Retail Management Course: Introduction to Detailing (Session 2)

Lecturer:

Dr. Pradeep Salgankar - Founder Director of Sal Dots Academy, Professional Facilitator, and Corporate Coach

Key Topics Covered:

1. Definition and Concept of Retailing
2. Retail Transactions vs. Business Transactions
3. Retailing Formats
4. Indian Retailing Scenario
5. Functions of a Retailer
6. Retail Management
7. Components of Retail Management

Definition and Concept of Retailing

• Retail: Derived from French word 'retailer' - means to cut a piece or break a bulk.
• Historical Context: Retailers bought goods in bulk from manufacturers and sold in smaller quantities to consumers.
• Definition: Sale of goods/services in small units to ultimate customers for personal or family consumption.
• Retail Transaction: For personal/family/household use. If resold for profit, it is a business transaction.
• Quote by Philip Kotler: Retailing involves selling goods and services to the final consumer, not for business purposes.

Retail Transactions vs. Business Transactions

• Example: Mr. Ramesh buys sugar in bulk and resells - transaction with hypermarket is a business transaction, but with neighbors is a retail transaction.
• Key Point: To be retail, consumption must be by the end user without reselling.

Retailing Formats

1. Traditional Formats: Mom and Pop stores, Kirana stores
2. Modern Formats: Departmental stores, Hypermarkets, Supermarkets, Malls
3. Emerging Formats: Online retail

• High Competition: Retailing is a high-intensity competition industry due to increased number of retailers and similar products.

Indian Retailing Scenario

• Three Categories:
  1. Organized Retail (8-10%)
  2. Unorganized Retail (90-92%)
  3. Online Retail
• Dominance: Unorganized retail dominates with weekly bazaars, Kirana stores, and roadside vendors.

Functions of a Retailer

1. Connecting Manufacturer/Wholesaler to Consumer: Ensures convenient availability of products.
2. Functions:
   • Buying and Assembling Goods
   • Sorting and Breaking Bulk
   • Warehousing and Storing
   • Selling to Consumers
   • Maximizing Customer Satisfaction
   • Channel of Communication and Advertising
   • Providing Credit Facilities
   • Prepayment of Merchandise
   • Inventory Management
   • Information and Feedback to Companies

Retail Management

• Definition: Processes enabling customers to procure desired merchandise conveniently.
• Purpose: Ensures customers get desired products without difficulty and leave with satisfaction.

Components of Retail Management

1. Merchandise Mix: Deciding what products to stock and sell.
2. Store Layout: Ensuring customer-friendly layout for ease of navigation and product accessibility.
3. Inventory Management: Balancing between too much and too little inventory to prevent losses and stockouts.
4. Store Management: Involves display strategies, cleanliness, accessibility, and overall customer experience.
5. Customer Management: Focus on customer convenience, facilities, and services.
6. Store Promotion: Building and promoting the store's brand for customer attraction and retention.
7. Branding of the Store: Creating a strong store image and reputation.
8. Sustainability and Growth: Ensuring continuous business and planning for expansion and increased profitability.

Conclusion

• Session Summary: The session covered the key concepts of retailing, distinctions between retail and business transactions, various formats of retailing, the structure of the Indian retail market, detailed functions of a retailer, and essential components of retail management.
• Next Session: Continuation of in-depth exploration of retail management.