ESSENTIALS OF RETAIL STUDIESBM0208

RevisionOur last lecture…

Upcoming

NO tutorial next week (physical hr for ICA)Complete tutorial 11 & 12 on own & check

answers on pbwiki ICA 4 on 28 Jan (fri), 4.10 pm, LTD 6 (standby at

4pm- will start early if venue available.) ICA 3 project results will be released on pbwiki

on 2 Feb, 10am. Option: For review of project, you may see me at C311 10-11am as a group.

28 Jan (fri), 4.10 pm, LTD 6Wait outside LT at 4am. Start at 4.10 or 4.15 pm (wait for my cue)

3

Projector

Place bags here xx Place bags here xx

Place bags here xxPlace bags here xx

BH & BG - White Question Paper

MC & MD - Green Question Paper

BH & MC BG& MD

BG & MD

BH & MC

ICA4 Format

Answer ALL 3 questions (60 marks)All Case Studies (3 x 20 marks)Total duration is 60 minutes

The question paper carries a total of 60 marks and constitutes 30% of your module grade.

RULES OF CONDUCT OF ICA

1. You are NOT ALLOWED to turn over the paper until you have been told to do so.

2. You are NOT ALLOWED to communicate with or borrow any material from other candidates.

3. You are to raise your hand if you wish to communicate with the invigilator.

4. You are to remain seated and SILENT until all answer books have been collected and accounted for.

5. If you arrive 30 minutes after the commencement of the ICA, you will not be allowed to sit for the paper.

  Warning: Any candidate who cheats or attempts to cheat will

be liable to disciplinary action.

Example : Case Study (20 marks)

"We shall offer a wide range of well designed, functional Home Furnishing products at prices so low that as many people as possible will be able to afford them.“Here in IKEA Singapore, we have systematically reduced our prices every year so that we will always be on the side of the customer. This has been made possible mainly because we use the full strength of the IKEA concept and the IKEA organization to purchase in large numbers, using the best supply chain methods to keep prices low. In the store, we request that you, the customer, do your part to shop on your own, and together, we save.

Adapted from www.ikea.com.sg

(a) List and briefly explain FOUR (4) functions that retailers, such as Ikea undertake to increase the value of the products and services they sell to consumers.

(8 marks)

(a)

Ans: (4 x 2 mks = 8 mks)

1. Provide assortment of products and services (1 mk)Ikea provides a wide selection of functional home furnishing

products for customers to choose from (1 mk)

2. Break bulk (1 mk)Ikea orders in bulk, uses the best supply chain method to keep

costs low. Thus, customers can enjoy low prices. (1 mk)

3. Hold inventory (1 mk)Ikea helps to store products until customers require them. The

products are mainly flatten and kept in cartons to minimise storage and costs. (1 mk)

4. Provide customer service (1 mk)Ikea encourages self-service so as to keep costs low. However,

they provide customers with tools such as pencil & measuring tapes. Staff are also stationed in the store to assist customers. (1 mk)

Make sure you leave blank between answers.Write neatly

(b) Identify and briefly explain THREE (3) segmentation bases that could be used to segment the market for Ikea.

(6 marks)Ans: (any 3 x 2 mks = 6 mks)1. Demographics (income, family life cycle acceptable) (1 mk) The products are made affordable to cater to mass market. They could be the middle income earners or middle high customers who want to DIY (1 mk)

2. Geographic (1 mk) The stores are located in suburban areas- Alexandra and Tampines. Away from the city centres (1 mk)

3. Benefits (1 mk) The merchandise are well designed and functional (1 mk)

4. Psychographics (lifestyle, personality) (1 mk)Customer may like the idea of self assembly and enjoy shopping for home furnishing products (1 mk)

(c) Ikea is a mega store that reaps the unique benefits of brick and mortar retail experience for consumers. List SIX (6) of the benefits for its consumers.(6 marks)

Ans: (6 x 1 mk = 6 mks)

• Browsing• Touch and feel products• Personal service• Cash payment• Immediate gratification• Entertainment and social interaction

HIGHLIGHTSFor main

paper(DOES NOT MEAN

OTHER TOPICS ARE EXCLUDED)

Lecture 1 :Intro to Retailing

Nature of change in retailing E-tailing Price Competition Demographic shifts

Store size : Scrambled Merchandising

Methods used to categorise retailers No. of stores Margin vs Turnover (e.g. high margin, high turnover) Location Size

Types of Retailers – retail formats

Lecture 2 :Retail Industry in Singapore (I) New Shopping Malls in S’pore Measures taken to develop S’pore

into Shopping & Lifestyle Destination

Annual Sale Event: GSS Government Initiatives to boost

Retail Industry (GEMS, retail 21)

Briefly

Lecture 3 :Retail Industry in Singapore (II)

Understand 2 recent projectsIntegrated ResortWarehouse retailing scheme

Benefits to SingaporeEconomic & community gains

briefly

Lecture 4 : Retail Industry in Global Market

Retail InternationalizationOutlines Economic & Retail Outlook

for Major Economies (emerging mkts..why so attractive)

Case Study for Major Players in the Global MarketWal-mart (just read…)

Tesco (just read…)

Lecture 5 : Retail Strategic Planning & Operations

Management ***Understand components of Strategic Planning:Goals & Objectives

Market Performance ObjectiveFinancial Performance Objective

Strategy(means of differentiation…)(major environmental factors…e.g. Consumer Behavior, Competitor Behavior, Supply Chain, Socioeconomic, Technological)

Retail Mix (Merchandise, Price, Advertising & Promotion, Customer

Service, Layout & Design, Store location)

Operations Management . (i.e. buying & handling of merchandise, pricing, advertising & promotion,

customer service, manpower, facilities)

A present for you:

NO CALCULATION REQUIRED

Lecture 6 :Multi-Channel Retailer ***

Benefits provided by different channels (electronic, physical store, catalog) *

Resources Needed to Compete Effectively in Internet Retailing

Issues faced by multi-channel retailersDisintermediation

Lecture 7: Retail Customers ***

Population Trends Population Growth Age Distribution Geographic Trends

Social Trends Education State of Marriage & Divorce Makeup of Household Changing nature of Work

Economic Trends Income Growth Personal Savings Women in the labour force Widespread use of credit

cards

Understand the impact on retailing *

Stimulus:Refers to a cue that is external (cue) to the individual or a drive that is internal (drive) to the individual.

Lecture 8 : Competition in Retailing (I) ***

Retailers compete on 5 major fronts: The price for benefits offered Service level Product selection Location or access: the overall convenience of the retailer Customer experience

Nonprice Decision* merchandise mix private label merchandise other values / benefits stockkeeping

Competitive Actions* Overstored Understored

Types of Competition* Intratype & Intertype

Lecture 9 : Competition in Retailing (II)

Future Changes in Retail CompetitionNonstore RetailingNew Retailing FormatsHeightened Global CompetitionIntegration of TechnologyIncreasing Use of Private Labels

Lecture 10 &11 : Managing the Supply Chain

8 marketing functionsHow retailers add valueVertical Marketing Channels

Corporate Contractual Administered

Franchising: Advantages & Disadvantages

Lecture 12 : Market Selection & Retail Location AnalysisMarket Segmentation: measurable, Accessible,

substantial Is dividing of a heterogeneous consumer population into

smaller, more homogenous groups on demographic, economic, psychographic, and behavioral characteristics.

Location of Store-based retailersShopping Centre: Advantages &

Disadvantages (what are anchor stores?)

Non-traditional Locations Naval Base Office building Theme park/ Resort Airport Hotel School

Nonstore-based Retail Formats

Exam Technique

Exam Technique

• Look at the marks allocated 1 mk – identify, list : u can write in point form

if more mks – write in short sentences

• Handwriting

Write clearly, reasonable font size 12

Black or Blue pen (don’t use pencil OR pink pen)

Leave 1-2 between each answer

1 Question 1 Page (start fresh new page)

(if examiner can’t make up what u wrote…. How to award marks? …)

• Answer ALL questions

What if u r Absent for Main paper…

Students who are absent for ICA have to submit MC

within next 2 working days to your PEM. Inform Module Co-odinator: Ms GK Lee

Try to take main paper ( u will know why…)

My Advice:Study according to the revision

guidelinesLecture + tutorial

Make sure u stay healthy and alert Plan your study calendarTake note of time, venue

28 Jan (fri), 4.10 pm(1 hr) reach 10 min earlierLTD 6

Take the Main paper!

Score A!

Alternative Paper:• No revision• 1/ Feb (tue), 10am, C311

All the BEST! Good Luck

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