Session 6 Store Layout

8/8/2019 Session 6 Store Layout

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Store Location

Presentation by Prof. Mohd Nazeer Ahmed, WLCCollege, India, Hyderabad


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Locational Strategies of Giant and Big Bazaar G iant chose to be situated in an isolated locality because of

Cheaper real estate costs Absence of competition Availability of large space

Such location has its disadvantagesIt is difficult to attract first time and repeat customersPeople are not willing to travel long distances

But management thinks these difficulties can be offset by theutility of the stores. The Giant offers a wide range of products at discounted prices. The utility of the store,management feels, will pull the people from longer distances



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Creating a store Image

Th e following are t h e factors t h at contribute t h e overall store image.Th e quality of t h e merc h andise offered, prices and t h e merc h andiseassortment .

Advertisement, external attractiveness, salesmansh

ip andfissionabilityC onvenience of location, products offered, s h opping experience,ease in transaction, strengt h s of t h e image, and clarity of messageC leanliness of t h e premises, credit facilities, keeping in line wit h

th e level of customer sop h istication, friendly sales personnel, freespace inside and outside t h e storeOperational efficiency, and p h ysical and tec h nological factorsDesign ambience and social factors.



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S tore Interiors

U tilizing and allocating spaceBack RoomOffice and other functional spaceAisles, service areas and other non-sellingareasFloor S paceW all S pace



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B randing Strategies and relative advantages of privatelabel brands

Manufacturers BrandsLG, Samsung, Sony, Onida, B PL, Videocon, Sharp, Panasonic,Akai, Godrej, Whirlpool etcHLL-Ponds, Surf, Rin, Fair and Lovely, Lux, B reeze, Lakme,

Kissan etcRaymond, Park Avenue, Zodiac, Van Huesen, Allen Solly, PeterEngland, Levis Wrangler, Flying M achine, Vimal and Grasim.Tanishq, Gili, De B eers, T B ZTitan Timex, Citizen, Casio

Lakme, Revlon, LOrealB ajaj- Kawasaki, Hero Honda, Honda Scooters, Kinetic,Yamaha, TVSAmul, B ritannia, Nestle, Haldirams, Parle .



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P rivate Label Brands

P rivate label brands also referred to asin-store brands, are products that are produced and marketedby retailers.Category managers generally develop the specifications for themerchandise to be offered as a private label and enter into atie-up with the third party to manufacture it.It is the responsibility of the retailers to market their private

brands.



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C ontinued..

Th e popularity of private labels is significantly low for t h efollowing reasons:Retailers are not able to advertise as aggressively as

manufacturersRetailers are not able to ac h ieve economies of scale indesigning and manufacturingRetailers lack tec h nical sop h istication

C onsumers regards private label brands as inferior tomanufacturers brands



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Reasons and Benefits for launc h ing P rivate Labels

yThe consumer does not see any tangible value insome of the manufacturers brands offered bystore.

y The retailer does not earn good margins throughthe sale of national brands

y Of all the purchase orders placed, the vendorsfulfill only 60 to 65 percent of the orders .



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Stores Layout an effective tool in communicating withcustomers

The ten golden rules of the Lay out Rule 1 - Layout = PositioningRule 2 - The first impressionRule 3 - A familiar routeRule 4 - The usefulness of the Layout toolboxRule 5 - Keeping the balance between customer and technologyRule 6 - Layout is 2D, but you need to think 3D!Rule 7 Arrangement of product ranges in accordance with the

customer's wishesRule 8 - Layout is never an isolated factor Rule 9 From macro to micro

Rule 10 Location comes first, before the concept


Documents

Session 6 Store Layout