Page 39 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes The services provided by retailer to wholesaler are as follows:
1. He gives valuable market information with regard to taste, fashion and demand for the
goods to the wholesaler.

2. The retailer maintains direct contact with the customers and so he relieves the wholesaler
with regard to maintenance of direct contact.
3. He helps the wholesaler in getting their goods distributed to the consumer.

4. He is regarded as an important link between the wholesaler and the consumer.
5. He creates demand for the products by displaying the goods to the consumers.
A retail business endeavors to create a compelling concept against competitors. For the
characteristics of the vision to be effective, the concept must create an emotional bond with
customers. For a customer to see the value of the characteristics of the business’ appeal, he looks
at what the business gives him, not what the business put in.

Clear Vision

To connect to a core customer group, one of the characteristics a retail company must have is a
clear vision. What the company is offering, who their target market is and the value of the
product or service to the customer must be clear. For example, North American car rental
company Enterprise Rent-A-Car focused on customers who need a car during repairs as its
target market rather than the standard airport focused car rental. That focus helped Enterprise
dominate a market and increase market share.

Value

A retail business that sells products or services that appeal to customers’ needs has the ability to
stand up against competition. Physical facilities, pricing, products and customer service
differentiate a busy retail store from an unnoticed one. If the characteristics appeal to a consumer,
in her mind, the business represents value. When a retailer makes the value of its business
obvious, it prevents service levels from dropping.

Functional

Price, convenience and store experience are functional characteristics that make up a strong
retail brand. These functional characteristics are common to almost all retail stores. A brand
may use its store experience to create an emotional bond by matching its brand’s characteristics
with consumers’ values. The emotional connection could trigger sales. Combining functional
characteristics of store experience with price and convenience, a retailer strives to have returning
customers.
Concept

A retail business aims to conceive an idea and deliver consistency, profitability and integrity
from concept to execution. Ikea, an international furniture company, for example, developed a
unique presentation and customer assembly system difficult to copy. The unique concept created
a barrier to competitors. In order to be able to execute on its ideas, a company must have
adequate resources and capital.

Did u know? More than 95% of the Indian retail sector falls in the organised category.
Organised retail is expected to grow from 5-6 to 4-18% by 2015.

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