retail env
TRANSCRIPT
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Retail environment
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content of this presentation
1. The meaning of retail and retailing
2. What is retail environment?
3. 7 Ps of retail marketing, Involvement of RE in7Ps an d explanation of the same.
4. Retail environment analysis- macro and micro
5. Retail environment audit- PEST AND SWOT
6. Major environment factors which affects RE
7. Conclusion with case study
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The meaning of retail and retailing
David gilbert-
Retail is a Any business that direct its marketing
efforts towards satisfying the final consumerbased upon the organisation of selling goods
and services as mean of distribution.
Retailing can be referred to all activity involved
in marketing and distribution of goods and
service
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What is retail environment?
Retail environment is a place where the
marketer/manufacture select a place ( market
where the product or service is launched).
It is a place where the marketer or the retailer
deliver its product or service, it can either
distribution center or a small outlet to reach
the final consumer.
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7 Ps of retail marketing
1. Product
2. Price
3. Place4. Promotion
5. People
6. Physical evidence
7. process
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Involvement of RE in 7Ps
3. Place
4.Promotion
5.Physical evidence
We will see in detail..
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Place
As stated earlier
RE is a place where product and service are
delivered. The place of delivery is calledmarket (example: reliance fresh outlets in
chennai city, here chennai is a market where
retail service are done by reliance fresh)
The marketer have to analysis the market
environment before launching the service.
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Promotion
The promotional activity includes advertising, personalselling, sales promotion, publicity, public relations etc
BUT HOW RE IS INVOLVED IN PROMOTION?
When getting bac
k tobuyer decision making process
Problem recognition
General need description
Product specification
Supplier/retail store search
Supplier/retail store selection
Performance review of retail store
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Selection of retail store with good
environment
When other things remains the same (productrange, feature, price etc)--- applicable to life timeproducts and leisure type e.g.-car, movie.
1. Consumer will prefer to go shopping mallinstead of a stand alone outlet. e.g. for watchingmovie.
2. Consumer will prefer to set and discusses the
technical feature ofcar.
By this we can assume that RE promotes salesindirectly.
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Physical evidence
Physical evidence is a environment whichincludes
1. Furnishings.
2. Colour.3. Layout.
4. Noise level and
5. Facilitating goods and tangible clues.
These factors can compared in retail outlet like GTRjewelers, Castrol bike zone, naturals unisexsaloon.
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Cont
By the previous understanding , we can
assume that store environment plays a vital
role in retail function.
Store environment management includes.
Ambience
Layout and design of the store and Geographical location.
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Retail environment analysis
Macro environments analysis
it includes political and legal
ec
onomic
sociocultural
technological
demographic
physical
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Cont.
Micro environment
it includes market
suppliers and intermediariescompetitors
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Retail environment audit
Through
- PEST analysis
- SWOT analysis
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Major environment factors
1. CHANGES RELATED TO CONSUMER
Demographicchanges- increase or
decrease in population numbers,age groups
etc.
Attitudes and preferences to
purchasing,brands and products.
Changes in life style- fastfood,telephonebanking,creditcard payments are becoming
important.
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Cont..
Economic influences based on real incomes,
number of women working etc..
2.CHANGES IN TECHNOLOGYmicrowave cookers, food freezers, the
internet, computer applications in business,
JIT delivery systems and so on
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Cont..
3.CHANGES IN COMPETITION:
The competitive strength or otherwise of
actual or alternative channels of distribution,
depending upon the nature and type of the
retail organization.
The impact of the internet is a
fundamental example of new types ofcompetition that can appear.
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2.Promotion
R.Fdoesnt involve in any tele media mode,but you can find some adds in local news
paper to reach the local customer, this adds
are not standard for all 560 retail outlet. The internal environment includes space,
design, air condition, this set up indirectly
promotes the sales when compared to retail
setup
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3.Physical evidence
Onc
e again the ambianc
e of the internal setup
And tool like(trailer, shelf etc) these tool make
the customer to pick the product.
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RELIANCE FRESH Envo ANALYSIS
MACRO ENVIRONMENT
1. Political and legal:
consumer protection, equal rights,
safetyat work, working hours, minimumwages.
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Cont..
safetyat work
1. Reliance Fresh faced the ire of theMayawatigovernment in Uttar Pradesh where 10 newly
opened shops were shut down in Lucknow2. Dr S Ramadoss [ Images ], the Pattal Makkal Katchi
leader, is spearheading the opposition to RelianceFresh on the ground that it will break the backbone
of the rural economy in the southern state.3. Some stone throwing incident in ranchi and
some parts of A.P
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Cont..
2. Economic
includes disposable income, gross domestic
produc
t, unemployment.Disposable income: India IT boom
GDP: increasing GDP
Unemployment: created a good job opportunityfor young talents.
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Cont..
3. Socioculture
includes social culture, reference group,culture and sub-culture.
Even though Indian population speak more than1600 languages and follows six major faith.The shopping habits are same and unique.
Earn now spend later - -earn now spend nowThe change of attitude among the Indian
population made RF success.
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Cont..
4.Technological
includes products, processes, production,
information handling, management.
In this aspect the customer are
connected/contacted through their cell phones,
thus information are transferred.
Service improvement in banking industry like creditcard etc, made a plat form for RF to handle
modes of payments.
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Cont..
5. Demographic
includes age, sex, martial status,
household size, geographic
loc
ation
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Micro environment
1.Market
includes segment size, behaviors, trends,
loc
ations, level of servic
e demand.
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Cont..
2. Suppliers and intermediaries
includes supply chain, avaliability,
loc
ation, geographic
c
onc
entration, volumeconcentration.
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Cont..
3.Competitors
includes, strategies, potential new
entrants, rivalry.
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END OF THE PRESENTATION