2ndSemest

erAssi
gnment

BBA1stYear

(
2023–2026)

Ret
ail
Management(
DBB1205)

Submi
tt
edby

VI
NESHJAI
N

2314105339
 Assi
gnmentSet
-1Quest
ions
Q:1 Whati smeantbyr etail
[Link] aint hedi ff
erentt ypesofst ore
ret
ail format s.
Ans:Ret aili
ng:-
Retail
ingi st heoneoft hef ast estgrowingsegment sof
theeconomy .
Retai
li ndust r
ypr ov
idesexcel lentbusi nessopportuniti
es
andsi nglel ar
gesti ndustr yinmanynat ions.I tist hewor ld’
sl ar
gest
pri
vatesect orcont r
ibuti
ngt o8% oft heGDPandempl oysonesi xthof
thelabourf [Link] i
mat edr etailtradei sexpect edtobe7t r
il
li
on
US$.Indiai sconcered, retailcontri
but esto14%ofourGDPandi tisthe
secondl argestempl oyeraf teragr i
[Link] sclassif
iedast hefif
th
mostat tracti
veretai
ldest inationint hewor l
dandt hesecondamongt he
countr
iesi nAsia.

Retailformatsandt ypes:-Retai
lindustr
yiscontinuosl
ygoing through
changes on accountofl i
beral
isat
ion,globali
sati
on and consumer
[Link] nt
egratedcombi nati
onoft ime,locat
ion,assort
ment ,
service,adver
ti
singandpr [Link] ar
iouscategori
esar egrouped
undert womai nheading: [Link] oreretai
lformat. [Link]-stor
er et
ail
format .

1.
Stor
er et
ailf
ormat:Thef
oll
owi
ngar
ethet
ypesofr
etai
lst
oresunder
st
oreret
ailf
ormat:

i
. Conv enienceStore:I
tisgeneral
lyawel
lsit
uated,f
oodori
ented
storewithlongoperat
inghour
sandalimi
tednumberofi
[Link]
retai
lstores,
li
ke‘HPSpeedmar t
’and‘
i
n&out.

i
i
. Supermarkets:Thesearediver
sif
iedstoreswhi chsel
labroad
rangeoffoodandnon-foodi
[Link]
ernati
onall
y,t
hesi
zeoft
hese
storesv
ariesfr
om 8000to20000squarefeet.

i
i
i. Departmentalstores:Adepart
mentalstoreusual
l
ysell
sagener al
l
ineofappar elforthefamil
y,househol
di t
ems,homef ur
nishi
ngs
andapplicat
[Link]
orevari
esfrom [Link]
.and
stocksbetween50000t o100000SKUs.

i
v. Specialt
ystor
e: Thishasa narr
ow productl
i
newi t
h a deep
assortment
.Mostspeci
alt
yst
oresoper
ateinanareaunder8000
[Link]
.
v
. Hypermar kets:Thesest oresoccupyanar earangingbetween
80000sq.f t.to200000sq.f [Link] permarketare
Carr
efour
,wal-
mar tsupercentr
e,TescoandTarget
.

v
i. Mom and pop st ores- These are gener
all
yfami
l
y owned
busi
nessescat
eri
ngt
osmal lsect
ionsofsoci
ety
.

v
ii
. Categor
ykil
lers-Cat
egor
ykil
l
ers r
angesfr
om [Link]
[Link] sagoodexampl
eofani nt
ernat
ional
cat
egoryki
l
ler.

Non St or
eRet ailFormat:Thef
oll
owi
ngar
ethet
ypesofr
etai
l
undernon-
stor
er etai
lfor
mat:

i
. E-
tai
ler
s:Theypr
ovi
deapict
ureanddescri
pti
onoft
hepr
oduct
.
Exampl
esar
eAmazon.
com,
[Link],
etc.

i
i
. Vendi
ng:Thi
ski
ndofr
etai
l
ingi
sint
rudi
ngt
hei
ndust
ry.

i
i
i. Cat
aloguer
etai
li
ng:Got
othei
nter
netf
ormor
einf
ormat
ionbef
ore
pl
aci
nganorder
.

i
v. Dir
ectSell
ing:Cosmet
ics,f
oodandnut
ri
ti
onalpr
oduct
sar
esome
ofthepr
oductssoldi
nthismanner
.

Q:[Link] he var
ious f act
orsinfluenci
ng t
he ret
ailconsumer.
[Link]
uenci
ngt heRet ai
lConsumer:-Ther
earevari
ousother
factor
sinfl
uencingthepur chaseofconsumersuchassoci al
,cult
ural
,
personalandpsy chol
[Link]
onofthesefact
orsisgiven
below.

[Link]
uralFact ors:Consumerbehav iourisdeepl yi
nfluencedby
cul
turalf
actor ssuchas:
Cult
ure:Cultureisthepartofeverysocietyandt heimpor tant
causeofaper son’
swant sandbehav i
[Link] nfl
uenceofcul tur
e
onbuy i
ngbehav i
ourvari
esfrom pl
acet oplace.
Subcult
ur e:Eachcultur
econt ai
nsdiff
erentsubcul t
[Link] ket
ers
canuset hesegr oupsbysegment i
ngt hemar ketintov ar
ioussmall
 porti
ons. SocialCl
ass:Inthiswaymar keti
ngacti
vi
tiescoul
dbe
tai
lor
edaccordingtodi
fferentsocialcl
[Link]
eweshoul dnot
e
thatsoci
alcl
assinnotonlydet er
mi nedbyincomebuttherear
e
vari
ousotherfact
orsaswel lsuchasweal t
h,educat
ion,
occupati
onetc.

[Link] factors: Social factorsalsoimpactt hebuy ingbehav i

ourof
consumer [Link] mpor tantsocialf
actor sare:
Referencegr oups:Thei mpactofr ef
er encegr oupsv ari
esacross
product sandbr [Link] eifthepr oductisv isi
blesuchas
dress,shoes, caret c.
Fami l
y :Buy erbehav iouri sstrongl
yinfluencedbyt hememberofa
fami l
[Link] eforemar ket ersaretry
ingt ofindther olesand
i
nf l
uenceoft hehusband, wifeandchildren.
Rolesandst atus: Eachper sonpossessesdi ff
erentr ol
esand
statusint hesoci et ydependi ngupont hegr oups,clubs,famil
y,
organisat i
onet [Link] eforeherbuy i
ngdeci sionswi llbeinf
luenced
byherr oleandst atus.

[Link] sonalFact ors: Per sonal factorscanal soaff ectt heconsumer

behav i
[Link] hei mpor tantper sonal f
actor st hatinfluence
thebuy i
ngbehav iourar e:
Age: Familylifecy clesconsi stsofdif ferentst agessuchy oung
singles, marriedcoupl es, unmar ri
edcoupl [Link] pmar ketersto
dev elopappr opr iatepr oduct sforeachst age.
Occupat i
on: Theoccupat ionofaper sonhassi gnificantimpacton
hisbuy i
ngbehav iour .
Economi csi t
uat ion:Consumer ’
seconomi csi t
uat i
onhasagr eat
i
nf l
uenceonhi sbuy i
ngbehav i
our.
Lifest y
le:Lifest yleofcust omer sisanot heri mpor tantf actor
affect i
ngtheconsumerbuy i
ngbehav iour .Itisdet ermi nedby
cust omeri nterest s, opinions, acti
vit
ies, etc.
Per sonalit
y :Per sonal itychangesf r
om per sont oper son,timet o
ti
meandpl acet opl ace.I thasdi f
ferentchar acteristicssuchas
domi nance,aggr essi veness, selfconf idenceet c.

[Link]
ogi calfactor
s:Ther
earefourimport
antpsy chologi
cal
fact
orsaffectingtheconsumer’
sbuyingbehaviour
.
Motivat
ion: Thelevelofmoti
vat
ional
soaffectsthebuying
behav i
ourofcust omer [Link] sonhasdi f
ferentneedssuchas
physiologicalneeds, socialneeds, biol
ogicalneedsetc.
Percept i
on: Ther earethreedifferentperceptualprocessesar e
sel
ect i
veat tention,sel
ectiv
edi storti
onandsel ectiv
er et
ention.
Beliefsandat t i
tudes:Customer spossessesspeci fi
cbel i
efand
att
itudetowar dsv ari
ousproduct [Link] keter
scanchanget he
bel
iefsandat tit
udesofcust omer sbylaunchingspeci alcampaigns
i
nt hisregard.

Q:
3Expl
ainvar
iousst
epsi
nvol
vedi
nchoosi
ngar
etai
llocat
ion.
[Link] epsinvolvedinchoosi ngar et
aill
ocation:Af t
erident
ify
ing
theregion, thefol
lowingst epshav etobef ol
lowed: [Link]
fythe
mar ketinwhi chtolocat
est [Link]
uatethedemandandsuppl y
withinthatmar keti.
[Link] nethemar ketpotentialorthe
mar ketsizeandest i
mat ethenumberofshopst hatwoul dbe
requiredtoser vethemar ket.3. I denti
fythemostat tr
acti
vesites
andsel ectthebestsiteav ailabl
e

St
ep1: Marketidentif
icat
ion:Thef i
rstst
epinarrivi
ngatadecisi
on
onretaill
ocationistoidenti
fythemar ketatt
ract
iveandsuit
abl
et o
aretai
[Link]
si salsoimportantincaseofani nt
ernati
onal
expansionifthebusinessisf ocusedoninternat
ionalt
radi
ng.

Step2: Det ermini ngt hemar ketpot ent i

al:Thef eatureoft he
populationofacount ry,r
egionorl ocat i
onisintegral todev el
oping
ret
ailmar keti
ngst [Link] aonpopul ati
onandr elatedst ati
sti
cs
canbeobt ai
nedf rom t hecensusr epor t
[Link]
heabov edat aand
i
nformat ionhel psi nknowi ngt hemar ketpotentialfort heretai
ler.
a)Char act eri
sti
csofhousehol dsi nt hearea:Ther et ail
erneedst o
haveacl earunder standingoft heav eragehousehol di ncomel evel
andt hedi stri
butionoft hisincomei nt helocati
[Link] standing
oftheav er ageagepr ofi
leoft hepopul ati
oninthear eai s
necessar yasi thel psi ndeci sionmaki [Link] e,a
neighbour hoodwhi chhasal argenumberofy ounghousehol ds,
maybemor eorient edt owar dsf astfoodandcasual clothing.

b)Compet
it
ionandcompat
ibi
li
ty:I
nor
dert
odet
ermi
net
hemar
ket
potent i
al,i
tisnecessarytocheckt hecompat i
bil
i
tyoftheretai
l
storewi ththeneighbouringretai
loutl
[Link]
salso
necessar ytot r
yandest i
mat ethei
rstrengt
hsandweaknesses, to
under standthesquaref ootareaofthev ar
iousstor
esinthearea
andt heki ndofretur
nsthattheyar eabletoobtai
nperempl oyee
persquar efoot.

c)Tr adear eaanal ysis:At radeareaist hegeographi

calareat hat
gener at
est hemaj or i
tyoft hecust omer sfort
[Link]
adi ng
areasar edependentondi stanceanddonotal way shavetobe
concent r
icinnat [Link] imarytradingareacoversbetween50
to80%oft hest ore’scust omer [Link] ytr
adingarea
containsaddi tional 10t o15%oft hest ore’
[Link]
tert
iarytradear eacov ersthebalancecust [Link]
areasdet ermi nedbyf r equencyofpur chasesfrom aregi
onand
averagepur chaseamount .

Step3:I
denti
fythealter
nateattr
act i
v esit
esandsel ectt
hebest
si
te:Therearevari
ousfactorsaf
f ectthisdeci
[Link] ominent
amongt hem ar
e:[Link]
[Link] bi
lit
ytothemar ket
.[Link]
numberofstoresthatexisti
nthatar ea.4.
Amenitiesavai
lable.
[Link]
buyortolease.
[Link].

Assi
gnmentSet
-2Quest
ions
Q:4.
Whatar
et hest
agesi
nvol
vedi
nmer
chandi
sepl
anni
ng?
Expl
aini
ndetail
.
[Link]
agesofMer
chandi
sepl
anni
ng:
Stage1:Dev elopingsal
esf orecast:Sal
esforecasti
ngi
smade
basedont het arget
sandi nputsgiv
enbyt hetopmanagement .
Salesforecast ingenabl
est odeterminetheinventor
yneedsf ora
parti
cularproductorcat [Link] ofsalesf
orecasting
answerst hef ollowi
ngquest i
ons:[Link] oduct
needstobepur chased?
Pr
ocessofdev
elopi
ngsal
esf
orecast

[Link]
ewingpastsal
es:Revi
ewofpastsal eshel
psi
n
underst
andi
ngthepat
ternortr
endinsalesandhel
psi
nthe
proj
ecti
onofsal
esfi
guresfort
hefutur
eper i
od.

[Link]
ons:Iti
snecessary
toconsiderthechangeshappeni
ngintheeconomi cfront
.Ithas
adi r
ectli
nktoconsumerspendingpatt
erns,economi c
slowdowns, i
ncr
easeinemploymentlevel
set [Link]
lthesefact
ors
affect

[Link]
ngthechangesinthesalespot
ent
ial:I
tisnecessar
yto
rel
atethedemographi
cchangesinthemarkettothatofthe
stor
eandt hepr
oductstobesold.

[Link] nt hemar keti

ngstrategiesoft heret
ail
organisati
onandt hecompet it
ion:Competiti
veanal ysisi
sof
utmosti mportanceast hef orecasti
ngfigur
est husar ri
vedat
resul
tsi ntheulti
mat esal esnumber [Link] act
ors
needst obeconsi deredbef oreforecasti
ng:a)Ist her
eanyl i
ne
ofmer chandisetobei ntroduced?

[Link] eat
ingthesalesforecast:Aft
erconsideri
ngtheabov e
ment i
onedpoints,anesti
mat eoftheprojectedi
ncreaseint
he
salesisarr
[Link]
sisappl i
edtothev ari
ous
products/
categori
estoar r
iveattheproj
ectedsalesfigur
es.

Stage2:Determiningmer chandi
serequir
ement:Thelevelsof
pl
anningmer chandise:
[Link]
onofmer chandisebudget:Earmarki
ngofmer chandise
budgetsisconsideredtobeav it
alcomponentoftheplanning
[Link] atestheamountal l
ocatedforeachproduct,
basedont hepre-setprofi
tabil
it
y.

[Link]:Planningmer chandiseassortmenti
sa
signi
fi
cantpartofaretail
er’sfi
[Link]
th,
a
retai
l
erfi
rstdecidesthefir
m’ sfi
nancialobject
ives.

Stage3:Merchandi
seinvent
oryplanni
ng:Pl
anni
ngofi
nvent
ory
canbethefoll
owingfourmethods:
 [Link]:Mini
mum amountofst ockshoul
dbe
maintai
nedint
her et
ail
storeatal
[Link]
sshouldbe
fol
l
owedev eni
nt heti
meofl owsales.

[Link]
agev ari
ationmethod:Inventor
yinthestore
shoul
dbealignedwitht heact
[Link]
smet hodisused
whenthestockturnoverratei
smor ethansixti
mesi nay ear
.

[Link]
esrati
omethod:I
tinvol
vest
hemaintai
ningof
theinv
entor
ylev
elsataspeci
fi
crati
otothesal
es.

[Link]
noverr
ate:Theti
meperiodforsuchacalculat
ioni
s
usual
lysi
xmonthoray [Link]
ocktur
noverrat
eisat ool
measurestheef
fi
ciencyofthemanagementofstocks.

Q:5Wr i
teshor tnot esont hef ol l
owi ngconcept s:
a)Pr emi sesManagement
b)Invent or yManagement
Ans.a) Pr emi sesManagement :Managi ngt heoper ationsofar et
ailstore
star tsbydet erminingt het asksper tai
ni ngt othepr emi sesaret obe
per formed.I ti salsonecessar yt ospeci fywi t
ht her esponsi bi
lit
yof
openi ngandcl osingt hest oresl i
eswi [Link] ntsneedt obe
consi der eddet ermi ningt hebusi nesshour sar e: thet argetaudiencef or
thest oreandt heki ndofpr oductar etober etai l
[Link] it
yoft hestor e
premi sesandoft hemer chandi sei nthest orei sequal lyimpor t
[Link]
sizeoft her etailstoreandt helev el ofoper ationsdet erminet hesizeand
l
ev el ofsecur it
yrequi [Link] it
yoft hepr emi sesi snecessar yinorder
toensur et hatmi scr eant sdonotspoi lther etail storeasset [Link]
mer chandi sei sneededt oensur et hatpi l
ferageofmer chandiseis
mi nimal .Al argenumberofr etailersacr osst hewor l
dusespeci al
ly
desi gnedt agsar eat tachedt opr oduct [Link] agsar esensedbyt he
elect ronicdev i
cesspeci all
ydesi gnedt odet ectt hem ar eusuall
yplaced
att hest or eent r
ancesandexi ts.I fanat tempti smadet otaket he
productoutoft hest or ewi thoutr emov ingt heset ags, anal ar
m goesof f,
alertingt hest oreper sonnel .Theot herdev iceusedf ormoni t
oringthe
mov ementofcust omer sandst af fisvideocamer as.

b)I
nvent
oryManagement :
Retai
linvent
orymanagementi stheprocess
andmethodsusedtokeept r
ackofthestocki
naretailbusi
[Link]
methodscont
rolev
eryt
hingfrom or
deri
ng,shi
ppi
ng,receivi
ng,t
racking
i
nv entory, retail t
urn- overandst orage.I nventor yinvol vest het askof
all
ocat i
ngt hemer chandi setov ariousst oresusual l
yr est swi ththe
mer chandi semanagementt [Link] hemer chandi sei sr eceivedat
thest ore,quant ityandot herdet ai
lsl i
kequal it
y ,colour , styleandsi zes
[Link] nt egr alpar tofmanagi ngr etail i
nvent oryatt hest orel evelisto
displaymer chandi secor rectly. Inventor
y
calculations:Someoft her etai
linv entor ytermsusedar e:
Stockt urnov er /i
nv entoryturnov err ate=netsal es/ av er ager etailval
ue
ofinv entor yExpr essedasnumberoft i
mes, t
hisr atioi ndi cat esoftenthe
i
nv entoryi ssol dandr eplacedinagi venper iodoft [Link] etail
ers
alsouset her atiocostofgoodssol ddi vi
dedbyanav er agev alueof
i
nv entoryatcost .Bot hcanbecal culat edf oranyt i
meper iod.
Percenti nv ent orycar ryi
ngcost :(inv entorycar r
y i
ngcostnetsal es)*100
Thei mpor tanceoft hismeasur ehasi ncreasedi nrecenty earswi ththe
ri
sei ninv ent orycar r
y i
ngcostduet ohi ghi nterestr at es.
Grossmar gi nr eturnoni nventory=Gr ossmar gin/av er agev alueof
i
nv entoryEx pr essedi nrupeest erms, theGr ossMar gi nRet urnon
i
nv entory( GMROI )Compar esthemar ginonsal esont heor iginalcost
valueofmer chandi set oy i
eldar etur nonmer chandi sei nv est ment.

Q:6Li standexpl ainsomeoft hemoder nr etai

lf or mats.
Ans. Moder nRet ailFor mat s:Ther etaili
ngf ormati nindiacanbet er med
asar evoluti
onwi thmor eandmor ef ormat sbei ngdef i
nedeachday .The
determi nantsaf fectthef ormatofr etailingar er etailmedi at i
onwi t
ht he
customer ,phy si
cal storagechar acteristicsandmer chandi se
charact eri
[Link] sisbecausecust omerbehav iourint hepur chaseof
goodsv ariesdependi ngupont hef ormati nmer chandi sei smade
available. Stor eformat sandr et ai
l
parlance:St or eformat s;theirpositioninganddi fferentiation
charact eri
sticscr eateadi fferentimagei nthemi ndsoft hecust omer .
Thecat egorisati
onoft her etailf
ormat scanbeont hebasi sofl ocat ion,
design, size,mer chandi se,serv i
ceexper ienceof feri
nget c.
1)St oref ormat sbyl ocat i
onchai nstor ef ormati sownedandoper at ed
byasi ngleor ganisationwi thcohesi vepr omot ionandser vicest rategy
andasy nergisti
cmer chandi si
ngpl an.I far etailst orelocat esitselfin
busyshoppi ngar easi tisknownashi ghst reetf ormatr etailstore.
Independentr etailstoresar elargei nsizeandpr ov i
degoodof fersand
ampl econcessi onsandal sohugepar kingf aci
liti
esar eknownas
dest inat i
onf ormat .Ar etailstorewi t
hqui ckaccessi bil
ityandchoi ceof
wider angeofconsumabl epr oduct sandser vi
cesf oritst arget
cust omer sl ocatedi nacat chmentar eaisknownasaconv eni encest ore
format .
2)St or ef ormat sbyowner ship:Whenar et ai l
st or ei snotoper atedasa
par tofal arger et ailchai nbuti sownedandoper at edbyasi ngleper son
ori npar tner ship, ittakest hef orm ofani ndependentst oref ormat
classi fi
cat [Link] et ailst oref ormi ngapar tofal argerr etail chainowned
andoper atedbyi ndi vidual sunderal i
censi ngagr eementonbehal foft he
l
ar gerr etail organi sat ioni sknownasaf ranchi sef ormat .
3)St or ef ormat sbymer chandi secat egor ies:I napar ti
cul arpr oduct
categor y,ifast or edeal swi thal l mer chandi secat egoriessui tthe
war dr obeofaf ami ly,suchf or mati sknownasaf ami l
yst or [Link]
depar tment alstor e, eachst or ef unct ionsasasepar atest rategic
busi nessuni t
.diff erentt ypeofpr oductcat egor i
esunderoner [Link]
appar el
s, cosmet i
cs, f ragrances, accessor ies, home- war e,el ectronics
[Link] mar ket spr ov idefreeaccessdi spl ay st ocust omer sandgi ve
thel i
ber tyofpi ckingpr oduct sf rom shel vesbasedont hear rayof
product sdi splay edont heseshel v [Link] etai lst oresel l
ingav ari
etyofa
par ti
culargr oupofmer chandi sei sknownasanempor [Link] e
Gar denVar elisar iempor i
um, ar tempor i
um et c.
4)St or ef ormat sbysi ze: Asi ngl e-level l
ar gest or esel li
ngf oodandnon-
foodgoodsi sknownasasuperst [Link] ephar macy ,flowershop,
bookst or eet [Link] ailst oresf orl ei sureact iv it
iessuchasdi ni ng,
ent ertainmentandshoppi ngsel ect edanov eral lmer chandi singpl ani sa
shoppi ngmal l
.Ex ampl eNi l
giris,bangl ore.