16-11-2012, 01:07 PM
Promo Efficacy in Hyper CITY–Detailed analysis
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Introduction to Retail
Meaning
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase
Etymology
Retail comes from the French word retailer, which refers to "cutting off, clip and divide" . It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German also refers to the sale of small quantities of items
Types of retail outlets
A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small family- run stores, but this market is increasingly being taken over by large retail chains.
Retail sector in India
The India Retail Industry is the largest among all the industries, accounting for over
10 per cent of the country’s GDP and around 8 per cent of the employment. The
Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi-storied malls and the huge complexes
that offer shopping, entertainment and food all under one roof.
A large young working population with medium age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry.
Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths or students.
Transfer mechanism.
There are several ways in which consumers can receive goods from a retailer:
Counter service, where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. It was common before the 1900s in the United States and is more common in certain countries.
Delivery (commerce), where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed catalog was invented in
1744 and was common in the late 1800s and early 1900s. Ordering by telephone is now common, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service (especially for pizza delivery). Direct marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. Online shopping started gaining significant market share in developed countries in the 2000s.
Door-to-door sales, where the salesperson sometimes travels with the goods for sale.
Self-service, where goods may be handled and examined prior to purchase, has become more common since the 1920s.
Sales promotion is important for consumers because
i. The consumer gets the product at a cheaper rate;
ii. It gives financial benefit to the customers by way of providing prizes and sending them to visit different places;
iii. The consumer gets all information about the quality, features and uses of different products;
iv. Certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and
v. It helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.
Hyper city launches its first store in Hyderabad
(Andhra Pradesh)
Hyper CITY launched its fourth store in Hyderabad. Spreading across 1,00,000 square feet of retail space including wider aisles and 23 checkout counters, the store offers a wide selection of innovative 40,000 products sourced from both local and global markets. The new outlet will have merchandise across categories inclusive of fresh produce, food & grocery, home ware, home entertainment, hi-tech, appliances, furniture, sports, toys, & fashion, accessories and footwear.
Speaking on the inauguration, BS Nagesh, vice chairman, Hyper CITY Retail (I) Ltd. said, “We are delighted to launch Hyper CITY in Hyderabad. It is our first store in in the city and we are confident that Hyper CITY will prove popular with shoppers. We have seen immense potential in this city and therefore believe it to be the perfect market to establish our store. Hyper CITY will provide shoppers a truly international shopping experience, where customers can shop in comfort in a large, modern and exciting environment.”
In the new outlet Hyper CITY has a tie-up with Waitrose (food shops of John Lewis partnership from UK) to offer distinctive, high quality food products ranging from conserves, biscuits, pastas to beauty products. Hyper CITY also houses Raleigh -- a reputed bicycle brand from UK, and a host of exclusive brands like ‘Ebano’ & ‘Avorio’ in home, ‘Fresh Basket’ in food, ‘Maxit’ in sports,‘Technix’in electronics and ‘CITY’ in fashion.
Hyper CITY will also be launching its loyalty program, the 'Hyper CITY Discovery Club Card' at the outlet soon. The other three operational stores of Hyper CITY are in Mumbai, Navi Mumbai & Jaipur.
End cap
End cap is a display for a product placed at the end of an aisle. It is perceived to give a brand a competitive advantage. It is often available for lease to a manufacturer in a retail environment. In the retail marketing world, location is everything. One of the most popular display areas for merchandise in a grocery or department store is the hub at the end of an aisle, also known as the end cap. An end cap is highly visible from the popular perimeter shopping areas, and each aisle section contains four end caps. Competition for the right to display products on an end cap can be very fierce, especially among beverage and snack food companies. An end cap usually contains items which have a higher profit margin, such as carbonated sodas, savory snack foods and seasonal offerings.
Quite often the end cap will be stocked with a small supply of items available in a neighboring aisle. The hope is that a customer will visit the regular aisle if a particular flavor or size is no longer available at the end cap. In this way, an end cap display serves as a teaser for the larger assortment of products in the aisles. Even if a customer has no need to venture down a particular aisle, the convenience factor of grabbing a beverage or snack at the end cap has its own appeal.