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Indian Retail Industry 2014

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MEANING 19-2 Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets,door-to-door or by delivery. 


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Organised VS Unorganised Retailing 19-3


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OVERVIEW 19-4 10%- GDP 8%- EMPLOYMENT 95%- UNORGANISED REAILING ORGANISED PENETRATION LEVEL 85%- US 80%- FRANCE 66%-JAPAN 20%- CHINA 5-6%- INDIA


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Types by products 19-5 Food products — typically require cold storage facilities. Hard goods or durable goods ("hard-line retailers") — appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time. Soft goods or consumables — clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.


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Types of retailers outlets 19-6 Department Store  Supermarkets  Warehouse retailers  Speciality Retailers  E-tailer  Convenience Retailer  Discount Retailer 


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Services Offered by Retailers 19-7


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Three Basic Tasks of Retailing LO 1


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Selling Process in the Retail Environment 19-9


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Customers Point Of View 19-10 Self service Self selection Limited service Full service


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World’s top retailers 19-11 Wal-Mart Kroget Target Walgreen Costco Home depot CVS caremark Lowe’s Best buy


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India’s top retailers 19-12 Pantaloon retail K Raheja group Tata group RPG group Landmark group Bharti wall mart Reliance


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Retail pricing 19-13 Cost plus pricing Suggested retail pricing


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Transfer mechanism 19-14 Counter price Delivery Order Door to door Self service Digital delivery


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BPO SERVICES For Retail Industry 19-15


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Retail Strategy The main focus: Bringing harmony between the controllable variables and the uncontrollable ones. Uncontrollable variables drive the controllable ones! Developing an Overall Retail Strategy Retail Marketing Mix: Controllable Factors Competition & Environment: Uncontrollable Factors What’s the 3rd element of retail Strategy? Target Market Controllable Variables Store Location Store Format & Layout Merchandise Management Pricing Communications Uncontrollable Variables Consumers Competition Technology Economic Conditions Seasonality Legal Restrictions


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19-17 Marketing mix


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Composition of key elements Place Product Price Promotion People Process Physical Environment


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Key Element Place (store location) Target market Channel structure Channel management Retailer image Retail logistics Retail distribution


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Key element Product (merchandise) Product development Product management Product features and benefits Branding Packaging After-sales services


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Key element Price Costs Profitability Value for money Competitiveness Incentives Quality Status


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Key element Promotion Developing promotional mixes Advertising management Sales promotion Sales management Public relations Direct marketing


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Key element People element Staff capability Efficiency Availability Effectiveness Customer interaction Internal marketing


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Key element Process element Order processing Database management Service delivery Queuing system Standardisation


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19-25


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Customer Service 19-26 The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. These activities increase the value customers receive from the merchandise and service they purchase.


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Strategic Advantage Through Customer Service 19-27 Good service keeps customers returning to a retailer and generates positive word-of-mouth communication, which attracts new customers The challenge of providing consistent high-quality service offers an opportunity for a retailers to develop a sustainable competitive advantage


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19-28 Customer Service Strategies Personalized Approach Greater benefits to customers Greater inconsistency Higher cost Standardized Approach Lower cost High consistency Meets but does not exceed expectations


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Personalized Approach 19-29 Personalized Approach encourages service provider to tailor the service to meet each customer’s personal needs. Drawback: Service might be inconsistent Customized service is costly


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Standardization 19-30 Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently. Retailers that use this approach: McDonald’s Wal-Mart IKEA Dollar General Save-A-Lot The McGraw-Hill Companies, Inc./John Flournoy, photographer


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Perceived Service 19-31 Cues used to assess service Reliability Assurance Tangibility Empathy Responsiveness Perceived Services – evaluations are based on perception


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Assessing Service Characteristics 19-32 Reliability: accuracy of billing, meeting promised delivery dates Assurance (trust): guarantees and warranties, return policies Tangibility: appearance of store and salespeople Empathy: personalized service, receipts of notes and emails, recognition by name Responsiveness: returning calls and emails, giving prompt service


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Challenges 19-33


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Recent trends In 2013 19-34


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19-36 Any query


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