the service quality from

one occasion to next occasion, even if such variability does not actually occur.

Syllabi

Retail marketing mix

Product

Price

Place

Promotion

Presentation

Customer service (Process)

People

The retail image

Primary layer Product/ Merchandise features Pricing Place/ Location Promotion Presentation

Secondary layer Customer service Shopping experience Brand/ Store association people

Retail Store Image

The retail communication mix

Commonly used sales promotion: Contest PPO/ POS Referral gifts Coupons Prizes Demos Frequent shopper Sample 2 for the price of 1

Retail Communication Mix

Advertising

Public RelationsAdvertising

Direct Marketing

Personal Selling

Brand

“A name, term, design, symbol, or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors”

Gilbert, 1999

Brand is the product’s essence, its meaning and its direction. It defines its identity in time and space.

Successful retail branding starts with

A clear definition of what the retailer stands for

An identification of what the customers associate it with

When customers think the brand is a reflection of them

When the retailer is in the minds of the customer when he think of brand.

Role of brand

Successful Retail Branding ensures Stable long term demands Better margins Differentiation by way of creating long term association Adds value to the product Trust of fulfillment of service expectations Protection from growing competition Image as a company attractive enough to work for Negotiation with suppliers from a position of improved strength

Store or brand loyalty will ensure

Positive disposal to the brand based on brand loyalty Brand preference : Frequent utilization of the store over other

stores Brand allegiance: Continuous utilization of the store overtime Brand loyalty may be expressed for one or more brands

Hard core loyalty : Buying one brand all the time Soft core loyalty : Buying a combination of two competing brands Shifting loyalty : Buying preference shifting from one brand to another Switchers: No loyalty to any one brand based on the deal given.

Syllabi

Perceptions of service quality

Gap 1: The Knowledge Gap

Gap 2: The Standard Gap

Gap 3: The Delivery Gap

Gap 4: The Communication Gap

Gap 5: The Service Gap

The Knowledge Gap

The Standard Gap

The Delivery Gap

The Communication Gap

The Service Gap

Retail selling process

Acquiring product/ merchandise knowledge.Studying the customers.Approaching the customers.Presenting the merchandise.Overcoming resistance.Suggestive selling.Closing the sale !!!