Module v retail mgt

MODULE V
STORE OPERATIONS
RETAIL MARKETING
PRESENTED BY : TEAM III

Retailing and Retail Management
Retailing :
Commercial transaction in which a buyer intends to consume the good or service through
personal, family, or household use.
Retail Management :
A process of promoting greater sales and customer satisfaction by gaining a better
understanding of the consumers of goods and services produced by a company.

STORE
The retail store is the place where the customers take a decision on the purchase of the products
offered by the retailer.

Key roles in store environment
The retail store is of prime importance to the retail origination, for two reasons.
1. The retail store is the primary source of revenue for the retailer .
2. It is the point where the customer actually interacts with the retail store and its offerings .

Store Atmosphere
The store must offer a positive ambience to the customers for them to enjoy their
shopping and leave with a smile.
1.The store should not give a cluttered look.
2.The products should be properly arranged on the shelves according to their sizes and
patterns. Make sure products do not fall off the shelves.
3.There should be no foul smell in the store as it irritates the customers.
4.The floor, ceiling, carpet, walls and even the mannequins should not have unwanted
spots.
5.Never dump unnecessary packing boxes, hangers or clothes in the dressing room.
Keep it clean.
6.Make sure the customers are well attended.
7.Don’t allow customers to carry eatables inside the store

Cash Handling
1. It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the
store.
2. Cash Registers, electronic cash management system or an elaborate computerized point of
sale (POS) system help the retailer to manage the daily sales and the revenue generated.

Prevent Shoplifting/Safety and Security
1. The merchandise should not be displayed at the entry or exit of the store.
2. Do not allow customers to carry more than three dresses at one time to the trial room.
3. Install CCTVs and cameras to keep a close watch on the customers.
4. Each and every merchandise should have a security tag.
5. Ask the individuals to submit carry bags at the security.
6. Make sure the sales representative handle the products carefully.
7. Clothes should not have unwanted stains or dust marks as they lose appeal and fail to impress the customers.
8. Install a generator for power backup and to avoid unnecessary black outs.
9. Keep expensive products in closed cabinets.
10. Instruct the children not to touch fragile products.
11. The customers should feel safe inside the store.

Customer Service
1. Customers are assets of the retail business and the retailer can’t afford to lose even a single
customer.
2. Greet customers with a smile.
3. Assist them in their shopping.
4. The sales representatives should help the individuals buy merchandise as per their need and
pocket.
5. The retailer must not oversell his products to the customers. Let them decide on their own.
6. Give the individual an honest and correct feedback. If any particular outfit is not looking
good on anyone, tell him the truth and suggest him some better options.
7. Never compromise on quality of products. Remember one satisfied customer brings five
more individuals to the store. Word of mouth plays an important role in Brand Promotion.

Refunds and Returns
1. Formulate a concrete refund policy for your store.
2. The store should have fixed timings for exchange of merchandise.
3. Never exchange products in lieu of cash.
4. Never be rude to the customer, instead help him to find something else.

Visual Merchandising
1. The position of dummies should be changed frequently.
2. There should be adequate light in the store. Change the burned out lights immediately.
3. Don’t stock unnecessary furniture at the store.
4. Choose light and subtle colours for the walls to set the mood of the walk-ins.
5. Make sure the signage displays all the necessary information about the store and is installed
at the right place visible to all.
6. The customers should be able to move and shop freely in the store.
7. The retail store should be well ventilated.

Training Program
1. The store manager must conduct frequent training programs for the sales representatives,
cashier and other team members to motivate them from time to time.
2. It is the store manager’s responsibility to update his subordinates with the latest softwares in
retail or any other developments in the industry.
3. It is the store manager’s responsibility to collate necessary reports (sales as well as
inventory) and send to the head office on a daily basis.

Inventory and Stock Management
1. The retailer must ensure to manage inventory to avoid being “out of stock”.
2. Every retail chain should have its own warehouse to stock the merchandise.
3. Take adequate steps to prevent loss of inventory and stock

Legal Compliance
1. Ensure that the store is in compliance with employment laws, including those reg
arding wage and hour, human rights and equal employment opportunities.
2. Maintain safe working conditions for the employees and customers coming in the
store, resolve any safety concerns quickly.
3. Ensure store security from internal and external theft and get to know the proper
apprehension and prosecution procedures for your state.

In brief
Typically in a retail store, the following tasks need to be performed.
1. Store administration and management of the premises
2. Managing inventory and display
3. Managing receipts
4. Customer service
5. Managing promotions, events, alliances and partnerships

Role of store manager
Store Manager:
An individual responsible for managing the overall functioning of the store is called a store
manager.
A store manager takes care of the day to day operations of the store and ensures maximum
profitability for his store.
In simpler words a retail store is a store manager’s baby.

Hierarchy
General Manager
↑
Store Manager
↑
All employees of the store
(Floor manager, cashier, Department manager, Asst Store manager)

Gender Preference
Both Male/Female.
In certain cases the selection might depend on the merchandise available in the store.
A store specializing in female lingerie would prefer a female store manager as she would be
more comfortable with the female buyers.

Responsibilities of the Store Manager
1. Recruiting employees for the store is the store manager’s prime responsibility.
2. The store manager must make sure his store is meeting the targets and earning profits
3. The store manager is responsible for maintaining the overall image of the store
4. He is responsible for managing the assets of the store

He must ensure
1. The store is kept clean
2. Shelves and racks are properly stocked and products do not fall off the shelves.
3. Mannequins are kept at the right place to attract the customers into the store and rotated
frequently.
4. The merchandise should be according to the season as well as the latest trends.
5. The store is well lit, ventilated and offers a positive ambience to the customers.
6. The signage displaying the name and logo of the store is installed at the right place and
viewable to all.

Types of store location
1. Central Business District
2. Stand alone locations
3. Convenience location
4. Destination Location
I. Malls
II. Conventional Shopping Center

Retail Location Strategies
1. Department Store
2. Specialty Apparel Store
3. Category Specialists
4. Grocery Stores/ Food Stores

Importance of store location in retail
1. Consumer Choice
2. Need for Competitor Advantage
3. Consideration of Trends
4. High Involvement
5. Property Asset
6. Declining number of Sites
7. Cost Factor
8. Revenue Factor
9. Means of success
10. Not Changeable
11. Consumer Profile

Factors affecting location selection
1. Pedestrian Traffic
2. Vehicular Traffic
3. Parking Facilities
4. Transportation
5. Store Composition
6. Specific Site
7. Occupancy

STP Approach of retailing
1. Segmenting
2. Targeting
3. Positioning

Segmenting
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral

Demographic segmenting
1. Age and Life style
2. Gender and Sexual Orientation
3. Marital Status
4. Income
5. Status
6. Family Size
7. Occupation
8. Education Level
9. Religion

Psychographic Segmentation
1. Life styles
2. Personality
3. Values
4. Beliefs

Behavioral segmentation
1. Occasions
Regular
Special
2. Benefits
Quality
Service
Economy
Specialty

continued
3. User Status
Non user
Potential
First Time
Regular
Ex User

continued
4. buyer Readiness state
Unaware
Aware
Informed
Interested
Desired
Intended to Buy

continued
5. Quantity Consumed / Usage Rate
Light
Medium
Heavy

Continued
6. Loyalty Status
Hardcore
Soft core
Split loyal
Switchers

Continued
7. Attitude
Enthusiastic
Positive
Indifferent
Negative
Hostile

Significance of Segmenting in Retail
1. Adjustment of product and Retail Marketing Appeals
2. Allocation of Market Budget
3. Fighting Competition Effectively
4. Understanding and meeting the needs of consumers
5. Minimizing Aggregation Risk
6. Targeted Marketing

Continued
7. Development of proper marketing mix
8. Store Location Decision
9. Understand Consumer Behavior
10. Merchandising decisions
11. Promotional Campaigns
12. Positioning

Targeting Strategies
1. Undifferentiated or Mass Marketing
2. Differentiated or Selective Marketing
3. Concentrated or Focus Marketing

Significance of Targeting in Retail
1. Helps in providing important Services and Features
2. Ability to offer the Right Products
3. Retailers more aware about prices
4. Retailer gets more sales
5. Helps in knowing where consumer lives

Positioning Strategies
1. Benefit Positioning
2. Attribute Positioning
3. User Positioning
4. Quality or Price Positioning
5. Competitor Positioning
6. Image/Personality Positioning
7. Merchandise category Positioning
8. Price and Quality Positioning
9. Specialty Products Positioning

Requisites of Positioning in Retail
1. Specific Shopping Mode
2. Clear Focus
3. Recognizable and Memorable
4. Consistency
5. Profitability

Store Design
Element most responsible for planning the store environment.
Objectives:
1. Consistent with image and strategy
2. Positively influence consumer behavior
3. Considers cost vs value
4. Flexibility

Elements of store design
1. Exteriors
2. Interiors

Store exteriors
1. Place of location
2. Marquee
3. Store Entrance
4. Display Window
5. Door Types
6. Walkways
7. Size of the Building
8. Awning
9. Colors and Materials

Store Interiors
1. Envelop
2. Store Layout
3. Signage
4. Visual Merchandising
5. Colors
6. Lighting
7. Smells
8. Sounds

Store Layout
Associated with the user movement ease inside the store.
1. Grid layout
2. Race court/Loop Layout
3. Free Flow/ Boutique Layout
4. Spine Layout

Other layouts
1. Soft aisle layout
2. Minimal floor layout
3. Combination floor layout
4. Universal access layout

Importance of store layout
1. Implement the desired image
2. Enhancing the efficiency of Store Operations
3. Maximizing the sales revenue
4. Prevention of Merchandising Shrinkage
5. Energy Efficiency

Steps of Designing Layouts
1. Selecting the basic store layout plan
2. Allocating selling space to different departments
3. Location departments within the store
4. Organisations of merchandise within departments

Visual Merchandising
Visual Merchandising can be called as the silent salesman for retail formats.
Visual Merchandising also referred to as display is defined as the presentation of products in
order to sale .

Elements of visual merchandising
1. Window display
2. Lighting
3. Music
4. Signs and graphics
5. Colors
6. Props
7. Mannequins

Role of visual merchandising
1. Increasing sales
2. Informing and educating customers
3. Enabling ease of shopping
4. Creating and enhancing the stores image

Tools Used For Visual Merchandising
1. Products
2. Brand
3. Color
4. Size
5. Quality/price
6. Product characteristics
7. Lifestyle
8. Age group
9. Combination of several elements

Consumer Touch Point
“ A point of contact between a shopper or a prospect with the store.”
Types :
1. Broadcast
2. Email
3. Internet
4. Systematic
5. Mail
6. Event
7. Phone/fax
8. Personal

Managing touch points
1. Identifying
2. Prioritizing
3. Assessing
4. Defining improvement
5. Defining business impact and resources
6. Developing key action plans

Shopper Marketing
The employment of any marketing stimuli, developed based on deep understanding of shopper
behavior designed to build brand equity engage the shopper and lead him/her to make a
purchase.

Components of shopper marketing
At home On the Go In store
Paid media Mobile Signage of Shelf
Relationship marketing Out of home In store coupons
Product Placement Product Placement Video Display
Search before you buy Alternative out of home Interactive media
Social media Interactive vending Sampling programs
Displays

Shopper Marketing Process
1. Develop customer insights
2. Understand the path to purchase
3. Influence the Shopper
4. Measure and generate feedback
5. Integrated Marketing and Merchandising
6. In store advertising and shopper marketing

Benefit of shopper Marketing
1. Enhances strategic relevance with retailers
2. Improves shoppers loyalty
3. Increases preferences in in store programs
4. Improves innovation planning and execution
5. Reduces out of stock
6. Improves brand equity

Module v retail mgt

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Module v retail mgt