SECTION A

Q# 1

a. Retail Mix: A retail mix is defined as the marketing plan put in place to address key
factors such as location, price, personnel, services, and goods. Retail Mix uses
different analysis in the market for the growth in the market. Some of the components
of the retail mix are; Price, Promotion, Location, Merchandise, Customers Services
and Selling, Store Layout and Designs etc. Retail Mix is different from Marketing
Mix. The retail mix must be adjusted to appeal to the retailer's target market and also
sell their product effectively.

b. Wheel of Retailing: The wheel of retailing is a theory that explains the phases that
some retail stores undergo during their lifecycle. Specifically, it describes the
transition of a relatively small discount store to a high-end establishment The Wheel of
Retailing is a theory that portrays how retailers way to deal with piece of the overall
industry and make brand esteem.
Phase 1: Outlet starts with low price, low margin, and low reputation
Phase 2: It has High Price, High Margin, and High Reputation
Phase 3: It now maintains even higher price, even higher margin and higher reputation
Phase 4: When a newcomers enters market it has the same features as in Phase 1

c. Retail accordion Theory: The retail accordion theory states that the market begins as
large stores offering a wide variety of merchandise before shrinking to more targeted
stores and back again. In Retail accordion Theory, firms can choose to offer either a
wide variety or limited variety of goods with deep or shallow mixture a retail institution
may start as a small, independent store, but as sales increase, it may grow into a
department store or even a supermarket.
Q# 3

Pricing Strategy is a tool used to fix the price of a particular product or service by considering
various factors like the consumption of resources, Market conditions, the ability of customers,
demand and supply, need of the product like regular item or occasional, etc. The pricing
strategy of Crave Bakery, first step to figuring out how to price your baked goods is to
determine how much it costs to make them such as The cost of ingredients, Cost per serving,
Time it takes to make each items and there is also a factors in overhead costs such as; Variable
costs are costs that increase once your business starts to grow. For example, you might find that
you need to order more and more ingredients as time goes on to meet up your production.
Similarly, you may need to hire additional employees to keep up with demand. Labor, ingredient
and packaging costs will need to increase as your output increases. Fixed cost: Fixed costs are
costs that don’t change from month to month. These include things like your rent, utility bills
and POS system. Startup Costs: You’ll likely have some startup costs in the very early stages of
your bakery. For example, you may need to pay licensing, buy your initial kitchen equipment.
Taking such into account, one should determine the pricing of any product.

As for the promotional Strategy

1. During weekday mornings before 12 PM, we should create a bundled, discounted offering
of any hot beverage of the customer’s choice (Tea, Coffee, or Hot Chocolate) and breakfast
item (Toast, Cake, Muffin).

2. On weekday afternoons, we should offer: Buy a sandwich and get 30% off on tea.

3. On weekends, buy any two items and get the third item at 20% off.

4. Own Bakery printed packaging delivery system

5. Free or Paid Social Media and other platforms advertisement and promotion

In Conclusion, it is clear that pricing strategies play the most unique role in that it changes often,
most volatile business strategy and is dependent and interactive. Pricing makes a product
attractive or non-attractive. Pricing makes a business decide how much advertising or marketing
a product gets because of the relationship to cost and consumer happiness. If a consumer or
buyer is happy than they buy the product more regardless of price. Advertising and marketing
tells a consumer what they want to buy price helps that product stand out against other like
products.

Q# 4

a. Retail format refers to the overall makeup, design, and function of a given retail store.
The retail format is the store ‘package’ that the retailer presents to the shopper. A format
is defined as a type of retail mix, used by a set of retailers. Some of the retail formats are:
Ownership Based: Independent, Chains, Franchise, Leased Departments
Store Based Strategy Mix: Conventional supermarket Food-based superstore,
Combination store, Box (limited line) store, Warehouse store, Specialty and Variety
store, Traditional department store, Full –line discount store, Off-price chain

b. More Retail Workers Are Quitting Than Ever, But More Stores Are Opening Than
Expected. In June alone, 632,000 workers quit retail jobs. In fact, for most of the year,
every month, roughly 4% of the retail workforce has quit part of a nationwide wave of
workers reconsidering their careers post-pandemic. But retail stores are also hiring at a
record pace, In June, the retail industry had an eye-popping number of 1.1 million job
openings after more than 1.1 million workers got hired in a remarkable hiring spree. But
retail stores are also hiring at a record pace. In June, the retail industry had an eye-
popping number of 1.1 million job openings — after more than 1.1 million workers got
hired in a remarkable hiring spree. Retail wages are rising the fastest in years, but so are
prices.
SECTION B

a. Technology benefits the retail industry as:

➢ By implementing AI, retailers can ensure operations more efficient while also ticking
all the right boxes when it comes to sustainability.
➢ Proper flexible orders through technologies
➢ AI can help with demand forecasting
➢ AI can improve availability
➢ AI can also help to set the right price
➢ AI can respond and react to transport disruption

b. The sustainability issues in retail are mainly:

➢ Need for customization. Customers can prove very demanding and they are
increasingly looking for unique experiences that allow them to build and customize
their own products.
➢ Retail price inflation. ...
➢ Communication. ...
➢ Sustainability.
➢ Digital disruption.
c. Brands are creating efficiencies by utilizing technologies for following
➢ Delegate the small things: take your time to learn your employees' strengths and
weaknesses so that you can delegate more effectively.
➢ Automate processes and workflows: Small businesses often get bogged down with
repetitive tasks. You can likely automate many of your frequent tasks using AI
➢ Consolidate tasks and remain focused
➢ Welcome change: Take changes as the opportunities not as obstacles. Being willing
to make changes is a necessity. Stagnant businesses will fall by the wayside when
challenged by other companies, economic trends or changes to consumer demands.
➢ Use available tools: A quick way to increase your small business's efficiency is to
take advantage of technology and tools that were built to specifically solve problems
with productivity
 d. The Organized retail sector is regulated by the government and the employment
terms and working hours per day in this sector are fixed. The Unorganized retail sector
is not regulated by the government and employment terms and working hours per day
are not fixed in this sector.
The challenges for organized retail are
➢ Undergo the New Protocol to Prevent Covid-19 Transmission.
➢ Keeping up with ever-changing customer expectations.
➢ Maintaining customer loyalty.
➢ Managing internal communication.
➢ Retaining and engaging employees.

The challenges for unorganized retail are

➢ Low Skilled Businesses

➢ No Fixed limit to working hours
➢ Working days are unjustified as they have to work on holidays and weekends
➢ Daily wages are given to them, which is quite low than the wages given in the
organized sector.