INDIAN INSTITUTE OF MANAGEMENT BANGALORE
RETAIL MANAGEMENT
Course Instructor :
Number of credits :
Number of sessions :
Dr. Ashis Mishra
3
22
Introduction
The basic objective of any marketing activity is to generate, satisfy and
retain consumers by facilitating production, distribution and consumption
functions of the society. Consequently, any marketing activity is actually a
process consisting of a series of iterative and inter-related steps to effectively
perform the above-mentioned functions. Retailing is one such step in the
marketing chain of activities that facilitates the distribution function. Initially, it was
considered as just another step in the marketing chain and the function was
accepted as obvious. As the competition increased globally, differentiation
became more and more difficult. Consumer’s purchasing power increased as
economy opened up into more market-oriented mode. Retail function being the
most often used and final link with the ultimate consumer, marketers thought of
using it for differentiation and positioning. So, retailing ceased to be considered
as an outgrowth of traditional marketing activity; rather it was recognized as an
important business proposition in its own accord, which ultimately helps
marketing in performing its function and successfully satisfying the objectives.
Therefore, retailing immerged as a discipline and considerable thinking and
research went into it for the development and substantiation. In this course, we
are not trying to repeat retailing as a marketing channel function (it is a part of
distribution management course and marketing 4Ps in Marketing management
course). Rather visualizing the immerging role of retailing business in satisfaction
of marketing objectives, we will try to address some crucial issues that an
entrepreneur / a corporate house faces in the retailing business.
Objectives
1.
To understand retailing as a business in the current environment
2.
To identify and critically analyze the retail business environment
and key business models for their feasibility
To identify key tools and techniques for a successful retail business
(planning)
3.
1
4.
To implement the retail strategy mix in the context of the following :
(significant characteristics of the end consumer, understand its
significance for the retailing business and develop strategies
accordingly)
Instructions :
As the students have completed most of the basic marketing credits and are
aware of the fundamental theories, there will be no repetition of the same.
However, as the basics of any subject always remain the most crucial element,
there would obviously be some extended application. Apart from that, as we are
looking at a business in its entirety rather than a functional application, there
would be some new subject specific theories and cross – functional applications.
So, as participants of this course, you are expected to do an in - depth analysis,
integrate and utilize the concepts in real life scenario. The course would provide
you with macro level broader and comprehensive vision of retail business and
micro level implementable / practicable solutions.
Evaluation Criteria
1.
2.
3.
4.
Quiz
(4 * 10 %) = 40%
Project
(3 * 8 %) = 24%
Case Presentation
10%
Term Paper
26%
=====================================
Total
100%
There would be one quiz per module and all quizzes would be announced.
However, there would be no make up quizzes in case you miss them, nor there
would be any best of 3. Students would be divided into groups of 5 and they
would be doing project, case presentation and term paper in their groups. There
would be group presentation and submission on sessions 11, 12 and 14. There
would be a term paper on one of the topics of retailing management. The list of
topics would be provided by the instructor. The project would involve a multi –
stage rolling project with intermittent submissions throughout the course. It would
be a real life project in which the groups would be assigned a situation as below.
1.
2.
3.
4.
5.
Setting up a totally new store in a highly competitive market
Expansion of an existing store to a different location
Expansion of an existing store to a different format
Change of strategy mix for an existing store to improve its turnover
rate
Change of strategy mix for an existing store to become the leading
player in food and grocery sector
2
6.
Change of strategy mix for an existing store to become a leading
player in the apparel sector
Any MNC / Corporate house opening large number of stores in
multiple locations simultaneously; Develop strategy for a local
player
7.
There would be multiple phases in this project and in each phase each group
would be given one task (viz., customer analysis, competitor analysis, SWOT
analysis, Store format determination, Layout, design and visual merchandising,
supply chain development, merchandise plan, positioning theme, Price and
promotion setting, e – tailing interface etc.) for the situation given above. At the
last stage, each group would be required to give a complete business plan for the
given situation. For each stage there would be different marks and all teams may
not get to do the same task in a given phase. The detailed schedule for the
project, case presentation and term paper would be given by the second week
Books for Readings :
1.
2.
Retail Management : A strategic approach (Berman, Evans)
Retailing Management (Levy and Weitz) Text book
Session Plan
Module 1
Understanding Retail
Dt.14.09.07 Session 1
Retail Business Process
Topics to be covered : Course over view, Retailing Concept, Significance,
Scope, Marketing Interface, Retail Process Model
Pre-reading :
Chapter 1 Text book
Illustration
Purpose
involved
TESCO Business Model
Basic Idea of a Retail business and the decision areas
:
:
Post - Readings :
Serial Type Name
of
No.
the article
1.
Soft Rocket
Science
Retailing is
almost here
… Are you
ready?
Author
M.L.
Fisher,
Ananth
Raman,
A.S.
McClelland
Year
of Publisher
Publication
2000
HBR
Objective
Some
retailing
success
factors
3
2.
3.
Soft
Retail
in
2010 : a
world
of
extremes
Hard From
Branded
Bulldozers
to
Global
Distribution
Partners
Joseph L. 2005
Gagnon,
Julian
J.
Chu
Nirmalya
2006
Kumar
Strategy
and
Leadership
HBSP
book
“Marketing
as
Strategy”
Futuristic
point of view
and generic
frameworks
Marketing ~
Retailing
interface;
Significance
of retailing
Dt.15.09.07 Session 2
Retail format classification system
Topics to be covered :
A model for classification, bases of classification,
different formats, vertical marketing system,
Implication to strategy
Pre-reading
:
Chapter 2 Text book
Illustration
:
Purpose
:
National (Shopper’s Stop, Pantaloon, Trent)
Global (Wal- Mart, Tesco, Carrefour)
Different retail formats and their strategic significance
Post – Readings :
Serial Article name
No.
1.
Wholesale
Classification
Author
Objective
Ashis Mishra
2.
Retail Classification
Ashis Mishra
3.
Non Store based / Ashis Mishra
Non – traditional
retail classification
PPT file aimed at giving a brief idea
of the different wholesale formats
and their strategic significance
PPT file aimed at giving a brief idea
of the different retail formats and
their strategic significance
PPT file aimed at giving a brief idea
of the different non - store formats
and their strategic significance
Dt.21.09.07 Session 3
Distribution Channels
Topics to be covered
:
Case
Purpose
:
:
Channel design, channel management
Natureview Farm (HBS – 2007)
Distribution channel comparison and input for customer
4
driven channel design
Pre - Reading :
Serial Name of the
No.
article
1.
Channel
of
Distribution
:
Issues
in
channel design
and control
2.
Strategic Issues
in Distribution
3.
Reorienting
Channels
Distribution
Author
Robert
Dolan
Year
of Publisher
Publication
J. 1984
HBS
Hirotaka J. 1987
Takeuchi
HBS
V. Kasturi 1994
of Rangan
HBS
Objective
Fundamentals
of Distribution
Channels
Channel
design
Strategies
Multiple
channel types
and
significance
Dt.22.09.07 Session 4
Retail Evolution
Topics to be covered :
Wheel of Retailing, Retail Life Cycle, Scrambled
Merchandising, Theories of retail evolution
Pre-reading
:
Page 72 – 76 Text book
Case
Purpose
:
:
Best Buy (HBS – 1997)
To demonstrate the evolution of a retailing
organization and its competitive strategy
Supplementary Case :
Purpose
:
Circuit City Stores, Inc.: Strategic Dilemmas
(HBS – 2005)
To look at Best Buy from a competitor’s point of view
Post – Reading :
Serial Type
No.
1.
Soft
Name of the
article
The
next
revolution of
the retailing
wheel
Author
Malcolm
P.
McNair
and
Eleanor
G. May
Year
of Publisher
Publication
1978
HBR
Objective
The
way
wheel
of
retailing is
going
to
affect the
retailing
scenario
5
2.
Hard
3.
Soft
4.
Hard
Nineteen
Century
Retailing and
the Rise of
the
Department
Store
The art and
science
of
retail renewal
Best Buy Co.,
Inc.:
Customer Centricity
Richard
S.
Tedlow
1995
K.B.
1997
Burns et.
Al.
Rajiv Lal, 2006
Carin –
Isabel
Knoop,
Irina
Tarsis
Dt.28.09.07 Session 5
Retail Competition
Topics to be covered
:
HBS
The
concept of
Department
store and
its
evolution
McKinsey
Quarterly
Models of
Retail
Evolution
Best
Buy
after 1996
HBS
Strategic Group Analysis
Pre-reading :
Page 72 – 76 Text book
Case 1
Purpose
IKEA invades America (HBS – 2004)
To demonstrate the competition in furniture retailing and the
entry strategy
:
:
Post Reading :
Serial No.
1.
Module 2
Name
of Author
the article
GiLi – The Swapna
making of a Pradhan
super
brand
Year
of Publisher
Publication
2007
TMH
Objective
Illustration
of a retail
organization
evolution
and
its
competitive
strategy
Retail Planning
6
Dt.29.09.07 Session 6
Shopper choice Behaviour
Topics to be covered
:
Shopper decision making process, Factors
influencing shopping behaviour
Pre-reading
:
Chapter 4 Text Book
Post - reading
:
PPT slides attached
Dt.05.10.07 Session 7
Shopper choice Behaviour
Topics to be covered
:
Case
Quiz 1 – Module 1
The science of shopping, Understanding the
buyer’s choice
GOME Electrical Appliances Holding Limited: The “tuangou”
Challenge (ACRC – 2006)
:
Purpose :
To demonstrate the change in behaviour of the customers, retailers’
appreciation of the changed behavioral pattern and the consequent strategy
Post – reading :
Serial Type
No.
1.
Soft
2.
Soft
3.
Hard
4.
Hard
Name of the
article
The
purchasing
behaviour of
Shanghai
buyers
of
processed
food
and
beverage
products
Shopping
redefined :
towards
a
new concept
of retailing
Store
Choice and
Shopping
Behaviour
Knowing
what to sell,
when and to
Author
Year
of Publisher
Publication
Samuel S. 1997
British
Nicholas
Food
Journal
Objective
Bill Webb
A
new
model for
retail
brand
positioning
Influence
of price on
shopping
behaviour
Predicting
customer
behaviour
2000
C. S. Tang, 2001
David
R.
Bell, Teck –
Hua Ho
V. Kumar, 2006
R.
Venkatesan,
IJRDM
CMR
HBS
Factors
affecting
purchase
behaviour
in
Shanghai
7
whom
and
W.
Reinartz
empirically
Dt.06.10.07 Session 8
Layout and Design
Topics to be covered :
Space allocation, store layout, store design
merchandise presentation, visual merchandising,
strategic implications
Pre-reading :
Chapter 18 Text Book
Post - reading :
Serial Type Name
of
the
No.
article
1.
Soft An analysis of
retail
display
space : Theory
and methods
2.
Soft In store customer
behaviour in the
fashion sector :
some emerging
methodological
and
theoretical
directions
3.
Hard Designing Sights
and Sounds
Author
Year
of Publisher
Publication
Evan E. 1979
The
Anderson
Journal
of
Business
Andrew
2003
IJRDM
F.
Newman,
Gordon
R. Foxall
Objective
Vivek
Pareek
Bajaj
Showroom
redesign and
its result
Dt.12.10.07 Session 9
Retail Location
Topics to be covered
:
1999
A&M
Chapter 7, 8 Text Book
Case
Purpose
Filene’s Basement (HBS – 1998)
To demonstrate a store expansion strategy with site
selection
Supplementary case :
In
store
consumer
research and
implications of
consumer
behaviour
Trading Area analysis, Site Selection
Pre-reading :
:
:
A model for
display space
allocation
A Trading Area Turnaround : Mom and Pops are now
facing “Little Boxes” from power retailers
8
Post - reading :
Serial Type
No.
1.
Soft
2.
Hard
3.
Hard
Module 3
Name of the
article
Image
interface
and
Retail
site
selection
Note
on
Store
Location
Author
Year
of Publisher
Publication
David J. 1992
IJRDM
Burns
David E. 1994
Bell
Cortlandt
W.J.
Town Center Poorvu,
A.I.
Segel
2000
HBS
HBS
Objective
Influence
of anchors
on smaller
store
images
How
to
determine
trading
area and
select
sites
Site
selection
issues
Retail Strategy
Quiz 2 – Module 2
Dt.13.10.07 Session 10 Retail Strategy
Topics to be covered :
Concept of sustainable competitive advantage in
retail, Strategy in Introduction stage
Case :
Gome – King of China’s Electrical Appliance Retail
Chain (Ivey – 2006)
Post - reading :
Serial
No.
Type
1.
Soft
2.
Hard
Name of
the
article
The
Retail
Life cycle
Big
Bazaar
Author
Year
of Publisher
Publication
W.
R. 1976
Davidson,
Albert D.
Bates, S.
J. Bass
Ananth
2006
Raman,
Laura
Winig
HBS
HBS
Objective
Concept of
RLC
explained
with
Illustrations
Introduction
strategy of
Pantaloon
with
Big
Bazaar
9
Dt.19.10.07 Session 11 Retail Strategy
Topics to be covered
:
Case 1
Case 2
Case 3
Rise of WALMART Stores 1962 – 1987 (HBS – 2006)
WALMART update 1992 (HBS – 1993)
WALMART update 1997 (HBS – 1998)
:
:
:
Strategy in Growth phase
Supplementary Cases :
The rise of KMART Corporation (HBS – 2006)
Purpose :
A competitive scenario building and understanding of the growth
phase strategy of WALMART
Post - Reading :
Serial Type Name of
No.
the article
1.
Hard Retail
Expansion
Strategies
2.
Soft Growth
Stages of
small
apparel
retail firm
3.
Author
David
Bell
Year
of Publisher
Publication
E. 1994
HBS
Susan S. 2001
Fiorito, K.
M.
Greenwood
Hard WALMART S.
P. 2002
Stores Inc. Bradley,
Pankaj
Ghemawat
Objective
Providing
options of
growth
Journal
of Developing
Small
a
fit
Business
between
Management RLC and
small
apparel
retailers
empirically
HBS
WALMART
business
model
Dt.20.10.07 Session 12 Retail Strategy
Topics to be covered :
Case 1
Case 2
Case 3
:
:
:
Strategy in Maturity phase
L. L. Bean (HBS – 1988)
Mark and Spencer (HBS – 1985)
Sears Roebuck and Company (A) : Turnaround (HBS –
1998)
Purpose
:
To appreciate the inevitable maturity phase of all these
giants and the handling of the maturity phase for greater sustainability
10
Post - Readings :
Serial
No.
1.
Name of the
article
Discovering
new points of
differentiation
Author
Year
of Publisher
Publication
Ian
C. 1997
HBS
MacMillan,
Rita
G.
McGrath
2.
Localization
Darrell K. 2006
Rigby, V,
Vishwanath
HBS
Objective
Differentiate
based
on
customer’s
entire
experience
Reverse
standardization
in
face
of
stagnation
Dt.26.10.07 Session 13 Retail Strategy
Topics to be covered :
Case :
Strategy in Decline phase
Shopfair Supermarkets (A) (HBS – 1985)
Post – Readings :
Serial No.
1.
2.
Name of the
article
Hannaford
Brothers
:
Leading the
grocery
channel
transformation
The
Men’s
Wearhouse :
Success in a
declining
industry
Author
James
McKenny
Jeffrey
Pfeffer
Year
of Publisher
Publication
1995
HBS
Objective
1997
Decline
phase
strategy of
apparel
retailer
Stanford
University
Decline
phase
strategy of
the grocery
retailers
Dt.27.10.07 Session 14 Retail Strategy
Topics to be covered :
Strategy in Entry phase (MNCs as well as Locals)
11
Case 1
Case 2
Case 3
WALMART EDLP in China (ACRC – 2004)
Metro Cash and Carry (HBS – 2007)
Splash Corporation (A) : Competing with the big brands
(Ivey – 2006)
:
:
:
Post - readings :
Serial No.
Name
of Author
the article
Competing Niraj
with Giants Dawar,
Tony Frost
1.
Year
of Publisher
Publication
1999
HBS
Objective
Survival
strategies
for
local
companies
in emerging
markets
Dt.02.11.07 Session 15 Retail Strategy
Topics to be covered:
Retail Positioning
Pre – reading
Chapter 5 Text Book
:
Talbots – A Classic
Case :
Post – reading :
Serial Type Name of
No.
the article
1.
Soft Destination
retailing :
High
volume,
low gross
margin,
large scale
2.
Hard Positioning
Author
3.
Soft
4.
Soft
T.
A. 2000
Henderson,
E. A. Mihas
R.j. Frank, 2004
J.P.
George, L.
Narasimhan
Building
Retail
Brands
When your
competitor
delivers
more
for
less
(pp
Andrew
Wileman
David
Bell
Year
of Publisher
Publication
1993
IJRDM
E. 1994
Objective
Destination
retailing VS
Proximity
retailing
HBS
Fundamentals
of
Retail
Positiong
McKinsey Branding as a
Quarterly positioning
tool
McKinsey Value
Quarterly positioning
strategy
12
5.
27)
The
marketing
directions
of
two
fashion
retailers
Soft
Andrew J. 2004
Newman,
Darshika
Patel
European Strategy
Journal of comparison of
Marketing Topshop and
Gap
Dt.03.11.07 Session 16 Retail Strategy
Topics to be covered :
Readings :
Private Label Strategies
Private Label Strategy : How to meet Store brand challenge
Nirmalya Kumar, Jan – Benedict E.M. Steenkamp
(Would not be provided along the course pack; Students, if interested may
purchase their own copy).
Post - readings
:
Serial Name of the Author
Year
of Publisher
No.
article
Publication
1.
Private labels are W.
J. 1987
HBS
back in fashion
Salmon, K.
A. Cmar
2.
Brands
Vs J
A. 1996
Private labels : Quelch,
Fighting to Win
David
Harding
HBS
3.
Creating
living brand
HBS
Module 4
the N.
Bendapudi,
V.
Bendapudi
2005
Objective
Emerging
acceptance
of
private
labels
Comparison
of
brand
and
Pvt.
Label
advantages
Brand
success
strategies
Retail Support
Dt.09.11.07 Session 17 Merchandise Management
Quiz 3 – Module 3
Topics to be covered : Developing and implementing merchandise plan
Pre-reading :
Case :
Chapter 12 Text Book
Eddie Bauer, Inc. (HBS – 2005)
13
Purpose :
To develop a merchandise plan
Post - readings
:
Serial Type Name of the
No.
article
1.
Hard Note on Retail
Economics
2.
Soft Welcome
to
the new world
of
merchandising
Author
David.
E. Bell
Scott
C.
Friend,
P.H.
Walker
Year
of Publisher
Publication
1995
HBS
2001
Objective
Retail
Financials
A
rigorous
empirical
approach
to
merchandising
HBS
Dt.10.11.07 Session 18 Category Management
Topics to be covered :
Pre-reading :
Case 1
Case 2
Category management
framework
concept,
elements
and
Chapter 12 Text Book
:
:
Post - readings
Merchandising at Nine West Retail Stores
Nolan’s Finest Foods : Category Management
:
Serial Type Name of the
No.
article
1.
Soft From
comodity
marketing to
category
management
:
Insights
from
the
Waitrose
category
leadership
program in
fresh
produce
2.
Soft The use of
category
management
practices to
Author
Year
of Publisher
Objective
Publication
Michael
2002
Supply chain Waitrose
O’Keefee,
Management case
of
Andrew
category
Fearne
management
Kyle
Dupre,
Thomas
W. Gruen
2004
The Journal
of Business
and
Industrial
ECA based
category
management
practices in
14
3.
Soft
obtain
a
sustainable
competitive
advantage in
the
FMCG
Industry
Category
Management
:
a
new
approach for
fashion
marketing ?
Marketing
Belinda
2004
Dewsnap,
Cathy
Hart
USA
and
Germany
European
Proposed
Journal
of application
Marketing
of category
management
to
fashion
retailing
Dt.16.11.07 Session 19 Store management in Retail
Topics to be covered:
Store operations and related issues, Hands on
experience, daily store routine
Pre-reading :
Illustration :
Chapter 17, 19 Text Book
Industry Interaction (Probable)
Post - readings
:
Serial Type Name of the
No.
article
1.
Soft Department
Store
organization
2.
Soft
Author
Year
of Publisher
Publication
James R. 1993
IJRDM
Lowry,
Russell
G.
Wahlers
An
James S. 2001
Journal of
examination
Boles,
Marketing
of
the Barry J.
Theory
relationships Babin,
and
between
Thomas
Practice
retail works G.
environment, Brashear
Salesperson Charles
selling
Brooks
orientation –
customer
orientation
and
job
performance
Objective
Factors
influencing
retail
organization
structure
Relationship
between
three
organization
level
constructs
and
sales
person
orientation in
- store
15
3.
Soft
Service
Christian
orientation of Homburg
a
retailer’s et. al.
business
strategy
:
Dimensions,
antecedents
and
performance
outcomes
2002
Journal of Service as a
Marketing differentiation
tool
–
significant
issues
Dt.17.11.07 Session 20 Store management in Retail
Topics to be covered:
Store operations and related issues, Hands on
experience, daily store routine
Pre-reading :
Illustration :
Chapter 17, 19 Text Book
Industry Interaction (Probable)
Post - readings
:
As before
Dt.23.11.07 Session 21 Customer Service, Retail Experience – Customer
loyalty
Topics to be covered :
Customer service as a strategic tool, Creating unique
customer experience at the retail store, customer
loyalty as a consequence
Case :
Starbucks : Delivering Customer Service (HBS –
2006)
Post - readings
:
Serial Type Name of the
No.
article
1.
Soft The
best
shopping
trip?
How
Tesco keeps
the customer
satisfied
2.
Soft Determinants
of
entertaining
Author
Tim Mason
Year
of Publisher
Publication
1998
Journal of
Marketing
Research
Society
M.F.
2002
Ibrahim, C.
W. Ng
Objective
View of a
Tesco Board
member
about
customer
retention
Journal of Factors
leisure
influencing
property
entertaining
16
shopping
experiences
and their link
to consumer
behaviour
3.
Hard How low will Mary
E. 2006
you go?
Mobley,
John
Humphreys
Dt.24.11.07 Session 22 Retail Pricing
Topics to be covered :
HBR
shopping
experiences
and
patronage
behaviour –
Singapore
case
When does
client
entertainment
cross the line
Quiz 4 – Module 4
Pricing strategy and implementation
Pre-reading : Chapter 15 Text Book
Case
Purpose
:
:
Post - readings
Randall’s Department Stores (HBS – 1994)
Effects of multiple pricing strategies inside one store at the
same time
:
Serial Type Name of the
No.
article
1.
Soft An empirical
analysis
of
determinants
of
retailer
pricing
strategy
Author
V.
Shankar,
R.
N.
Bolton
Year
of Publisher
Publication
2004
Marketing
Science
Objective
Price
determination
model
17