FRANKLYN’S RETAIL MANAGEMENT

ObjectiveRetail Industry has witnessed a phenomenal growth in our country, keeping an eye on these growing needs Franklyn’s Retail Plus Course is designed for all who are eager to know the retail industry, although many seasoned marketing and retail sales professionals will find the course useful as a way of refreshing their practice through learning in new or different ways. All are welcome to join - the only requirements are punctuality and a commitment to working with determined effort during the course. The Retail English Course is perfectly suited for young students & professionals looking to make a career in Retail Industry. It is emphasized that Retail Management concentrates on theory and interaction. Too often Retail Management staffs quit the field because they do not get what they want. Our module ensures you learn everything about a career in Retail Industry that there is to know. The approach on this course is to work hard to ensure that any technique introduced is of use in your future career.

Retail English can be exciting & joyful! It is sometimes approached as a heartless, mechanical, activity - a daily chore to be endured at all costs through gritted teeth. This is simply the wrong approach. In our course we take the middle way and integrate what might be called both "heart" and "head" practices to teach you more easily. Students will learn Retail English in the right atmosphere with proper guidance & training at each step of the way. This course has extensive theory & project work. After course completion students will be well on their way to a high profile & successful career in Retail Sales with top Indian & Multinational Companies.

We help provide a good job in retail marketing or sales management after the course for all graduating candidates with our business partners, top Indian & multinational companies. The retail marketing & retail management industry is booming and there are

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tons of good jobs to be had in all over India & Asia. We can also submit your profile for free to the topmost headhunting agencies to enable you to get a great job after the Retail English.The course incorporates discussions, case studies, assignments, interactive sessions, workshop, role-plays, and group presentations.

Syllabus:-

Overview of Retail Industry

Retail Terms Customer Service, Salesmanship skills, Counter Sales Retail Strategy Retail Communication Public Relation Retailing in India

Project Work & AssignmentsCase studies and dummy projects.

Unit 1: Overview of Retail Industry

Class: 1

Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. 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. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Online retailing, also known as e-commerce is the latest form of non-shop retailing (cf. mail order).

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Retail Industry has brought in phenomenal changes in the whole process of production, distribution and consumption of Consumer Goods all over the world. In the present world most of the developed economies are using the Retail Industry as their vital growth instrument. At present, among all the industries of U.S.A the Retail Industry holds the second place in terms of Employment Generation. In fact, the strength of the Retail Industry lies in its ability to generate large volume of employment.

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Not only U.S but also the other developed countries like U.K, Canada, France, and Germany are experiencing tremendous growth in their Retail Sectors. This boom in the Global Retail Industry was in many ways accelerated by the Liberalization of Retail Sector.

Observing this global upward trend of Retail Industry, now the developing countries like India are also planning to tap the enormous potential of the retail sector. Wal-Mart, the world's largest Retailer has been invited to India. Other popular Brands like Pantaloons, Big Bazaar; Archie’s are rapidly increasing their market share in the retail sector. According to a survey, within 5 years, the Indian Retail Industry is expected to generate 10 to 15 million jobs by direct and indirect effects. Emergence of a strong Retail Sector can contribute immensely to the economic development of any country. With a dominant retail sector, the farmers and other suppliers can sell their produce directly to the major retail companies and can ensure stable profit. On the other hand, to ensure steady supply of goods, the Retail Companies can inject cash into the production system. This whole process can result into a more efficient production and distribution system for the economy as a whole.

Typical Retail Malls.

Large Retail Stores typically sell many different types of items, such as: Alcoholic products (where provincial/state and/or local

laws allow; individual state and province control as to beer, wine,)

Baby food and products Bakery Books, newspapers, and magazines, including

supermarket tabloids Car care products CDs, DVDs, and videos (including video rentals) Confectionery Cosmetics Clothing and footwear Cereal Dairy products Diet foods

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Electrical items Feminine hygiene products Financial services (mortgages, credit cards, savings

accounts, wire transfers, etc.) Flowers Frozen foods Fruits and vegetables Greeting cards Housecleaning products Luggage Lottery tickets Meat Medicines and first aid items (mostly over-the-counter,

some supermarkets have pharmacies) Non alcoholic beverages, such as refreshments and

water Personal financial products Personal hygiene and grooming products Pet foods and products Snacks Toys

In other countries, the range of products is sometimes more narrowly focused on food products, although the ranges sold are broadening in many countries as average store sizes increase.

Unit Two Retail Terms.

Retail Acronyms

Class: 2

AR Accounts ReceivableAS/RS Automatic Storage and Retrieval SystemBPI Buying Power IndexCBD Central Business DistrictCLV Customer Lifetime ValueCOD Collect on DeliveryCRM Customer Relationship ManagementDOI Date of InvoiceCPFR Collaborative Planning, Forecasting and ReplenishmentDPP Direct Product ProfitabilityDSD Direct Store DistributionEBI Effective Buying IncomeECR Efficient Consumer ResponseEDI Electronic Data InterchangeEDLP Everyday Low PricingEOQ Economic Order QuantityGAAP Generally Accepted Accounting PrinciplesGAF General merchandise, Apparel and Furniture

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IAS International Accounting StandardsNBD Neighborhood Business DistrictOLAP On-Line Analytical Processing – OLAPOTB Open-to-BuyPIN Personal Identification NumberPM Push MoneyPOG PlanogramRFM Recency, frequency and monetary valueRDA Retail Display AllowanceROA Return on AssetsRMM Retail Merchandise Management SystemSBD Secondary Business DistrictSKU Stock Keeping UnitUPC Universal Product CodeUVM Universal Vendor Marking

B2B – Business to business e-commerce; where business partners in the supply chain usee-commerce technologies to procure goods and services from each other.B2C – Business to consumer e-commerce; where business makes its goods and servicesavailable to the end consumer through e-commerce technologies.BAM– Business activity monitoring; set of tools and applications used to monitor and modifybusiness processes and business process parameters in an automated manner in real time, inresponse to inputs received from the business environment.BI – Business intelligence; set of tools and applications used to analyse huge quantities ofcollected data in order to identify patterns useful for making business decisions.CPFR – Collaborative planning, forecasting and replenishment; technique used in the retailindustry to synchronize forecasting, planning and procurement of supplies though out thesupply chain by use of technology. The demand data travels from the stores and retail headoffice back to the supplier in an automated fashion and in near real time mode reducing needto maintain high levels of inventory and improving response time to fluctuating demands.CRM – Cutomer relationship management; software used to monitor customer behavior andaccordingly customize level of service and response to the customer.DC – Distribution centre; warehouses and centres for intermediate storage of goods procuredfrom the supplier for reasons of convenience and proximity to the distribution channel.e-Commerce – use of internet technologies to do B2B, B2C and C2C business.EDI – Electronic document interchange; integration of business process and workflowsbetween business partners through use and exchange of business document in electronic format.Enterprise portals – Website of an enterprise exposed on the intranet, extranet or the internet,containing host of features and exposing numerous enterprise applications in an unifiedinterface.EPC – Electronic product code; use of signal producing and receiving electronic gadgetsand devices to codify products in order to track their exact physical location. Often used inwarehouses and stores for tracking goods.ERP – Enterprise resources planning; enterprise level application having different functionalmodules for different organizational functions like human resources, finance, administration,marketing etc.Legacy applications – existing applications in an enterprise typically using older technologieslike mainframes, first generation client-server etc. and typically having a stovepipe architecture(lack of enterprise scale multiple application integration).OASIS – Organization for the advancement of structured information standards. It is a notfor-profit, international consortium that drives the development, convergence, and adoptionof e-business standards.PDA– Personal data assistance; handheld / mobile devices having desktop-like utility features.

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POS– Point of sale; applications and devices like scanners, printers, computers and associatedapplications used at the sales counter.Merchandise management – Planning and management of procurement and mobilizationof goods from the supplier based on the forecasted demand from the stores, DCs, or endconsumers.Real time – synchronous response or occurrence of an activity in response to an event.RFID – Radio frequency identification; use of radio frequency signals in EPCs.RTE – Real time enterprise; use of applications and architecture where an enterprise canrespond in real time to changes in the environment signifying extreme adaptability andagility.SCM – Supply chain management; enterprise applications used for streamline the businessprocess with supply chain partners.SOA – Service Oriented ArchitectureSOAP – Simple object access protocol Supply chain – the chain of the business partners in an industry where the links travelfrom upstream suppliers to downstream consumers. An element in the link could bea logical consumer of an upstream supplier and a logical supplier to a downstreamconsumer.UDDI – Univeral description, discovery and integration VAN – Value added network; special private networks operated by service providers or bythe business partners which have value added features like high reliability, security and performance.

W3C – World wide web consortium. This is an industry consortium entrusted with theresponsibility to standardize and popularize specifications for internet-related technologieslike communication and message format protocols, web services etc.WSDL – Web services description language WSRP – Web services for remote portlets.WS-I – Web services interoperability organization; industry consortiums set up to specify,standardize and popularize profiles for Web services technology in order to ensure completeinteroperability of web services across multiple platforms and languages.XML– eXtensible Markup Language;HTMLlike markup language for describing structured

data having self-decriptive capabilities through the use of extensible, customizable tags.

A Glossary of Retail Terms:

Class: 3

Bin/Display BinA large box in which products for sale are kept on the shop floor

Bricks and mortar store

A shop that is in a building as opposed to an internet shopping site, a street market stall, party sales, van sales or door-to-door sales

Buying PowerThe ability to negotiate favorable terms due to the proposition of high volume purchases

Catchments (area)The area from where the majority of a shop's customers are located

ChainAs in "chain stores". A chain is a group of stores operated under one organization or brand

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Checkout The point where customers declare and pay for their goods

Combination Store A store that combines two or more specialist product areas

Co-operativeAn organization that is jointly owned and or managed by its members and is run for the mutual benefit of members

Co-op Co-operative

Concessionaire A store within a store

Courier Shipper

Dedicated (vehicle) Delivery

A vehicle delivering to one location only

Delivery Consolidation

Collating products in order to produce appropriate delivery batches

Distance RetailingSales of goods between two distant parties where the deliverer has no direct interest in the transaction

Distributor Shipper

Downstream Distribution

Forward movement of goods through the supply chain

Dress Code Rules on what clothes can and can't be worn

Dry Grocery Generally food that is not fresh

Finished Goods Generally products that are ready to be consumed

FranchiseA trading entity such as a marketing tool or method, a product or group of products or simply a trade brand

FranchiseeThe party that sells goods and services within the framework of the franchise

Franchisor The party that established (manages) the franchise

Galvanized MetalMetal that is coated with an anti-corrosive material such as zinc

Garment CoverA protective cover for clothes, ranging from a simple polythene garment cover to a heavy duty zipped bag

Garment ProcessorThe function that receives finished clothes and steams, folds, hangs or packs them, ready for sale

General Store A shop that sells a variety of goods including food

Gondola (fixture)A free standing display fixture where all sides are accessible to customers

Haulier Shipper, A huge contractor

Hub Distribution Using a central location to collate and consolidate products

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prior to onward dispatch

Logistics The planning and execution of product distribution

Margin Profit

Merchandising The way that products are displayed in a shop

Multiple (store) Retail Chain

One-stop-shopRetail outlet that caters for virtually every need within a product or service group or across all products and services

Outlet Shop

Pallet A large flat board that is used to hold and move products

PitchA plot of land used by street traders

As in sales pitch, the approach, emphasis and nuances used when articulating the virtues of a service or product

PolyesterSynthetic polymer often used to coat household goods such as refrigerators

Polyhook BagA bag that contains a small plastic hangar as an integral part of the top of the bag

Price WarA colloquial phrase denoting aggressive price reductions on the same (or similar) products by competing retailers

Primary Packaging The immediate packaging around the finished product

Procurement Obtaining Goods

Product Offer Product's attributes, including price

Retail Chain A group of shops operated by the same organization

Reverse Logistics Reverse movement of goods through the supply chain

Sales PromotionA time-limited period when a product or group of products are given extra publicity and intense marketing

Secondary Packaging

The container in which several finished packs would be distributed (and sometimes displayed in) 

Self-ServiceA store where customers can pick the goods directly from the display and take them to the checkout for payment

Shadow Box A cabinet display built into a wall

Spot Delivery A single one-off delivery

Staple Goods Products that are regularly purchased and are a necessity

Supply ChainThe route that products take from their production through to their consumption

Tertiary Packaging The carrier for the secondary packaging

Transporter Shipper

Upper Garments Clothes worn on the upper part of the body

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Upstream Distribution

Reverse movement of goods through the supply chain

Volume The amount of stock being sold

Exercise based on Retail Vocabulary:

1. I went to Buy Lots and bought a computer on hire purchase. (a) Payment in cash

(b) Discount payment

(c) Payment plan

(d) Price increase

2. The best time to go shopping in the USA is the day after Thanksgiving, because all stores

mark down their prices.

(a) reduce

(b) boost

(c) raise

(d) hike

3. Nowadays, lots of people purchase products over the Internet.

(a) sell

(b) give away

(c) buy

(d) ship

4. It's really important to keep a receipt of the products you buy in case you need to return or

exchange them.

(a) record

(b) proof of purchase

(c) profit

(d) coupon

5. When I first moved to the USA and didn't have a bank account, I used money orders to pay

my rent.

(a) order of payment issued by a bank

(b) dollar bills

(c) personal check

(d) debit card

6. Thanks for buying at Build-a-Monster, your product will be shipped in 1 to 2 business days.

Have a nice day!

(a) received

(b) withdrawn

(c) purchased

(d) mailed

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7. My son would love to have a Buzz Light month toy for his birthday. Do you have any at your

store? — Sorry, ma'am. They are out of stock.

(a) bankrupt

(b) broken

(c) not available

(d) stacked

8. Excuse me, sir. I would like my money back on these shoes, please. They don't fit me. —

Sorry, ma'am. We can't do that.

(a) a forfeit

(b) a reimburse

(c) a fine

(d) a retain

9. Melinda bought a Plasma TV with a one year warranty.

(a) guarantee

(b) invalidation

(c) vintage

(d) release

10. Mr. Thompson only buys things that are in a sale.

(a) uneconomical

(b) priceless

(c) inexpensive

(d) overpriced

Unit 3: Customer Service, Salesmanship skills, Counter Sales

Class: 4

Effective customer handling is the most important of all. In retailing personalize training has been given to the staffs directly deal with the customers. Let’s discuss about some of the essential traits must be followed by the salespersons and other staffs.

1. Appropriate Appearance of Staff (Dress Code and the Ethics beyond)

Personal hygiene and cleanliness of staff is important for all retailers and even more so for stores selling food products or drugs. Staff in stores that sell hardware products will often wear overalls. Apart from protecting their own clothes, overalls can give the staff, and therefore the store, a professional appearance and reinforce the practical nature of their products.

Staff in a fashion store may be encouraged to wear fashionable clothes themselves. Some stores will provide clothes to staff from their own stock as a way of promoting specific items. Stores that sell information technology equipment, modern gadgets or recorded music may be encouraged to

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dress very casually so that their predominantly young market will not feel intimidated or alienated by formal dress.

Retailers that sell high value goods, or goods that are perceived as high value, may ask their staff to dress formally. Examples are high-class clothes stores and jewelers. Although rare, some of these retailers insist that customers should also dress smartly.

Dress codes will mainly apply to larger retailers. With the exception of food and drug stores, it is very common for small retailers to have no dress code at all.

Many stores will ask their management staff to wear dress that is more formal than the rest of the staff, even in some cases where staffs are being encouraged to dress fashionably or casually. This contrast may be preferred by stores that wish to make staffs appear welcoming while giving the impression that the store is run professionally and can be trusted.

Attractive Appearance (Personal Grooming)

Some retail stores will recruit staff who they perceive as being good looking. This is especially true of fashion outlets. This practice is rarely official company policy and is often a subconscious decision. Selection filtering that uses facial or bodily attributes may be considered unlawful in some jurisdictions where it could be considered as de facto discrimination on grounds of race, gender or even age.

Price Deals (Retail pricing)

The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.

In Western countries, retail prices are often so-called psychological prices or odd prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are generally either a round number or sometimes a lucky number. This creates price points.

Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons, where the retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Another example is the practice of discounting for youths or students. Price discrimination can lead to a bargaining situation often called haggling, in which the parties negotiate about the price. Retailers who are overstocked, or need to raise cash to renew stocks may resort to "Sales", where prices are "marked down", often by advertised percentages - "50% off" for example.” Sales" are often held at fixed times of the year, for example January sales, or end-of-season sales, or Blue Cross Sale

Deal-Making as a Marketing Tool

Making deals with customers, such as two for the price of one, for example, is an age-old method of retailing. Whereas deal-making has traditionally been a two-way affair between an individual

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customer and the retailer - and often still is in small retailers - it has in recent times been used as a marketing tool by the larger chains.

Class: 5

Selling Skill in Retail Industry:

Points to be discussed in this session:

Retail SalespersonsNature of the Work Working Conditions Training, Other Qualifications, and Advancement Employment Job Outlook Earnings Related Occupations Sources of Additional Information

Significant Points

Good employment opportunities are expected because of the need to replace the large number of workers who leave the occupation each year. Most salespersons work evenings and weekends, particularly during sales and other peak retail periods. Employers look for people who enjoy working with others and who have tact, patience, and an interest in sales work, a neat appearance, and the ability to communicate clearly.

Nature of the Work

Whether selling shoes, computer equipment, or automobiles, retail salespersons assist customers in finding what they are looking for and try to interest them in buying the merchandise. They describe a product’s features, demonstrate its use, or show various models and colors. For some sales jobs, particularly those involving expensive and complex items, retail salespersons need special knowledge or skills. For example, salespersons who sell automobiles must be able to explain the features of various models, the manufacturers’ specifications, the types of options and financing available, and the warranty.

Consumers spend millions of dollars every day on merchandise and often form their impression of a store by evaluating its sales force. Therefore, retailers stress the importance of providing courteous and efficient service to remain competitive. For example, when a customer wants an item that is not on the sales floor, the salesperson may check the stockroom, place a special order, or call another store to locate the item.

In addition to selling, most retail salespersons—especially those who work in department and apparel stores—make out sales checks; receive cash, checks, debit, and charge payments; bag or package purchases; and give change and receipts. Depending on the hours they work, retail salespersons may have to open or close cash registers. This work may include counting the money

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in the register; separating charge slips, coupons, and exchange vouchers; and making deposits at the cash office. Salespersons often are held responsible for the contents of their registers, and repeated shortages are cause for dismissal in many organizations.

Salespersons also may handle returns and exchanges of merchandise, wrap gifts, and keep their work areas neat. In addition, they may help stock shelves or racks, arrange for mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.

Frequently, salespersons must be aware of special sales and promotions. They also must recognize security risks and thefts and know how to handle or prevent such situations.

Working Conditions

Most salespersons in retail trade work in clean, comfortable, well-lighted stores. However, they often stand for long periods and may need supervisory approval to leave the sales floor. They also may work outdoors if they sell items such as cars, plants, or lumber yard materials.

The Monday-through-Friday, 9-to-5 workweek is the exception rather than the rule in retail trade. Most salespersons work evenings and weekends, particularly during sales and other peak retail periods. The end-of-year holiday season is the busiest time for most retailers. As a result, many employers restrict the use of vacation time to some period other than Thanksgiving through the beginning of January.

The job can be rewarding for those who enjoy working with people. Patience and courtesy are required, especially when the work is repetitious and the customers are demanding.

Training, Other Qualifications, and Advancement

There usually are no formal education requirements for this type of work, although a high school diploma or the equivalent is preferred. Employers look for people who enjoy working with others and who have the tact and patience to deal with difficult customers. Among other desirable characteristics are an interest in sales work, a neat appearance, and the ability to communicate clearly and effectively. The ability to speak more than one language may be helpful for employment in communities where people from various cultures tend to live and shop. Before hiring a salesperson, some employers may conduct a background check, especially for a job selling high-priced items.

In most small stores, an experienced employee or the proprietor instructs newly hired sales personnel in making out sales checks and operating cash registers. In large stores, training programs are more formal and are usually conducted over several days. Topics generally discussed are customer service, security, the store’s policies and procedures, and how to work a cash register. Depending on the type of product they are selling, employees may be given additional specialized training by manufacturers’ representatives. For example, those working in cosmetics receive instruction on the types of products the store has available and for whom the cosmetics would be most beneficial. Likewise, salespersons employed by motor vehicle dealers may be required to participate in training programs designed to provide information on the technical details of standard and optional equipment available on new vehicle models. Since providing the

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best possible service to customers is a high priority for many employers, employees often are given periodic training to update and refine their skills.

As salespersons gain experience and seniority, they usually move to positions of greater responsibility and may be given their choice of departments in which to work. This often means moving to areas with potentially higher earnings and commissions. The highest earnings potential usually lies in selling “big-ticket” items—such as cars, jewelry, furniture, and electronic equipment—although doing so often requires extensive knowledge of the product and an extraordinary talent for persuasion.

Opportunities for advancement vary in small stores. In some establishments, advancement is limited because one person—often the owner—does most of the managerial work. In others, some salespersons are promoted to assistant managers. Large retail businesses usually prefer to hire college graduates as management trainees, making a college education increasingly important. However, motivated and capable employees without college degrees still may advance to administrative or supervisory positions in large establishments.

Retail selling experience may be an asset when one is applying for sales positions with larger retailers or in other industries, such as financial services, wholesale trade, or manufacturing.

Employment

Retail salespersons held about 4.3 million wage and salary jobs in 2004. They worked in stores ranging from small specialty shops employing a few workers to giant department stores with hundreds of salespersons. In addition, some were self-employed representatives of direct-sales companies and mail-order houses. The largest employers of retail salespersons are department stores, clothing and clothing accessories stores, building material and garden equipment and supplies dealers, other general merchandise stores, and motor vehicle and parts dealers.

This occupation offers many opportunities for part-time work and is especially appealing to students, retirees, and others seeking to supplement their income. However, most of those selling big-ticket items work full time and have substantial experience.

Because retail stores are found in every city and town, employment is distributed geographically in much the same way as the population.

Class: 6

Job Outlook

As in the past, employment opportunities for retail salespersons are expected to be good because of the need to replace the large number of workers who transfer to other occupations or leave the labor force each year. In addition, many new jobs will be created for retail salespersons as businesses seek to expand operations and enhance customer service. Employment is expected to

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grow about as fast as average for all occupations through the year 2014, reflecting rising retail sales stemming from a growing population. Opportunities for part-time work should be abundant, and demand will be strong for temporary workers during peak selling periods, such as the end-of-year holiday season. The availability of part-time and temporary work attracts many people seeking to supplement their income.

During economic downturns, sales volumes and the resulting demand for sales workers usually decline. Purchases of costly items, such as cars, appliances, and furniture, tend to be postponed during difficult economic times. In areas of high unemployment, sales of many types of goods decline. However, because turnover among retail salespersons is high, employers often can adjust employment levels simply by not replacing all those who leave.

Despite the growing popularity of electronic commerce, Internet sales have not decreased the need for retail salespersons. Retail stores commonly use an online presence to complement their in-store sales; there are very few Internet-only apparel and specialty stores. Retail salespersons will remain important in assuring customers that they will receive specialized service and in improving customer satisfaction, something Internet services cannot do. Therefore, the impact of electronic commerce on employment of retail salespersons is expected to be minimal.

Earnings

The starting wage for many retail sales positions is the Federal minimum wage, which was $5.15 an hour in 2004. In areas where employers have difficulty attracting and retaining workers, wages tend to be higher than the legislated minimum.

Median hourly earnings of retail salespersons, including commissions, were $8.98 in May 2004. The middle 50 percent earned between $7.46 and $12.22 an hour. The lowest 10 percent earned less than $6.38, and the highest 10 percent earned more than $17.85 an hour. Median hourly earnings in the industries employing the largest numbers of retail salespersons in May 2004 were as follows:

Automobile dealers $18.61 Building material and supplies dealers 10.85 Department stores 8.47 Other general merchandise stores 8.36 Clothing stores 8.17

Compensation systems vary by type of establishment and merchandise sold. Salespersons receive hourly wages, commissions, or a combination thereof. Under a commission system, salespersons receive a percentage of the sales they make. This system offers sales workers the opportunity to increase their earnings considerably, but they may find that their earnings strongly depend on their ability to sell their product and on the ups and downs of the economy. Employers may use incentive programs such as awards, banquets, bonuses, and profit-sharing plans to promote teamwork among the sales staff.

Benefits may be limited in smaller stores, but benefits in large establishments usually are comparable to those offered by other employers. In addition, nearly all salespersons are able to

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buy their store’s merchandise at a discount, with the savings depending on the type of merchandise.

Five Mistakes commonly seen: Needs to be AVOIDED—

Mistake #1: Listening to the Wrong Messages If you say to a salesperson, ‘I want to buy your product’, chances are they heard every word of that message. But if you say to that same salesperson, "I’ve changed my mind and I don’t want to buy this product," suddenly you notice their eyes glazing over as they hear something completely different than the words that come out of the customer’s mouth.

Often we are taught in sales training to ignore objections and only listen to "hooks" or "openings" that the customer may pass along and then to go in for the close. Now does this approach work? Sure it works some of time. It has worked for hundreds of years with sales bullies. But does it work to build a long-term relationship with your customers? Hmmm, that is a good question to ask yourself if your listening skills need a tune up.

Mistake #2: Dominating a Prospective CustomerWe’ve all been manipulated or lied to by a salesperson and been turned off by this sales approach. Some sales people think they can fool prospects with charm, flattery, and dramatic appeal, but these behaviors only mask the underlying motivation behind every word of the message. When I went to buy my new car, I heard every salesperson at the dealership use those same tactics over and over again. I was shocked and appalled that this type of sales pressure still exists today in a world full of much more savvy consumers.

Mistake #3: Staying One Step AheadAnytime you are one step ahead of your prospective customer, your customer has fallen twenty steps behind you. Is that fair when you are trying to build a relationship with someone? Follow your customer’s lead and stay one step beside them if you want to build a strong bond and lasting connection.

Mistake #4: Believing You Need a Degree in Sales Some people waste too many years getting a college degree in sales and still don’t do a good job at it. Getting a degree won’t instantly make you a great salesperson. The only credentials you need for sales are the knowledge and interest in what you are selling along with the desire to help and inform others. Then when you have the opportunity to sell it over and over again, you will have the confidence and the skill to make lots of sales.

Mistake #5: Judging People Too Quickly If you feel that you may judge or size up people too quickly, stop and take another look at yourself first. Spend more time judging your abilities and journaling your sales success instead of spending time searching for your prospect’s weakness. Sure, sales people do this all them time and exploit others weaknesses to their advantage. But this is no way to build lasting relationships, get referrals, repeat business and make more sales.

Class: 7

Customer Service Traits:

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Customer Relationship Management (CRM) has become the buzz word in today’s corporate circles. At the core of customer service is the sincere desire to serve. This new culture is very effective in the Retail front as it directly addresses the customers and means for their satisfaction.The floor staffs and the counter sales staffs have to follow the basic traits that come under customer service:There are some traits of good customer service that can be easily learned.

Traits that depict good customer service

1. Friendly Greeting:A greeting is simply a basic courtesy. It shows that you are polite and are interested in making the other person feel welcome. It is the first point of contact with the customer, and should be articulated in a warm voice and with a smile.

Greet before you are greeted2. Being pro active: When you greet someone without waiting for them to do so, you are being proactive. You are taking the first step. Let’s keep in mind that the essence of Customer Service is serving. There’s no room here for ego clashes with the customer or thoughts such as; “why should I offer to help? I will wait for him to come to me!” In other words, being pro active means taking the initiatives.3. Assertion:Let’s take an example. A customer comes to you and complains about the higher rate of the products comparing to the same products in other stores and how you should give him a discount because the competitors are charging less. What can you do? There are two options: first, be a door mat and give in to his every demand and offer a discount. Second, you decline giving into his demands. Obviously the first option is out because at the representative level, you usually do not have a say on who gets a discount and who does not. Thus you have to choose the second option and say no.

A Friendly Greeting

Professionalism

A Positive Attitude

Being Pro-active

An effective listening

SelfEsteem

Rapport Building

Never say NO

Team work

Assertion

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As usual the golden rule is to bring out the positive in the situation. Remind him of the service he is getting of the benefits of having a customer of your store, and if all else fails assure him that you will pass this feed back to the senior management level and try to make him feel as you have patiently listened to his grievance. By doing all these you are being assertive. You still make your point; you still manage to say NO, but you don’t offend the customer or be discourteous in any process.

An angry customer

Agent’s possible Reactions

Assertion √ x Aggression

“While we are not in a position “Look! I already To give discount, what we can told you! Do is…..” We can’t give Discount”

4. Effective Listening:Have you had the experience of someone saying something to you while you were lost in thought of something else? And as a result, you had absolutely non idea about what had just been said and the speaker had to repeat the whole sentence!This is a simple example of what happens when you hear something but do not listen. Hearing is just a physical sensation of sound waves reaching your ears. Listening, on the other hand, is hearing with your Attention. Two ears ….one mouth… we were obviously meant To listen twice as much as we speak!

5. Establishing and building rapport:Having rapport means that you have a certain harmony with and can relate to your customer; that the two of you are on the same page. Simply put, it means you need to bond with your customer. This has more to do with striking a professional relationship with your customer; you say things to put him or her at ease and there is an easy flow of communication between the two of you. This will allow you to solve the customer’s problem and achieve customer satisfaction. Immediate rapport is established with a warm welcome and offer of assistance. Once the customer knows that you are friendly and want to assist, he or she I more likely to reciprocate and you start the interaction on a positive mode.6. Team work:

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I can’t give in to his

demands, I need to

say NO. √ He is the customer,

whatever he says is

right. I should give

him the discount.

X

Always remember that you represent a team that again showcases the organization in general. Any adverse comment against others on the same line and profile can repudiate the industry in general. Moreover the customer knows not you but the organization and any badmouthing can bring upon a loss.7. Professionalism:Entering the corporate retail world requires quite a mental gearshift. Retail industry demands certain ethics on standard of quality and professionalism. This culture is filtering into the retail arena rapidly. Integrity, being quality conscious, a good time management capacity and consideration for others are the most important factors of professionalism.

Circumstances are out of control but our reactions are not.

A real life case study of counter sales inside a retail shop.

A customer (C) walked inside a departmental store with his wife (W). They are welcomed by a nicely dressed customer associate girl (A). As they proceed towards the garments department the following conversation follows.

A: welcome to our garments store sir. You can get a variety of range of any sort of dresses as Per your choice. Could you please tell me sir what are you looking for? C: (being comfortable to see someone as a guide at hand), I see! Could you please show me Some winter jackets?A: of course sir, here you get a wide stock of jackets you can browse through them to suit your Choice. The price is displayed in the sticker with each item; you could also get a discount of Some of the products. (With simple yet pragmatic details the A helps C to know everything.)W: can you specify the latest collections out here because we are looking for something trendy Yet affordable.A: sure ma’m, there are the new collections and all are fresh lot of stocks you may like the variety of colours and new materials. (Guiding through the right place A satisfies the customers)C: yes that’s better! A & W becomes busy in selecting the jacket while A patiently watches with a caring attitude and smile)W: (Picking up one) okay this one looks good, I keep it for you C: have you checked the price I think it’s quite high.A: (if you don’t mind sir I will interrupt you a bit only to say that you get a flat 20% discount on this item and look at the brand sir, I think it will carry your personality too. Above all you should respect madam’s choice. (Maintaining a courteous nature A actually teases the ego of C. W: that’s true. (See how politely A is persuading C yet not imploring at all)C: Okay, now what about the exchange if requires?A: its very simple sir, any day you just drop in to our store and you shall get the garments replaced with new, but I believe you never have to take the hazard of this because we are Confident about the quality of our products. (Notice the assertive attitude).W: that’s fine; now tell us where the counter is? And do you accept card?A: Ma’m you can give it to me, while I do the billing you can roam around the other Departments. (Making the customers hassle free)A: here is your packet sir, you please check it once and put your signature in this bill.

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Thank you sir and please visit again. (Closing the deal)

Test of selling skill

1. When a customer objects to your price, it generally means that they have got a cheaper price elsewhere and that your

product is overpriced.True Don't Know False

2. It is a good idea to add a bit on the price for a tough customer so you can take it off again under pressure. True Don't Know False

3. Being more expensive than your opposition is often a good thing. True Don't Know False

4. To a customer, the price of a product and cost of a product are essentially the same. True Don't Know False

5. When a customer offers to pay your price less 10%, you should offer to negotiate by splitting the difference. True Don't Know False

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6. Value is what a buyer gets when they buy a product that is at a reduced price. True Don't Know False

7. Paying a higher price for a product is often the best choice.True Don't Know False

8. Attempts to persuade or influence customers will adversely affect your relationship with them. True Don't Know False

9. Your customer's view of your price often depends on your view of your price. True Don't Know False

10. The hardest products to sell are those whose price is higher than similar products sold by your competitors. True Don't Know False

Unit 4: Retail Strategy

Class: 8

Store Management and OperationsTechnology

As technology has advanced, it has been possible for some retail outlets to offer complicated price deals based on various factors such as the amount of goods purchased, or what combination of goods have been purchased. This is possible because the computer system is able to calculate the permutations that arise.The cash register is, in effect, a terminal to the main computer system and provides its operator and the customer information on the cost of the goods that are being purchased.An example of a price deal is where a store offers money off if a customer buys two packs of a given product. When the first pack’s information is entered into the terminal, the system will calculate the full price. When the second pack is entered it will automatically subtract the discount.

Décor

The way a retail outlet looks will usually inform customers and potential customers about the type of store and type of products it sells. Nowadays as the competition grows the supermarkets are running after the front look and exterior. The fashionable and attractive design pulls customers easily and increases the flow of business.

Design

A store that sells high class goods will usually have high class décor. By contrast, a store that sells basic goods may have basic décor. Retailers will typically want their stores to be different from their competitors. This distinction allows the store to offer a shopping "experience". A store offering distinct décor can score points over their competitors. This dimension is important as it reduces the burden on product versus product and price versus price competition. This ultimately feeds in to the value of the products on offer and helps to maintain margins. A balance needs to be struck

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between this need to be different with the need to make customers feel welcome. Surroundings can be distinct, innovative and even edgy but must not alienate the customer.

Frequency of Redecoration

Stores that sell fashion goods will often change their décor regularly to reflect the changing nature of their products. For some well established stores, their décor may be synonymous with their business and their product offer. Such stores may seldom change their décor or only change it in minor ways. Some stores offer a mixture of both – they may be well established and have traditional décor, but will also adapt it in order to highlight the changing fashions of their product offer.

Lighting

Food stores are usually well lit. This re-enforces an impression of hygiene and honesty. It also allows customers to read labels and signs, some of which may be legally required. The lighting in clothes and some specialist goods stores may vary across the store, according to the products being lit. Such lighting may range from soft, or even dull, to bright and occasionally colored.Very similar factors affect stores that are on the internet. For example, this online store that sells fly killers is mainly white and bright in order to symbolize hygiene.

Six ideas to capture customers and enhance your brand

1. Help associates spend more time with the customer through intelligent conversation. Instead of using traditional techniques, deploy intelligent conversational tools to engage the customers listening to you and about your product. Intelligent systems boost productivity, employee and customer satisfaction.

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2. Make your store hum by using wireless communication. Wireless technology is dramatically changing the world of retail; wireless handheld computers and mobile point-of-sale devices enable retailers to help customers in real time from wherever they are in the store. Wireless telecom is even bigger. Wireless-enabled sales associates are responsive to customer needs via faster price checks, size assistance, and location of merchandise that hasn’t made it out of the back of the store. It enables instant communication with other departments and other stores.

3. Drive faster decision-making by turning on newest training methods. Retail CIO’s routinely talk about the huge number of reports they generate or meetings they hold to help marketing and merchandise staff get the right information. Personalize training on the technological advances can enable faster decisions. The intelligent communications infrastructure can be effective instrument to covey the right information at the right time.

4. Anticipate the customer’s desire to make your store their favorite place. As your efforts to attract and retain customers become successful, your business will grow. Intelligent Communications can help to make it happen. Using voice technologies, customers who need help can quickly and easily locate assistance. If merchandise isn’t available it becomes possible to provide immediate access to the call center for order and delivery. Retailers can also leverage their knowledge of the customer to create effective push (newsletters, e-mails) and pull communications (frequent buyer programs) that can increase the stickiness of the customer-retailer relationship.

5. Enable seamless multi-channel communications. Retailers may differentiate between channels but customers don’t – they view retailers as a single integrated business. Retailers need to provide these customers with consistent pricing, promotional offers and communication. At the same time, each channel has its own unique requirements. To capitalize on the multi-channel opportunity businesses can leverage new telephony tools to drive increased demand, customer service and greater profitability across the channels.

6. Enable individual store associates to get the information they need. In some stores the person who knows the least about merchandise is the sales associate. Some retailers address this by creating phone-enabled information centers where sales associates can ask questions of the resident expert. The next step is for retailers to use integration tools to create a link between customer databases and their in-store phone system. Catalog retailers have used systems similar to this for years, and have relied on the fast turnaround they provide. This enables these same experts to also be on the floor available to customers.

Merchandising

The way that products are displayed – or “merchandised” - can have a significant affect on retail sales. For example, sales of fruit and vegetables tend to increase when displays are full and bold.

In self-service stores, staple products tend to be merchandised strategically so that customers looking for these items are required to walk past higher profit items such as luxury goods. This can often result in higher sales and higher profits.

Merchandising consists of the following elements:

- Correct strategic placement in the store- Eye-catching and appealing display

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- Appropriate point of sale support media (e.g. labels, signs)- Legal requirements satisfied

Unit 5: Retail Communication

Class: 9

Voice Conversation

Communications is not just about a integrated technique to lure the customers and look your product catchy to others. It's about changing the way you think about the power of language and its ability to make a difference in how your organization achieves its strategic objectives.

Quite simply, it is the result oriented voice based applications inside mission-critical business processes to deliver competitive advantage.

Intelligent and goal oriented selling pitch enables businesses to forge closer relationships with customers. For retailers interacting with customers and guiding them through the array of merchandises is a discipline that should be followed with calculative measures. After identifying the customer and his or her demand, the retailer steers that customer to the right advisor based on the customer's characteristics. This type of customized service helps build closer relationships with customers. Intelligent interactions can also increase employee productivity. It ensures that every sales person is gripped with the target that should be achieved to reach the incentive edge. It requires a lot of rigorous experiment on dealing with different clients coming from different strata of our society.

What is intelligent communications (relationship infrastructures) device?

Intelligent communications is the ability to link direct, real-time communication between humans when - and only when - needed to do the job. Intelligent communications is enabled by integrating voice communications into business processes to bring exact and timely service to a customer.

Picture this scenario that is common today: Customer receives an e-mail notification of their recent online purchase. Customer reviews and notices an issue. Customer must look up and then call the customer service , navigate through a series of prompts, relay the information about the order and discuss the issue for resolution. Now let’s see what happens when intelligent communications are embedded into this process: A customer who purchased online reviews his confirmation and notices an issue….the customer presses a ‘click to talk’ button. Behind the scenes, the button connects to the communication system, which identifies the need for assistance. It looks up the customers contact information and initializes a phone call between an available agent in the call center and the customer. Simultaneously, it sends the order information to the agent desktop. Now the customer and agent talk, immediately and in an informed way, improving the efficiency of the customer interaction and opening the door to enable the agent to cross-sell or up-sell the customer.

Thus, intelligent communications can really make a difference in a customer’s experience – and greatly impact whether a customer sticks with one retailer or switches to another.

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Unit 6: Public Relation.

Class: 10

Introduction to Public Relation in Retail.

Public Relation is a management function that involves monitoring and evaluating public attitudes and maintaining mutual relations and understanding between an organization and its public. Public could include shareholders, government, consumers, employees and the media. It is the act of getting along with people we constantly come in touch with. PROs ensure internal cohesion in the company by maintaining a clear communications network between the management and employees. Its first objective is to improve channels of communication and to establish new ways of setting up a two-way flow of information and understanding.

Public Relation is an integrated part of the Retail Industry because of the need to market their product, service and facilities. Public image is important to all Retail Industry as it has directly to deal with the consumer in general. The role of public relation specialist becomes pertinent in crisis situations when the correct and timely transmission of information can help save the face of the organization.

In terms of Retail , Public relations is broadly practiced for merchandise publicity, corporate publicity, to have better relations with the consumers, to publish corporate publications like newsletter, bulletins, magazines for employees and consumers etc.

How does PR work in Retail?Public relations officers have to work within and outside the organization. Within the concern they have to conduct management-employee meets, to inform organizations policies, activities and accomplishments. Outside he has to liaison with government departments, trade unions, press etc whose cooperation is required for the smooth functioning, and also have to manage complaints from the consumers, organized events like fairs, exhibitions etc. The work involves keeping management aware of public attitudes and concerns of the many groups and organizations with which they must deal.In Retail the Public relations managers evaluate advertising and promotion programs for compatibility with public relations efforts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm, and they make recommendations to enhance the firm’s image on the basis of those trends.A Retail Organization’s reputation, profitability, and even its continued existence can depend on the degree to which its targeted “publics” support its goals and policies. Public relations specialists—also referred to as communications specialists and media specialists, among other titles—serve as advocates for businesses, nonprofit associations, universities, hospitals, and other organizations, and build and maintain positive relationships with the public. As managers recognize the importance of good public relations to the success of their organizations, they increasingly rely on public relations specialists for advice on the strategy and policy of such programs.Public relations specialists handle organizational functions such as media, community, consumer, industry, and governmental relations; political campaigns; interest-group representation; conflict mediation; and employee and investor relations. They do more than “tell the organization’s story.” They must understand the attitudes and concerns of community, consumer, employee, and public

25

interest groups and establish and maintain cooperative relationships with them and with representatives from print and broadcast journalism.Public relations specialists also arrange and conduct programs to keep up contact between organization representatives and the public. For example, they set up speaking engagements and often prepare speeches for company officials. These media specialists represent employers at community projects; make film, slide, or other visual presentations at meetings and school assemblies; and plan conventions. In addition, they are responsible for preparing annual reports and writing proposals for various projects.With the upcoming trend of retailing PR gets focus and is indeed an effective tool to bring in qualitative changes in the industry.

Unit 7: Retailing in India:

Class: 11

India Retail has got airborne and the concept of organized retailing and better distribution and logistics has set in. The Indian urban consumer is also now getting hooked to this new method of home purchases that also combine into family outings and entertainment. The mall infrastructure across cities and supply chain mechanisms across the country are getting into place. India Retail seems set to grow exponentially in the next few years and the global giants are waiting at the wings for entry. The government regulation on ownership in retail is the only obstacle for international retailers. Global brands have however come in and set themselves up well.Like in most other countries, India's retail network has grown through what are called "mom-and-pop" stores, small grocery stores that are run by individuals or families and cater to their immediate neighbourhood or locality. Like in most other countries India's retail industry is slowly getting organized and corporatized and giant networks of stores are spreading themselves across the Indian landscape starting with the larger and more populated cities and towns.

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The Indian retail story of transformation began a few years ago and is rapidly spreading across the more densely populated cities and towns but still a small fraction of the total retail potential that exists. Indian regulations do not allow for foreign owned and controlled retail chains and this has held back the world's largest retailers including Wal-Mart, Tesco, Sears, Target, Krogers and others. Indian organized retail is presently being tested and built upon by a clutch of new entrepreneurs and companies and these include Pantaloon Retail, FoodWorld, Spencers, Shoppers Stop, Lifestyle, Subiksha and several other smaller players.

India's retail revolution has been driven by large expectations, a flurry of interest by Indian and international companies and a large activity in the development and operation of retail malls. These malls anchored by large stores have become home to several large international and Indian brands that are using this channel to spread themselves out across Indian cities in high-profile exclusive brand formats.Analysts expects the Indian retail growth process to take a decade since there is a large population of one billion that needs to be slowly reached and this population is spread across six hundred thousand villages. The large urban population of India is about three hundred million and spread across about a couple of hundred large cities and smaller towns. Organized retail is expected to home in on this proportion first in the next five to ten years. At present most of the large retail activity and brand building is focused on about twenty Indian cities, each of which has a population of one million.

Indian retail will slowly expand from the small dots that it represents across the Indian map and become large spots and areas over the next few years.

Indian government regulations are going through a long and meandering debate on whether or not India should allow foreign retail chains to come in and if yes, then how they need to be regulated and controlled. Most see retail as a bastion that will fully liberalize and globalize India and threaten large employment that is presently provided by the small unorganized retail network that is present all across Indian districts including the small towns and villages. The new organized format will mean a lot of change for the network, the consumers and the product vendors and this is being analyzed and considered carefully by the government. The government knows that opening up the retail sector will create a lot of changes in cultural and employment patterns as well as sound the death knell for several hundreds of thousands of small and tiny enterprises that are involved in retailing and manufacturing of products for local markets. This large change is however unlikely to be possible to stem in the long run. India will slowly open up and moderate the change but the new retailing experience that has already been sampled with great success is expected to expand slowly but surely till it covers the entire geography of the country.

Corporate Retailers plan to augment the share of modern retail from the current 4% to approximately 15%-20% in the next four years by investing more than US$25 billion.

Class : 12

India's Consumer Markets: identifying a plausible market size for products

This report is intended to assist consumer product companies in identifying a plausible market size for their product/s in India. The table below should be viewed in conjunction with the text that follows.

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India's consuming class

Table IEstimated households by annual

income

Table IIStructure of the Indian consumer market (1995-96)

Annual income (in Rupees) at 1994-95

prices

No. of households (in million)

Annual income

(in Rupees) at 1994-95 prices

Classification

Number of households (in million)

Urban Rural Total

<25,000 80.7 <16,000 Destitutes 5.3 27.7 33.0

25,001-50,000 50.4 16,001-22,000

Aspirants 7.1 36.9 44.0

50,001-77,000 19.7 22,001-45,000

Climbers 16.8 37.3 54.1

77,001-106,000 8.2 45,001-215,000

Consumers 16.6 15.9 32.5

>106,000 5.8 >215,000 The rich 0.8 0.4 1.2

Total no. of households: 164.9 million

Total no. of households 46.6 118.2 164.8

Data on income distribution of households is insufficient in determining market size for different consumer products in India. This is because of the lack of homogeneity of the consuming class and the varying prices of a single product in different parts of India. For example, vegetables generally cost more in Mumbai than in Calcutta, hence vegetable-purchasing power for identical income groups would be different in the two places even though they are the two biggest cities in India with comparable populations. In other words, purchasing power is location-specific, not income specific. Consumption habits of households are therefore better determinants of consumer market size than income distribution. Of course, other factors are also to be considered and they are detailed below.

While determining market size for a consumer product, the structure of the consuming class as seen in Table II above, can be both revealing as well as misleading depending on the kind of product. For example, any specific consuming class would be fit to be a market for consumer products like tea or soap, but a product such as vacuum cleaners would find market largely only in the "consumers" and "rich" segments of the market as defined in Table II above. Furthermore, even this may not be correct, because a taste for a vacuum cleaner is not necessarily a function of purchasing power but of culture and/or taste as well.

Identifying a plausible market size for a consumer product is therefore a hazardous task in a heterogeneous country like India. Yet, the marketer needs some data to come as close to the real picture as possible. For this purpose, it can be cautiously assumed that purchasing power is proportional to income despite variables such as location, taste etc. Companies are therefore advised to plan their consumer product marketing strategies on an area-by-area basis, rather than on an all-India basis.

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Income data is insufficient. Therefore, it must be supplemented by product-specific information regarding its existing stock in the marketplace (in the case of consumer durables) and existing rate of purchases.

It is also advisable to further refine the plausible market size by taking into account details based on social, cultural and demographic factors.

Marketing a super-premium product such as a Rolex watch is relatively easy. Just go for the income class above Rs. 106,000 per annum (in 1995-96) as per Table I above. This class, Table I shows, comprises 5.8 million households. But the problem lies in the fact that the 5.8 million households are spread all over India.

The prime market for consumer products in India is aware of the cost-benefit, or value for money, aspect. Their convept of value incorporates socio-cultural benefits in addition to product utility. For example, many households in the "consumers" class and the "rich" class (as defined Table II) may have two television sets, but both the sets may not be top-of-the-line. Thus, while they may be demand for an additional TV set in many households in the two mentioned classes, it must not be mistaken as demand for the higher priced TV models. The prime consumer market in India therefore is not a market for absolute premium products, but for something between the "high end popular brands" to the "premium brands."

The class described in the previous paragraph is actually the "consumers" class defined in  Table II. This class comprises 33.5 million households as at 1995-96 and it owned and 'consumed' most of the expensive consumer products such as refrigerators and washing machines as well as premium expendables. At 1994-95 prices, their annual household incomes ranged between Rs. 45,000 and Rs. 215,000 (to calculate the latest income statistics, use an annual inflator of 5 per cent). In addition to this class, the "climbers" and "aspirant" classes (defined in the Table II) totaling 23.9 million households in urban India, also have the socio-cultural traits of the "consumers" class and, with time, will join the consumers class. Medium-to-long-term marketing strategy must therefore aim at the aspirants and the climbers as well. This is based on the safe assumption that, except for the destitute class as defined in Table II, the other classes are on the way to the next higher class. For companies with long-term marketing plans in India, the "consumers" (urban + rural), "climbers" (urban only) and "aspirants" (urban only) classes can be clubbed together to give a market size of around 57 million households which can be said to be the "prime segment" of the Indian consumer market. This becomes even more true as consumer financing and the credit card culture picks up. Fine-tuning between the classes is of course important, as explained in the next paragraph.

Suppose you are marketing washing machines. Go for two broad types: fully automatic and semi-automatic. Target the fully automatic machines at the "consumers" class and the semi-automatic at the "aspirant" class; the "climbers" class will then overlap the market for both the types of washing machines.

All of the above may be confusing, but the marketing strategist has to live with it because that's how the Indian consumer market is in reality. There is

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hardly a characteristic that applies across the market. Hence, the term "Indian consumer market" is a misnomer: it would be more accurate to describe it as a collection of different consumer markets.

Class 13

Indian Consumer Market survey

The Indian consumer market is set to scale new heights. With an estimated ten-fold increase in the middle-class population and three-fold rise in household income, aggregate consumer spending is likely to more than quadruple from around US$ 428.69 billion in 2005 to US$ 1.76 trillion in 2025.

Simultaneously, India is likely to leap-frog from being the twelfth largest consumer market in the world to become the fifth largest consumer market in the world, says a study by McKinsey Global Institute. Significantly, over 23 million Indians-more than the population of Australia-will number among the country's wealthiest citizens.

FMCG

India's fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy. The total FMCG market is in excess of US$ 17.36 billion and is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.The Indian FMCG industry grew by 22 per cent in 2006. Food (43 per cent) and personal care (22 per cent) constitute the largest contributors to the total sales.

The fact that the per capita income has nearly doubled in a short span of four years to just under US$ 800 in 2006-07 (from around US$ 450 in 2002-03), has boosted the growth of FMCG companies. The prospect for further growth in this segment is robust as in many categories of commodities, the market penetration levels of the organised sector is still low.

In fact, the surge in consumer spending along with the changes in consumer tastes is likely to ensure high growth rates across a range of FMCG categories. For example, market research firm AC Nielsen has identified 24 categories in the personal grooming space that are growing at an average growth rate of 13 per cent. Products like perfumes, body washes and hair colours among others have all been experiencing high double-digit growth.

Consumer Durables

A combination of changing lifestyles, higher disposable income, greater product awareness and affordable pricing has been instrumental in changing the pattern and amount of consumer expenditure leading to robust growth in the consumer durables industry.

During the first six months of the current fiscal year, the industry recorded a growth rate of 13 per cent, which is higher than the 11.5 per cent growth rate for the whole of 2006-07 and 8.5 per cent growth rate for April-September 2006.

The microwave oven segment grew at a robust rate of 75 per cent as against 27 per cent in the corresponding period last year. The fully automatic washing machines market grew at the rate of 40 per cent as against 33 per cent recorded in the same period last year. While refrigerators as a whole increased by 12 per cent as against 10.3 per cent in the same period last year, frost-free refrigerators sales rose by 35 per cent.

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Similarly, while air conditioners as a whole grew by 40 per cent as against 25 per cent in the same period last year, split air conditioners grew by 80 per cent as against 58 per cent in the corresponding period last year.Significantly, rural markets, which account for about 70 per cent of population, have been growing at a higher rate of 25 per cent compared to 7-10 per cent growth rate of urban consumer retail market.

Consumer Electronics

The consumer electronics sector is estimated to grow at the rate of around 11 per cent, achieving a production level of US$ 5.04 billion during 2006-07 compared to 2005-06. The fastest growing segments during the year were colour TVs, DVD players and home theatre systems. The growth momentum has continued into the new fiscal.

Colour TV (CTV) sales grew by 15 per cent during April-September 2007 as against 14.4 per cent during the corresponding period last year. During April-June this year, overall personal computer (PC) sales rose by over 47 per cent compared to the same period last year. Within this, desktops rose by 38 per cent and notebook sales grew by 104 per cent. India recorded the world's largest sale of mobile phones during July-September this year accounting for 8.5 per cent world-wide sales, recording 15 per cent growth compared to the same period last year.iSuppli, an electronics market research firm, predicts that the Indian audio/video consumer electronics industry will grow to US$ 6.59 billion by 2011, rising at a compounded annual growth rate (CAGR) of around 10 per cent.

Automobiles

The Indian auto industry has grown at a CAGR of 14 per cent over the last five years with total domestic sales of vehicles reaching around 10.1 million vehicles in 2006-07. The growth continues in the new fiscal with cumulative growth of Passenger Vehicles sales recording 13.45 per cent during April-October 2007. Presently, India is the second largest two-wheeler market in the world, the fourth largest commercial vehicle market, the 11th largest passenger car market in the world, and is expected to be the seventh largest automobile market by 2016.

e-commerce

Thanks to the broadband revolution, more Indians are spending ever more on the web. According to a comprehensive consumer e-commerce survey conducted jointly by the Internet and Mobile Association of India [IAMAI] and IMRB, the Indian consumer internet market is estimated to grow to US$ 2.32 billion by the end of 2007-08 from US$ 1.78 billion in 2006-07, recording a growth rate of 30 per cent.

Segment-wise online travel accounted for 77.68 per cent of the total e-commerce market in 2006-07 and is expected to grow by 30 per cent this year.

In this segment, India is well placed with the growing number of credit and debit card holders. In fact, India became the largest market for Visa debit and pre-paid cards in the Asia- Pacific in 2006, accounting for 34 per cent of the total customer base in the region.

Consumer Confidence

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The Indian consumer remains the most upbeat globally. According to the AC Nielson Consumer Confidence and Opinion Survey, India has topped both the 47-nation global survey and the 14-country Asia Pacific study for the fifth time in a row. Also, the perception of Indians regarding their personal finances (90 per cent optimistic) and job prospects (94 per cent optimistic) is robust which opens attractive avenues for industries planning to tap the Indian consumer market.

Class 14A Newspaper Editorial about Retailing.

The ever expanding retailing sector

How much more can it grow, how many players can it hold? -------------------------------------------------------------------------------Retailing has reached a certain degree of specialisation in that chains of wellness shops, healthcare outlets and centres for lighting, furniture,

and even crystals have come up at various places.

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ONE-STOP-SHOP: A view of f More retail store.

The Mahindra group may be the latest to express an intent to get into the ballooning retail sector, trying to get a slice of the rapidly expanding market, especially the lifestyle segment.

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The group’s desire to enter this sector comes in the wake of an already crowded field, where both multinationals and corporate giants are trying to cater to a rapidly rising middle-class and affluent sections.

Global brands

When the Central Government began to liberalise the retail sector, multinational corporations and global brands (especially in textiles and garments) swiftly moved in to capture a new market. The global brands, which were available only to the globetrotters or business travellers, or routed through the parallel market, were now available at several shopping malls and showrooms in many of the major cities and towns.

Realising the potential in the retail segment, which was confined to the supermarket chains in the past, a host of Indian companies decided to enter the segment. After the advent of Marks and Spencer, followed by a large number of brand names, Indian giants such as Reliance, the Tatas, and the Aditya Birla group decided to try their hand in retailing. There was a mild storm when the Bharti group announced a tie-up with the famous Walmart chain to enter wholesale retailing in the country.

The dust may not have settled in this controversy, but Bharti chief Sunil Mittal remains committed to launching his retail chain by March 2008, and to get Walmart into the country by the third quarter of the year.

Reliance’s plans

While many of them have already launched operations across the country, they are also coming up with ambitious plans for the future.

Reliance Retail has specialised in virtually every segment of retail business — from books and music to fresh vegetables and groceries. It plans to open about 2,000 stores by 2011.

The Tata-Trent vehicle came up with the Star Bazaar, and this has been followed by several other bazaars and one-stop-shops. From exquisite watches and jewellery, to home décor, and jeans, a whole range of articles is now available in these shopping centres.

Retailing has reached a certain degree of specialisation in that chains of wellness shops, healthcare outlets and centres for lighting, furniture, and even crystals have come up at various places. And names such as Gautier, Fortis, and Swarovski are associated with them. In addition to the import and retailing of branded goods, the Centre has liberalised the foreign direct investment (FDI) rules in the retail sector. This may be particularly relevant to the electronics, stationery and sports goods.

Protests

These plans and expansion of the branded markets have, of course, raised an uproar in many States, especially among political parties, besides local manufacturers, artisans, retail traders and non-Government organisations. They have all raised banners of protests against what they describe as “large scale invasion of foreign brands and multinationals” into the retail sector, which not only provides millions of local jobs, but also sustains lakhs of small traders. Their fears relate mainly to two major concerns: One elimination of the existing small

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trader network and two introduction of contract farming or production that could also result in drastic reduction in the prices paid to the primary producer such as the farmer.

Mr. Sunil Mittal has taken the stand that the expanding retail sector can take both the existing network and the new high-end chains. His argument is that the chains of retails outlets, format shops, supermarkets, and hypermarkets can certainly generate more employment in the local areas. The retail segment now has a trade of about $300 billion and this could climb to $500 billion in three years.

The organised retail business, or the high-end market, could account for just about $100 billion, which meant that the bulk of the market would remain with the private retailers still in business.

But the traders argue that they will have to compete both for the produce as well as the market. Customers could prefer the well-displayed, stocked, and packaged products sold in those chains to their own premises.

At least initially, they say the chains may offer the producer a better price and the customer a more competitive price just to capture the market. So, some of them are launching special drives for customer loyalty and going in for telephonic orders, door delivery, and one-month credit too, as the competition hots up. Class 15Retail QuotationsThe god whom science recognizes must be a God of universal laws exclusively, a God who does a wholesale, not a retail business. He cannot accommodate his processes to the convenience of individuals. William James

Count not him among your friends who will retail your privacies to the world. Publilius Syrus

Most of my friends from college became dental hygienists or went into retail, a lot went into sales. They all started getting married and having kids and buying homes and I was still living like a college student. Patricia Heaton

Know how to effectively voice a complaint or make a claim at a retail store. Marilyn vos Savant

Well, there's no question that the law passed in 1996 was flawed. It deregulated the wholesale market, meaning the price that the utilities had to pay energy companies for power, but not the retail market. Gray Davis Retailing, it's always true that there is some items that I wish we had a lot more of like the iPod and there is some items I wish we had a lot less of. Lee Scott

No one in my family had a retail or marketing background. They were professionals. They didn't understand just what I was doing by going into retailing. After I started, though, it got into my blood. I knew this was what I wanted. Andrea Jung

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My brethren, when God first began to love you, He gave you all that He ever meant to give you in the lump, and eternity of time is that in which He is retailing of it out. Thomas Goodwin

Windows are as essential to office prestige as Christmas is to retailing. Enid Nemy

Retail Translations Retail in German is Kleinverkauf, Einzelhandelsabsatz, KleinverkaufRetail in Hungarian is kiskereskedelemRetail in Italian is commercio al dettaglioRetail in Spanish is venta al por menorRetail in Swedish is detaljhandelsRetail Jokes

1. A Manager of a retail clothing store is reviewing a potential employee’s application and notices that the man has never worked in retail before. He says to the man, "For a man with no experience, you are certainly asking for a high wage." "Well Sir," the applicant replies, "the work is so much harder when you don't know what you’re doing!"

2. A duck walks into a general store and asks the manager,"Gotany fresh fruit?" "No." "Got any fresh vegetables?" "No. We have only canned and dry goods." The next day, the duck returns." Got any fresh fruit?" "No." "Got any fresh vegetables?" "No. I told you yesterday, we have only canned and dry goods. If you come back tomorrow and ask me the same question, I'll nail your flippers to the floor." On the 3rd day, the duck walks in and asks,"Got any nails?" "No." "Got any fresh fruit?"

3. Reaching the end of a job interview, the Human Resources person asked a young applicant fresh out of Business School, "And what starting salary are you looking for?"

The applicant said, “$125,000 a year, depending on the benefits package."

The interviewer said, "Well, what would you say to a package of 5-weeks vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every two years - say, a red Corvette?"

The applicant sat up straight and said, "Wow! Are you kidding?"

And the interviewer replied, "Yeah, but you started it."

Retail Interview Process

Shine at interviewsThis is where the recruitment process finally moves off line - but not necessarily face to face. A growing number of retailers conduct first stage telephone interviews. It cuts back on recruitment time and is a great way of assessing how quickly you can build a rapport with customers or colleagues. It also makes sense for the growing number of retailers who have moved into home shopping and do much of their business over the phone.

Whether it's a phone interview or face to face, the same principles apply if you want to succeed:

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Do your researchFind out as much as you can about the business, its products, customers, and future plans. This is especially important if you are applying for a managerial vacancy but it is also worth the effort if you are being interviewed for a sales assistant or entry-level job. Good sources of information are corporate websites or retail trade magazines. If there is a store near you, have a good look round at what it sells and how.If you are new to retail, look at some of the trade association sites to find out more about what makes retailers tick. Try www.skillsmartretail.com or www.brc.org.uk

Create the right impressionRetailers want to recruit people who can get on with a whole range of different colleagues and customers and at all levels of the business. There are a few simple rules to help you establish a rapport within the first few minutes of the interview:Dress appropriately. Supermarket managers and supervisors look smart, which still means wearing a suit. Fashion retailers tend to wear the clothes they sell. Your dress is a great way of indicating that you understand the brand. If in doubt, concentrate on being clean and comfortable.Arrive a few minutes early and turn off your mobile phone.Be polite and friendly to everyone you meet from the security guard onwards - you can never be sure who will have an input into the selection process.Make eye contact with the interviewer as soon as you enter the room.Shake hands firmly and don't sit down before you are asked.If it's a panel interview, make an effort to address your comments to everyone.Unless you are supremely confident don't risk any retail jokes - there is every chance they've heard them all before.

Get your message acrossRetailers are looking for people with the right skills set who are going to stick with the business. Show the interviewer that you have a passion for retail and their brand in particular and have what the job requires.Wherever possible illustrate your answers with examples of how you have already dealt with an issue - preferably within work. For example, if the interviewer asks you how you would deal with a particularly dissatisfied customer, talk about when you have done that in the past.

Don't be afraid to ask questionsUse the interview to find out about the job such as the hours, who you would report to, why the job has become vacant and what opportunities there are for progression. This is another opportunity to show your enthusiasm for the job and the industry.Don't forget to ask what happens next and when you can expect to hear if you have made it through to the next stage in the selection process.

After the interview

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Interviews can be exhausting. But if you can, sit down somewhere quiet for a few minutes to think about the questions you were asked and how you might improve your answers a second time round.

If you have not heard within the time frame you expected, then ring or e-mail the recruiter. If it turns out that you haven't got the job, ask for some feedback on your performance. You put a lot of effort into an interview and good recruiters are happy to oblige. They know they may have other vacancies in the future that you might be able to fill. However, be prepared to take criticism on the chin and learn from it.

Tricky interview questions - and how to answer themDon't be put off by tricky interview questions. If you have prepared well beforehand, researched the company and the role and have thought carefully about your successes and achievements to date you should be able to handle anything.

Q. Why do you want this job?It's the natural next step for you and this is the right organisation in which to further your career. Show off your knowledge about retailing in general and this retailer in particular - make all that research worthwhile.

Q. What are your strengths?You will always be asked this in one form or another so make sure you have some succinct answers relevant to the job. An ability to handle tricky situations may be relevant for a customer service role and being a great team player will be useful for many roles in retail.

Q. You've worked for three different retailers in the past four years. How do we know you will stay with us?Don't be defensive if you have changed jobs frequently - it's fairly common in retail. Explain that great opportunities came your way to work with different brands but now you are looking for solid career opportunities.

Q. You've never worked in retail - why should we take you seriously?If you've been offered an interview the employer must think you will be useful to the organisation. Make sure you highlight any relevant any sales skills, customer service experience or knowledge of the service sector.

Class: 16

Unit 8: Project Work & Assignments: Case studies and dummy projects

1. Write a brief scenario of Retailing nowadays. What is the challenge factors work behind the growth of it?

2. Specify a few merchandise that is sold in the retail shops and discuss about the phenomenon Requires supporting the customers as well as storing staffs to have a better and fair deal.

3. What is store management? What are must do things for a smooth management?

4. What is the job opportunity in retail sector? Can it make a good career for someone?

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5. Suppose you want to hire some customer support associates for your store in a supermarket, What are the things you will look in the candidate?

6. If somebody asks you about the growth potential of retail in India what will be your answer?

7. What is PR and how it works in a retail sector?

8. Suppose you went for a survey to Pantaloons just to check out the way how CCA s manage the Customers and after a through survey for three days you are going to pen down a report based On your observation? 9. Go through the following topics and arrange them according to their priorities as it comes to a retail salesperson.

1. Customer Needs and Preferences 2. Making On-Target Recommendations3. Cross Selling and Up Selling4. Greeting the Customer 5. Establishing Rapport and Trust 6. Closing 7. Handling Customer Resistance

10. Make a conversation between you (A salesperson) and a customer who has come to Your store of cosmetics for a wedding shopping.

11. If you get a complaint from your management for not working as per the instructions what may be the probable fall outs you bring upon yourself? What are the steps you take to eradicate these problems?

12. What should be the proper etiquettes (non-technical) to be maintained while working in a retail outlet?

13. Write down the words or phrases told by your faculty and give the meaning?

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The END