AKSHARA

INSTITUTE OF MANAGEMENT & TECHNOLOGY.

414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

UNIT-1 other channel members, as well as with

customers.
Give A Brief on Types of Retailers? What B. As to customer relationships, there are four
factors to keep in mind in applying
is retailing? relationship retailing:
 It consists of selling merchandise from a 1. The Customer Base
permanent location (a retail store) in small 2. Customer Service
quantities directly to the consumers. 3. Customer Satisfaction
 These consumers may be individual buyers or 4. Loyalty Programs
corporate. C. Regarding channel relationships, members of
 Retailer purchases goods or merchandise in bulk a distribution channel (manufacturers,
from manufacturers directly and then sells in small wholesalers, and retailers) jointly represent a
quantities value delivery system, which comprises all the
 Shops may be located in residential areas, colony parties that develop, produce, deliver, and sell
streets, community centers or in modern shopping and service particular goods and services.
arcades/ malls. 1. Ramifications for retailers
Meaning of Retailing: 2. When they forge positive relationships,
 According to Kotler: ´Retailing includes all the members of a value delivery system better
activities involved in selling goods or services to serve each other and the final consumer..
the final consumers for personal, non-business 3. One relationship-oriented practice that some
uses. manufacturers and retailers use is category
Types of Retailers: management. With this approach, channel
Store Retailing by Store based Strategy members collaborate to manage products by
1. Departmental stores. category rather than individual item.
2. Convenience Store. D. TECHNOLOGY AND RELATIONSHIPS IN
3. Full Line Discount. RETAILING
4. Conventional Supermarket. 1. Technology is beneficial to retailing
5. Specialty Stores relationships if the result is a better
6. Food Based Superstore information flow between retailers and
7. Off Price Retailer. customers, as well as between retailers and
8. Combination Store. suppliers; and there are faster, more
9. Variety Store. dependable transactions.
10. Super Centers 2. These two points should be kept in mind when
11. Flea Market. studying technology and its impact on
12. Hypermarket. relationships in retailing:
13. Factory Outlet. 3. Electronic banking involves both the use of
14. Limited Line Stores. automatic teller machines (ATMs) and the
15. Membership Club. instant processing of retail purchases.
4. Technology is changing the nature of retailer-
How to Build and Sustain Relationship in customer and retailer-supplier interactions
Retailing? E.ETHICAL PERFORMANCE AND
RELATIONSHIPS IN RETAILING
RETAILER RELATIONSHIPS 1. Ethical challenges fall into three
interconnected categories
A. For relationship retailing to work, enduring 2. Ethics
value-driven relationships are needed with 3. Social Responsibility

1
PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT
 AKSHARA
INSTITUTE OF MANAGEMENT & TECHNOLOGY.
414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

4. Consumerism in incomes, habits and fashions of customers must

Unit-2 be considered in the choice of goods.
Discuss Which is the Factors 7. Source of supply:
Influencing Store location? The wholesalers and manufacturers from whom
Proper establishment of shop is very important for goods are to be purchased must be selected
success in retail trade. While deciding the location of carefully. Availability of supplies, reputation of the
a retail outlet the following factors should be taken brand, price range, and distance from the shop,
into consideration: means of transport, etc. should be considered.
1. Selection of the area: 8. Sales policy:
Before commencing his business, a retailer should The retailer should adopt a suitable sales policy to
decide about the area which he would like to serve. increase sales and profits. Sales policy and prices
While deciding the area of operations, he should should be decided keeping in mind competition and
examine the population of the area, its nature customers.
(permanent or shifting), income level of the people,
nearness to big markets, transport and Explain the Marketing Related Issues in
communication facilities, etc. All these factors will Retailing?
reveal the demand potential of the area.
2. Choice of the site:
Once the area is decided, a specific site is selected
for location of the retail shop. A retailer may open
his shop in special markets or in residential areas.
The shop should be near the consumers in a
congested locality or at a place frequently visited by
the consumers. The place of location should be
easily accessible to consumers.
3. Scale of operation:
A retailer should decide the size of his business. Size
will depend upon his financial and managerial
resources, capacity to bear risks and demand
potential of the area.
4. Amount of capital:
Then the retailer has to decide the amount and
sources of capital. The amount of capital required
depends on the size of business, terms of trade, Unit-3
availability of credit, cost of decoration of shop and
display of goods. Adequate finance is necessary for Discuss in Detail about Implementation of
success in any business. Merchandise Plans?
5. Decoration of shop:
The layout and decoration of shop are decided so FUNCTIONS OF A MERCHANDISE
that customers find the place attractive and MANAGER
comfortable for shopping. The retailer should 1. Planning
arrange and display the goods in an attractive 2. Organizing
manner to attract more and more customers. 3. Directing
6. Selection of goods: 4. Controlling
The goods to be sold are selected on the basis of the 5. Coordinating
nature, status and needs of the customers. Changes MERCHANDISE PLANNING

2
PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT
 AKSHARA
INSTITUTE OF MANAGEMENT & TECHNOLOGY.
414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

Step I: Process of Planning Sales Forecast We get Cost = Retail Price – Mark up and,
1. Identifying Past Sales. Mark up = Retail Price– Cost.
2. Reviewing the Changes in the Economic Mark up % (at retail) = (Retail Selling Price –
Conditions. Merchandise Cost) / Retail Selling Price
3. Analyzing the changes in the sales potential.
4. Finding the changes in the marketing Mark up % (at cost) = (Retail Selling Price –
strategies of the retail organization and the Merchandise Cost) / merchandise Cost
completion
5. Creating the Sales Forecast When the buyer is aware of the mark up percentages
Step II: Identifying the Requirements required and of the selling price, he can also work
1. The creation of the Merchandise Budget out the price at which he actually needs to procure
2. The Assortment Plan the product.
Methods of Inventory Planning Demand-oriented pricing focuses on the quantities
 The Basic Stock Method that the customers would buy at various prices. It
 The percentage Variation Method largely depends on the perceived value attached to
 The week„s Supply Method, and the product by the customer. Sometimes, a high
 The Stock/ Sales Ratio Method priced product is perceived to be of a high quality
Step III: Merchandise Control and a low priced product is perceived to be of a low
Step IV: Assortment Planning quality. An understanding of the target market and
the value proposition that they would look for is the
Give an Overview on Pricing in Retail key to demand-oriented pricing.
management?
APPROACHES TO A PRICING STRATEGY
Factors Affecting Retail Pricing Price lining do retailers use a term when they sell
their merchandise only at the given prices. The
pricing strategies that can be followed include:
 Market skimming
 Market Penetration
 Leader pricing
 Price Bundling
 Multi-unit Pricing
 Discount pricing
 Every Day Low Pricing
 Odd Pricing
A Comparison of Mark ups and Markdowns A
mark up is where profit is expressed as a
DEVELOPING A PRICING STRATEGY
percentage of the costs, as shown below:
The pricing strategy adopted by a retailer can be
(price-Cost)/CostX100 Thus, a selling price of
cost-oriented, demand-oriented or competition-
Rs 30, with a cost of Rs 20, gives a markup of
oriented.
50 percent.
In Cost-oriented pricing, a basic mark up is added to
A markdown is where profit is expressed as a
the cost of the merchandise, to arrive at the price.
percentage of the sale price and is shown
Here, retail price is considered to be function of the
below: (price-Cost)/PriceX100
cost and the mark up.
thus, a selling price of Rs 60, with a cost of Rs
Thus, Retail Price = Cost + mark up If this formula
24, gives a markdown of 60 percent.
is rearranged,

3
PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT
 AKSHARA
INSTITUTE OF MANAGEMENT & TECHNOLOGY.
414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

% Markdown on selling price = %Mark Up on

cost X 100
= 100% = Mark Up on cost
% Mark Up on cost = % Markdown on selling
price X 100
= 100 % - % Markdown on selling price.
Unit-4
Describe about Concept and Importance of
Supply chain Management?

What is Retail Supply Chain Management?

All the processes that you utilize to ensure your
products reach the customers, starting from
obtaining the raw materials, managing inbound
materials & production processes to last-mile
delivery of those products at your customer‟s
doorstep, are together known as retail supply chain.
Why is Retail Supply Chain Management Enumerate the Importance of Quality
Important? Management in Retailing?
The differentiating factor of retail supply chain The Indian retail industry accounts for over 10
management from other supply chain management is per cent of the country's Gross Domestic
in the volume of product movement and the fast- Product (GDP) and around 8 per cent of the
moving nature of the products of the retail industry. employment.
The retail supply chain has to be monitored very The Indian retail industry accounts for over 10 per
closely and has to be free of glitches as the products cent of the country‟s Gross Domestic Product
are always on the move and the cycle time is very (GDP) and around 8 per cent of the employment.
low. India is the world‟s fifth-largest global destination
According to Zebra‟s 2018 Shopper Vision Study, in the retail space.
“53% of in-store and 51% of online shoppers are India‟s retail market is expected to nearly
not satisfied with the returns/exchange process.” double to US$ 1 trillion by 2020 from US$ 600
Follow these five steps: billion in 2015, driven by income growth,
urbanization and attitudinal shifts. While the
overall retail market is expected to grow at 12
per cent per annum, modern trade would expand
twice as fast at 20 per cent per annum and
traditional trade at 10 per cent.
India‟s Business to Business (B2B) e -commerce
market is expected to reach US$ 700 billion by 2020.
Online retail is expected to be at par with the
physical stores in the next five years.
Here are some of points, which say that
quality control is important for retail
business:

Building Reputation:

4
PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT
 AKSHARA
INSTITUTE OF MANAGEMENT & TECHNOLOGY.
414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

It takes ages to build reputation but it takes only 10. The gap between organized and unorganized
seconds to destroy the years‟ long hard work to 11. Need for retailing skills:
shatter in front of your eyes. Following are the areas where specialized skills
Customer Satisfaction: are increasingly felt:
Customer is your ultimate receiver of the (a) Managing Merchandise:
product or service, you offer. And keeping the Inventory management, vendor selection, presenting
customer happy will ensure growth and success merchandise, pricing the merchandise, planning and
of the retail brand. implementing merchandise assortments.
Growth is Constant: (b) Store operations and management:
For any business the growth is the factor which Layout, inventory management, buying, store
should always be upward in the graph and to keeping, customer relationship, objections handling,
keep the movement of growth graph linear, one visual merchandising.
has to ensure the quality of the product and (c) Strategic management:
services. Strategic planning, targeting, positioning marketing,
Saves Unnecessary Waste of Time: site location, building and creating sustainable
People are likely to do mistakes when they are advantage.
often made to face the panic and anxiety (d) Administration:
moments. To avoid unnecessary and unwanted Marketing, finance, human resource and so on.
attention or problems maintaining quality is way Describe the Impact of Global Brands on
easier method. Retailing in India?
Unit-5 India is seeing an explosive growth in retail and the
Elucidate the Recent Changes in Retailing in
India? engine for this growth is the mall. But there are huge
Retailing in India (Recent Trends) challenges in terms of rents, availability of front-end
Retailing today is the fastest growing sectors in the staffing, increasing competitiveness because of more
global economy and is under transition phase; not brands coming into the market and reducing
only in South Asian countries like India and China maneuverability, shortening of the fashion cycle – in
but throughout the world. The increased popularity
of organized retailing is mainly because of the short, sustainability.
consumers‟ changing behavior. This change has
become possible due to double income families, Director and CEO, Torero
breakup of joint family concept, changing lifestyles
and favorable demographic patterns. Corporation, Yashovardhan Gupta says, “India is a
Following are the recent trends that have stood fantastic market. Everyone is just focusing on other
out in recent years and continue to grow further: markets, not realising the massive opportunity that
1. New retail formats and combinations are
exists here. India is a nascent and virgin market.
emerging
2. Internet age, increased computer awareness Iconic brands like Starbucks and Suzuki always
3. Specialty stores attempt to create cultural change. Whereas, in other
4. Sales promotion channels
markets it is very hard to create cultural change.
5. Today retail organizations
6. Use of Plastic Money: India as a market has not had the opportunity to
7. Distance – No bar: experience many brands and for the first time
8. Partnerships and tie-ups international brands actually have the opportunity to
9. The government infrastructure support,
Sophisticated customers: punch above their weight.”

5
PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT
 AKSHARA
INSTITUTE OF MANAGEMENT & TECHNOLOGY.
414-RETAIL MANAGEMENT
(Approved by AICTE, New Delhi. & Affiliated to Sri Venkateswara University, Tirupati.)

He further adds, “India lacks in infrastructure, malls

where you can present your brand in the right
manner. Real estate has been struggling, retailers
have been struggling. Only the early entrants get the
best deals and the best locations. Apart from this,
India has a lot of energy. But still it can be
considered as a better risk reward scenario and one
can be well-assured of their investments in India.”

MD, Woly, Ketan Vyas says, “The competitior for

us was the consumer‟s mindset which did not
perceive that there is an opportunity and a certain
product can be at a premium price and yet offer
astounding value to the Indian consumer.”

Linificio E Canapificio Nazio, Maurizio

Colzami says, “Not only the size of the Indian
market is impressive but also there is a local demand
that is not only copying what other markets are
doing but also the local taste is growing in the
market and I think it is interesting to follow because
once this growth is established in the market, it will
be a growth of the continent and not a growth of a
small size country and that can have an impact
worldwide.”

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PREPARED BY B M K REDDY, ASST.PROFESSOR ICET CODE-AMTT