Introduction to world of retailing

Retail , IIPMB

1. Introduction to the World of Retailing

2. 1-2

3. 1-3
Retailing
Introduction to Retailing
Types of Retailers
Multi-Channel Retailing
Customer Buying Behavior

4. 1-4
Questions
■What is retailing?
■What do retailers do?
■Why is retailing important in our society?
■What career and entrepreneurial opportunities
does retailing offer?
■What types of decisions do retail managers
make?

5. 1-5
What is Retailing?
Retailing – a set of business
activities that adds value to
the products and services
sold to consumers for their
personal or family use
A retailer is a business that
sells products and/or
services to consumers for
personal or family use.

6. 1-6
Manufacturer’s Perspective
The Four P’s of Marketing
Distribution
Retailers are part of the
distribution channel
Retailers are part of the
distribution channel
Product
Price
Promotion

7. 1-7
Distribution Channel

8. Typical Supply Chain Network
Suppliers Plants
Distribution
Centers
Customers
retailers

9. 1-9
A Retailer’s Role in a Supply Chain
Retailers are the final business within a supply
chain which links manufacturers to consumers.
A Supply Chain is a set of firms that make and
deliver a given set of goods and services to the
ultimate consumer.
Vertical Integration
Backward Integration
Forward

10. How Retailers Add Value
■Provide Assortment
■Break Bulk
■Hold Inventory
■Offer Services
1-10

11. 1-11
How Retailers Add Value
The value of the product and service
increases as the retailer performs functions.
Bicycle is developed
at manufacturer
Bicycle is developed
at manufacturer
Bicycle is
developed in
several styles
Bicycle is
developed in
several styles
Bicycle is offered in
convenient locations
in quantities of one
Bicycle is offered in
convenient locations
in quantities of one
Bicycle is featured
on floor display
Bicycle is featured
on floor display
Bicycle can be
bought on credit or
put on layaway
Bicycle can be
bought on credit or
put on layaway

12. 1-12
Social and Economic Significance of Retailing
Retail Sales
Employment
Social responsibility
Global player

13. 1-13
Nature of Retail Industry is Changing
Mom and Pop Store
To Today’s Retailer

14. 1-14
Retailing is a High Tech Industry
Selling Merchandise through the Internet
Using Internet to manage supply chains
Analyze POS data to tailor assortments to stores
Computer systems for merchandise planning and
tracking

15. 1-15
Opportunities in Retailing:
Management opportunities
■People with a wide range of skills and interests needed
because retailers’ functions include

Finance

Purchase

Accounting

Management information system (MIS)

Supply management including warehouse and
distribution management

Design and new product development

16. 1-16
Opportunities in Retailing:
Entrepreneurial opportunities
■Retailing provides opportunities for
people who want to start their own
business
■Some of the world’s richest people
are retailing entrepreneurs
■Examples of retailing
entrepreneurs
Sam Walton (Wal-Mart)
Jeff Bezos (Amazon.com)
Ingvar Kamprad (IKEA)
Anita Roddick (the Body Shop)
Wal-Mart: Sam Walton
IKEA: Ingvar Kamprad

17. 1-17
Career Opportunities in Retailing
Start Your Own Business
Walton Family (Wal-Mart)
Fisher (The Gap)
Wexner (The Limited)
Menard (Menard’s)
Marcus (The Home Depot)
Kellogg (Kohl’s)
Schulze (Best Buy)
Levine (Family Dollar)
Gold (99Cent Only)
List of Retail Entrepreneurs on Forbes 400 Richest Americans

18. 1-18
Types of Jobs in Retailing
Most entry level jobs are in
store management or buying, but there’s…
-accounting and finance
-real estate
-human resource management
-supply chain management
-advertising
-public affairs
-information systems
-loss prevention
-visual merchandising

19. 1-19
Wal-Mart’s Retail Mix
Retail Strategy
Customer
Service
Location
Merchandise
Assortment
PricingCommunication
Mix
Store Design
And Display

20. 1-20
Wal-Mart’s Retail Mix
Free-standing Stores
Customer
Service
Merchandise
Assortment
Pricing
Communication
Mix
Store Display
And Design
Location Strategy

21. 1-21
Wal-Mart’s Retail Mix
Location
Pricing
Communication
Mix
Store Design
and Display
Customer
Service
Large Number
of Categories
Few Items
in Each Category
Assortment Strategy

22. 1-22
Wal-Mart’s Retail Mix
Location
Communication
Mix
Store Design
and Display
Customer
Service
Merchandise
Assortment
Low, EDLP
Pricing Strategy

23. 1-23
Wal-Mart’s Retail Mix
Communication Mix
TV and Newspaper
Insert Ads
Location
Pricing
Store Design
and Display
Customer
Service
Merchandise
Assortment

24. 1-24
Wal-Mart’s Retail Mix
Store Design and Display
Basic, Special
Displays
for Products
Customer
ServiceLocation
Merchandise
Assortments
Pricing
Communication
Mix

25. 1-25
Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise
Assortment
Pricing
Communication
Mix
Store Design
and Display

26. 1-26
Claire’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
Pricing
Communication Mix
Store Design
and Display

27. 1-27
Claire’s Retail Mix
Enclosed malls
Customer Service
Merchandise
Assortment
Pricing
Communication Mix
Store Display
And Design
Location Strategy

28. 1-28
Claire’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Jewelry, accessories and
cosmetics for tweens and
teens
Assortment Strategy

29. 1-29
Claire’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Modest with Sales
Pricing Strategy

30. 1-30
Claire’s Retail Mix
Communication Mix
TV and Magazine Ads
Store Design
And Display
Customer Service
Location
Merchandise Assortment
Pricing

31. 1-31
Claire’s Retail Mix
Store Design and Display
Bright, fashionable and fun
boutique layout
Customer Service Location
Merchandise Assortments
PricingCommunication Mix

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Claire’s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display

33. 1-33
Macy’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
Pricing
Communication Mix
Store Design
and Display

34. 1-34
Macy’s Retail Mix
Enclosed Malls
Customer Service
Merchandise
Assortment
Pricing
Communication Mix
Store Display
And Design
Location Strategy

35. 1-35
Macy’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Many Items in Apparel
and Soft Home
Assortment Strategy

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Macy’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Moderate with
Frequent Sales
Pricing Strategy

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Macy’s Retail Mix
Communication Mix
TV, Newspaper Ads and
Special Events
Store Design
And Display
Merchandise Assortment
Pricing
Customer Service
Location

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Macy’s Retail Mix
Store Design and Display
Racetrack with Displays
Customer Service Location
Merchandise Assortments
PricingCommunication Mix

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Macy’s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display

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Target’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
Pricing
Communication Mix
Store Design
and Display

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Target’s Retail Mix
Free-standing Stores
Customer Service
Merchandise
Assortment
Pricing
Communication Mix
Store Display
And Design
Location Strategy

42. 1-42
Target’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Large Number of Categories
Private Labels
Few Items in Each Category
Assortment Strategy

43. 1-43
Target’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Low to Modest
Pricing Strategy

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Target’s Retail Mix
Communication Mix
TV and Newspaper
Insert Ads
Store Design
And Display
Customer Service
Location
Merchandise Assortment
Pricing

45. 1-45
Target’s Retail Mix
Store Design and Display
Colorful, wide aisles displays
for products with a grid layout
Customer Service Location
Merchandise Assortments
PricingCommunication Mix

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Target’s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display

47. 1-47