Intro to Retailing

Defining Retailing, Its impact & special characteristics Concept of strategic planning & application Why a foundation for retailer experience, customer service & relationship retailing

 Encompasses goods & services to consumers for personal, family or household use Modern retail is playing a vital role as a catalyst in driving consumption related growth in Pakistan More choice, convenience & broader social impact

Key Issues
How can we best serve our customers while earning a fair profit? How can we stand out in a highly competitive environment with so much choice? How can we grow our business while retaining a core of loyal customers

Tendency to think retailing is sale of tangibles Retailing also includes sales of services Does not have to involve a store or retailer Direct selling in homes & offices (Cotton & Cotton) Web transactions, vending machines,ATMs Mfg, importers, non profit & WS

Characteristics
Av amount of sales transaction ofr retailers is much < than for mfg Final consumers make many unplanned or impulse purchases Usually visit a store in spite of mail, phone & web sales

Retail Strategy
1. Define type of biz in terms of goods or services category & cos specific orientation(full service) 2. Long/short run objectives for sales & profit, market, image etc 3. Find the customer market to target on the basis of characteristics( gender, income) & needs g ads that show people ( product & brand preferences) 4. Devise an overall, long run plan that gives general direction to the firm & its employees 5. Implement an integrated strategy combining store locations, assortment, pricing, adv/displays 6. Regularly evaluate performance & correct weaknesses/p

Target Corp: Keys to Success Expect More- Pay Less@ Target

Growth Oriented Objectives Appeal to a Prime Market Distinctive Company Image ( Upscale discounter) Focus Strong Customer Service For Its Retail Category Multiple Points of Contact Employee Relations Innovation Commitment to Technology Constantly Monitoring Performance

T-Adapting to a difficult Economy

Running ads that show people spending more time at home Opening fewer new stores Paying more emphasis on Pay Less campaign Matching Wal- Mart prices wherever possible Adding more designers with special collection for Target Carrying more food items in traditional T stores Tightening credit term for customers

Customer Orientation

Retailer finds attributes & needs of its customers & tries 2 satisfy these needs to fullest

Coordinated effort

Retailer integrates all plans & activities to maximize efficiency

Valuedriven

Retailer offers good value to customers whether upscale or discountprices appropriate for level of products & CS

Goal orientation

Retailer sets goals & then uses strategy 2 attain them

The Total Retail Experience

Each encounter at a discount retailer, a neighborhood store, a full service firm have a critical commonality. They each encounter total retail experience( TRE) TRE includes all elements in a retail offering that encourages or inhibits consumers during their contact with a retailer. Many elements are controllable by a retailer, others not. If a part of TRE is unsatisfactory they will not purchase & may not patronize the shop Where is the fast in the fast food industry?. McDonalds Sea View drive thru takes 10-15 min

TRE ( cont)- Ethnicity/Khadi Case Study

In planning its strategy a retailer must ensure that all strategic elements are in place.TRE must be aimed at fulfilling segment expectations.(A discounter should have ample stock when running sales but not plush carpeting). Ethnicity /Khadi was launched in Ahmedabad ( Gujarat) to provide an organized retail platform for ethnic ware products at par with Western brands

Customer Service- Westside Cares*

The problem of intangibility- CS is affected by expectations & past experience, & peoples assessment of customer service depends on their perceptions- not necessarily reality *Customer complaints are resolved within 24 hrs, & stores have no- Q asked exchange policy If u Constantly deliver high, relevant products & experience, people will Q keep coming back. Todays reality is no one is loyal to only one brand or store

Relationship Retailing
1. Because its harder 2 lure new customers than to make existing oineess happy, a win-win approach is critical. For a retailer to win in the long run the customer must also win. Otherwise the retailer loses(shoppers patronize competitors) & customers lose (by spending time & money to learn about other retaileres) 2. Due tom advances in IT, its now much easier to develop a customer data base with info on peoples attributes & pat shopping behavior. Ongoing customer contact can be better, more frequent, & more focused