ESSENTIALS OF RETAIL STUDIES
BM0208
Revision
Our last lecture…
Upcoming
 NO tutorial next week (physical hr for ICA)
 Complete tutorial 11 & 12 on own & check
answers on pbwiki
 ICA 4 on 28 Jan (fri), 4.10 pm, LTD 6 (standby at
4pm- will start early if venue available.)
 ICA 3 project results will be released on pbwiki
on 2 Feb, 10am. Option: For review of project,
you may see me at C311 10-11am as a group.
28 Jan (fri), 4.10 pm, LTD 6
Wait outside LT at 4am. Start at 4.10 or 4.15 pm (wait for my
cue)
Place bags here xx
BH & MC
Projector
BH & MC
BG& MD
Place bags here xx
BG & MD
BH & BG - White Question Paper
MC & MD - Green Question Paper
Place bags here xx
Place bags here xx
3
ICA4 Format
 Answer ALL 3 questions (60 marks)
 All Case Studies (3 x 20 marks)
 Total duration is 60 minutes
 The question paper carries a total of 60 marks
and constitutes 30% of your module grade.
RULES OF CONDUCT OF ICA
 1.
You are NOT ALLOWED to turn over the paper until you have been
told to do so.
 2.
You are NOT ALLOWED to communicate with or borrow any material
from other candidates.
 3.
You are to raise your hand if you wish to communicate with the
invigilator.
 4.
You are to remain seated and SILENT until all answer books have
been collected and accounted for.
 5.
If you arrive 30 minutes after the commencement of the ICA, you will
not be allowed to sit for the paper.

 Warning:
Any candidate who cheats or attempts to cheat will be
liable to disciplinary action.
Example : Case Study (20 marks)
"We
shall offer a wide range of well
designed, functional Home
Furnishing products at prices so low
that as many people as possible will
be able to afford them.“
Here in IKEA Singapore, we have
systematically reduced our prices
every year so that we will always be
on the side of the customer. This has
been made possible mainly because
we use the full strength of the IKEA
concept and the IKEA organization
to purchase in large numbers, using
the best supply chain methods to
keep prices low. In the store, we
request that you, the customer, do
your part to shop on your own, and
together, we save.
Adapted from www.ikea.com.sg



(a)
List and briefly explain FOUR (4) functions that
retailers, such as Ikea undertake to increase the
value of the products and services they sell to
consumers.
(8 marks)



(a)
Ans: (4 x 2 mks = 8 mks)
1. Provide assortment of products and services (1 mk)
Ikea provides a wide selection of functional home furnishing
products for customers to choose from (1 mk)
2. Break bulk (1 mk)
Ikea orders in bulk, uses the best supply chain method to keep
costs low. Thus, customers can enjoy low prices. (1 mk)
3. Hold inventory (1 mk)
Ikea helps to store products until customers require them. The
products are mainly flatten and kept in cartons to minimise
storage and costs. (1 mk)
Make sure you
leave blank
4. Provide customer service (1 mk)
between answers.
Ikea encourages self-service so as to keep costs low. However,
Write neatly
they provide customers with tools such as pencil &
measuring tapes. Staff are also stationed in the store to
assist customers. (1 mk)
(b)
Identify and briefly explain THREE (3)
segmentation bases that could be used to segment
the market for Ikea.
(6 marks)
Ans: (any 3 x 2 mks = 6 mks)
1. Demographics (income, family life cycle acceptable) (1 mk)
The products are made affordable to cater to mass
market. They could be the middle income earners or
middle high customers who want to DIY (1 mk)
2. Geographic (1 mk)
The stores are located in suburban areas- Alexandra and
Tampines. Away from the city centres (1 mk)
3. Benefits (1 mk)
The merchandise are well designed and functional (1 mk)
4. Psychographics (lifestyle, personality) (1 mk)
Customer may like the idea of self assembly and enjoy
shopping for home furnishing products (1 mk)
(c) Ikea is a mega store that reaps the unique benefits
of brick and mortar retail experience for consumers.
List SIX (6) of the benefits for its consumers.
(6 marks)
Ans: (6 x 1 mk = 6 mks)
•Browsing
•Touch and feel products
•Personal service
•Cash payment
•Immediate gratification
•Entertainment and social interaction
HIGHLIGHTS
For main paper
(DOES NOT MEAN
OTHER TOPICS ARE EXCLUDED)
Lecture 1 :Intro to Retailing
Nature of change in retailing
 E-tailing
 Price Competition
 Demographic shifts
 Store size : Scrambled
Merchandising
Methods used to categorise retailers
 No. of stores
 Margin vs Turnover (e.g. high margin, high turnover)
 Location
 Size
Types of Retailers – retail formats
Lecture 2 :Retail Industry in Singapore (I)
 New Shopping Malls in S’pore
 Measures taken to develop S’pore into
Shopping & Lifestyle Destination
 Annual Sale Event: GSS
 Government Initiatives to boost Retail
Industry
(GEMS, retail 21)
Briefly
Lecture 3 :Retail Industry in Singapore (II)
Understand 2 recent projects
Integrated Resort
Warehouse retailing scheme
Benefits to Singapore
Economic & community gains
briefly
Lecture 4 :
Retail Industry in Global
Market
 Retail Internationalization
 Outlines Economic & Retail Outlook for Major
Economies (emerging mkts..why so attractive)
 Case Study for Major Players in the Global
Market
 Wal-mart (just read…)
 Tesco (just read…)
Lecture 5 : Retail Strategic Planning
& Operations Management ***
 Understand components of Strategic
Planning:
Goals & Objectives
 Market Performance Objective
 Financial Performance Objective
Strategy
(means of differentiation…)
(major environmental factors…e.g. Consumer Behavior,
A present for you:
NO CALCULATION
REQUIRED
Competitor Behavior, Supply Chain, Socioeconomic, Technological)
 Retail Mix

(Merchandise, Price, Advertising & Promotion, Customer Service,
Layout & Design, Store location)
 Operations Management

. (i.e. buying & handling of merchandise, pricing, advertising & promotion,
customer service, manpower, facilities)
Lecture 6 :Multi-Channel Retailer ***
 Benefits provided by different channels (electronic,
physical store, catalog) *
 Resources Needed to Compete Effectively in
Internet Retailing
 Issues faced by multi-channel retailers
 Disintermediation
Lecture 7: Retail Customers ***
 Population Trends
 Population Growth
 Age Distribution
 Geographic Trends
Understand the
impact on retailing *
 Social Trends

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Education
State of Marriage & Divorce
Makeup of Household
Changing nature of Work
 Economic Trends



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Income Growth
Personal Savings
Women in the labour force
Widespread use of credit cards
Stimulus:
Refers to a cue that is external (cue) to the
individual or a drive that is internal (drive)
to the individual.
Lecture 8 : Competition in Retailing (I) ***
 Retailers compete on 5 major fronts:





The price for benefits offered
Service level
Product selection
Location or access: the overall convenience of the retailer
Customer experience
 Nonprice Decision*




merchandise mix
private label merchandise
other values / benefits
stockkeeping
 Competitive Actions*
 Overstored
 Understored
 Types of Competition*
 Intratype & Intertype
Lecture 9 : Competition in Retailing (II)
Future Changes in Retail
Competition
Nonstore Retailing
New Retailing Formats
Heightened Global Competition
Integration of Technology
Increasing Use of Private Labels
Lecture 10 &11 : Managing the Supply
Chain
 8 marketing functions
 How retailers add value
 Vertical Marketing Channels
 Corporate
 Contractual
 Administered
 Franchising: Advantages & Disadvantages
Lecture 12 : Market Selection & Retail
Location Analysis
 Market Segmentation: measurable, Accessible, substantial
 Is dividing of a heterogeneous consumer population into smaller, more
homogenous groups on demographic, economic, psychographic, and
behavioral characteristics.
 Location of Store-based retailers
 Shopping Centre: Advantages & Disadvantages
(what are anchor stores?)
 Non-traditional Locations





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Naval Base
Office building
Theme park/ Resort
Airport
Hotel
School
 Nonstore-based Retail Formats
Exam Technique
Exam Technique
•Look at the marks allocated
1 mk – identify, list : u can write in point form
if more mks – write in short sentences
•Handwriting
Write clearly, reasonable font size 12
Black or Blue pen (don’t use pencil OR pink pen)
Leave 1-2 between each answer
1 Question 1 Page (start fresh new page)
(if examiner can’t make up what u wrote…. How to award marks? …)
•Answer ALL questions
What if u r Absent for Main paper…
Students who are absent for ICA have to
submit MC
within next 2 working days to your PEM.
Inform Module Co-odinator: Ms GK Lee
Try to take main paper ( u will know why…)
My Advice:
 Study according to the revision
guidelines
Lecture + tutorial
 Make sure u stay healthy and alert
 Plan your study calendar
 Take note of time, venue
 28 Jan (fri), 4.10 pm
(1 hr) reach 10 min earlier
LTD 6
 Take the Main paper!
 Score A!
Alternative Paper:
• No revision
•1/ Feb (tue), 10am, C311
All the BEST!
Good Luck 
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