Retail marketing 2

1. UNIT – IV : RETAIL STORE DESIGN
• Store layout
• Significance of Store layout
• Types of store layout
• Layout selection – Chief Considerations
• Need and Importance of Store Environment
• Visual Merchandising
• Promotions Strategy
• Retail Communication Mix
• POP Displays.

2. Store layout
• Store layout is the design of a store's floor space and the
placement of items within that store. Store layout helps
influence a customer's behavior, which means when done right, it's
a key strategy to a store's prosperity.

3. Objectives of store management
• Store Management refers to the efficient management of materials.
• Store management is concerned with ensuring that all the activities
involved in storekeeping are carried out efficiently and economically by
those employed in the store.
▫ To ensure uninterrupted supply of materials without delay to various
users of the organization.
▫ To prevent overstocking and under stocking of the materials
▫ To ensure safe handling of materials and prevent their damage.
▫ To protect materials from pilferage, theft, fire and other risks
▫ To minimize the cost of storage
▫ To ensure proper and continuous control over the materials.
▫ To ensure most effective utilization of available storage space
▫ To optimize the efficiency of the personnel engaged in the store

4. Functions of store management
• Receipt: It receives and accounts for inventories.
• Storage: It stores and preserves the inventories protecting them from
damage, pilferage, and deterioration.
• Retrieval: It helps easy access to materials and ensures optimum space
utilization. Materials can be located and retrieved with ease.
• Issue: It satisfies the demands of consuming departments by the proper
issue of inventories on receiving the requisitions.
• Records: It keeps proper records of the issue and receipts.
• HouseKeeping: Space is kept neat and clean so that material handling,
preservation, storage, issue, and receipt is done satisfactorily.
• Surplus Stock: Scrap and surplus disposal management is a function of
stores.
• Verification: Physical verification and purchase initiation to avoid stock-
outs.
• Co-ordination and Co-operation: To interface with the production
and inspection department.

5. Significance of Store layout
• “A store layout is the design of a store’s floor space and
the placement of items within that store.”
• Predict consumer behavior
• Maximize square footage
• Provoke additional sales
• Deter shoplifters
• Foster positive attitudes

6. Types of store layout
• Straight Store Layout
• Diagonal Store Layout
• Angular Store Layout

7. Continued
• Geometric Store Layout
• Mixed Store Layout

8. Layout selection – Chief Considerations
• Allocation of floor
space
• Classification to
store offerings
• Determination of
traffic flow pattern
• Determination of
space needs
• Arrangement of
individual products

9. Need & Importance of Store Environment
• Set of physical characteristics of the store (such as
architecture, layout, display, colors, lights, temperature,
sounds, smells, etc.) that, as a whole, contribute to
creating an image in the shopper's perception, influencing
emotions and purchasing behavior.
• Staff
• Technology
• Face to face questionnaires
• Accompanied shopping trips
• Eye tracking

10. Visual Merchandising
• Visual Merchandising is the
practice in the retail industry of
optimizing the presentation of
products and services to better
highlight their features and
benefits.
• The purpose of such visual
merchandising is to attract,
engage, and motivate the
customer towards making a
purchase.

11. Essentials of visual merchandising
• Lighting
• Signage
• Color
• Smell
• Display
• Labels
• Dummies
• Music
• Theme

13. Role of visual merchandiser
• Visual merchandisers present,
arrange and display items in
stores and shop windows,
that is, in crucial places where
customers get to see, pick &
buy products.
• Effective displays are
typically clutter-free and
surrounded by space to allow
all visual focus to be on the
products being displayed.
• The chosen area should be
easily viewed as customers
enter the store or easily
viewed near the register.

14. Promotions Strategy
• A promotion strategy is key for positioning your
brand on the market, making people aware of
the products or services you offer, and how they
could benefit by choosing you.
• But with so many brands offering similar
products or services as you do, your promotional
techniques may be decisive for many potential
clients.
• Pull vs push strategy

15. Retail Communication Mix

16. POP Displays
• A point-of-purchase (POP) display is marketing
material or advertising placed next to the
merchandise it is promoting.
• These items are generally located in the checkout
area or where purchase decisions are made.
• Seventy percent of retail purchases aren't decided
until the customer is in the store.
• Unlike marketing campaigns designed to get
customers in stores, POP displays focus on
customers' in-store experience by bringing attention
to particular brands or special offers.

17. POP displays

19. UNIT – V : DISTRIBUTION
MANAGEMENT
• Role and functions of channels of distribution
• Selecting channel Members – Criteria;
• Motivating the Channel participants
• Controlling channel participant
• Managing Channel Conflicts
• Physical Distribution System.

20. Channels of distribution
• Distribution channels include wholesalers, retailers,
distributors, and the Internet.
• In a direct distribution channel, the manufacturer sells
directly to the consumer.
• Indirect channels involve multiple intermediaries before
the product ends up in the hands of the consumer.
• Philip Kotler defines channel of distribution as “a set of
independent organisations involved in the
process of making a product or service available
for use or consumption”.

21. Continued
• A Customer wants to purchase toothpaste, salt
and wheat.

22. Functions of channels of distribution
1. Sorting:
• Middlemen obtain the supplies of goods from various suppliers and sort them out into similar
groups on the basis of size, quality etc.
2. Accumulation:
• In order to ensure a continuous supply of goods, middlemen maintain a large volume of stock.
3. Allocation:
• It involves packing of the sorted goods into small marketable lots like 1Kg, 500 gms, 250 gms etc.
4. Assorting:
• Middlemen obtain a variety of goods from different manufacturers and provide them to the
customers in the combination desired by them. For example, rice from Dehradun & Punjab.
5. Product Promotion:
• Sales promotional activities are mostly performed by the producer but sometimes middlemen also
participate in these activities like special displays, discounts etc.
6. Negotiation:
• Middlemen negotiate the price, quality, guarantee and other related matters about a product with
the producer as well as customer.
7. Risk Taking:
• Middlemen have to bear the risk of distribution like risk from damage or spoilage of goods etc.
when the goods are transported from one place to another or when they are stored in the god-
owns.

23. Types of Distribution Channels
• 1. Direct Channel or Zero Level Channels:
• When the producer or the manufacturer directly sells the goods to
the customers without involving any middlemen, it is known as
direct channel or zero level channel. It is the simplest and the
shortest mode of distribution. Selling through post, internet or door
to door selling etc. are the examples of this channel. For example,
Mc Donalds, Bata, Mail order etc.
• Methods of Direct Channel are:
• (a) Door to door selling
• (b) Internet selling
• (c) Mail order selling
• (d) Company owned retail outlets
• (e) Telemarketing

24. Continued
2. Indirect Channels:
• When a manufacturer or a producer employs one or more middlemen to distribute
goods, it is known as indirect channel.
(a) Manufacturer-Retailer-Consumer (One Level Channel):
• This channel involves the use of one middleman i.e. retailer who in turn sells them to
the ultimate customers. It is usually adopted for speciality goods. For example Tata
sells its cars through company approved retailers.
• Manufacturer→ Retailer→ Consumer
(b) Manufacturer-Wholesaler-Retailer-Customer (Two level channels):
• Under this channel, wholesaler and retailer act as a link between the manufacturer
and the customer. This is the most commonly used channel for distributing goods
like soap, rice, wheat, clothes etc.
• Manufacturer→ Wholesaler→ Retailer→ Customer
(c) Manufacturer-Agent-Wholesaler-Retailer-Consumer (Three level
channels):
• This level comprises of three middlemen i.e. agent, wholesaler and the retailer. The
manufacturers supply the goods to their agents who in turn supply them to
wholesalers and retailers. This level is usually used when a manufacturer deal in
limited products and yet wants to cover a wide market.
• Manufacturer → Agent → Wholesaler → Retailer → Consumer

25. Selecting channel Members – Criteria
• (1) The Nature of the Product
• (2) The Nature of the market
• (3) The Nature of Middlemen
• (4) The nature and size of the manufacturing
unit
• (5) Government Regulations and Policies and
• (6) Competition.

26. Motivating the Channel participants
• Build preference for your brand
• Add value to your product offer
• Increase sales through the channel
• Improve performance with structured programs

27. Controlling channel participant
• The three basic divisions of the marketing
channel are: producers and manufacturers,
intermediaries and final users.
• Producers and manufacturers and
intermediaries are further broken down into
wholesale and retail intermediaries and
consumer and industrial users.
• Final users are defined as target markets and are
excluded from further discussions of channel
members.

28. Managing Channel Conflicts
• Definition: The Channel Conflict arises
when the channel partners such as
manufacturer, wholesaler, distributor, retailer,
etc. compete against each other for the common
sale with the same brand.

29. • Vertical Channel Conflict: This type of conflict arises between the
different levels in the same channel.
E.g. The conflict between the manufacturer and the wholesaler
regarding price, quantity, marketing activities, etc.
• Horizontal Channel Conflict: This type of conflict arises between
the same level in the same channel.
E.g. The conflict between two retailers of the same manufacturer
faces disparity in terms of sales target, area coverage, promotional
schemes, etc.
• Multichannel Conflict: This type of conflict arises between the
different market channels participating in the common sale for the
same brand.
E.g. If a manufacturer uses two market channels, first is the official
website through which the products and services are sold. The second
channel is the traditional channel i.e. through wholesaler and retailer.
If the product is available at a much lower price on a website than is
available with the retailer, the multichannel conflict arises.

30. Physical Distribution System
• Physical distribution is concerned with the physical
movement of the goods from the producer to the
consumer.
• It is an important part of marketing activity and a
major component of marketing mix.
• It includes all those activities which help in efficient
movement of goods from producer to consumer,
such as transportation, warehousing, material
handling, inventory control, order processing,
market forecasting, packaging, plant and warehouse
location and customer service.

31. Importance of Physical Distribution
System
• Creating Time and Place Utility
• Helps in Reducing Distribution Cost
• Helps in Stabilization of Price
• Improved Consumer Services
• Components of Physical Distribution
• Order Processing
• Storage and Warehousing
• Inventory Control
• Material Handling
• Transportation