MARKETING SPECIALIZATION

BUS 3.6 M (R22): RETAIL MANAGEMENT

Unit - I: Meaning and scope of retail marketing –: Definition and scope - Evolution of retailing-
different types of retail stores – trends in retail marketing – product retailing vs. service retailing
– relationship marketing in retailing –Retail marketing Enviroment- retailing environmental
issues in India- Barnding Retail marketing.
Unit - II: Retailing operations: Retail store location & layout – location strategy – location
criteria – interior and exterior design layout – retail store Management planning – visual and
display methods in retailing – store maintenance – vendor relationship. product and
merchandise management-Retail purchasing and pricing: Purchase management: Merchandise
purchasing -
Unit - III: HR & Legal compliances in retailing – Application of Technology in retailing
industry-Retail organization structure – recruiting and selection of retail personnel – customer
psychology – Training needs of employees – legal process – license requirement – regulatory
compliances-Consumer behaviour in retail marketing-Pricing strategies in retailing: every day
pricing - competitive based pricing - price skimming - market-oriented pricing
Unit - IV: Supply chain management and IT application in retailing: Point of sale – back end
IT applications – retail database – basic concepts of SCM – planning and sourcing of supply
chain operations – EDI – ERP – logistics planning – major supply chain drivers – scope of
SCM – problems in SCM – role of SCM in retail industry – developing supply chain systems.
Unit - V: Retailing industry in global market- retailing industry- formats –issues and challenges
in Indian Retail market –- Indian organised retail market - FDI in Indian organized retail sector-
case studies relevant to fashion retail – footwear – hyper markets – food courts – departmental
stores – banking & finance.

Unit - I: Meaning and scope of retail marketing –: Definition and scope - Evolution of retailing-
different types of retail stores – trends in retail marketing – product retailing vs. service retailing
– relationship marketing in retailing –Retail marketing Enviroment- retailing environmental
issues in India- Barnding Retail marketing.

Definition and scope of retail marketing: Retail marketing is the process of promoting and selling
products or services to consumers through various channels to increase sales. It can be done in
physical or digital stores, or a combination of both.
The main goals of retail marketing are to: attract new customers, keep existing customers coming
back, and increase sales.
Retail marketing can include:
• Advertising: Using physical or digital advertising to promote products
• Promotions: Using promotions like flash sales or limited-edition products to create urgency and
sales
• Public relations: Using public relations to promote products
• Partnerships: Using partnerships to promote products
• Online marketing: Using online marketing to promote products
• After-sale services: Providing after-sale services like free home delivery, gift wrapping, or
installation
Some strategies that retailers use to influence consumer perception and purchasing decisions
include:
• Psychological pricing
Using charm prices (ending in 9), bundle offers, or limited-time promotions
• Display and demonstration
Displaying and demonstrating products in a way that affects buyers' decisions

Evolution of retailing- The Evolution of Retail: How Technology is Transforming the Industry.
Like many other industries, the retail industry has gone through a significant transformation in
recent years, largely driven by advances in technology and artificial intelligence (AI), as well as
shifting customer preferences and behaviors.

Different types of retail stores: There are many different types of retail stores, including:
• Department stores: Large stores that sell a variety of goods, such as clothing, electronics, and
home goods
• Supermarkets: Medium to large stores that sell primarily groceries and household goods
• Specialty stores: Stores that focus on a narrow product area, such as clothing, electrical goods,
or entertainment
• Convenience stores: Small to medium stores that sell a few products, such as snacks, drinks,
and ready-to-eat meals
• Discount stores: Stores that sell products at lower prices than traditional retail stores
• Online stores: Stores that sell goods and services directly to customers online through a website,
online marketplace, or social media channel
• Warehouse stores: Medium to large stores that stock goods directly from the manufacturer
• Big box stores: Large stores that supply a range of goods in multiple product categories
• Value retailers: Stores that offer lower prices to members due to bulk purchasing

• Trends in retail marketing: Omnichannel marketing

A multi-channel approach that creates a consistent customer experience across all devices and
channels.
• Augmented reality (AR)
AR is becoming more important as shoppers try to bridge the gap between online and physical
 shopping.
• Contactless and cashless payments
These payments streamline the transaction process, making purchasing faster and reducing
waiting times.
• Return process incentives
Returns are more than double what they were a few years ago, so return process incentives are
becoming a powerful customer engagement tool.
• AI and personalization
AI and chatbots are helping retailers provide 24/7 customer service and personalized
recommendations.
• Sustainability and ethical consumerism
More consumers are looking for eco-friendly and socially responsible products.
• Social commerce
Customers can make purchases directly on social media platforms.
• In-store experiences
Retailers are focusing on creating immersive and memorable in-store experiences, including
pop-up shops, interactive displays, and events.
Other retail marketing trends include:
• Hybrid shopping
• Frictionless delivery
• Retail media
• Inspiration-led purchase journeys
• Athleisure
• In-store efficiency
• Second-hand luxury and dupes

Product retailing vs. service retailing: The main difference between product retailing and
service retailing is that product retailing sells physical objects, while service retailing provides
value through intangible skills, expertise, and time.
Here are some other differences between product and service retailing:
• Tangibility
Products are tangible and can be seen, touched, and possessed by customers. Services are
intangible and are experienced or consumed rather than possessed.
• Standardization
Products are more standardized and repetitive, while services can be more personalized.
• Purchase type
Products are more frequently a one-off purchase, while a service can be recurring.
• Returns
A product can be returned, while a service has to be canceled (usually with notice).
• Marketing
Marketing techniques and costs vary when selling services versus selling products.
• Focus
Merchandise retailers focus on products and assortment, whereas service retailers focus on
customer experience.

Relationship marketing in retailing:

Relationship marketing in retailing" refers to a marketing strategy where a retailer focuses on
building long-term, mutually beneficial relationships with customers by prioritizing their
satisfaction, loyalty, and retention, rather than just making a single sale, leading to repeat
business and positive word-of-mouth recommendations through personalized interactions and
tailored offerings.
Key aspects of relationship marketing in retailing:
• Customer-centric approach:
Putting the customer at the center of all marketing decisions, understanding their needs and
preferences to provide relevant products and services.
• Loyalty programs:
Implementing reward systems to incentivize repeat purchases and encourage customers to stay
loyal to the brand.
• Personalized communication:
Engaging with customers through tailored messages based on their purchase history,
demographics, and preferences across multiple channels (email, SMS, social media).
• Customer feedback mechanisms:
Actively seeking customer feedback through surveys, reviews, and focus groups to
continuously improve products and services.
• Building trust and rapport:
Establishing a positive relationship with customers through excellent customer service,
consistent quality, and transparent communication.

Retail marketing Enviroment:

The retail marketing environment is the physical and digital space where products are sold to
consumers, and the external factors that influence a retailer's ability to do so:
• Physical space
The atmosphere, layout, and design of a retail store, including window displays, signage,
lighting, scent, and music
• Digital space
The design, layout, and user experience of a retailer's website, mobile app, and social media
channels
• External factors
The micro and macro environments that affect a retailer, including suppliers, intermediaries,
 customers, competitors, legal, social, economic, demographic, and technological forces
The retail environment is important for creating a positive customer experience, influencing
consumer behavior, and building brand loyalty. Here are some ways retailers can create a
memorable retail environment:
• Use atmospherics
Create a warm and appealing store environment by using comfortable seating, fireplaces, jazz
music, or modern art and bright lights
• Design spaces for different purposes
Use different spaces for different purposes, such as carpeted fitting rooms to create a sense of
homeliness
• Use music to influence behavior
Play music that relates to the target market, or change the tempo to influence customers to
move through the space at a quicker pace
• Use promotional campaigns
Use various marketing channels such as advertising, social media, email marketing, and
influencer collaborations to reach the target audience

Retailing environmental issues in India:

The retail sector is one of the most carbon-intensive industries in the world, contributing to
roughly 25% of global greenhouse gas emissions. The retail value chain, which can account
for up to 98% of a retailer's emissions, is responsible for most of these emissions.
Some environmental issues in the retail industry include:
• Natural resource extraction: The extraction of natural resources for production
• Water and energy use: The amount of water and energy used in production
• Pollution: The pollution caused by the production and use of products
• Transportation: The transportation of products
• Disposal: The disposal of products
Some ways retailers can address these issues include:
• Using biodegradable packaging to reduce plastic in the environment
• Meeting regulatory requirements, such as emissions criteria for engines or sales restrictions on
VOC levels in products
• Rethinking how they do business in the world, including product sourcing, emissions, packaging,
order fulfillment, transportation, and last mile delivery.
Barnding Retail marketing: Retail branding is a strategy that helps retailers build a strong
brand identity and establish a positive perception in the minds of consumers. The goal of retail
branding is to differentiate a retail brand from its competitors, build a strong emotional
connection with consumers, and foster long-term customer relationships.
Here are some elements of retail branding:
• Brand identity
 The visual aspects of a brand, such as its logo, colors, design, and packaging. A strong brand
identity is important for creating a recognizable and memorable brand.
• Customer experience
Creating a positive customer experience both in-store and online.
• Marketing strategies
These include advertising, promotions, public relations, customer experience management, and
digital marketing.
• Communication
Communicating a consistent message across all channels to build trust, loyalty, and recognition
with the target audience.

Unit - II: Retailing operations: Retail store location & layout – location strategy – location
criteria – interior and exterior design layout – retail store Management planning – visual and
display methods in retailing – store maintenance – vendor relationship. product and
merchandise management-Retail purchasing and pricing: Purchase management: Merchandise
purchasing -

Retailing operations: Retail operations are the daily activities, systems, and processes that allow
retail stores to function efficiently and effectively. The goal of retail operations is to improve the
customer shopping experience while reducing the retailer's costs.
Retail operations include:
• Store layout: The design of both online and physical stores
• Inventory management: Maintaining inventory levels and ensuring products are available to
customers
• Customer service: Providing excellent customer service and ensuring customer service
standards are met
• Order fulfillment: Fulfilling customer orders
• Cash operations: Managing cash operations
• Supply chain management: Managing the supply chain and logistics
• Promotions and pricing: Developing pricing strategies and promotions
• Employee management: Managing staff, including scheduling shifts
• Accounting and returns: Handling accounting and returns
Retail store location & layout: When choosing a retail store location, you can consider things
like:
• Target audience: Who your customers are and where they shop
• Competition: What other businesses are in the area
• Accessibility and visibility: How easy it is for customers to find your store
• Proximity to complementary businesses: Whether there are other businesses that can help your
customers
• Physical space: The size and shape of the space you're considering
When designing a retail store layout, you can consider things like:
• Customer flow: How customers will move through the store
• Product display: How much product to display and how to arrange it
• Fixtures and fittings: How much space to leave for fixtures and fittings
• Signage: How to provide signage to help customers navigate the store
• Layout type: Whether to use a free-flow, angular, or diagonal layout
Here are some different types of retail store layouts:
• Angular layout
Uses curved walls and round shapes, and a mix of shelf and rack sizes to highlight premium
products. This layout is common in smaller stores and is good for high-end retailers.
• Diagonal layout
Shelves are arranged at an angle, which can help guide customers to the checkout counter. This
layout is good for stores with limited space, but it can be distracting and make it hard to find
products.
• Free-flow layout
There is no set path through the store, allowing customers to shop freely. This layout is good
for specialty retailers because it's easy to change and update.

Location strategy – location criteria – interior and exterior design layout:

Location Strategy

1. Proximity to Customers: Locate near target audience for convenience and accessibility.
2. Accessibility and Visibility: Choose a location with high foot traffic and visibility.
3. Competition: Analyze competitors' locations and avoid saturated areas.
4. Cost and Budget: Consider rent, utilities, and maintenance costs.

Location Criteria

1. Demographics: Align location with target audience's demographics, lifestyle, and

preferences.
2. Foot Traffic and Visibility: Assess pedestrian and vehicle traffic, as well as visibility from
surrounding areas.
3. Accessibility and Parking: Ensure easy access and sufficient parking for customers and
employees.
4. Zoning and Regulations: Comply with local zoning laws, permits, and regulations.

Interior Design Layout

 1. Functional Zones: Create separate areas for different activities, such as sales, customer
service, and storage.
2. Customer Flow: Design a logical and efficient customer flow to enhance the shopping
experience.
3. Product Display: Showcase products in an attractive and accessible manner.
4. Ambiance and Atmosphere: Create a welcoming atmosphere through lighting, colors, and
music.

Exterior Design Layout

1. Facade and Signage: Design an attractive and visible facade, including signage that reflects
the brand's identity.
2. Entrance and Accessibility: Ensure a welcoming and accessible entrance for customers.
3. Landscaping and Outdoor Spaces: Create inviting outdoor spaces, including landscaping and
seating areas.
4. Parking and Drop-off: Provide convenient parking and drop-off areas for customers.

Retail store Management planning: Retail store management planning involves developing
strategies to meet customer demand and maximize ROI. Some key elements of retail store
management planning include:
Market analysis
Helps identify threats and opportunities, and a company's strengths and weaknesses.
Goal setting
SMART goals should be set, and short-term improvements should be made while thinking long-
term.
Inventory management
Involves overseeing the flow of goods from suppliers to customers, including order processing,
stock tracking, and replenishment planning.
Assortment planning
Outlines what products will be sold in what locations and channels.
Strategic planning
Involves determining a strategic position, prioritizing objectives, developing a plan, executing
and managing the plan, and reviewing and revising the plan.
Store management also involves working with employees, suppliers, and customers. A retail
store manager is responsible for hiring and training staff, managing and motivating employees,
meeting sales goals, and ensuring customer satisfaction.

Visual and display methods in retailing: Here are some visual and display methods used in
 retail:
• Window displays
The first impression of a store, window displays can reflect the brand's identity and values. They
can also promote special sales and offers.
• Signage
Clear, attractive, and consistent signs can help customers navigate the store and learn about
products, prices, and promotions.
• Mannequins
Mannequins can be used in window displays and throughout the store to show how clothes fit.
• Seasonal displays
Seasonal displays can tell stories during events like Christmas, Valentine's Day, or summer
holidays. For example, a store might create a beach theme during summer or showcase winter
products when it gets colder.
• Lighting
Lighting can be used strategically to highlight merchandise and draw customers' attention.
• Interactive displays
Creative, interactive displays can increase referrals to a store and drive traffic to a store's website
or social media accounts.
Some tips for visual merchandising include: Knowing the ideal customer, Creating an inviting
environment, and Keeping up with trends.

Store maintenance – vendor relationship: Vendor relationship management (VRM) is a

strategic approach that organizations use to manage their interactions with suppliers or
vendors. VRM can help businesses:
• Improve operational efficiency
• Save costs
• Increase customer satisfaction
• Leverage vendor strengths
• Achieve strategic objectives
• Create strategic partnerships
• Negotiate favorable shipping costs
Here are some best practices for VRM:
• Communication: Schedule regular meetings or calls with vendors to discuss progress, address
concerns, and share information.
• Transparency and respect: Be transparent and respectful in negotiations.
• Performance review: Implement performance review processes.
• Predictable purchasing: Develop predictable purchasing practices.
• Payment terms: Adhere to reasonable payment terms.
• Long-term contracts: Strive for long-term contracts.
 Product and merchandise management: Product and merchandise management is a business
process that involves ensuring the right products are available at the right time, in the right
quantities, and at the right price. It includes the following activities:
• Sourcing and purchasing: Getting the right products to sell
• Pricing: Setting the right price for the products
• Presenting: Arranging the products in a way that attracts customers
• Selling: Selling the products to customers
Merchandise management also involves analyzing consumer preferences and using that
information to determine what products to stock and how to arrange them. The goal is to meet
consumer demand and optimize profit margins.
Some key components of merchandise management include: inventory control, assortment
planning, visual merchandising, and retail marketing strategies.
A merchandise management system (MMS) can help retailers track the performance of their
merchandise, identify good and poor sellers, and make timely decisions.

Retail purchasing and pricing: etail pricing is the price at which a product is sold to the end
customer. It is the sum of the manufacturing cost and all the costs that retailers incur.
Here are some retail pricing strategies:

•
Dynamic pricing
Prices are adjusted in real-time based on demand, competition, or time of day. This strategy is
effective in fast-paced retail environments.

•
Psychological pricing
Prices are set to influence consumer behavior. For example, retailers may set prices just below a
round number or use odd-numbered prices to make the price seem more attractive.

•
Penetration pricing
A new product or service is offered at a lower price to attract customers. The idea is to get
customers ready to pay the full price after the promotional phase.
• Competitive pricing
Prices are set based on what the competition charges. Retailers may set their prices a bit lower
than competitors to attract customers.

Purchase management: Merchandise purchasing : Merchandise purchasing is a part of the

process of buying goods from manufacturers or wholesalers to sell to customers. It's part of the
larger process of merchandise planning, which involves selecting, managing, purchasing,
displaying, and pricing products.
Here are some aspects of merchandise purchasing:
• Purchase requisition
A document that requests the purchase of goods or services from a team leader or executive
stakeholder. It should include the quantity, price, date, and department that requires the
purchase.
• Blanket purchase order
An agreement between a buyer and vendor to exchange goods for payment, but with the
specifics still to be confirmed.
• Negotiation
The retailer evaluates the merchandise and negotiates with the vendor for price, terms, and
conditions.
• Merchandise classification
Once the merchandise is ready to sell, the company classifies it as inventory.
Other aspects of merchandise planning include:
• Assortment planning: Planning how much product to buy to meet customer demand.
• Vendor relationships: Establishing relationships with vendors.
• Handling in stores: Handling merchandise in stores.
• Reordering: Reordering merchandise.
• Pricing and displaying inventory: Pricing and displaying inventory.
• Monitoring stock levels: Monitoring stock levels.
• Processing returns: Processing returns.
 Unit - III: HR & Legal compliances in retailing – Application of Technology in retailing
industry-Retail organization structure – recruiting and selection of retail personnel – customer
psychology – Training needs of employees – legal process – license requirement – regulatory
compliances-Consumer behaviour in retail marketing-Pricing strategies in retailing: every day
pricing - competitive based pricing - price skimming - market-oriented pricing

HR & Legal compliances in retailing: Human Resources (HR) and legal compliance are
important in the retail industry to ensure that a company follows all relevant laws and
regulations. HR and legal compliance can help a company avoid penalties, fines, and damage to
its reputation. They can also help a company build a good reputation, foster employee
engagement, and shape organizational culture.
Here are some HR and legal compliance considerations for the retail industry:
• Labor laws
HR is responsible for ensuring that the company complies with all relevant labor laws, including
those around wages, working hours, health and safety, discrimination, and harassment.
• Employee information
It's important to keep employee information secure, organized, and accessible across store
locations and countries.
• Policies
HR should write company policies, add them to the employee handbook, and ensure that
employees follow them.
• State-specific laws
Each state in India has its own set of regulations for HR compliance, including the Shops and
Establishments Act.
• Government rules
Some government rules for retail pricing include horizontal and vertical price fixing, price
discrimination, minimum price levels, unit pricing, and price advertising.
HR compliance can be complex because employment laws and regulations are constantly
changing. HR teams need to keep up with these changes and translate legal requirements into
enforceable company policies.

Application of Technology in retailing industry: Technology has transformed the retail industry
in many ways, including:
• Customer experience
Technology can help retailers improve customer satisfaction and engagement through
personalized experiences, in-store analytics, and mobile apps:
• In-store analytics: Retailers can use heat maps and foot traffic data to optimize store
layouts and product placement.
 • Mobile apps: Retailers can use apps to send push notifications, encourage repeat
purchases, and make it easy for customers to access rewards.
• Augmented reality (AR): AR can help customers visualize products in a real-world
context, which can help them make informed purchasing decisions.
• Inventory management
Technology can help retailers automate and facilitate inventory control, reduce inventory costs,
and improve forecasting.
• Operational efficiency
Technology can help retailers streamline operations, optimize stock and storage, and keep track
of accounts.
• Logistics and delivery
Technology can help retailers streamline logistics to minimize delays and maximize cost-
effectiveness.
• Surveillance and security
Technology can help retailers implement surveillance and security systems that use cameras and
sensors to detect and record people's movement.
• Online operations
Technology can help retailers conduct their operations online, eliminating the need for cashiers.
Other technologies used in retail include:
• Quick response (QR) codes
• Electronic price tags
• Digital advertising displays
• Self-checkout systems
• Personal selling assistants
• Smart kiosks

Retail organization structure: The organizational structure of a retail business is typically

hierarchical and focuses on three areas: centralized operations, store operations, and regional
operations. The structure typically includes:
• Sales staff: The frontline staff who interact with customers and carry out transactions
• Supervisors: Staff who manage sales staff
• Store managers: Staff who manage the store
• Area managers: Staff who manage areas
• Executive management: The top-level management

The organizational structure of a retail business can vary depending on the type of retailer, such
 as a single-store retailer, national chain, or diversified retailer. For example, a single-store
retailer may have a smaller organizational structure, with the owner performing both CEO and
manager duties.
Some other types of organizational structures include:
• Matrix structure: Groups individuals by two operational dimensions, such as function and
product
• Divisional structure: Groups employees into segments based on products or services
When choosing an organizational structure, senior leaders should consider the business's goals,
industry, and culture.

Recruiting and selection of retail personnel: Retail recruiters are responsible for screening
resumes and applications to shortlist candidates who match the job requirements. This involves
assessing qualifications, relevant experience, and evaluating whether candidates possess the
essential customer-centric skills that are critical in the retail industry.

Customer psychology: Understanding Customer Behavior

1. Motivations: Identify what drives customers' purchasing decisions, such as needs, wants, and
emotions.
2. Perceptions: Recognize how customers perceive your brand, products, and services.
3. Attitudes: Understand customers' attitudes towards your brand and competitors.

Influencing Customer Behavior

1. Emotional Connections: Create emotional bonds with customers through storytelling,

empathy, and shared values.
2. Social Proof: Leverage customer testimonials, reviews, and ratings to build trust and
credibility.
3. Scarcity and Urgency: Use limited-time offers, exclusive deals, and scarcity messaging to
encourage purchases.
4. Reciprocity: Offer value, such as free trials, demos, or consultations, to build relationships
and encourage loyalty.

Customer Decision-Making Process

1. Awareness: Create awareness of your brand, products, and services.

2. Consideration: Provide information and support to help customers evaluate options.
3. Preference: Build preference through emotional connections, social proof, and unique value
propositions.
4. Purchase: Make the purchasing process convenient, secure, and enjoyable.
 5. Retention: Foster loyalty and retention through excellent customer service, support, and
engagement.

Understanding Customer Personality

1. Personality Traits: Identify customers' personality traits, such as introversion, extroversion,

and risk tolerance.
2. Values and Interests: Understand customers' values, interests, and lifestyle to create
personalized experiences.
3. Behavioral Patterns: Analyze customers' behavioral patterns, such as purchasing habits and
engagement metrics.

Applying Customer Psychology

1. Segmentation: Segment customers based on demographics, behavior, and preferences.

2. Personalization: Create personalized experiences through targeted marketing, content, and
offers.
3. User Experience (UX): Design intuitive, user-friendly, and engaging experiences.
4. Customer Journey Mapping: Map the customer journey to identify pain points, opportunities,
and moments of delight.

Training needs of employees – legal process – license requirement: Training Needs of

Employees:

1. Onboarding: Provide new employees with essential knowledge, skills, and company culture.
2. Compliance Training: Ensure employees understand laws, regulations, and company policies.
3. Soft Skills: Develop employees' communication, teamwork, and problem-solving skills.
4. Technical Skills: Enhance employees' job-specific skills and knowledge.
5. Leadership Development: Train managers and leaders to develop strategic thinking, decision-
making, and coaching skills.

Legal Process

1. Contract Law: Understand employment contracts, non-disclosure agreements, and other

business contracts.
2. Employment Law: Familiarize yourself with laws related to hiring, firing, discrimination, and
harassment.
3. Intellectual Property Law: Protect company intellectual property, such as trademarks, patents,
and copyrights.
4. Compliance with Regulations: Ensure adherence to industry-specific regulations, such as
HIPAA or GDPR.

License Requirements

1. Business Licenses: Obtain necessary licenses to operate a business, such as sales tax permits
or zoning permits.
2. Professional Licenses: Ensure employees possess required licenses or certifications for their
profession, such as medical or law licenses.
3. Industry-Specific Licenses: Comply with industry-specific licensing requirements, such as
food service permits or construction licenses.
4. Software and Technology Licenses: Ensure proper licensing for software, hardware, and other
technology used in the business.

Consumer behaviour in retail marketing: Types of Consumer Behavior

1. Complex Buying Behavior: High-involvement purchases, such as luxury items or electronics.

2. Dissonance-Reducing Buying Behavior: Purchases that reduce cognitive dissonance, such as
buying a familiar brand.
3. Habitual Buying Behavior: Routine, low-involvement purchases, such as groceries.
4. Variety-Seeking Buying Behavior: Purchases driven by a desire for novelty or change.

Factors Influencing Consumer Behavior

1. Cultural Factors: Cultural background, values, and norms.

2. Social Factors: Social status, reference groups, and family influences.
3. Personal Factors: Age, income, occupation, and lifestyle.
4. Psychological Factors: Motivation, perception, learning, and attitudes.

Retail Marketing Strategies

1. Segmentation: Divide the market into distinct groups based on demographics, behavior, or
preferences.
2. Targeting: Select specific segments to target with marketing efforts.
3. Positioning: Create a unique image or identity for the retailer or product.
4. Store Atmosphere: Create an engaging and memorable in-store experience.

Digital Influences on Consumer Behavior

1. Online Reviews: Influence purchasing decisions through positive or negative reviews.

2. Social Media: Shape consumer attitudes and behaviors through social media interactions.
3. Influencer Marketing: Partner with influencers to promote products or services.
4. E-commerce: Provide a seamless online shopping experience.

Retail Technology and Consumer Behavior

1. Mobile Payments: Convenient and secure payment options.

2. Artificial Intelligence (AI): Personalized recommendations and customer service.
3. Virtual Reality (VR) and Augmented Reality (AR): Immersive shopping experiences.
4. Loyalty Programs: Reward customers for repeat purchases and loyalty.

Pricing strategies in retailing: every day pricing - competitive based pricing - price
skimming - market-oriented pricing:

Everyday Low Pricing (EDLP)

1. Consistent Pricing: Maintain low prices every day, eliminating the need for frequent
promotions.
2. Reduced Price Fluctuations: Minimize price changes to avoid confusing customers.
3. Increased Customer Loyalty: Foster loyalty through predictable pricing.

Competitive-Based Pricing

1. Market Research: Monitor competitors' prices to stay competitive.

2. Price Matching: Match or beat competitors' prices to attract price-sensitive customers.
3. Price Leadership: Set prices that influence the market and competitors.

Price Skimming

1. High Initial Price: Set a high price for a new product to maximize profits.
2. Targeting Early Adopters: Attract customers willing to pay a premium for innovative
products.
3. Gradual Price Reduction: Lower prices as competition increases or demand decreases.

Market-Oriented Pricing
1. Customer Value: Set prices based on the perceived value of the product or service.
2. Demand Elasticity: Adjust prices according to demand fluctuations.
3. Target Profit Margin: Balance prices with desired profit margins.

These pricing strategies can be combined or adapted to suit specific retail environments,
customer segments, and market conditions

Unit - IV: Supply chain management and IT application in retailing: Point of sale – back end
IT applications – retail database – basic concepts of SCM – planning and sourcing of supply
chain operations – EDI – ERP – logistics planning – major supply chain drivers – scope of
SCM – problems in SCM – role of SCM in retail industry – developing supply chain systems.

Supply chain management and IT application in retailing:

Here are key aspects of supply chain management and IT applications in retailing:

Supply Chain Management in Retailing

1. Supply Chain Visibility: Real-time tracking and monitoring of inventory, shipments, and
deliveries.
2. Inventory Management: Optimizing inventory levels, reducing stockouts, and minimizing
overstocking.
3. Demand Forecasting: Analyzing sales data and market trends to predict future demand.
4. Supplier Management: Building strong relationships with suppliers, negotiating prices, and
ensuring quality.
5. Logistics and Transportation: Managing the movement of goods from suppliers to stores.

IT Applications in Retailing

1. Enterprise Resource Planning (ERP): Integrating business functions, such as finance, HR,
and supply chain management.
2. Supply Chain Management Software: Automating supply chain processes, such as inventory
management and order fulfillment.
3. Radio Frequency Identification (RFID): Tracking inventory and shipments using RFID tags.
4. Electronic Data Interchange (EDI): Exchanging business documents, such as purchase orders
and invoices, electronically.
5. Cloud Computing: Storing and processing data in the cloud to improve scalability and
flexibility.
Benefits of IT Applications in Retail Supply Chain Management

1. Improved Efficiency: Automating processes and reducing manual errors.

2. Increased Visibility: Real-time tracking and monitoring of inventory and shipments.
3. Better Decision-Making: Analyzing data and making informed decisions.
4. Enhanced Customer Experience: Improving order fulfillment and delivery times.
5. Cost Savings: Reducing inventory costs, transportation costs, and labor costs.

Point of sale – back end IT applications:

Point of Sale (POS)

1. Hardware Components: Terminal, scanner, printer, and card reader.

2. Software Components: Operating system, application software, and database management.
3. POS Functions: Sales processing, inventory management, customer management, and
reporting.
4. Mobile POS: Using mobile devices, such as tablets or smartphones, as POS terminals.

Back-End IT Applications

1. Enterprise Resource Planning (ERP): Integrating business functions, such as finance, HR,
and supply chain management.
2. Inventory Management System (IMS): Managing inventory levels, tracking stock
movements, and optimizing stock levels.
3. Customer Relationship Management (CRM): Managing customer interactions, tracking
customer behavior, and analyzing customer data.
4. Supply Chain Management (SCM): Managing the flow of goods, services, and information
from raw materials to end customers.

Integration of POS and Back-End IT Applications

1. Real-Time Data Synchronization: Integrating POS data with back-end systems for real-time
inventory updates and customer information.
2. Automated Reporting: Generating reports on sales, inventory, and customer behavior from
integrated POS and back-end data.
3. Streamlined Operations: Improving efficiency and reducing errors by automating tasks and
integrating systems.
4. Enhanced Customer Experience: Providing personalized service and targeted marketing
through integrated customer data.
Basic concepts of SCM:

Here are the basic concepts of Supply Chain Management (SCM):

Definition: SCM is the coordination and management of activities, resources, and partners
involved in producing and delivering products or services from raw materials to end customers.

Key Components:

1. Supply Chain: Network of organizations, people, activities, and resources involved in

producing and delivering products or services.
2. Supply Chain Partners: Suppliers, manufacturers, distributors, retailers, and logistics
providers.
3. Supply Chain Activities: Sourcing, production, inventory management, transportation, and
delivery.

SCM Objectives:

1. Cost Reduction: Minimizing costs while maintaining quality and service levels.
2. Improved Quality: Ensuring products or services meet customer requirements and
expectations.
3. Increased Efficiency: Streamlining processes and reducing lead times.
4. Enhanced Customer Satisfaction: Providing products or services that meet customer needs and
expectations.

SCM Processes:

1. Supply Chain Planning: Forecasting demand, planning production, and allocating resources.
2. Sourcing and Procurement: Selecting and acquiring raw materials, goods, or services.
3. Production and Manufacturing: Transforming raw materials into finished products.
4. Inventory Management: Managing inventory levels, tracking stock movements, and
optimizing stock levels.
5. Transportation and Logistics: Moving products or services from one location to another.
6. Delivery and Fulfillment: Delivering products or services to customers.

SCM Benefits:

1. Improved Collaboration: Enhancing communication and cooperation among supply chain

partners.
2. Increased Visibility: Providing real-time visibility into supply chain operations.
3. Better Decision-Making: Enabling data-driven decision-making through analytics and
reporting.
4. Reduced Risk: Mitigating risks associated with supply chain disruptions, quality issues, and
regulatory non-compliance.

Planning and sourcing of supply chain operations – EDI – ERP: Planning and Sourcing of
Supply Chain Operations

Planning

1. Demand Forecasting: Predicting future demand to inform production and inventory decisions.
2. Supply Chain Optimization: Analyzing and optimizing supply chain operations to minimize
costs and maximize efficiency.
3. Capacity Planning: Determining the resources and capacity needed to meet demand.

Sourcing

1. Supplier Selection: Evaluating and selecting suppliers based on factors such as quality, cost,
and reliability.
2. Contract Management: Negotiating and managing contracts with suppliers.
3. Spend Analysis: Analyzing procurement data to identify opportunities for cost savings.

Electronic Data Interchange (EDI)

1. Definition: The electronic exchange of business documents, such as purchase orders and
invoices, between organizations.
2. Benefits: Improved efficiency, reduced errors, and enhanced supply chain visibility.
3. EDI Standards: Following industry standards, such as ANSI X12 or EDIFACT, to ensure
compatibility and interoperability.

Enterprise Resource Planning (ERP)

1. Definition: A software system that integrates and manages all aspects of an organization's
operations, including financials, human resources, and supply chain management.
2. Benefits: Improved efficiency, enhanced visibility, and better decision-making.
3. ERP Modules: Including modules for financial management, human capital management,
supply chain management, and customer relationship management.
Integration of EDI and ERP

1. Automated Data Exchange: Integrating EDI with ERP to automate the exchange of business
documents and data.
2. Improved Efficiency: Reducing manual data entry and improving data accuracy.
3. Enhanced Visibility: Providing real-time visibility into supply chain operations and financial
performance.

Logistics planning – major supply chain drivers: Logistics Planning

1. Definition: The process of designing and managing the flow of goods, services, and
information from raw materials to end customers.
2. Objectives: Reduce costs, improve customer service, and increase efficiency.
3. Key Activities: Transportation planning, warehousing, inventory management, and freight
forwarding.

Major Supply Chain Drivers

1. Transportation: Managing the movement of goods from one location to another.

2. Inventory: Managing the storage and tracking of goods.
3. Warehousing: Managing the storage and handling of goods.
4. Information: Managing the flow of information across the supply chain.
5. Sourcing: Managing the procurement of goods and services.
6. Production Planning: Managing the production process to meet customer demand.
7. Demand Forecasting: Predicting future customer demand.

Logistics Planning Strategies

1. Just-In-Time (JIT): Producing and delivering goods just in time to meet customer demand.
2. Third-Party Logistics (3PL): Outsourcing logistics operations to a third-party provider.
3. Fourth-Party Logistics (4PL): Outsourcing logistics operations to a fourth-party provider who
manages multiple 3PL providers.

Benefits of Effective Logistics Planning

1. Reduced Costs: Minimizing transportation, inventory, and warehousing costs.

2. Improved Customer Service: Providing fast and reliable delivery of goods.
3. Increased Efficiency: Streamlining logistics operations to reduce waste and improve
productivity.

Scope of SCM – problems in SCM – role of SCM in retail industry: Scope of SCM

1. Designing and Planning: Designing supply chain networks, planning production and
inventory, and managing logistics.
2. Sourcing and Procurement: Sourcing raw materials, procuring goods and services, and
managing supplier relationships.
3. Production and Manufacturing: Managing production planning, scheduling, and control.
4. Logistics and Distribution: Managing transportation, warehousing, and delivery of goods.
5. Returns and Reverse Logistics: Managing returns, repairs, and recycling of products.

Problems in SCM

1. Supply Chain Disruptions: Managing risks and disruptions in the supply chain, such as natural
disasters or supplier insolvency.
2. Inventory Management: Managing inventory levels, minimizing stockouts, and reducing
overstocking.
3. Transportation and Logistics: Managing transportation costs, reducing lead times, and
improving delivery reliability.
4. Supplier Management: Managing supplier relationships, ensuring quality and reliability, and
negotiating prices.
5. Visibility and Transparency: Providing real-time visibility into supply chain operations and
ensuring transparency across the supply chain.

Role of SCM in Retail Industry

1. Improving Customer Satisfaction: Providing fast and reliable delivery of goods, improving
product availability, and enhancing customer experience.
2. Reducing Costs: Minimizing transportation, inventory, and logistics costs, and improving
supply chain efficiency.
3. Increasing Efficiency: Streamlining supply chain operations, reducing lead times, and
improving delivery reliability.
4. Enhancing Competitiveness: Providing a competitive advantage through effective supply
chain management, improving product quality, and enhancing customer service.
5. Supporting Omni-Channel Retailing: Managing inventory, logistics, and delivery across
multiple channels, including online, offline, and mobile.

Developing supply chain systems: Here are key aspects of developing supply chain systems:
Steps to Develop Supply Chain Systems

1. Define Supply Chain Strategy: Align supply chain strategy with business objectives and goals.
2. Analyze Current State: Assess current supply chain processes, infrastructure, and technology.
3. Design Future State: Design a future-state supply chain that meets business objectives and
goals.
4. Develop Business Requirements: Define business requirements for supply chain systems,
including functional and technical requirements.
5. Select Supply Chain Software: Evaluate and select supply chain software that meets business
requirements.
6. Implement Supply Chain Systems: Implement supply chain systems, including configuration,
testing, and training.
7. Test and Validate: Test and validate supply chain systems to ensure they meet business
requirements.
8. Deploy and Maintain: Deploy and maintain supply chain systems, including ongoing support
and maintenance.

Key Components of Supply Chain Systems

1. Supply Chain Planning: Systems for demand planning, supply planning, and inventory
optimization.
2. Supply Chain Execution: Systems for managing logistics, transportation, and warehousing.
3. Supply Chain Visibility: Systems for tracking and tracing inventory, shipments, and orders.
4. Supply Chain Analytics: Systems for analyzing supply chain data and providing insights for
improvement.

Technologies Used in Supply Chain Systems

1. Cloud Computing: Cloud-based supply chain systems for scalability and flexibility.
2. Artificial Intelligence (AI): AI-powered supply chain systems for predictive analytics and
automation.
3. Internet of Things (IoT): IoT sensors and devices for real-time supply chain visibility.
4. Blockchain: Blockchain technology for secure and transparent supply chain transactions.
5. Machine Learning (ML): ML algorithms for supply chain optimization and prediction.

Unit - V: Retailing industry in global market- retailing industry- formats –issues and challenges
in Indian Retail market –- Indian organised retail market - FDI in Indian organized retail sector-
 case studies relevant to fashion retail – footwear – hyper markets – food courts – departmental
stores – banking & finance.

Retailing industry in global market: Here are key aspects of the retailing industry in the global
market:

Global Retailing Industry Trends

1. E-commerce Growth: Rapid growth of e-commerce, with online sales expected to reach $6.5
trillion by 2023.
2. Omnichannel Retailing: Integration of online and offline channels to provide seamless
customer experience.
3. Sustainability and Social Responsibility: Increasing focus on sustainable practices, social
responsibility, and environmental concerns.
4. Personalization and Customer Experience: Use of data analytics and AI to provide
personalized customer experiences.

Global Retailing Industry Segments

1. Food and Grocery Retailing: Largest segment, accounting for over 50% of global retail sales.
2. Fashion and Apparel Retailing: Fast-growing segment, driven by online sales and social media
influence.
3. Electronics Retailing: Growing segment, driven by demand for smartphones, laptops, and
other electronic devices.
4. Home Improvement Retailing: Growing segment, driven by increasing demand for home
renovation and decoration.

Global Retailing Industry Leaders

1. Walmart: World's largest retailer, with over $500 billion in annual sales.
2. Amazon: World's largest e-commerce company, with over $200 billion in annual sales.
3. Carrefour: French multinational retailer, with operations in over 30 countries.
4. Tesco: British multinational retailer, with operations in over 10 countries.

Challenges in Global Retailing

1. Intense Competition: Increasing competition from online retailers and changing consumer
behavior.
2. Supply Chain Complexity: Managing complex global supply chains and ensuring timely
 delivery.
3. Changing Consumer Behavior: Adapting to changing consumer preferences, such as
sustainability and social responsibility.
4. Economic Uncertainty: Managing economic uncertainty, including trade wars and currency
fluctuations.

Retailing industry- formats –issues and challenges in Indian Retail market: Retailing
Industry Formats:

1. Traditional Retailing: Small, family-owned stores, such as kirana shops and street vendors.
2. Organized Retailing: Modern retail formats, such as supermarkets, hypermarkets, and
department stores.
3. E-tailing: Online retailing, including e-commerce websites and mobile apps.
4. Malls and Multiplexes: Large shopping centers with multiple stores, restaurants, and
entertainment options.

Issues and Challenges in Indian Retail Market

1. Competition from Unorganized Sector: Traditional retailers and street vendors compete with
organized retailers.
2. Infrastructure Challenges: Inadequate infrastructure, such as roads, logistics, and storage
facilities.
3. Regulatory Framework: Complex regulatory environment, including laws and regulations
governing retail trade.
4. Supply Chain Management: Managing supply chains, including procurement, inventory
management, and logistics.
5. Changing Consumer Behavior: Adapting to changing consumer preferences, such as online
shopping and demand for experiential retail.
6. High Operating Costs: High costs, including rent, labor, and inventory costs.
7. Limited Access to Finance: Limited access to finance for small and medium-sized retailers.
8. Quality and Safety Concerns: Ensuring quality and safety of products, particularly in the
food and grocery segment.

Opportunities in Indian Retail Market

1. Growing Middle Class: Increasing disposable income and growing middle class.
2. Rising Demand for Organized Retail: Growing demand for modern retail formats.
3. E-commerce Growth: Rapid growth of e-commerce in India.
4. Government Initiatives: Government initiatives, such as the National Retail Policy, to support the
retail sector.
 Indian organised retail market - FDI in Indian organized retail sector: The Indian organized
retail market has witnessed significant growth in recent years, driven by factors like changing
consumer behavior, increasing disposable incomes, and favorable government policies.
Foreign Direct Investment (FDI) has played a crucial role in this growth.

FDI Policy in Indian Organized Retail

The Indian government has allowed 100% FDI in Single Brand Retail Trading (SBRT) under
the automatic route, enabling foreign companies to set up their own retail stores in India ¹.
However, for Multi-Brand Retail Trading (MBRT), FDI is limited to 51% and requires
government approval.

Impact of FDI on Indian Organized Retail

FDI in Indian organized retail has brought in international best practices, improved supply
chain management, and enhanced customer experience. It has also created new job
opportunities and stimulated economic growth. However, some critics argue that FDI in retail
could lead to the displacement of small, local retailers and impact the domestic industry.

Key Players in Indian Organized Retail

Some prominent international retailers operating in India include:

- Amazon
- Walmart
- Carrefour
- Shopper Stop

These players have partnered with local companies or invested in Indian retail ventures,
contributing to the growth of the organized retail sector.

Overall, FDI has been a significant catalyst for the growth of Indian organized retail, bringing in new
investments, technologies, and management practices.

Case studies relevant to fashion retail – footwear – hyper markets – food courts –
departmental stores – banking & finance:

Fashion Retail
1. Zara's Fast Fashion Supply Chain: Analyze how Zara's agile supply chain enables the
company to quickly respond to changing fashion trends.
2. H&M's Sustainability Initiatives: Examine H&M's efforts to reduce environmental impact
and improve social responsibility in its supply chain.

Footwear

1. Nike's Global Supply Chain Management: Study how Nike manages its global supply chain
to ensure timely delivery of high-quality products.
2. Adidas' Speedfactory Initiative: Investigate how Adidas' Speedfactory concept enables rapid
production and customization of athletic footwear.

Hypermarkets

1. Carrefour's Hypermarket Strategy: Analyze Carrefour's approach to creating a one-stop

shopping experience for customers.
2. Tesco's Hypermarket Format: Examine Tesco's successful hypermarket format and its
impact on the retail industry.

Food Courts

1. Food Court Strategy at Westfield Malls: Study how Westfield malls create engaging food
court experiences that drive customer traffic and sales.
2. The Impact of Food Courts on Mall Performance: Investigate the effect of food courts on
mall foot traffic, sales, and customer satisfaction.

Departmental Stores

1. Macy's Omnichannel Retailing Strategy: Analyze Macy's efforts to integrate online and
offline channels to provide a seamless shopping experience.
2. Harrods' Luxury Retailing Strategy: Examine Harrods' approach to creating a luxurious
shopping experience that justifies high prices.

Banking & Finance

1. Digital Transformation at DBS Bank: Study how DBS Bank leveraged digital technologies
to improve customer experience, reduce costs, and increase efficiency.
2. Mobile Banking Strategy at Bank of America: Analyze Bank of America's approach to
mobile banking, including its mobile app and digital wallet offerings.