Pdf of retailing
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The document discusses trends in the retail industry between now and 2015. It notes that demographic shifts will create greater dichotomies that will be challenging for retailers to address. Specifically, the population will become more polarized along dimensions like age, with most growth among older generations over 55 and younger generations. Retailers will need to tailor their offerings more to specific customer segments rather than aiming for mass appeal. Technology and data analytics will also become more important for demand forecasting and personalized customer experiences. Overall, the retail industry is facing significant changes in the coming years from changing consumer preferences and new competitive pressures.
Pdf of retailing
- 1. Assignment Of Retail Marketing IMM-105(III)-E Submitted to - Submitted By Dr. Priyanka Mam Mayank Mishra 013-III-318 OmPrakash 013-III-225
- 2. Introduction to Retailing Retailing 2015 confirms thatthe retail industry is becoming more complex and changing at an ever-increasing speed. Shifting demographics, household downsizing, moreeducated consumers, new channelformats—among other trends—requirethat the industry quickly adjustand modify existent models, approaches and processes to satisfy the needs of futurecustomers in order to be successfuland profitable. Retailing will become an industry that realizes, more and more, that it must tailor its offerings to select customers, as opposed to the mass appeal approach of the 1980s, in order to win over customers and foster greater customer loyalty. Retailer: - Anintermediary involved in selling goods and services to ultimate consumers (examples). Wholesaler: - An intermediary that takes title to the goods it handles and redistributes them to retailers, other distributors, and sometimes end consumers. Employs 15 million people in the U.S. and Accounts for $4.5 trillion to the U.S. economy Retail Outlets: Retailing, at one time, might have been all about “location, location, location,” but the 2015 retail industry willbe significantly different from that of today. The U.S. shakeoutin conventional malls will continue with a throwback to neighborhood shopping centers catering to very specific tastes. Shopping will become moreexperiential; eating, being entertained and “living” the shopping experience will take on prominence. The global marketwill grow rapidly in our flat world, with markets such as China and India granting access to the world’s bestretailers. By 2015, theretail landscapeby country will be dramatically different fromtoday. We envision a knowledgerevolution in global
- 3. markets wherethe successful retailers will be transferring their best retail practices from one territory to another. Strategic Outsourcing: Adapting to the changing retail environment anticipated by 2015 will require more flexibility than ever by industry players. While the outsourcing of basic goods is projected to grow in the global economy, companies also are adopting approaches for the outsourcing of non-core competencies—e.g., new productdevelopment, softwaredevelopment, business process outsourcing and talent sourcing across nationalboundaries. Cost efficiencies aren’t the only benefits of pursuing strategic outsourcing— management’s attention is focused on key business issues, time-to-marketmay be collapsed, new alliances may be formed, and an understanding of the inner workings of developing and emerging market cultures may be learned. Webelieve that leading retail companies will be embracing this approach as we move toward 2015. STRATEGIC IMPLICATIONS: RETAIL MARKETING STRATEGY: A retailer develops a marketing strategy based on the firm’s goals and strategic plans. Two fundamentalsteps: 1. Picking a target market: sizeand profitpotential. POSITION. 2. Developing a retailing mix to satisfy the chosen target market 1. 4Ps + Personnel& Presentation used to create a retail image Targeted Collaboration:In order to reduce the many obstacles that naturally occur between retailers and suppliers, and to overcomea lack of partnership between the two, the retail industry is moving toward creating greater beneficial value through targeted collaboration. To achieve better alignment of goals and drivegreater efficiency, retailers and suppliers are becoming trading partners, sharing details and processes on such things as productlaunches, trade promotions, inventory management and supply chain operations. As collaborative strategic efforts havebeen proven to deliver joint
- 4. value, we believe this trend will continue and increasein importanceduring the next severalyears. The Importance of Technology: Technology is greatly contributing to improved operational efficiency for retailers, but the importanceof technology to future business success will become greater. There is, and will be, an overwhelming need to effectively manage the business through business intelligence. Demand-based managementcan succeed only with real-time data information delivered through increasingly newer forms of technology delivery systems. As a result, retailing will become more personal, and customer data and relationships will become a key asset for retailers. Between now and 2015 will be a time of transition for retailing. Long-termcycles are coming to a close. New market forces are becoming more prevalent. As these trajectories convergebetween now and 2015, they will change the retail business environment—and the ways wedo business—forever:· The Baby Boom—which has dominated retail thinking for decades—will stand on the precipice of age 70—and will startturning over the keys to younger generations. · Interconnectivity will be a part of life—and also a way of life. Itwill impact the way people get and shareinformation, communicate, transactbusiness, even the way they socialize. · Many existing retail concepts will reach the end of their expansion runway. · Spending on services will grow at the expense of spending on goods. · The prevailing belief that bigger is better will break down—aggregation of small will be the new big. Leading companies will combine global scale with excellence at local execution. · Global scope has been an option. In 2015, itwill be a requirement to support large-scalegrowth and sound business economics. · Consolidation of retailing into a global oligopoly will continue, as major players seek expansion in emerging markets experiencing rapid growth of the middle class and rapid modernization of retailing.
- 5. “Point of purchase” will be the battlefield for consumer dollars—replacing the confines of “shelf space” and “selling floor”. · Technology will be pervasive—driven by falling costs, widespread access and adoption, a working infrastructureand increased standardization. 1. Demographic Dichotomies The period between now and 2015 willbe one of demographic dichotomies. Many demographic dichotomies already are under way, but the gaps between shopper segments will widen during the next decade. It will be much more difficult for retailers to bridgethese gaps in 2015. To find growth, retailers will need to look at the poles. There will be no safemiddle ground. Different ends of the shopper spectrumwill requiredifferent products, shopping environments and brand strategies. Even if customers at opposite poles want to buy the same things, retailers will not be able to sell to them in the same way, in the same place or with the same message. Demographic dichotomies will dominate several scales: · Older vs. Younger—Society will hourglass rapidly along the age spectrum, with all of the growth between now and 2015 happening in the older generations or the younger generations (Figures 1 and 2).Reflecting the path of the Baby Boom bulge, the most rapidly growing age segment in the United States will be 55+. By 2015, leading-edgeBaby Boomers will be staring age 70 head on; trailing-edge Boomers will be looking at 50 in the rearview mirror. If 50 was thenew 30, will 70 be the new 50? Do not expect Baby Boomers to go conventionally into maturity. Expect them to redefine older age and retirement, remaining active and involved. Growth in Spending on Services Spending on goods will continue to lose ground to spending on services Older generations are becoming more service, “do it for me”, and experience oriented. Younger generations are more likely to approach goods, services and experiences as an integrated continuum. To satisfy customer needs, retailers will need to incorporateservices and experiences into their concepts.
- 6. The RetailingMix: Target Market :- 1. Product 2. Place 3. Promotion 4. Price 5. Presentation 6. Personnel Choosing the MerchandisingMix : The mix of products offered to the consumer by the retailer; also called the productassortment OR merchandise mix. Merchandising (Product) Strategy : Category management: Retailing strategy which views each product category asan individual profitcenter. Slotting Allowances: lump-sum paymentsby manufacturersfor stocking new products. Scrambled Merchandising: Combiningdissimilar productlinesto boost sales volume. Growth of Storebrands– Battle for shelf space