managing retailing by aarushi
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Minor Project Report
On
MANAGING RETAILING
Submitted in partial fulfilment of the requirements for the award of the
degree of
Bachelor of Business Administration (BBA)
To
Guru Gobind Singh Indraprastha University, Delhi
Institute of Information Technology and Management
New Delhi 110058
Batch 2009 - 2012
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1. DEFINITION AND MEANING
Retailing consists of those business activities involved in the sale of goods and
services to consumers for their personal, family, or household use.
Retailing consists of the sale of goods or merchandise from a very fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated services,
such as delivery.
In commerce, a "retailer" buys goods or products in large quantities from
manufacturers or importers, either directly or through a wholesaler, and then sells
smaller quantities to the end-user. Retail establishments are often called shops or
stores. Retailers are at the end of the supply chain.
The term "retailer" is also applied where a service provider services the needs of a
large number of individuals, such as a public utility, like electric power.
Pic.1. Retailing process
The process of bringing the ultimate user to the main producer, through a series of
stages, where retailing is the last one. It is not limited to quantities, but limited to the
exact requirement of the ultimate user. Therefore, bringing about operational
efficiency at this last stage, and creating an environment so compelling that he looks
nowhere else, is "Retail Management"(RM).
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RM- is an art, and necessitates employing several tools of logistics management for a
complete end user satisfaction. RM - is getting to know the final user on behalf of the
producer. RM - is a process of facilitation.
2. CONCEPT OF RETAILING
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The distribution of consumer products begins with the producer and ends at the
ultimate consumer. Between the producer and the consumer there is a middleman-the
retailer, who links the producers and the ultimate consumers. Retailing is defined as a
conclusive set of activities or steps used to sell a product or a service to consumers for
their personal or family use. The word retail is derived from the French work
retailer, meaning to cut a piece off or to break bulk.
Manufacturer Distributors/Wholesalers Retailers Consumer
Pic.2. Distribution process of consumer goods.
A retailer is a person, agent, agency, company, or organisation which is instrumental
in reaching the goods, merchandise, or services to the ultimate consumer. Retailers
perform specific activities such as anticipating customers wants, developing
assortments of products, acquiring market information, and financing. A common
assumption is that retailing involves only the sale of products in stores. However, it
also includes the sale of services like those offered at a restaurant, parlour, or by a car
rental agencies. The selling need not necessarily take place through a store. Retailing
encompasses selling through the mail, the internet, door-to-door visit sany channel
that could be used to approach the consumer. Retailing has become such an intrinsic
part of our day today lives that it is often taken for granted. Why has retailing become
such a popular method of conducting business? The answer lies in the benefits a
vibrant retailing sector has to offer-an easier access to a variety of products, freedom
of choice and higher levels of customer service.
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Therefore, the ease of entry into retail business results in fierce competition and better
value for customer. To enter retailing, is easy and to fail is even easier. Therefore, in
order to survive in retailing, a firm do a satisfactory job in its primary role i.e.,
catering to customers.
3. SCOPE OF RETAILING
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Retail is clearly the sector that is poised to show the highest growth in the next five
years. The sector is set for a revolution, as both the present players and new entrants
are gearing up to explore the market. This sector contributes 10% of India's GDP and
the current growth rate is 8.5%. The present size of the organized retailing sector is
approximately 3% and is expected to grow to 25-30% by the year 2010. There are
about 300 new malls, 1500 supermarkets and 325 departmental stores currently
under construction. Many players are coming up with huge investments, due to
which the present 12 million mom-and-pop shops and kirana stores fear losing their
business. Most predictions say that the sector might reach to US$ 400-600 billion by
the year 2010. (Data provided by www.naukrihub.com)
3.1 Retail Landscape
Modern retail development in India is focused on the following cities:
West
Mumbai
Pune
Ahmadabad
North
Delhi and the National Capital Region
South
Chennai
Bangalore
Hyderabad
East
Kolkata
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Over the past 2-3 years the modern retailing has also shifted to suburban and small
cities as well like Ludhiana, Rajasthan, etc.
3.2 Some leading Indian Retailers are as follows:
Bata India Ltd
Big Bazaar
Food Bazaar
Liberty shoes Ltd.
Music World Entertainment Ltd.
Pantaloon Retail India Ltd.
Shoppers Stop
Subhiksha
Titan industries
3.5 FDI in retailing sector
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3.5.1 What is FDI?
Foreign direct investment (FDI) is the movement of capital across national frontiers in
a manner that grants the investor control over the acquired asset. Thus it is distinct
from portfolio investment which may cross borders, but does not offer such control.
Consistent economic growth, de-regulation, liberal investment rules, and operational
flexibility are all the factors that help increase the inflow of Foreign Direct Investment
or FDI.
3.5.2 Retailing Sector and FDI - Retailing is the largest private sector industry in the
world economy with the global industry size exceeding $6.6 trillion and a latest
survey has projected India as the top destination for retail investors. And the further
upsurge is anticipated in the retail sector as the Government of opened up 51% FDI in
single brand retail outlets. And as the government is in a process to initiate a second
phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The
Government is seeking for these options keeping in view the existing social
framework of India and the will ensure that the entry of global retail giants do not
displace the existing employment in the retail business.
Industry experts are sensitive to the point that local markets have an edge over the
retail investors in India as they have unique advantages such as an understanding of
local needs and extended service like home delivery. As the FDI influence on the
Indian retail sector sets in, the total size of the retail trade is expected to grow
extensively in the coming years and the consumer segments patronizing the big malls
will create frenzy for organized retailing predicting a growth of 25-30 per cent per
annum over the next decade. Moreover, Indian retail chains would get integrated with
global supply chains since FDI will bring in technology, quality standards and
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marketing thereby, leading to new economic opportunities and creating more
employment generation.
3.5.3 Benefits of FDI in Retail Sector
Higher competition would lead to higher quality in products and services.
Better lifestyle as better products would be introduced.
Exports would increase due to greater sourcing of major players.
Investment in whole supply chain would increase.
Technology would be upgraded in terms of logistics, production, and
distribution channels.
The markets of the sector would flourish and develop.
Employment would increase and skills & manpower will develop.
A strong retailing sector would promote tourism.
Economies of scale would help lower consumer prices and increase the
purchasing power of the consumer.
In the long term it will be beneficial in the up-gradation of agriculture and
small scale & medium scale industries. (Above data in figures is provided by
www.docstoc.com)
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4. RETAILING IN INDIA
4.1 Origin in India
Although retailing does not enjoy the status of an industry, the sheer size it will
develop into, is grabbing attention. The origin of retail in India dates back to ancient
times when the melas and mandis made their presence felt. The changing socio
economic patterns coupled with the consumption increase led to the emergence of the
convenience stores, which became a part of the civic planning. The next step was the
commercial plazas, which comprised merely shops offering a variety of goods and
services clubbed together. The inconveniences caused by lack of parking place, toilets
and maintenance, ushered in the entry big international brands opening their exclusive
showrooms. The opening up of the economy only fuelled this globalization. There
are, however, certain bottlenecks as well; the scarcity of space, coupled with the
stringent provisions of the Rent Control Act, act as a dissuasive factor for many
players to initiate operations in the main markets. This also explains why the Rahejas
forayed into their retail venture-Shoppers Stop.
4.2 Composition of Urban Outlets
RETAIL OUTLET
Grocers
Cosmetic stores
Chemist
Food stores
General stores
Tobacco, pan stores
Others
COMPOSITION
34.7%
4.0%
6.3%
6.6%
14.4%
17.0%
17.0%
(Data Source: www.docstoc.com)
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4.3 Emergence of Organised Retailing
Organized retailing in India represents a small fraction of the total retail market. In
2001, organized retail trade in India was worth Rs.11, 228.7 billion.(data
source:www.naukrihub.com). The modern retail formats are showing robust growth
as several retail chains have established a base in metropolitan cities, especially in
south India and are spreading all over India at a rapid pace. However, space and
rentals are providing to be the biggest constraints to the development of large formats
in metropolitan cities since retailers are aiming at prime locations.
In urban India, families are experiencing growth in income but dearth of time.
Women are taking up corporate jobs, which is adding to the familys income and
leading to better lifestyles. Rising incomes has led to an increased demand for better
quality products while lack of time has led to a demand for convenience and services.
The demand for frozen, instant, ready-to-eat food has been on the rise, especially in
the metropolitan and large cities in India. There is also a strong trend in favour of one-
stop shops like supermarkets and department stores.
Rural India continues to be serviced by small retail outlets. Only 3.6 million outlets
cater to more than 700 million inhabitants of rural India. Here,provision stores, paan
shops and rationshops are the most popular vehicles of retailing. Apart from this,
there are periodic or temporary markets, such as haats, peeth and melas that come up
at the same location at regular time intervals.
The McKinsey report predicts that FDI will help the retail businesses to grow to US $
460-470 billion by 2010. There has been a strong resistance to foreign direct
investment (FDI) in retailing from small traders who fears that foreign companies
would take away their business, lead to the closure of many small businesses and
result in large-scale unemployment. Therefore, government has discouraged FDI in
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the retail sector. At present, foreign retailers can enter the retailing sector only
through restricted modes. Global players in the retail segment have been entering the
market for a while now. Players that entered before the easing of restrictions on FDI
in retail had to come through different modes, such as joint ventures where Indian
partner is an export house (Total Health Care); franchising/local
manufacturing/sourcing from small-scale sector (McDonalds, Pizza Hut); cash and
carry operations (Giant) and licensing (Marks & Spencers).
The main condition for organised retailing is that the retailer should be able to manage
and influence the supply chain variables in a commercially viable and sustainable
manner. The organized retailer should be able to, through diversified risks and volume
sales command huge concessions on prices from the manufacturers. He should then
be in a position to allow a trickle down of this advantage to consumers out of his
saved costs.
4.4 Current Scenario
The Indian population is whooping 1 billion with 75% of the people living in villages
and small towns. It is only natural that the service sector is the biggest employer with
its contribution to GDP pegged at 54%. (Data source: www.tradechakra.com) Retail
in Indias largest industry after Agriculture with around 20% of the economically
active population engaged in it and generation 10% of Indias GDP. The growth of
the efficient small store culture can be attributed to the 6 million villages distributed
across the length and breadth of the country. The 12 million retail outlets in India are
the highest in the world. Its interesting to note that the Urban Population although
just 25% of the total, is an astounding 250 million in size is growing at healthy rate of
7% per annum. The chief driver of growth in the retail sector has been the consumer,
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with the spending increasing at an average of 11% per annum. The core and the
Lower middle have increased their share in the Growth.
The Indian consumers shopping needs are and traditionally have been fulfilled by
Kirana sores, Kiosks,street vendors and high-street shops for consumer durables and
luxury goods. To cater to this, each city developed its own identity and shopping
cluster, for instance in Pune there is MG Road, Bangalore has Brigade Road and
Commercial Street, Delhi has Connaught Place, Karol Bagh and South Extension. In
India we have 196 malls, covering an area of 51.6 million sq ft. And by year end
(2010) the count will shoot up to 258 malls. It will cover 94 million sq ft area. (Data
provided by www.docstoc.com)
4.5 Drivers of Change in Retailing
Changing demographics and industry structure
Expanding computer technology
Emphasis on lower costs and prices
Emphasis on convenience and service
Focus on products
Added experimentation
Continuing growth of non-store retailing
In todays competitive environment retailers have redefined their role in general, and
in the value chain in particular. Retailers act as gatekeepers who decide on which new
products should find their way to the shelves of their stores. As a result, they have a
strong say in the success of the product or service launched by a business firm. A
product manager of household appliances claimed, Marketers have to sell a new
product several times, first within the company, then to retailer and finally to the user
of the product.
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It is a well-established fact that manufacturers need to sell their products through
retail formats that are compatible with their business strategy, brand image, and
market profile in order to ensure a competitive edge. The role of retailers in the
present competitive environment has gained attention from manufacturers because
external parties such as market intermediaries and supplying partners are becoming
increasingly powerful. It is necessary for marketers of consumer products to identify
the need and motivations of their partners in the marketing channel. This is especially
true in the case or new products.
The increasing numbers of product categories followed by multiple brands in each
category complicate decision-making for both manufacturers and market
intermediaries. Retailers want of optimize sales within the limited shelf space,
governed by their individual sales philosophy. Retailers undertake risk in selection of
goods to be sold given the following major concern which is selling space available is
relatively fixed and returns maximum profits. If such space is occupied by
merchandise that is not moving, it will not result in profit. The retailer may have to
resort to substantial price reductions in order to get rid of the unsold stock.
Therefore, we can say that retailing is a dynamic industry-constantly changing due to
shifts in the needs of the consumers and the growth of technology. Retail formats and
companies that were unknown three decades ago are now major forces in the
economy. Therefore, the challenges for retail managers the world over are increasing-
they must take decisions ranging from setting the price of a bag of rice to setting up
multimillion dollar stores in malls. Selecting target markets, determining what
merchandise and services to offer, negotiating with suppliers, training salespeople-
these are just a few of the many functions that a retail manager has to perform on a
perpetual basis.
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The larger retailers have managed to set up huge supply/distribution chains, inventory
management systems, financing pacts and wide-scale marketing plans. In the
backdrop of globalization, liberalization and highly aware customers, a retailer is
required to make a conscious effort to position himself distinctively to face the
competition. This is determined to a great extent by the retail mix strategy followed
by accompany to sell its products.
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Extend credit facility - He develops personal contact with the
consumers and gives them goods on credit.
Create demand by window display etc.
He bears the risks in connection with Physical Spoilage of goods and
fall in price. Besides he bears risks on account of fire, theft,
deterioration in the quality and spoilage of goods.
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6. TYPES OF WHOLESALERS
6.1 Merchant Wholesalers: These wholesalers own the products they sell. For
example, a wholesale lumber yard that buys plywood from the producer is a
merchant wholesaler. It actually owns - takes title to - the plywood for some
period of time before selling to its customers. About four out of five wholesaling
establishments in the United States are merchant wholesalers - and they handle
about 59 percent of wholesale sales. Merchant wholesalers often specialize by
certain types of products or customers and they service relatively small geographic
areas. And several wholesalers may be competing for the same customers. For
example, about 3,000 specialized food wholesalers compete for the business of
restaurants, hotels, and cafeterias across the United States.
6.2 General Merchandise Wholesalers: These are service wholesalers who carry
a wide variety of non-perishable items such as hardware, electrical supplies,
plumbing supplies, furniture, drugs, cosmetics, and automobile equipment. These
wholesalers originally developed to serve the early retailers - the general stores.
Now, with their broad line of convenience and shopping products, they serve
hardware stores, drugstores, electric appliance shops, and small department stores.
6.3 Single-line (or general-line) Wholesalers: These are service wholesalers who
carry a narrower line of merchandise than general merchandise wholesalers. For
example, they might carry only food, wearing apparel, or certain types of industrial
tools or supplies. In consumer products, they serve the single- and limited-line
stores. In business products, they cover a wide geographic area and offer more
specialized service.
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6.4 Speciality Wholesalers: These are service wholesalers who carry a very
narrow range of products - and offer more information and service than other
service wholesalers. A consumer products specialty wholesaler might carry only
health foods or oriental foods instead of a full line of groceries. Or a specialty
wholesaler might carry only automotive items and sell exclusively to mass-
merchandisers. Specialty wholesalers often know a great deal about the final target
markets in their channel. For example, Advanced Marketing is the leading
wholesale supplier of books to membership warehouse clubs. The company offers
hardcover best sellers; popular paperbacks, basic reference books, cookbooks, and
travel books. Consumers in different geographic areas are interested in different
kinds of books and that affects what books will sell in a particular store.
6.5 Cash-and-Carry Wholesalers: These wholesalers operate like service
wholesalers - except that the customer must pay cash. Some retailers, such as
small auto repair shops, are too small to be served profitably by a service
wholesaler. So service wholesalers set a minimum charge - or just refuse to grant
credit to a small business that may have trouble paying its bills. Or the wholesaler
may set up a cash-and-carry department to supply the small retailer for cash on the
counter. The wholesaler can operate at lower cost because the retailers take over
many wholesaling functions. And using cash-and-carry outlets may enable the
small retailer to stay in business. These cash-and-carry operators are especially
common in less-developed nations where very small retailers handle the bulk of
retail transactions.
6.6 Drop-Shippers: These wholesalers own (take title to) the products they sell -
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but they do not actually handle, stock, or deliver them. These wholesalers are
mainly involved in selling. They get orders - from wholesalers, retailers, or other
business users - and pass these orders on to producers. Then the producer ships the
order directly to the customers. Because drop-shippers do not have to handle the
products, their operating costs are lower. Drop-shippers commonly sell products
so bulky that additional handling would be expensive and possibly damaging.
6.7 Truck Wholesalers: These wholesalers specialize in delivering products that
they stock in their own trucks. By handling perishable products in general demand
- tobacco, candy, potato chips, and salad dressings - truck wholesalers may provide
almost the same functions as full-service wholesalers. Their big advantage is that
they deliver perishable products that regular wholesalers prefer not to carry. Some
truck wholesalers operate 24 hours a day, every day - and deliver an order within
hours.
6.8 Mail-Order Wholesalers. These wholesalers sell out of catalogs that may be
distributed widely to smaller industrial customers or retailers who might not be
called on by other middlemen. These wholesalers operate in the hardware,
jewellery, sporting goods, and general merchandise lines. For example, Inmac uses
a catalog to sell a complete line of 3,000 different computer accessories and
supplies. Inmac's catalogs are printed in six languages and distributed to business
customers in the United States, Canada, the United Kingdom, Germany, Sweden,
the Netherlands, and France. Many of these customers - especially those in smaller
towns - don't have a local wholesaler.
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6.9 Producers' Cooperatives. These wholesalers operate almost as full-service
wholesalers - with the "profits" going to the cooperative's customer-members.
Cooperatives develop in agricultural markets where there are many small
producers. Examples of such organizations are Sunkist (citrus fruits), Sunmaid
Raisin Growers Association, and Land O' Lakes Creameries, Inc. Successful
producers' cooperatives emphasize sorting - to improve the quality of farm
products offered to the market. Some also brand these improved products - and
then promote the brands. For example, the California Almond Growers Exchange
has captured most of the retail market with its Blue Diamond brand.
6.10 Rack Jobbers: These wholesalers specialize in nonfood products sold
through grocery stores and supermarkets - and they often display them on their
own wire racks. Most grocers don't want to bother with reordering and
maintaining displays of nonfood items (housewares, hardware items, and books
and magazines) because they sell small quantities of so many different kinds of
products. Rack jobbers are almost service wholesalers - except that they usually
are paid cash for what is sold or delivered.
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8. KINDS OF RETAILERS
8.1 On the Basis of Ownership -
There are four basic legal forms of ownership for retailers:
8.1.1 Sole Proprietorship: - The vast majority of small businesses start out as
sole proprietorships. These firms are owned by one person, usually the individual
who has the day-to-day responsibility for running the business.
8.1.2 Partnership: - A partnership is a common format in India for carrying out
business activities (particularly trading) on a small or medium scale. In a
partnership, two or more people share ownership of a single business.
8.1.3 Joint Venture: - A joint venture is not well defined in the law. Unless
incorporated or established as a firm as evidenced by a deed, joint
ventures may be taxed like association of persons, sometimes at
maximum marginal rates. It acts like a general partnership, but is clearly
for a limited period of time or a single project.
8.1.4 Limited Liability Company (public and private): - The Limited
Liability Company (LLC) is a relatively new type of hybrid business
structure that is now permissible in most states. The owners are members,
and the duration of the LLC is usually determined when the organization
papers are filed.
8.2 On the Basis of Operational Structure -
Retail businesses are classified on the basis of their operational and
organizational structure. Operational structure defines the key strategic decision
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of retail entity, whether to hire employees and manage the distributed sales
function internally or to reach customers though franchised outlets owned and
operated by the local entrepreneurs.
Retail firms can be classified into five heads on the basis of their respective
operational structures:
8.2.1 Independent Retail Unit: - The total number of retailers in India
is estimated to be over 5 million in 2003. About 78% of these are
small family businesses utilizing only household labour. An
independent retailer owns one retail unit.
8.2.2 Retail Chain: - A chain retailer operates multiple outlets (store
units) under common ownership; it usually engages in some level
of centralized (or coordinated) purchasing and decision making.
8.2.3 Franchising: - Franchising involves a contractual arrangement
between a franchiser (which may be a manufacturer, a wholesaler,
or a service sponsor) and a retail franchisee, which allows the
franchisee to conduct a given form of business under and
establishments name and according to a given pattern of business.
8.2.4 Leased Department or Shop in Shop: - It refers to
department in a retail store that are rented to an outside party.
Usually this is done in case of department and specially stores and
also at times, in discount stores.
8.2.5 Co-operative Outlets: - Co-operative outlets are generally owned
and managed by co-operative societies. In this context the detailed
example of Kendriya Bandar in India.
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8.3 On the Basis of Location
8.3.1 Retailers in a free-standing location: - Retailers located at a site which is
not connected to other retailers depend entirely on their sores drawing power
and on the various promotional tools to attract customers. This type of location
has several advantages including no competition, low rent, and better visibility
from the road, easy parking and lower property costs. For example the
Haldirams outlet on the Delhi-Jaipur highway and the McDonalds outlet on
Delhi Ludhiana highway.
8.3.2 Retailers in a Business- associated Locations:- In this case, a retailer
locates his store in a place where a group o retail outlets, offering a
variety of merchandise, work together to attract customers to their retail
area, and also compete against each other for the same customers.
8.3.3 Retailers in Specialized Markets: - Besides the above location-based
classification, we also have in India-retailers who prefer specialized
markets, particularly traditional independent retailers or chain stores. In
India, most of the cities have specialized markets famous for a particular
product category. For example, in Chennai, Godown Street is famous for
clothes, Bunder street for stationary products, Usman Street for jewellery,
T Nagar for ready-made garments, Govindappan Naicleen street for
grocery, Poo Kadia for food and vegetables.
8.3.4 Airport Retailing: - For quite some time, duty-free shops and
newsstands dominated the small amount of commercial space provided at
airports. Lately, serious efforts are being made to design new airports
facilities in order to incorporate substantial amounts of retail space.
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9. MARKETING DECISIONS BY RETAILERS
Today, retailers are looking for new marketing strategies to attract and retain
customers. Previously, it suffices was to offer people the convenience of location,
special or unique assortment good, better than the competitor, service, and Internet
presentations credit cards that buyers can make purchases on credit. Now everything
is different. At many stores you will find quite the same range - trying to reach
maximum volume of sales, the manufacturers sell their products wherever possible.
Many stores cut its own set of services and shops reduced prices, on the contrary,
increased their number. People are not going to pay for the same or similar mark
more, especially if the amount provided in this service is reduced. Not they need a
credit card of a shop, because bank cards now accepted almost universally.
All this leads to the fact that many retailers trade today are rethinking their marketing
strategies. Example, department stores, faced with competition from specialized and
trading at a discount store, started a real war, trying to regain former popularity. Many
of them have historically located in the centre of cities, opening their offices in the
suburbs, where there is always space on the Parking, and higher income families.
Others are increasingly satisfied with the sale; rebuild their stores, experimenting with
trading by mail and tele marketing. Superstores compete with supermarkets, and so
have to open offices with a large range and variety of goods, upgrade their facilities.
Supermarkets more money spent on activities sales promotion, moving to small
private brands, to reduce its dependence on marks on a national scale.
One of the most important and most responsible decisions that have to take a retailer
associated with the target market. What customer oriented shop: high, medium, low-
income? Do buyers diversity, depth of assortment, convenience? Yet will identify and
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describe the target market, the retailer will not make informed decisions on
assortment, store environment, means and content of advertising, the price level.
Many companies do not have a specific target market. Trying meeting the needs of a
large number of different segments, they are not satisfying either one of them. Some
retailers target market determined fairly accurately.
Therefore, with the emergence of retailing sector in India retailers should periodically
conduct market studies to monitor the achievement and satisfaction targets consumers
and should adopt effective marketing strategies so as to establish its position in
market and also fulfils the needs of consumers by catering services to them.
10. TYPES OF RETAIL DISTRIBUTION OUTLETS
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10.1 Small-scale Retailers: - are those retailers whose scale of operation is restricted
to a small segment of the market and to a narrow range of products. They generally
hold small stocks of the products of regular use. Such retailers are very large in
number but account for a small portion of the total retail business. But, small-scale
retailing is a very common, simple and flexible way of distributing the products to the
final consumers. It incurs low operating costs and is usually owned and operated by a
proprietor. The most important feature is that the small-scale retailers have a direct
and personal contact with their customers. This form of retailing faces the problems of
small capital, lack of professionalism and low purchasing power.
Pic.3.Small Scale Retail Outlets
The two prevalent forms of small scale retailing in India are:-
10.1.1 Mobile Traders: - are those retailers who carry on their business by moving
from place to place for selling the products and have no fixed business premises. They
change their place of business according to their convenience and sales prospects.
They serve either at the consumer's doorsteps or on busy places frequently visited by
the customers. They do not have any particular line of business and carry very little
stock of those goods. They save time and efforts of customers in buying articles of
ordinary use. The hawkers and pedlars; cheap jacks; market traders and street sellers
fall under this category.
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Pic.4.Mobile Retailing.
10.1.2 Fixed Shop Retailers: - are those retailers which have fixed business premises
and operate through unit stores or small shops located in residential areas or markets.
They mainly include:- Street stalls: - are the small shops on the roadside, street-
crossing, bus stops, etc. They sell a limited variety of products of regular use like
stationery, grocery, etc. ; Dealers of second hand goods: - are engaged in purchase
and sale of used goods like books, clothes, etc. ; General stores or variety stores: - are
the shops which deal in all types of general consumer goods of regular use like bread,
butter, paper and pencils, etc.They are set up in residential areas or busy markets.
They provide services like goods on credit and home delivery to their customers ;
Speciality shops: - are the shops which deal in only one or two special types of goods.
They are generally located in shopping centres. For example, chemist shops, grocery
shops, readymade garments shop, sweets shop, etc.
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Pic.6. Large Scale Retailing in form of Departmental Stores
10.2.2 Supermarkets: - are large scale retail shops operating at lower costs. They sell
a wide variety of consumer goods of regular use such as food items, groceries, etc at
one place. They sell goods at lower prices than the departmental stores. Customers
select the goods themselves without salesman's assistance. It is also called self-service
stores. But, they do not provide additional facilities to their customers.
Pic.7. Retailing in supermarkets
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10.2.3 Multiple Shops or chain stores: - are a group of retail stores of the same type
under one common ownership and centralised management but are located at various
locations. All of them deal in similar range of products and sell the same standardised
products at the same terms and conditions. The goods dealt are generally meant for
everyday use and are readily acceptable to all kinds of customers. They offer goods at
lower prices as they enjoy economies of bulk buying.
Pic.8. Multiple shops or the retail chain outlets in India10.3 Mail order houses: - are those retail trading establishments which receive their
orders by mail and deliver the goods by parcel or post express. The post office is their
main channel of distribution. Orders from customers may be secured by advertising in
newspapers or journals or through telephone contacts. But this type of retailing is non-
personal and without any face-to-face contact between buyers and sellers. However, it
helps the consumers to get their requirements at their own place and thus saves their
time and expenses.
Pic.9. Mail order house retailing
10.4 Consumer cooperative stores: - are the cooperative stores which are owned and
operated by the consumers themselves. They are incorporated as an association under
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through such vending machines.
Pic.11. Vending machines
BIBLIOGRAPHY
BOOKS:
Pradhan, Swapana (2007). Retailing Management; McGraw Hills
Weitz, A Barton (2003). Retailing Management; Sage Publications Ltd.
Krafft, Manfred and Mantrala, K.Murali (2010). Current and Future Retailing
Trends; Springer Heidelberg Dordrecht; London.
John Fernie, John and Moore, Christopher (2003). Principles of Retailing;
Oxford OX2 200 Wheeler Road Burlington.
INTERNET:
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