Retailing

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EXCELLENCE IN RETAILING

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What’s Retailing All About?

• It’s about reaching out to consumers first hand!!

– Through Formats that differentiate offerings to suit customer needs to fulfill them every time

– Through formats that (one or a combination) provide true shopping value

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What’s Retailing All About?

• It’s about efficiently providing a vehicle

for mediation with the customers.

– With the right merchandise at the right

place in the right quantities at the right price

at the right time.

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Evolution of Retailing in India

• Emergence of Channels of Distribution

• Retailing & its Evolution

– From Shanties (temporary sheds) to Professional Retailing

– Agrarianism to Industrialization to Mature Markets to Global Competitiveness

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From Evolution to Revolution

• It’s not just the evolution of retailing in India.

• It’s a revolution.– To get the customer’s heart-share and

not even the mind-share.

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Retail Formats

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Formats of Physical Store Retailing

• Formats by Size

• Departmental Stores / Super Markets

• Bazaar or Discount Formats

• Specialty Formats

• Category Killer Formats

Large Formats

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Formats of Physical Store Retailing

• Stop Over Formats

• Kiosks & Dispensing Formats

Small Formats

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Conglomerates

• Malls

• Hyper Markets

• Plazas

• Bulk Marts

• Warehouse Formats

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Characteristics of Retail Formats

• Store Image

• Location

• Service Type

• Merchandising Mix

• Presentation

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Key Attributes in Customer Satisfaction

• Merchandise Assortment / Selection

• Merchandise Quality

• Pricing

• Locational Convenience

• Customer Service

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The Retail Environment (Macro)

• The Composition of Retail Environment

• Factors Governing & Influencing Retail

Environment

– Political Factors (WTO)

– Economic Factors (FDI)

• Retailing & its Industry Status in India

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The Retail Environment Model (Micro)

Staff Space

Stock

Customer

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• Customer focused not Real Estate

focused

• Facilities & Concessionaries

• Differentiate to Niche Retailing

• Concept Retailing

Current Retail Trends

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• Store Image, Type and Density

• Store Space Planning

• Store Circulation

Store OperationsStore Planning

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60%

15%

25% Selling

Circulation

Back Areas

Area Mix

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• Free Flow

• Grid

• Race Track

• Herringbone

• Spine

The Circulation Plan – The “Silent Guide”

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• Store Location

Strategy

High Street

Destination

Mall Partners

• Determinants of Store LocationAccessibilitySurroundings &

catchment profileAvailability Facilities

Store Location

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Functions of Store Operations

Planning

Organizing

Co-ordinating

Implementing

Controlling

Role of Store Operations

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• Licenses & Permissions

• Legal Compliance

• Routine Administration

Administrative Process

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• Sales Planning

• Personal Selling

Cross Selling

Upselling

• Sales Reports

Sales Process

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• Cashiering System Sequence

• Customer Check Out Strategy

• Cashier’s Role

Cashiering Process

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• Customer Service Vision & Strategy

• Customer Service Standards Determination

• Benchmarking

• MOT & Expectation Analysis

Customer Service Process

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• Staffing & Scheduling

• Grooming

• Floor Meeting

• Training

• Performance Management

• Personal Development

HR & Welfare Process

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• House Keeping

• Security

• Maintenance

Facilities & Concessions Management Process

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• Key Successful

Parameters

Space Oriented

Stock Oriented

Staff Oriented

Customer Oriented

• Parameters Analysis, Conclusions, Decisions & Actions

(What Should Be Those For In & Out?)

Store Operating Parameters

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• Customer Segmentation

• Range Structure

• Merchandise Hierarchy & Merchandise Planning

Buying & MerchandisingCreating the Merchandising & Buying

Vision

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• What is Buying & Merchandising

• Significance of Buying & Merchandising

• Sourcing & Vendor Management

• Trends & Forecasting Techniques

Principles of Buying & Merchandising

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• Category Vision

• Category Definition

• Category Scorecard

• Category Review

• Category Functions

Category Management

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• Merchandise & Assortment Planning

• Micro-merchandising

• Line Presentation

• Replenishment Planning

Designing Merchandising Working Practices

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• OTB

• Mark Down Planning

• Planogram (Sample sheet integrating

base stock, fixture mapping, etc.)

Designing Merchandising Working Practices

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• Existing Measures of Performance

Store wise Performance (Stocks,

Space, Sales)

Partner Performance & Assessment

Dealer

Alliance Partner

Determining Key Performance Indicators (KPIs)

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• Connect’s Ownership

• Business Manager

Business Estimates and Achievement

• Operations Manager

Category / Processes Ownership

• Trainer

RCC’s Role

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• Contribution of Technology to Retail Process

Speed, Accuracy

Data in required form for decision making

Customer satisfaction through Technology

The Role of Technology in Retailing

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• Business Needs to Drive Technology Requirements, not otherwise

• Deploy Instore Technologies for Customer Convenience

Customer – Technology Adopters

• Deploy Technology for Speed, Accuracy & Total Customer Satisfaction

Retail Technology Implementation Factors

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• Review Technology Performance

• Innovate & Deploy New Technologies to

Stay Ahead of Competition

• Technology Scalability

Retail Technology Implementation Factors (contd..)

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SERVICE MANAGEMENT

RETAIL STORES

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DISCIPLINE OF MARKET LEADERS

• Product Leadership

• Operational Excellence

• Customer Intimacy

Service Quality --- Why?

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• Intangibility

• Inseparability

• Heterogeneity

• Perishability

• Ownership

Characteristics of Service

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• Services are things a company does / offers its customers

• Service is how well a company does / offers what it does / offers to its customers

Service Vs. Services

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• Product

• Price

• Promotion

• Place

• People in Services

• Physical Evidence in Services

• Process in Services

Services Marketing Mix Beyond The Four P’s

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The Service Triangle

People Service Strategy

Systems

Customer

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• Putting people

behind products and

services

• Treating customers

with respect,

individuality and

personal attention

What is Customer Service?

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• The Customer is the Business’s Biggest Asset

• The Customer pays all salaries, wages and

dividends

• The Customer will go where s/he receives the

best attention

• You must be your customer’s best choice ! !

Obsession With Customer

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• Not necessarily those who pay but all those whom we serve

Who Is Our Customer?

• Paying Customer

• Colleagues

• Wife

• Parents

• Neighbors

• Boss

• Subordinates

• Children

• Relatives

• Environment

• Fellow Human Beings

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The Spirit of Service

Is an attitude based on certain values & beliefs about people, life and

work, that leads a person to willingly serve others and take pride in

his or her work.

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• People’s Skills

• Product

• Presentation

• Process

4 P’s Which Shape Customer’s Decision to Buy

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• Dependability (Did the service provider do what

was promised?)

• Responsiveness (Was the service provided in a

timely manner?)

• Authority (Did the service provider elicit a

feeling of confidence in the customer during the

service delivery process?)

Five Universal Dimensions of Service Process Quality

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• Empathy (Was the service provider able to take the

customer’s point of view?)

• Tangible Evidence (Was evidence left that the

service was indeed performed?)

Five Universal Dimensions of Service Process Quality

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• Friendliness

• Understanding

• Fairness

• Control

• Options & Alternatives

• Information

Six Basic Customer Needs

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Bad Service v/s Good Service

My ExpectationsMy Treatment

My Treatment

Is less thanWhen

When exceeds

My Expectations This

=

Good Service

This

=

Bad Service

GOOD SERVICE IS GIVING CUSTOMERS A LITTLE MORE THAN WHAT THEY EXPECT

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• The best service companies have a passion for service excellence!!

• Providers of service excellence do it with energy and enthusiasm

• Excellent service is a win-win experience!!

• In today’s competitive market place the customer decides who wins and who loses

Excellent Service = Enjoying Giving People Little More Than They Expect

Excellent Service

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Define the Customer’s “Moments of Truth”

Moments of Magic Moments of Misery

Moments of Truth

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The Customer is Respected

And Understood

And treated Genuinely

The foundations are laid for Quality Service

When what is communicated at Moments of Truth is that:

Moments of Truth & Service Quality

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Perceived Value =Services X Service-----------------------

Price

Expectations & Perceived Value

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IMPORTANCE OF COMPLAINTSGives us another chance of improve our service

Doing the job right the first

time

Effective Complaint Handling

+ =

Increased Customer

Satisfaction & Brand Loyalty

Handling Customer Complaints

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Do not return anger for anger

Avoid fuelling the anger

Keep control of the situation

Be quiet and listen

Do not make excuses

Managing Yourself

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Recognize the customer’s feelings

Probe

Solve problem

Soothe problem

Apologise whenever required

Managing Yourself

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• Attention

• Interest

• Desire

• Conviction

• Action

Stage of Selling

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• Pre-approach

• Approach

• Identifying wants & needs

• Presenting the Product or Service

Steps of Sale

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• Answering questions and objections

• Suggestion Selling

• Closing the Sale

• Post Sale Services

Steps of Sale

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• Zone of Recommendation

• Zone of Normality

• Zone of Tolerance

• Zone of Rejection

Four Zones of Customer Influence

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• When you are serving a customer, you are on stage, so…..

• Are your dressed for the part?

• Do you know your lines?

• Do you understand the play?

You Are On Stage