Retailing Principles Essay

Introduction

Retiling principles

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Retailers use retail format techniques for selling their products. Retailing patterns are of two types: store format and non store format. Nowadays, non store format of retailing is being preferred by the consumers. The consumers want online retailing, direct selling, TV shopping and vending. The process of e-retailing helps the consumers in getting the products more conveniently. E-retailing concept in grocery chain helps the marketers in overcoming the geographical barriers and improving the access to the consumers residing in remote areas (Kotler, 2002). By utilizing the technology, the consumers gain an advantage of shopping from home and get the required products at the doorstep. The consumers can access necessary information regarding different brands of products available in the retail stores easily and efficiently.

These days, retailers are expanding the retail business all over the world and getting access to more and more consumers globally. The basic requirements of retail stores are well planned store location, design and layout. While deciding the location for a retail store of grocery chain, the management has to consider various factors such as size of the target market, employment level and stability, understanding of the geographical region, trade area, income distribution and competition level. The site design should be appropriate for store format and easily accessible to the consumers. The store layout should be decided according to the complete knowledge of the products in which the store is dealing. The products should be arranged in such a way that they are easily identifiable and comparable by the customers.

For retailing to be successful, the retailers have to plan for effective retail management. It is required to synchronize all the parts of the marketing strategy together to make an effective marketing plan. So, it is necessary to build an internally uniform and supportive structure for the company to achieve the objectives of the organization. One of the biggest challenges in front of a retailing company is to effectively manage its store operations. For the effective management of retail stores, the management has to control the following factors: employee management, proper ordering, receiving and storing of products, display of products, administrative roles, effective customer service, and grievance resolution with evaluation of store performance (Patrick, 1999).

The main aim of retailers is to find out the needs and expectations of the customers and make their plans according to the customer service levels. The customer service level is the most important instrument for the retailers because it contributes to the value of retail operations and the retailing business. For effectively managing the customer service level, the management has to consider the following factors: listening to the customers carefully for knowing their requirement, designing appropriate services with customization, delivery of the services with caution, and assuring best performance of the products, which meets with the promises laid down to the customers (Fernie, Fernie, & Moore, 2003). Grocery stores sell perishable items such as food, milk and some non food items.

Nowadays, these grocery stores are becoming very popular as they are providing all types of food items under one roof. This grocery chain is popular for implementing all the specific principles of retailing to achieve its goal in an effective way.  It is very difficult for any manufacturer to market and sell its products to the customers directly. To overcome this problem, retailing is used. As retailing stands on the last stage of the distribution process, it is easy to reach and fulfill the demands of the customers. The benefit of these stores is that customers can buy all types of grocery items at one place and they need not to move many places for their needs. These stores help the producers also to sell their product in a clean and climate controlled environment (Grocery Stores, 2008).

Description of Concrete Experience

Purpose of retailing as a function of marketing distribution process

As a manager in the grocery chain, the experience in terms of retailing as a function was good as it assisted in fulfilling the task of marketing distribution process. It is the grocery, which deals in perishable products such as milk made products, vegetables and fruits. The main aim of this grocery chain is to distribute all the products of organization. It serves as an important tool for the purpose of marketing distribution. Grocery chain fulfils its function by implementing the strategy of effective customer service.

Store location and non-store accessibility

The store of grocery is located in the accessible area of the city in order to save the time of transportation for its employees and key customers. This arrangement is good as it is the chain of perishable products that have a short period of shelf life. It also covers all the aspects which are necessary for the customer service. The non-store accessibility of grocery chain is aimed at the easiness for its customers as well as for its employees, as it includes the concepts of direct marketing, direct selling and e-tailing.

Principles of merchandising

Principles of merchandising include all the strategies in terms of planning, structure, negotiation, marketing and risk management for the grocery chain. The main aim of grocery chain is to achieve competitive advantage by responding to the changing demands of its customers. Strategic planning of grocery chain is to understand all the core disciplines of marketing. Strategic negotiation of grocery chain is focused on the development and implementation of strategy in an effective way. Strategic risk management includes strategy to manage operational and financial risk. Sales force management of grocery chain includes strategy for the recruitment, selection and motivation of sales person in an effective way. It also includes project management, which concentrates on the different areas of project life cycle.

Service marketing is also an effective part of grocery chain as it focuses on the service by implementing the concepts of marketing such as advertising, sales promotion and personal selling in an effective way. Departmental display and eye level display are the important part of this grocery chain as they attract customer’s attention towards the store. Apart from this, the concept of vertical merchandising and group products display is also used in this grocery chain (Sand, 1995).

Store organization and human resource decision making

 Store organization of grocery chain is managed in a planned way, as it comprises a set pattern of hierarchy, which is needed for effective functioning. There are different departments in the grocery chain such as upper, middle and lower level. Each department has a different manager for fulfilling its obligations with regard to the organizations goal. There is an active participation of human resources in decision making as they are an important part of the grocery chain. Decisions such as product designing, packaging, display & quality control and related factors, which have importance in developing proper strategy for the product, are taken by human resources of the store organization.

Inventory turnover and control

Inventory turnover of grocery chain is controlled by the manager of that grocery chain as it is the important part of supply chain management. This grocery chain uses different techniques for inventory turnover such as just in time approach, enhance customer response and other related areas. Delivery of products from supplier to the store is controlled by the branch manger of that grocery chain. As it is the grocery chain of perishable products, which doesn’t have much life span, the responsibility of controlling the inventory and checking is performed by the manager.

Current trends in retailing and e-tailing management

 In the recent years, many changes have taken place in the field of retailing as well as in e-tailing at a huge level. In retailing sector, the development of suburban stores and super corner stores is growing at large level, especially in major grocery chains. Free standing and open air centers are also showing their wide acceptance among the key customers as they prefer convenient place for shopping, which is provided by these grocery chains. In e-tailing, the use of the internet is on an increasing level in the recent years, as it assists the customer in saving his valuable time. Consumers gain an advantage of shopping from home and get the required products at the doorstep and it also assists the employees of store to accomplish the task in an effective way by utilizing the technology.

Reflections

Purpose of retailing as a function of marketing distribution process

On the basis of above experience on retailing function in grocery chain of perishable products, it is concluded that this works on the marketing concepts for the distribution of products. This grocery chain performs the functions by assigning the responsibility to every person in the store according to their efficiency and job profile. As it deals in perishable products, the maximum focus of the management is on the proper display of these products. The maintenance of these products is done by keeping in mind their shelf life.

Store location and non-store accessibility

Store location of grocery chain is better as it is located in the most accessible area of city. The store outlook is attractive and includes various eye catching slogans to attract the key customers of close areas. Non store accessibility of grocery is also good, as it contains effective techniques for the easiness of processing from its employees’ point of view. It is implemented without the use of physical stores to increase the sale of these products by contacting directly with the customers.

Principles of merchandising

The different principles of merchandising are used to effectively provide the products to the customers of grocery chain. These principles are used to enhance the skills of customers to identify the product along with the grouping of the products. Display level merchandising is used to develop attractive appearance of the products before the customer so that it is easy for the customer to identify the product. Eye level display is used for creating effective eye appeal for the products before the customers to increase the sale of these products. Strategic planning, strategic negotiation, strategic risk management and strategy for sales force management are used to manage the functions of grocery in an effective way. These principles of merchandising are used to achieve the goal of grocery chain of providing better services to its key customers.

Store organization and human resource decision making

There is a hierarchy of different departments in the grocery chain for accomplishing different tasks, which is necessary for fulfilling the function of catering different needs of customers in an effective way.  Managers play a key role in this grocery chain as their decisions are important and have a far reaching impact on the functioning of grocery chain. It is the duty of the manager of perishable products to implement the decisions in a planned way to fulfill the goal of store organization. There is an active participation of human resources in decision making with regard to the product. It is effective in terms of motivating the employees in effective manner as they constitute the important part of the store. Customer satisfaction is achieved only when the store has a well motivated sales force in order to get their full attention. Other stores should also follow the pattern of involving their human resources in decision making.

Inventory turnover and control

This grocery chain uses different approaches for inventory turnover and control, which assist it to enhance the productivity and turnover ratio in an effective manner. It is the most important part of supply chain management. On the basis of experience in this grocery chain of perishable products, it is concluded that practices such as just in time and enhance customer response are used to increase the sale and improvement in the processing of the products.

Current trends in retailing and e-tailing

In recent years various changes have taken place in the field of retailing and e-tailing. As a result to these changes, the methods of doing business in retailing store of grocery items have been changed. Concepts such as opening air store and free standing store are used increasingly by the grocery chains, which is also necessary for providing benefit of convenient shopping to the key customers. Changes have also taken place in the method of e-tailing as they are necessary for the growth of grocery chain.

In this competitive world, customers have not so much time to spend on shopping, so the grocery chain use the concept of online shopping in order to satisfy the customer and their employees as it is an effective tool to save the valuable time of the customers. All this is done to increase the sale of grocery products and to enhance customer satisfaction in efficient way. To deal with lifestyle of customer, grocery chain implements the concept of e-tailing and open air centers. These changes are also necessary in order to built goodwill of the store organization and to compete in the retailing industry in an effective way (Burke, 2005).

Generalizations/principles/theories

Generalization on the purpose of retailing as a function of marketing distribution

From the learning on grocery chains functions, the principle formed is that the grocery chain should develop some effective measures for the timely distribution of its products to the key customers. It can be achieved by allocation of required resources in an effective manner to ensure their proper functioning.

Store location and non-store accessibility

On the basis of experience and learning from grocery chain, the generalization is that the location and its accessibility are the key factor in determining the success potential of grocery chain. The major factor is customer service, which should be good enough in order to attract their attention. Strategy for store location should be based on the easiness of both the employees as well as customers. Direct marketing and e-tailing concepts should be implemented by keeping in mind the available resources and potential of sales force.

Principle of merchandising

     On the basis of the principles of merchandising used in the grocery chain, the generalization is that it should focus on the creativity of display merchandising, which further assists to attract the key customers. It should focus on different tools to provide better customer services. Concepts such as strategic negotiation, strategic planning and strategic risk management should be developed in accordance with resources of store organization.

Store organization and human resource decision making

On the basis of learning and experience from grocery chain, the generalization developed is that there should be a hierarchy in the store organization for the proper functioning of grocery chain. It should be based on the efficiency of each manager in accordance with their potential. Involvement of human resource in decision making should be decided according to their hierarchy level.

Inventory turnover and control

 The generalization on the basis of learning from the experience at grocery chain demonstrates that inventory turnover and control is the essential component of supply chain management. It should be based on qualitative and effective approaches, which are cost effective and fulfill the aim of store organization.

Current trends in retailing and e-tailing

Generalization on current trends in retailing and e-tailing demonstrates that to cope with competitive environment, it is customary for grocery chain to focus on the convenience of customers. The method of e-tailing should be based on understanding level of its employees as well as customers.

Testing and application

Purpose of retailing as a function of marketing distribution

As retailing is the function of marketing distribution process, I would like to do it by applying different concepts for effective marketing of the grocery items. It will be based on the key component of store organization and its aim.

Store location and non-store accessibility

The location of store will be in the accessible area of city by keeping in mind the convenience of key customers. Decision with regard to the implementation of non-store accessibility will be taken by considering its cost structure as well as the resources of store organization.

Principles of merchandising

Decisions regarding the implementation of merchandising principles will be taken by considering the different aspects of store organization and its goals. The use of departmental and eye level display will be done by selecting creative slogans for them. Point signs will be used in order to assist the customers for identifying the products easily.

Store organization and human resource decision making

Decisions with regard to the store organization will be taken by considering the importance of each hierarchy. Products in grocery chain will be arranged in sequential manner for the convenience of customers. Involvement of human resource in decision making will be implemented by considering their qualification experience and other related aspects.

Inventory turnover and control

Decisions regarding to the inventory turnover and control will be taken by considering shelf life of the products as well as the time period between the receiving and delivering process. Control measures will be developed on the basis of their efficiency and effectiveness.

Current trends in retailing and e-tailing management

Decisions regarding the implementation of retailing and e-tailing will be taken by considering their appropriateness in terms of store organization. Use of open air centers and free standing centers will be done by evaluating their future growth. E-tailing will be used by considering its effectiveness in terms of cost structure.

Conclusion

From the above study on the principles of retailing, it is concluded that grocery chain serves as an effective mode for the distribution of retail products. Principles of retailing assist the store organization in providing better services to the key customers. Different aspects of retailing have been used in determining its effectiveness in terms of store organization. Principles such as departmental display, eye level display, etc. are used to develop better appearance of product before the customers. Description of experience, learning theories and their applications have been used in order to explain the principles of retailing in an effective way.

References

Burke, R. R. (2005). Retail Shoppability: A Measure Of The World’s Best Stores. Indiana University.

Case studies in Business Management. Retrieved July 18, 2008 from

http://www.icmr.icfai.org/casestudies/teleshopping3.htm

Fernie, J. , Fernie, S. & Moore, C. (2003). Principles of Retailing. MA: Butterworth Heinemann.

Grocery Stores. (2008, March). Retrieved July 18, 2008 from http://www.bls.gov/oco/cg/CGS024.htm#nature

Kotler, P. (2002). Marketing Management. (11th Edition). New York: Prentice Hall Pvt. Ltd.,

Patrick, O. (1999, January). Which Retail Properties are Getting Market Share? The Appraisal Journal, 37-40.

Sand, G. A. (1995). Principles of Merchandising: A Global Perspective (1st edition). New York: Globalteam Press.