RETAIL MANAGEMENT
QUESTION 1. Explain different types of retail formats.
ASWER: There are mainly two different types of retail formats:
1. Store retail format
The following are the types of retail store under store retail formate:
a. Convenience store: it is generally a well situated, food oriented with long operating hours and a limited numbers of items. Consumers use a convenience store, for fill-in items such as bread, milk, eggs, chocolates and candy , etc .
b. Supermarkets: These are diversified store which sell a broad range of food and non food items. Which typically carries household appliances, apparel items , bakery, jams etc
c. Departmental stores: These consist of several products
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Direct selling :this involves contacting the end customers personally at home or at the workplace.
Question 2. Discuss the components of merchandising management .
Answer: Merchandise management as a function concerns itself with the selection of merchandise and ensuring its availability in the right quality at the right place in the retail store. Merchandise management is a key activity in the management of the retail business.
Components of merchandising management :
• Merchandise analysis : The retailer needs to be aware of the target segment of the consumers before he makes the decision to buy the merchandise . planning merchandise buying should be aligned with the taste and preferences of the consumer.
• Merchandise planning : it is well devised thought to say that ‘well brought is half sold’ . Buying objective should be well designed and structure and a well through plan is required to buy merchandise before the business season.
• Merchandise control : control mechanism of merchandise decide the effectiveness of the laid out policies and procedures and its aligment or deviation from the set standards . standards would be basically means objective and goals for
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It is also sometimes called as sign board. The store marquee is usually painted or is a neon light displaying the store name, trade mark and other important information of the retail store . it helps the retailer to identifying the store and in attracking customer and it is an integration part of the building façade.
• Store front : store front is the next important element of store design that influences the customer . A beautiful storefront helps in attraction the customer from entering the retail store . the store front is reflection of the personality of the story . the manner in which the merchandise is display in the show windows also has a lot do with enticing customer into the story.
• Atmospheric and aesthetics : Atmospheric is referred to as a store physical characteristics that are used to develop the retail image and draw customer. It describe the physical elements in a store design that appeals to consumer and encourage them to buy. Some of the key ingredients of atmospherics are flooring , ceiling , light , music ,level of cleanliness , signages used within the store
Standards are typically low level controls that help enforce and support these policies. They help ensure consistency and usually contain controls relating to software or hardware. Guidelines usually consist of recommended, but non-mandatory controls. The purpose of these controls is to help support standards or to serve as a reference when no applicable standards are in place. They are not typically
Nordstrom’s store interior design has a traditional wood, elegant appearance and, at the same time, conventional. From the main entrance, people can appreciate the illuminated interior lights of Nordstrom with its picturesque windows placed on both sides of the door where they used to collocate inanimate mannequins dressed in the last attire of the season; a festive recreation to enhance consumerism or, Nordstrom’s’ magazines postcards. The retailer entrance is like a short tunnel, an abstract or geometric museum painting that magnetizes people to discover their merchandise variety. At the end of the entrance, in the form of the mini art exhibition tunnel, people can find an empty corridor of merchandise that give people a sensation, a wider and more orderly view of the store, which takes people to the heart of Nordstrom store, the stairs.
Everyday items are located towards the front of the store and similar items are grouped such as toys and electronics. Each department is specifically designed to showcase the product in an appealing way. For instance, the design of the fresh produce area uses wood surfaces for a natural and homey feel. The beauty aisle is trimmed with bright lights to draw attention to each item on the shelf. The cleanliness of the store differentiates itself from competitors like Wal-Mart.
the business needs to sell and distribute the products to wholesalers who will then sell them to retailers. Or the business will sell directly to the retailers. We would sell our product in the supermarket at the front, or the cereal aisle because it would instantly grab the customers attention when they come into the store. Also it would be wise to put our product in the cereal area because people might shop by
The large anchor stores are usually strategically located at the end points of the shopping mall. The placement of the stores are easily accessible and offer ample parking. Internally, the floor plan is tactically set up to draw the attention the consumer. The mall entrance for both stores opens up to cosmetics, perfume, shoes and ladies apparel. These areas generally account for more than 40% of the store sales.
While vis-ual merchandising is set of activities most commonly inside the store aimed at attracting consumer attention, merchandising can be defined as set
Retail positioning aims to provide competitive edge by differentiating the retailer from its competition. This differentiation can be achieved through retail offerings that appeal to, and are easily identifiable to by its target market. This process is done by selecting market segmentations and matching them to the retail offerings as precisely as possible. It is vital to understand the consumers needs and wants in order to make a proper match and be distinguished from other retailers. Nordstrom distinguishes itself from other retailers by positioning itself as an upscale fashion store with outstanding customer service, and its multichannel approach.
Even though, that was a fundamental system in the market which is bar coding of all items sold out throughout stores. Until the bar coding requirement came into action completely, each store shall place bar-coded stickers on items to check purchase registers. However, it was quite costly in conditions of both workers and materials. As a result, it led to inaccuracies of the inventory control systems and jeopardized using the developed marketing analysis reports form automated sales systems effectively. And, the report was about the marketing decisions which items must be bundled and maximize profit pricing of products, and the reordering of profitable commodities (Sebora, T., Rubach, M. and Cantril R.,
The study will apply various theoretical models in order to highlight the overall performance of Eataly, evaluating the factors that play an important role for the success of Eataly. Eataly is an Italian market being the largest all around the world; it offers variety of food and beverages, restaurants, retail items, bakery as well as cooling school. The study will provide an overview of Eataly, and the challenges they faced while operating within the market place. Retail industry presents relation between producers and consumers, thus, it allows the industrial firm reaching the market successfully and develop two way information transfer and services. according to Sebastiani & Montagnini (2014), among distributors, the grocery stores covers
In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential. Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008).
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.
Largely, the entry of the company into the distribution channels has limited the threat of major or powerful suppliers. The company has created its own retail stores and online web marketing. This approach aims at capturing the consumers that would want to order the product directly from the manufacturer. In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company.
Written Rules According to this theory, there should be well standardized rules and regulations in organization. These rules should well defined and in written foam (McNamra, 2010 and Olum, 2004). 2. System of Task Relationship
Provide good customer service where customers are contacted, when a boat is purchase and a customer care call even having a boat over a period of time. 3. The constant innovation and patenting so customers can get better product each year, because in the marketing industries parts can be copied