MODULE 3
STORE OPERATIONS
Write down your observations regarding the overall Store operations.
ANSWER:-Retailers drop millions of repees per year due to contradictory store-level implementation of their corporate approach. The cost bang of inconsistent execution is between 2-5 percent of annual sales. Uncoordinated corporate planning results in uncertainty and precedence divergence in the stores; lack of two-ways response prevent constant development; store managers are filled to capacity with communication and left to prioritize tasks on their own. Field managers, swamped by a glut of out-of date MIS reports, fight fires reactively as an alternative of providing leadership.
QUESTION:-List out the types of customers generally visited to the Retail Store.
ANSWER:-
In the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers. Most of us are obsessed with making sure our advertising, displays, and pricing are scream out to attract new customers.
In the retail, this idea of focusing on the best current customer should be seen as an on going opportunity. To better understand the rationable behind this theory and to face the challenge, we need to break down shoppers into five main types:-
1. Discount Customer
2. Impulse Customer
3. Need-Based Customers
4. Wandering Customers
5. Loyal Customers
Does the store segment its customers? If yes, on what bases Store segments its customers and if no, what bases will you suggest to store for customer segmentation?
ANSWER:-
Market segmenting is dividing the market into group of individual markets with comparable wants or needs. A retailer segments the market into dissimilar groups who have diverse needs, wants, behavior or who might want diverse products & services.
Demographic Segmentation:- Demographic segmentation are measurable statistic about any given population.
Psychographics Segmentation:- Psychographics simply refer to lifestyle analysis. Psychographic data provides insight into "what consumers do" over a period of days, weeks or even years.
List out the customers loyalty programs of the Retail Store. Which programme, in your opinion, is the most effective loyalty programme.
ANSWER:-
One such method is by way of loyalty program. Sophisticated data mining techniques are available to helps companies study buying patterns, consumer preferences and trends. This is really a useful tool to got business and for managing inventory and supply chain.
- A good customer loyalty program needs to processes the following characteristics.
1. Visibility
2. Simplicity
3. Value
4. Trust
Examine the location of the Store site on the factors such as:
1) Visibility of the store
2) Placement in the Location
3) Availability of Transport
4) Presence of other Store
Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many shoppers but only if those shoppers meet the definition of their target market competition and and neighbours are in other area business in your prospective location can acually helps or hurt your retail shop
Location cost are along with the base rent consider all location-based costs involved when choosin a retail store location
- who pays for lawn care and security
- will the retailer be responsible for property taxes?
Give your suggestions to improve the customer services and service recovery system of the Store.
ANSWER:-
The service recovery paradox is a common phenomenon in business that can result in increased customer loyalty to your brand. Consider this grap. This shows that customers who have experienced service failure and a successful recovery are more loyal over time than those who haven't experienced a service failure.
1. Apologize to the customer.
2. Take ownership of the problem.
3. Get to the root of the issue.
4. Solve the problem.
5. Offer something extra.
6. Follow up with the customer.
Write down your observations regarding visual merchandising of the Store.
ANSWER:-
When people hear visual merchandising, they typically get nervous and uneasy, they know it's an important retail term, but not sure exactly what it is or how to do it well. It can create uncertainity about where to start. If you're artistically challenged and finnancially deprived, creating visually displays can be especially difficult. But here are the five most important elements of visual merchandising. They are easy to implement and won't break the bank, and most importantly, they will increase your sales.
Strong visual merchandising has a huge impact on customer experience in your store.
Compare Store's visual merchandising effectiveness with other stores.
ANSWER:-
Visual merchandising means a visual display of the store. When you enter the store, you'll most likely first get attracted to visual displayed at the store. This can includes aspects like window displays, decor style, fixtures, and many other that give a visual identity of the store.
Today many retailers follow visual merchandising culture in their store to maintain a good brand image-using effective graphics and visual arts with the aim to increase per square foot traffic to the store and boost sales.
Draw the organizational structure of the Retail Store that you have visited/worked.
ANSWER:-Retail organization structure differs according to the type of retailer and the size of the firm. A retailer with a single store will have a completely different structure that a national chain. Owner-manager of a single store may be the entire organization. As sales grow, the owner-manager hires employees. Coordinating and Controlling employees in a small store is easire. The owner-manager simply assigns task to each employees and watches to see that these tasks are performed properly. Each employees must performed properly. Each employees must perform a wide range of activities, and the owner manager is responsible for all management tasks.
QUESTION:-Critically analyse the merchandise display of the Retail Store.
ANSWER:-
Merchandise displays are special presentations of a store's products or services to the buying public. The nature of these displays may range somewhat from industry to industry, but all merchandise displays are predicated on basic principle designed to increase product purchase. Indeed, merchandise displays are an integral element of the overall merchandising. Concept, which seeks to promote product. Sales by coordinating marketing, advertising, and sales strategies formulates:-
1. Store Front Window Displays
2. Showcase Displays
3. Found-Space Displays
List out the methods used by the Store to prevent losses.
ANSWER:-
1. Communicate Watchfulness:- The simplest way to prevent in-person retail loss is by turning your employees into security assets as they're already your eyes and ears on the store front floor! from day one, train all employees to greet guests and make eye contact, and engage with them as they shop.
2. Use Technology to your Advantage:- Even with execellent, alert customer service, the average shoplifter is caught only one in 100 times, proving that traditional retail loss preventions alon won't protect your inventory.
Give your observations about the utilization of the Store space.
ANSWER:-A retailer's selling space is one of its more important assets. While therre are a number of approaches that an be adopted to define the space that is allocated to both products and customer inside the store, it is argued that few approach the problem of space allocation from the point of view of the customer. Many approaches are of tactical rather than of strategic value. A number of space allocation methods are reviewed and an alternative perspective drawn from manufacturing industry, that of operations management, is discussed. An observation survey of retail practice is used to illustrate how concepts from operations management could be applied to retail space allocation.
QUESTION:-What is the Gross Margin Return On Floor Space (GMROF) of the Retail Store.
ANSWER:-
GMROF is one of the most widely used metrics for retail inventory management. It shows how much gross profit per square feet inventory investment brings too the retailer's pocket. The metrics helps to compare product categories, shelf design, department wise layout, and Product display optimizations. The knowledge of retail math is something no retail manager or business owner can do without. If you're still stranger to it, you surely have a low profit margin and thin chances to improve your bottom line.
GMROF = GM / (SALES / SQ. FT) * SALES for corresponding are and time frame.
List out the assets of the Store as per their classification.
ANSWER:-
Assets are generally classified in three ways:-
1. Convertibility:- Classifying assets based on how easy it is to convert them into cash.
2. Physical Existence:- Classifying assets based on their physical existence ( in other words, tangible vs intangible assets ).
3. Usage:- Classifying assets based on their business operation usage/purpose.
What is the average transaction size of the Store.
ANSWER:-
Average transaction size, also known as average ticket size or sales per customer is a metric that is extremely important to all retail business because it directly affects sales revenue. Average transaction size is calculated by dividing total sales for a given period by the total number of transactions for that same period. In other words, teh metric is the average amount your customer spends on merchandise on a shopping trip.
Total sales for a given period / total transactions for the period = average transaction size.
List out the devices which are used by the Store at cash counter or Point-of-Sale.
ANSWER:-A cashier at the retail stores operates a station called cash till or a POS machine. The cash tillis a unit which usually contains a cash drawer with the computer and software attached to a barcode scanner ad EDC Machine. A Point of Sale / Service (POS) machine is used to conduct retail transactions. It can provide many services, including credit card processing, check reading and cash transactions, depending on the model. The technology used in POS machines result in a speedy and secure transaction.
QUESTION:-Write down the promotion mix of the Store. Which component of the promotion mix do you observe the most effective for the store.
ANSWER:-
Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objective.
1. Develop a Promotional Filling System:- Create a promotional folder that includes all of your past promotional direct mail pieces create another for advertising that has a successful track record.
2. Evaluate and Brainstorm:- Now that you have a collection of ideas to brainstorm from, you can go back and evaluate each one.
Compare the promotion mix of the Store with the competitor's promotion mix.
ANSWER:-
A marketing plan is focused on the target market and made up of four key elements. These four elements are also knows as the 4Ps. One P is called the Promotional Mix and it contains advertising, Public Relations, Personal Selling and Sales Promotion. They are used as tools to communicate to the target market and produce organizational sales goals and profits.
The new amusement Park fun town has spent most of this year customizing and fine-tuning their promotional mix.
