PLANING AND MANAGING RETAIL BUSINESS

UNIT-I
Retail- “the activity of selling goods or services directly to consumers or end-users.”
Retailer- “a company or a person, that buys products from a manufacturer or
wholesaler and sells them to end users or customers.”
Retailing- It is the business activity of selling goods and services to the final
consumer. B) Non-Store Retailing-
“Retailing includes all the activities involved in selling goods or services to i) Direct Selling-
the final consumers for personal, non-business use” -- Kotler
The word ‘retail’ has been derived from the French word “retaillier” and means ‘to ii) Itinerant Retailers
cut a piece’ or ‘to break bulk’. Itinerant retailers are those who keep on
Features of Retailer- moving from one place to another for
selling their goods.
i) sales to Ultimate Customers • Hawkers- They carry their goods
ii) Transfers to Convenient Form- usually on bicycles and hand carts.
(to break into Bulk quantities to small • Peddlers- (by walking), They carry their
Quantities) goods either on heads or backs.
iii) Transfers to Convenient Place/Location- • Cheap Jacks- They do not stick to one place
(delivers good as per retailer convenient place) of business. They set up their shops in a
iv) Last link in Value Chain- particular locality for a temporary period
v) Includes Goods as Well as Services-
(Services i.e., insurance, tourism, hotel)
vi) Satisfying Consumer Wants- Forces of Retailer Business / industries-
vii) Knowledge Provider-
viii) Buying and Selling-
(Buying from Wholesaler & selling to
Ultimate customers)
ix) Deals with Small Quantities-
x) Less Capital Requirement-
xi) Maintain Personal Contacts-
viii) Advertising
Types of Retail Stores / Different Format of Retailer / Structure-

A) Store Based Retailer-

Competitive Forces-
i) Monopoly- a market situation where only one seller exits.
ii) Oligopoly- Competition among few firms
iii) Monopolistic- many competitors, but each one sells a slightly different product.
iv) Perfect Competitions- large no. of buyers and sellers
Evolution of Retail Business in India-

Drivers of Retail Change in India

 UNIT-II Factor Affecting Store Layout- Types of Layout Design
CONSUMER PURCHASE BEHAVIOUR
Consumer Buying Behaviour refers to the actions taken (both on and offline)
by consumers before buying a product or service.
…………………………………………………………………………………………………
Consumer buying behaviour is the mix of a consumer's attitudes, preferences, and
decision-making process when the consumer is acting in the marketplace to buy a
good or service.
Features- Importance-

Store Exterior- Store Interior-

Factor Influencing Consumer Buying Behaviour-

Store Layout Design/ Types of Traffic Flow-
A traffic flow analysis is to determine ways to make shopping and running the store
easier, using layout and merchandising techniques to improve sales, enhance the
store's appearance and make shopping more fun.
I) Gird (straight) Layout-

CULTURAL FACTORS / FORCES- ii) Mixed, Free Flow Layout-

Culture factors comprises of set of values & ideologies of a particular community.
Ex. race and religion, tradition, caste and moral values, children live with their
parents also after marriage but not in foreign.
It refers to the beliefs, Customs, rituals & Practices that a particular group of
people focuses.
i) Subculture-
It’s completely up to you where you decide
Each culture divided into subculture i.e., Religion, Age, Geographical Locations, to locate your products. With free-flow,
Gender, status etc. there are fewer rules but it doesn’t mean
ii) Social Class- a division of a society based on social and economic status. that there aren’t any.
SOCIAL GROUPS- (Social factors include reference groups, family, and social status.)
RETAIL STORE LOCATION iii) Curving/Loop (Racetrack) Design/Layout

Factor Affecting Retail Location/ Problems in Shifting Location

Things to be Consider before opening store-

Store Layout and Design-

iv) Spine Layout- MERCHANDISE MANAGEMENT-
Termed as the analysis, planning, acquisition, handling and control of merchandise
investment of retail operation.
Merchandise Planning is done on the basis of – Time Based, Location Based, Store
Based.
Process of Merchandise Planning-

v) Other Types of Layouts-

a) Walking Space-
A good retail store allows sufficient walking space for customers.
b) Flow- The layout must encourage to enter from front side, and walk to the back
side of the store
c) Eye Level- (Put products at eye level, which will improve the sale)
Creative Display-
Display refers to the visual and artistic aspects of presenting a product to a target
group of customers.
A) Interior Display-
a) Point of Sale (POS) Display- b) Atmospheric-
Components of Merchandise planning-
i) Products-
a) Staple Products- Food & Clothing which have regular demand.
b) Seasonal Products- Has demand during season.
ii) Price- iii) Ranger- refers to width, breadth and depth of products offered for sale
iv) Assortment- ‘’combination of products made available to customer at retail outlet.’’
v) Space- Products should be visible to customers properly with having limited
space.
Stock Turns-
i) Light- ii) Sound & Scent/Perfumes-
Also referred to as “stock turn,” “inventory turn,” or “stock turnover,”
inventory turnover is a measurement of the number of times inventory is sold in one
year. In accounting practices, it is usually calculated for the year but could also be
done on a monthly or quarterly basis.

iii) Colour-
• Warm colours increase blood pressure, respiratory rate and other physiological
responses – attract customers and gain attention but can also be distracting
• Cool colours are relaxing, peaceful, calm and pleasant – effective for retailers
selling anxiety-causing products
c) Other types of Interior Display-
i) Open Displays allow customers to
handle and examine merchandise
without the help of a salesperson.
Ex. Cloth, Suits etc.
ii) Closed Displays allow customers
to see but not handle merchandise.
Ex- Jewelry cases
B) Exterior Display-
It includes the store's sign, marquee, outdoor lighting, banners, planters, awnings, Credit Management-
windows, and the building itself (its design and setting). It is the process of granting credit, setting the terms on which it is granted,
Marquee A marquee is an architectural
recovering this credit when it is due.
canopy that extends over a store's entrance.
Retail Pricing-
Entrances are usually designed with customer
The retail price is the final price that a good is sold to customer for.
convenience and store security in mind.
The Price at which the product is sold to customer is called as Retail Price
They can also contribute to a store's image.
Factor affecting Pricing Decisions Pricing Strategy-
Window Displays A display window begins
the selling process before a customer enters
the store
Mannequin- a model of a human body used
for displaying clothes in shop windows.
UNIT-III
MERCHANDISE PLANNING-
Merchandise- goods that are for sale
Merchandising is any practice which contributes to the sale of products.
Merchandising refers to displaying products that are for sale in a creative way.
MERCHANDISE PLANNING-
Merchandise planning is a systematic approach to planning, buying, and
selling merchandise to maximize the return on investment (ROI) while
simultaneously making merchandise available at the places, times, prices and
quantities that the market demands. / Offering right kind of product at right place
and in right price.
It also can be defined as the method of selecting, managing, purchasing, displaying
& Pricing the products in a manner that brings the investments, value addition to the
brand name by satisfying the customers need while avoiding the creation of excess
inventory.
 Retail Promotion- Application of IT in Supply Chain Management-
Elements of Promotion Mix- Promotional Objectives- a) E-Business b) Bar Code c) E- procurement d) E- Market Places i.e., Flipkard etc
e) Electronic Data Interchange
WAREHOUSING-
Warehouse is a building where large quantities of goods are stored before being sent to shops.
Warehousing means the action or process of storing goods in a warehouse.
Function of Warehousing-

Staying Ahead of Competition-

1. Know the competition.
Find out who your competitors are,
what they are offering, and what
their strengths and weaknesses. Features
2. Know your customers
3. Differentiate Product
UNIT-IV
Supply Chain Management -(Link)
Supply Chain Meaning- Need and Importance-

Supply Chain Structure-

Types of Warehouse-
A) Private Warehouse- B) Public Warehouse-

Supply Chain Management-

C) Government Warehouse- D) Co-operative warehouse-

Features- Factor Influencing Supply Chain-
• Management of inventory
• Processing Customers Requirements
• Forecasting of Demand
• Suppliers Relationship Management
• Managing logistics and shipping. E) Distribution Centres- F) Cold Storage-
• Return of Goods Management.
Objectives-

G) Export-Import Warehouse- H) Climate-Comtroled Warehouse-

Functions Influencing Supply Chain-

FRANCHISING

IT and Supply Chain Management-

Features of Franchising-
a) Two Parties- B) Written Agreements C) Exclusive Rights D) They Support each
Other E) Restriction impose as per Agreement F) Specified Period
Types of Franchising- DISCOUNT STORE-
A) Product Franchising: Discount stores are a category of retail stores where retailers sell merchandise at
This is the earliest type of franchising. Under this, dealers were given only the right discounted prices.
to distribute goods for a manufacturer. For this right, the dealer pays a fee for the
Features-
right to sell the trademarked goods of the producer. Product franchising was used,
i) Sells variety of products ii) Lower Price iii) Less or no customer service
perhaps for the first time, by the Singer Corporation during the 1800s to distribute
its sewing machines. This practice subsequently became popular in the petroleum Iv) Bulk Quantities
and automobile industries also. EMERGING TREND / EMERGING RETAIL FORMATS
B) Manufacturing Franchising- i) Van/ Mobile Van Retailing-
Under this arrangement, the franchisor (manufacturer) gives the dealer (bottler) the They visit door to door and sell products. They keep one day stock of his area of
exclusive right to produce and distribute the product in a particular area. This type merchandise and goes to an area to serve to its permanent customers. They also
of franchising is commonly used in the soft-drink industry. visit new or unknown places. Ex- Daily use products, Vegetables, meat, dairy
c) Business-Format Franchising- products etc.
Most popular & today Mean term. ii) Conference/Party/Event Retailing-
It is an arrangement under which the franchisor offers a wide range of services to Retailer invite people from nearby localities and after describing positive aspects
the franchisee, including marketing, advertising, strategic planning, training, of the merchandise, sells it. Event retailing usually takes place on national or
production of operations manuals and standards and quality control guidance. regional level events such as Valentine Day, Mother’s Day, Father’s Day, Diwali,
UNIT-V etc.
DIRECT MARKETING- iii) Distant Retailing-
A customer places the order from a remote location by telephone, SMS, internet,
pager etc, instead of visiting a store. Retailers who provide such home delivery
facility may/may not have physical stores. Ex- Amazon, Wal- Mart, Flipkard etc.
iv) Forecourt Retailing-
They establish a store in front of large buildings of high traffic areas.
Forms of Direct Marketing- Features of DM- TECHNOLOGY IN RETAILING
(Same as IT in Retailing in UNIT-IV)
ISSUES IN RETAILING/ BARRIERS TO ENTRY-

Benefits-

Process of DM-

EXCLUSIVE SHOP/ RETAILER- (Written above in UNIT-I)

DESTINATION STORE-
A destination store is the retail store that a person thinks of first when he or she
wants to buy something.
Destination stores are retail stores that combine several attributes to make it very
attractive to the consumers. It prompts the consumers to make a special visit to the
store for shopping even if the location is not very convenient for the consumers.
CHAIN STORE / MULTIPLE STORE-
A chain store is one of a group of stores engaged in the same kind of business in
different locations and under the same ownership and management.
Features-
i) Large Scale Retailing-
ii) Approaching to Customer
iii) Same Line of products
iv) Convenience Goods
v) Specialization
vi) Standardization
vii) Uniformity