MMM – Retail

Management

 Anita Yewle M080947

 Santosh Pednekar M080911
 Rajesh More M080944
 Vaibhav Kanthe M080910
 Kiran Kumar Ingle M080948
 Retailing

 All the activities directly related to the

sale of goods and services to the ultimate
consumer for personal, non-business
use.
The Indian Retail Sector
 Industry Evolution
 Traditionally retailing in India can be traced to
 The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the
consumers
 Era of government support for rural retail: Indigenous franchise model of store chains
run by Khadi & Village Industries Commission
 1980s experienced slow change as India began to open up economy.
 Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains
 Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches
 The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures
to Pure Retailers.
 For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in
music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of shopping centers,
 mainly in urban areas, with facilities like car parking
 targeted to provide a complete destination experience for all segments of society
 Emergence of hyper and super markets trying to provide customer with 3 V’s - Value,
Variety and Volume
 Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.
 At year end of 2000 the size of the Indian organized retail industry is estimated at Rs.
13,000 crore
 Retailing formats in India
 Malls:
The largest form of organized retailing today. Located mainly in metro
cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000
sq ft and above. They lend an ideal shopping experience with an
amalgamation of product, service and entertainment, all under a common
roof.Examples include Shoppers Stop, Piramyd, Pantaloon.
 Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books
retailer Crossword, RPG's Music World and the Times Group's music
chain Planet M, are focusing on specific market segments and have
established themselves strongly in their sectors.
 Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts
on the MRP through selling in bulk reaching economies of scale or excess
stock left over at the season. The product category can range from a
variety of perishable/ non perishable goods
 Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. Further classified into localized departments such as
clothing, toys, home, groceries, etc.
 Department Stores:
Departmental Stores are expected to take over the apparel business from
exclusive brand showrooms. Among these, the biggest success is K
Raheja's Shoppers Stop, which started in Mumbai and now has more than
seven large stores (over 30,000 sq. ft) across India and even has its own
in store brand for clothes called Stop!.
 Hypermarts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These
stores today contribute to 30% of all food & grocery organized retail sales.
Super Markets can further be classified in to mini supermarkets typically
1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq
ft to 5,000 sq ft. having a strong focus on food & grocery and personal
sales.
 Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near
residential areas. They stock a limited range of high-turnover convenience
products and are usually open for extended periods during the day, seven
days a week. Prices are slightly higher due to the convenience premium.
 MBO’s :
Multi Brand outlets, also known as Category Killers, offer several brands
across a single product
category. These usually do well in busy market places and Metros.
Retail Merchandising
 RM - DEFINITION

 Retail selling effort that is the principal task of in-store sales personnel through the
use of promotions designed by a manufacturer, such as unique displays, giveaways,
or discount and premium offers. In this case, merchandising is the act of managing
and arranging the merchandise on display in a store so as to promote its sale.
Merchandising Basis of retail
merchandising,
 Product and merchandising management is key activity in the
management of retail business.

 The primary function of the retailing Is to sell Merchandise.

 One of the most strategic aspects of the retail business is to

decide the merchandise mix and quantity to be purchased .

 Merchandising can be termed as the planning, buying and the

selling of merchandising .
 Define Merchandising as “The analysis, planning, acquisition,
handling and control of merchandise investments of a retail
operation.”

 Merchandising is the core of retailing.

 The function of merchandising is an integral part of retailing and

also one of the most challenging functions.

 AMA define “The planning involved in marketing the right

merchandise at the right place at the right time in the right
quantities at the right price.”
 Achieving these five Right is the key to successful
merchandising and many a times, this remains an elusive
goal for most retailers.

 Merchandising management can be termed as “Planning,

analysis, acquisition, handling and control of the
merchandise”
 Analysis: because retailers must be able to correctly identify their customers
before they can ascertain consumer desires and their needs/requirements for
making a good buying decision.

 Planning is important because merchandise to be sold in the future must be

bought now.

 Acquisitions because the merchandise needs to be procured from others,

either distributors or manufactures.

 Handling involves seeing that the merchandise is where it is needed and in

the proper condition to be sold.

 Control is required since the function of merchandise involves spending

money for acquiring products it is necessary to control the amount of money
spent on buying
 Size of organisation

Merchandise to be carried
Merchandising function
Organisation Structure

Presented by www.InfoFan.zcom Prepared by

Dr.Pooja Sharma

Types of store
Factors Affecting the
Merchandising Function
 Merchandising does not function in isolation.

 It is affected by various factors like the organization structure, the

size of the retail organization and the merchandise to be carried.

 Rarely are any two stores organized in the same way.

 The function of the merchandising is vary from one organization to

another.

 Size: The needs of the individual retailers vary from those of large
chain store operation.
Role & Responsibility of
Merchandiser
 Planning: Though the merchandising may not be directly involved in the actual purchase of
merchandise.
 They formulate the policies for the areas in which they are responsible.
 Forecasting sale for the forth coming budget period and can estimate the consumer demand and the
impact of changes in the retail environment.

 Directing: Guiding and training buyers as and when the need arises, is also a function of the
merchandiser.
 The buyers have to be guided to take additional markdowns for products which may not be doing too
well in the stores.
 Co-ordinating: Merchandise managers supervise the work of more than one buyer.
 They need to coordinate the buying effort in terms of how well it fits in with the store image and with
the other products being bought by other buyers.

 Controlling: assessing the buyers performance , is a also part of the merchandise manager’s Job.
 This includes evaluated on the basis of net sale, maintain mark up percentage, gross margin % and stock
turn
Merchandising
Versus Store
Management
Career Tracks
Functions of Merchandisers at Shopper’s
stop
 Inventory-turn Management
 Achieving Sales & Margins
 Plans Merchandise
 Availability Management, as per range plan
 Merchandising strategy & planning
 Processing of purchase orders
 Analysis of Data & Sales Budgeting
 Profitability Targets & Expense Control
 Vendor/Supplier relations for both, in-house
products as well as for brands.
ARRANGING
-MERCHANDISE
 Role of the Buyer
 Buyers plays an important role in the retail industry. they select and
order merchandise to be sold.

 Buyers may be responsible for buying for a department, an entire

store, or a chain of stores

1. Developing the merchandising strategies for the product line

2. Planning and selecting merchandise assortments
3. Vendor Selection
4. Pricing of the merchandise
5. Inventory Management
 Retail Store Design & Visual
Merchandising
 MERCHANDISING ARRANGMENT………

 Why making effective use of your space is so important.

 How to position your departments and products.
 How to improve store lighting.
 The importance of atmosphere and cleanliness in your store.
 How to create great displays and signage.

 WHAT WE WILL ACHIEVE AS A BUSINESS……….

 The consistently best Display standards against Competition in

India
 A great environment that will attract & satisfy Customers
 Showcase to best advantage our product offer
 Dramatically enhance Customer Service

 Store design and layout tells a customer what the store is all about
and it is very strong tool in the hands of the retailer for
communicating and creating the image of the store in the mind of
the customers.

 The design and layout of the store are a means of communicating

the image of the retail store.

 The environment which is creates in the retail store, is a

combination of the exterior look of the store, the store interiors,
the atmosphere in the store and the events, promotions and the
themes.
 The overall look of a store and the series of mental pictures and
feelings it evokes within the beholder.

 For the retailer, developing a powerful image provides the

opportunity to embody a single message, stand out from the
competition and be remembered.
Trends Affecting Indian Retail
Industry
 Changing age profile & Disintegration of joint family
India is believed to have an average age of 24 years for its population as against
36 years for the USA and 30 years for China. A younger population tends to
have higher aspirations and spends more as it enters the earning phase. Also,
nuclearisation of families has led to enhanced demand.
 Growing disposable income
More Indian households are getting added to the consuming class with the
growth in income levels. Also, with declining interest rates, the aversion of
domestic consumers to taking loans is also fast disappearing.
 Globalization
Growing media penetration is leading to a convergence of aspirations of various
classes of consumers, bridging the rural-urban divide. The modern consumer
cannot be satisfied by any product or service that is lesser in quality than the
best offered in any other place on the globe