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------------------------FINALS--------------------------- put up establishments easily

according to the law because it should
BASICS OF LOCATION PLANNING PRINCIPLES be preserved)
LOCATION PLANNING  Mix Use Principle: Use of property
may be mixed to a certain zone (No
-The most important requirement for “Business matter what boundary demarcator.) –
development” Example dito ‘yung ni recite ni SSOB
Neah na Subdivision ni VIllar na may
-Business Development is the Branch of a
grocery store sa loob omsim!
modern organization that deal with expansion
of branches. >Rules are in place to control the
mixture of utility for specific zone
Factors to be consider in location planning
>Industrial Zone are not be with
1. ZONING
residential zone (Hindi pwede basta
-States and identifies all the regulations on basta mag tayo kasi pwedeng may
the control of use of a property ma-apektuhan that can lead to
harm)
-Establishes physical limits on use.
>Commercial zones are not to be
-A map that illustrates how the limits and
with public domain.
control are allocated. (Expressed through
MAPS) >Rules will vary from country to
country.
-Facilitate harmony co-sharing of land
(order in usage of land)  Compatible Architecture:

3 Aspects of Zoning Mandates a standard that supports agreed

upon structural theme by a recognized body in
 Modern Use Zoning a specified zone. (House are very identical in a
 Residential: Serves as people’s habitat subdivision saka may criteria di ka pwede basta
where people spent most of their basta mag design ng establishment)
time. (Mixed up of huge are of a
certain country)  Walkability Zone:
 Commercial Zone: Offices and
Certain zone that is accessible to pedestrian
Businesses
oriented traffic. (Hindi lang sa mga nag wa-
 Industrial Zone: Connected to
walk, dapat considered ‘yung mga PWD walang
Manufacturing and creation of
paa HAHAHA wawa)
different products and goods
 Special Tax Zone or “Eco Zones”: To  Central Tendency:
facilitate and help the growth of the
-Town Center Principle
economy and wider perspective of
the country. (Gateway of foreign -Organizes the layout of zones where an area of
trade) administrative functions and police power is
 Public Domain Zone: Lands can be easily identified. (Where public services are,
classified as agricultural, forests, where police are, or major located in a zone)
mining or national parts (can’t easily
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 HEIGHT ZONING customer flow (example: lighthouse sa

 Most applicable for Malls and Hotels potanginang Batanes)
(Magiging impact niya depende sa d. Macro Environment Triggers: A broad
area) spectrum developmental initiatives that
 DENSITY ZONING generates a systemic flow of direct
 Density Requisites: Concentration of customers like a Market Trigger but has
“SUBJECTS” w/in a specified the characteristic of Infrastructure
“GEOGRAPHIC SCOPE” (How full the Trigger. Intentionally designed and
location is) literally massive (example: Mall of Asia)
 Density=Refers to the how populated e. Functional Macro Trigger: Creates
is it dependence indeed systemic customer
flow on a wide scale. (Para ma-
Subjects for Density: facilitate ang customer inflow)
 Residents: Clustering of unites who f. Attraction Macro Trigger: Creates
utilize an area as their place of habits novelty induced variable customer flow.
(Because of Aesthetics)
BOUNDARIES: g. Commemorative Macro Trigger: Creates
Specified Demarcators that separate density nostalgia variable customer flow
usually in the form of infrastructure (Example RADIAL PRINCIPLE
nito ‘yung mga WELCOME ROTONDA, San
Fernando Signage) The proximity between the macro and the
benefiting establishments disperse outwards
TRIGGERS and becomes less pronounced in benefit
-Starting point, origin, firs step that results to accordingly. (Habang lumalayo ka, lumiliit
series of steps benefit ng customer flow na pwede mong
makuha)
-Important because it influenced a lot on
marketing strategy. QUESTION IS…

-Starting points for Location Planning in terms How Macros works with Market Triggers,
of marketing potential. Infrastructure Triggers, and Destination
Triggers?
2 Triggers Discussed so far…
BUSINESS DEVELOPMENT TRIGGERS:
a. Market trigger: Establishments that
results to a direct flow of customers  Market: Is micro in perspective (one
(example: Schools, Office Buildings, structure or one building)
Construction Sites)  Infrastructure: Is motion in
b. Infrastructure Trigger: Developments perspective (potential lang yung
that leads to incidental potential flow of customers na pwede mapunta kasi
customers. (example: Bridges, Train, passing by lang sila)
Roads)  Destination: is distance in perspective
c. Landmark or Destination Trigger: (literally can bring people from
Distance and Sight induced temporary different parts of the world or country
to your retail establishment as you
benefit from these landmarks)
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 Macro: Is intentional in perspective Business Development Infrastructure Plan

(Flow at location na nakapalibot are
-One of the outputs of the Business
influenced in terms of services they
Development Department.
offer or SKU’s)
-Operations Department of a Modern
SITE PLAN DEVELOPMENT
Organization that seeks out the ideal location
-If an area has been identified to have trigger for the next leg of the corporation expansion.
present
Example: KFC Branches that are styled in a
-The following are the phases unto which the certain way (Because of the location planning
developmental potential measured considering the Target Market)

Site Plan Triggers BUYERS SKILL SET

Foot traffic -> Integration -> Convergence What comes into your mind when you hear the
word “Buyer”?
FOOT TRAFFIC:
When you say buyer in a retail management
-Measurable consolidation of triggers
perspective, it doesn’t necessary mean to your
-“How many are passing by?” consumers or customers, it may also refer to
someone in the organization.
-“How many are visiting to see?”
Partner Management: You have to be
-“How Many are direct customers who goes to competent because as a buyer, you just don’t
offices or schools?” deal with your image inside the organization
INTEGRATION: but more importantly you deal with people
outside the organization that you closely work
-Areas where foot traffic meet either by natural with or closely interacted:
occurrence or by intentional design.
1. Vendors: Pertains to the items to be sold
Private and Public Transit for revenue (Partners or external
-Private: Capitalizes on control of direction providers that are involved with an item
that you will sell for revenue)
-Public: Capitalizes on volume of passengers  Manufacturer Representative (First
Party): Employees of a company who
-Public Transit stops: Usually become the
manufactures or imports items
integration
exclusively to a territory.
CONVERGENCE:  Middle-Man “Agent” (Third Degree):
A supplying entity who is capable pf
-Points of Intersection of either residence,
sourcing in your behalf from multiple
business market or infrastructure driven foot
manufacturer or exclusive importer
traffic. (Major intersections in a specific region
 Proctor vendor (Value added
or area)
partner): When a retailing
2. LOCATION MARKETING establishment desires to carry
3. SITE PLANNIN products outside their scope of
4. MACRO TRIGGERS expertise (No current merchandizers
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by the company can competently (Open options, pwedeng on call or

handle) hindi)
 Adversarial Vendor: Vendors who  On-call: Keeping your options open
default in remittance of slotting  Alternative: Also keeping an open
payments. Fails to fulfill order relationship (Exclusivity clauses)
commitments. Violates special  Pertains to suppliers
arrangement like exclusive  Metered (example: kada andar may
distribution arrangement (vice versa) isang metro na umaandar)
2. Suppliers: Pertain to items to be  Bill by trip: Doesn’t consider the
produced that are not directly sold for distance, but the number of trips are
profit (Second degree merchandize pull being consider
items)  Contract: Pre-arranged (Always be
3. Link Service Providers: transporters from printed in black and white)
one point to another (Bridges your
HALO EFFECT
warehouses)
4. Nodes: Points or checkpoints in between -Opening a New Physical store in a market leads
to a 37% average increase in overall web traffic.
SALES ENABLEMENT
Halo Effect Increases Spending across categories
-Refers to a retail employee’s ability to upsell
products as dictated by profitability metrics

-Utilizing the retail strategies

-Manipulating Circulation

-Re-Designing Planogram

RELATIONSHIP MEASUREMENT: Kung

productive na ba ‘yung relationship with these
external parties.

 Pertains to Vendors
 Trial entry: Tignan how well the NEW The HALO for retailers is the ability to command
product or services you have omni-channel activities to enable sites. (Dapat it
 Repeat: Depending on the Trial, para make sense. All your platforms should be
sa future connected kasi yun lang yung time that you can
 Recurrent: Pre-scheduled agreement give your customer the desire consumer
on billings, deliveries of stock experience in which everything make sense.
replenishments etc. Regardless of where and how they contract you
 Fixed Intervals: Hindi ganun ka and do business with you.
recurrent or ka-regular but you agree
(example: a certain stock on a certain
SKU already reaches a point kunwari
25%)
 Open ended: No agreement,
commitment or pre-orders made
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OMNICHANNEL PROCUREMENT LEDGER:

-All channels available to the consumer and -Is a file tracer kept by buyers to keep tract of
they are connected (Has to make sense, fluctuation of cost.
reliable, connected and accurate)
-Enables to have pre-emptive insight on when
cost of procuring from vendors will escalate.

-Enables analytical adjustment of slotting fees

and mark up conditions.

-To know kung ano yung next step (example

yung kay sir na fishing demand)

TREND FORECASTING

Retailers’ Forecasting

-Ability to observe and act ahead of “MACRO

TRIGGERS”

-Macro Triggers are wide scale societal and pop

phenomenons
MULTICHANNEL
-Usually affects demands of:
-All Channels available to the consumer but not
integrated -Staples that are side-branded with them

-Seasonals that directly pertains to them

(example: Christmas season and trends, the
retailers should forecast the SKU’s)

MERCHANDISING TOOLS

-Excel: Staple monitoring tool (One of the most

powerful monitoring tool)

-Planogram Softwares (Nexgen, Cisco, Amazon,

Ingenico): Can make planogram easier in a retail
establishment

-POS Data Fetchers: Tracks real time check out

products as soon as they are scanned bu the
casheirs
INVENTORY BUFFERIN “Mostly Staples” 6 Reasons why you need weekly POS data
-Ability to Reconcile Historical Trends of “Pick 1. Get reliable reporting faster anywhere
up Rates” with the supplying capabilities of 2. Adjust your sales strategy promptly
vendors as well as the Fluctuation of 3. Track price development efficiently
Procurement Cost. (example: peak season) 4. Maximize your marketing campaigns
5. Optimize for seasonal sale events
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6. Monitor launch performance quickly

-Shipment GPS Tags: Very helpful in tracking

the movement of your LSTs and inventories.

PLANOGRAM LAYOUT TEMPLATES

GRID STORE LAYOUT:

-Most traditional layout for wide area stores

carrying maximum merchandise. Also known to
be the most less risk. (example: Groceries and
Supermarkets)
FORCED-PATH STORE LAYOUT

-“Lock the door behind” Principle

-Customers are exposed to pre-determined

succession of merchandize sections.

-Returning means double exposure

-Progressing means completing the pre-

determined pathway

-Usually furniture stores daw para go through

the path lang

-One section to next section

FREE FLOW STORE LAYOUT:
-Disadvantages neto, pwedeng tamadin mga
-Allow customers to navigate freely individual
tao.
sections of the establishment and leave the
premises without being exposed to other
sections.

-Absence of a Standard Path (Example: Clothing

stores)

-The consumer has the choice to check out

counter and leave, or lumibot (example: gawa
ko na malupitang Travis Scott na nasa entrance
hotspot tapos rekta checkout na)
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MIXED STORE LAYOUT

-Combination of a Forced Path area and Free

flow Area or layout.

DIAGONAL STORE LAYOUT:

-Red Areas are expensive side is based on the

slotting fees.

-Allows slotting fees categorization congruent

GEOMETRIC STORE LAYOUT: to exposure rate and customer effort rate.

-Utilized for stores with minimal items to

display

-Who can afford “Void spaces”

-Void Space: An area of the planogram that

does not produce exposure and storage.

STRAIGHT STORE LAYOUT

-“May lagusan” (Pag pasok mo ng CR, nasa

Narnia ka na pag labas)

-Usually leverages on infrastructure trigger

-example: Trinoma to SM North na may tagusan

ANGULAR STORE LAYOUT
-Advantage niya is madaming potential na
-Opposite of Geometric
dumadaan (exposure)
-Reduce the “Void Spaces”
-Disadvantage is Malaki chance magka THEFT
-Is an alternate classified either free flow or dahil dinadaan daanan siya ng mga potanginang
forced path layout tao (Expensive monitoring)
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-Allows pass through PLANOGRAM BASICS:

-Placed on strategic through locations

SCHEMATICS:

-Considering the different factors and elements

LOOP STORE LAYOUT that are present in the retail establishment.
-Maximize the space of your area, pero Fixed Merchandize Schematics
path

-Combines: Forced Path and Geometric

-For high turn over item stores with a smaller

place.

-You have to consider the slotting fees in

placing your SKU’s on the shelves

>Fetching Configuration: How customers are

expected to handle merchandize as they pick it
up from the shelves.

>Fixtures and Back Walls: Primary Instrument

that carries merchadized and is the main
PLANNOGRAM BASED RETAIL PROMOTIONS subject of planogram.
STRATEGY
=> GANDOLA ROCK: Isolated shelf from an aisle,
*Reminder: in creating your plannogram, you usually fragile to kaya isolated (example: liquor
have to be particular in details. (Measurements section)
and placements)
=> PEGBOARDS: Easy to customized and
moveable (example: Hardware, office store,
supply store etc.)
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=>ENCASEMENTS: Emphasizes the Highlight and HUMAN RESOURCE CONSIDERATIONS

Encasement (example: Mid-ranged priced)
Roles in a Retail firm
=> WATERFALLS: Normally can be seen in a
STRATEGIC MANAGEMENT: Invlolves high level
clothing line or shoes
decision making and planning that is
=>CAROUSEL: Saves a lot of space and can be responsible in what strategy are you going to
seen in clothing that don’t really require much use for the business. (Anything that has to do
exposure. Allows easy access on the perspective with the sustainability)
of consumer.
 Develop overall retail strategy
=>VAULTS: Very linear view, and has limited  Identify target market
exposure (examples: National bookstore)  Determine retail format
 Design organizational structure
=> BINS: Usually on sale or cheap products na
 Develop private-label merchandise
present sa clearance stores (exaple: preloved.
 Develop Internet/catalog strategy
toys stores)
 Develop global strategy
=>SLAT WALLS: Big Magnifying glass (example:
MERCHANDISE MANAGEMENT: Be involved in
Ciggerets)
stock keeping, inventory management,
=>VENDING MACHINES: Ideal for the food can’t negotiation with suppliers and vendors,
be expired easily relationship management and measure the
productivity.
=>COOLERS: Preservation and required certain
level of temperature to maintain the freshess  Buy Merchandise
 Select, negotiate with, and
=>FLOATING RACKS: Maximization of exposure evaluate vendors
SIGHTLINE:  Select merchandise
 Place orders
-A sightline refers to an unobstructed view a  Control merchandise inventory
customer’s eyes has between their position and  Develop merchandise budget
the positioning of a display. plans
-The symmetry and alignment of products  Allocate merchadise to stores
creates either a sighty or an unsightly view that  Review open-to-buy and
determines organization. stock positions
 Price merchandise
PROPS:  Set initial prices
 Adjust proces
-Non-Saleable objects in a store that are used to
convey a certain theme, style or ambience. STORE MANAGEMENT: Consider exposing
yourself in recruitment, staff development and
-To fulfil the aesthetic needs and compliment
maintenance of facilities that come up in your
the experience.
own strategy in a store. Known to be the
“Pinaka busy” kaya pinaka con niya is Holidays
or weekend kasi “peak days” nila ‘yun. (Literally
involved in the operation or hitting your targets
or KPIs)
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 Recruit, hire, and train store  Forecast, sales, cash flow, and
personnel profits
 Plan labor schedules  Raise capital from investors
 Evaluate store and personnel  Select and manage location
performance (real estate)
 Maintain store facilities  Visual Merchandising
 Locate and display merchandise  Develop and coordinate
 Sell merchandise to customers displays in stores and
 Repair and alter merchandise windows
 Provide services such as gift wrapping  Management Information System
and delivery  Work with all functional areas
 Handle customer complaints to develop and operate
 Take physical inventory information for
 Prevent inventory shrinkage merchandising, market,
accounting, finance, etc.
ADMINISTRATIVE MANAGEMENT: You can be a
 General Counsel (legal)
part of Marketing Department, Digital
 Work with all functional areas
Marketing, Graphics, Activations, Strategic
to be in compliance with laws
Marketing plan. (Parang head office na support
and regulations.
group)
*PAG IKAW AY MICRO ENTERPRISE, IT WILL BE
 Marketing
YOU. IKAW MAG AASIKASO Ng LAHAT.
 Promote the firm, its
merchandise, and its services SMALL RETAIL FIRM:
 Plan communication program
including advertising
 Plan special promotions and
events
 Message public relations
 Manage human resources
 Develop policies for managing
store personnel
 Recruit, hire, and train
managers
 Keep employee records *In HR planning, they only hire the FUTURE
 Manage supply chains needs of the organization. They don’t hire for
 Receive merchandise the past needs already of the business.
 Store merchandise
 Ship merchandise to stores
 Return merchandise to
vendors
 Manage financial performance
 Provide timely information on
financial performance
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LARGE RETAIL FIRM SOURCING (TALENT POOL):

 Agency Pool
 In-House Pool
 Regular Pool

PRODUCT TRAINING

 Company Training (Company-Dizer)

 Company Calibration (In-House-Dizer)
 Onsite Training (In-House-Dizer)

SALARY:

 Company-Dizer: Full salary from

*It can be global or local operation that is manufacturing allowance.
needed more man power  In-House-Dizer: Full salary from
MANPOWER: Depends on the company (there is Retailer + Incentive from
no Universal process. More on case-to-case Manufacturer
basis in the organizations) RELEVANT ISSUES IN HR
1. Recruitment: Selection and placement  ENDO or End Contract System:
(Crucial yung pag pili ng taman tao sa Complete absence of regularization
tamang trabaho)  Uniform Arrangements: Most big
2. Human Capital Management: How do retailers require their dizers to
you ensure that they are productive purchase their own uniforms.
(Measure the productivity)  Age Discrimination: Most dizers are
3. Employee Engagement: How do you aged between 20-27 years old.
keep people motivated to work. (How  Physique Discrimination: Most dizers
to experience them that it is work while are required to have slim figure with
in the organization) masculine structure.
4. Learning and Development: How do you  Breakage Penalties: Most dizers are
develop, grow and train them (Not just charged for their world related
inside the classroom, but also on the breakages.
job)
5. Employees Benefits: Crucial HR process
to prioritize or to put focus on once you
RETAIL SUPPLY CHAIN MANAGEMENT “SCM”
start working for these large retail
firms. -Supply chain is the flow and management of
resources across the retail enterprise for the
CLASSIFICATIONS
purpose of maintaining the retail operation
HIRING: profitability.

 Company (Manufacturer) “Dizers” – -‘Retail SCM’ can be defined as the

Man power agencies management of a network of a retail business
 In-House (Retailer) “Dizers” – Oranic processes and activities involving procurement
employees like Sales ladies of raw materials, manufacturing and
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distribution management of finished goods to transportation, replenishment strategy

reach the end user. SCM is also called the art of and transportation control.
management of providing Right Product, at the 3. Trade-offs in Logistics: All activities
right time, right place and at the right cost to must be well coordinated to achieve
the customer. the lowest total logistic cost. Trade-offs
may increase the total cost if only one
*Firm foundation or the “back bone” of a Retail
of the activities is optimized.
Firm
Retail SCM & Allocation Planning
RETAIL SUPPLY CHAIN DYNAMICS:
-Allocation planning is another strategy for
replenishments. This type of replenishments
strategy is sometimes called as pull-based
strategy. This is because the replenishment at
any given node is based on the demand signals
from the downstream node that pulls the
merchandise from the market node.

Retail Supply Chain & Supply Chain Network

Design or ‘SCND’
COMMON CHALLENGES -Network nodes and flow paths in a retail
BULL WHIP EFFECT: supply.

-The given image shows how the ‘Bull Whip -Efficient flow of materials and merchandise.
Effect’ has distorted the actual number of -Critical process for distribution intensive
products required at the point of sale as industries such as retail.
compared to number of products being
manufactured at the manufacturer. Logistics in Retail Supply Chain Management:

-Logistics is the ‘Back bone’ on which Retail

Supply Chains are driven

-Logistic Refers to management of flow of good

and supplies involving information, data and
documentation between two entities or points.

Key strategies for Retail Logistics Management

Solution provided by Retail Supply 1. Cross-ducking: Practice in Logistics in

Management: unloading or loading materials in
Manufacturer directly to customer. (If
1. Distribution Network Configuration: not the customer, to another mode of
Location, network of suppliers, transportation with little to no storage
distribution centers, production in between)
centers, warehouses, etc. 2. Hub and Spoke: Centralized Hub where
2. Distribution Strategies: Control of everything is sent to the Hub for
operations, delivery scheme, mode of distributions to the customers (from the
Pablo, Karl Ivan Anthony V.
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hub, your goods will travel to smaller VENDOR MANAGED INVENTORY (VMI)
location which are owned by the
-Concept aims to reduce inventory in the
company, which are called Spokes)
pipeline, besides achieving the concept of ‘JIT-
3. Flow-Time Analysis:
Just in Time’ where in the ownership of the
 One of the most crucial components
inventory lies with the supplier until the tie of
of retail supply chain is the speed
usage or sale.
with which the products move along
the supply chain and ultimately reach REVERS LOGISTICS IN RETAIL SCM
the customer
 Hence, ‘flow time’ is the time it takes -Back form end consumer to retailer as sales or
or the product to flow or move along warranty return or unsold inventory with
the supply chain and reach the trading partners. (Pano flow pag nagka returns
customer after the customer demand or unsold items)
is made. FUTURE OF SUPPLY CHAIN
*It is obvious that shorter ‘flow times’ can  Data Driven
prove to be a great competitive advantage for  Lean Warehouse
any retailers in today’s highly competitive retail  Agility
market. (Fast Moving)  Synergy and Collaboration
RETAIL DISTRIBUTION AND WAREHOUSE RETAIL INNOVATIONS
MANAGEMENT SYSTEM
THE CUSTOMER’S JOURNEY IS EVOLVING:
-Many factors and elements contribute to
successful operations of a retail distribution Technology powers shopping convenience: In-
center. The tie taken to detail the project and store communication not only help customer
build a model taking into account all finish their shopping list but also provide
consideration will go a long way in ensuring tailored promotions and detailed product
operational efficiency of the retail supply chain. information. And they eliminate checkout lines
(Makes easier)
The Warehouse Management System carries
out the following functions: ASSOCIATE’S JOURNEY IS CHANGING:

 Reporting function New tools improve retail jobs: Mobile-based

 Cycle Count Process: shift planners let associates manage their
schedules and give them more detailed,
-Another critical function of WMS is the Cycle accurate information so they can have better
Count Process which is required to maintain the interactions with customers. (Knowledgeable on
health of the inventory. WMS initiates daily what is happening)
cycle count and wall to wall counts as per user
specification and attributes. (Turnovers)

 Operations Front Functions

 Inventory Front Function
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Technology will impact store profitability The Future of Retail Depends on this 4 Major
trends and principles

1. Data: Practice every decision you make

must be based on actual data (educated
guess) “Numbers don’t lie”
2. Agility: Depends on popularity,
significance in corporation, especially in
large retail establishment (Major game
changer)
3. Resilience: You have to have the
capability to bounce back from the
adversity (Example yung pandemic
*To remain viable in brick and mortar, retailers ngayon na bumagsak yung ibang firms)
must constantly improve their store economics “aisle of the needle”
by simplifying, eliminating or automating 4. Innovation: Continuous improvement
routine activities. for the retail establishment (The name
of the game)
Same day Delivery: Ready for take-off

-GOOD LUCK SA EXAM

KINGINAMO KUNG SINO KA
MAN!!-

*Makukuha agad agad sa same day na inorder

na applicable na over the years mala
potanginang FB Market Place!

Better Service with Connected Inventory