Retail Mkting
Retail Mkting
Retail Mkting
TA IL
R E
RETAIL MARKETING
What is Retailing ?
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
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
•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.
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
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
• Products • Services
Business clothing Credit card service
Casual wear In-store service
Jeans alteration service
Formal wear Home delivery
customization
Clean environment
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.
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.
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
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