RETAIL MANAGEMENT

POINTERS
MODULE 2
BY HENNA PUNJABI
 Types of Retail Customers
1. Time killers 7. Self-actualizing
2. Focused fulfillers buyer
3. Product groupies 8. Analytical buyer
4. General Browsers 9. Relater
5. Pleasure seeker 10. Driver buyer
6. Apathetic buyer 11. Socializer buyer
 Factors influencing retail shopper
(consumer’s decision-making)
1. Range of merchandise
2. Convenience of shopping
3. Travel time
4. Stage of family life cycle
5. Socio-economic factors
Changing profits of retail shoppers
1. How to attract customers into your store
2. How to minimize the purchases from
customers while they are in the store
3. How to create a unique shopping experience
for the customer
4. How to create a positive word of mouth
 Market Research to understand
customers
1. Collection of data
2. Analysis of data
3. Deriving conclusions on the basis of data
collected

PRIMARY DATA
SECONDARY DATA
 Research before setting a store
A. Demographic data
B. Consumer data
 Research before setting a store
A. Demographic Data
1. Population
2. GDP & Purchasing Power Parity
3. Disposable Income
4. Age of population

B. Consumer data
 Research before setting a store
B. Consumer data
1. Buying & spending patterns
2. NCAER data & MISH survey
3. Understanding trends
4. NRS & IMRB
5. Socio Economic Classification (SEC)
 Research after setting a store
1. Evaluating customer satisfaction with existing
range of products or service
2. Generating ideas for and developing new
products
3. Evaluating the acceptability of products &
pricing of products
4. Understanding customer profiles
5. Focus Group Discussions
6. Observation methods
7. Profiling customers
 CRM in Retail
1. It aims at creating customers
2. It is technology driven
3. Technology-based customer solutions
4. Improved shareholder value
5. Focuses on people rather than product
6. Systematic approach to consumer life cycle
 Objectives of CRM in Retail
1. Building loyalty
2. Segmentation
3. Promotions
4. Purchases
5. Retention
 Customer Retention Approaches
1. Frequent shopper programmes
2. Special customer service
3. Personalization
4. Community
 Retail Strategy
A clear and definite plan that the retailer outlines
to tap the market and build a long-term
relationship with the consumers.

Areas of retail strategy :

1. Store location
2. Merchandising
3. Pricing
4. Marketing
Steps in retail strategy
• Establish Mission

• Analyse situation

• Identify Options

• Set Objectives

• Obtain & allocate resources

• Develop implementation plan

• Monitor & Progress

 Step 1 : Define Mission
1. What products& services be offered
2. Which customers will be served ?
3. Geographic areas that the organisation
chooses to operate in
4. Manner in which the firm intends to
compete in its markets
Step 2 : Conduct a situation analysis

POLITICAL ECONOMICAL
• Political stability, • Economic growth,
Govt. policy, labor Monetary policy,
laws, foreign players level of taxation,
policies consumer confidence

SOCIAL TECHNOLOGICAL
•Income distribution, • Level of technology
size of population, usage, penetration of
demographics, Rate of internet, penetration
population growth, age of mobile technology
profile of population
 Identify Options
Existing New

Existing Market Penetration Market Development

/ Market Expansion

New Retail Format Diversification

Development
 Set Objectives
1. Sales volume targets
2. Market share targets
3. Retail expansion targets
4. Profitability to be achieved
5. Liquidity
6. Return on investment
 STORE LOCATION SELECTION
• Important decisions that a retailer has to
make
• Moving leads to loss of customers and
employees
 Types of retail locations
1. Freestanding / Isolated store
2. Part of business district
3. Part of a shopping centre
 Factors influencing store location
1. Market identification
2. Determine the market potential
- Demographic features
- Characteristics of households
- Competition and compatibility
- Laws and regulations
- Trade area analysis
3. Identify alternative sites
4. Select the site
- Traffic
- Accessibility of market
- Amenities
- To buy or to lease
- Product mix offered
HRM in Retail
 Organization Structure

OWNER / MANAGER RESPONSIBILITIES

Buying promotion, Basic HR Operational central
and general management

EXTERNAL ADVISORS
BACK OFFICE STAFF RESPONSIBILITY BASIC STAFF RESPONSIBILITY
Lawyers, Chartered Accounting and record keeping, Data
Accountants, Bankers, entry, Inventory control, purchase
Customer service, selling stork
etc. orders, time keeping and payroll, control, display and
facilities management housekeeping
 Significance (importance) of
HRM in Retailing
1. Social objectives
2. Personal objectives
3. Functional objectives
4. Organizational objectives
7 S Framework
 HR functions (in general)
1. Job analysis and job design
2. Recruitment & selection
3. Employees’ training & development
4. Performance management
5. Compensation & benefits
6. Labor relations
7. Managerial relations
 Job Analysis Process
Collection of factual materials

Completing job description blank

Preparation of job specification

Preparation of report

Approval of report
 Recruitment
Recruitment is the process of searching for
prospective employees and stimulating them to
apply for the jobs in the organization.
 Selection
Selection is the process by which qualified and
suitable store employees are selected and
placed on the jobs according to their
capabilities and organization’s requirements.
 Placement
Placement means offering of the job to the
finally selected candidates. It is the duty of the
HR department or the store manager to dictate
the job title and offer a job to the new entrant,
who is the most suited to his / her abilities,
skills, degrees and past experience.
 Selection Process
Receipt of applications

Scrutiny of application received

Employment test (written & psychological)

Selection interview

Reference check

Medical fitness check

Final appointment
HR functions (in retailing)

Status

Employm
ent
Employer Employee
Relatinshi
p

Employee
Represent
atives
 HR functions in Retail
1. Identifying various roles in organization
2. Recruiting the persons with the right
attitude to fit the jobs
3. Training
4. Motivation of employees
5. Evaluation of employee performance
 Factors influencing designing
organisation structure
1. Strategy
2. Environment
3. Size of the organization
4. Age of the organization
THANK YOU