retail management -bakerstreet

8/14/2019 Retail Management -Bakerstreet

1/29

Retailingon

Consumable

& usable goods

in Dhaka City


2/29


3/29

3

Date of submission: '34**4('*5

Contents

67e8utive Summary about etailing99..999999999999999999.5

ntrodu8tion999999999999999999999999999999..-

Types of retail shop in angladesh9999999.99999999999999.-

Types of retail outlets9999999999999999..9999999999.-

Types by produ8ts999999999999999..999999999999..;

Types of retailers by marketing strategy9999999999...99999999...;

etail pri8ing99..

9999999999999999999999999999..9*'

)hallenges999999999.99999...999999999999999..*5

Sales te8hni"ues9999999999999999999999999999.*-

)ustomer Servi8e9999999999..9999999999999999....*;

etail 8hain ndustry in Dhaka )ity:

*. A$A9999999999999999999999999999.*+

(. Meena a


4/29

4

Retailing on consumable

And usable goods

In Dhaka City

About Retailing:

Retailis the sale of goods and servi8es from individuals or businesses to the end4user.

etailers are part of an integrated system 8alled the supply 8hain. A retailer pur8hases

goods orprodu8tsin large "uantities from manufa8turersdire8tly or through a =holesale,

and then sells smaller "uantities to the 8onsumerfor a profit. etailing 8an be done in

either fi7ed lo8ations like stores or markets, door4to4door or by delivery. etailing

in8ludes subordinated servi8es, su8h as delivery. The term >retailer> is also applied =here

a servi8e provider servi8es the needs of a large number of individuals, su8h as for the

publi8. Shops may be on residential streets, streets =ith fe= or no houses or in a shopping

mall. Shopping streets may be forpedestriansonly. Sometimes a shopping street has a

partial or full roof to prote8t 8ustomers from pre8ipitation. nline retailing, a type of

ele8troni8 8ommer8eused for business4to48onsumer #()& transa8tions and mail order,

are forms of non4shop retailing.

etail trade is one of the traditional businesses of angladesh. ts e7pansion is keeping

pa8e =ith population gro=th and 8hanges in 8onsumption patterns, =hi8h are 8onsistent

=ith the gro=th of the e8onomy. This e7pansion has not been stru8turally organi


5/29

5

individual or family business entity =ith a very limited s8ope of organi


6/29

6

etail stores irrespe8tive of produ8t line and relative pri8es emerge in all shape and si


7/29

7

!ard goods or durable goods #>hardline retailers>& applian8es, ele8troni8s,

furniture, sporting goods, et8. $oods that do not "ui8kly =ear out and provide

utility over time.

Soft goods or 8onsumables 8lothing, apparel, and other fabri8s. $oods that

are 8onsumed after one use or have a limited period #typi8ally under three years&

in =hi8h you may use them.

There are the following types of retailers y mar!eting strategy:

Department stores very large stores offering a huge assortment of >soft> and

>hard goods often bear a resemblan8e to a 8olle8tion of spe8ialty stores. A

retailer of su8h store 8arries variety of 8ategories and has broad assortment at

average pri8e. They offer 8onsiderable 8ustomer servi8e.

Dis8ount stores tend to offer a =ide array of produ8ts and servi8es, but they

8ompete mainly on pri8e offers e7tensive assortment of mer8handise at

affordable and 8ut4rate pri8es. 2ormally, retailers sell less fashion4oriented

brands.

1arehouse stores =arehouses that offer lo=48ost, often high4"uantity goods

piled on pallets or steel shelves =arehouse 8lubs 8harge a membership fee

Eariety stores these offer e7tremely lo=48ost goods, =ith limited sele8tion


8/29

8

Demographi8 retailers that aim at one parti8ular segment #e.g., high4end

retailers fo8using on =ealthy individuals&.

Mom4And4Pop a small retail outlet o=ned and operated by an individual or

family. Co8uses on a relatively limited and sele8tive set of produ8ts.

Spe8ialty stores a typi8al spe8ialty store gives attention to a parti8ular

8ategory and provides high level of servi8e to the 8ustomers. A pet store that

spe8iali


9/29

9

)onvenien8e stores essentially found in residential areas. They provide

limited amount of mer8handise at more than average pri8es =ith a speedy

8he8kout. This store is ideal for emergen8y and immediate pur8hases as it often

=orks =ith e7tended hours, sto8king every day

!ypermarkets provides variety and huge volumes of e78lusive mer8handise

at lo= margins. The operating 8ost is 8omparatively less than other retail

formats.

Supermarkets a self4servi8e store 8onsisting mainly of gro8ery and limited

produ8ts on non4food items. They may adopt a !i4%o or an 6D%P strategy for

pri8ing. The supermarkets 8an be any=here bet=een (',''' and -',''' s"uare

feet #5,3'' m(&. 67ample: SPA supermarket.

Malls has a range of retail shops at a single outlet. They endo= =ith

produ8ts, food and entertainment under a roof.

)ategory killers or )ategory Spe8ialist by supplying =ide assortment in a

single 8ategory for lo=er pri8es a retailer 8an >kill> that 8ategory for other

retailers. Cor fe= 8ategories, su8h as ele8troni8s, the produ8ts are displayed at

the 8entre of the store and sales person =ill be available to address 8ustomer

"ueries and give suggestions =hen re"uired. ther retail format stores are

for8ed to redu8e the pri8es if a 8ategory spe8ialist retail store is present in the

vi8inity.


10/29

!

64tailors the 8ustomer 8an shop and order through internet and the

mer8handise are dropped at the 8ustomerFs doorstep. !ere the retailers use drop

shipping te8hni"ue. They a88ept the payment for the produ8t but the 8ustomer

re8eives the produ8t dire8tly from the manufa8turer or a =holesaler. This format

is ideal for 8ustomers =ho do not =ant to travel to retail stores and are interested

in home shopping. !o=ever, it is important for the 8ustomer to be =ary about

defe8tive produ8ts and non4se8ure 8redit 8ard transa8tion. 67amples in8lude

Amamid4range> or >high end>,

depending on =hat in8ome level they target.

"ther types of retail store in#l$de:


11/29

Automated etail stores self4servi8e, roboti8 kiosks lo8ated in

airports, malls and gro8ery stores. The stores a88ept 8redit 8ards and are

usually open (-G3. 67amples in8lude HoomShops and edbo7.

ig4bo7 stores en8ompass larger department, dis8ount, general

mer8handise, and =arehouse stores.

etailers 8an opt for a format as ea8h provides different retail mi7 to its 8ustomers based

on their 8ustomer demographi8s, lifestyle and pur8hase behaviour. A good format =ill

lend a hand to display produ8ts =ell and enti8e the target 8ustomers to spa=n sales.

Retail pricing:


12/29

2

The pri8ing te8hni"ue used by most retailers is 8ost4plus pri8ing. This involves adding a

markup amount #or per8entage& to the retailerFs 8ost. Another 8ommon te8hni"ue is

suggested retail pri8ing. This simply involves 8harging the amount suggested by the

manufa8turer and usually printed on the produ8t by the manufa8turer.

n 1estern 8ountries, retail pri8es are often 8alled psy8hologi8al pri8es or odd pri8es.

ften pri8es are fi7ed and displayed on signs or labels. Alternatively, =hen pri8es are not

8learly displayed, there 8an be pri8e dis8rimination, =here the sale pri8e is dependent

upon =ho the 8ustomer is. Cor e7ample, a 8ustomer may have to pay more if the seller

determines that he or she is =illing andGor able to. Another e7ample =ould be the pra8ti8e

of dis8ounting for youths, students, or senior 8iti


13/29

3

There are several =ays in =hi8h 8onsumers 8an re8eive goods from a retailer:

)ounter servi8e, =here goods are out of rea8h of buyers and must be obtained

from the seller. This type of retail is 8ommon for small e7pensive items #e.g.

Be=elry& and 8ontrolled items like medi8ine and li"uor. t =as 8ommon before

the *0''s in the United States and is more 8ommon in 8ertain 8ountries like

ndia.

Delivery, =here goods are shipped dire8tly to 8onsumerFs homes or

=orkpla8es. Mail order from a printed 8atalog =as invented in *3-- and =as

8ommon in the late *0th and early ('th 8enturies. rdering by telephone =as

8ommon in the ('th 8entury, either from a 8atalog, ne=spaper, television

advertisement or a lo8al restaurant menu, for immediate servi8e #espe8ially for

pi


14/29

4

Digital delivery or Do=nload, =here intangible goods, su8h as musi8, film, and

ele8troni8 books and subs8riptions to maga


15/29

5

Challenges:

To a8hieve and maintain a foothold in an e7isting market, a prospe8tive retailestablishment must over8ome the follo=ing hurdles:

J egulatory barriers in8luding

estri8tions on real estate pur8hases, espe8ially as imposed by lo8al

governments and against >big4bo7> 8hain retailers

estri8tions on foreign investment in retailers, in terms of both

absolute amount of finan8ing provided and per8entage share of voting

sto8k #e.g., 8ommon sto8k& pur8hased

J Unfavorable ta7ation stru8tures, espe8ially those designed to penalibig bo7> retailers #see >egulatory> above&

J Absen8e of developed supply 8hain and integrated T management

J !igh 8ompetitiveness among e7isting market parti8ipants and resulting lo= profit

margins, 8aused in part by K

)onstant advan8es in produ8t design resulting in 8onstant threat of produ8t

obsoles8en8e and pri8e de8lines for e7isting inventory and

J %a8k of properly edu8ated andGor trained =ork for8e, often in8luding management,

8aused in part by4

%a8k of edu8ational infrastru8ture enabling prospe8tive market entrants to respond

to the above 8hallenges.


16/29

6

Sales techniques:

ehind the s8enes at retail, there is another fa8tor at =ork. )orporations and independent

store o=ners alike are al=ays trying to get the edge on their 8ompetitors. ne =ay to do

this is to hire a mer8handising solutions 8ompany to design 8ustom store displays that

=ill attra8t more 8ustomers in a 8ertain demographi8. The nationFs largest retailers spend

millions every year on in4store marketing programs that 8orrespond to seasonal and

promotional 8hanges. As produ8ts 8hange, so =ill a retail lands8ape. etailers 8an also

use fa8ing te8hni"ues to 8reate the look of a perfe8tly sto8ked store, even =hen it is not.

A destination store is one that 8ustomers =ill initiate a trip spe8ifi8ally to visit,

sometimes over a large area. These stores are often used to >an8hor> a shopping mall or

pla


17/29

7

Customer service:

)ustomer servi8e is the >sum of a8ts and elements that allo= 8onsumers to re8eive =hat

they need or desire from your retail establishment.> t is important for a sales asso8iate to

greet the 8ustomer and make himself available to help the 8ustomer find =hatever he

needs. 1hen a 8ustomer enters the store, it is important that the sales asso8iate does

everything in his po=er to make the 8ustomer feel =el8omed, important, and make sure

he leaves the store satisfied. $iving the 8ustomer full, undivided attention and helping

him find =hat he is looking for =ill 8ontribute to the 8ustomerFs satisfa8tion.L- Cor retail

store o=ners, it is e7tremely important to train yourself and your staff to provide

e78ellent 8ustomer servi8e skills. y providing e78ellent 8ustomer servi8e, you build a

good relationship =ith the 8ustomer and eventually =ill attra8t more ne= 8ustomers and

turn them into regular 8ustomers. %ooking at long term perspe8tives, e78ellent 8ustomer

skills give your retail business a good ongoing reputation and 8ompetitive advantage


18/29

8

Retail #hain %nd$stry in &ha!a 'ity:

AGORA:

The in#l$si(e $siness initiati(e:

Most suppliers of fresh produ8e to the retail se8tor in angladesh are small and medium

enterprises #SM6s&. Cor Agora, these SM6s a88ount for a third of 8urrent revenues, but

many of them la8k the 8apa8ity to gro= as the retail se8tor e7pands. n order to address

this issue, this supplier development proBe8t aims to pilot a model that 8an deliver

business development servi8es #DS& to these SM6s, =hi8h =ould in turn enable Agora

to meet in8reasing produ8t demand by strengthening e7isting trading relationships, rather

than simply in8reasing the number of suppliers, =hile also building 8apa8ity in the SM6

se8tor.

'ommer#ial dri(ers:

6stablished in (''*, Agora aims to e7pand from five outlets to fifty bet=een ('** and

('*;. Cive ne= shops =ere opened in August ('**. The resulting in8rease in demand for

high "uality, safe and sustainably4sour8ed produ8e is the main 8ommer8ial driver for

Agora. Thirty per8ent of revenue depends on supply of fresh produ8e #baked goods, fruit,

vegetables, 8hi8ken, fish and beef& from fifty one SM6s. Developing long4term

relationships =ith e7isting suppliers and in8reasing suppliers@ 8apa8ity to produ8e a

reliable and sustainable supply of fresh produ8e is 8riti8al to the e7pansion of Agora.


19/29

9

A further driver is the potential impa8t Agora 8ould have on the rest of the retail se8tor in

angladesh, in leading by e7ample, implementing best pra8ti8e and supplier 8apa8ity

building.

&e(elopment impa#ts:

Many of Agora@s suppliers are based in some of angladesh@s poorest distri8ts. The

in8reasing demand for fresh produ8e from Agora gives suppliers an opportunity to

e7pand their business. The provision of business development servi8es enables suppliers

to build their 8apa8ity to e7pand effe8tively. Su8h e7pansion 8an benefit SM6 employees

and small farmer suppliers as =ell as the SM6 se8tor more =idely. $ood pra8ti8e in

ethi8al and sustainable buying is in8luded in the support servi8es, so that suppliers 8an

benefit from stable and ethi8al pro8urement 8ontra8ts =ith SM6s, driven by the gro=th in

the retail se8tor.

n addition to the dire8t benefits to those in the Agora supply 8hain, the initiative has the

potential to en8ourage =ider se8tor developments. The in8reased implementation of best

pra8ti8es in ethi8al and sustainable buying from produ8ers and the development of DS

for SM6s, may all 8ontribute to=ards a more sustainable and in8lusive retail se8tor in

angladesh.

%nno(ation and s#ale:

The DS market to SM6s is underdeveloped in angladesh, parti8ularly in addressing

the needs of the retail se8tor. This proBe8t is innovative be8ause it 8an foster a better

understanding of the needs of this se8tor and stimulate the market for these servi8es.


20/29

2!

")e#ti(es of *a#ility engagement +"#toer 2,11-

n 8ollaboration =ith C, Agora =ill build a 8apability model for fresh produ8e suppliers

and assess the 8urrent 8apability of suppliers against this model. Agora =ill then build

8apa8ity =here needed by supporting improved pro8urement of 8apital e"uipment

me8hani


21/29

2

!!"A #A$AAR:

'ompany Re(iew:

Target )orporation, formerly Meena a


22/29

22

o$t 0eena Baar:

Meena a


23/29

23

in8reased revenues at Target due to the opening of ne= stores. 6arnings also benefited

from improved operating margins.

B$siness "$tloo!

"egative Influences on the Company:

Target )orp. announ8ed that sales for the )ompany =ere =ell belo= its plan for the

month of September and as a result, the )ompany has modestly lo=ered its near4term

e7pe8tations for sales and earnings. 2o parti8ular figures =ere provided. 1all Street

analysts on average =ere e7pe8ting the )ompany to report earnings per share of ?'.5' onrevenues of ?*'.5* billion for the third "uarter and earnings per share of ?'.33 per share

on revenues of ?*-.;( billion for the fourth "uarter, a88ording to Multe7.

%ositive Influences on the Company:

Target )orporation 8tober Sales Up 0./ Per8ent

Target )orporation today #**G3& reported that its net retail sales for the four =eeks ended

2ovember (, (''( in8reased 0./ per8ent to ?5.*-; billion from ?(./++ billion for the

four4=eek period ended 2ovember 5, (''*. )omparable4store sales in8reased *.; per8ent

from 8tober (''*.

Consistent &ividend %ayments

The fourth "uarter dividend =ill be the 8ompanyFs *-*st 8onse8utive dividend paid sin8e

8tober *0+3, =hen the 8ompany be8ame publi8ly held.


24/29

24

*$t$re &ri(ers of rowth:

)ontinuing to invest in brands and infrastru8ture K in (''* invested ?5.( billion in ne=

store 8onstru8tion, remodeling, and more sophisti8ated te8hnology and distribution

8apabilities

nnovative ne= programs K laun8hed Target Eisa 8ard K first mass4s8ale appli8ation of

smart 8ard te8hnology in the US aimed at deepening relationships =ith guests, driving

mer8handising, and in8reasing profitability.

Plan to in8rease s"uare footage by *( per 8ent in (''(. Part of this is attributable to

putting (; fully4prototype Target stores in lo8ations that =ere formerly radlees of

Montgomery 1ards. (''( plan doubles number of multi4level stores and in8ludes 5'

ne= SuperTarget lo8ations. #-'I of (''( gro=th =ill be from SuperTarget stores.&

2umerous supply 8hain initiatives: shortening inventory lead times, redu8ing 8osts,

delivering more 8onsistent in4sto8k levels, e7pediting distribution of Top *''' items,

=orking more 8ollaboratively =ith vendors, and piloting a Planning, Core8asting, and

eplenishment program.

SS $dgments for Target:

8apped Target@s sales at *5I, in line =ith histori8al earnings and 8urrent fore8asts.

They e7pe8t to gro= s"uare footage *(I in (''(. f they maintain this level in (''5 and

maintain same store sales at *.;I, this 8omes out to about *5I.

8apped earnings at *5I 4 in line =ith =hat they e7pe8t to earn this year. They believethat they =ill in8rease earnings *-./ per8ent over the long4term, but took a 8onservative

estimate.


25/29

25

&emographi#s of #ons$mer in &ha!a #ity:

Animation sho=ing urban gro=th in Dhaka, angladesh from *03( to (''*. The

animation starts =ith a global vie= over ndia using Terra4MDS 5' km. true 8olour

data. The animation then


26/29

26

The 8ity population is 8omposed of people from virtually every region of angladesh.

The long4standing inhabitants of the old 8ity are kno=n as Dhakaiya and have a

distin8tive diale8t and 8ulture. et=een *;,''' to (',''' of the ohingya, Santal, Ohasi,

$aro, )hakma and Mandi tribal peoples reside in the 8ity.L/5 Dhaka also has a largepopulation of )hinese, Oorean, ndian, urmese and 2epali e7patriates =orking in

different industries, students on SAA) s8holarship and volunteer =ork.

Most residents of Dhaka speak engali, the national language. Many distin8tive engali

diale8ts and regional languages su8h as )hittagonian and Sylheti are also spoken by

segments of the population. 6nglish is understood by a large segment of the population,espe8ially for business purposes. There is a minority Urdu4speaking population, =ho are

des8endants of displa8ed Muslims from eastern ndia during *0-3 and sought refuge in

6ast Pakistan. The 8orre8t population is ambiguous although offi8ial figures estimate at

least -',''' residents, it is estimated that there are at least 5'',''' Urdu4speakers in all

of angladesh, mostly residing in refugee 8amps in Dhaka.


27/29

27

Bangladesh prospe#ti(e in Retailing:

The retail store is a 8ash4and48arry operation. The day retailer open the store to the

publi8, they begin taking in money at 8ash register. )apital re"uirements are

8hara8teristi8ally lo=er than for either manufa8turing or =holesaling. This ease of

entry is very attra8tive and e7plains the large number of ne= stores laun8hed every

year.

)onsumers -' and older are more familiar =ith retail stores than =ith all other business

types be8ause they have shopped in stores all their lives. Qounger 8onsumers have a broader

perspe8tive on shopping, =hi8h in8orporates various ele8troni8 outlets #tele8ommuni8ations

devi8es, the internet and TE& for pur8hasing goods and servi8es.

1e 8an take a look at the demographi8 trends of angladesh lo8al market and observe

the a8tivities of 8hamber of 8ommer8e, lo8al 8ollege or university business s8hool,

referen8e librarian, and ne=spaper marketing department for reports on demographi8

trends in the 8ity. !o= are national trends refle8ted in your market areaR Are you ahead

of or behind =hat@s going onR 1at8h =hat the leaders are doing. 1hat are the masterplans for maBor edu8ational institutions, governmental agen8ies and businesses in your

8ommunityR %everage their investments to get a higher return on yours in the

marketpla8e.

1ith a gro=ing population over ;', businesses that sell =alkers, Bar openers easy4

dressing 8lothing, large4print books and other useful items for the elderly are promising.

Another gro=ing business 8aters to teenagers. Tutor 8on8epts like Sylvan %earningSystems n8. in altimore and !untington %earning )enters n8. in radell, 2e= ersey,

are t=o e7amples of early entrants in this gro=ing eld. Plato@s )loset, a unit of $ro=

i< nternational n8. in Minneapolis, sells se8ondhand designer 8lothingBust the kind

teens are looking for.


28/29

28

*WINDOWS OF OPPORTUNITY - Today, finding the right goods or servi8es and

8reatively marketing them no longer assures that a retail firm =ill gro= and prosper. Qou

must run your business =ith a 8onstant eye on the 8onsumer. Qou must have a strategi8

vie= of your business and fo8us on your positioning, 8hanging 8onsumer lifestyles,

te8hnologi8al advan8es and 8ompetitive business 8on8epts.

f all the habits of highly su88essful businesses that sell dire8tly to the 8onsumer, the

ability to assess relationships =ith the marketpla8e is perhaps the most 8ru8ial. eing able

to anti8ipate and adapt to 8onstant 8hanges in the retail environment more "ui8kly and

effe8tively than the 8ompetition is every retailer@s goal. The ability to harness the energyof 8hange is =hat separates innovative, energeti8, gro=ing, protable 8ompanies from

obsolete, stati8 failures.


29/29

29

Conclusion:

The best retailers are outgoing, verbal people =ho like to live in the fast lane. Most retail Bobs

present 8ontinual variety, meeting and mi7ing =ith people, 8reating your o=n opportunities, and

generally engaging in self4promoting a8tivities. This is a dynami8 eld that pla8es a high demand

on responding "ui8kly to 8hange, bringing diverse elements and people together, =orking

uns8heduled hours, taking reBe8tion, negotiating deals, resolving 8onfrontations, and adBusting to

periods of high and lo= a8tivity.

etailers should be people by people. ut having the gift of gab and being 8omfortable in diverse

and 8hanging 8onditions are not the only traits that 8ontribute to su88ess. 1hether you have a

store, vending ma8hine, 8atalog or servi8e, organi

retail management -bakerstreet

Documents