RETAIL

BUSINESSPRESENTED BY1. Naba kishor Mohanty2. Subhasish Pattnaik3. Deepraj Rana4. Ashish ku. Pani5. Ansuman Pradhan6. Subodh biswal7. Tarikh Ansar8. Binayak Gupta9. Ajay Kok

Agenda

• INTRODUCTION• THE ECONOMIC IMPACT OF MODERN RETAIL• CHALLENGES & OPPORTUNITIES• TRENDS FOR THE YEAR AHEAD• RETAIL PROMOTION• INFRASTRUCTURE CHANGE FOR RETAIL

BUSINESS• EVALUATION & COMPETITION IN RETAIL• LENGTH & BREATH OF CHANGE RETAIL

BUSINESS• CONCLUSION

INTRODUCTION

• Retail comes from the Old French word tailer (compare modern French retailler), which means "to cut off, clip, pare, divide" in terms of tailoring. It was first recorded as a noun with the meaning of a "sale in small quantities.”

• It can be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable.

INTRODUCTION(RETAIL IN INDIA)

• Retail is India’s largest industry, and arguably the one with the most impact on the population. It is the country’s largest source of employment after agriculture.

• It has emerged as one of the most dynamic and fast paced industries with several players entering the market.

• India's retail and logistics industry, organized and unorganized in combination.

RetailIndian

Modern Format Retailers• Supermarkets (Food World)• Hyper Markets (Big Bazaar)• Department Stores (S Stop)• Specialty Chains (Ikea)• Company Owned Company Operated

Traditional Format Retailers• Kiranas• Street Markets• Exclusive/Multiple Brand Outlets

Classifying INDIAN Retail

ECONOMIC IMPACT OF MODERN RETAIL

OPPORTUNITIES

• WHAT IS IN STORE- Organized retail provides brands much needed visibility and platform for customer interaction. It also helps in launching of new product or product variant and in market penetration. It has wider product range and more frequent, speedier deliveries.

• URBANIZATION- Increased urbanization has shifted consumers to one place and thus a single retail can catch more customers.

• PLASTIC REVOLUTION- Increased use of credit cards is in favor of retail marketing. It creates requirement even when it is not necessary.

OPPORTUNITIES

• JO DIKHTA HAI WOH BIKTA HAI- Organized retail stores put stress on proper infrastructure like well maintained building, air conditioning, trained employees, electronic machine, parking facilities and proper display of goods category wise.

• EMPLOYMENT - Retail marketing is one of the largest employments generating industry. It provides employment to skilled, semi-skilled as well as to unskilled persons. Thus it helps in the socio- economic development of the society.

• PRICE WAR- Increase in the no of retail outlets increases competition among these retailers. To attract customers they give various promotional schemes as various discounts, buy one get one free, another product with any particular

product, festival special, etc.

TRENDS FOR THE YEAR AHEAD

RETAIL PROMOTION

• Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm.

• There are 101 types of promotion in retail business. Some are as follows-

promotions promotions

1. Classified Ads 11. Ad Magazines

2. Direct Mail 12. Catalogues

3. Postcards 13. Gift Certificates

4. Yellow Pages 14. Celebrity Endorsements

5. Space Ads 15. CD Sales letter

6. Radio/TV/Infomercials 16. Thank You Letters

7. Networking 17. Event Marketing

8. Telemarketing 18. Alternate Franchise

9. Banners, and Billboards 19. Pre-paid Services

10. Door Hangers 20. Data-Based Marketing

Elements of the Promotional Mix

AdvertisingSales promotion

Store atmosphereWeb site

Personal sellingE-mail marketing

Publicity Word of mouth

Impersonal Personal

Un

pai

dP

aid

Planning a Retail Promotional Strategy

Promotional Objectives

• Increase sales• Stimulate impulse and reminder buying• Get leads for sales personnel• Present and reinforce the retailer image• Inform customers about goods and services• Popularize new stores and Web sites• Enhance customer relations• Maintain customer loyalty• Have consumers pass along positive information

to friends and others

Promotional Objectives

Improve Long-Run Performance

Improve Short-Run Performance

Store Image and Positioning

PublicService

Increase Existing Customer Patronage

Attract New Customers

From Existing Trade Area

ExpandTrade Area

Public Relations

• Public Relations - Any communication that fosters a favorable image for the retailer among its publics– Nonpersonal or personal– Paid or nonpaid– Sponsor-controlled or not

• Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor

Advertising

• Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor

• Key aspects– Paid form– Nonpersonal presentation– Out-of-store mass media– Identified sponsor

Advertising

Advantages• Attracts a large audience• Gains pass along

readership (for print)• Low cost per contact• Many alternatives

available• Control over message

content; message can be standardized

• Message study possible• Editorial content

surrounds ad• Self-service operations

possible

Disadvantages• Standardized messages

lack flexibility• Some media require large

investments• Geographic flexibility

limited• Some media require long

lead time• Some media have high

throwaway rate• Some media limit the

ability to provide detailed information

Newspaper Advertising

Direct Mail

Billboards/Outdoor Ads

• On average, a billboard is only viewed for 7 seconds! • A good rule is to use about 8 to 10 words in your entire ad! • Your message must be very short so it can be easily read by the

people driving 60 to 75 miles per hour by your sign.

Media Selection

• Coverage – maximum number of consumers in the retailer’s target market

• Reach – actual total number of target customers who come into contact with the ad message

• Frequency – average number of times each person who is reached is exposed to the ad during a given time period

Sales Promotion

• Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Sales Promotions

Advantages• Eye-catching appeal• Distinctive themes

and tools• Additional value for

customer• Maintains customer

loyalty• Increases impulse

purchases• Fun for customers

Disadvantages• Difficult to terminate• Possible damage to

retailer’s image• More stress on

frivolous selling points

• Short-term effects only

• Used as a supplement

INFRASTRUCTURE CHANGE FOR RETAIL BUSINESS

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