CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
OCTOBER15
ASSESSMENT_CODE BBA405_OCTOBER15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
20249
QUESTION_TEXT
What are the functions of retailing?
SCHEME OF
EVALUATION
Functions of retailing are:
1. Providing an assortment of products and services: Offering an
assortment enables customers to choose from a range of brands, designs,
sizes, colours, and prices at one location. All retailers offer an assortment
of products, but they specialise in the assortment they offer.(2 marks)
2. Breaking bulk: To reduce transportation costs, manufacturers and
wholesalers typically ship large cartons of products. Retailers then break
the combination of huge quantity of products and offer them in smaller
quantities to the consumers according to their consumption patterns.(2
Marks)
3. Holding inventory: A major function of retailers is to keep inventory
that is already broken into user-friendly sizes to ensure availability of
products when consumers want them. By maintaining inventory, retailers
provide a benefit to consumers – they reduce the consumer’s cost of
storing products. (2 marks)
4. Providing services: Retailers offer various types of services- credit
service, display service, sales personnel service, home delivery service,
complaints handling and after sales service
5. Acting as channel of communication: Retailers act as channel of
communication and information between the wholesalers or suppliers
and the consumers.(2 marks)
6. Transporting and advertising: Manufacturers use retailers to
provide assistance with transport, storage, advertising and pre-payment
of merchandise.
7. Increasing the value of products and services: Provide the customer
the goods that he needs in the required assortment, at the required place
and time.
8. Providing promotional support: Small manufacturers use retailers to
provide assistance with transport, storage, advertising, and pre-payment
of merchandise.(2 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
20252
QUESTION_TEXT
What are the stages involved in the merchandise planning
SCHEME OF
EVALUATION
Stages of Merchandise planning:
1. Developing sales forecast( 5 marks )
Sales forecasting is made based on the targets and inputs given by the
top management. Sales forecasting enables to determine the inventory
needs for a particular product or category.
Process of developing sales forecast
1.Reviewing past sales
2.Analyzing the changes in economic conditions
3.Analysing the changes in the sales potential
4.Analysing the changes in the marketing strategies of the retail
organisation and the competition
5.Creating the sales forecast
2. Determining merchandise requirements( 2 marks )
The levels of planning merchandise
a.Creation of merchandise budget: Merchandise budget is referred to as
a financial plan that indicates how much to invest in product inventories,
usually stated in rupees per month. Earmarking of merchandise budgets
is considered to be a vital component of the planning phase.
b.Assortment plan: An assortment plan is a description of items a retailer
would like to have in his store in a particular merchandise category.
Planning merchandise assortment is a significant part of a retailer’s
financial success.
3. Merchandise inventory planning:
( 3 marks )
Planning of inventory can be made by using any one of the following
four methods.
a. Basic stock method
b.The percentage variation method
c.Stock to sales ratio method
d.Stock turnover rate
QUESTION_T
YPE
DESCRIPTIVE_QUESTION
QUESTION_ID 125564
QUESTION_TE
Briefly describe various retail formats and types with suitable examples.
XT
SCHEME OF
EVALUATION
Various retail formats are:
1.
Store retail format
a) Convenience store: It is generally well situated, food oriented
store with long operating hours and limited number of items. Example: Circle
K, SPAR
b) Supermarkets: Diversified stores which sell a broad range of food
and non-food items. Examples: Food World, Nilgiris
c) Departmental stores: Consists of several product lines, typically
clothing, home furnishings, house hold goods. Example: Ebony, Shoppers
Stop
d) Speciality store: This has a narrow product line with a deep
assortment. Example: Music World, Pizza Hut, Tanishq
e) Hyper markets: It is special kind of combination store which
integrates an economy supermarket with a discount department store.
Example: Carrefour, Tesco
f) Mom and pop stores: These are family owned businesses catering
to small sections of society. Very common in India and called ‘Kirana Stores’
g) Category killers: These are small speciality stores that have
expanded to offer a range of categories. Example: RUs
h) Malls: These are largest form of retail formats. Provide mix of all
kind of products and services, food and entertainment under one roof.
Example: TDI mall in Delhi, Sahara Mall
i)
Discount store: Stores o factory outlets that provide discount on
the MRP items. Examples: discount sporting goods store, electronic stores.
j)
Off-price retailer: merchandise bought at less than regular
wholesale prices and sold at less than retail prices. Examples: stores with
discount sales
k) Superstore: About 35,000 sq.ft of selling space traditionally
aimed at meeting consumer’s total need of routinely purchased food and nonfood items.
(7 Marks)
2.
Non store retail format
a) E-tailers: These are retailers that provide online facility of buying
and selling products and services via internet. Examples: Amazon.com,
Ebay.com
b) Vending: Offering smaller products such as beverages and snacks
through vending machines. Not common in India.
c) Catalogue retailing: Sell products by offering the available
products through catalogues.
d) Direct selling: Involves contacting the end customers personally
at home or work place. Example: Amway and
Modicare.
(3 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
167288
QUESTION_TEXT
Explain the various strategies used by the firms
1. Market penetration strategy
2. Market development strategy
SCHEME OF EVALUATION 3. Product development strategy
4. Combination strategy