MARKETING

ASSIGNMENT

Submitted to:- Submitted by:-

PROF.JOYDEEP BISWAS SAKSHI KUMARI (22202046)

KSOM, BBSR PREETI CHOURASIA (22202042)

SAGARIKA PATTANAYAK (22202045)
 NIKITA DEV (22202038)
ANSHUMAN DAS (22202012)

Q1 Define Retailing. Who is a Retailer?

Selling products or services to ultimate consumers for domestic or commercial usage is referred to
as retailing. Getting the products from the manufacturer or wholesaler and selling them to the
customers is the distribution process. This includes transactions involving modest purchases made
by customers and merchants that are not intended for reselling. Retailer purchases the items at cost
price, adds labour, equipment, and distribution costs, and with a desired profit margin, sells it to the
final customers at a higher price.

A retailer is a person or business that engages in retailing activities.

Q2. What is Organized Retail? What is Modern Trade? Elaborate with examples.
The answer is that the organised retail sector is amalgamated with the relevant government
authority and abides by all the guidelines set forth by these agencies. They have a basic set of
licences before starting any retail stores (trade, labour, shop & establishment). Different acts, such
as the Bonus Act, Factory Act, and Minimum Wages Act, regulate them. In India, 15% to 20% of
retailing is organised. Employees are paid on a regular basis and are also entitled to PF and other
perks. For instance, a department shop, hypermarket, supermarket, or convenience store that sells
goods in a single location and under one roof

Modern trade refers to organised retail that has a reliable distribution, logistics, and inventory
system. Players in contemporary trade include supermarkets, hypermarkets, etc. This entails the
accumulation.

Q3. Explain the following Retail Store formats with examples:

Convenience stores have as their primary goal providing clients with a quick and easy way to buy a
variety of consumable goods. They have a variety of daily necessities.

a. Supermarkets: These are sizable, self-service retail establishments that sell groceries,
recently produced goods, meat, baked goods, and milk products. They also market non-food
items. Prices are relatively lower here, credit is not extended to clients, and the product
display is orderly and appealing. such as Star bazar, Spar, and Reliance Fresh
b. c. Hypermarkets: These are retail establishments created by combining supermarkets and
department stores. Consumers get access to all products under one roof. A hypermarket's
presence may result in bargain prices with profit margins that local rivals would not be able
to maintain. as in big bazar and Walmart
c. d. Specialty Stores: These establishments either sell only one kind of item or concentrate on
a single kind of good. For instance, furniture shops, sporting items, and libraries.
d. e. Department Store - A department store is a type of retail establishment that provides a
wide selection of products in several sections, rooms, and departments. For instance, Dmart,
Reliance Trends, and shoppers stop.
e. f. Off-price Retailer - Off-price shops sell high-quality products at reduced costs. They
typically offer out-of-season and used merchandise.
 Q4. What is a Franchisee Store? Explain with examples.
A franchise store is a company whose owner, in return for a fee, permits or authorises its
activities, goods, branding, and expertise. The store's opening is authorised by the franchisor. For
instance, a number of fast-food restaurants, like McDonald's and Domino's, operate in India
through franchising. The franchisor develops the brand, and the franchisee uses it to do business
while paying the franchisor a royalty.

Q5. What is a Private Label or In-house Brand at a Retail Store? Explain with
examples.
A private label is a store’s/mall’s own private brand. The malls are always tracking the sales data and
the product data and they find out which products are sold out in large numbers. They then open
their own brand in that product category. It could be a contract manufacturing process also. The
retailer controls everything about the product or products. That includes the specs of the product,
how it's packaged, and everything else besides. Tasty treat brand in big bazar.

Q6. What is a Shop-in-shop? Explain with examples.

A retailer A will collaborate with another retailer B to open his own store by utilising B's space in a
shop-in-shop arrangement. Such a design often focuses on products that are different from those of
the primary occupant. A more cost-effective way to reach consumers is provided by this idea, along
with the chance to test out new marketing tactics or venues and enhanced brand exposure and
recognition. Examples: Sephora building stores in shopping centres.

Q7. Explain the following Store Layouts with examples:

A free-flow layout does not use recognisable design features, such as displays or signage, to direct
the user. Because there are no predetermined design principles followed in this retail shop design,
customers are allowed more opportunity to interact with things and navigate independently. In a
store with multiple routes, there is significantly more free space, and other customers' presence
doesn't significantly interfere with each shopper's particular shopping experience.

Q8. What is Visual Merchandising? Explain with examples .

Visual merchandising is the process of putting up interior spaces, product displays, and store window
displays in order to draw customers and increase sales. It involves using lighting, colour, and texture
to create a setting that is aesthetically pleasing and will entice customers to purchase goods or
services. Visual merchandising is an essential component of business since it may help create an
inviting retail experience for clients. It can also be used to strengthen customer loyalty and create a
consistent brand image. Effective visual merchandising can help a store stand out from the
competition and boost sales. Additionally, it can be used to make shopping enjoyable for customers
and persuade them to come back. Signage, window displays, product displays, and other visual.

Visual merchandising examples include Visual merchandising strategies include using appealing
clothes rack layouts, eye-catching window displays, and using mannequins to demonstrate how to
style an item. Technology can also be seen in visual goods like interactive kiosks and digital displays.

Q9. Explain the following terms with images and examples: the following is a solution:
1. Shelving refers to the flat surfaces or shelves that are used to store and display goods in a retail
environment. Shelving, which can be made of a variety of materials such as wood, metal, or plastic, is used
to store and organise products. This makes it simpler for customers to access and be seen.
Examples of shelving include: Wall shelving is a type of shelving that is mounted to the walls of a store and is
usually used to display smaller items like toys, books, and consumer electronics.

2. Hanging: This term refers to the practise of hanging merchandise from hooks or brackets attached to
a shelf, wall, or display unit. Hanging displays are widely utilised in retail settings to emphasise products.

These are some instances of hanging displays: Clothing Racks: This type of hanging rack is usually used to
display dresses, shirts, and pants. Clothing racks typically include adjustable hanging arms that can be
positioned to accommodate different garment sizes. They can be affixed to a wall or stand alone.
3. Pegging: In retail marketing, pegging refers to the process of placing a product in a certain location
within a store in an effort to increase sales. This can be accomplished by hanging the goods from a hook or
positioning it on a certain shelf or fixture. Pegging works to boost a product's chance of being purchased by
drawing attention to it and making it more accessible to customers.
4. Folding is the practise of reducing the size of a product for storage or display reasons. This can be
done by folding clothing, bedding, towels, or other similar items in a particular way to save space and make
them easier to handle.
Examples of retail folding include precisely folding sheets, pillowcases, and other bed linens to save space
and make them easier to display on shelves or in containers. In order to minimise wrinkles and emphasise
the design and pattern of the fabric, bed sheets are routinely folded.
5. Stacking: To maximise space and facilitate presentation, stacking is the process of vertically stacking
objects on top of one another. This is a common retail store strategy, especially when selling common items
like cans, bottles, boxes, and other like goods.
The practise of vertically arranging beverage bottles, such as soda, water, and juice bottles, on shelves or in
bins is known as bottle stacking. Bottle stacking makes it easier for customers to choose products and saves
space.
6. Dumping: In the retail sector, "dumping" is the practise of selling goods at a considerable discount or
below cost in order to quickly get rid of inventory or create room for new things. Businesses frequently
employ this technique to get rid of excess inventory or slow-moving products, and they typically do so
during end-ofseason sales or clearance events.
Clearance sales at the end of the season are an example of dumping in the retail sector. When retailers lower
the pricing of seasonal goods like winter coats, swimwear, and Christmas decorations to make room for new
ones, they experience these price drops.
7. Colour Blocking: This technique involves using colours that are in opposition to one another in a
design in order to create a distinctive, eye-catching result. When two or more colours are used close to one
another, this is referred to as "colour blocking," and it creates a striking contrast that draws the eye and
adds interest to the design.
Retail colour blocking examples include: Home decor: Colour blocking is frequently used in home décor
goods like throw pillows, curtains, and carpets to add a pop of colour and visual interest to a space. An
example of colour blocking might be a throw pillow with a blue back and a yellow front.
8. End-caps: End-caps are substantial display areas that are located at the end of an aisle in a retail
institution. They are also known as end-aisles or end-of-aisle displays. These displays are typically used to
draw attention to new or well-known products, special deals, or seasonal items as shoppers move down the
aisle.
Examples of retail end-caps include: Seasonal advertising: Seasonal goods, such as summer clothes or
Christmas decorations, are displayed and advertised on end-caps.

9. Promotional Aisle: Items that are on sale or taking part in a specific promotion are exhibited in a
special section of a store called a promotional aisle. Promotional aisles are used to draw attention to
products and convince customers to buy them.

Q10. Explain the following retail fixtures with images and examples: a.
Gondola
b. Straight Rack
c. Rounder
d. Four-way hangers
e. Category signage
f. Wall fixtures
g. Floor stickers
h. Stopper
i. Digital signage
j. Point of Sale Material (POSM)

1. Gondola shelving is a kind of free-standing display cabinet used in shops to exhibit merchandise. It has a
metal frame with shelves that are generally made of plastic or wood and is typically set up in an aisle.
Gondola shelving can be used to showcase a variety of things, including groceries, tools, electronics, and
clothing.
2. Straight Rack 2. A straight rack, a kind of retail fixture, is a single, straight row of shelves used to hold
items. This type of fixture is typically used for clothing since it makes it simple for customers to browse
and select items. T-shirts, blouses, and other clothing can be kept and exhibited on a straight rack.

3. Rounders are a specific type of retail display item that are used to show products in curved or rounded
shapes. It is frequently used to display clothing as well as additional accessories, such as jewellery and
hats. The rounder can be used to create a focal point in a shop and provide an attractive way to
advertise items. Rounders include things like jewellery displays, scarf stands, and clothing racks.

4. Four-way hangers are a type of retail fixture designed to hold multiple items in one space. It typically
has two horizontal arms attached to a vertical support in the middle. The arms are positioned at right
angles to one another to form a "four-way" layout. The four-way hanger is widely used to display and
arrange things like clothing, bags, accessories, and other items. It is also used in retail settings to present
things in a more organised manner. A four-way hanger, for instance, might be used by a clothing
business to display things like sweaters, shirts, slacks, and skirts. Customers may conveniently browse
and compare various items in one location thanks to the four-way hanger. The hanger can be used to
hang objects as well.

5. . Category signage is a type of retail fixture that helps shoppers find the products they seek easily and
quickly. Customers may easily locate the department they're looking for by using category signage,
which displays the product categories at a store, such as electronics, fashion, books, etc. Category
signage often consists of labels or signs that are displayed around the store, in product aisles, or at the
 entrance. Examples of category signage include signs with the words "Clothing," "Electronics," or
"Books" printed on them.

6. A wall fixture One application for certain retail fixtures known as wall fixtures is wall displays. They are
widely utilised for items like clothing, gadgets, and literature. Wall fixtures, which are available in a range

of sizes and shapes, can be used to present products in an appealing manner. Among the many wall
fittings are pegboards, slat walls, grid panels, and shelves. Pegboard Accessories Vertical pieces of wood
known as pegboard fixtures have uniformly spaced holes that can be used to hang objects using hooks
or other hanging gear. These kinds of wall fixtures are widely used to showcase clothing, accessories,
and other lightweight items. Slat Wall Fixture: Slat wall fixtures are panels with horizontal gaps that are
used to hang items from specialised slat wall accessories.

7. Floor stickers are self-adhesive labels attached to floors or other surfaces. They are typically used to
direct clients or give them information. They are widely used in retail enterprises to direct customers
and indicate the locations of items and services. For example, a sports goods store might place floor
decals at the entrance to each department to send customers to the right place. Floor decals can also be
used to draw attention to important information, special deals, or other promotional offerings. They
come in a variety of colours, sizes, and forms and may be customised with your own brand or message.

8. Stopper On a shelf, product is securely held in place by a piece of retail furniture known as a stopper. A
metal or plastic component is typically added to the edge of a shelf to prevent items from slipping off of
it. A stopper could be used, for instance, to keep shampoo bottles steady on a shelf. Stopper fixtures can
also be used to create a barrier to keep items organised and segregated.

9. Text, images, and videos are displayed on digital screens as part of digital signage, a type of retail
fixture. It can be used to offer engaging user experiences or inform customers about products and
services, among other things. Examples of digital displays in public areas include airports, malls,
restaurants, and companies. Digital signage can also be used to promote special offers, discounts, and
other promotions. Digital signage can be displayed on kiosks, touchscreens, LED, and LCD screens, to
name a few.

Q11. What is sensory marketing in retail? Explain with examples.

Using the five senses to create associations between a retailer and a customer's feelings and
memories is known as sensory marketing, sometimes known as branding, in the retail industry.

It is most effective when a shopper's sensory experience subconsciously drives a purchase before
reason takes over. Example – Sensory Branding by Starbucks - All Starbucks stores are known for
their very strong smell of freshly brewed coffee. This is because each store must grind its own
coffee beans. This allows the aroma of coffee to waft through the store and hit customers the
moment they walk through the door.
Starbucks ensures that flavors in stores are strong to elicit a sensory response from customers. The
company does this, but has found it more cost-effective to grind the beans, bag them, and ship
them to individual stores.

This gives baristas more time to focus on other tasks. However, Starbucks knows their stores won't
taste the same if they make this change. Instead, they rely on the unforgettable, pleasant, and
lasting aroma that their coffee beans bring to customers in stores around the world to strengthen
customer loyalty and increase sales.

Q12. Explain the following Retailer Profitability terms with examples:

a. Net sales: Total number of sales a business makes minus sales returns, allowances,
discounts, etc.
Total sales: It is the total amount of revenue generated and it is same as gross sales.
Suppose, Gross sales=9000, returns=100, discount=250, allowances=250
Net sales = 9000-250-250-100 = 8400
b. Sales growth is the percentage change in sales of an organization whereas same store sales
growth is the change in revenue of a retail chain outlet over a period of time.
c. Gross margin: It is net sales minus the cost of goods sold.
d. Sales per square foot: It is a KPI of how effectively store space is being utilized for sales. It is
average revenue for every foot of store space. It can be calculated by dividing sales by total
square foot of the store.
e. Footfall: It is the number of people entering a store per day, week, month or year.
f. Conversion rate: It is the percentage of customers who visited a store and end up purchasing
your product or service.
g. Average transaction value: It is obtained by dividing the total sales by the number of
transactions made.
h. Inventory turns: number of times the inventory is sold throughout a month or quarter
i. Days of Inventory: It is the average time a company keeps its inventory before getting sold
out.
j. Product return rate: It is obtained by dividing the number of units returned by the number of
units sold and multiplying by 100 to convert into percentage.
k. Sales by department: It is the total revenue generated by a single department over a period
of time. Sales by category: It tells us about the revenue generated by a particular product
category like for example cigarette revenue in ITC.
l. Accessory sales percentage: It is about the percentage of accessory sales out of total sales.
m. Sales per employee: It is obtained by dividing a companies’ annual sales by the total number
of employees. It is a KPI to measure the efficiency of a business. Employee productivity: One
standard method of measuring productivity is output of the employee per hour of working
time.
n. Gross margin returns on floor space (GMROF): It is the profit returned per square foot of
floor space.
o. Gross margin returns on inventory investment (GMROI) : It is calculated by dividing the gross
margin by the average inventory cost. This ratio is used to analyse firms’ ability to convert
inventory into cash.

Q13. Go the market and find out what are the typical retailer margins in the following categories?
a. FMCG goods – 30%
b. Clothing – 35%
c. Mobile – 5%
d. Car – 15%
 e. Furniture – 40%
f. Jewellery – 40%
g. Electrical equipment – 30%

Q14. Solve the following numerical questions:

a) In a retail store, the profit on a product is calculated as a percent of the retail price to the
customer. This is called margin. If the store pays $8.00 for a music CD and wants to make a 20%
margin, what would the retail sales price need to be?

20% of X = X - $8

 X = $10

b) If the store pays $8.00 for a music CD and wishes a 20% mark-up, what would the sale

price be? 20% of $8 = X - $8

 X = $9.6

c) A shop sold $1 million worth of whoopee cushions, rubber chickens, and other prank items
in its 1,800 sq. ft shop, that company’s sales per square foot would be?

Sales per square foot = $1000000/1800

= 555.55 sales per square foot

d) Your store got 100 visits and 45 of those shoppers completed a purchase. This means your
store’s conversion rate is ___________

Conversion rate = (45/100) * 100

= 45%

e) Let’s say a gift shop’s total monthly sales amount to $35,000 and it processed a total of 418
transactions. Its average dollar per transaction is _______________

Average dollar per transaction = $35000/418

= $83.7 per transaction

f) Let’s say an apparel store’s average inventory is $25,000 and the cost of goods it sold in a
12month period is $100,000. Its inventory turnover is ______

Inventory turnover = COGS/ Average inventory

 = $100000/$25000

=4

g) If you sold 120 widgets and 5 of them were later returned, the product return rate

is__________ Product return rate = (5/120) * 100

= 4.16%

h) Let’s say a bookstore received 500 copies of a thriller novel from the publisher, and sold 95
books after a month. The book’s sell through percentage is _______

% Sell through = (Total sale s/ stock on hand) * 100

= (95/500) * 100

= 19%

i) A retail store has gross margin of $55,000 and an average inventory cost of $30,000. Its GMROI is
______ and that means the store earns _______ for every dollar in inventory.

GMROI = 55000/30000

= 1.83

The store earns $1.83 for every dollar in inventory.

j) Gross dollar margin of $129,500 and an average inventory cost of $83,000. Your GMROI is_____

GMROI = 129500/83000

= 1.56

k) Hudson Shoes reports it had $250K in sales last year and the store is around 8,000 square feet
then you can roughly estimate the sales per square feet to be about _____.

Sales per square feet = 250000/8000

= $31.25 per square feet

l) Joe shoe store sells boots for $100, which he purchases for $75. His gross margin is $25, and the
inventory median value throughout the year is $20. His GMROI then is____________________
GMROI = 25/20
= 1.25

m) Sales= 3112869; Area = 5000 sq. ft; Then the sales per sq. ft. =?

Sales per square feet = 3112869/5000

= 622.57unit currency per square feet

n) Sales = 3112869; Gross margin % = 45%; Area= 5000 square ft. Then returns/square ft/month =?

Assuming that the sales are given per month

Gross margin or returns = 45% of 3112869

= 1400791.05

Returns per square feet for one month = monthly margin/area

=1400791.05/5000

= $280.15

o) If there are 200 employees in a store, out of which 100 do eight hour shift and 50 do a four hour
shift in a day and the rest 50 work for 3 days in a week for eight hours per day and suppose the
employees work for six days in a week, then calculate the number of Full Time Equivalent
Employees.

Total no. of work hours in 6 days = (100*8*6) + (50*4*6) + (50*8*3)

= 7200 hours

Total no. of work hours by a full-time employee for 6 days = (8*6)

= 48 hours

Number of full-time equivalent employees = 7200/48

= 150 Employees