Retail Mkting

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I NG

TA IL
R E
RETAIL MARKETING
What is Retailing ?

All activities involved in selling goods or services directly to


final consumers for their personal, non-business use.
Retailing can take place in stores and non-store environments
RETAILING FORMATS IN INDIA
Malls:
The largest form of organized retailing today. Located mainly in metro
cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft
and above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof.Examples
INORBIT, ATRIA, PHEONIX

Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M,
are focusing on specific market segments and have established themselves
strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on
the MRP through selling in bulk reaching economies of scale or excess
stock left over at the season. The product category can range from a
variety of perishable/ non perishable goods. Eg:- ADIDAS/ LEVIS Factory
Outlets
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. Further classified into localized departments such as
clothing, toys, home, groceries, etc. Departmental Stores are expected to
take over the apparel business from exclusive brand showrooms. Among
these, the biggest success is K Raheja's Shoppers Stop, which started in
Mumbai and now has more than seven large stores (over 30,000 sq. ft)
across India and even has its own in store brand for clothes called Stop!.
Eg:- Lifestyle, Pantaloons, Shoppers Stop

Hypermarts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. Super
Markets can further be classified in to mini supermarkets typically 1,000 sq
ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000
sq ft. having a strong focus on food & grocery and personal sales. Eg:- Big
Bazaar
MBO’s :
Multi Brand outlets, also known as Category Killers, offer
several brands across a single product category. These
usually do well in busy market places and Metros. Eg
Shoppers Stop

Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located
near residential areas. They stock a limited range of high-
turnover convenience products and are usually open for
extended periods during the day, seven days a week. Prices
are slightly higher due to the convenience premium.Eg
Kirana Store, Mom & Pop stores
Evolution of Indian retail
Historic/Rural Traditional/Pervasive Government Modern Formats/
Reach Reach Supported International

Exclusive Brand Outlets


Hyper/Super Markets
Department Stores
Shopping Malls

Khadi Stores
Cooperatives

Convenience Stores
Mom and Pop/Kiranas

Weekly Markets
Village Fairs
Melas
Availability/ Low
Source of Neighborhood Costs / Shopping
Entertainment Stores/Convenience Distribution Experience/Efficiency
RETAILER MARKETING DECISIONS
6p’s of retailing
•Product: It refers to product mix that the store retails to
customers after careful study of what their needs and wants are

•Place: an important element of retail is location selection . The


right location and appropriate site of store is also an important
element for the success of the retail business.

•Price: pricing is an important element in the marketing mix as


customers are price sensitive different kinds of pricing are
a) Maximum retail pricing –selling merchandise at full price
b) Promotional pricing –a temporary reduction in the price during a particular
season e.g. Diwali ,new year
c) Loss leader pricing- is a tactics to sell at cost or a little above cost a few
critical items to get more footfalls into the store
d) Everyday low pricing –pricing different kinds of merchandise on a lower
scale everyday to provide right value to buyer
•Promotion: promotion may be price led or occasion led with the main aim to
increase the footfalls and sales and to clear the inventory

•People :There are two kinds of people as far as retail marketing mix is
concerned . People to serve (customers) and People who serve(employees).
Employees are the face of the retail store their communication skills goes hand
in hand with the image of the store

•Presentation :Presentation is the way products and services are grouped and
presented in a retail store e.g. garments at one side and cosmetics at the other
side in a departmental store
STRATEGIES TO GAIN COMPETITIVE EDGE
Operational Excellence:- It is able to satisfy customers in a
progressive and cost effective manner eg:- MC Donald's
which claims it can deliver the order before the hour glass
runs out.

Product differentiation:- It comes into play when there is


product innovation or when the merchandise has unique
characteristic exclusive to retail organization eg:- WESTSIDE,
SHOPPERS STOP.

Customer Intimacy:- A progressive customer service


strategy creates the “stickiness “ with the store so that the
customers visited repeatedly. The focus on getting a large
share of sales from the loyal base of customers.
PRICING – PRODUCT DIFFERENTIATION

Price
High Medium Low
Premium strategy High-value strategy Super-value
High Eg:- Versace strategy
Medium Over charging Medium-value Good-value
Quality Strategy strategy strategy
Eg Levis red loop
Low Rip-off strategy False economy Economy
Eg:- Pind Balluchi strategy strategy
restaurant
MARKET EXPANSION STRATEGY

Product
Existing New

New Market Development Diversification


Market
Existing Market Penetration Product
Development
Online
OnlineShopping
Shopping
TV
TVShopping
ShoppingShows
Shows
Catalogs
Catalogs&&Direct
DirectMail
Mail
Direct
DirectMarketing
Marketing
TYPES OF NONSTORE RETAILING
Supply chain management
Vendor management :Efficient vendor management involves
selecting the right vendors capable of giving the right quality and
quantity of merchandise and meeting the deadlines
Electronic data interchange (EDI):helps in establishing an efficient information flow on
stock movement and vendors get to know of sales and inventories through web enables
servers or with the help of the organisations ERP pacakage that interacts with the
vendors system.

Warehouse management : the retail warehouse or the distribution centre performs the
function of receiving the ordered stocks , checking for the right quality ,quantity and price
tagging the merchandise with both mrp and security tags , receving goods returned from
retail stores and sending them to vendor.

Goods received notes: Is prepared when the merchandise received at the warehouse
from vendors is checked and matched with the purchase order and accordingly payment
is made.
MAXX
Experience the Difference
Vision

• “To deliver the best product and shopping


experience to our customers and strive to
build long term relationship”

Business Plan for Maxx store


16
Mission

To provide the best


quality product, also to
deliver valuable service
to the customers.
The main focus of the
company is to provide
customized product
according to customer
preference.
Business Plan for Maxx store 17
Products & Service

• Products • Services
 Business clothing  Credit card service
 Casual wear  In-store service
 Jeans  alteration service
 Formal wear  Home delivery
 customization

Business Plan for Maxx store 18


Place
Located in Inorbit mall vashi
Convenient parking Maxx is
here
High footfall due to mall traffic

Clean environment

Near to station and corporate


offices

Business Plan for Maxx store


4p’s of retailing


Price:
Maxx will focus on penetration pricing. This price is deliberately set at low
level to gain customer's interest and establishing a foot-hold in the
market.

We offer merchandise which is fashionable & competitively priced in the


range of Rs. 199 to Rs. 699

The target of the company is to achieve the breakeven in the first six
months. From this point onward we will strive to grow at a constant rate
to open a new outlet each year so that vision of company can be achieved.

Business Plan for Maxx store 20


Promotion :
oMaxx will use print media for creating awareness to its customers, because
the print media is the most appropriate strategy for it to reach to its target
customers.
oShop ambience, logo , designed poly bags, customer service, business cards
word of mouth will create its brand image

oAdvertising through leaflets , pamphlets, local cable, banners to promote its


merchandise.

People :
o Retailing is a labor-intensive business and Knowledgeable and skilled employees
committed to the retailer's objectives are critical assets that support the success of
the business.
o Trained staff with good communication skills ,Convincing skills, Well Mannered and
Courteous
PRESENTATION

Visual Communications Store Planning


Retail Identity Layout
Graphics • FREEFLOW
POS Signage • GRIND
Store Image
And
Productivity

Store Design Merchandising


Exterior Design Fixture Selection
Ambiance Visual Merchandising
Lighting
Marketing Analysis

Competition
• Target Customer Specialty stores
– Business executives
E- retailer
– College student
Departmental stores
– Office goers
– youth
• Customer Trend
– Local Resident
Convenient Buyers
• Segmentation
Discount Buyers
– Middle and upper middle
– Age between 18 & above
Business Plan for Maxx store 23
Supply Chain Management

Supplier Factory Warehouse Retailer Customer

• INFORMATION SYSTEM:- MAXX uses information system which


gives the information about the product which you sold in the
retail store. The system builds efficiencies into ordering,
distribution and merchandising processes and is designed to
provide timely, accurate sales information on day to day basis.
Retail information system includes;
• point-of-sale (POS) to assist in making inventory ordering decision

Business Plan for Maxx store 24


SUMMARY
No competitors in the vicinity: This is competitive
edge for the company to start a business in this
location as no one has taken an initiative to start
business of this nature. 

Competitive advantage Competitive disadvantage


•Customization •Small venture
•Low price
•Inexperienced
•High quality
•Easily reachable for target markets

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