retail mms

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Retail MarketingRetail Marketing

The word retail is derived from theThe word retail is derived from theFrench word retaillier means to cut aFrench word retaillier means to cut apiece off or breaking a bulkpiece off or breaking a bulk

Retailing is the process which includesRetailing is the process which includesall the activities of selling, promoting &all the activities of selling, promoting &

distributing to the end users or whodistributing to the end users or whouse the products/services for theiruse the products/services for theirpersonal usepersonal use

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Retail FormatsRetail Formats

Convenience StoreConvenience Store -- located close tolocated close toresidential areas for easy accessibilityresidential areas for easy accessibility

ExamplesExamples beverages, grocery, readybeverages, grocery, readyto eat snacks etcto eat snacks etc

BrandsBrands Reliance freshReliance fresh

Chain StoreChain Storeowned & operated as a group by aowned & operated as a group by asingle corporate organisationsingle corporate organisation

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Chain stores can be a part ofChain stores can be a part ofcorporate, cocorporate, co--operative chains oroperative chains orvoluntary chains or franchise systems.voluntary chains or franchise systems.Chain stores have diverse productsChain stores have diverse productsand fixed price shops.and fixed price shops.

ExamplesExamples clothing, books, furniture,clothing, books, furniture,footwear, jewelry , hotels etcfootwear, jewelry , hotels etc

BrandsBrands Kalaniketan, Raymond, FoodKalaniketan, Raymond, Food

world, Crossword, Liberty etcworld, Crossword, Liberty etc

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Franchise StoreFranchise Store owned and operatedowned and operatedby individuals on behalf of a licensedby individuals on behalf of a licensedby supported organisation.by supported organisation.

ExamplesExamples fast foods, watches etcfast foods, watches etc

BrandsBrands McDonald, Barista, World ofMcDonald, Barista, World of

Titan, NIITTitan, NIIT

Speciality StoreSpeciality Store having narrowhaving narrowproduct linesproduct lines

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ProductsProducts Hotels, spices, jewelry, watches,Hotels, spices, jewelry, watches,clothing etcclothing etc

BrandsBrands MTR,MTR, RaymondsRaymonds, Titan, HPCL,, Titan, HPCL,BPCL etcBPCL etc

Department StoresDepartment Stores It has severalIt has severaldepartments like personal care, clothing,departments like personal care, clothing,

cosmetics, stationery etccosmetics, stationery etc BrandsBrands Shoppers stop, Pantaloon, Ebony,Shoppers stop, Pantaloon, Ebony,

Westside etcWestside etc

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SupermarketSupermarket popular for food items, selfpopular for food items, self service groceries with wide assortment ofservice groceries with wide assortment of

merchandisemerchandise ProductsProducts FMCG, food items, cosmetics,FMCG, food items, cosmetics,

bakery, confectionery etcbakery, confectionery etc

BrandsBrands Foodworld, Nilgiris ercFoodworld, Nilgiris erc

SuperstoreSuperstore twice than the supermarkettwice than the supermarket Offers pharmacy, flower shop, bookstoreOffers pharmacy, flower shop, bookstore

under one roofunder one roof -- NilgirisNilgiris

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HypermarketHypermarket is a large retail unitis a large retail unitoffering merchandise at low prices,offering merchandise at low prices,comprehensive range of merchandisecomprehensive range of merchandise

BrandsBrands Big Bazaar, RPGBig Bazaar, RPG Giant,Giant,

USPUSP Badaa Choice Chota PriceBadaa Choice Chota Price

Shopping MallShopping Mall arrangement of retailarrangement of retailstores providing right mix of shopping,stores providing right mix of shopping,entertainmententertainment R Mall, WoodmallR Mall, Woodmall

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Shopping centre or PlazaShopping centre or Plaza stores in astores in asingle buildingsingle building electronics, leather,electronics, leather,

footwear etcfootwear etc Discount storeDiscount store broad variety ofbroad variety of

merchandise at flexible pricingmerchandise at flexible pricing

BrandsBrands SS KumarKumar Factory/Seconds outletFactory/Seconds outlet operated byoperated by

manufacturers & sell discountedmanufacturers & sell discountedmerchandisemerchandise

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KioskKiosk Concession format store with openConcession format store with openstanding pavilion, open in one/more sides instanding pavilion, open in one/more sides in

airport, public placesairport, public places Kiosk is aKiosk is a multishoppingmultishopping centrecentre

MBOsMBOs ::

Multi Brand outlets, also known asMulti Brand outlets, also known as

Category Killers, offer several brands acrossCategory Killers, offer several brands acrossa single product category. These usually doa single product category. These usually dowell in busy market places and Metros. It iswell in busy market places and Metros. It isa very large specialty storea very large specialty store

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Functions of RetailingFunctions of Retailing

1. Capturing the service requirements1. Capturing the service requirements

2. Bulk breaking2. Bulk breaking

3. Spatial Convenience3. Spatial Convenience 4. Waiting Time4. Waiting Time

5. Assortment5. Assortment

6. Physical Possession6. Physical Possession

7. Ownership7. Ownership

8. Promotion8. Promotion

9. Ne otiatin9. Ne otiatin

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10. Financing10. Financing

11. Risk taking11. Risk taking

12. Service12. Service--backupbackup

13. Coverage13. Coverage

14. Assembling

14. Assembling

15. Fulfillment15. Fulfillment

16. Sequencing16. Sequencing

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17. Merchandising17. Merchandising

18. Standardization18. Standardization

19.19. RoutinizationRoutinization

20. Sorting20. Sorting

21. Specialization2

1. Specialization

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Functions of RetailingFunctions of Retailing 1.1. Capturing the customer requirementsCapturing the customer requirements

Capturing the service requirementsCapturing the service requirementsdeals withdeals with minimisingminimising the gaps in thethe gaps in the

service deliveryservice delivery 2.2. Bulk BreakingBulk Breaking

Bulk Breaking is the process whereinBulk Breaking is the process wherein

the goods that are manufactured inthe goods that are manufactured inlarge volumes are broken into smallerlarge volumes are broken into smallerunits at different locations which areunits at different locations which areconsumed by the end consumersconsumed by the end consumers

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3.3. Spatial ConvenienceSpatial Convenience

Spatial convenience is defined as theSpatial convenience is defined as theextent of convenience offered by aextent of convenience offered by achannel in terms of the distance that achannel in terms of the distance that acustomer has to travel before availingcustomer has to travel before availingof the services of the channelof the services of the channel

4.4. Waiting timeWaiting time Waiting time is the time that aWaiting time is the time that a

customer has to spend before availingcustomer has to spend before availing

of the services of the channel.of the services of the channel.

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The waiting time or tolerance levelThe waiting time or tolerance leveldepends on the product characteristics,depends on the product characteristics,

purchase occasion etcpurchase occasion etc 5.5. AssortmentAssortment

Assortment is the service whichAssortment is the service which

involves making the products availableinvolves making the products availableat one place that are to boughtat one place that are to boughttogether. Assortment indicates thetogether. Assortment indicates theassociation or group of productsassociation or group of products

purchased by the consumer at a time.purchased by the consumer at a time.

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Assortment reduces the shopping time.Assortment reduces the shopping time.It is a joint need fulfillment processIt is a joint need fulfillment processassociated with several productassociated with several productcategories.categories. It evaluatesIt evaluates all differentall differentproducts available with inproducts available with in--depth productdepth productmixmix

6.6. Physical PossessionPhysical Possession It involves the transportation andIt involves the transportation and

storage of the product in order tostorage of the product in order to

physically deliver the product to endphysically deliver the product to end

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7.7. OwnershipOwnership

Takes the title of the product for anyTakes the title of the product for any

damage or lossdamage or loss 8.8. PromotionPromotion advertising, salesadvertising, sales

promotion, displaying, demonstratingpromotion, displaying, demonstrating

etcetc 9.9. NegotiatingNegotiating

Coming to the agreement about theComing to the agreement about the

terms of trade and price fixationterms of trade and price fixation

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10.10. FinancingFinancing

It involves in financing the inventoriesIt involves in financing the inventoriesof the manufacturer and otherof the manufacturer and otherfinancial requirements of thefinancial requirements of theconsumer also.consumer also.

11.11. Risk takingRisk taking

It involves in the assurance of damageIt involves in the assurance of damageor any loss of product/serviceor any loss of product/service

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12.12. Service backupService backup Pre, post, afterPre, post, aftersales servicesales service

13.13. CoverageCoverage

It is the intensity to which theIt is the intensity to which thechannels penetrate in delivering thechannels penetrate in delivering the

goods/services to different types ofgoods/services to different types ofconsumersconsumers

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Types of coverageTypes of coverage a.a. Intensive distributionIntensive distribution stocking thestocking the

products in numerous outlets. Itproducts in numerous outlets. Itpromotes impulsive buyingpromotes impulsive buying

Ex : FMCG, groceries etcEx : FMCG, groceries etc

b.b. Selective DistributionSelective Distribution falls betweenfalls betweenintensive & exclusive distribution. Itintensive & exclusive distribution. Itstocksstocks specialisedspecialised productsproducts

Ex : electronic goods & home appliancesEx : electronic goods & home appliances

Few channels were utilized in servingFew channels were utilized in serving

consumersconsumers

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c. Exclusive distributionc. Exclusive distribution -- It allows onlyIt allows onlycertain dealers to carry companycertain dealers to carry companyproductsproducts

Ex :Plant & machinery, electricalEx :Plant & machinery, electricalappliances, automobiles etcappliances, automobiles etc

Exclusive distribution reducesExclusive distribution reduces

purchaser power to negotiate thepurchaser power to negotiate theprices. Brand loyalty is highprices. Brand loyalty is high

It utilizes one retailer or industrialIt utilizes one retailer or industrial

distributor in a geographical areadistributor in a geographical area

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14.14. AssemblingAssembling

It is a process of modifying theIt is a process of modifying the

products on the basis of customersproducts on the basis of customersspecificationspecification

15.15. FulfillmentFulfillment It takes customerIt takes customer

orders and provides specialized productorders and provides specialized productshipment as value added serviceshipment as value added service

16.16. SequencingSequencing arrange products inarrange products inspecialized way as value added servicespecialized way as value added service

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17.17. MerchandisingMerchandising it works at pointit works at pointof sale to increase appeal of productof sale to increase appeal of productassortmentassortment

18.18. StandardizationStandardization it is theit is thedevelopment of high quality uniformdevelopment of high quality uniformproducts & servicesproducts & services

19.19. RoutinizationRoutinization it relates to rulesit relates to rulesand procedures used to guideand procedures used to guidefunctionalfunctional performance ofperformance of a channela channel--

i.e., selling, buying, transportation etci.e., selling, buying, transportation etc

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20.20. SortingSorting it is a process thatit is a process thatchannel members perform to developchannel members perform to develop

unique product assortments.unique product assortments.

21.21. SpecializationSpecialization It createsIt createseconomic opportunity and help toeconomic opportunity and help to

project themselves as logisticproject themselves as logisticspecialists to offer unique services tospecialists to offer unique services tomanufacturers.manufacturers.

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Trends of RetailingTrends of Retailing

Factors influencing retailingFactors influencing retailing Retail is the only business where oneRetail is the only business where one

buys in credit and sells for cash.buys in credit and sells for cash.

Retail bridges both manufacturer andRetail bridges both manufacturer andconsumerconsumer

The evolution of retail in IndiaThe evolution of retail in India

Haats ( called as periodic markets inHaats ( called as periodic markets inrural areas). Haats facilitate hugerural areas). Haats facilitate hugegathering of buyers in fixed time andgathering of buyers in fixed time and

fixed locationfixed location

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Factors influencing retailingFactors influencing retailing Melas ( commodity to religious fairs)Melas ( commodity to religious fairs)

Mandis ( markets set up by stateMandis ( markets set up by stategovernment for sale of agriculturalgovernment for sale of agriculturalproduce directly)produce directly)

Traditional formatsTraditional formats salesman, haats,salesman, haats,

mandis, melas etc)mandis, melas etc)

Established formatsEstablished formats Kirana shops,Kirana shops,convenience, department stores,convenience, department stores,

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Factors influencing retailingFactors influencing retailing The factors like quality, choice, consistency,The factors like quality, choice, consistency,

convenience, service, less money, time,convenience, service, less money, time,

effort etc rise to the empowerment of theeffort etc rise to the empowerment of theconsumersconsumers

Retail as a careerRetail as a career

Buying & merchandising, marketing, storeBuying & merchandising, marketing, storeoperations, sales, finance, HR, Visualoperations, sales, finance, HR, VisualMerchandising, Category Management, SCMMerchandising, Category Management, SCM& Logistics are some of the functional areas& Logistics are some of the functional areasin retailingin retailing

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Factors influencing retailingFactors influencing retailing Liberalization, globalization are some of theLiberalization, globalization are some of the

economic policies of the governmenteconomic policies of the government

necessitated the growth of retailingnecessitated the growth of retailing The factors consumer pull, explosion ofThe factors consumer pull, explosion of

media, changes in consumer behaviour withmedia, changes in consumer behaviour withHigher & middle income, working classHigher & middle income, working class

developed retail buying behaviourdeveloped retail buying behaviour Due to the shopping attitudes changing,Due to the shopping attitudes changing,

Indian market today designs valueIndian market today designs value--addedadded

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Factors influencing retailingFactors influencing retailingproducts with good audience & brandsproducts with good audience & brands

Fast growing technology change theFast growing technology change theshoppingshopping behaviourbehaviour of the consumerof the consumer

ComputerisationComputerisation of operations in aof operations in aretail store including inventoryretail store including inventory

management, billing & payments,management, billing & payments,widespread use of MIS, teleshoppingwidespread use of MIS, teleshopping& net shopping etc are some of the& net shopping etc are some of the

technological changestechnological changes

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Factors influencing retailingFactors influencing retailing The trends of retailing can be explained inThe trends of retailing can be explained in

four gear pathfour gear path

First gear pathFirst gear path introduction stageintroduction stage Most of the business done in the form ofMost of the business done in the form of

kriranakrirana shops, department storesshops, department stores

The concept super bazaar emerged inThe concept super bazaar emerged in1960s1960s

The retailers likeThe retailers like VivekVivek && VasanthVasanth ,, RahejaRaheja,,bombaybombay dyeing started their operationsdyeing started their operations

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Factors influencing retailingFactors influencing retailing Second gearSecond gear Growth stageGrowth stage

In this stage the buyers were exposed toIn this stage the buyers were exposed to

new retail formats like shoppers stop,new retail formats like shoppers stop,subhikshasubhiksha,, foodworldfoodworld,, westsidewestside , lifestyle,, lifestyle,Barista in coffee,Barista in coffee, McdonaldMcdonald ,, apolloapollopharmacy etcpharmacy etc

Several factors like convenient timings, freeSeveral factors like convenient timings, freeparking, dialparking, dial nn order, provision for freeorder, provision for freetrial & taste, price below MRP, free hometrial & taste, price below MRP, free homedelivery enhanced the shopping experiencedelivery enhanced the shopping experience

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Factors influencing retailingFactors influencing retailing Third gearThird gear Promotional PhasePromotional Phase This stage involves officeThis stage involves office back endback end

managementmanagement Visual merchandising, categoryVisual merchandising, category

management, supply chain management aremanagement, supply chain management aresome of the marketing strategiessome of the marketing strategies

The entry of retailers from metros to nonThe entry of retailers from metros to non

metrosmetros Profitability through heavy investment inProfitability through heavy investment in

back end managementback end management

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Factors influencing retailingFactors influencing retailing Fourth gearFourth gear Consolidation phaseConsolidation phase

The major retailers of US, EuropeThe major retailers of US, Europelooking for cross border movementlooking for cross border movement

Consolidation of retailing in ruralConsolidation of retailing in ruralsectorsector

This phase upgraded the consumersThis phase upgraded the consumersfrom product based shopping tofrom product based shopping toexperience based shoppingexperience based shopping

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Factors influencing retailingFactors influencing retailing Other trends in RetailingOther trends in Retailing

a.a. Retail Banking in IndiaRetail Banking in India

The development of advancedThe development of advancedtechnology enabled banks intechnology enabled banks inmultilocationsmultilocations based on the principlebased on the principle

Anytime Anywhere, AnyhowAnytime Anywhere, Anyhow

HDFC is the first bank in India to offerHDFC is the first bank in India to offeronon--line transactionsline transactions

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Factors influencing retailingFactors influencing retailing ICICI is one of the leading privateICICI is one of the leading private

bank in India conducted ebank in India conducted e--banking.banking.

SBI invested 500 crores toSBI invested 500 crores tointerconnect its branches throughoutinterconnect its branches throughoutthe country.the country.

Bankers rarely think of their branchesBankers rarely think of their branchesas retail storesas retail stores

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Factors influencing retailingFactors influencing retailing b)b) AVMs in RetailingAVMs in Retailing

Automated retailing (AVM) dispenseAutomated retailing (AVM) dispense

beverages, confectionery, icebeverages, confectionery, ice--creamcreametcetc

In Japan AVMs dispensed jewelry,In Japan AVMs dispensed jewelry,

spectacles, food items, flowers,spectacles, food items, flowers,beverages etcbeverages etc

AVMs are found in company corporateAVMs are found in company corporateoffices, retail stores, petrol pumps,offices, retail stores, petrol pumps,

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Factors influencing retailingFactors influencing retailingHotels, restaurants, airports and all theHotels, restaurants, airports and all the

public placespublic places

AVMs act as a silent salesman whichAVMs act as a silent salesman whichprovide round the clock serviceprovide round the clock service

AVMs are one of the effectiveAVMs are one of the effective

distribution points to promote theirdistribution points to promote theirproducts to the end user and alsoproducts to the end user and alsoincreases brand recognitionincreases brand recognition

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Factors influencing retailingFactors influencing retailing c)c) Innovative retailingInnovative retailing

Bharat petroleum pioneered theBharat petroleum pioneered theconcept of convenience stores atconcept of convenience stores atselect petrol pumps that operateselect petrol pumps that operateunder name Bazaar. These Bazaarunder name Bazaar. These Bazaar

provide a wide range of convenienceprovide a wide range of convenienceitems in a clean, airitems in a clean, air--conditioned andconditioned andfriendly environmentfriendly environment

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Factors influencing retailingFactors influencing retailing BharatPetroleum has popularised inBharatPetroleum has popularised in

nonnon--fuel front also. It has introducedfuel front also. It has introduced

the Errand mail concept called asthe Errand mail concept called as

In & Out . These malls offer broadIn & Out . These malls offer broadrange of services like ATM, cybercafe,range of services like ATM, cybercafe,

fast food, greeting cards etc whichfast food, greeting cards etc whichmade a rewarding experience formade a rewarding experience formotorists.motorists.

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Factors influencing retailingFactors influencing retailing d) Pantaloons Big Bazaard) Pantaloons Big Bazaar

(Hypermarket) is competing from a(Hypermarket) is competing from a

street seller to premium outletstreet seller to premium outlet The USP is (there is something forThe USP is (there is something for

everyone)everyone)

It offers distinct services likeP

arking,It offers distinct services likeP

arking,trolley system, convenience to thetrolley system, convenience to theconsumerconsumer

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Factors influencing retailingFactors influencing retailing f) Margin Free Markets is the largestf) Margin Free Markets is the largest

retail chain in the state ofretail chain in the state of keralakerala andand

one of the leading retail chains inone of the leading retail chains inIndia.India.

The outlets are franchises and areThe outlets are franchises and are

controlled by The Consumercontrolled by The ConsumerProtection and Guidance SocietyProtection and Guidance Society

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Factors influencing retailingFactors influencing retailing Margin Free outlets are typicalMargin Free outlets are typical

discount stores offering onediscount stores offering one--stopstop

shopping experience with grocery,shopping experience with grocery,food,fmcg,fruits & vegetables etcfood,fmcg,fruits & vegetables etc

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Retail EconomiesRetail Economies

Retail economies are the factors andRetail economies are the factors andfunctions that can enhance economic valuefunctions that can enhance economic value

Bulk breakingBulk breaking process where buyers buyprocess where buyers buygoods in large quantities and break themgoods in large quantities and break theminto smaller sizes for individual customersinto smaller sizes for individual customers

As a result purchases become convenientAs a result purchases become convenient

for customerfor customer

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AssortmentAssortment evaluates all differentevaluates all differentproducts available with inproducts available with in--depthdepth

product mix. It facilitates Oneproduct mix. It facilitates One--StopStopshopping experience.shopping experience.

StoringStoring stocking goods untilstocking goods until

customers are willingness to buy & usecustomers are willingness to buy & usethem. Anticipating the customer needsthem. Anticipating the customer needsin advancein advance

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Economic utilityEconomic utility providing theproviding theproducts in the form at right place andproducts in the form at right place and

at right timeat right time one stop shoppingone stop shoppingexperienceexperience

Economic growthEconomic growth create andcreate and

generate employment opportunitiesgenerate employment opportunities Outsourcing opportunitiesOutsourcing opportunities

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Production cycleProduction cycle retailers smoothenretailers smoothenproduction cycle by placing orders forproduction cycle by placing orders for

peak demands well in advance andpeak demands well in advance andmanage inventory on behalf ofmanage inventory on behalf ofmanufacturersmanufacturers

**NoteNote :: Include all the functions ofInclude all the functions ofretailingretailing

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Retail Marketing MixRetail Marketing Mix

The variables of the retail marketing mix areThe variables of the retail marketing mix are

ProductProduct

PricePrice

PlacePlace

PromotionPromotion

PresentationPresentation peoplepeople

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ProductProduct type of products, producttype of products, productmix, product positioning, productmix, product positioning, product

differentiationdifferentiation Product planningProduct planning Branding,Branding,

packaging & labelingpackaging & labeling

Position of the product in PLCPosition of the product in PLC

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PricePrice objectives, price mixobjectives, price mix

PlacePlace location of the store & its typelocation of the store & its type

of format, supply chain management,of format, supply chain management,logistics etclogistics etc

PromotionPromotion advertising, salesadvertising, salespromotion, personal selling & publicitypromotion, personal selling & publicity

PresentationPresentation visual merchandising,visual merchandising,Category managementCategory management

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Visual merchandising is the process ofVisual merchandising is the process ofselling the goods by displays & presentation.selling the goods by displays & presentation.

Visual merchandising circulates theVisual merchandising circulates thecustomers in to the store.customers in to the store.

Positioning the store imagePositioning the store image

Sell variety of merchandiseSell variety of merchandise

Category managementCategory management goods in agoods in acategory are displayed and sold togethercategory are displayed and sold together

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PeoplePeople to serve customers &to serve customers &employees.employees.

-- Employees should be trained andEmployees should be trained andmotivated for designing strategiesmotivated for designing strategies

-- Through CRM, the company canThrough CRM, the company can

attract customersattract customers

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Retail Marketing StrategyRetail Marketing Strategy

The main objectives of MarketingThe main objectives of MarketingStrategy isStrategy is

1) To design the marketing1) To design the marketingprogrammesprogrammes

2) To2) To provide valueprovide value--added services toadded services to

the customerthe customer

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Steps in retail marketingSteps in retail marketing

strategystrategy Develop Mission statementDevelop Mission statement

Establish objectivesEstablish objectives

Conduct situational analysisConduct situational analysis

Formulate market developmentFormulate market developmentstrategiesstrategies

Estimate the market attractivenessEstimate the market attractiveness

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strategystrategy Implementing the strategyImplementing the strategy

Evaluating the strategyEvaluating the strategy

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strategystrategy Develop Mission statementDevelop Mission statement

The mission statement of the retailThe mission statement of the retail

organization focus on the followingorganization focus on the followingdimensionsdimensions

a) defines the scope of the businessa) defines the scope of the business

b) defines the statement of existenceb) defines the statement of existence

c) who are the target customers?c) who are the target customers?

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strategystrategy d) what are the growth plans?d) what are the growth plans?

e) what are the levels ofe) what are the levels of

products/services to be offeredproducts/services to be offered

f) what are the attributes forf) what are the attributes forcompetitive advantage?competitive advantage?

g) what is the delivering value to theg) what is the delivering value to thecustomers?customers?

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strategystrategy Establish objectivesEstablish objectives

The objectives may be short term andThe objectives may be short term and

long termlong term

Conduct situational analysisConduct situational analysis

Swot analysis is conducted to identifySwot analysis is conducted to identify

the strategic alternativesthe strategic alternatives

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strategystrategy Formulate market developmentFormulate market development

strategiesstrategies

Market development involves theMarket development involves thefollowingfollowing

Segmentation , Targeting, Positioning,Segmentation , Targeting, Positioning,

DifferentiationDifferentiation Decide on the type of retail formatDecide on the type of retail format

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strategystrategy Decide on the retail marketing mixDecide on the retail marketing mix

Other market development strategiesOther market development strategies

a) Expansiona) Expansion b) Diversificationb) Diversification

c) Lowc) Low-- end strategyend strategy low rentallow rental

shoppingshopping d) Highd) High end strategyend strategy high rentalhigh rental

shoppingshopping

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strategystrategy e) Shortgun merchandisinge) Shortgun merchandising

concentrating on the mass marketconcentrating on the mass market

f) Rifle merchandisingf) Rifle merchandising concentratingconcentratingon the affluent customerson the affluent customers

g) Scrambled Merchandisingg) Scrambled Merchandising retailerretailer

adds products/services that areadds products/services that areunrelated to each otherunrelated to each other

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strategystrategy Estimate the market attractivenessEstimate the market attractiveness

It involves measuring the marketIt involves measuring the market

potentialpotential sales, profits, competitorssales, profits, competitors Implementing the strategyImplementing the strategy

It estimates the critical path in relationIt estimates the critical path in relation

to the operation plans. Theto the operation plans. Theimplementation should be customerimplementation should be customercentric rather than firm centriccentric rather than firm centric

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strategystrategy Evaluating the strategyEvaluating the strategy

Forecasting the salesForecasting the sales

Feedback from customers, salesmanFeedback from customers, salesman

Measuring the brand equity ,Measuring the brand equity ,distribution equitydistribution equity

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Retail Advertising & SalesRetail Advertising & Sales

promotionpromotion Retail AdvertisingRetail Advertising -- The critical factorsThe critical factors

to be considered in the retailto be considered in the retail

advertising areadvertising are 1) The objective of the retail1) The objective of the retail

advertising should be building longadvertising should be building longterm brand image of the storeterm brand image of the store

2) the message should be clear what2) the message should be clear whatit wants to communicateit wants to communicate

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Retail AdvertisingRetail Advertising

3) The retailer should determine the3) The retailer should determine thetype of format and type of products ittype of format and type of products it

want to offer for developing thewant to offer for developing theadvertising strategyadvertising strategy

4) The retailer should ensure that the4) The retailer should ensure that thechannel conveys the right messagechannel conveys the right message

5) Codify the message by using signs,5) Codify the message by using signs,symbols, actions etcsymbols, actions etc

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6) Supporting sales promotional6) Supporting sales promotionalschemes run by the store throughschemes run by the store through

advertisingadvertising 7) creating the demand for private7) creating the demand for private

labels through advertisinglabels through advertising

8) facilitating the job of salesforce8) facilitating the job of salesforce

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9) type of media9) type of media

Print mediaPrint media shoppers supplements,shoppers supplements,

directoriesdirectories

Direct mailDirect mail

RadioRadio

TelevisionTelevision local cable networkslocal cable networks

World wide webWorld wide web

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OutdoorOutdoor posters, billboards,posters, billboards,advertisements near amusement parks,advertisements near amusement parks,

resortsresorts TransitTransit advertisements displayed inadvertisements displayed in

various modes of transportationvarious modes of transportation

MiscellaneousMiscellaneous slide film shown in movies,slide film shown in movies,

distribution of circulars at the entry & exitdistribution of circulars at the entry & exitpoints of store, newspaper insertionspoints of store, newspaper insertions

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Sky or balloon advertising, automaticSky or balloon advertising, automaticvending machines etcvending machines etc

Types of retail advertisingTypes of retail advertising

Pioneer advertisingPioneer advertising used in theused in theintroductory stage ofPLCintroductory stage ofPLC

Competitive advertisingCompetitive advertising

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Reminder advertisingReminder advertising routineroutinepurchase/ new arrivalspurchase/ new arrivals

Institutional advertisingInstitutional advertising buildbuildgoodwill rather than promoting specificgoodwill rather than promoting specificproduct/serviceproduct/service

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Retail Sales promotionRetail Sales promotion

Retail Sales PromotionRetail Sales Promotion -- The criticalThe criticalfactors to be considered in the retailfactors to be considered in the retail

sales promotion aresales promotion are The retailers should recognise theThe retailers should recognise the

customer through appropriate &customer through appropriate &

consistent displays, inconsistent displays, in--store promotionstore promotion& customer service& customer service

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The retailers should show commitment toThe retailers should show commitment toproducts & services and it should align withproducts & services and it should align with

customercustomer UseUse inin store communication to persuadestore communication to persuade

customer to buycustomer to buy

Increasing short term sales volumeIncreasing short term sales volume

Stock clearance of slow, nonStock clearance of slow, non--moving,moving,outdated, defective or inferior quality goodsoutdated, defective or inferior quality goods

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Emphasizing variety, novelty goodsEmphasizing variety, novelty goodsoffered by retail outletoffered by retail outlet

Stimulating customers for impulseStimulating customers for impulsepurchasepurchase

Seeking involvement of customers inSeeking involvement of customers in

contests, demonstrations, prizes forcontests, demonstrations, prizes forbig eventsbig events

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Introducing new arrivals and creatingIntroducing new arrivals and creatingawareness for newly launchedawareness for newly launched

productsproducts Complementing the other promotionalComplementing the other promotional

elements like advertising & personalelements like advertising & personal

sellingselling

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Tools of sales promotionTools of sales promotion

DiscountsDiscounts quantity, cash, offquantity, cash, off--season,season,

dailydaily Stock clearance sale, Festival sale,Stock clearance sale, Festival sale,

annual sale, seconds saleannual sale, seconds sale

POP, membership schemes, credit

POP, membership schemes, creditfacility , zero % loan, freefacility , zero % loan, free

demonstrationdemonstration

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Scratch coupons, exchange offer, trialScratch coupons, exchange offer, trialpackspacks

Free gifts, contest & competition,Free gifts, contest & competition,

inin--store sampling, multistore sampling, multi--pack offers,pack offers,specialty advertisingspecialty advertising

Conclusion for RetailConclusion for Retail

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Conclusion for RetailConclusion for RetailAdvertising & Retail SalesAdvertising & Retail Sales

promotionpromotion Retailer product must meet customerRetailer product must meet customer

expectationsexpectations

Generate repeat businessGenerate repeat business

Anticipate customer needsAnticipate customer needs

Provide higher levels of serviceProvide higher levels of service

Customer feedbackCustomer feedback

Conclusion for RetailConclusion for Retail

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Conclusion for RetailConclusion for RetailAdvertising & Retail SalesAdvertising & Retail Sales

promotionpromotion Remove brand ignoranceRemove brand ignorance

Build awarenessBuild awareness

Upgrade the knowledge of consumersUpgrade the knowledge of consumers

Build customer preferencesBuild customer preferences

Build convictionBuild conviction retailer'sretailer'scommitment towards customerscommitment towards customers

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Managing people at workManaging people at work

(motivating retail salesforce)(motivating retail salesforce) Tools that motivate salesforeceTools that motivate salesforece

Job varietyJob variety -- It involves job rotationIt involves job rotation

through variety of productsthrough variety of products Job autonomyJob autonomy responsibility in handlingresponsibility in handling

customer complaints, participation incustomer complaints, participation incustomer researchcustomer research

Specialised trainingSpecialised training training in producttraining in productknowledge, service skills, computer skills,knowledge, service skills, computer skills,leadership & teamwork, visual display skillsleadership & teamwork, visual display skills

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(motivating retail salesforce)(motivating retail salesforce) Public recognition of achievementsPublic recognition of achievements

skills & achievements of salesforceskills & achievements of salesforce

were displayed to participantswere displayed to participants Goal settingGoal setting setting performancesetting performance

benchmarksbenchmarks

Fixing sales quotasFixing sales quotas Monetary & Non monetary awardsMonetary & Non monetary awards

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(motivating retail salesforce)(motivating retail salesforce) Stimulating salesforce to push nonStimulating salesforce to push non--movingmoving

& slow& slow--moving goodsmoving goods

P

rocess of motivationP

rocess of motivation ExploreExplore It is the stage where theIt is the stage where the

salesman searches for comfortable positionsalesman searches for comfortable positionby improving skillsby improving skills

EstablishEstablish It involves seeking stabilisationIt involves seeking stabilisationin his/her own job through consistentin his/her own job through consistentperformanceperformance

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(motivating retail salesforce)(motivating retail salesforce) MaintainMaintain strive to retain currentstrive to retain current

position through his/her creative workposition through his/her creative work

(The company rewards the salesforce(The company rewards the salesforcefor the innovative performance)for the innovative performance)

DisengageDisengage It is the stage where theIt is the stage where thecompany tries to identify the reasonscompany tries to identify the reasonsfor the declined performance orfor the declined performance orreduced targetsreduced targets

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Retail Supply ChainRetail Supply Chain

Management (SCM)Management (SCM) Importance of Retail SCMImportance of Retail SCM

The supply chain of retail operationsThe supply chain of retail operations

ensures that the right product is in rightensures that the right product is in rightplace at right time and at the right costplace at right time and at the right cost

The objective of SCM is to improve overallThe objective of SCM is to improve overallefficiency and creates an opportunity forefficiency and creates an opportunity for

enhanced sales and customer satisfactionenhanced sales and customer satisfaction

il l h iil l h i

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Management (SCM)Management (SCM) It decides when & what to produce,It decides when & what to produce,

store and movestore and move

It helps in tracking the status of ordersIt helps in tracking the status of orders It reduces the cycle time ( or reducingIt reduces the cycle time ( or reducing

the number of manufacturingthe number of manufacturingoperations)operations)

It reduces the inventory cost throughIt reduces the inventory cost throughJITJIT

il S l Ch iil S l Ch i

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Management (SCM)Management (SCM) It helps in reducing the transportationIt helps in reducing the transportation

cost by selecting the optimalcost by selecting the optimal

transportation modetransportation mode It helps in production planning basedIt helps in production planning based

on customer demandon customer demand

Designing the product based onDesigning the product based oncustomer specificationcustomer specification

R il S l Ch iR il S l Ch i

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Management (SC

M)Management (SC

M) Functions of Retail Supply ChainFunctions of Retail Supply Chain

ManagementManagement

a) Merchandise Planninga) Merchandise Planning b) Inventory Planningb) Inventory Planning

c) Vendor management or Vendorc) Vendor management or Vendor

Managed Inventory (VMI)Managed Inventory (VMI) d) Electronic Data Interchange (EDI)d) Electronic Data Interchange (EDI)

e) Warehouse Managemente) Warehouse Management

R t il S l Ch iR t il S l Ch i

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Management (SC

M)Management (SC

M) Functions of Retail SCMFunctions of Retail SCM

Merchandise planningMerchandise planning

The first step in the scm isThe first step in the scm ismerchandise planning. The planningmerchandise planning. The planningprocess starts well in advance beforeprocess starts well in advance beforethe actual beginning of the season tothe actual beginning of the season tofill an agreed coverage of the productfill an agreed coverage of the productthat matches the customer demandthat matches the customer demand


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Management (SC

M)Management (SC

M) Merchandise planning developsMerchandise planning develops

appropriate mix of color, price, styleappropriate mix of color, price, style

on the customer requirementson the customer requirements The buying departments then decidesThe buying departments then decides

on suppliers who will supply theon suppliers who will supply the

necessary merchandise as per thenecessary merchandise as per theplansplans


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Management (SC

M)Management (SC

M) Efficient inventory planningEfficient inventory planning

It enables the retail organisation toIt enables the retail organisation to

achieve its strategies and benchmarkachieve its strategies and benchmarkstandards of customer attractivenessstandards of customer attractivenessat the same time. Forward planning isat the same time. Forward planning is

done by forecasting sales at beginningdone by forecasting sales at beginningof month (BOM) and End ofof month (BOM) and End ofmonth(EOM). It leads to OTBmonth(EOM). It leads to OTB


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Management (SC

M)Management (SC

M) (Open to buy plans). Efficiency Inventory(Open to buy plans). Efficiency Inventory

planning optimises purchasing controls forplanning optimises purchasing controls for

the store with the help of JIT.the store with the help of JIT. Vendor ManagementVendor Management

Effective Vendor Management involves inEffective Vendor Management involves inselecting the right vendors who are capableselecting the right vendors who are capable

of providing the right quality of merchandiseof providing the right quality of merchandiseand meeting delivery deadlines.and meeting delivery deadlines.


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Management (SC

M)Management (SC

M) It helps in delivering the rightIt helps in delivering the right

quantities so that retailers can getquantities so that retailers can get

right hit ratio. The right hit ratioright hit ratio. The right hit ratiomeasures the gap between delivery &measures the gap between delivery &purchase orders so that it eliminatespurchase orders so that it eliminatesback log delivery. Efficient vendorback log delivery. Efficient vendor

management leads to vendormanagement leads to vendormanaged inventory (VMI) which ismanaged inventory (VMI) which isideal for reducing inventory costideal for reducing inventory cost


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Management (SC

M)Management (SC

M) Electronic data interchange (EDI)Electronic data interchange (EDI)

EDI helps in establishing an efficientEDI helps in establishing an efficient

information flow on stock movementinformation flow on stock movementand vendors can share informationand vendors can share informationabout invoices and salesabout invoices and sales

simultaneously. EDI is the flow of datasimultaneously. EDI is the flow of dataelectronically between two differentelectronically between two differentorganisationsorganisations


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Management (SC

M)Management (SC

M) Warehouse managementWarehouse management

It helps in managing the distributionIt helps in managing the distribution

centers. It involves in storing andcenters. It involves in storing anddocking of goods. Efficient warehousedocking of goods. Efficient warehousemanagement helps in the propermanagement helps in the proper

utilisation of the space. It takes theutilisation of the space. It takes theresponsibility of transporting theresponsibility of transporting thegoods from the warehouse to end usergoods from the warehouse to end user


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Management (SC

M)Management (SC

M) Process of retail SCMProcess of retail SCM

a) Open to Buy plans (OTB)a) Open to Buy plans (OTB)

b) Purchase Ordersb) Purchase Orders

c) Order fulfillmentc) Order fulfillment

d) Receipt of goodsd) Receipt of goods

e) Inventory Managemente) Inventory Management


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Management (SC

M)Management (SC

M) f) Warehousingf) Warehousing storing , docking,storing , docking,

transportationtransportation

g) pricing & bar codingg) pricing & bar coding h) sales at retail storeh) sales at retail store point of salespoint of sales

management, category managementmanagement, category managementand visual merchandisingand visual merchandising

i) Customer Relationship Managementi) Customer Relationship Management(CRM)(CRM)

Retail S l ChainRetail S l Chain

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Management (SC

M)Management (SC

M) Conclusion of Retail SCMConclusion of Retail SCM 7 RIGHTS of Retail SCM7 RIGHTS of Retail SCM To offer the Right product atTo offer the Right product at Right place inRight place in Right quantity withRight quantity with Right quality atRight quality at Right price inRight price in Right mix or assortment inRight mix or assortment in Right timeRight time

CRM ( RelationshipCRM ( Relationship

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Marketing)Marketing) Importance & features ofCRMImportance & features ofCRM

CRM is the process of building long termCRM is the process of building long termtrusting, wintrusting, win--win relationships withwin relationships withcustomers, distributors, dealers andcustomers, distributors, dealers andsuppliers.suppliers.

CRM promises and delivers high qualityCRM promises and delivers high qualityefficient services, fair prices to the parties orefficient services, fair prices to the parties orcustomers, strengthening social, economiccustomers, strengthening social, economicand technical ties between the retailer andand technical ties between the retailer andconsumerconsumer


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Marketing)Marketing) The success of the retail organizationThe success of the retail organization

depends on the firm in which isdepends on the firm in which is

determined by establishing, retainingdetermined by establishing, retainingand maintaining long termand maintaining long termrelationships with their customers.relationships with their customers.

The purpose ofCRM is to establish,The purpose ofCRM is to establish,maintain, evaluate & commercializemaintain, evaluate & commercialize

the customer relationships.the customer relationships.


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Marketing)Marketing) The prime objective ofCRM is toThe prime objective ofCRM is to maximisemaximise

the life time value of the customer.the life time value of the customer.

To fulfill the above objective the retailersTo fulfill the above objective the retailershas to build relationships both internalhas to build relationships both internalsources ( employees or salesman or staff)sources ( employees or salesman or staff)and external sources ( customers, suppliersand external sources ( customers, suppliersand other influential sources in the society)and other influential sources in the society)

The retail orgnanizations have to retain theThe retail orgnanizations have to retain theloyal customers. Higher retention leads toloyal customers. Higher retention leads tohigher customersatisfactionhigher customersatisfaction


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Marketing)Marketing) Ways to build long term relationshipsWays to build long term relationships

with the customerswith the customers

Maximise the life time value of theMaximise the life time value of thecustomer through higher retentioncustomer through higher retention

Rewarding loyal customersRewarding loyal customers

By providing higher levels of serviceBy providing higher levels of service

By using widespread use of technologyBy using widespread use of technologyfor providing faster servicefor providing faster service


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Marketing)Marketing) By efficient complaint handling grievanceBy efficient complaint handling grievance

systems, inviting customer suggestionssystems, inviting customer suggestions

Upgrading the customer knowledge throughUpgrading the customer knowledge throughadvanced management information systemsadvanced management information systemslike TPS(Transaction processing system),like TPS(Transaction processing system),DSS(Decision Support Systems) andDSS(Decision Support Systems) andEIS(Executive information systems)EIS(Executive information systems)

By networking with the following groupsBy networking with the following groups employees, suppliers, customers, recruiters,employees, suppliers, customers, recruiters,referals etcreferals etc


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Marketing)Marketing) Process ofCRMProcess ofCRM

SegmentationSegmentation geographic, demographic,geographic, demographic,psychographic etcpsychographic etc

TargetingTargeting or database marketingor database marketing PositioningPositioning category management, visualcategory management, visual

merchandising etcmerchandising etc

DifferentiationDifferentiation price, quality and other benefitsprice, quality and other benefits

NetworkingNetworking customers, suppliers, recruiters,customers, suppliers, recruiters,referals etcreferals etc

SCM as a tool ofCRMSCM as a tool ofCRM


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Marketing)Marketing) ConclusionConclusion

Application ofCRM in banking, groceries,Application ofCRM in banking, groceries,

clothing, cosmetics etcclothing, cosmetics etc The success of Walmart is due to theThe success of Walmart is due to the

establishing, retaining & maintaining longestablishing, retaining & maintaining longterm relationships with the suppliersterm relationships with the suppliers

worldwide. Global Sourcing is the tool thatworldwide. Global Sourcing is the tool thatwas integrated by Walmart into CRMwas integrated by Walmart into CRMprocessprocess

Retail Merchandising &Retail Merchandising &

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Retail Merchandising &Retail Merchandising &

Sh

op DisplaysSh

op Displays Retail Merchandising consists of allRetail Merchandising consists of all

activities involved in acquiringactivities involved in acquiring

particular goods/services and makingparticular goods/services and makingthem available at convenient places atthem available at convenient places atall times and enable retailer to reachall times and enable retailer to reachthe goals.the goals.

Visual Merchandising is an effectiveVisual Merchandising is an effectivetool of retail merchandisingtool of retail merchandising

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Retail MerchandisingRetail Merchandising

Visual Merchandising(VM) is theVisual Merchandising(VM) is theprocess of selling the goods throughprocess of selling the goods through

displays and presentationdisplays and presentationVM acts as a silent salesmanVM acts as a silent salesman

It provides opportunity for retailers toIt provides opportunity for retailers tosell a variety of merchandisesell a variety of merchandise

VM stimulates the salesforce to createVM stimulates the salesforce to createdisplaysdisplays

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VM is the backdrop of the store. VM consistsVM is the backdrop of the store. VM consistsof displays to generate customer interest.of displays to generate customer interest.

VM divides the store into recognisableVM divides the store into recognisabledifferent areas or into categories dependingdifferent areas or into categories dependingon the assortment of productson the assortment of products

VM enhance shopping experience to theVM enhance shopping experience to thecustomer.customer.

VM helps in store positioning and also theVM helps in store positioning and also theimage of the store in the minds of customerimage of the store in the minds of customer

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Since VM is composed of building faade,Since VM is composed of building faade,staircases, combination of colors, graphics, lighting,staircases, combination of colors, graphics, lighting,forms & fixtures which makes the customer to visitforms & fixtures which makes the customer to visitthe store repeatedly.the store repeatedly.

Conclusion of VMConclusion of VM Creating visual image of the store through displaysCreating visual image of the store through displays Act as silent salesmanAct as silent salesman Opportunity for the retailer to sell variety ofOpportunity for the retailer to sell variety of

merchandisemerchandise Creates store image(Positioning the store)Creates store image(Positioning the store) Stimulates impulse purchaseStimulates impulse purchase

Shop Displays (type ofShop Displays (type of

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displays)displays) Shop displays allows customers toShop displays allows customers to

make quick decisions to purchase. Itmake quick decisions to purchase. It

provides the opportunity for theprovides the opportunity for theconsumer to have a glance of theconsumer to have a glance of theretailer goods both from interior &retailer goods both from interior &exterior.exterior.


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displays)displays) Type of shop displaysType of shop displays

1) Window Displays1) Window Displays attract theattract the

attention of customers by positioningattention of customers by positioningwindow as a separate area which iswindow as a separate area which isalso called exclusive displaysalso called exclusive displays

2) Live displays2) Live displays used for productused for product

displays at the entrance of store todisplays at the entrance of store todemonstrate the use of productsdemonstrate the use of products


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displays)displays) 3) Marquee displays3) Marquee displays consists ofconsists of

panels which are canopied or anpanels which are canopied or an

extended roof which is used in largeextended roof which is used in largesupermarketssupermarkets

4) Island or freestanding displays4) Island or freestanding displays

displays of merchandise founddisplays of merchandise foundgenerally inside of the store togenerally inside of the store toannounce new arrivals, special offersannounce new arrivals, special offers


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displays)displays) 5) Counter display5) Counter display displayed in thedisplayed in the

counters of the store that have glazedcounters of the store that have glazeddisplay shelves to highlight the merchandisedisplay shelves to highlight the merchandise

Ex: jewelry, watch storesEx: jewelry, watch stores

6) Brand corner displays6) Brand corner displays they are thethey are thedisplays of exclusive brands which isdisplays of exclusive brands which is

common in supermarkets , garments etccommon in supermarkets , garments etc


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displays)displays) 7) End cap displays7) End cap displays displays at terminaldisplays at terminal

sides of the store. It is shelves cum displaysides of the store. It is shelves cum displaycum selling. These displays are oftencum selling. These displays are oftenmovablemovable

Ex: book stores, supermarkets etcEx: book stores, supermarkets etc

8) Cascade waterfall display8) Cascade waterfall display commonlycommonly

used in readymade garments where shirts,used in readymade garments where shirts,jackets and blazers are displayed on linearjackets and blazers are displayed on linearwalls with the help of dropping rodswalls with the help of dropping rods


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displays)displays) Conclusion of Shop DisplaysConclusion of Shop Displays

Shop Displays are the part of visualShop Displays are the part of visual

merchandising.merchandising. Helps in the positioning of the storeHelps in the positioning of the store

imageimage

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Store LayoutStore Layout

Store layout is the physical arrangement ofStore layout is the physical arrangement ofmerchandise. It decides the arrangement ofmerchandise. It decides the arrangement ofmerchandise offered by the store and themerchandise offered by the store and thefloor space allocated.floor space allocated.

Store layout helps in creatingStore layout helps in creatingdistinct/unique image store of the storedistinct/unique image store of the store

considering the target audience of outletconsidering the target audience of outlet

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Objectives of Store LayoutObjectives of Store Layout

Optimum utilisation of spaceOptimum utilisation of space

Minimum movement in the product handlingMinimum movement in the product handling Minimum distance traveledMinimum distance traveled salesman andsalesman and

customercustomer

Maximum visibility of products to customersMaximum visibility of products to customers

Encouragement to customers to visit theEncouragement to customers to visit thestorestore

Ease and maintenance of the storeEase and maintenance of the store

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Factors considering in designing store layoutFactors considering in designing store layout

Total space availableTotal space available

Types of merchandise offered by the storeTypes of merchandise offered by the store Number of departments in the storeNumber of departments in the store

Target audience & number of customersTarget audience & number of customersvisiting the storevisiting the store

Stock/inventory levelStock/inventory level

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design of store layoutdesign of store layout It refers to theIt refers to thestore atmosphere in terms of both interiorstore atmosphere in terms of both interiorand exterior parts of the storeand exterior parts of the store

Store interiorStore interior storefront, signage,storefront, signage,entrances, display window, surroundingentrances, display window, surroundingstores, parking area etcstores, parking area etc

Store exteriorStore exterior colors, lightning, fixtures,colors, lightning, fixtures,flooring, merchandising, number of cashflooring, merchandising, number of cashcounters, housekeeping of the store etccounters, housekeeping of the store etc

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Types of store layoutTypes of store layout

Free flow layoutFree flow layout known as boutiqueknown as boutique

layout. Customers can move freelylayout. Customers can move freelythroughout the store. Fixtures, racks,throughout the store. Fixtures, racks,counters are arranged assymetrically.counters are arranged assymetrically.

The area is limited. It is suitable forThe area is limited. It is suitable forretail outletsretail outlets

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Grid layoutGrid layout this pattern is suitable whenthis pattern is suitable whenrectangular space is available.rectangular space is available.Counters,shelves, fixtures were arranged inCounters,shelves, fixtures were arranged in

long rows. It is cost effective layoutlong rows. It is cost effective layout Ex: supermarketsEx: supermarkets

Loop layoutLoop layout known as racetrack layout.known as racetrack layout.The flow pattern is also suitable whenThe flow pattern is also suitable when

rectangular space is available. The looprectangular space is available. The loopbegins at entrance and returns the customerbegins at entrance and returns the customerin front of the storein front of the store

SS

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ex: of loop layout is Big Bazaarex: of loop layout is Big Bazaar

Spine LayoutSpine Layout combine the merits ofcombine the merits of

free flow, grid and loop layout.free flow, grid and loop layout.Merchandise is displayed on both sidesMerchandise is displayed on both sidesof the racks. The traffic flow is inof the racks. The traffic flow is in

straight line passing from the front tostraight line passing from the front toback to the store.back to the store.

S LS L

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ConclusionConclusion

Store layout portrays storeStore layout portrays store

atmosphere which is a primeatmosphere which is a primeconsideration for the customers retailconsideration for the customers retailstore choice.store choice.

retail mms

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