Sales and Distribution Management

            

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Chapter Code: SDMC25
Textbook:
Pages : 514; Paperback;
210 X 275 mm approx.

Suggested Case Studies

Workbook:
Pages : 352; Paperback;
210 X 275 mm approx.

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Managerial Effectiveness: Managing the Self and Others



Retailing : Overview

Retailing consists of all activities that involve selling goods or services to the final consumer for personal consumption. Retailing is an emerging sector in India and has a lot of potential. Retailing plays an important role in national development. It is a source of employment to many people. Retailing also acts as a means for distribution of essential commodities to people in far- flung areas in under- developed nations. Another important role of retailing is that it acts as a means to provide a range of products to satisfy the ever-changing demands of consumers.

The retail environment has evolved over the years. Many major developments have led to the development of various retail formats. These include the Industrial revolution, intense competition, innovation through technological development and the concepts of regression and assimilation.

Retailers can be classified according to the kind of products and services they sell and the different strategies they adopt. They can also be classified based on extent of ownership, type of store strategy, type of goods and services provided, non-store based retailers and non-traditional retailing.

Based on the extent of ownership, retailers are classified as independent retailers, chain stores, franchise retailers, leased department and consumer cooperatives. Based on the type of store strategy, retailers are primarily divided into food retailers and general merchandise retailers. Food retailers include convenience stores, conventional supermarkets, superstores, warehouses, combination and limited-line stores. General merchandisers include specialty stores, department stores, full-line discount stores, variety stores, off-price chains, membership clubs, thrift stores and "flea" markets.

In non-store retailing, traditional retail stores are not used to sell products. Non-store retailers use direct marketing (catalogue marketing and direct mail), direct selling (person-to-person selling, party plans, multi-level marketing) and automatic vending machines to sell products to consumers. Non-traditional retailers use new channels such as the Internet, video kiosks, and video catalogues to promote and sell products. Another type of classification divides retailers into goods-based and services-based retailers depending upon whether they sell merchandise or services to consumers.

Retailers must address certain strategic issues to succeed in the highly competitive retail sector. Store location, store image, store size, promotional aspects and private store branding can be the cause of success or failure.

Over the years, the retail industry has witnessed many trends linked to environmental changes. These include competitive, consumer, technological and economic trends. These in turn have led to other retail trends like micro-marketing, global retailing, ethnic retailing, retail diversification and the emergence of new retail formats. The future of retailing holds a lot of promise for the Indian economy. The Indian retail market is estimated at Rs 8,00,000 crores by 2005. Over the past decade, some retailers have successfully established their operations in India. Market observers predict that the Indian market can easily handle retailers worth $ 1 billion. Due to the enormous costs involved in developing the necessary infrastructure and logistics, the extent of future growth, especially the organized sector, which is only 2 percent of the total industry, depends on the measures and support offered by the government.

Chapter 25 : Overview


Retailing and its Importance
Importance to Consumers
Source of Employment

Evolution of Retailing
Wheel of Retailing
Industrial Revolution
Competition and Trade-up
Regression and Assimilation
Innovation

Classification of Retailers
Classification Based on Type of Ownership
Store-based Retailers
Non-store Based Retailing
Non-Traditional Retailing

Service Vs Goods Retail Strategy Mix

Strategic Issues in Retailing
Store Location
Retail Store Image
Store Sze
Promotion
Role and Impact of Private Brands on Power of Retailers

Trends in Retailing

Future of Retailing
Global Retailing
Retailing in India