Retail Management Course: Introduction to Detailing (Session 2)

Jul 8, 2024

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.