Retail Industry
Uploaded by pooja n on Feb 04, 2007
RETAILING
Introduction:
The word retailing is derived from the French word ‘retailer’, meaning ‘to cut a piece off ’ or ‘to break a bulk’. in simple terms, it implies a first-hand transaction with the customer.
Retailing involves a direct interface with the customer & the coordination of business activities from end to end- right from the concept or design stage of a product or offerings, to its delivery & post-delivery service to the customer. The industry has contributed to the economic growth of many countries & is undoubtedly one of the fastest changing & dynamic industries in the world today.
According to a report by the Center for Monitoring Indian Economy (CMIE) investments in organized retailing – which includes shopping malls, retail chains etc. – doubled from Rs.1, 000 crore in January 2000 to Rs. 2,000 crore in January 2001.
YEAR URBAN RURAL TOTAL
1978 0.58 1.76 2.34
1984 0.75 2.02 2.77
1990 0.94 2.42 3.36
1996 1.80 3.33 5.13
1999 2.40 3.60 6.00
Retailing & the marketing mix:
Customers are first introduced to the product at the retail store. Organizations sell their products & services through these retail outlets & get feedback on the performance of their products & customers expectations about them.
Retail stores serve as communication hubs for customers. Commonly known as the point of sale (POS) or the point of purchase (POP), retail stores transmit information to the customers through advertisement & displays. Hence the role of retailing inh the marketing mix is very significant.
Retail Marketing Mix:
The retail marketing mix consists of the following elements:
PRODUCT OFFERINGS: this refers to the product mix that the store retails for customers after a careful study of what their needs & wants are. By matching customer preferences with an assortment of merchandise offered within the stores categories, the retailer gets an ideal basket size per customer. The basket size contains the mix of items a customer buys during a visit.
PLACE: This is the location of the store & its catchments boundaries. The key to optimizing the element of place in the marketing mix is to undertake local marketing efforts besides the national marketing plan. Determining the market share of the store in the catchments area gives an indication of its performance & efficiency.
PRICE: Price is an important element in the marketing mix as customers are very price-sensitive. Pricing is of different...