Experience

My experience in class and lesson with Madam Ami

Assalammualaikum i like to thank to Allah for give me change to take this subject which is Retail management.Also to my parents that want to see their daughter can score in Degree life.not to forget to my madam Pn Ami Suhana that teach all of us in retail management and give some tips and advice to us not TO REPEAT THIS PAPER  because of that I remind to myself do not have a repeat paper for degree!!! lastly to my teammate/group assignment and others thank you because letting me know you all in this subject because in next maybe we meet or maybe not thank you for all the information and memories that we build together.From this lesson I learn so much about the location ,retailers,customer service and more. From all lesson in the class i will remember when madam ami ask me to draw layout in the Starbucks at rnr ..at that time I really blushing but its the fun time when have the lesson in class that i should remember. Thank you Madam for everything .

customer service

Chapter 11

Customer service

Customer service is the act of taking care of the customer's needs by providing and delivering professional, helpful, high quality service and assistance before, during, and after the customer's requirements are met.

High quality service when employee meet the expectation customer.

Three basic task of retailing

must be focus on :

1. Merchandise management
2. building and fixture management
3. Promotion management
4. Price management
5. credit management

Various customer type : which has 6 type :

• Defensive
• Interrupter
• Decisive
• Indesive
• sociable
• impulsive

for the salespeople its also must be train to be a great salesperson to sell the product:

• Data requirement - details product must know from a-z
• working hour - don't have fix working hour ,weekend also work if have a appoinment with client
• must be punctual 
• smart to tackles customer expectations.

store layout and design

Chapter 10

Store layout and design

From this chapter have 2 objective of the store environment

1. Store image(how much we spend to get customer into the store)
2. Space productivity(how longer we can make customer spend to our store and show them and make the demonstration to them)

Element of store environment

1. visual communication (Retail identify,graphics)
2. Store planning (space allocation,layout)
3. store design ( exterior design,lighting)- where customer easy to                                                               remember ex: lovely                                                                     lace with the smell 
4. Merchandising ( Fixtures selection,merchandise presentation                              (visual merchandising like in IKEA they                                        organize one side for display ))

Layout

( Free flow Layout)

ex: Brands Outlet

( The Grid Layout)

Ex: Miniso

( The spine layout)

ex: H&M

( The Loop Layout)

Ex: IKEA

retail pricing

Chapter 9

Retail Pricing

Price elasticity demand can change quantities customer will buy.

Elastic : Small percentage change in price to substantial quantities                 unit bought.

inelastic: large percentage change in price lead to small percentage                  will change quantities unit bought.

Markup pricing calculation

Markup % = Retail selling price - merchandise cost

                                             at Retail                    Retail selling price

                                                    or

                            Markup % = Planned retail operating expenses + planned profit

                                            at retail                       Planned net sales

Specific pricing decision

1. how long prices maintained?
2. odd price being use? odd price ( 199 shop)
3. should customer get discount from purchased?

retail organizational and HRM

Chapter 8

Retail organizational and HRM

From this chapter we need to focus on 1) Target market needs 

                                                           2) Employee needs

                                                           3) Management needs

1) Target market Needs

•   Personnel knowledgeable and courteous ?
• Facilities well maintained?
• changing needs promptly addressed?

2) Employee needs

• position challenging and satisfied enough?
• Good performance ?
• channel communication clear and open?

3) Management needs

• employee motivated?
• each worker have their own supervisor?
• Organization plan well integrated?

(Process of organizing a retail firm)

( Organizational that use for small business)

(Mazur Organizational for department store)

(equal store organizational format use by chain store)

(Organizational plan of Kroger)

HRM 

1. Recruiting
2. Selecting
3. Training
4. Compensating
5. Supervising

site location

Chapter 6 

Site Location

This chapter only discuss step 2-4 only which is

Step 2 :Determine what type of location is desirable

Step 3 : Select the general location.

Step 4 : Evaluate alternative specific store sites.

from my study there is 3 type of location :

1. Isolated store
2. Planned shopping center
3. Unplanned business district(Kuala Lumpur)

Isolated store 

• no direct competition
• low rental cost
• easy parking
• ex: kenanga mall

Planned shopping center

• one stop shopping family

'

Unplanned business district

center of city

retailer location

Chapter 5

Retailer location

1) shopping center: Traditional & power center

     

    Traditional: Children place

    Power center : at the mall , sport authority, Toys R-Us

• shopping malls

       - all in one : one stop shopping mall

         Disadvantage 

         - Aging

         - demographic

2) city or town locations

3) Free standing sites

4) other retailers opportunities

• Airports
• Resorts
• Hospital

Type of leases

Percentage lease - lease based on % of sales

 3 clauses:

1. Prohibited use clauses

       limit the landlords from leasing to certain tenants

   2.  Exclusive use clauses

   3. Escape use clauses.

Also have a rule that must tenants follow :

• zoning and building code
• sign
• licensing requirements- alcoholic beverages

retail marketing strategy

Chapter 4

Retail Marketing Strategy

Long term strategic : New competitors

                                : New formats

                                : New Technologies

                                : Shifts in customers needs

Main point to focus 

• Target market
• Retail Format
• Sustainable competitive advantage

Target market

specific target market which is woman in 33-40 y/o only.

Sustainable competitive advantage

• Customer loyalty
• location
• HRM
• Unique merchandise
• Vendor relation
• Customer service

3 approaches that sustainable competitive advantage

1. Build strong relationship with customer

• Customer loyalty-how long the customer use our product
• Brand image-all people or customer know what symbols of the company like Mcdonald ( M)
• Unique merchandise-their own brand product like IKEA (their bottle ),JayaJusco(scarlet)
• Unique positioning-
• CRM-typically focused on reward based on how much their purchased.
• Customer service-attitude and behavior staff towards customer because most of customer want a                                   good and extra service and effect whether they want to buy or not.

     2. Build relationship with suppliers

•  HRM
• Distribution and information system.

     HRM

     -making strategy for retaining the employees

     - making organizational 

    

     Distribution and information system

     - location:

     - Growth strategies-->market penetration

                                  --> market expansion 

                                  --> Diversification 

                                  --> Retail format Development 

   3. International market entry strategy

       Stage strategic retail planning process

1. Define the business mission
2. Conduct a situation audit:(Market attractiveness strategy,competitor analysis,self-analysis)
3. Identify strategic opportunities
4. Evaluate strategic alternatives
5. Established specific objective and allocate resources
6. Develop a retail mix to implement strategy
7. Evaluate performance and make adjustment      

        

promotional strategy

Chapter 10

Promotional Strategy

From this chapter i can learn about :

PROMOTIONAL MIX include :

1. Advertising
2. Public Relation
3. Personal Selling
4. Sale promotion

Ex:

ADVERTISING

Advertising means communication with the user of product or services.Advertisement are message paid by those who send them and are intended to inform or influence people who received them.Advertising is always present through people may not be aware of it and uses every possible media to get its message  through it via TV,print,newspaper,magazine radio,press,internet and direct selling

Advertising also have advantage and disadvantages

Advantages

• low cost for print
• Attract more customer
• many alternative available

Disadvantages

• some advertising need a large investment
• advertising through media has a limitation to put details.
• lack of quality advertising

PUBLIC RELATION

It is the opposite of advertising.Advertising we must pay but in Public relation the article that features our company is not paid for it.

Objective : To improve company image

                : increase awareness of the retailers.

Advantages vs disadvantages

Advantages 

• low cost
• image can be presented or enhanced
• more credible source

Disadvantages

• do not have much attention from customer
• suite for short run

PERSONAL SELLING

 Personal selling occurs where an individual salesperson sells a product ,service or solution to a client,salesperson match the benefits of their offering to the specific needs of a client.

Objective : to persuade customer to buy our product

                : Fulfill customer need

                : give full details product to customer

Advantages vs Disadvantages

Advantages

• customer can understand about the product
• many ways to meet customer
• on the spot
• fast feedback

Disadvantages

• only can meet a few customer in one day
• High cost to meet customer
• negative feedback or responds towards salespeople

SALES PROMOTION

The process of persuading a potential customer to buy the product.

Sales promotion is designed to be used as a short term tactics to boost sales it is rarely 
suitable as a method of building long term customer loyalty.
Some sales promotions are aimed at customer and others are targeted at intermediaries.

Types:

1. Coupons
2. Sample
3. Prizes
4. Displays

Objective : Maintaining customer loyalty

                 : Increasing short term cost

Ex:

Advantages vs disadvantages

Advantages

• attract customer
• customer value
• eye contact from customer

Disadvantages

• Difficult to terminate
• only for short term use
• limited time only to purchase

retail institution by store based strategy mix

Chapter 3 

Retail institution by store-based strategy mix

Strategy mix--> particular combination of :

• store location  
• operating procedures
• Good or services offer
• Pricing tactics
• Store atmosphere
• Customer service
• Promotional methods

Ex: IKEA

Retail strategy divide by two which is low end strategy and high end strategy

Low end strategy which is low rental location,no provide service,self-service no staff do the demonstration                                             ,crowded store interior,and most merchandise visible.

High end strategy which is high rental location,provide service ex: wrapping gift,delivery,provide                                                             demonstration to customer.

Scramble merchandising are where one stop shopping like Al-ikhsan where there is glove,shoes,t-shirt                                                      sport and more that related with sports.

Retail institution will through out the LIFE CYCLE which include introduction,growth,maturity and decline

From the graph above i can know the best part for retail is convenience store,supermarket because the price ,location,service and product that they are offer customer can accept and buy.Even the price is too expensive customer willing to buy because the quality of the product,service that they provide like in IKEA they provide delivery and wrapping a glass.

Types of retailers

Chapter 2 : 

TYPE OF RETAILERS

Retailers characteristic

• Variety ( Breadth of Merchandise)

      - Merchandise categories

         

(DRESS)

(DIAMOND RING)

(MOTORCYCLE)

• Assortment (Depth of Merchandise)

      - Type of merchandise (same categories different design)

        

• Service offered - every company provide a different service

                                                   Ex: EMS offer assistance selecting appropriate kayak and maintenance but

                                                         wal.mart did't provide the service.

• Price and the cost offering breadth and depth of merchandise and service.

       - the retailer must have backup stock for each SKU in addition to holding the inventory.

TYPE OF RETAILERS 

FOOD RETAILERS                               GENERAL MERCHANDISE RETAILERS

1) Mom and pop stores                           1) Department store

2) Convenience store                               2) Specialist stores

3) Supercenter store                               3) Category specialist

4)Supermarket store                                4) Off-price retailers

                                                               5) Warehouse club

                                                               6) Value retailers

SUPER MARKET:

 Limited Assortment Supermarket vs Conventional Supermarket

Limited Assortment Supermarket

• 2000 SKU
• only 1/2 brands 
• design to maximized efficiency and reduce cost
• offer lower cost than conventional supermarket.
• Ex:  GIANT

Conventional Supermarket

• 30,000 SKU
• provide more brands
• Expensive than Assortment supermarket
• provide a better in-store 
• target more customers

SUPERCENTERS

• One stop shopping center where everything can find in one mall.
• a lot of brands and shop
• combine with supermarket that discount line.
• easy for customers to shopping.
• a huge mall 
• Ex: JayaJusco

CONVENIENCE STORE

• Fast,casual restaurant
• Opening smaller store closer to customer
• Ex: Famous Amos in Airport KLIA

GMR : Department  store

• more discount- when the department store have sale ,they will get more customer but when no sale no                         customer.
• competition on price, service that provide.
• focus more to apparel and home deco.
• add more private label and exclusive brands.

GMR: Discount store retailing (issue)

• when there is discount or sale,problem with size and color
• Ex: only small size left,only blue and green color left
• Competition from category specialty
• Ex: Toys-R-Us,Al-ikhsan

GMR : Specialty store retailing

• only sells the same categories
• expensive cost
• less stock
• less customers

GMR : Off-price store

• offer low cost
• provide a lot of brand name in one store
• Ex: Kenanga mall.GM KLANG

GMR : Service retailing

• firm selling primarily service rather than merchandise are a large and growing part of the retail industry
• ex: Anytime Fitness provide Personal Trainer:

               = young people like to take care their health and go to gym

OWNERSHIP

• Franchises 
• Ex: Baskin Robin , Ayam penyet, A&W
• single,independent..
• build another shop but same name brand.

World Retailling

CHAPTER 1:

 INTRODUCTION TO THE WORLD RETAILING

Retailing? -->Business activities that adds value to the products and                       services sold to consumers.

Retailer?  --> Business that sells products or services to consumers.
                       Ex: www.Amazon.com

DISTRIBUTION CHANNEL

Supply chain?--> Firms that make and deliver a given set of goods                               and services to the ultimate consumer.

Vertical integration?--> Firm performs more than one set of activities in the channel

                                    Ex: Retailer invest in wholeslling and manufacturing

backward integration?--> Retailer performs some distribution and manufacturing activities

                                        Ex: Jaya Jusco sells Scarlet jeans.

forward integration ?--> Manufacturers undertake retailing activities

                                     Ex: Channel (operate its own store)

Retailers add value --> Product assortment

                              --> Break Bulk

                              --> Hold Inventory

                              --> Offer Services

Job Opportunities in Mnagement = Fincance,Accounting,HRM

Job Opportunities in Entrepreneurs = Start new business with their own brands.

                                                        Ex: Ingvar Kamprad (IKEA)

Retail Management decision Process

DOING  THE RIGHT THING vs DOING THINGS RIGHT 

Decision make through -->Long term

                                   --> Made infrequently 

                                   --> Location,Organization design and system.

Retail strategy before start the business 

• Identifying competition
• Identifying Customer --> Demographic and Life style

                                          --> Target Customer

                            

RETAIL MANAGEMENT

(EDB10103)

(MADAM AMI SUHANA BINTI ABDUL MENON)