RETAIL BRANDING

Def : Brand is the product’s essence, its meaning and its direction. It defines its identity in time and space.

Successful Retail Branding starts with:

• 1.      A clear definition of what the retailer stands for
• 2.      An identification of what the customers associate it with
• 3.      When customers think the brand is a reflection of them
• 4.      When the retailer is in the minds of the customer when he think of brand.

Brand

True branding effort

• 1.      Communication that inspires emotional reaction
• 2.      Customer Service
• 3.      How salespersons greet customers
• 4.      How fast product is shipped and delivered
• 5.      Involves every single contact occurring between any product and a human

• Role of Brand
• 1.      Successful Retail Branding ensures Stable long term demands
• 2.      Better margins
• 3.      Differentiation by way of creating long term association
• 4.      Adds value to the product
• 5.      Trust of fulfillment of service expectations
• 6.      Protection from growing competition
• 7.      Image as a company attractive enough to work for
• 8.      Negotiation with suppliers from a position of improved strength

Brand Loyalty

Brand or store loyalty will ensure

• ·         Positive disposal to the brand based on brand loyalty
• ·         Brand preference : Frequent utilization of the store over other stores
• ·         Brand allegiance: Continuous utilization of the store overtime 

Brand loyalty may be expressed for one or more brands

• 1.      Hard core loyalty : Buying one brand all the time
• 2.      Soft core loyalty : Buying a combination of two competing brands
• 3.      Shifting loyalty : Buying preference shifting from one brand to another
• 4.      Switchers: No loyalty to any one brand based on the deal given.

Positioning of brands Determined on the basis of

·         Product usage

·         Price

·         Price

For successful brand positioning Brand Managers should

• ·         Regularly assess the customer’s opinions
• ·         Clearly identify the target
• ·         Plan the brand
• ·         Differentiate the brand from others in the sub group

Differentiate the brand from others in the sub group

Personality of the brand

• ·         It is created by way of adding psychological values through
• ·         Packaging
• ·         Advertising
•     Other aspects of the marketing mix

Importance

• ·         Encourages customers to build a relationship with a brand
• ·         Gives strength to the brand
• ·         Ensures the staying power of the brand

Concept has two non-functional aspects of brands

• 1.      Brand image
• 2.      Brand identity

Brand image

• ·         Customers regard brands possess human-like characteristics
• ·         Customers experience brands as bundles of association
• ·         Customers see, hear, smell, taste and get gut feelings about different brands
• ·         This profile or essence is called brand image

Retail Promotional Strategy

•  Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm

Elements of the Promotional Mix

Advertising Sales promotion Store atmosphere Web site SEM	Personal selling E-mail marketing
Publicity SEM	Word of mouth

Planning a Retail Promotional Strategy

Promotional Objectives

•          Increase sales

•          Stimulate impulse and reminder buying

•          Raise customer traffic

•          Get leads for sales personnel

•          Present and reinforce the retailer image

•          Inform customers about goods and services

•          Popularize new stores and Web sites

•          Capitalize on manufacturer support

•          Enhance customer relations

•          Maintain customer loyalty

•          Have consumers pass along positive information to friends and others

Public Relations

•          Public Relations - Any communication that fosters a favorable image for the retailer among its publics

–        Nonpersonal or personal

–        Paid or nonpaid

–        Sponsor-controlled or not

–        Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor

Advantages

•          Image can be presented or enhanced

•          More credible source

•          No costs for message’s time or space

•          Mass audience addressed

•          Carryover effects possible

•          People pay more attention than to clearly identified ads

Disadvantages

•          Some retailers do not believe in spending on image-related communication

•          Little control over publicity message

•          More suitable for short run

•          Costs for PR staff, planning activities, and events

Advertising

•          Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor

•          Key aspects

–        Paid form

–        Nonpersonal presentation

–        Out-of-store mass media

–        Identified sponsor

        Advantages

•          Attracts a large audience

•          Gains pass along readership (for print)

•          Low cost per contact

•          Many alternatives available

•          Control over message content; message can be standardized

•          Message study possible

•          Editorial content surrounds ad

•          Self-service operations possible

Disadvantages

•          Standardized messages lack flexibility

•          Some media require large investments

•          Geographic flexibility limited

•          Some media require long lead time

•          Some media have high throwaway rate

•          Some media limit the ability to provide detailed information

Personal Selling

Oral communication with one or more prospective customers for the purpose of making a sale

Advantages

•          Message can be adapted

•          Many ways to meet customer needs

•          High attention span

•          Less waste

•          Better response

•          Immediate feedback

Disadvantages

•          Limited number of customers handled at one time

•          High costs

•          Doesn’t get customer in store

•          Self-service discouraged

•          Negative attitudes toward salespeople (aggressive, unhelpful)

Sales Promotion

Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Advantages

•          Eye-catching appeal

•          Distinctive themes and tools

•          Additional value for customer

•          Draws customer traffic

•          Maintains customer loyalty

•          Increases impulse purchases

Fun for customers

Disadvantages

•          Difficult to terminate

•          Possible damage to retailer’s image

•          More stress on frivolous selling points

•          Short-term effects only

•          Used as a supplement

EMERGING TRENDS IN INDIAN ORGANIZED RETAIL SECTOR

The emerging trends in the Indian organized retail sector would help the economic growth in India.

There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad. 

The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector.

The infrastructure of the retail sector will evolve radically in the recent future. The emergence of shopping malls is increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future:

• The Indian Organized retail sector will grow up to 10% of total retailing by 2010. 
• No one single format can be assumed as there is a huge difference in cultures regionally.
• The most encouraging format now would be the hyper marts.
• The hyper mart format would be further encouraged with the entry of the TNCs.

Retail Inventory Management

The retail industry can be extremely competitive and one of the biggest challenges is managing a store’s retail inventory. Businesses need to have space to store a wide number of products along with a wide variety. If a retail store does not carry enough of a product, then they are losing potential customers who will shop elsewhere.

Retail inventory is different from other forms of inventory because of the quantities needed. Retail chains need warehouses to keep all of their stock and the means to transport it to their stores. Keeping up with such large quantities can be difficult for anyone, even with the help of an automated system. To track a company’s products, a retail inventory management system needs to be successfully implemented.

What Is Retail Inventory Management?

Retail inventory management is the process and methods used to keep track of the stock in a retail business. These methods control everything from ordering, shipping, receiving, tracking inventory, retail turn-over, and storage. Retail inventory management can help keep a business’ profits at a steady margin as well as reducing theft and loss of inventory. Many retail businesses lose money every year because they do not have a successful inventory management system in place.

Retail Inventory Management should provide the following functions for a retail business:

• Track and manage all of the inventory for the business
• Keep up with store markdowns
• Evaluate how well some groups of products do in sales
• Provides analysis for comparison shopping with competitors
• Collect data on the sales and inventory of individual stores using SKU
• Allows you to accurately review your inventory

How To Manage Inventory

Most businesses use some form of computer software to manage their inventory. Unless the retail business is very small, doing it manually would be very impractical, especially for large companies that deal in thousands of individual products.

A business that has a successful system for retail management will allow the business to keep a sufficient amount of stock to meet customer demand. If a business does not have enough inventory, then it can slow down cash flow. Too much inventory can cost a business money and take up more room.

When dealing with retail inventory management, companies will utilize one of these systems:

• Point-of-sale terminals – These are check-out points that automatically update a company’s inventory levels.
• Job costing and inventory systems – Another automatic system that updates computerized levels of inventory.
• Barcodes and readers – Every product these days contains a barcode with the items information. Barcodes makes it easy and quick track stock.
• Electronic Supplier Product catalogs – This system can update inventory levels automatically through either the internet or media disk.

Managing retail inventory involves several characteristics and steps. One of the most important steps is to make sure that you always remove products from the system as soon as they are sold. The same is true for receiving shipments of new stock. Make sure you record it as quickly as possible.

Physical inspections should be regularly performed to make sure the computerized system is accurate with what is actually in stock. A physical inspection involves manually looking over the stock to see that they numbers match.

Review sales reports weekly. You want to do this to see what is selling and what is not. Products that spend more time on the shelf should be re-evaluated or discounted to get rid of them.

Another step is to research to find the right products to sell. Businesses should come up with a target market and try to carry the right type of inventory to meet that target. To make sure that you have the right product in your stores, you need to know what type of products to order and how much, when to order, and when the products should arrive.

Keeping up with retail inventory management should be delegated to several individuals or a department. Supermarkets that have both grocery and non-grocery items have separate departments for each. By delegating inventory into smaller groups, it allows the individuals in charge of their group to have a better understanding of what stock is available an dhow wel it sells.

Prevention of Inventory Theft and Loss

One of the biggest problems to plague retail inventory is theft and loss of retail products. Every time this happens, it costs a business money. Preventing inventory theft can be difficult. But with the right system, you can definitely reduce it. Here are some tips:

• Do not share or hand out the same password for every cashier. Having separate passwords and log-ins tells who was manning the register at certain times.
• Always check out any transactions that were voided or canceled. This is a common way for inventory to disappear from a store.
• Set up a password-protected security on all computers and systems. Only when employees absolutely must have access should it be granted.
• Go over inventory reports every day to make sure sales figures match with the current quantities.
• Make sure the back door has a security alarm system that is activated every time the door is opened without authorization. If employees know the door should not be opened without permission, they shouldn’t open it.
• Inspect the garbage every night before it goes out. Use clear plastic bags so that you can easily see inside the bag and make sure there is no inventory hidden inside.
• Set up security cameras not only in the store but in the back storage as well. This allows you to keep an eye on items out on the racks as well as in stock.

Right to Consumer Education

Right to Consumer Education means right to acquire knowledge and skill needed to become an informed service receiver for or on behalf of persons with disabilities, their caregivers or families throughout their lives. Ignorance of consumers, particularly the illiterate and rural service receivers, is mainly responsible for their exploitation. Appropriate forum for consumer education, enlightenment and protection of their rights is therefore mandatory to prevent such unhealthy practices in the service delivery organization for persons with disabilities.

Consumers must demand information and details on their rights, ongoing service activities for their own benefit or for benefit of their wards on a continual basis through group meetings, discussions, symposia, seminars, debates and declamations. There must be transparency in the practice or procedures of therapeutic planning, programming, implementation or execution of service delivery for persons with disabilities. Wherein the Institute is professedly a center for specialized manpower training, consumers must appreciate the genuineness of the efforts made by student-clinicians under the direct supervision of rehabilitation professionals. 

CONSUMER MOVEMENT IN THE MODERN PERIOD

Consumer movement in the present form came into being only in the 1930's in the West and only in the 60's in India.

The basic objectives of consumer movement world wide are as follows :

· To provide opportunity to the consumers to buy intelligently

· Recognition of reasonable consumer requests

· Protection against fraud, misrepresentation, unsanitary and unjust products

· Participation of consumer representatives in management of aspects affecting

  consumers

· Promoting consumers interests

The basic reason for the development of consumer movement in India are different from those in the West. In western countries, consumer movement was the result of post-industrialization affluence-for more information about the merits of competing products and to influence producers especially for new and more sophisticated products.

In India, the basic reasons for the consumers movement have been:

• Shortage of consumer products; inflation of early 1970's
• Adulteration and the Black Market.
• Lack of product choices due to lack of development in technology
• Thrust of consumer movement in India has been on availability, purity and prices

The factors which stimulated the consumer movement in recent years are:

• Increasing consumer awareness
• Declining quality of goods and services
• Increasing consumer ,expectations because of consumer education
• Influence of the pioneers and leaders of the consumer movement
• Organized effort through consumer societies

Extra topics related to consumer education

The consumer is the center of all business activities. In modern days, it is said that the consumer is the king of the market. Business activities are carried out to satisfy, the wants of consumers. A commercial organization totally depends on the customer not only for its survival but also for its growth. At present customer is given top most importance and every attempt is made to satisfy the customer. 

But in reality, the position of the consumer is different. He is like a slave. He is exploited by well organized and well informed sellers by charging higher prices, by supplying poor quality goods, even by supplying adulterated goods, shot weight, misleading advertisement, etc. Customers are still un-organized and have no idea about their basic rights of safety, right to choose, right to be heard, etc. 

In the word Consumerism, "Consumer" means the user or customer and "ism" means movement", and hence, consumer movement is popularly known as "Consumerism. It is an organized and collective movement of consumers. This movement started in the year 1920 to protect the interest of the consumers.

The main object of this movement is to educate and unite consumers and to fight for the protection of their rights. Consumer movement is similar to trade unions because it is a collective approach to solve the malpractices and injustice done by any organization.

Thus, it is a movement of the consumers, for the consumers and by the consumers because it is a social movement of consumers and it has came into existence to educate and unite consumers to fight for their rights. In short the process of uniting consumers is nothing but Consumer Movement.

ACHIEVEMENTS OF THE CONSUMER MOVEMENT .

Some interesting developments which are helping the consumer movement include, developments taking place in the field of consumer education and some noticeable changes that have Gen place among business organisations and their associations or federations. Consumer Protection is being incorporated in the courses at different levels in schools and colleges. Full-fledged courses have been introduced in management and law courses.

A number of large organisations have set up Consumer Grievance Cells as an in-house redressal mechanism. Life Insurance Corporation of India (LIC) has set up claims review committees at the zonal and central levels. Petroleum Companies, Railways, 20. Banks, Income Tax Departments, have also initiated setting up of public grievance cells. The Government of India has set up a separate Directorate called Directorate of Public Grievances at Sardar Patel Bhavan, Sansad Marg, New Delhi. They deal with omp plaints relating to hawks, railways, insurance, pensions and related matters. In the long run, they will cover all the ministries. The nationalised banks are observing 15th of every month as the 'Customer Grievance Day.' where an aggrieved consumer can walk into the top managers' offices in their respective town, district or zone. The Council of Fair Business Practices, of more than 20 years standing, is also trying to help in the redressal of complaints against business from individual consumers or groups. Federation of Indian Chambers of Commerce and Industry (I?ICCI) has set up a Consumer Business Forum which meets once a quarter in different cities of the country.

All stock exchanges in the country have also set up similar cells. The Advertisement Standard Council of India (ASCI), Confederation of Indian Industry (CII) and FICCI have evolved a code of ethics for their activities.

Another significant achievement of the consumer has been the representation given to consumer organisations on the policy making bodies (regulator machinery) of govern- ments and AdyisoryWelfare Committees of big business organisations and the service sector. Central and State (Government) Consumer Protection Councils, regulatory departments of Preventions of Food Adulteration, Supplies of Food and Drugs, Weights and Measures Department, Quality Control Institutions like Bureau of Indian Standards (BIS) and AGMARK, Petroleum Product Department, Railway Commuters Welfare Committees, Regional Advisory Committees for Indian Airlines Services all have representatives of the various consumer organisations. Thus, consumers get full oppor-tunity to participate in policy making aspects.

It appears that the time has come when consumers in India can hope to be 'The King' in the market place very soon. The labour of dedicated individuals and groups who have fought relentlessly for consumers rights through the decades has not been in vain after all.