Solved Assignment July Dec 2016

MS-612(Sample Copy)

Course Code
Course Title
Assignment Code
Assignment Coverage

MS - 612
Retail Management
MS-612/TMA/SEM - II/2016
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1. a) You are advised to undertake literature review (secondary data) from various sources pertaining to the Indian retail
sector. Based on the data so obtained ascertain the major factors that have contributed in driving the growth of the sector.
Besides make a list of the challenges that the sector is currently facing and offer possible remedial measures to overcome
the same. (you can make assumptions accordingly).
The word retailing has its origins in the French verb retailer, which means to cut up, and refers to one of the fundamental
retailing activities which is to buy in larger quantities and sell in smaller quantities. For example, a convenience store would buy
tins of beans in units of two dozen boxes, but sell in ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------organizations.
A
generally
accepted definition of a retailer is 'any establishment engaged in selling merchandise for personal or household consumption and
rendering services incidental to the sale of such goods'.
There are, however, many businesses that carry out retailing activity that are not in themselves classified as retailers. For
example, a factory may engage in retailing activity by ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------away from these retailers in a
carrier bag. The consumption of the service products coincides with the retailing activity itself.

The major factors responsible for the growth of organized retailing in India are as follows:
Organised retailing is a recent development. It is --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- of retail revolution.
Retail Industry, one of the fastest --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- has become the most attractive, emerging retail market in the world.
Healthy economic growth, changing demographic profile, ----------------------------------------------------------------------------------------------------------------------------------------------- are driving growth in the organised retail market in India.
1. Growth of ------------------------------------------------- consumers:
In India the number of middle -------------------------------------------------------------------------------------------------------------------------------------------------------- greater disposable income has given opportunity of retail industry to grow and prosper.
They expect quality products at decent ------------------------------------------------------------------------------------------------------------------------------------------------- to the customers. Hence this has resulted into growth of organised retailing in India.
Growing consumerism would be a key driver for organized ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ accelerating the convergence (meeting) of consumer tastes.
2. Increase ------------------------------------- women:
Today the urban women are literate and qualified. --------------------------------------------------------------------------------------------------------------------------------------------------------------------- of the working women is different from the home maker.
They do not have sufficient ------------------------------------------------------------------------------------------------------------------------------------------------------------ one-stop shopping Modern retail outlets therefore offers one store retailing.
3. Value for money:
Oganised retail deals in high volume and are able to enjoy economies of large scale production and distribution. They eliminate
intermediaries in distribution channel.
Organised retailers offer quality products at reasonable prices. Example: Big Bazaar and ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- sector.
4. Emerging rural market:
Today the rural market in India is facing stiff competition in retail sector also. The rural market in India is fast emerging as the
rural consumers are becoming quality conscious.

Thus due to huge potential in rural ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of employment after agriculture, which has the
deepest penetration into rural India.
5. Entry ---------------------------- sector:
Large business tycoons such as -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- are in a position to provide quality products and entertainment.
As the corporate the Piramals, the --------------------------------------------------------------------------------------------------------------------------------- Crosswords, Shoppers Stop, and Pantaloons race to revolutionize the retailing sector.
6. Entry ---------------------- retailers:
Indian retail sector is catching ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. This further is responsible for boosting organised retailing.
7. Technological impact:
Technology is one of the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------consciousness of the consumer about product quality and
services.
One of the major technological innovations in ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------products online with the help of Internet.
8. Rise in income:
Increase in the literacy level has resulted into ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- not only in the cities but also in towns and remote areas.
As a result the increase in income -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------structure. Today, people are willing to try new
things and look different, which has increased spending habits among consumer.
9. Media e--------------------------------:
There has been an explosion -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------are demanding more choice and money value services
and conveniences.
10. Rise of consumerism:
With the emergence of -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, time, location etc. are the important factors for the growth of
organised retailing in India.
The retail industry is divided into organised and un-organised sectors. Organised retailing refers to trading activities undertaken by
licensed retailers, that is, those who are registered for sales tax, income tax, etc.
These include the corporate------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, convenience stores, hand cart and pavement vendors.
It is important to understand how ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------stores, and bazaars, which together form the bulk.

Challenges of Retail Industry in India-

Expansion vs. Job Market

The industry is facing a shortage of middle management level professionals. Major retailers are hiring aggressively from the
similar and smaller organizations by ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- to produce 2 million jobs in the coming 3 years. There also exists a possibility that
the retail sector would become a poaching ground once the number of domestic and international players enters the industry.
Supply Chain Management
The retail scenario is characterized by logistical ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and inventory, management of point sale (POS) data. Retail majors are
under serious pressure to improve their supply chain systems and distribution channels alld reach the levels of quality and service
desired by the consumers.
Frauds in Retail
It is one of the primary challenges ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------sector would increase, the number of thefts, frauds, discrepancies etc. in the system
would also increase.
Challenges with Infrastructure and Logistics
Lack of proper infrastructure and distribution channels in ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Highways have to meet
global standards. Airport capacities and power supply have to be enhanced. Warehouse facilities and timely distribution are other
areas of challenge. TO fully utilize India's potential in retail sector, these major obstacles have to be removed by the parties
involved in retail industry.

SummaryAdvances in technology, like the Internet, have helped make retailing an even more challenging and exciting field in recent years.
The nature of the business and the way retailing is done are currently undergoing fundamental changes.
However, retailing in some form will always be necessary. For example, even though the internet is beginning to make it possible
for manufacturers to sell directly to consumers, the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------services like hair styling, will need
to have face-to-face interaction with the consumer. But even with products, consumers often want to see, touch and try them
before they buy. Or, they may want products immediately and won't want to wait for them to be shipped. Also, and perhaps most
importantly, in many cases -------------------------------------------------------------------------------------- purchase. Everything that the
retailer can do to make the shopping experience pleasurable and fun can help ensure that customers come back.
==========================================================================================

b) What do you understand by the term Wheel of Retailing? Pick up any two examples of your choice to
explain the same.
The Wheel of Retailing is a theory to explain the institutional changes that take place when innovators enter the retail arena.
The Wheel of Retailing concept states that --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------- develops for new low-price discounters to develop, and the process
continues with the next generation.

The changing environment from all ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Retail sector is one of the most dynamic sectors
only because the external factors affect retailing a lot.
Other than the external factors, other changes have ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------for web based business model of
retailing. Thus, it is not a surprise that a new and novel retail chain pops up, thrives for a small period of time, and then is taken
over by a larger retail chain. This is the basic concept behind Wheel of retailing.
The wheel of retailing concept ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------this concept, the idea itself intends to describe how the
retail institutions transform during their evolutionary life cycles.
Step 1 of the Wheel of ------------------------------------------------------------ in the market
The theory pays attention to the new retailers ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------competitors if the entry barriers are not
high enough.
Example When book stores like ----------------------------------------------------------------------------------------------- all the books
under one roof with amazing discounts. This was the first stage for them in the wheel of retailing.
Step 2 of the ------------------------------------------ the market
During the time and while they gain more ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- enter the market with low prices, their main
target is represented by low income population.
Example Barnes and nobles then started expanding the market with more and more stores so that they increased their sale,
their brand value and ultimately, their margins started increasing as well.
Step 3 of the Wheel of retailing ----------------------------------------- attracting margins.
In this stage of the Wheel of retailing, the company is already in an established position and hence the rates are enough to get a
decent margin. Because of the margin it is getting, the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, at this stage itself, other
competitors start preparing or analyzing the market and think on how to penetrate this market.

Example Once Barnes and nobles ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------nobles. The margins

were high and the going was good.
Stage 4 of Wheel of retailing The entry by ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, extra warehouse, etc. Ultimately,
these retail businesses might emerge as a high cost price service retailer.
This is done in order to recover its ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- to follow the same steps as the previous one before.
Example When Barnes and nobles established itself ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- was introduced in the picture.
Based on this, the wheel of retailing -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------represented by one state and return to the same
state after some time in the future, the theory is perceived as being cyclical.
Challenges in the Wheel of retailing concept
There are a few limitations concerning this theory in -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------such as boutiques, vending
machines and convenience stores which are being operated with a high margin basis from the entry phase.

Case ExampleA restaurant started in a temporary location would be ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------can start generating some profit
since it is operating in a virgin market it will look to increase its market share.
However with passage of time when a new -------------------------------------------------------------------------------------------------------------------------- a lower price in order to retain its customers it will bring down its prices back to where its earlier ones.
Example 2There are also unsuccessful examples of retailers ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------transition remains to be seen, as the
broader macroeconomic climate remains tenuous.
Many companies aspire to follow the path ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------themselves out of the low- to mid-price
market and are eventually replaced by new low-price market competitors.

2. a) Who is a retailer and what makes him significant in the whole process of retailing. Discuss with suitable
example.
The word retailer has been derived ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- from the producer to the consumer.
The retailers purchase goods in bulk -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- from the manufacturers or through a wholesaler.
The Supply chain
Manufacturers

........... Wholesalers.............

Retailers

................

End User (Consumer)

Manufacturers - Manufacturers --------------------------------------------------------- help of machines, labour and raw

materials.
Wholesaler - The wholesaler is the one ---------------------------------------------------------------------------------- to the
retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end users.

Retailer - A retailer comes at -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- users as per their requirement and need.
The end user goes to the --------------------------------------------------------- and demands. The complete process is also called as
Shopping.
Retailers undertake ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in suitable packages in accordance with the needs of customers.
Neighbourhood small retailers still continue to be -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------give preference to that retailer for
purchasing small things like grocery items and other small things.
Small retailers resides in locality contain kirana items and other daily uses things and people needs those things daily for example
milk packets, cold -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------from the nearby shop.
Characteristics
The followings are some of the essential characteristics of a retailer:

He is -------------------------------------------------- of distribution.
He purchases goods ----------------------------------------------- in small quantity to the consumer.
He deals --------------------------------------------------------------- of merchandise.
He develops ----------------------------------------------------------- the consumer.
He aims at ----------------------------------------------------------- to the consumer.
He has a ------------------------------------------------ the market.

Functions
Retailers ----------------------------------------------------. These are:

The retailer buys a variety of ----------------------------- performs two functions like buying of goods and assembling of
goods.
The retailer ---------------------------------------------------------------------- a consumer.
He develops ---------------------------------------------------------------------- goods on credit.
He bears the risks in ----------------------------------------------------------------------------- bears risks on account of fire, theft,
deterioration in the quality and spoilage of goods.

He resorts to standardization and ------------------------------------------------------------------ by the customers.

He makes arrangement ------------------------------------------------------------- to both wholesaler and the consumer.

Service of a Retailer
A retailer ------------------------------------------------------------------------------ to the wholesaler.
To Customers:
He provides ready stock of ----------------------------------------------------------------------------- the customers.
He keeps a large ------------------------------------------------------------------------- variety of choice to the customers.
He relives the --------------------------------------------------------------- he himself holds large stock of goods.
He develops ----------------------------------------------------------------------------- giving them credit.
He provides ----------------------------------------------------------------------- the customers.
He informs ---------------------------------------------------------------------------- to the customers.
He makes ----------------------------------------------------------------------------------- complaints.

To Wholesaler:

He gives valuable -------------------------------------------------------------------------------- goods to the wholesaler.

The retailer maintains ---------------------------------------------------------------------- regard to maintenance of direct contact.
He helps the ------------------------------------------------------------------------------------------ to the consumer.
He is ------------------------------------------------------------------------- and the consumer.
He creates demand ------------------------------------------------------------------------- to the consumers.

Examples of Retail Companies in India1. V Mart was first incorporated as Varin Commercial Private Limited under the Companies Act in 2002 in West Bengal. VMart
Retail primarily operates in Tier II and -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------stores across 91 cities in 12 states and union
territories, with a total retail area of 7.74 thousand square metre.
VMart's business can be classified in three -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------) by 2020 with smaller towns expected to
be its key growth drivers.
2. Liberty Shoes has been operating for more ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, which includes major international
fashion destinations like France, Italy and Germany. It has a worldwide distribution network of 150 distributors, 400 exclusive
showrooms and more than 6,000 multi-brand outlets. The companys commitment to quality is also evidenced by the ISO 9001:
2000 certification.
3. Reliance Fresh is the convenience store format which forms ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- progress towards
building an entire value chain starting from the farmers to the end consumers.
Reliance Fresh now operates 1,691 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------also owns the iStore, which is a one-stop-shop for
all Apple products and services
==========================================================================================

Elaborate on the major activities that a retailer undertakes in the following situation and why?
i) Multi brand mens readymade Apparel store.
People are crazy for fashion and to support them market is also full of fashion items made for men and women's. In fact women
fashion clothing is a huge industry and it seems it's very much never ending.
Indian organised retail industry is poised ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------for managers to understand such practices
and understand challenges.
In India, clothing retail accounts for 36% of organised ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------escape from reality for Indias
masses, and set the popular fashion trend. Bollywood fashions have become pan Indian. They affect various sectors of the market
including clothing, footwear, weddings and fashion accessories.
In the large urban centres, apparel retailers, like Shoppers Stop, Westside and Pantaloon have popularised their private labels,
which have attracted urban shoppers. Westside carries ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Circle', while Pantaloons offers
a `Green Card' Rewards programmes, Westside has `Club West' to woo the customers. Customers look to design and fit of the
clothes, and use the shops name as a quality standard.
It is clear that all retailersreinforce the fact that seasonality ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in a year wherein discount
given is upto 50% of the MRP(Maximum retail price).
Retailers of both mulitbrand and exclusive, use loyalty ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------card- Inner
circle.
The
conditions to be fulfilled is not very clear to a card member. For example, if any other promotions are prevalent then purchase
made during those promotions would entitle for the card reward points or not was not very clear.
All the stores used in store media to announce ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the offers. Whereas variety of media
used would enhance footfalls to the store and trigger word of mouth.
Retailers use joint sales promotion tieing up with ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------customers, higher visibility etc.
In terms of type of consumer sales promotions, almost everyone used discount, coupon programmes and few used lucky draws,
contests, gift, buy one get one free type of promotions. Only Pantaloon had a unique scheme of an exchange offer which is
normally prevalent in durable goods industry. Relating it to a cause- donating old pairs collected in exchange scheme to charity
would enhance the brand value among the consumers.
Every retail outlet measures impact of sales ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------overlap is not addressed. Rich database
that a retailer possesses is yet to be explored for further diagnosis and building future promotions.

ii) Chain of computer training centers.

One of the most powerful strategic planning tools ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of the planning process and the completed action plan.
The ability to effectively use a computer has become a ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------training company, you can
utilize your specific expertise to deliver a rewarding service to your clients.
Gain proficiency in various computer programs that are useful in the business world. Some such programs, such as word
processing, presentation, database and spreadsheet ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in such specialized programs can
prove even more lucrative than proficiency in more common programs, as the supply of professionals skilled in their use is
limited.
Develop a curriculum. Simply understanding how to ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------into segmented units that cover
the most essential aspects of the programs. Place items of instruction in a logical and understandable order.
Locate a teaching venue. Depending on the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------their employees while at work.
Create a marketing plan. Detail all of the advertising ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------spending for such advertising.
Establish your business as a legal entity. If you are ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------may mean that you only need to
set up an assumed name -- or DBA -- instead of an LLC or corporation.
Set up a business website. Even if you do not plan on ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- applicable certifications you
have.
=======================================================================================

b) Discuss the major considerations involved in strategic planning process for retail business.
For the purpose of developing retail strategies, retailers ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of strategic decisions for the
future success of the business, a systematic approach is essential.
The strategic planning process--------------------------------------------------------------------------- particular store takes proper
shape, is normally divided into following steps:
1. Deciding the ---------------------------------------------------------- and objectives,
2. ------------------------------------------------------- analysis,
3. Formulation ------------------------------------------ strategy

4. Strategy --------------------------------------------------------------- control.

1. Deciding the stores philosophy, mission and objectives:
The retail strategic planning process starts -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------will be used to provide satisfaction to
customers and how the store can compete in the target market vis-a-vis its competitors.
The mission also involves the way of stores -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------statement. For example, Vishal Mega
Marts, they have philosophy of customer satisfaction through manufacturing to retailing.
This reflects not only the way it tends to treat its -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, commission saved is distributed to
customers by way of low priced items.
Once the organization mission has been -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------seeks to achieve by its USP (Unique Selling
Preposition) and operations.
The stores objectives may be classified into two parts:
(i) External ---------------------------------, and
(ii) Internal ---------------------------- Objectives.
External store objectives are those -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, e.g. to raise the store turnover by 15% in the
coming year.
2. Situational Analysis (SWOT Analysis):
The objective of doing stores situation -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------study their external (environmental) and
internal environments.
External Analysis:
The purpose of examining the stores -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the macro-environment of retailing industry and
the task environment.
Under ----------------------------------------------------- these parameters:
(i) Economic --------------------------------------- retailing,
(ii) Political --------------------------------------- retailing,
(iii) Legal --------------------------------------------- retailing,
(iv) Socio-cultural ------------------------------------- retailing,
(v) Technological ------------------------------------retailing, and
(vi) International ------------------------------- retailing.
The stores task --------------------------------------------------------------------------------- competitors, suppliers and customers.
Internal Analysis:
The objective of studying internal environment of -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and critically analyzes how
effective these resources are used.

These resources for the purpose of examining are normally grouped into human resources, financial resources, physical resources
(assets) and intangible resources (goodwill, image etc).
The types of ------------------------------------------------------ resources are:
Human resource:
(a) Is present -------------------------------------------------------------------- for future action?
(b) Are the employees ---------------------------------------------------------- assigned to them?
(c) Are ------------------------------------------------------------------------ to store?
(d) Are the ------------------------------------------------------------------- and regular?
(e) Are the ------------------------------------------------------------------- assigned tasks?
Financial resource:
(a) What is the ----------------------------------------------------------------- activities?
(b) What is ------------------------------------------------------------------------------------ requirement/ emergency?
(c) How -------------------------------------------------------------------------- financial policies are?
(d) What is ------------------------------------------------------------------------- assets?
(e) What are ---------------------------------------------------------- case of negative cash flow?
Physical resources:
(a) What is --------------------------------------------------------------- assets?
(b) What ---------------------------------------------------------------unused assets?
(c) How ------------------------------------------------------------------- systems?
Intangible resources:
(a) What is the ----------------------------------------------------------- management?
(b) How ------------------------------------------------------------------ cell?
(c) How ----------------------------------------------------------------------- system?
(d) How ----------------------------------------------------------------------- are?
(e) What ----------------------------------------------------------------- manager?
(f) Are customers ----------------------------------------------------- products?
3. Formulation of Retail Strategy:
In this stage, after analyzing the stores ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------market segmentation instead of the market as a whole.
Retail Positioning is a plan of stores -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, is a step by step plan to create and maintain a
unique and everlasting image of the store in the consumers mind.
This process reveals the fact that understanding -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------items that are new for them with the
perception that if it is new, it will have some extra/added features.
Retail ------------------------------------------------- under these circumstances:
(i) By ---------------------------------------------------------- from its competitors,
(ii) By offering high level ----------------------------------------------/no cost, and
(iii) By adopting ------------------------------------------------------- policies.
Retail Mix is the blend of various retail ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------elements for a perfect retail mix.
The main elements -------------------------------------------------- has to face are:

i. Stores --------------------------------ii. -------------------------------------- assortment

iii. Pricing --------------------------------------iv. Customer ------------------------------------- mechanism
v. Visual --------------------------------------vi. Personal ----------------------------- efforts
vii. Advertising -------------------------- and
viii. Stores internal and external environments.
4. Strategy Implementation and Control:
It is concerned with the designing and ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------retail activities. For example, the coordination
between the marketing and sales promotion department is a must for sales promotion to make success.
Further, the spirit of team work is an ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------promotion employees are not taking it seriously
or are ineffective, result will not be up to the mark.
The implementation of new retailing strategies ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------positive steps to reduce this resistance
to change and to convince the employees that it in a long term will be beneficial for both the store and employees.
The positive steps include the following:
(i) Inspection,
(ii) Detection, and
(iii) Correction.
It means after implementing the retail strategies, ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to be corrected with immediate effect
without any further loss to store.

3. a) The Commercial success of every retail business lies in the right choice of location. Justify the above
statement with two retail business of your choice by evaluating the criteria for choosing a specific location that
contributed for the success of the store.
Yes, this is true ------------------------------------------------------------------------- in the right choice of location. The importance of
the location decision is due to the following factors. Location is a major cost factor because it
1. -------------------------------------------------------- investment
2. Affects ------------------------------------------------- costs
3. Affects ------------------------------------------------------, e.g., salaries etc
Location is a ------------------------------------------------------- business because it
1. Affects the amount ----------------------------------------- traffic
2. Affects -------------------------------------------------- business
The terms location and site are often used ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------operations and
customer
service
characteristics. For example, a designer mens store located in an up market shopping centre or a mall near posh residential
colonies, housed in an attractive building with adequate parking facilities.
Levels of Location Decisions and --------------------------------------------------------------- decision, basing on three aspects:
1. Selection of --------------------------------------2. Selection of ----------------------------------- within a city
3. Identification --------------------------------------- site

Some major Issues DemographicsThere are two important angles to -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. The demographic profile you've developed of
your target market will help you make this decision.
Then, take a close look at the community. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------a downturn could be a death knell for your company.
Foot TrafficFor most retail businesses, foot ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------traffic meets your needs.
Accessibility And ParkingConsider how accessible the facility will be for ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------need adequate roads and loading docks
if you're going to be receiving freight on pallets.
Find out about the days and hours of service and ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------you access, but the air conditioning is
turned off so you roast in the summer and freeze in the winter.
Be sure, too, that there's ample ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and adequately lighted.
CompetitionAre competing companies located near ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------competitor is only going to make your
marketing job tougher, look elsewhere.
ProximityTo Other Businesses Take a look at what other -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------it may be convenient and efficient for
you to be their customer.
Second, think about how they will enrich -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------conveniently located?
Ordinances Find out if any ordinances or zoning ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and future needs. It's a good idea to hire an
independent engineer to check this out for you, so you're sure to have an objective evaluation.
Utilities And Other CostsRent is certainly the major portion of your ongoing facilities expense, but it's not all. Consider extras such as utilities-they're
included in some leases, but not in others. If -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------it cost? What are insurance rates for the

area? Do you have to pay extra for parking? Make sure you consider all your location-related expenses, and factor them into your
decision.
Room For Growth Look at the facility with an eye to the future. It's generally unwise to begin with more space than you need, but if you anticipate
growth, be sure the facility you choose can accommodate you.
Example 1WENDYs STORELocation decisions affect processes and departments throughout the organisation. When locating new retail facilities, such as
Wendy's stores, marketing must carefully assess ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------facilities or relocating existing
facilities is usually costly; therefore, these decisions must be carefully evaluated by the organisation's accounting and finance
departments. For instance, when BMW located its manufacturing plant in South Carolina, the economic environment of the state
and the monetary incentives offered by its legislators ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------set of challenges because setting
up and managing facilities and employees in foreign countries can be extremely time consuming and difficult.
Example 2GENERAL ELECTRICS ENERGY DIVISIONGeneral Electric's Energy Division, WITH 4,700 EMPLOYEES, is one of the worlds leading supplier of power generating
technology, energy services, and management ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------shifted geographically over time and the relocation would provide better access to its customers.
The decision to relocate was made based on more favorable living conditions and climate in Georgia, along with other factors
such as the proximity of numerous electric -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------was that many current employees would
not be willing to relocate to the Atlanta area. However, Rice noted. "The quality of lifecheap housing, good recreation, good
cultural events, and climatewere such big draws -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and GE. Atlanta area saw an
increase in the number of jobs, while GE experienced sustained business growth. The situation truly has Rise happily whistling
Dixie.
========================================================================================

b) Define and discuss the term Merchandizing in retailing.

What makes merchandising a critical function in the growth of the retail business explain citing a suitable
example.
A merchandising business, sometimes called merchandisers, is one of the most common types of businesses we interact with
daily. It is a business that purchases finished products and -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to you. While the store
may have been required to purchase in large quantities, they offer the product to you in a small, personal-use size.
For instance, a wholesaler may offer deodorant ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to stay in business and offer you
products in the future.

Companies who provide services are not considered merchandising businesses, unless they offer merchandise as part of their
service. For instance, if you go to a tanning salon, the tanning session is considered a service. However, if the salon offers tanning
lotions, creams, and tanning enhancers, it could be considered a merchandising business because it has products available for you
to purchase
Merchandising is a branch of marketing theory and ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------behavior to accomplish this.
Merchandising is sometimes seen as -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to maximize traffic past profitable lines, and
maintaining visual displays and advertisements that turn traffic into sales.

Merchandising a critical function in the growth of the retail business

The first important step in retail merchandising is --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the retailer can afford to purchase at a given time, it may be
relatively easy to obtain a discounted unit price, making it easier for the retailer to be competitive in the local marketplace.
Once the goods are secured, the retailer must determine ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------others base the retail pricing
on factors such as the desirability of the items and the amount of competition from other retailers in the immediate area.
After setting the retail pricing, the process of retail merchandising moves on to the task known as setup and display. This process
is concerned with displaying the goods within the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------who are highly likely to make a
purchase. Quick sales lead to higher profits and the chance to secure more products that will result in more sales.
Marketing is an important aspect of any retail ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to approach the retailer first.
In order to be successful with retail merchandising, ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------from
the
competition
and
remaining in business for many years to come.
MERCHANDISING AS A PROCESS.
First, and most broadly, some view merchandising as an entire set of economic activities, conducted by firms that may be labeled
merchandisers, extending from an initial product ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is guided by what the company perceives as a market need, and this
need will dictate whether there is will be one uniform product or many variations, how it will look, whether it will be produced
seasonally or year round, and so on.
MERCHANDISING AS RETAILING.

Second, merchandising is sometimes seen as ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------advertisements that turn traffic into sales.
MERCHANDISING AS MASS MARKETING OF INTELLECTUAL PROPERTY.
A third and rather narrow notion of ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------companies also market these kinds of products.

ExampleThere are virtually thousands of examples of ----------------------------------------------------------------------------------------------------------------------------------------------------------, JCPenney, Kohl's, Michaels Crafts, Lowe's, Home Depot, and Toys R Us.
Is there a mall or shopping center near your home? It is likely full of stores considered merchandising businesses. Just walk down
the center aisle and turn your head to the right and then the left - you will see store after store offering merchandise for sale.
List of Common Examples of Merchandising
While most observers equate the -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------merchandising methods are among the most
powerful marketing tools available to businesses.
Free Samples
Delivering free samples is a highly --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to try out early levels before purchasing the full game.
Logo Items
Items decorated with a colorful logo are ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and can make a more memorable impression
than business cards or brochures.
Cross-Merchandising
The cross-merchandising method works ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------also can display complementary items in the
search results.
Limited-Time Offers
Customers love getting a deal. When they -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. These offers bring in people who want to
capitalize on the deal and, after experiencing what the company have to offer, may become repeat customers.

4. a) Why and how does pricing assume strategic significance in retail business? Briefly explain the most
commonly adopted pricing methods by retailer with suitable examples.
One of the most exciting and nerve------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------coupled with an intuitive feel for how you want
your brand and by extension your products to be perceived.

Price your products too low and you might get a ton of sales but you might find yourself going under when you tally up your
expenses at the end of the month.
When you price your products too -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------especially price-sensitive, then what will you do?
Ultimately, you'll have to -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------which direction will enable you to achieve profitability.
Keep in mind though that when you have a range of products, you can sometimes risk lowering prices for one as long as you also
sell products that are marked up higher.
A Simple Formula
Most retailers benchmark their -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------instances you'll want to mark-up your products lower
or higher depending on your specific situation.
Here is ---------------------------------------------------------------- your retail selling price:
Retail Price = [(cost of item) (-----------------------------------------------------)] x 100
So for example, say you wanted to ---------------------------------------------------------- how you would calculate your retail price.
Retail Price = [(-------------------------------------------------------------------Retail Price = [(15.00 55)] -------------------------------------------------Now that we've covered how to -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ahead of their competitors.
Manufacturer Suggested Retail Price (MSRP)
As the name suggests (no -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------started doing this was to help standardize prices of products
across multiple locations and retailers.
However, a lot of factors go into the end -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------find the more mainstream or conventional
the product, the more you can expect the prices to be standardized.
Keystone Pricing
This is a pricing philosophy that -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, there are a number of scenarios in which keystone
pricing may be too low, too high, or just right for your business.
If you have products that have a slow -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and easily available elsewhere, using keystone
pricing can be harder to pull off.
Multiple Pricing
Weve all seen this one in groceries ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------tactic is where a merchants sells more than one
product for a single price, a tactic alternatively known as product bundling pricing.

For example, -------------------------------------------------------------------------------------------------- Game Boy hand-held console, it

sold the most products when the devices were bundled with a game rather than individual products alone.
Discount Pricing
Its no secret that consumers love ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and attracting a more price-sensitive group of consumers.
Loss-leading Pricing
Did you ever walk into a store ---------------------------------------------- that one item but several others while you were at it?
If so, youve gotten a taste of what loss------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------theyll purchase while in your store.
Psychological Pricing
Retail is a numbers game and -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------psychological pricing.
Studies have shown that when merchants spend --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. For example, using $8.99 instead of $9.00.
However, when it comes to deciding which ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------an experiment on a standard women's
clothing item with the following prices $34, $39, and $44. Guess which one sold the most?
That's right, pricing the ---------------------------------------------------------------- price of $34.
Below Competition
As the name of this pricing strategy ------------------------------------------------------------------------------------------------------------------------------------------------------------------ pricing products below them to lure consumers into your store over theirs.
Above Competition
Carrying on from the strategy above, this is where -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. This works for Starbucks when
people pick them over Dunkin' Donuts and it's a scientifically proven fact as well.
Economist Richard Thaler's study looked at people hanging out on a beach looking for a beer to cool off with the option of
purchasing it at either at a run-down grocery store or a nearby resort hotel, and found that people were far more willing to pay
For example, if a Company A sets its prices above those of its competitors, the higher price could suggest that Company A's
products or services are superior in quality. Harley ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, have made quality among
motorcycle producers about equal, but pricing above the market signals quality to buyers, whether or not they get the quality
premium they pay for.

Anchor Pricing
This is another psychological tactic where you list both a sale price and the original price to establish the amount of savings a
consumer perceives to gain from making the purchase by taking advantage of the cognitive bias of anchoring.

The original price establishes it self as a ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------attention to it.

Theres never a black and white approach to pricing, its a moving target, and these are just a few options to consider when
deciding on what will work for your business.

Case ExampleEntrants often rely on pricing strategies ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------than established incumbent companies.
Complex pricing arrangements, however, prevent lower pricing from being a successful strategy in that customers cannot readily
compare prices with hidden and contingent ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------markets, where telephone billing is much simpler.
Another example is the computer industry. Dell, Fujitsu, HP, and many others personal computer makers offer bundles of
products that make it more difficult for consumers to sort out the true differences among these competitors. For example,
consumers purchasing an HP computer from the retailer, Best ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------from
a
personal
computer to a Macintosh, Apple announced in 2005 that it would begin selling the Mac Mini, a Macintosh that, as with PC
makers, bundles its iLife software into the mix. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of Apple's Mac Mini. The
complexity of these comparisons is what can make such new product pricing successful.
========================================================================================

b) Discuss the ethical responsibilities of a retailer? Explain how does it impact the overall business.
Retailers have realized the advantages of reflecting an ethical sense in business operations. The organizational environment plays
a major role in the kind of ethical sense the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------often undertake activities that are
beneficial to the society. Retailers are also taking measures for waste reduction, trying to recycle the materials used and are
switching over to environment friendly packaging materials.
Legislation governs the retail firm's operations --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Legal restrictions are imposed on
practices concerning pricing, product, promotion, distribution, trademarks and HR policies.
A retailer's professional conduct must be guided by the following:

The basic rule ------------------------------------------------------- to do harm.

The adherence ---------------------------------------------------- regulations.

The accurate --------------------------------------------------------- and experience

The active ----------------------------------------------------------- of ethics.

Honesty and Fairness

Further marketers shall uphold and ----------------------------------------------------------- retailing profession by:

Being honest ----------------------------------------------------------------------------- and the public.

Not --------------------------------------------------------------------------- to all parties involved.

Establishing equitable ------------------------------------------------------- and legal compensation for marketing exchanges.

Rights and Duties -------------------------------------------------- Exchange Process

Participants in the marketing exchange process should be able to expect that:

Services ----------------------------------------------------------------------- uses.

------------------------------------------------------------------------- and services are not deceptive.

Ensure that both parties --------------------------------------------------------------------- in good faith.

Appropriate internal methods exist ------------------------------------------------------ concerning purchases.

It is understood that the above would include, but is not limited to, the following responsibilities of the retailers:
Product development and management

Disclosure of all ------------------------------------------------------------------------ usage to the consumer.

Identification of any ------------------------------------------------------------------ materially change the product.

Identification of ------------------------------------------------------------------- features.

Promotions
Avoidance of ------------------------------------------------------------- advertising
Rejection of ------------------------------------------------------------------ sales tactics.
Avoidance of ----------------------------------------------------------------- or manipulation.

Distribution
Not manipulating ----------------------------------------------------------------- of exploitation.
Not using -------------------------------------------------------------------------- channel.
Not exerting ------------------------------------------------------------ to handle a product.

Pricing
Not -------------------------------------- fixing.
Not --------------------------------------------------- pricing;
Disclosing the --------------------------------------------------- any purchase

Market research
Prohibiting ------------------------------------------------------------ conducted research.
Maintain research ----------------------------------------------------- pertinent research data.
Treating ------------------------------------------------------------ suppliers fairly

Impact of ethical responsibilities on the overall business (With Examples)Ethical --------------------------------------------------------------------------------- to a business. For example, they may:

Attract ------------------------------------------------------------------------------------- and profits

Make employees want to stay --------------------------------------------------------------- increase productivity

Attract more employees -------------------------------------------------------------------- to get the most talented employees

Attract investors and ----------------------------------------------------------------------------- from takeover.

Unethical behaviour or a lack of corporate social responsibility, by comparison, may damage a firm's reputation and make it less
appealing to stakeholders. Profits could fall as a result.
Along with good corporate governance, ethical -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------business partners who work together with us.
Ensuring that employees understand the company's corporate values is achieved by the statement of 'Our Business Principles'
which makes clear the behaviour it seeks from employees.
Cadbury Schweppes' good practice was --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------corporate giving for 2003, with an investment
in the community of around 3of its UK pre tax profits.
Businesses that prioritise ethics over profits will see the benefits, writes Roy Jakobs, CEO of Philips, Middle East and Turkey,
in a recent article for Gulf Business.
According to Jakobs, it is not just --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------moral obligation to do what is right.
Being an ethical corporation is a serious business. It entails maintaining their morals in all their activities. But being ethical is not
equivalent to losses when it comes to profit. On the contrary, ethical business can bring great bottom line results, Jakobs points
out.
A company that operates by the laws of --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------region are making efforts in that direction,
trying to achieve better transparency and accountability on these matters. As more companies take a more ethical approach to
business and see the impact on the bottom line, their competitors will follow.

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