Retailing MBA Que Ans

7/31/2019 Retailing MBA Que Ans

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1. category management

2. Category management is a retailing concept in which the range of products sold by aretaileris broken down into discrete groups of similar or related products; these groups

are known as product categories (examples of grocery categories might be: tinned fish,

washing detergent, toothpastes). It is a systematic, disciplined approach to managing aproduct category as a strategic business unit.[1]

3. Each category is run as a "mini business" (business unit) in its own right, with its own setof turnover and/orprofitabilitytargets andstrategies. Introduction of CategoryManagement in a business tends to alter the relationship betweenretailerandsupplier:

instead of the traditional adversarial relationship, the relationship moves to one of

collaboration, with exchange of information, sharing of data and joint business building.4. The focus of all supplier negotiations is the effect on turnover of the category as whole,

not just the sales of individual products. Suppliers are expected, indeed in many cases

mandated, to only suggest new product introductions, a newplanogramor promotional

activity if it is expected to have a beneficial effect on the turnover or profit of the totalcategory and be beneficial to the shoppers of that category.[2]

5. The concept originated ingrocery(mass merchandising) retailing, and has sinceexpanded to other retail sectors such asDIY,cash and carry,pharmacy, and book

retailing

Category management lacks a single definition thus leading to some ambiguity even amongindustry professionals as to its exact function. Three comparative mainstream definitions are as

follows:

Category management is a process that involves managing product categories as business units

and customizing them [on a store by store basis] to satisfy customer needs. (Nielsen)[4]

The strategic management of product groups through trade partnerships which aims to maximize

sales and profit by satisfying consumer and shopper needs (Institute of Grocery Distribution)[5]

.. marketing strategy in which a full line of products (instead of the individual products or

brands) is managed as a strategic business unit (SBU). (Business Dictionary)[6]

The Nielsen definition, published in 1992, was a little ahead of its time in that customising

product offerings on a store by store basis is logistically difficult and is now not considered anecessary part of category management; it is a concept now referred to asmicromarketing.

Nevertheless, most grocery retailers will segment stores at least by size, and select product

assortments accordingly.Wal*Mart's Store of the Community, implemented in North America is

one of the few examples of where product offerings are tailored right down to the specific store

The category management 8-step process
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The industry standard model for category management is the 8-step process, or 8-step cycle

developed by the Partnering Group.[10]

The eight steps are shown in the diagram on the right;they are :

1. Define the category (i.e. what products are included/excluded).

2. Define the role of the category within the retailer.3. Assess the current performance.4. Set objectives and targets for the category.5. Devise an overall Strategy.6. Devise specific tactics.7. Implementation.8. The eighth step is one of review which takes us back to step 1.

OR

category management

Marketing strategyin which afullline ofproducts(instead of theindividualproducts orbrands)

is managed as astrategic business unit (SBU). It is basedontheconceptthat amarketing

manageris betterabletojudgeconsumerbuying patternsandmarkettrendsby focusing on the

entire product category.

2.. merchandising

Merchandising is the methods, practices, and operations used to promote and sustain certain

categories ofcommercialactivity.[1]In the broadest sense, merchandising is any practice which

contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising

refers to the variety of products available for sale and the display of those products in such a

way that it stimulates interest and entices customers to make a purchase.

Promotional merchandising

In retail commerce, visual display merchandising means maximizing merchandisesalesusing

product design, selection,packaging,pricing, and display that stimulates consumers to spend

more. This includes disciplines in pricing anddiscounting, physical presentation of products anddisplays, and the decisions about which products should be presented to which customers at

what time.This annual cycle of merchandising differs between countries and even within them,

particularly relating to cultural customs like holidays, and seasonal issues like climate and local

sporting and recreation. In the United States for example, the basic retail cycle begins in early

January with merchandise forValentine's Day, which is not until mid-February.Presidents' Day

sales are held shortly thereafter. Following this,Easteris the major holiday, while springtime
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clothing and garden-related merchandise is already arriving at stores, often as early as mid-

winter (toward the beginning of this section,St. Patrick's Daymerchandise, including green

items and products pertaining to Irish culture, is also promoted).Mothers DayandFathers Day

are next, withgraduationgifts (typically smallconsumer electronicslikedigital cameras) often

being marketed as "dads and grads" in June (though most college semesters end in May; the

grads portion usually refers to high school graduation, which ends one to two weeks after

Father's Day in many U.S. states). Summer merchandise is next, including patriotic-themed

products with the American flag, out byMemorial Dayin preparation forIndependence Day

(withFlag Dayin between). By July,back-to-schoolis on the shelves and autumn merchandise is

already arriving, and at somearts and craftsstores,Christmas decorations. (Often, aChristmas

in Julycelebration is held around this time.) The back-to-school market is promoted heavily in

August, a time when there are no holidays to promote. By September, particularly afterLabor

Day, the summer merchandise is on finalcloseoutandoverstockof school supplies is marked-

down some as well, andHalloween(and often even more of the Christmas) merchandise is

appearing. As the Halloween decorations and costumes dwindle in October, Christmas is already

being pushed on consumers, and by the day after Halloween retailers are going full-force with

advertising, even though the "official" season doesn't start untilthe day afterThanksgiving.

Christmas clearance sales now begin even before Christmas at most retailers, though they

usually begin onthe day after Christmasand continue on at least untilNew Year's Daybut

sometimes as far out as February.

Merchandising also varies withinretail chains, where stores in places likeBuffalomight carry

snowblowers, while stores inFloridaandsouthern Californiamight instead carry beach clothing

and barbecue grills all year. Coastal-area stores might carrywater skiingequipment, while ones

nearmountain rangeswould likely havesnow skiingandsnowboardinggear if there are ski

areas nearby.

3.(NATIONAL) local brands vs global brands

National brands must compete with local and private brands.National brands are produced by,widely distuted by, and carry the name of the manufacturer.

Local brands may appeal to those consumers who favor small, local producers over large

national or global producers, and may be willing to pay a premium to "buy local"

The private label producer can offer lower prices because they avoid the cost of

marketing and advertising to create and protect the brand. In North America, large

retailers such asLoblaws,WalgreenandWal-Martall offer private label products.

On the other hand, marketing and advertising may give consumers the impression that thenational brand is superior to a local- or private-branded product.
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Five reasons local brands have the home-field advantage

Few brands establish dominating positions in multiple countries. Moreover, we've observed that

brands that are distributed across multiple countries tend to have weaker overall relationships

with consumers than brands that stick close to home.

The chart above is based on an analysis of over 10,000 brands measured as part of BrandZ.The data suggests that brands that compete in more countries tend to have weaker "Bonding"

scores overall. For most brands, much of their strength and equity comes from their original

home markets. This should not be surprising because few of today's global brands were

originally designed to travel. Most of them originated long before the imperative to go globaltook hold. We can hypothesize that as a strong brand moves from its country of origin, it

struggles to effectively meet different consumer needs and desires in the new territory. No matter

how strong a brand might be on its home turf, it can be tough to win over local customers who

have grown up with their own beloved brands.

The Global Brand Survey findings suggest that local brands have the home-field advantage,provided they qualify as strong brands in their own right. The different ways in which a brand

can be perceived as part of the local culture include the following:

Meeting unique local needs or tastes

Nostalgiabeing a brand people grew up with

Local operational or logistical advantages

Strong community ties

Cultural identity

OR

Local vs. Global Brands: Who will win?

\

The question of whether local or global brands will ultimately prevail can be answered simply:

yes! A brand is merely the relationship that is created between a product and its consumer. The

company manages, and is responsible for, the consumers' total product experience. For its

efforts, if effective, the consumer responds with his or her patronage. This is a relationship thatrequires consistent company investment and care to remain responsive and profitable. While

global brands have some obvious scale and breadth advantages, local brands have the benefit of

proximity and geographical (and often product) focus. These two variables balance each other,

sustaining both local and global brands together.

In addition, consumers often look to different types of brands for different things. I'm not surethat I want consumer electronics from a neighborhood company. Sony and the like do me just

fine, thank-you. At the same time, I look exclusively to local brands to deliver such things as my


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hometown news and perishables (milk, eggs, etc.) for example. The strength of my attachment

can be equally powerful to both brands, as the opportunity for realtionship building is equallyavailable to each type of brand.

Consumers will continue to establish relationships with relevant brands that create meaningful

interaction with them without regard to geography. Both local and global brands will continue tothrive and to fill their respective consumer needs. Brand managers must be strategic about how

they manage the dynamics of the product - consumer relationship to best take advantage ofwhatever the particulars are of their circumstance.

OR

Global Branding Versus Local Marketing

Day by day, global branding is becoming a bigger challenge. Why? Because it's no longer

possible to isolate a brand and its reputation.

You might think you've created an excellent strategy for your brand in one local market, only to

realize that the rest of the world has access to that same local communication. This exposuredestroys any possibility of separating your local branding strategy from your global branding

strategy.

This unavoidable exposure of your local brand-building strategy in the international arena is part

of the growing difficulties that attend global brand building. Related to this complication are the

internal issues that arise. For example, how can corporations handle the local and global mix in

their marketing departments? Is every local marketing department now obsolete? Can local

marketing be taken over by a single department of centralized marketing functions?

Such issues are the result of the speed and spread of communications. The Internet has enabled

every consumer to access every piece of communication in the world. Good old concepts like

running test markets have been dramatically altered because of the increasing proximity amongmarkets. True separation among markets has disappeared.

WhenCoca-Colaselected Australia as the test market for the first non-Coca-Cola drink it hadlaunched in years, most of the world watched the experiment, and almost as many people

participated in the experiment from outside the test market. This might very well have been the

strategy's intention. However, if the objective was to test a new product in a local market, the

strategy clearly failed.

Global communication is more or less forcing brand builders around the world to adjust their

approaches. They're having to forego the strategy that provides local marketing teams with fullautonomy. So, how should we handle the brand challenge?

First of all, the local brand is not dead. But some of the activities that are used to promote it are

now obsolete. I would separate local brand-building activities from global brand-building
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activities on the promotional side, asMcDonald'shas done. Ronald McDonald is the key in-store

promotional figure. Very seldom do you see him on television commercials and, when you do,you see him publicizing in-store promotions.

Ronald, very cleverly, has become McDonald's point of differentiation in each market. He

celebrates Christmas in Northern Europe and the Chinese New Year in Hong Kong. He promotesMcDonald's wine in France and McDonald's Filet-o-Fish in Australia. But he never appears in

globally accessible media. McDonald's' global messages come through television commercials.The corporation produces local adaptations of these, too. But you can see McDonald's local

twists are substantially stronger in the in-store promotions than on television.

The purpose of global brand management is to conceive of and control a brand's global direction,

and this is done by defining and communicating the brand's core values. The execution of this

communication lies in devising and consistently applying a specific style, tone, and image.

The role of local brand management is to refine the communication of the brand's core values by

adjusting their execution to communicate meaningfully with each local market. If a local eventlike the Chinese New Year is taking place, it's the local brand-builder's task to ensure the brand

leveraging on it. Local brand building depends on an acute awareness of local trends; it's all

about leveraging knowledge that the international marketing department has no access to or

sympathy with.

The global marketing department is the strategic group. The local team is the tactical group. Both

need to work hand in hand.

OR

Global brand

Benefits of global branding

In addition to taking advantage of the outstanding growth opportunities, the following drives the

increasing interest in taking brands global:

Economies of scale (production and distribution)

Lower marketing costs

Laying the groundwork for future extensions worldwide

Maintaining consistent brand imagery

Quicker identification and integration of innovations (discovered worldwide) Preempting international competitors from entering domestic markets or locking you out

of other geographic markets

Increasing international media reach (especially with the explosion of the Internet) is an

enabler

Increases in international business and tourism are also enablers
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Global brand variables

The following elements may differ from country to country:

Corporate slogan

Products and services Product names

Product features

Positionings

Marketing mixes (including pricing, distribution, media and advertising execution)

These differences will depend upon:

Language differences

Different styles of communication

Other cultural differences

Differences in category and brand development Different consumption patterns

Different competitive sets and marketplace conditions

Different legal and regulatory environments

Different national approaches to marketing (media, pricing, distribution, etc.)

Local brand

A brand that is sold and marketed (distributed and promoted) in a relatively small and restricted

geographical area. A local brand is a brand that can be found in only one country or region. It

may be called a regional brand if the area encompasses more than one metropolitan market. Itmay also be a brand that is developed for a specific national market, however an interesting

thing about local brand is that the local branding is more often done by consumers than by the

producers. Examples of local brands in Sweden areStomatol, Mijerierna etc.

4. elements of service marketing mix

Service Marketing Mix/Extended

Marketing Mix

The service marketing mix comprises off the 7ps. These include:

Product

Price

Place

Promotion
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People

Process

Physical evidence.

OR

Service Marketing Mix

The service marketing mix is also known as an extended marketing mix and is an integral part of

a service blueprint design. The service marketing mix consists of 7 Ps as compared to the 4 Psof a product marketing mix. Simply said, the service marketing mix assumes the service as a

product itself. However it adds 3 more Ps which are required for optimum service delivery.

The product marketing mix consists of the 4 Ps which are Product, Pricing, Promotions and

Placement. These are discussed in my article on product marketing mix the 4 Ps.

The extended service marketing mix places 3 further Ps which include People, Process andPhysical evidence. All of these factors are necessary for optimum service delivery. Let us discuss

the same in further detail.

ProductThe product in service marketing mix is intangible in nature. Like physical products

such as a soap or a detergent, service products cannot be measured. Tourism industry or the

education industry can be an excellent example. At the same time service products are

heterogenous, perishable and cannot be owned. The service product thus has to be designed withcare. Generally service blue printing is done to define the service product. For example a

restaurant blue print will be prepared before establishing a restaurant business. This service blueprint defines exactly how the product (in this case the restaurant) is going to be.

Place - Place in case of services determine where is the service product going to be located. The

best place to open up a petrol pump is on the highway or in the city. A place where there isminimum traffic is a wrong location to start a petrol pump. Similarly a software company will be

better placed in a business hub with a lot of companies nearby rather than being placed in a town

or rural area.
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PromotionPromotions have become a critical factor in the service marketing mix. Services

are easy to be duplicated and hence it is generally the brand which sets a service apart from itscounterpart. You will find a lot of banks and telecom companies promoting themselves

rigorously. Why is that? It is because competition in this service sector is generally high and

promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves

above the rest by advertising or promotions.

PricingPricing in case of services is rather more difficult than in case of products. If you werea restaurant owner, you can price people only for the food you are serving. But then who will pay

for the nice ambience you have built up for your customers? Who will pay for the band you have

for music? Thus these elements have to be taken into consideration while costing. Generallyservice pricing involves taking into consideration labor, material cost and overhead costs. By

adding a profit mark up you get your final service pricing. You can also read about pricing

strategies.

Here on we start towards the extended service marketing mix.

PeoplePeople is one of the elements of service marketing mix. People define a service. If you

have an IT company, your software engineers define you. If you have a restaurant, your chef and

service staff defines you. If you are into banking, employees in your branch and their behavior

towards customers defines you. In case of service marketing, people can make or break anorganization. Thus many companies nowadays are involved into specially getting their staff

trained in interpersonal skills and customer service with a focus towards customer satisfaction. In

fact many companies have to undergo accreditation to show that their staff is better than the rest.Definitely a USP in case of services.

ProcessService process is the way in which a service is delivered to the end customer. Lets

take the example of two very good companies Mcdonalds and Fedex. Both the companiesthrive on their quick service and the reason they can do that is their confidence on their

processes. On top of it, the demand of these services is such that they have to deliver optimally

without a loss in quality. Thus the process of a service company in delivering its product is ofutmost importance. It is also a critical component in the service blueprint, wherein before

establishing the service, the company defines exactly what should be the process of the service

product reaching the end customer.

Physical EvidenceThe last element in the service marketing mix is a very important element.As said before, services are intangible in nature. However, to create a better customer experience

tangible elements are also delivered with the service. Take an example of a restaurant which has

only chairs and tables and good food, or a restaurant which has ambient lighting, nice music

along with good seating arrangement and this also serves good food. Which one will you prefer?

The one with the nice ambience. Thats physical evidence. Several times, physical evidence is

used as a differentiator in service marketing. Imagine a private hospital and a government

hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said

for a government hospital. Thus physical evidence acts as a differentiator.

This is the service marketing mix (7p) which is also known as the extended marketing mix.
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OR

What are the 8 P's of services marketing?

Whilst for some time there were considered to be 7Ps in the services marketing mix, which

included the traditional 4Ps plus Process, People and Physical evidence (the last 3Ps representthe systemic vision from the Marketing point of view), Services Marketing Academics and

Experts from the sector have recently added an 8th P (Lovelock and Wirtz, 2007, pp. 22-23).

Thus, the 8Ps of services marketing are defined as follows:

Product elements - the core and periphery service elements at the centre of the company's

marketing strategy;

Place and Time - delivering product elements to customers can be done physically and/or

electronically, depending upon the service. Speed and convenience are essential to the customer

and are important value-adds;

Price and Other User Outlays - pricing is only a part of what customers may part with when

purchasing a service; one must also consider time and convenience;

Promotion and Education - speaks for itself, but the marketer must make sure communications

not only provide information, but also persuade the customer of the service's relevance to the

customer's particular 'problem';

Process - the means by which the firm delivers product elements;

Physical Environment - the appearance of the place where the services are delivered may have

a significant impact upon whether the service was satisfactory;

People - front-line staff will have a direct impact on perceptions; and

Productivity and Quality - improving productivity is a requisite in cost management; but

quality, as defined by the customer, is essential for a service to differentiate itself from otherproviders.

5. Retail communication mix

The Retail communication mix

Communication is an integral part of the retailers marketing strategy. Primarily, communicationis used to inform the customers about the retailer, the merchandise and the services. It also serves

as a tool for building the store image. Retail communication has moved on from the time whenthe retailer alone communicated with the consumers. Today, consumers can communicate or

reach the organizations. Examples of this include toll free numbers, which retailers provide forcustomer complaints and queries. Another example is the section called Contact Us on the

websites of many companies.


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It is believed that every brand contact delivers an impression that can strengthen or weaken the

customer view of the company. The retailer can use various platforms / channels forcommunication. The most common tools are:

1) Advertising

2) Sales Promotion3) Public Relations

4) Personal Selling5) Direct Marketing

The tools are illustrated in Figure below

Retail Communication Mix >>

Sales promotion>> Advertising >> Direct marketing>> Personal Selling >> Public Relations

Let us now examine each of these tools in detail:

Advertising can be defined as any paid form of non-personal presentation and communicationthrough mass media. It is popularly believed that one of the main aims of advertising is to sell to

a wide mix of consumers and also to induce repeat purchases. However, a retailer may use

advertising to achieve any of the following objectives:

1) Creating awareness about a product or store

2) Communicate information in order to create a specific image in the customers mind in termsof the store merchandise price quality benefits etc.

3) Create a desire to want a product.

4) To communicate the stores policy on various issues.5) Help to identify the store with nationally advertised brands.6) Help in repositioning the store in the mind of the consumer.

7) To increase sales of specific categories or to generate short term cash flow by way of a sale,

bargain days, midnight madness etc.

8) Help reinforce the retailers corporate identity.

The retailers for advertising may use any one or a combination oft the following mediums:

1) Press advertisements

2) Posters and leaflets, brochures booklets

3) Point of purchase displays4) Advertising can also be done through mediums like radio, television, outdoor hoardings and

the internet.

Determining the Advertising / Promotional budget


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While there is no definite formula for determining the advertising or the overall promotion

budget the following are the main methods that may be employed to determine the advertising

budget.

The percentage of Sales method:

This is perhaps the most commonly used method for determining the budget. Here, the budget is

a fixed percentage of sales. The biggest advantage of this method is that it is simple to apply andit allows he retailer to set an affordable limit on promotional activity. This method however,

takes little consideration of the market conditions of any special advertising needs.

The Competitive Parity Method

Here the budget is based on the estimated amount spent by the competition. There is risk that it

could be based on wrong information and again there is little consideration for market conditions

or growth opportunities.

The research approach or the Task and objective Method

The budget is determines on the basis of a study of the best forms of advertising media and the

costs of each. The retailer formulates advertising goals and then defines the tasks necessary to

accomplish these goals. Next, the management determines the cost for each task and adds up the

total to arrive at the required budget. Here, he advertising expenses are linked to the retailersobjectives and the effectiveness of some forms of advertising can be measured and compared to

costs.

The incremental Method

The budget is simply based on the previous expenditure.

What can be afforded?

The budget allocated for advertising or for promotion is based on the basis of the money that canbe allocated by the retailer for this purpose.

While determining which method s to be adopted, a retailer needs to take into consideration themarket that the firm is operating in , its current market position and how important advertising is

in that market.

6. Retailers store layout

Basic Retail Store Layouts - Presentation Transcript

1. BASIC STORE FLOOR LAYOUT


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2. Straight Floor Plan The straight floor plan is an excellent store layout for most any typeof retail store. It makes use of the walls and fixtures to create small spaces within theretail store. The straight floor plan is one of the most economical store designs.

3. Diagonal Floor Plan The diagonal floor plan is a good store layout for self-service typesof retail stores. It offers excellent visibility for cashiers and customers. The diagonal floor

plan invites movement and traffic flow to the retail store.4. Angular Floor Plan The angular floor plan is best used for high-end specialty stores. Thecurves and angles of fixtures and walls makes for a more expensive store design.

However, the soft angles create better traffic flow throughout the retail store.5. Geometric Floor Plan The geometric floor plan is a suitable store design for clothing and

apparel shops. It uses racks and fixtures to create an interesting and out-of-the-ordinary

type of store design without a high cost.6. Mixed Floor Plan The mixed floor plan incorporates the straight, diagonal and angular

floor plans to create the most functional store design. The layout moves traffic towards

the walls and back of the store.

Which retail store layout is best for your business?

When setting up a retail store layout it is imperative to remember that the situation is much like it

is in Hollywood; namely, image is absolutely everything. Atmosphere and irresistible visual

merchandising displays are what attract customers. Thestore fixtures for your setting as well asspecial lighting techniques to accent products can make the all the difference between a purchase

and a pass-by (like a drive by, but without guns).

Like most worthwhile endeavors, planning the right retail store layout boils down to doing yourhomework. Take the time to view different floor plans and retail store designs. As a retailer, no

one can afford to turn off a customer, and a well-planned retail store layout allows a retailer to

maximize the sales for each foot of the allocated selling space within the store while at the sametime reducing the opportunity for theft. When planning your retail store layout, the amount of

selling space will be one of the most difficult and important factors to determine.

What are some of the different retail store layouts?

Retail store layouts generally indicate the size and location of each department, any permanent

structures, fixture locations and customer traffic patterns. Each floor plan and retail store layoutwill depend on the type of products sold, the building location and how much the business can

afford to put into the overall store design. Below are some floor plans to consider.

1-Straight Floor Plan

This is one of the most economical retail store layouts for almost any type of retail store. It deftly

utilizes the walls and store fixtures to create small spaces within the retail store. The straight

floor plan is one of the most economical store designs.
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2-Diagonal Floor Plan

This plan is best suited for self-service types of retail stores. It offers excellent visibility forcashiers and customers and encourages movement and traffic flow throughout the store.

3- Angular Floor Plan

This particular retail store layout works best in high-end specialty stores. The curves and anglesof store fixtures and walls are more costly, but worth it because the resulting soft angles create

better traffic flow.

4-Geometric Floor PlanThis is a suitable retail store layout for most clothing and apparel shops because it combines

display racks and fixtures to create an interesting and unusual type of store design that is not toocostly.

5- Mixed Floor Plan

This floor plan incorporates several elements of other plans; namely the straight, diagonal and

angular varieties to create a highly functional and unique store design. This retail store layout byits very nature propels traffic towards the walls and back of the store.

So whichever retail store layout you choose, pick wisely and focus on the particular needs of the

store when coming to a decision. Also, remember to always keep your business space clean and

orderly. All of these plans are effective in their own particular way, depending on the products

and/or services being offered for sale. Take your time in making up your mind as the success ofyour retail enterprise whatever it may be, depends on your selection.

7. visual merchandisingVisual merchandising is the activity of promoting the sale of goods, especially by their

presentation in retail outlets.(New Oxford Dictionary of English, 1999, Oxford University Press).

This includes combining products, environments, and spaces into a stimulating and engaging

display to encourage the sale of a product or service. It has become such an important element

in retailing that a team effort involving the senior management, architects, merchandising

managers, buyers, the visual merchandising director, industrial designers, and staff is needed

Purpose

Retail professionals display to make the shopping experience more comfortable, convenient and

customer friendly by:

Making it easier for the shopper to locate the desired category and merchandise.

Making it easier for the shopper to self-select.

Making it possible for the shopper to co-ordinate & accessorize.

Informing about the latest fashion trends by highlighting them at strategic locations.
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Merchandise presentation refers to most basic ways of presenting merchandise in an orderly,

understandable, easy to shop and find the product format. This easier format is especiallyimplemented infast fashionretailers.

VM helps in:

Educating the customers about the product/service in an effective and creative way.

Establishing a creative medium to present merchandise in 3D environment, thereby

enabling long lasting impact and recall value.

Setting the company apart in an exclusive position.

Establishing linkage between fashion, product design and marketing by keeping the

product in prime focus.

Combining the creative, technical and operational aspects of a product and the business.

Drawing the attention of the customer to enable him to take purchase decision within

shortest possible time, and thus augmenting the selling process.

OR

Visual Merchandising (VM) is the art of presentation, which puts the merchandise in

focus. It educates the customers, creates desire and finally augments the selling process.This is an area where the Indian textile and clothing industry, particularly, the SMEs lack

adequate knowledge and expertise. This inadequacy is best reflected in poor

presentation/display and communication in various national and international

exhibitions. Therefore this Programme has been conceived to fill this gap.

VM helps in:

educating the customers about the product/service in an effective and creative way. establishing a creative medium to present merchandise in 3D environment, thereby

enabling long lasting impact and recall value. setting the company apart in an exclusive position. establishing linkage between fashion, product design and marketing by keeping the

product in prime focus. combining the creative, technical and operational aspects of a product and the

business.

drawing the attention of the customer to enable him to take purchase decision withinshortest possible time, and thus augmenting the selling process.

STATUS OF VM IN INDIA:

Unlike the western countries, where VM receives highest priority in commercial planning of a

product, the Indian industrys understanding and practice of the concept of VM isinadequate. With phasing out of quantitative restrictions after the year 2004, the textile

industry will have to compete purely on the competitive edge of the products and VM will be
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a helpful tool in projecting the uniqueness of the products and thereby increasing the

market access and sales. It is high time that the Indian textile and clothing industry,

therefore, understands and adopts the scientific and professional system of VM rather thanthe traditional practices of display of products and communication.

7. The Four Levels of Customer Service

Customer satisfaction is the key to building the clientele of anybusiness. The more you satisfy

your customers, the more your business can grow. In Consistently greats Weblog, Brian Tracy

identifies four levels of customer satisfaction which are achieved by providing correspondinglevels of customer service.

1.Benefits of Good Customer Serviceo It's expensive to find new customers, so a business should invest in retaining its

existing ones. Furthermore, an angry customer tells many more people than does asatisfied one about an experience with a business. Higher levels of customer

service can translate to higher margins.

Level One: Meet Customer Expectations

o At level one, a business meets its customer's expectations. Customers are satisfiedbut are not loyal. They will quickly take their business elsewhere if a competitor

provides better service.

Level Two: Exceed Customer Expectationso At this level, a business surprises customers by going beyond their expectations.

This level can be achieved through a superior product or by showing more carefor the customer than is necessary. Customers at this level become more loyal and

may be willing to pay more.

Level Three: Delight Customers

o Service at this level can reach customers on an emotional level, making it difficult

for competitors to steal them. You reach level three by showing customers that

you care about them.

Level Four: Amaze Customers

o Expending the effort to amaze customers can propel your business to new heights.

By amazing them, you give customers a compelling reason to patronize your

business and recommend it to their friends.
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OR

Customer Service Level

Customer service level in a supply chain is a function of several different performance indices.

The first one is the order fill rate, which is the fraction of customer demands that are met fromstock. For this fraction of customer orders, there is no need to consider the supplier lead times

and the manufacturing lead times. The order fill rate could be with respect to a central

warehouse or a field warehouse or stock at any level in the system. Stockout rate is the

complement of fill rate and represents the fraction of orders lost due to a stockout. Another

measure is the backorder level, which is the number of orders waiting to be filled. To maximize

customer service level, one needs to maximize order fill rate, minimize stockout rate, and

minimize backorder levels. Another measure is the probability of on-time delivery, which is the

fraction of customer orders that are fulfilled on-time, i.e. within the agreed-upon due date.

10. RFID

Radio frequency identification (RFID) is a generic term that is used to describe a system that

transmits the identity (in the form of a unique serial number) of an object or person wirelessly,using radio waves. It's grouped under the broad category of automatic identification

technologies.

RFID is in use all around us. If you have ever chipped your pet with an ID tag, used EZPass

through a toll booth, or paid for gas using SpeedPass, you've used RFID. In addition, RFID isincreasingly used with biometric technologies for security.

Unlike ubiquitous UPC bar-code technology, RFID technology does not require contact or line

of sight for communication. RFID data can be read through the human body, clothing and non-

metallic materials.

Components

A basic RFID system consists of three components:

An antenna or coil A transceiver (with decoder)

A transponder (RF tag) electronically programmed with unique information


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Theantennaemits radio signals to activate thetagand to read and write data to it.

The reader emits radio waves in ranges of anywhere from one inch to 100 feet or more,depending upon its power output and theradio frequencyused. When anRFID tagpasses

through the electromagnetic zone, it detects the reader's activation signal.

The reader decodes the data encoded in the tag's integrated circuit (silicon chip) and the

data is passed to the host computer for processing.

The purpose of an RFID system is to enable data to be transmitted by a portable device, called a

tag, which is read by an RFID reader and processed according to the needs of a particular

application. The data transmitted by the tag may provide identification or location information,or specifics about the product tagged, such as price, color, date of purchase, etc. RFID

technology has been used by thousands of companies for a decade or more. . RFID quickly

gained attention because of its ability to track moving objects. As the technology is refined, morepervasive - and invasive - uses for RFID tags are in the works.

A typical RFID tag consists of a microchip attached to a radio antenna mounted on a substrate.The chip can store as much as 2 kilobytes of data.

To retrieve the data stored on an RFID tag, you need a reader. A typical reader is a device that

has one or more antennas that emit radio waves and receive signals back from the tag. The readerthen passes the information in digital form to a computer system.

Current and Potential Uses of RFID

Asset TrackingIt's no surprise that asset tracking is one of the most common uses of RFID. Companies can put

RFID tags on assets that are lost or stolen often, that are underutilized or that are just hard to

locate at the time they are needed. Just about every type of RFID system is used for assetmanagement. NYK Logistics, a third-party logistics provider based in Secaucus, N.J., needed to

track containers at its Long Beach, Calif., distribution center. It chose a real-time locating system

that uses active RFID beacons to locate container to within 10 feet.

ManufacturingRFID has been used in manufacturing plants for more than a decade. It's used to track parts and

work in process and to reduce defects, increase throughput and manage the production of

different versions of the same product.

Supply Chain ManagementRFID technology has been used in closed loop supply chains or to automate parts of the supplychain within a company's control for years.

As standards emerge, companies are increasingly turning to RFID to track shipments among
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supply chain partners.

RetailingRetailers such as Best Buy, Metro, Target, Tesco and Wal-Mart are in the forefront of RFID

adoption. These retailers are currently focused on improving supply chain efficiency and making

sure product is on the shelf when customers want to buy it.

Payment SystemsRFID is all the rage in the supply chain world, but the technology is also catching on as aconvenient payment mechanism. One of the most popular uses of RFID today is to pay for road

tolls without stopping. These active systems have caught on in many countries, and quick service

restaurants are experimenting with using the same active RFID tags to pay for meals at drive-through windows.

Security and Access ControlRFID has long been used as an electronic key to control who has access to office buildings or

areas within office buildings. The first access control systems used low-frequency RFID tags.Recently, vendors have introduced 13.56 MHz systems that offer longer read range. The

advantage of RFID is it is convenient (an employee can hold up a badge to unlock a door, ratherthan looking for a key or swiping a magnetic stripe card) and because there is no contact between

the card and reader, there is less wear and tear, and therefore less maintenance.

As RFID technology evolves and becomes less expensive and more robust, it's likely thatcompanies and RFID vendors will develop many new applications to solve common and unique

business problems.

OR

RFID

(pronounced as separate letters) Short for radio frequency identification, a technology similar intheory tobar codeidentification. With RFID, the electromagnetic or electrostatic coupling in the

RFportion of the electromagnetic spectrum is used to transmit signals. An RFID system consists

of an antenna and atransceiver, which read the radio frequency and transfer the information to aprocessingdevice, and atransponder, or tag, which is anintegrated circuitcontaining the RF

circuitry and information to be transmitted.

RFID systems can be used just about anywhere, from clothing tags to missiles to pet tags to food-- anywhere that a unique identification system is needed. The tag can carry information as

simple as a pet owners name and address or the cleaning instruction on a sweater to as complex

as instructions on how to assemble a car. Some auto manufacturers use RFID systems to movecars through an assembly line. At each successive stage of production, the RFID tag tells the

computers what the next step of automated assembly is.
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One of the key differences between RFID and bar code technology is RFID eliminates the need

for line-of-sight reading that bar coding depends on. Also, RFID scanning can be done at greaterdistances than bar code scanning. High frequency RFID systems (850 MHz to 950 MHz and 2.4

GHz to 2.5 GHz) offer transmission ranges of more than 90 feet, although wavelengths in the 2.4

GHz range are absorbed by water (the human body) and therefore has limitations.

RFID is also called dedicated short range communication (DSRC).

11. Role of technology in changing face of retailing

Technology is changing the face of retail this holiday.

Everyone has heard that e-commerce is the ultimate winner of this year's holiday shopping season.Record sales and visitors were registered online. Following on the biggest online Black Friday sales ever,online sales on Cyber Monday topped $1 billion, up 16 percent from last year, according to comScore.Meanwhile, brick-and-mortar Black Friday sales grew only 0.3%, according toShopperTrak, a firm thatcounts store visits.

These numbers reflect technology as a driver of changing consumer behavior. Social media and mobiletechnology are also examples of game changers that are playing a key role this holiday shopping season.

This holiday, unlike in years past, consumers are putting the new technologies to use in assisting themwith their holiday shopping and to get the most of their holiday budgets. These shoppers don't just visit astore and make a purchase on the spot. They're behaving differently this time around. They:

Listen to and converse with their peers and favorite brands onFacebook,Twitterand other socialmedia platforms.

Visit a retailer's Web site at home, at work and on the run via mobile devices. Connect with their favourite brands through multiple channels such as a store visits, desktop

computers, iPhone apps, iPad, 1-800 numbers and more. Check in with peers and friends throughFacebookorFoursquare. Involve their friends and communities in the shopping process through sites like ShopSocially,

Polyvoreand others. Use smart phones to compare prices, locate a store, get great deals or just learn more about a

product.

Browse and purchase with a mobile phone and iPad. Visit a store to check out the product first-hand, then purchase online.

By 2013, according to Mary Meeker ofMorgan Stanleyas cited byInternet Retailer, more consumers willaccess the Internet by mobile devices than by desktop or laptop computers. Social networks and mobilecommerce along with other technologies will be game-changers in the retail business. The sheerspeed of the change will be unprecedented. Just as we are optimizing the Web site, along comes theiPhone app, Facebook, iPad app. What next?

It is mission-critical that retailers understand how each technology plays a role in the lives of today'sconsumers. Whether it is mobile bar code scanning to enable customers to obtain additional productinformation during store visits or making your latest runway show available for viewing on iPad or theiPhone, retailers must keep up with the change. As Jack Welch exhorted us, "Face reality as it is, not as itwas or as you wish it to be."
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So ... which fashion retailers do you think are doing the best job adopting the new technologies to deliveron their brand promises to customers? How are they making it work? Let's us hear your thoughts in ourcomments section.

OR

well the techonology of retail has made us more reliant and more productive. whith the modnadvancements of our time we have become computers and can no longer function without one.

in the olden days the technology was little but the retail was still good because it was a famaly

owned bisnes that was in a town that all the citzens went to.

The role of technology in society, retail give the look of evolution. Retailing reveals thattechnology gets more sophisticated and the consumer's expectations will go up exponentially. It

change faster, retail can keep up the convergence of a few key technologies is enabling that

change gives us the best preview of what can happen in the next five to eight years.

12. What is a Franchise?

What is a franchise? A franchise is a right granted to an individual or group to market acompany's goods or services within a certain territory or location. Some examples of today's

popular franchises are McDonald's, Subway, Domino's Pizza, and the UPS Store.

There are many different types of franchises. Many people associate only fast food businesses

with franchising. In fact, there are over 120 different types of franchise businesses availabletoday, including automotive, cleaning & maintenance, health & fitness, financial services, and

pet-related franchises, just to name a few.

How Franchising Works

If you are thinking about buying into a franchise system, it is important that you understand exactly how

franchising works, what fees are involved, and what is expected of you from the franchise company.

An individual who purchases and runs a franchise is called a "franchisee." The franchiseepurchases a franchise from the "franchisor." The franchisee must follow certain rules andguidelines already established by the franchisor, and in most cases the franchisee must pay an

ongoing franchise royalty fee, as well as an up-front, one-time franchise fee to the franchisor.

Franchising has become one of the most popular ways of doing business in today's marketplace.In most states you cannot drive three blocks without seeing a nationally recognized franchise

company.
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The History of Franchising

Franchising began back in the 1850's when Isaac Singer invented the sewing machine. In order to

distribute his machines outside of his geographical area, and also provide training to customers, Singer

began selling licenses to entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a

small chain of food franchises and built it into today's most successful fast food franchise in the world,

now known as McDonald's. McDonald's currently has the most franchise units worldwide of any

franchise system.

Today, franchising is helping thousands of individuals be their own boss and own and operatetheir own business. Franchising allows entrepreneurs to be in business for themselves, but not bythemselves. There is usually a much higher likelihood of success when an individual opens a

franchise as opposed to a mom and pop business, since a proven business formula is in place.

The products, services, and business operations have already been established.

Advantages of Buying a Franchise

There are many advantages to buying a franchise. Some of these advantages are:

Corporate image - The corporate image and brand awareness of the company is already

established. Consumers are always more comfortable purchasing items from a familiar name or

company they trust.

Training - The franchisor usually provides extensive training and support to the franchise owner.

Savings in time - Since the franchise company already has the business model in place you can

focus on running a successful business.

There is a reason why franchising has been around for decades. It is a great way for individuals to own

and operate their own business. If you are thinking about buying a franchise, do your homework,

research the company, and you should consult with a franchise consultant or franchise attorney before

making a final commitment.

There are four types of such business:

1. The Product Franchise.

With this the manufacturer uses the franchise agreement to determine how the product is

distributed by the person buying the franchise. A retail company can be provided with a

franchise to distribute, for example, a range of tyres. The franchisee can utilize the brand name

and the trademark owned by the manufacturer to distribute or sell the car tyres. The owner of thestore will pay the manufacturer a franchising fee or agree to purchase a minimum inventory to

sell on to their customers. The manufacturer gets the income from the purchase of the retailer,

and/or the franchise fee, and the retailer gets the benefit of the brand and experience of thefranchisor.

2. The Manufacturing Franchise.


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The franchisee is permitted to manufacture the products under license and sell them using the

originator's trademark and name. They also get the benefit of the national advertising of theproduct they manufacture. The company owning the product gets the franchise fee and

sometimes a fee for every unit sold. Examples include the food and beverage industry.

3. The Business Franchise Venture.

The franchisee purchases and distributes the products for the franchise owner. A client base isprovided by the product owner for the franchisee to maintain. Vending machines are a classic

example of this, where the franchisee purchases the vending machines and distributes and

services them, taking their share of the takings of the machines.

4. A Business Format Franchise

This opportunity is very popular, and involves providing the franchisee a proven business model

using a recognized product and brand. Training is provided by the franchise owner and

assistance in setting up the business. Supplies are purchased from the franchisor and thefranchisee pays a royalty fee. Frequently the franchisor will sell the franchisee the products or

raw materials to provide the same quality of product. Most well known fast food franchises are

of this type, and also many jewelers and other ubiquitous High Street names.

Franchising is a very popular way that many use to grow their already successful businesses, and

a few end up going global. You need to get the right product and the right business in the rightarea, but if you achieve that and build the right model, then you can create a very successful

franchise opportunity.

Types of Franchises

In recent years, the number of franchises has greatly increased due to modern technology and astronger than ever attitude of business entrepreneurship.

This means that there are now many kinds of franchise business opportunities to choose from. While

many of them do require a brick and mortar building, many of them also can be run from your home.

You have many possibilities, and this enables you to start looking along the line of your interests.

Your interests should play a large part in your choice because you will be working at gettingyour franchise business established for many hours a day. It will most likely be much more thana 40-hour week.

Here is an overview of the many types of franchises that are available:

Automotive Franchises - General shops; specialty shops - transmissions, muffler, tires, detailing,

rentals, etc.


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Beauty Franchises - Tanning, nail salons, hair salons, weight loss, cosmetics, etc.

Business Opportunities - franchise opportunities

Business Services - Medical billing, paralegal services, payroll, taxes, business management,

consulting, pre-employment screening, and much more.

Children Related - Tutoring, fitness, photography, games, and more.

Cleaning and Maintenance - Commercial and home cleaning, carpet, rental, air duct and HVAC

systems, etc.

Computer and Internet - Technical services, computer games

Education Franchises - Business coaching, tutoring for children, science programs, and more.

Financial Services - Credit repair, financing, tax preparation, and more.

Food & Drink Franchises - Pizza shops, juice bars, coffee shops, restaurants, fast food, and more.

Health & Fitness - Nutrition, diet centers, fitness classes, senior fitness, drug testing, tanning

centers, and more. See also fitness jobs on JobMonkey.

Home Related - Handyman, furniture repair, lawn care, security, remodeling, insulation, roofing,

painting, pest control, etc.

Miscellaneous - Vending, laundry and dry cleaning, transportation, wedding and event planning,

etc.

Pet Services - Pet food, pet supplies, pet care, and more. Photo and Video - Children's photography, team photography, trophies, DVD rental kiosks, video

stores, etc.

Printing and Packing - Shipping, imprinting, and copies.

Retail Franchises - Party stores, apparel, convenience stores, electronics stores, hardware, eye

care stores, pharmacies, sports stores, telecommunications, and much more.

Senior Services - Assisted living, senior care, walk-in medical clinics, and more.

Sports and Recreation - Sportswear, nutrition, fitness centers, children's fitness, massage and

spas, campgrounds, etc.

Travel Franchises - Cruise planning, hotel reservations, transportation, etc. Don't overlook cruise

jobs material on JobMonkey.

14.franchisability

In business, a relationship between a manufacturer and a retailer in which the manufacturer provides

the product, sales techniques, and other kinds of managerial assistance, and the retailer promises to

market the manufacturer's product rather than that of competitors. For example, most automobile

dealerships are franchises. The vast majority of fast food chains are also run on the franchise principle,

with the retailer paying to use the brand name.

OR

a right or license that is granted to an individual or group to market a company's goods or services in a

particular territory under the company's trademark, trade name, or service mark and that often involves

the use of rules and procedures designed by the company and services (as advertising) and facilities

provided by the company in return for fees, royalties, or other compensation; also: a business granted

such a right or licensefranchise>
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15. franchise feasibility study

Franchise feasibility study is conducted to determine the degree to which a company can become a

successful franchisor.

OR

It is astounding that "Lip Service" is often paid by a prospective new franchisor to the concept of

conducting real and effective due diligence both into the concept of 'franchiseability" of an existing

business and the related question as to whether THIS business should be franchised - although the

concept itself may pass the "franchiseability" test.

The decision to franchise a business should be an objective one based on a wide range of factors which

should be subject to what is known as a Franchise Feasibility Study"

A whole range of issues should be examined including the availability of a wide range of resources,

management considerations and so on.

The problem lies with the inter-action of 2 parties with a vested interest in getting into franchising. An

all too ready businessperson (the future franchisor) who is predisposed to franchising as an expansion

alternative and often will not listen to any negative findings and the franchise consultant whose living

depends on setting up and selling franchises. In my experience both of these interests often override

sound commercial and strategic advice.

These 2 forces either means that the true deep franchise feasibility is not done at all or adverse findings

are ignored or misunderstood - or even worse - the parties convince themselves that the negative

matters are easily correctible once the franchise system is operational.

There is the mistaken belief that has been endlessly perpetuated that "any" business can be franchised.

This is not true in practice. And her I am assuming that this is said to apply to a business that is already

commercially successful in its core business activities. Sadly - many unprofitable businesses have

proceeded to franchising. This may have been due to the belief that somehow when the business is

franchised that it will magically be able to be profitable - and in other cases the business has been

franchised with full knowledge that the businesses core activity will not be profitable - no matter what

model is adopted. It is difficult to give any credibility to the argument that I have heard surprisingly

often that franchising will in fact allow a business to be successful because of management and hands

on control issues - the numbers will not work - because the franchise fees will, offset any operational

improvement.

The simple fact is that many people proceed to franchising when they should not - and often with

disastrous consequences. Perhaps it is time that there be legal sanctions when people have clearly been

proven to have recklessly offered franchise business. This would be a sanction in addition to others built

in to either common law or specific franchise legislation where this exists. It is also time to consider the

role of advisors in carrying out any duty of care that they may have and this naturally leads to the

question of making sure that franchise consultants and advisors are regulated in some way to place a

duty of care on them in advising business to precede to franchising. I am not in favour of over regulation

but feel that the culpability of franchise consultants and advisor who are so often underqualified or not

qualified at all - and give positive advice to franchisors (and in some cases franchisees) with reckless


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disregard for the consequences and seemingly with legal impunity.

I repeat my view that it is only technically correct to say that that any profitable business can be

franchised. By the way - on this argument any business (whether profitable or not) can be franchised.

Whatever the merits of this argument - it is academic - because the key point here is that ANY

businesses must first pass a rigorous process of seeing whether the move to franchising stands up to

diligence and passes the "feasibility test"

If it is objectively found not to be feasible - then that is the end of the matter - and the feasibility study

may have identified alternative expansion options available. And these should then be subject to their

own feasibility studies.

The second and equally important question is that even if the business model is franchiseable- it doesn't

follow that that the business under consideration - THIS business "should be franchised".

19.. What's the relationship between enterprise culture and franchising?

Franchising is a systems of sales and distribution in which a manufacturer of service provider,called franchiser, enters into agreement with independent businesses, called franchisee, allowingthem to use or copy the franchiser, trade name, patent, goodwill, product or business format.

The use of the franchiser business format is the main factor defining the relationship betweencultures of the franchiser and the franchisee. The franchiser, in a franchising arrangement

provides value to the franchise arrangement by providing a well developed and proven business

format. The franchiser not only lets the franchisee use such formats, but also insists that the

franchisee use it. Further it provides assistance in implementing and maintaining such businessformats. In this way the franchiser influences the culture of the franchisee business operation to a

substantial degree.

20. retail planning steps

1.Choose a Business Legal Structure

Choosing the proper legal organizational structure for your business is one of the most important

decisions you will make. While it is possible to change your structure at a later date, it can be a

difficult and expensive process. Therefore it's better to make the right decision before you start

your own business.

3.Apply for an EIN

An Employer Identification Number (EIN) is also known as a Federal Tax IdentificationNumber, and is used to identify a business entity. Here's why you need one and how to apply

online for an EIN before you start your own business.

4.Decide What Products to Sell
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