Page 111 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes quantities of information associated with store audits. Yet, while audit software has been available
for several years and offers a viable solution for the store audit process, some retail organizations
are not ready to implement and manage it. Other priorities, such as new regulatory processes,
annual audit projects and limited man-hours, are keeping internal audit, loss prevention or
store operations functions from venturing into the electronic store audit world.

7.1.1 Retail Audit

Retail audit is a tool that opens up new option for strategic move in the market. It helps every
marketer to find an optimum brand/product portfolio for target segment with finest
communication vehicle and the flexible interiors for high product accessibility.

Notes In order to perform a retail audit the marketer should keep the following views in
mind.

1. Psychographics of consumer: to draft retail value chain.
2. Brand Portfolio: to fill retail value chain draft with brands and products.
3. Retail Format: to fill the retail value chain draft with resources.
4. Service blue prints: to connect the resources and brand/products in a retail value
chain.
Psychographic of Consumers: The value chain blue prints of retail must be designed with
consumer psychographic in mind.

The following things must be kept in mind while designing the value chain blue prints.
1. Life style of your consumers
2. Time they plan for shopping
3. Key driver for shopping (passing time, Money)
4. Vehicle they use usually to travel
5. Their disposable income
6. Brand, Price or Value consciousness (BPV Analysis)

The psychographic of consumers helps to draft the value chain blue print for a retail business.
Moving further will serve the purpose to check what brands/product mix we have to fill the
draft of value chain.

Brand Portfolio: It defines the brand/product span with which we have to click the consumers.
Every retail product line must have a combination of products for serving the two basic strategic
purposes:
1. Penetration builders
2. Profit builders
Most of brand/product retail portfolio is based on proliferation but if you see the effects in the
long term it will cause product placement insufficiency. The symptoms can be concluded by the
increasing footfall but stagnation of conversion rate.

!

Caution You must ensure that the products are placed at the right placed inside your shop.

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