INSTITUTE - USB

DEPARTMENT - BBA
Bachelor of Business Administration
Retail Management
21BAT-374

Inventory management DISCOVER . LEARN .

EMPOWER 1
 Introduction to Retail
Management
CO1 To describe the concepts, functions, types and importance of Retail
Industry in India.

CO2 To interpret and analyze the requirements of Store Design and Visual
Merchandising in Retail Stores.

CO3 To classify the factors influencing the Retail consumer, consumer behavior
and decision making process

CO4 To evaluate Merchandise Management through retail operation and pricing

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CO5 To formulate Customer Relationship strategies by Personalization, Special

Treatment Benefits, Communication Benefits, Rewards and Loyalty
Programs

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Retail
Operations
Retail operations is the
term used to describe all
the activities that keep
the store functioning
well. It includes people
management, supply
chain, store layout, cash
operations, physical
inventory, master data
management,
promotions and pricing, https://www.google.com/search?q=retail+operations&source=ln
ms&tbm=isch&sa=X&ved=2ahUKEwjB4oKawZHmAhX6zDgGHVnx
and so on BtEQ_AUoAXoECBEQAw&biw=1536&bih=706#imgrc=vziNJXR_s
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 Retail Operations
• Retail operations is the term used to describe all the activities that keep the store functioning well.
It includes people management, supply chain, store layout, cash operations, physical inventory,
master data management, promotions and pricing, and so on.
• Operational excellence means achieving a sustainable competitive advantage through the
optimization of retail operations. Put simply, operational excellence means being consistently
better than the competition in organizing, optimizing and integrating the various tasks performed
in a store.

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Store Administration
• The retail store is a place where customers take a decision to buy a commodity at the spot. The
store also knows the customers’ mentality and buying behavior. Therefore, store displays all the
items under one roof where normally a customer needs not to walk here and there for a particular
type of retailing. Customer is the king and queen. He needs not to ask do you have this soap.
• In order to ensure a smooth flow of store activities, it is necessary that management should define
the total tasks and the appropriate persons for each task. It has seen that professional stores/chain
stores normally prepare an operation manual or blue print which becomes the base for assigning
duties and responsibility to various levels of staff.
• Activities carried on in Retail Stores:
1. Store Administration and Management of Retail Floor
2. Inventory Management
3. Managing Receipts
4. Customer Service
5. Sales Promotion

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Retail Pricing
• The price at which the product is sold to the end customer is called the retail price of the product.
Retail price is the summation of the manufacturing cost and all the costs that retailers incur at the
time of charging the customer.
• We as customers, often get to read advertisements from various retailers saying, “Quality product
for right price!” This leads to following questions such as what is the right price and who sets it?
What are the factors and strategies that determine the price for what we buy?
• The core capability of the retailers lies in pricing the products or services in a right manner to keep
the customers happy, recover investment for production, and to generate revenue.

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Factors Influencing Retail Prices

1.Internal Factors:
• Manufacturing Cost − The retail company considers both, fixed
and variable costs of manufacturing the product. The fixed costs
does not vary depending upon the production volume. For
example, property tax. The variable costs include varying costs of
raw material and costs depending upon volume of production. For
example, labor.
• The Predetermined Objectives − The objective of the retail
company varies with time and market situations. If the objective
is to increase return on investment, then the company may
charge a higher price. If the objective is to increase market share,
then it may charge a lower price.
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Factors Influencing Retail Prices

1.Internal Factors:
• Image of the Firm − The retail company may consider its own
image in the market. For example, companies with large goodwill
such as Procter & Gamble can demand a higher price for their
products.
• Product Status − The stage at which the product is in its product
life cycle determines its price. At the time of introducing the
product in the market, the company may charge lower price for it
to attract new customers. When the product is accepted and
established in the market, the company increases the price.
• Promotional Activity − If the company is spending high cost on
advertising and sales promotion, then it keeps product price high
in order to recover the cost of investments. 8
Factors Influencing Retail Prices

2. External Factors
• External prices that influence retail prices include the following −
• Competition − In case of high competition, the prices may be
set low to face the competition effectively, and if there is less
competition, the prices may be kept high.
• Buying Power of Consumers − The sensitivity of the customer
towards price variation and purchasing power of the customer
contribute to setting price.
• Government Policies − Government rules and regulation about
manufacturing and announcement of administered prices can
increase the price of product.

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Factors Influencing Retail Prices

2. External Factors
• Market Conditions − If market is under recession, the
consumers buying pattern changes. To modify their
buying behavior, the product prices are set less.
• Levels of Channels Involved − The retailer has to
consider number of channels involved from
manufacturing to retail and their expectations. The
deeper the level of channels, the higher would be the
product prices.

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ASSESSMENT PATTERN
Theory

Components Continuous Internal Assessment (CAE) Semester End Examination (SEE)

Marks 40 60

Total Marks 100

Sr. No. Type of Assessment Weightage of actual conduct

1 Assignment 10 per assignment

2 Exam 20 per MST

3 Quiz/Test 4 each quiz

4 Surprise Test 12 each test

5 Attendance and class performance 2

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APPLICATIONS
• Concept of Retail Management

• Concept and importance of retail layouts and retail design

• Importance and scope of retailing

• Understanding of various formats of retail management

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 References
1. Levy and Weitz, Retailing Management, 6th Edition Tata McGraw Hill
2. Bajaj, Tuli, Srivastava “Retail Management” 2nd Edition Oxford University Press
3. Gibson “Retail Management “4th Edition Jaico Publication House
4. Dunne Patrick M, Lusch Robert F, Griffith David A, Retailing, (5th Ed.), Thomson
South Western.
5. https://www.creativedisplaysnow.com/types-retail-store-layouts/#what-is-retail-
layout
6.https://www.indeed.com/career-advice/finding-a-job/what-is-visual-
merchandising

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THANK YOU