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02/14/1602/14/1602/14/16

RETAIL MANAGEMENT

MODULE -3RETAILING STRATEGY FOR Setting up A et!i"

#g!ni$!ti#n AND %LANNING

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Ret!i" M!&et St!teg'

St!teg' i$ ! p"!n( ! )#*( ! +e!n$#, getting ,#+ )ee t# t)ee

St!teg' i$ ! pe$pe.tie( p#$iti#n(p"!n !n !.ti#n

St!teg' i$ ! gene!" ,!+e*#& t)!t

p#ie$ gui!n.e ,# !.ti#n$ t# et!&en !n( !t t)e $!+e ti+e ( i$$)!pe ' t)e !.ti#n$ t!&en

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Ret!i" St!tegie$

Important strategic decisions ofa retailer:

Store location

Merchandising

Pricing

Marketing

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Steps in Strategy Building:Dene t)e +i$$i#n # t)e pup#$e #,

t)e #g!ni$!ti#n

#nu.t ! $itu!ti#n !n!"'$e$Ienti,'ing #pti#n$/$t!tegi.!"ten!tie$

Set Oe.tie$

Ot!in !n !""#.!te e$#u.e$Dee"#p t)e $t!tegi. p"!n

I+p"e+ent t)e $t!teg'( e!"u!te !n

.#nt#"

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Financial Strategy:

Fin!n.i!" !n!"'$i$ +u$t e .!ie #utIt en!"e$ et!i"e$ pe,#+!n.e

It )e"p$ t# +#nit# pe,#+!n.e !n t#

e$t!"i$) .#nt#"Funing Ret!i" 5entue$

App#!.)ing n!n.e .#+p!nie$ #!n&$

%i!te e7uit' ,uning

F!n.)i$ing

Supp"ie eit

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)#i.e #, et!i" "#.!ti#n$

Re$e!.) #n $t#e "#.!ti#n $t!te !,te 8#" *!I

L#.!ti#n #, t)e et!i" #ut"et i$ !n i+p#t!nt ,!.t#

)!nge !,te "#.!ting ! $t#e 9 .#+p"e:

L#$$ #, .u$t#+e$ ; e+p"#'ee$

Ne* "#.!ti#n 9 *i"" n#t enet !$ t)e e!"ie #ne

L#.!ti#n i$ !n integ!" p!t #, t)e et!i" $t!teg'

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T'pe$ #, et!i" "#.!ti#n$

Depen$ #n t)e t!get !uien.e ; &in #,+e.)!ni$e

Eg L#.!ti#n #, ! .#nenien.e $t#e *i"" n#t $uit! $pe.i!"t' $t#e

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Fee St!ning "#.!ti#n

L#.!te !"#ng ! +!# t!?. !te'

N# .#+petitie et!i"e$ !#un

Rent$ 9 "#*

F!.i"itie$ 9 "i&e p!&ing i$ !+p"e

Aeti$e+ent .#$t 9 )ig)

T!e"ing ti+e( Di$t!n.e( Fue" .#$t 9 et!i"e$)#u" .#n$ie e,#e $e"e.ting "#.!ti#n

!t.)+ent !e! e.i$i#n$ 9 !..#ing t# t)e*i""ingne$$ #, t)e .u$t#+e$ t# t!e"

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%!t #, ! u$ine$$ i$ti.t

%"!.e #, .#++e.e/ .ente #, t!e in t)e .it' # t#*n

T)ee t'pe$ 9 .ent!"( $e.#n!'( neig)#)## u$ine$$

i$ti.t

ent!" 9 +!in .ente #, .#++e.e !n t!e

Se.#n!' 9 e#"e #e ! pei# #, ti+e *it) t)e$pe! #, p#pu"!ti#n in .it'

Neig)#)## 9 Unp"!nne $)#pping !e! 9 t# $ee t)e

nee$ #, neig)#)##

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%!t #, ! $)#pping .ente

G#up #, et!i" !n #t)e .#++e.i!"e$t!"i$)+ent$ t)!t i$ p"!nne(ee"#pe( #*ne !n +!n!ge !$ $ing"e

p#pet'

M!"" # ! $tip .ente

Eg @##&e e"$ #i+!t#e

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Strip Centre

Mall

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Step$ in#"e in .)##$ing !et!i" "#.!ti#n

M!' e ! n#n $'$te+!ti. p#.e$$ !$e #n gut,ee"ing( # eni#n+ent!" #$e!ti#n # !ni+it!ti#n #, .#+petit#$

M!' e S'$te+!ti. %#.e$$ 9 !$e #n .et!inp!!+ete$ ; $tep$ t# e ,#""#*e

Ienti,' t)e M!&et E!"u!te t)e e+!n !n $upp"'

Ienti,' t)e +#$t !tt!.tie $ite$

Se"e.t t)e e$t $ite$ !!i"!"e

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M!&et Ienti.!ti#n

Nee$ #, pe#p"e ie $pe.i!""' in Ini! 9+!&ete )!$ t# ienti,' t)e +!&et$!tt!.tie t# et!i"ing

)!!.tei$ti.$ #, +!&et #, Eu#peie$ ,#+ !$ t)!t #, A$i! !n A,i.!

5!i#u$ $#.i!" t)e#i$t$ pe$entet)e#ie$ !$e #n t)e .#n.ept #, G!it'

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Dete+ining T)e +!&etp#tenti!"

De+#g!p)i. ,e!tue$ #, t)e p#pu"!ti#n

SiBe( u!"( u!n p#pu"!ti#n( "ite!.' !n eu.!ti#n "ee"$

)!!.tei$ti.$ #, t)e )#u$e)#"$ in t)e !e!

C#u$e )#" In.#+e 9 "#* in.#+e 9 "#.!" !ni!/g#.e' $t#ei$ en#ug)

Age F!.t# - Y#ut) p#pu"!ti#n 9 ,!$t ,## ; ."#t)ing 9 $t#e$.!n e e.ie !..#ing"'

Une$t!ning #, E+p"#'+ent "ee"$ !n t'pe #,e+p"#'+ent

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#nt

#+petiti#n !n #+p!tii"it'

#+p!tii"it' 9 8)ee t# "#.!te 9 Gi,t $)#p 9 ne!t)e!te( @u$ $t#p( ep!t+ent!" $t#e

#+petiti#n 9 .#+petit#$ $t#e $iBe !n t)e .#$t t)e'$pen ,# e!.) $7u!e ,eet !n t)e etun$ t)e' get

,#+ t)e $!+e

L!*$ !n Regu"!ti#n$

5!i#u$ pe+i$$i#n$( )#u$ #, #pe!ti#n( +ini+u+*!ge$( )#"i!'$ et.(

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#nt

T!e Ae! An!"'$i$

A ge#g!p)i. !e! t)!t gene!te$ t)e +!#it' #,t)e .u$t#+e$ ,# t)e $t#e

T!e !e! e:ten$ e'#n t)e +uni.ip!"#un!ie$ #, t)e t#*n # .it'

T!e !e! 9 !' 9 !.. t# t)e p#u.t t'pe($ei.e$ ( +!&et $eg+ent$

A t!e !e! )!$ 3 p!t$ 9 pi+!'( $e.#n!'(,inge # teti!'

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Ret!i" St#e

Tertiary

Secondary 15 25%

Primary - 50-80% customers

Types of Tradin !rea

"etermined #y studyin t$e freuency of purc$ases and

a&erae #ill si'e

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#nt

T!ing !e!$ !e epenent #n i$t!n.e

T*# t'pe$ #nenien.e $)#pping t!e !e!

M!' e ! e$tin!ti#n $t#e( *)ee t!ing !e! i$ "!ge( pe#p"et!e" ! i$t!n.e t# i$it t)e $t#e

M!' e ! p!!$ite $t#e t)!t epen #n #t)e $t#e$ .u$t#+e$9 +!g!Bine $t!n !t )#te"( R!i"*!' $t!ti#n

#+p!i$#n $)#pping t!e !e!

@!$e #n %i.e $e"e.ti#n( 7u!"it' !n $t'"e Eg E"e.ti.!"App"i!n.e$ ( Funitue et.

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Ienti,' !"ten!te $ite$ !n$e"e.t $ite$

F!.t#$ Inuen.ing Site L#.!ti#n

T!?.

Re,e$ #t) pee$ti!n !n e)i.u"! t!?.

A..e$$ii"it' #, t)e +!&et

@u$/ T!in/ !n .#nne.tiit' t# ieent p!t$ #, t)e .it'

T#t!" Nu+e #, $t#e$ !n t)e t'pe #, $t#e$ in t)!t!e!

Ret!i" $!tu!ti#n ine: t)e#'

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%!&ing F!.i"itie$

Re!" e$t!te .#$t$

CR !!i"!i"it'

O..up!n.'

Ot)e A+enitie$

Nu+e #, $t#e$ 9 "!ge 9 )ig) t!?. !n i.ee$! !n t'pe #, $t#e 9 Ae! +e!nt ,# te:ti"e

nee $uit$ #t)e$

02/14/16

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S%AE MANAGEMENT

T)e $tu' #, t)e i$tiuti#n #, $p!.e !""#ttet# p!ti.u"! .!teg#ie$ in e"!ti#n$)ip t# t)eip#u.tiit' !n t)ei inent#' !"!n.e$

%#u.tie u$e #, $p!.e i$ t)e &e' ini.!t# #,u'ing !n +e.)!ni$ing $u..e$$

Sp!.e .#n$t!int$ !ppe!$ t# !"" et!i"e$ -

#t) $t#e !n n#n-$t#e et!i"ing

@ette $p!.e +!n!ge+ent .e!te$ ! i$u!".#n$i$ten.' 9 .u$t#+e !tt!.ti#n

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Sp!.e +!n!ge+ent p#.e$$

Me!$uing t)e et!i" $p!.e

Diiing t)e $p!.e int# $e""ing !e!$

Dete+ine t)e "!'#ut

Dete+ine t)e $p!.e !""#.!ti#n #,p#u.t "ine$

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#nt

Me!$uing et!i" $p!.e

T)e t#t!" $p!.e $)#u" e +e!$u!"e

St#e 9 %)'$i.!" $p!.e( *it)( "engt)()eig)t

N#n- St#e 9 t!get nu+e #, p!ge$ in !.!t!"#g # *e$ite

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#nt

Diiing t)e Sp!.e int# Se""ing !e!$

U$u!""' ene ' p#u.t .!teg#' #ep!t+ent

Dete+ine ' t)e )i$t#i.!" e$ti+!te #, t)e,#e.!$t .!teg#' / ep!t+ent pe,#+!n.e

E:pe$$e !$ $p!ti!" +e!$ue< S7 +ete$( S7 ,t>

S#+eti+e$ !$e #n t)e nu+e #, :tue$!""#tte t# e!.) .!teg#'

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#nt

Dete+ine t)e L!'#ut

De.i$i#n #, p#u.t !!.en.ie$ !n t)e "#.!ti#n #,$e""ing !e!$

In !n iniiu!" #ut"et 9 "#.!ti#n #, ent!n.e$( *!"&*!'$ !#un t)e $t#e( "i,t( e$.!"!t#$( pi""!$( ii$i#n$et. *i"" inuen.e t)e p"!nning !n e.i$i#n$

!t!"#g 9 p#u.t .!teg#ie$ !t ,#nt( +i"e( !.&p!ge$

Re"!ti#n$)ip et*een t)e .!teg#ie$ $)#u" e.#n$iee

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#nt

Dete+ine t)e $p!.e !""#.!ti#n #, p#u.t"ine$

A""#.!ti#n #, iniiu!" :tue$ t# e!.) p#u.t"ine !n SHU$

T)e !!i"!i"it' ; .)!!.tei$ti.$ #, :tue$(iniiu!" p#u.t pe,#+!n.e$( ,e!tue$(

.#+p!tii"it' et. inuen.e$ t)e e.i$i#n

M!n' et!i"e$ u$e $#p)i$ti.!te !n.#+puteiBe $p!.e !""#.!ti#n $'$te+

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Signi.!n.e #, Sp!.eM!n!ge+ent

A well-planned and properly designed retailfoor achieves a great deal or the store: It enables a smooth and ecient customer fow

into the store and within it.

It helps the customer reach and access themerchandise he is looking or, without ail. It helps create a eeling o comort in the minds

o customers, enabling them to walt their waythrough without acing any bottlenecks on theway.

!he aesthetics o a well-planned foor are avisual east or the customer and trigger the"come-back# eeling in him, as he eels a sense obelonging in the store.

A well laid-out foor, in essence, helps the store

to sell more e$ectively and retain customers.

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Retail Location Research

Techniques:er!ndahl"erschman Inde#

The Inde# of Retail Saturation

Reilly$s La% of gra&itation

'entral Place theory

u($s model of trading area analysis

'omputer Simulation Models

Multiple Regression

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Trading )rea A t!ing !e! i$ ! ge#g!p)i. !e! .#nt!ining t)e

.u$t#+e$ #, ! p!ti.u"! + # g#up #, +$ ,#$pe.i. g##$ # $ei.e$

Trade Area Analysis It i$ ne.e$$!' t# e$ti+!te+!&et p#tenti!"( une$t!n .#n$u+e p#"e(.#+petiti#n et. GIS < Ge#g!p)i.!" In,#+!ti#nS'$te+ 9 .#+ine igitiBe +!pping *it) &e'

"#.!ti#n!" !t! >u$e ,# t)i$ pup#$e

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02/14/16

*eographic Information Systems igitiBe +!pping *it) &e' "#.!ti#n!"

!t! t# g!p)i.!""' epi.t t!ing-!e!

.)!!.tei$ti.$ $u.) !$ p#pu"!ti#n e+#g!p)i.$

!t! #n .u$t#+e pu.)!$e$

"i$ting$ #, .uent( p#p#$e( !n .#+petit#

"#.!ti#n$

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er!ndahl"erschman Inde#:

It i$ !$e #n t)e +!&et $)!e$ #, t)e .#+petit#$Su+ #, t)e $7u!e$ #, t)e +!&et $)!e$ #, t)e

.#+petit# gie$ ! !"ue

I, it i$ +#e t)!n 100 9 Cig)"' .#n.ent!te

1000-100 9 M#e!te"' #n.ent!te

Le$$ t)!n 1000 9 Un.#n.ent!te

Inde# of retail saturation+IRS,:

T$e (nde) of *etail Saturation is a t$eory of retail saturation

inde) is calculated to determine t$e saturation inde) of retail

s$oppin district + (f (*S is more t$en it is $i$ly saturated and

retail success is lo, and &ice &ersa

Reilly$s La%

Rei""'$ "!* #, et!i" g!it!ti#n( ! t!iti#n!" +e!n$ #,t!ing-!e! e"ine!ti#n( e$t!"i$)e$ ! p#int #,

inieen.e et*een t*# .itie$ # .#++unitie$( $# t)e

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Cu$ "!*Cu$ "!* #, $)#ppe !tt!.ti#n

e"ine!te$ t!ing !e!$ #n t)e

!$i$ #, p#u.t !$$#t+ent

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Oe.tie$ #, ! g## $t#e

e$ign

T#t!"it' 9 Ret!i" $t#e +u$t e.#n$iee !$ ! *)#"e$#+e unit#n$i$tent *it) $t#e i+!geClear focus

#$t$ 5$ 5!"ueF"e:ii"it'#nenien.e

%#u.t i$p"!'

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02/14/16

CRM in Ret!i"

Ienti,'ing !i#u$ #"e$ in t)e

#g!ni$!ti#n

Re.uit+ent

Se"e.ti#nT!ining

M#ti!ti#n

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02/14/16

CR )!""enge$ in Ret!i"

L!.& #, $&i""e +!np#*e

Ste$$

L!.& #, ,#+!" eu.!ti#n in et!i"

8#& ,#.e !ttiti#nT)e!t #, p#!.)ing

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In,#+!ti#n $'$te+$ in

Ret!i"

! *etail (nformation System anticipates t$e

information needs of retail manaers

collects. orani'es and stores rele&ant dataon a continuous #asis directs t$e flo, of

information to t$e proper decision ma/ers

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App"i.!ti#n$ #, IT inRet!i"ing

)utomating Processes E"e.t#ni. %#int #,S!"e$( Inent#' %"!nning( Oeing !nM!n!ge+ent

'ollecting -ata ).out 'ustomers %u.)!$ing

p!tten$ #, .u$t#+e$( $eg+ent!ti#n(pe$#n!"iB!ti#n( .u$t#+iB!ti#n #, #e$( "#'!"t'p#g!+$( $t#e e$ign !n p#u.t p"!.e+ent$

Feed.ack on Marketing -ecisions E%OS !t!t# $tu'

ee.t$ #, p#+#ti#n$( pi.e$( ne* p#u.t$ !np!.&!ging .)!nge$

'ommunications 8it) $upp"ie$( .u$t#+e$(inten!"

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#nt

Tools to Plan the Business S#,t*!e t# p"!n(uget( ,#e.!$t )##$e e$t "#.!ti#n$

)dding 0alue to Retail Transactions IT-!$$i$te t!n$!.ti#n$ +!' e pe,ee' $#+e .u$t#+e$( $e",-$.!nning( in-$t#e&i#$&$ ,# p#u.t!n in,# $e!.)

Technologically"ena.led Shopping Intenet$)#pping

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@enet$ #, IT in Ret!i"ing

#$t !n %#u.tiit' @enet$

E?.ien.' #, ti+e/t!n$!.ti#n $pee in.e!$e$

Reu.e 7ueuing ti+e$

Ope!ting .#$t eu.ti#n$

In.e!$e !..u!.' #, !"" !$pe.t$ #, t)e $!"e$t!n$!.ti#n

I+p#e inent#' +!n!ge+ent

Reu.ti#n$ in $t#.& #ut$ !n $t#.& )#"ing$

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#nt

M!&eting @enet$ I+p#e !t!-ee.tiene$$ #,

p#+#ti#n$( ,#e.!$t #, $!"e$

Ai"it' t# in.#p#!te ,!$te e$p#n$e$t# .)!nging +!&et .#niti#n$ #n$u+e enet$ ,#+ #pe!ti#n!"

e?.ien.ie$ eg $)#te 7ueue$

!n "e! t# ui"ing #, "#'!"t' $.)e+e$ Aiti#n!" $e""ing $p!.e .#B #, eu.e

$t#.&)#"ing$

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A Ret!i" IT S'$te+

E"e.t#ni. %#int-#,-S!"e S'$te+$

E"e.t#ni. Fun$ T!n$,e !t %#int #,S!"e

T)e Unie$!" %#u.t #e #@!.#e

Ientie$ e!.) p#u.t #*n t# it$ SHU

Fi$t 3 igit$ #unt' .#e Ne:t 4 igit$ #+p!n' .#e

Ne:t J igit$ %#u.t .#e

L!$t igit )e.& igit

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#nt

RFID

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E"e.t#ni. !t! Inte.)!nge

8it) EDI( et!i"e$ !n $upp"ie$egu"!"' e:.)!nge in,#+!ti#n

t)#ug) t)ei .#+pute$ *it) eg!t# inent#' "ee"$( e"ie' ti+e( unit$!"e$ et. #, p!ti.u"! ite+$

@#t) p!tie$ en)!n.e t)ei e.i$i#n-+!&ing .!p!i"itie$( ette .#nt#"inent#' !n !e +#e e$p#n$ie t#e+!n

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02/14/16

SU%%LY CAIN

MANAGEMENT

Supp"' .)!in +!n!ge+ent en$ue$ !

$+##t) !n e?.ient #* ,#+ !*

+!tei!" t# ni$)e g##$( int# t)e)!n$ #, t)e .#n$u+e$

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02/14/16

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Supp"' .)!in +!n!ge+ent

T)e et!i"e )!e t# p"!n( $#u.e !ne"ie t)e p#u.t$

T)e $upp"' .)!in +u$t t!&e int#

!..#unt De+!n

Li,e '."e

%#u.t 5!iet' !n "e! ti+e Sei.e e7uie+ent #, t)e .u$t#+e$

%u$) Supp"' )!in !n %u"" Supp"' )!in

02/14/16

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Inn#!ti#n$ in $upp"' .)!in 5en# M!n!ge inent#'

T)e inent#' +!n!ge ' en#$/+!&e$

#""!#!tie p"!nning ,#e.!$ting !n

ep"eni$)+ent #""!#!ti#n *it) t)e $upp"ie !n et!i"e

#$$ #.&ing

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02/14/16

Ret!i" L#gi$ti.$

L#gi$ti.$ i$ !n integ!" p!t #, SM

Oe.tie T# eu.e inent#'-)#"ing .#$t$(i+p#e $pee( p#t

Deniti#n %!t #, t)e $upp"' .)!in p#.e$$ t)!t

p"!n$( i+p"e+ent$( !n .#nt#"$ t)e ,#*! !nee$e #* #, g##$

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T'pe$

T)i p!t' "#gi$ti.$

L#gi$ti.$ p#.e$$ #ut$#u.e t# t)e t)ip!t'

Eg( Fee:( @"ue!t F#ut) p!t' "#gi$ti.$

Supp"' .)!in e$ign $ei.e$ #ne '!n#t)e p!t'

Ree$e "#gi$ti.$

M!n!ging ee$e #* "i&e etune p#u.t$