chettinadtech.ac.inchettinadtech.ac.in/storage/14-11-08/14-11-08-14-58-00-2821-DHAR… · Web viewAccording to “Philip Kotler” - “Retailing includes all the activities involved

RETAIL MANAGEMENT

UNIT – 1

An overview of Global Retailing – Challenges and opportunities – Retail trends in India – Socio economic and technological influences on retail management – Government of India policy implications on retails.

Meaning:-

The word retail is derived from the French word “Retailer” which means to cut off a piece or break bulk.

Definition:-

According to “Philip Kotler”- “Retailing includes all the activities involved in selling goods or services to the final consumer’s for personal use, non-business use.

Retail may be defined as First point of customer contact.

Distribution Channel:-

It a path or rate the goods move from manufacturer to final consumer .

The role of retailer in distribution:-

Retail Management

Characteristics of Retailing:-

1. Customer focus and customer interaction.2. Transaction with final consumer.3. Deal with variety of customer and product.4. Follow of communication.5. Maintain large inventory.6. Impulse buying and purchase.7. Transaction size is small.8. Personal selling.9. Popularity of store.10. Easy location.

1 | P a g eDr.S.Dharmalingam MBA ,Ph.D ,Department of MBA ,CCET, Karur.

Manufacturer Wholesaler Retailer Final consumer

4 Wheel of Retailing:

Elements of Retailing:-

Marketing concepts applied to retailing:-


Merchandising Marketing & Brand Mgt Floor shop operation

Customer focused

Loyalty programme

Mail mgt & operation Loss prevention Quality assurance

Sourcing & Buying

Inventory control

Retailing

Customer orientation

Value driven

Co-ordinated effort

Goal orientation

Retailing concept

Retail strategy

1.History of Retailing in India:-

1. Pre 1947 – Haats and Melas, typical markets were formed.

2. 1970 – First establishment of organized retail through textile sector.

3. 1980 – Emergence of Brand and Branded Retail Outlet.

4. 1991 – (LPG)- India open the door through New economic policy.

5. 1991 – 1995- Multiple formant and product categories introduced.

6. 1995 – 1999 – Modern Malls are introduced.

7. 2002 – 2005 – Retail expansion of Multiple formant. Indian company beings.

8. 2005 – High street shopping center started.9. 2006 – Government allowed up to 51% (FDI) in retail form.10. 2006 – 2012 – Rapid growth of modern mall and single branded store

expansion.11. 2014 – Online Retail trading started.

2.Indian Retail Sector- An overview The total retail sale in India is 470 US $ Billion . It will grow 675 US $ Billion in 2016.


Organization Retail Market in India:-

Only 10% incaged in organized in India.

1. 2006 – 10 US $ Billion.2. 2011 – 26 US $ Billion.3. 2016 – 84 US $ Billion.

1. Indian retail sector accounts of 22% of India GDP/GNI = PI (Personal income).2. Indian retail contributes 8% total employment.3. 7% of population engaged in retail business.4. 12 million retail stores in India.

Major Retail Players of India • Pantaloon Retail India Ltd. (PRIL)

• RPG Retail

• Shopper’s Stop Ltd.

• Landmark Group Retailing Business in India:-

S. No Business % in Total Retail1. Cloths and textiles 39%2. Food and grocery 11%3. Consumer durable 9%4. Footwear 9%5. Furniture 8%6. Hotel 7%7. Jewelry and watches 7%8. Books and Music and gifts 3%9. Mobile 10%

10. Beauty care and others 4%


39%

11%10%

9%

8%

7%

5% 3%

RETAILING BUSINESS IN INDIA

Cloths / TaxtaleFood/grocery MobileConsumer Durable and FootwearFurnitureHotel and Jewelry/WatchesBeauty care and OthersBooks and Music and Gifts

3.Retail trends in India:-I. Traditional Formats. II. Established Formats.

1. Itinerant sales man. I. Kirnal stores/Baniya stores.2. HAATS (Periodical market) II.. Convenience/Department

Melas. III. Multi brand show room.3. Mandies IV. Public distribution

system(PDS) V. Co-operative store.

III. New Emerging Retail stores. IV. Current trends.1. Hyper market. 1. Online retailing.2. MALLS. A) Flipkart.3. Super market. B) Amazone.4. Discount store. C) E-pay.5. Multiplex store. 2. Door delivery.6. Departmental store. 3. Advance technology.7. Chain store. 4. Social media.8. Exclusive retail outlet. A) Facebook.9. Internal retail store. B) Twitter.10. Service galleries. 5. ITC Ce-chopual.


4.Overview of Global Retail:-

In recent years, there has been a slow spread of retail chains in some formats like super markets, department stores, malls and discount stores. Factors facilitating the spread of chains are the availability of quality products at lower prices, improved shopping standards, convenient shopping and display and blending of shopping with entertainment and the entry to industrial houses like Goenkas and Tatas into retailing.

Thailand is one of the countries whose economy has developed rapidly in recent years. There has been a tradition of independently owned outlets called shop houses. These outlets are run by families, with the shop located on the ground floor and the family's living quarters on upper floors. Thailand's first departmental store opened in 1956 and the first shopping centre in (1967).

Discounts and super stores were introduced in 1989. However, the presence of super market format has been low due to ingrained habit of buying fresh produce. Speciality stores were just emerging in Thailand in mid 1990s. Another country where the development of the retail sector has also followed an interesting path is Brazil. The concept of self service in shopping was introduced to Brazil in 1953 but until 1972, there was no foreign influence in the Brazilian retail sector. Food retailing especially, contained to be Brazilian owned and managed although international innovations were adopted.

1. Retail sales driven by Ability (disposable income) and willingness (consumer confidence)

2. Worldwide retail sales Est.$7 Trio.

3. Expenditure on Household Consumption increased by 68% between 1980 and 1998

4. Top 200 retailers account for 30% worldwide demand

5. Over 50 of the Fotune 500 and 25 of Asian Top 200 are Retailers


Mobile & internet marketing

Customized product Online retailing

Social media marketing

Green products

Advance technology CRMDoor delivery & E-

commers

MALLS & Popup shop

Corporate Social Responsibility

Global retail

trends

Status of Global retail country wise:-

Country % of organized retail on total sales1). USA 65%2). UK/ Japan 60%3). Malaysia 55%4). Thailand 40%5). China 20%6). South coria 15%7). India 10%

Top Retail Players of the WorldCOMPANY COUNTRY OF ORIGIN1.WAL MART US2.CARREFOUR S.A FRANCE3.THE HOME DEPOT US4.METRO AG GERMANY5.TESCO US


5.Challenges (or) Problems of retail sector(16 Mark Questions)

1. High cost of real estate2. Lack of infrastructure facility.3. Problems in logistics & supply chain management

Logistics management:-I. Right time.

II. Right quantity.III. Right quality.IV. Right place.

Supply Chain Management:-

Supply Chain Management

4. Changing of consumer preference & their profile.5. High cost for organized retail sector.6. Heterogeneous retail market.7. Lack of trained employee in retail sector.8. Problems in information technology (IT) & ERP9. Multiple end complex Tax system- VAT, Central Sales Tax, Sate Sales Tax, Inter & Intra

Tax.10. Impact of foreign direct investment(FDI)11. Issue form supplier/ Vendor side.12. Heavy competition.13. Fake & Duplicate product.14. Difficulty in CRM practice.15. Lack of brand awareness & STP (Grading/Standard/Package)


Manufacturer Vendor Retailer Customer

6.Opportunities of Indian Retail Sector:-RETAIL-MARKET SIZE

The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015

Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment.

Retailing Environment Factors:-

(1). Customer

(2). Technology (3). Government


Scope (or) opportunities

of retail marketing

Retailing

1. Large scope of rural retail market.2. Increase purchase power.3. Changes of income profit.4. Occupation of women employee.5. Nuclear family structure.6. Increase credit facilities.7. Huge population & age factor.8. FDI in India retail market.9. Growth of information technology (IT)10. Changes in cultural/Social factors.11. More employment opportunities.12. Changing consumption pattern.13. Online marketing trends.

7. Discuss Various Retailing Environmental factors in detail (16 ark)

1. Socio-Economic Environment:-1. GDP (Gross Domestic Product),2. Rate of inflation.3. Gross National Income (GNI).4. Purchasing power.5. Interest rate.6. Tax rate

Direct tax indirect tax7. Employment growth.8. Per capital income.9. Monetary/fiscal policy.

2. Technology Environment:-1. UPC---- Universal Product Coding.2. EFT---- Electronic Fund Transform. 3. EDI---- Electronic Data Interchange.4. Security/shrinkage control.5. Par code system.6. Wireless interactivity (RFID)(NFC)=> Supply chain.7. Mobile payment.


Socio-economic Environment

Technological Environment Demographic

Environment

Political Environment

Social EnvironmentCompetition Environment

Legal Environment

Cultural Environment

Retailing Environmen

t

8. E- commerce, E-business, E- governance, E- B2B, B2C, C2C.9. Online marketing.10. Virtual marketing.11. Low space management.12. E - Retailing.

3. Demographic Environment:-1. Population.2. Age group.3. Gender .

Male Female4. Income.

High income Middle income Low income5. Occupation.

Government Private Business6. Education. 7. Purchase power.8. Family system.

Joint Family Partier Family

8. Elaborately discuss Government Policy on Indian Retail Market (16 Mark Questions)Salient Features of Government Policy,1. Government of India has barred FDI Retailing since 1997.2. 2003-04 Government of India has decided to allow FDI up to 51% of Single

Brand Retail Products. a) Source :- Press note 4 to 2006 issued by DIPP=> Department of Industrial

Policy Promotion.3. FDI up to 100% for cash and groceries wholesale trading and Export trading.4. FDI is not-permitted multi-brand retailing in India up to 2012.5. Current FDI in single brand retail up to 100%. 6. Guideline Framed by FIPB (Foreign Investment Promotion Board) .

a. Only single brand product would be sold.b. Product should be sold and other some brand internationally.c. Any Addison to single brand product categories get approval from

government of India.7. Current FDI Multi-Brand Retail.

a. 2012 Dec 07 the central government of India allow 51% FDI in Multi-Brand Retail Store.


8. Entry Norms or Conditions:-a. Foreign country has to invest Minimum 100 million US Dolor in India.b. Government of India made it compulsory for foreign brand retailers to

place at lest 50% of total investment infrastructure, Warehouse, Supply Chain Management.

c. Foreign Multi-Brand Retail store only started in where population limit Exceed 1 million.

9. Placement of Uniform Tax Policy for organizing Retailing:-10. Government policy regarding balance of Un-organized sector (97%)

Decrease.11. Organized Sector (3%) Increase.12. Removal of Labor problems.13. Initiative for improvement of Retail Sector.

a. Infrastructure facility.b. Warehouse. c. Supply Chain Management.

9. Elaborately Discuss the Role of FDI in Indian Retail sector(16 Mark )

Advantages:-1. Additional capital invested in infrastucrer, transport, warehouse. 2. High technology transfer/ advance technology => e-Bill, barcoding, 3. Choice variety of product.4. High quality product.5. Low price of the product.6. High technology product availability.7. It enrage healthy competition.8. Increase government revenue (tax revenue estimate 16.2 million US $)9. Increase standup living.10. Effective CRM practice.11. Automotive (or) online retail practice.12. Benefits to former,

Disadvantages:-1. It affects the small domestic retailers.2. Heave competition for domestic market.3. Loss of Indian retail market share.4. Increase in real estate cost.5. Disadvantage to formers.6. Loss of employment.7. Indirectly affect Indian Business.


2 marks:-1. What is mean by retail management?(2011)

The word retail is derived from the French word “Retailer” which means to cut off a piece or break bulk.

2. Definition of retailing:- According to “Philip Kotler”- “Retailing includes all the

activities involved in selling goods or services to the final consumer’s for personal use, non-business use.

Retail may be defined as First point of customer contact.3. List our scope of retailing?

a. Store management.b. Supply chain management.c. Vendor management.d. Inventory management.e. Category management.f. Customer relationship management.

4. List out functions of retailing?(2013)a. Sorting.b. Breaking bulk.c. Holding stock.d. Additional services.e. Channel of communication.f. Transport and advertising functions.g. Assortments.

5. What is mean by Global retailing?(2013) Global or international retailing may be defined as the operations, by a single firm, or shop, or other forms of retail distribution, in more than one country.

6. What are the key Elements of a retail strategy?1. Target market and retail format.2. Building sustainable competitive advantages.

7. What are the differences between a domestic retailer and global retailer?

Domestic Retailer Global Retailer1. Domestic retailers are the

retailers which operate in the same country or region in which they are situated like Big Bazaar in India.

A global retailer is the retailer doing business in different countries so as to gain profit. Wal-Mart, Gucci, and Zara etc,.. are the examples of global retailers.

2. Domestic retailers can easily understand the buying pattern of consumers.

Global retailers have to work hard to understand the consumers of different countries.

3. Domestic retailers have variety of merchandise according to the taste of local

Global retailers have merchandise according to the global demand.


retailers.8. What is non-traditional retailing?

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. Examples:-Hyper market.Super market.Convenience store.Exclusive outlet.Departmental store.Cash-and-carry.

BA7012 RETAILMANAGEMENTUNIT-1

Part-A1. What Is Retailing. 2. What are the challenges of retailing 3. What are the opportunities of retailing 4. Discuss the trends in brief in retailing 5. Define policy. 6. What are the government policies in retail sector? 7. What is global retailing? 8. Give the advantages of global retail marketing. 9. List the socio economic factors in retail marketing. 10. How will you classify retail sector in India. 11. Give any four applications of information Technology in retail sector. 12. What is retail branding? 13. What is Universal Product Code (UPC)? 14. What is Public Distribution System (PDS)? 15. Explain specialty retail shops. What is global retailing? 16. Give the advantages of global retail marketing. 17. List the socio economic factors in retail marketing. 18. How will you classify retail sector in India. 19. Give any four applications of information Technology in retail sector 20. What is global retailing?

16 Marks:-

1. What is mean by Global retailing? Discuss the an Overview of Global Retailing?

2. Discuss the challenges and opportunities in Global Retailing?

3. Discuss the factors driving the growth of retail industry in India.

4. What are the recent trends in the retailing sector? Explain with reference to the Indian scenario.

5. Detail the influence of the technological innovations in retailing with the perspective of associated costs and benefits.

6. Discuss the factors affecting global retailing and major reasons for going global.

7. Explain the Government of India policy implications on retails.


UNIT – 2Retail Formats:- Organized and Unorganized Formats – Different Organized Retail Formats – Characteristics of Each Format – Emerging Trends in Retail Formats – MNC’s Role in Organized Retail Formats.

RETAIL FORMATS

1. What is mean by Retail Formats?

Retail Structure is mainly used to describe retail format stated under unorganized and organized Retail Sector.

2. What is mean by organized Retail Formats? The term organized retailing means to have a Formal Organization and Structure to co-ordinate and carry out the activities. It is undertaken by registered and license retailers.E.g:- a. Departmental Store. b. Super market. c. Hyper market.

3. What is mean by unorganized Retail Formats? Unorganized retail’s is an individual having small unstructured organization and informal Organization to carry out the retail Business.

Characteristics of retail market:-1. Brand (or) product verity. 2. Average size of the store.3. Flexibility in operation.4. Investment cost.5. Working hours.6. Personal relation(CRM).7. Location advantage.8. Level of economic scale.9. Inventory and stock level.10. Decision making.

Centralized De-centralized11. Control and efficiency.12. Cost factor.13. Time factor.14. Labor factor/ intensive.


Organized Retail Store

Unorganized Retail Store

15. Purchasing/ Bargaining power.16. Space and Supply chain management.

Difference between Organized and Unorganized Retailing?

Points Organized Retailing Unorganized Retailing1. Meaning Formal, structured organization

to carry out the retail business.It is an informal, unstructured, organization to carry out the business.

2. Service Format Self-service Over the counter3. Flexibility in

operation.Limited flexibility More flexibility

4. Average size 4000 squire fit (sqft) 300 (sqft)5. Space area Need large space area. Small space area6. Stock turnover High stock turnover ratio Low7. Profit margin High profit margin Low8. CRM practice Low level of CRM High9. Credit sales Not passible Passible10. Investment and

fixed costHigh Low

11. Product verity More product verity Limited product verity12. Share of Indian

retail market10% market share 90% market share

13. Structure Formal unstructured Informal, unstructured14. Supply chain and

inventory controlMore efficient inventory control Less efficient inventory control.

15. Standard and grading

High standardization Low standardization

16. Labor cost High labor cost Low labor cost17. Economic scale Large valium of purchase and

centralized decision makingSmall valium of purchase

18. Location advantages Low High19. Registration and

sales taxCompulsory Optional

20. Example Deportment store, super market, hyper market,

Mondies, HAAT, Melas, Baniya Store.


Different Classifications of Organized Retail Format (or) Models? (Important 16 Mark Questions)

I. Store based retail market.

1. Form of ownership. 2. Merchant offered. a. Independent retailer. a. Convenience stores.b. Chain retailer. b. Super markets.c. Franchise. C. Departmental stores.d. Leased department. d. Hyper market.e. Licensed department. e. Specialty stores.f. Consumer co-operatives. F. Discount store/ off-price retail.

G. Multiplex store/ show room. H. Factory outlets. I. Catalogue show room. J. Cash & carry store. K. Drug/Medical shop.

II. Non-store retailing. III. Service retailing. IV. Multichannel retailing.1. Direct selling. 1. Rented-Goods services. 1. More than.2. Mail order. 2. Owned-goods services. 2. Two retail.3. Tele marketing. 3. Non-Goods services. 3. Format Applied.4. E-retailing/online retailing.5. Video kiosks.6. Automated vending.7. Airport retailing.

I. Store Based Retail Market:-1. Form of Ownership:-

A. Independent Store:- 1. It is one Owner and uprate only one retail store.2. It is run by Individual and the Family.3. It is run by Generation to Generation.4. In India there is highest number of Independent stores.5. Approximately 9 million Independent stores. Accounting to 70% retail outlets.

Characteristics:- 1. Brands are Limited.2. There is good personal relational with customer.


3. Easy location.4. Quick decision making.Advantages:-1. High flexibility in retail format and location.2. Personal relation is maintain.3. Quick decision making.

Disadvantages:-1. Less Bargaining power with supplier.2. High cost of transportation.3. Brands (or) product are limited.Examples:-1. Kirana store/Baniya Store.2. Annachi store.3. Mon and pop store.

B. Chain Retail Stores:- Chain store means when two (or) more retail stores under a common ownership is called as chain retail stores.

Examples:-1. Krishna sweet.,Shoppers stock.Food world.,Chennai skills.

Advantages:-1. High purchase and bargaining power.2. Cost effectiveness.3. Advantages of inventory control.4. Uniform and standard procedure.5. Advantage of advertisement cost.Disadvantages:-1. Difficulty in control.2. Investment cost is high.3. Problem in inventory management.

C. Franchise: - The contractual agreement between franchisor and retail franchise. To contact the business under the established name. According to a given rules and regulation. The franchise pay initial fee (or) monthly percentage of cross sales to the franchiser.

Franchising a franchise is a contractual agreement between the franchiser and the franchisee, which allows the franchisee to conduct business under an established name, as per a particular business format, in return for a fee or compensation.


Manufacturer Contractors

Type of Franchising:-(Important 2 mark qustions)

1. product or a trade mark franchise - where the franchisee sells the products of the franchiser and / or operates under the franchiser's name. Archie's stores, which have come up all across India, are an example of product franchising. 2.A business format franchise - McDonald's is perhaps one of the best examples of business format

franchising. a. McDonald.Dominos pizza.Subway.Arvin Mills.

Conditions for franchise:-1. Location (Store format)2. Working hours.3. Product lines.

Advantages:-1. Get well-known name.2. Standard operating procedure.3. Co-operative marketing efforts.Disadvantages:-1. If brand name failure it may affect retail store.

D. Leased Department:- “ It is also known as shop in shop hear section of department in a retail store leased (or) rented to an outside party”Advantages:-1. From leaser a point of view.2. Lease point of view.3. Store cost reduced.4. Brand extension.Examples:-1. Jewelry shop.Shoe.Perfume.Cosmetics.

E. Licensed Department:- In licensed department store the store get licensed (or) approval from concerned authority and run in a departmental store.

F.Consumer Co-operative:- It is a retail store Owned by its member customer the principle of co-operative is (One for all, All for one)Type:-1. Consumer sponsored co-operative.2. Retail sponsored co-operative.3. Wholesaler sponsored co-operative.Examples:-

A. Amravati Co-operative Store. B. Sinthamani co-operative store.II.Merchant Offered:-

1. Convenience store.2. The convenience store located near the customer residential area.3. It is relatively small store.


4. Open for long working hours.5. Offer limited line of product.

E.g:-a. Milk.b. Egg.c. Rice.d. Oil.5. The average store size 3000 sqft. E.g:- a. Indian oil Corporate Limited. b. HP Speed.6. Limited Number of brands. E.g:- a. Easy day. b. 24X7 c. Spenser’s. d. Daily food matt.

2. Super Market :- Super market are large, low cost, low margin and high valium self -service operation. Designed to meet for groceries and food items and other non-food items.E.g:-a. Subhiksha super market.b. Nilgiri.Characteristics:-

i. 8000 to 20000 sqft.ii. Super market follow the concept named EDLP(Every Day Low Price).

iii. Almost 30% of grocery market are dealing in super market store.3. Departmental store :-“All Products under One roof”

1. It is originated mid 19th century. 2. Department store is a large scale retail outlet.3. Department allowed the customer to selected multiple product lines.4. The average size of department store 20000 to 40000 sqft.5. They maintain more stock level.6. Wide range of product.7. Standard procedure.8. Centralized decision making.9. Department stores are classified in to various section.10. Deals with different product.

Characteristics of Department Stores:-1. Large size.2. Central location.3. Wide range of goods.4. Huge investment.5. Attractive appearance.6. Sell goods on only cash based.7. It involve high operational cost.

E.g:-a. Kannan Department store.b. Krishna Department store.c. Spensor& MORE department store.d. Walmart Department store.


4. Hyper Market:- 1. It is super store, commission of super market and departmental store.

2. Hyper market concept established in France.3. Hyper market larges in size.4. The average size of hyper market is 80000 sqft or 20000 sqft.5. It offer very low price & cheapest price.6. Hyper market carry wide range of product under one roof.E.g:-a. Walmart.b. mega mart.c. big bazaar.d. star Indian bazaar.

Characteristics of Hyper market:-1. Wide range of product under one roof.2. Low price.3. Large size (80000 to 220000 sqft)4. It affected groceries &General merchandise. 5. Initial cost high.

5. Specialty store:- Specialty store offer Narrow or single products line. The size of specialty store is 8000sqft. It focus on single product only.E.g:-1. Sony.2. Titan watch.3. Philips.4. Reebok.5. Raymond.

Advantages:-1. Personal attention.2. Improved customer service.3. This store concentrate jewelry.

6.Discount Store/ Off-Price retailer:- This store sales the product at less than MRP (Maximum Retail Price). E.g:- 1. Wall Mart, 2. Mega mart.

7. Factory Outlet :- This store located in front of factory the price of the product may be low. It helps large volume purchase. E.g:- 1. Mysore sandal soap, Bangalore. 2. Aavin milks store, erode. 3. Ooty tea store. Advantages:-1. Retail cost reduced.2. Directly reach the customer.


8 Catalogue show room:- Its mainly based on catalogue and product code. E.g:- 1. Consumer electronics show room. 2. jewelry shop. 3. ice cream shop.

9. Cash and Carry store:- The term cash and carry means that customers the own order pricing, pay in cash and carry the merchandise away.

II. Non- Store Retailing:-1. Direct selling:-

Direct selling is a process in which directly meet in the end customer at his home.

Direct Selling

Example:-a. Amway.b. Medicare.c. Herbal life.

This marketing also called as MLM ”Multi Level Marketing”

Advantages of direct selling:-a. Direct contact with customer.b. There is no middleman cost.c. There is no advertisement cost.

d.Low price of the product.2. Mail Order:-

It is mainly based on mail or posted VPP “Value Parcel Post”.Examples:-a. Books.b. Herbal products.

3. Telemarketing:- This marketing mainly based on telephone.Examples:-a. Oil, telemarketing.b. Exercise instrument.Advantages:-a. No middle man cost.b. Time saving process.c. Low cost.

4. E-Retailing:- (online retailing) It is also called as online retailing, web retailing or internet retailing. It also refers to E-Commerce.There are three types of E-retailing:-1. (B2B) Business to Business.


Company Customer

2. (B2C) Business to Consumer.3. (C2C) Consumer to Consumer.Advantages:-1. Low cost.2. Time consuming.3. Door delivery.4. More variety of Products.5. No storage cost.6. No middleman cost.7. Speed & quick delivery.8. Minimum investment.9. Customized product.Disadvantages:-a. Security problem.b. Lack of personal attention.c. Damage / fake product.d. May not suitable to all product.4. Video kiosks:- Video kiosks is a free standing, interactive electronic computer terminal that display product and related information on video screen machine.Example:- ATM machine. Touch screen machine.

5. Automated vending:- It is a non-store retailing in which consumer purchase product through automated machine.Example:- cool drinks at Rs. 5.Advantages:- No store cost.

6. Airport retailing:- This retail store located in airport.

III. Service Retailing:-List out four characteristics of Service retailing ( 2 Mark )a. Intangibility.b. Inseparability.c. Perishability.d. Variability.

1. Rented goods services.2. Owned goods services.3. Non-goods services.

IV. Multi- channel Retailing:- It retailers use more than one retail format or combination of various retail format is called as multichannel retailing.( Write the combination of store based & Non store based and Direct retail channel characteristics)


Advantages:-1. Time and place.2. Speed.3. More coverage of area.4. Low cost.

Emerging trends in retail formats: (Important 16 Mark Questions)

1. Hyper market.2. Category Killer3. E- retailing/ Online retailing.4. Super market,5. Attract rural market potential.6. Dollar store.7. Emergence of private label

brands.(Note: for explanation notes pl refer the above pages)

MNC role in organized retail format:-MNC=> Multi National Company.Meaning:- A company doing retail business in various country’s (or) across the globe it is MNC.Characteristics of MNC:-

1. Business at various country.2. Big size.3. Large capital investment.4. Large number of customers.5. Large number of competitors.6. Structural decision making.7. Different environment.

Macro:-a. Demographical.b. Technological.c. Cultural. d. Social.e. Legal.f. Political


1. Multi-channel format.2. Tele-marketing/ Vending machine.3. Emergence of wholesale club.4. Specialty store.5. Discount store.6. Video kiosks.7. Trial and error Store.8. Service oriented retail format.

Role of MNC in retail market:-

Recent for growth of MNC in Global retailing:-

1. Higher market potential.2. Advance communication technology.3. Advancement of E- Commerce, Online trading.4. Easy factor mobilization.5. Increased CRM practice.6. Management of cultural & social environment.7. New economic reform policy.8. Increase customer expectation.9. Big malls & Hyper market.10. All product under one roof or place.

List out types of retail format:-

Retail structure is mainly is to dispraised retail format organized and unorganized sector.

Organized retail store. Unorganized retail store.

1. What is mean by organized retail market? The term organized retailing means to have a formal organization and structure to co-ordinate and carry out the activities. It is undertaken by registered and licensed retailers:-


Capital Advance Technology Skill

Large Market Potential

ExportsFDI through MNCMarket Entry

1.Joint venture.

2.Franchice.

3.Global marketing

Role of MNC in retail Market

Departmental store. Super market. Hyper market.

2. What is mean by unorganized retail market? Unorganized retails is an individual having small unstrucred organization

UNIT-2

Part-A1. What are organized sectors? 2. What are unorganized sectors? 3. Define retail format. 4. What are the types of retail format? 5. What are the characteristics of retail format? 6. List the emerging trends in retail formats. 7. Define Organised sector. 8. Give the importance of retail formats. 9. What are the ethical issues in marketing decision? 10. Explain the impact of the internet on markets? 11. Explain customer driven organization? 12. Discuss the techniques of acquiring the customers on the web. 13. Discuss the advantages and limitations of online marketing. List the

emerging trends in retail formats. 14. Define MNC’s. 15. Why retail is formats important? 16. What are the ethical issues in marketing decision? 17. Explain the impact of the internet on markets? 18. Explain customer driven organization? 19. Define organized sectors? 20. Why is retail format needed in retail organization?

Part- B (16 Mark Qustions)1. What are the Organized and unorganized formats available in retail sector? 2. What are the different types of organized retail format? 3. Enumerate the Characteristics of each format. 4. Explain the emerging trends in retail formats 5. Explain the MNC's role in organized retail formats. 6. Enumerate the Characteristics of each format. 7. Write in detail about online marketing. State the advantages of

online marketing. 8. Discuss in detail about the types of retail stores in India. 9. Discuss about the origin of retailing in India. 10. Discuss about the advantages and dis-advantages of organized and un-organized

retail stores in India.



Documents

chettinadtech.ac.inchettinadtech.ac.in/storage/14-11-08/14-11-08-14-58-00-2821-DHAR… · Web viewAccording to “Philip Kotler” - “Retailing includes all the activities involved