Store Location Planning-Module 2.pptx managemenet

Glossary of terms
What Is Retail Marketing?
Retail marketing encompasses all of the ways a consumer business attracts customers and generates sales of its goods and services. Retail marketing strategies touch virtually everything in a company’s operations, including signage, store layout, sales and promotions, pricing strategies, advertising, checkout processes, and customer service.

A retail marketing mix is similar to the traditional marketing mix, also known as the “4 Ps” of marketing. These include product, pricing, place, and promotion. The retail marketing mix adds two more “Ps” to the mix: people and presentation. These elements represent the value of sales associates and other staff in retail settings, as well as the importance of aesthetics and design in retail locations.

What’s the Most Important Thing about Retail Marketing?
The right marketing mix is a must-have differentiator in the highly competitive retail industry. Rich retail data on customer demographics provides significant opportunities to test and optimize all aspects of the “6 Ps.” These strategies include enhanced in-store marketing and merchandising, unification of online and offline data, effective pricing strategies, improved conversion rates, and better overall shopping experiences. All types of retailers, from small “mom-and-pop” businesses to national big-box merchants, can capitalize on retail data to optimize their retail marketing mix.

Retail Marketing Mix: The 6 Ps
As noted earlier, the four Ps of marketing are product, pricing, place, and promotion. The retail marketing mix adds two more: people and presentation.

Product: The product is the item purchased by a customer. An effective product must capably solve a customer need or perform a desired function. A product may be combined with related products and purchased in a set or bundle.

Price: The price of a product is set by the retailer and designates how much money the consumer pays to receive it. Price can play a role in the popularity of a product, especially if consumers perceive that a product’s price is low relative to the value it provides.

Placement: Placement refers to where the product is sold. For example, does a retailer sell a product in its store, on its website or in both places? In addition, some products might be sold in some stores (like supermarkets) but not other stores (like department stores).

Promotion: Promotion refers to the assorted marketing activities to generate interest in the product and drive sales. Promotional tactics include advertising, public relations and special sales (for example, discounts or special offers).

People: People refers to company representatives (for example, employees, contractors, or partners) who interact with customers in a retail setting. These representatives might answer questions about products or verify product details, such as availability and sale price. In some retail settings (for example, the sale of large, flat-screen televisions), peopl

1. Store Location Planning Module-2

2. Concept Having a good location for retail is one of the crucial impacts in the case of the  marketing   strategy  of retail because many of the associated long-term decisions and commitments depend on the location of the retail. Having a good location is one of the primary element in attracting prospects and customers. At times a good location can also lead to an excellent  competitive advantage  because in retail  marketing mix  location is one of the crucial parameters and unique which cannot be copied by competitors in any way.

3. Store location planning is a critical skill in retail, to be sure an expected return will be achieved on the investment in physical real estate. With overwhelming pressure from e-commerce, every business needs to evaluate the market and revenue opportunity of potential new locations. Retail store planning is the process of identifying the potential footfall and spend levels of the nearby population, set against the cost of opening and running a physical store, taking into account a variety of external factors which may impact the equation either way.

4. Importance of a good retail store location A good retail location as a competitive advantage which cannot be copied by the  competition . One location can occupy one retail store, and time also plays a crucial role along with the location. Customer proximity is another concern for most of the retail businesses. Several stores can be opened away from the city with a cheaper budget, but it won’t be possible for the retailers to bring customers to that neighborhood. The retail store should be close to the place of customers. Having a convenient retail store helps the organization to make  supply chain  and  distribution  arrangements easy for a particular outlet. This reduces the cost of the organization as brothers when it comes to meeting the immediate demands of the customer and fulfilling the urgent orders the retail outlet will not have any difficulty in doing so.

5. Levels of Store Location A retailer has to take the location decision, basing on three aspects: Selection of a city Selection of an area or type of location within a city Identification of a specific site

6. 1. Selection of a City

7. 2. Selection of an Area or Type of Location within a City In the selection of a particular area or type of location within a city, evaluation of the following factors is required. Customer attraction power of a shopping district or a particular store:  Major shopping centres like Chandni Chowk in Delhi, Colaba in Mumbai and Commercial Street in Bangalore attract customers from far off, while small shopping centres located in colonies attract customers from immediate neighborhood. Quantitative and qualitative nature of competitive stores Nature of zoning regulations Direction of spread of the city

8. 3.  Selection of a Specific Site Site selection  is the process of identifying, evaluating and choosing an optimal location for a business or project. It involves a careful analysis of various factors to determine the optimal site for each project, including facts such as market dynamics, competition, accessibility, infrastructure, and regulatory requirements.

9. Location options For a retail store, location options refer to potential places where the store itself could be situated. Here are some common location options for retail stores: High Street Location A "high street" location in the context of retail refers to a prime commercial area typically found in urban or suburban settings. High streets are characterized by a concentration of retail stores, restaurants, cafes, and other businesses lining a main thoroughfare or street. Linking Road – Mumbai Colaba Causeway – Mumbai Park Street – Kolkata Janpath Market - New Delhi Khan Market - New Delhi MG Road - Pune

10. Features of ‘high street location’ Diverse Retail Options Pedestrian-Friendly Environment Historic or Architectural Charm Local Businesses and Independent Shops Cafes and Outdoor Seating Accessibility and Public Transportation Signage and Branding

11. A "free-standing location" in the context of retail r Free-standing location s to a standalone retail establishment that is not part of a larger shopping complex or shared building A "free-standing location" in the context of retail refers to a standalone retail establishment that is not part of a larger shopping complex or shared building. This type of retail store stands alone, physically separate from other retail  stores. It does not enjoy the same benefits that shopping  centers  offer from the  stand point that customer of a  free standing retail store  must have made a special trip to  get there. Shoppers are not “just next door” and decide to walk in as they could in  a mall or strip center.  Freestanding locations  constituted about 22 percent of all  retail space, and a recent survey of retailers shows that this category leads all  others for future importance.

12. Shopping Centre/Mall Shopping Center: A shopping centre is a collection of independent retail stores, services, and a parking area conceived, constructed, and maintained by a management firm as a unit. Shopping centres may also contain  restaurants ,  banks ,  theatres , professional offices, service stations, and other establishments. Shopping centers can vary in size and layout, ranging from malls to large outdoor complexes. A mall, short for shopping mall, is a large indoor shopping complex that houses a wide range of retail stores, restaurants, entertainment facilities, and sometimes office spaces, all under one roof. Malls often feature common areas, atriums, and food courts, providing a centralized shopping destination for consumers.

13. Phoenix Mall,Bangalore

14. Select CityWalk

15. DLF Mall of India

16. Features Size and Layout Variety of Retail Stores Dining Options Entertainment Facilities Anchor Stores Common Areas and Amenities Parking Facilities

17. Types of Retail Store location Solitary sites "Solitary sites for retail" typically refer to standalone retail locations or stores that operate independently, without being part of a larger shopping center or complex. These types of sites can vary widely depending on the needs and preferences of the retailer, the target market, and the local zoning regulations. It can be tucked away in a neighborhood or right off a busy highway. Free-standing locations come in many sizes and can be appropriate for any type of retail business. Pros of Solitary Retail sites Few or no restrictions from landlords Reasonable cost per square foot Limited immediate competition Cons of Solitary Retail sites Local zoning may restrict retail activities Lack of foot traffic Requires regular  marketing  to attract customers

18. 2) Unplanned shopping areas These are the locations of retail stores which have evolved over a long period of time and have multiple outlets in nearby proximities. The advantages of having unplanned shopping areas are that there is very high pedestrian traffic during working hours and also because of near by residential areas. This ensures a constant pull of customers. The disadvantage of having unplanned shopping area is that there is a threat of shoplifting and there are high chances of traffic blocking because of the unavailability of parking facilities.

19. 3) Planned shopping areas Planned shopping areas are carefully designed commercial spaces that incorporate multiple retail outlets, restaurants, entertainment venues, and sometimes residential spaces into a cohesive development. These areas are often created with a specific vision in mind, aiming to attract shoppers, tourists, and residents alike. Pros of Planned shopping areas Lots of foot traffic Anchor of community shopping Less advertising needed for customers to find you Cons of Planned shopping areas Immediate competition from other stores Regulations and rules Higher rent than other retail locations

20. TECHNIQUES FOR LOCATIONAL ASSESSMENT There are many techniques used in choosing a store location. Some of the techniques used in locational choice assessment are as follows: 1. Judgmental Technique : This approach relies heavily on  gut feelings  and  environmental scanning . It involves assessing various factors and making decisions based on intuition and experience. Imitation of Competitors Market Potential Assessment Proximity to Complementary Services Customer Footfall

21. 2. Systematic screening technique- Where the new/existing retailer assumes the size of the market area using a general rules of thumb survey of current customers. Retailers observe and map actual customer footfalls. Data sources include point-of-sale queries and telephone numbers. The region is divided into zones, and market-related specific thresholds (based on distance from the store, per capita income, etc.) are identified and mapped. R elevant data for each criterion is gathered. This could involve using geographic information systems (GIS), census data, market research reports, foot traffic data, customer surveys, and competitor analysis.

22. 3. Market area analysis - Market area analysis focuses on understanding the characteristics, demographics, and dynamics of the geographical area surrounding a potential retail location. It involves gathering and analyzing data related to the population, demographics, socioeconomic factors, psychographics, competition, accessibility, and traffic patterns within the market area. Basically, Geo-demographic data (data on the median or average economic and demographic characteristics of inhabitants within small geographic areas), or Lifestyle data (data on the location and buying habits of individuals), or Geo-lifestyle data (data that draws inferences about the buying habits of the inhabitants of small geographic areas).

23. 4. Index of Retail Saturation(IRS) It measures the level of demand in a particular market on the basis of the population, consumer expenditure, competing retail space and a particular product or product area. This Index is based on the assumption that if a market has a low level of retail saturation, the likelihood of success is higher . The index of retail saturation (IRS) is calculated using the formula: = (H x RE) / RF, where H is the sales per square foot of retail space in the marketplace for a particular line of retail trade, RE is the effective retail space in the marketplace for that line of trade, and RF is the total retail space in the marketplace for that line of trade .

24. STORE LAYOUT AND DESIGN

25. Concept The store is the place where all retailing activities come together. It is the first level of physical contact with the customer – before the customer makes an actual purchase decision – whether to buy from the retail firm the retailer’s private brand or other known brands. The store represents the best opportunity for the retail firm to develop a meaningful dialogue with its customers. The store has two primary roles – to create a proper store image, and – to increase the productivity of the sales space.

26. STORE LAYOUT MANAGEMENT A retail store layout is an integral part of a retail management strategy. It refers to -the design of a store floor plan and -the placement of displays and fixtures intended to influence customers’ experiences, movements, pace, behaviors, and purchase decisions. A store layout strategy also involves placing similar product categories and related items close to each other to generate additional cross category or cross-brand sales. It aims to evoke positive emotions and attitudes, so shoppers are more inclined to make purchases. Proper store design can help prevent shoplifting by placing high-value items, exits, and security stations in strategic locations.

27. Store Layout Plan A retail layout plan sets the foundation for designing a retail store. It covers various aspects of store design and shop planning with the following key components: • Merchandising Space • State of the Facility • Display and Fixtures • Customer Flow • Checkout Areas

28. Types of Store Layout A store may benefit more from some layouts than others, depending on elements like the size of the store and the types of products you sell. Grid Store Layouts The grid layout is the traditional retail store floor plan that everyone is most familiar with. Almost every grocery store, pharmacy and convenience store uses a grid layout. In most cases, a grid layout design has several long aisles. The store will also usually place impulse-buy items at the front of the store and other items near the back. In this way, a grid layout walks customers by impulse-buy items on their way to and from the products they really need.

29. 2. Herringbone Store Layouts A herringbone layout is essentially a variant of a grid layout, best suited for smaller spaces. The biggest difference is that there’s essentially only one pathway for browsing the store. Customers come in one end and checkout at the other, and between those two points are tightly packed aisles of products. A single main walkway runs between the entrance and checkout. The advantage of this model is that you can still create plenty of display space, and as with the grid layout, it’s intuitive and simple to navigate–so long as you’ve organized your products well.

30. 3. Loop layout/ Racetrack A loop layout is just like it sounds. It’s a circuit that loops around your entire store, with merchandise displayed in the center and outer edges. When customers enter the store, they can go left or right, and that’s it. The path is fixed, which gives you maximum control over how customers experience your offerings.

31. 4. Free-flow layout A free-flow store layout gives retailers the creative license to design a greater range of experiences. It isn’t driven by an intent to maximize display space or drive customers toward specific pathways. In fact, a free-flow layout has no defined pathways, and customers can maneuver around displays and through departments however they like. Retailers may adopt layouts like Q-layout, S-Layout, Or a Y layout

32. Mixed layout Depending on the industry and brand, retailers may find that no one store layout perfectly fits the catalog or the kind of experience retailer want customers to have. thousands of SKUs you need to display, but some of your product categories deserve a dedicated showroom. Or you want separate spaces to invite curiosity and encourage imagination.

33. Store Image and Space Productivity There are many factors and detailing of which needs to be taken care of in the store layout design. all these factors and details need to finally serve the two major objectives viz. Store image and space productivity. Store image refers to the overall perception or impression that customers have of a retail store. It encompasses various elements such as the store's layout, design, ambiance, cleanliness, customer service, branding, and the quality of products offered. Space Productivity : Space productivity in retail refers to how efficiently a store utilizes its physical space to generate sales and profits. It involves analyzing the sales generated per unit area of the store, such as sales per square foot or square meter.

34. Elements of Store Image and Space Productivity

35. Exterior Design The  exterior design of any retail store  must protect the interior from the outside elements (heat, dust, humidity, light etc.). Just as  important, it also serves to convey information to potential customers. The  exterior is first part of the store that potential customers see. They will determine  from the outside whether or not they wish to enter and shop. It is critical that the  outside of the store gain the attention of customers and entice them to enter.

36. Components of Exterior Design New Building versus Existing Facility The decision to build a new facility or seek existing space is a critical  element in exterior design planning. Each option has its advantages. Building  allows the retailer to design all aspects of the exterior and interior. However, this  option may be limited by location availability, time, or cost. Colour  and Materials The exterior  color  texture of a store give a lasting first impression to the  consumer.  It is important that the exterior look and “Feel” right to the  shopper. The  colors  and material should express the image of the store.

37. Signs Effective use of signs identifies the nature of the business, build a  corporate identity, communicates an image, ties the company to its advertising  through the use of a logo, and attracts to the store . Companies find that effective signs have individual letters  that are coated in tough plastics and illuminated from within by neon tubes. 

38. Windows The main purpose of windows is to attract attention and create an image to  potential customers standing outside. Humor, theatrical flair, color, motion, or  sound playing outside the windows work well to increase the effectiveness of the  display. One of the biggest advantages of display windows is the ability to  dramatically affect the exterior of the store.

39. The Store Entrance One of the first and most striking impressions customers get of a store is  the one they receive as they go through the front door. An entrance should be  more than a device to keep people out of the store, to encourage them to come in,  or to protect against the elements. An entrance should have character, and it  should say to prospective customer, “Please come through the door where you will  be treated with courtesy and friendliness and served to the best of our ability.”  The entrance might be graceful and elegant or dull and functional; in any case, it  should be compatible with the store design and provide an easy way to enter.

40. Lighting : Exterior lighting fixtures serve both functional and aesthetic purposes by illuminating pathways, highlighting architectural features, and enhancing the ambiance of outdoor spaces. Furniture and Fixtures : Outdoor furniture, fixtures, and accessories such as benches, tables, umbrellas, and decorative accents contribute to the functionality and visual appeal of exterior spaces

41. Significance of Exterior Design of a retail Attracting Attention Brand Image and Identity Creating a Memorable Experience Establishing Credibility and Trust Differentiation and Competitive Advantage Enhancing the Overall Shopping Experience

42. Interior Atmospherics Interior atmospherics in retail are the  controllable characteristics of retail space  which attract customers to enter the store, shop, and purchase. They include aspects such as  lighting, ambient sound, merchandise layout, flooring, smell, temperature, etc   Philip Kotler  first identified the use of design atmospherics as a marketing device in 1973. Many retail giants will use elements of atmospherics to help identify their retail brand and set it apart from competitors . The exterior atmospherics refers to the aspects like store front, display windows, surrounding businesses, look of the shopping center etc., while interior atmospherics refer to aspects like lighting, color and dressing room facilities that enhance the display and provides customer with relevant information.

43. The physical surroundings, in service settings such as retail outlets, are vital signs to service quality expectations. Some of these are: a) The choice of fixtures, decor and signage can greatly alter consumer perceptions of a store. b) Signs indicate services offered and often hang above or behind the service counters. Effectively placed signs can help to reinforce customers in their role in service encounters. c) Uniforms, or similar attires for employees, help alleviate customer anxiety as they feel embarrassed to ask if somebody works there. It also reassures customers that the service employee is a professional. d) Inexpensive and cheap fixtures may indicate that the retailer cuts corners, while overly expensive fixtures may indicate that the retailer is making large profits and over-pricing products. Hence, quality of fixtures is a symbolic cue to the consumers. e) In-store elements such as color, lighting, and music may have a bigger effect on purchase decisions than other marketing stimuli such as advertising or point of-purchase displays. f) Background music enhances customer perception of the store’s atmosphere and influences the amount of time a customer spends in a store.

44. Role of Atmospherics Planning Enhances the image of the retail outlet Attract new customers Creates a definite USP Generates excitement Facilitates easy movement inside the store Ensures optimum utilization of retail space Reduce product search time for the customer Reinforces the marketing communication of the outlet Influences the service quality experience

45. Visual Merchandising

46. Introduction Visual merchandising is the process of planning, designing, and displaying products to highlight their features and benefits. Its goal is to attract and motivate customers to buy something.

47. Visual merchandising can also be interactive, using technology like augmented reality or touch screens to enhance the customer experience

48. Why is visual merchandising important? Higher sales- Better customer experience and more sales are the core of visual merchandising. Customers spend more time in store-  In-store experiences can create “touch moments” where people interact with merchandise. Improve customer experience :  Customer experience  is vital to running a successful business and visual merchandising customers find what they’re looking for easily.  Sell targeted items:  Visual merchandising helps highlight these targeted items and thus help sell them more. Influence Buyer decisions:  Visual merchandising also involves using neuromarketing techniques to influence buyers’ decisions by appealing to their unconscious minds. 

49. Elements Of Visual Merchandising All the elements of the store can play a role when it comes to creating a visual impact on the consumer. The major elements of visual Merchandising can be categorised into following : Store Layout Store Ambience Store Narrative What Is Visual Merchandising? - Importance, Elements, & Examples – Feedough