Motivation : To increase productivity of staff

Staff Motivation To increase
productivity of staff

As every
employee has different type of motivation which appeals them the most. For ex.
Few employee can be motivated by money, other can be motivated by Appreciation, Personalized care, some employee can be motivated by giving challenging job or
by promoting him to different level. You need to identify staff behavior and
should give appropriate motivation so that you can keep employee motivated at
all time.

Different
type of motivation which you can do

1. Giving/assigning challenging
   job.
2. Appreciating Employee for doing
   something better on a weekly basis (appreciate staff in front of other
   employee)
3. Giving trophy/ gift as a sign
   of appreciation in front of other staff
4. You as a owner work with them
   and try to understand their difficulties.
5. Show sympathy with their family
   personal problem and try to help them in their personal problem.
6. Monthly or quarterly picnic or
   hotel visit with entire staff. Where owner is also present with them
7. Once in a year owner visit
   staff home to have some personal relation.
8. Owner eats from the Tiffin of
   employee or shares their food with employee.
9. Observe every staff on a daily
   basis with care and try to find which employee is looking dull today. Try to
   talk with him and try to motivate so he makes a better sale in store.
10. Light aroma (good smell) in
    store also gives positive waves in the mind of people and staff can work with
    better mind and energy.
11. Staff should not be sick or
    tired otherwise staff will not work with full potential.
12. Give enough time to staff to
    rest and take food.
13. Sometime (every quarter) if you
    give half day leave to staff without his requirement can also give better
    result in staff productivity.
14. If you provide surprise gift or celebrate
    their birthday in store (cake cutting in store on last day of month for all the
    employee who have birthday in that month)
15. Creating pressure on staff to
    perform by giving additional duty of store and ask him to perform and if you
    are able to perform then you will be promoted.

Why we need
to motivate staff

If you compare
owner and staff then owner is always energetic because if store will perform
then he will earn good profit so he is always motivated to increase sales &
profit. So profit or Number of store is a motivating factor for your store.

But what in case
of employee?  Even if they are working on
commission then also they will earn limited income as compare to you. And
remember your staff daily perform routing activity which is monotonous and
boring.

Your staffs have
to manage family in limited income so he is always in pressure even at work and
can not work with full mind.

So in that cases
we always need to keep our staff motivating by various ways as described above.

For few staff
money is not an issue they wants good position like store manager and are able
to deliver. In this case even if you give good salary but keep him as a sales
man then he will not be happy. You have to identify person and treat them
accordingly.

Second most
important issue is lack of communication between owner & staff.

Owners have made
a mind that Mr saiyad (sales man) is very good staff and i will observe him for
next 3 month then i will promote him. Or owner is planning to open second shop
and want Mr Saiyad to become branch manager in future.

But owner never
share such idea with Mr saiyad that I am planning such thing for you. And if
you will perform and if you will give 20% rise in sales of this store in next 3
month then you will become Branch manager of my new branch with 3,000 Rs of
increment.

So it is also
necessary that Vision, Mission made by owner has to be shared with staff. And
it is important that your staff also work for achieving the same vision and
mission.

Staffs are
demotivated due to following reason

• Personal or family reason/
  problem.
• Lack of money to meet expenses.
• Child future.
• Position which he cannot show
  in society.
• Demotivation or miss behavior by owner.
• Lack of clarity related to
  future opportunity.
• Monotonous (routine) job.
• Long working hour which result
  in to less time to family.
• Lack of innovation or new thing
  in life.
• Threat of Future security.
• Subordinate are not co operating
  Or are harassing him.
• Lack of holiday or leave at the
  time required by family.
• Uncertain income.

via Blogger http://ift.tt/2n2q9CZ

Motivation : To increase productivity of staff

Staff Motivation To increase
productivity of staff

As every
employee has different type of motivation which appeals them the most. For ex.
Few employee can be motivated by money, other can be motivated by Appreciation, Personalized care, some employee can be motivated by giving challenging job or
by promoting him to different level. You need to identify staff behavior and
should give appropriate motivation so that you can keep employee motivated at
all time.

Different
type of motivation which you can do

1. Giving/assigning challenging
   job.
2. Appreciating Employee for doing
   something better on a weekly basis (appreciate staff in front of other
   employee)
3. Giving trophy/ gift as a sign
   of appreciation in front of other staff
4. You as a owner work with them
   and try to understand their difficulties.
5. Show sympathy with their family
   personal problem and try to help them in their personal problem.
6. Monthly or quarterly picnic or
   hotel visit with entire staff. Where owner is also present with them
7. Once in a year owner visit
   staff home to have some personal relation.
8. Owner eats from the Tiffin of
   employee or shares their food with employee.
9. Observe every staff on a daily
   basis with care and try to find which employee is looking dull today. Try to
   talk with him and try to motivate so he makes a better sale in store.
10. Light aroma (good smell) in
    store also gives positive waves in the mind of people and staff can work with
    better mind and energy.
11. Staff should not be sick or
    tired otherwise staff will not work with full potential.
12. Give enough time to staff to
    rest and take food.
13. Sometime (every quarter) if you
    give half day leave to staff without his requirement can also give better
    result in staff productivity.
14. If you provide surprise gift or celebrate
    their birthday in store (cake cutting in store on last day of month for all the
    employee who have birthday in that month)
15. Creating pressure on staff to
    perform by giving additional duty of store and ask him to perform and if you
    are able to perform then you will be promoted.

Why we need
to motivate staff

If you compare
owner and staff then owner is always energetic because if store will perform
then he will earn good profit so he is always motivated to increase sales &
profit. So profit or Number of store is a motivating factor for your store.

But what in case
of employee?  Even if they are working on
commission then also they will earn limited income as compare to you. And
remember your staff daily perform routing activity which is monotonous and
boring.

Your staffs have
to manage family in limited income so he is always in pressure even at work and
can not work with full mind.

So in that cases
we always need to keep our staff motivating by various ways as described above.

For few staff
money is not an issue they wants good position like store manager and are able
to deliver. In this case even if you give good salary but keep him as a sales
man then he will not be happy. You have to identify person and treat them
accordingly.

Second most
important issue is lack of communication between owner & staff.

Owners have made
a mind that Mr saiyad (sales man) is very good staff and i will observe him for
next 3 month then i will promote him. Or owner is planning to open second shop
and want Mr Saiyad to become branch manager in future.

But owner never
share such idea with Mr saiyad that I am planning such thing for you. And if
you will perform and if you will give 20% rise in sales of this store in next 3
month then you will become Branch manager of my new branch with 3,000 Rs of
increment.

So it is also
necessary that Vision, Mission made by owner has to be shared with staff. And
it is important that your staff also work for achieving the same vision and
mission.

Staffs are
demotivated due to following reason

• Personal or family reason/
  problem.
• Lack of money to meet expenses.
• Child future.
• Position which he cannot show
  in society.
• Demotivation or miss behavior by owner.
• Lack of clarity related to
  future opportunity.
• Monotonous (routine) job.
• Long working hour which result
  in to less time to family.
• Lack of innovation or new thing
  in life.
• Threat of Future security.
• Subordinate are not co operating
  Or are harassing him.
• Lack of holiday or leave at the
  time required by family.
• Uncertain income.

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The 5 Secrets to Growth No One Talks About

Imagine if the Beatles sang, “She appreciates you”.

Imagine if Steve Jobs said “Apple is just a job, I don’t care much about it”.

Imagine if Richard Branson said “I don’t want to risk losing money, it’s too dangerous”.

We’d all be living in a world with less role models, and yes… a little less love.

With more markets and more competition, business owners and startup founders try to out-do each other with the next big idea or product. There’s so much struggle to succeed that it becomes difficult to see the forest for the trees.

So the only thing that will keep you going, in the darkest or brightest of days is the love of it all. However, a desire to succeed isn’t enough. Knowing what to do with success when you finally get it is equally as important.

1. Have the 3 components of passion

• the what is the work you are passionate about. It could be art, selling or writing code. Yet to be a successful you must also embrace the bad stuff – the pitching, the borrowing, contract negotiations, damage control – you name it. If all that doesn’t kill your passion, then, maybe you’ve picked the right one.
• the why is the reason why you do something – and loving what you do isn’t as important as loving why you do it. For example, you may not like sitting in on endless meetings and coordinating email messages, yet being vehemently passionate about solving water shortages in developing countries could make it all worth it.
• the how is your unique touch. Maybe it’s striving for excellence, the attention to detail or love of people that shines through your work. Offering personal customer service, a better product, or a more interesting option. Ultimately, it translates to good word of mouth and opens a door to multiple opportunities.

2. Look where the market is going

We usually look for products or services to improve our lives, not to add to stress and confusion. Unfortunately, products fall short of expectations, and many end up on the chopping block.

Giants like Firestone, Kodak and Blockbuster couldn’t hold on to their market share as their competitors came out with a better product. But those who came out on top literally had to “move mountains” – they had to innovate.

When you innovate, you improve in more ways than one. You become more productive, more responsible, more aware and most importantly, you’re moving forward. And everyone wants to be part of the next best thing instead of someone who’s only interested in cutting costs or preserving the status quo.

3. Make improvement a part of culture

No one person is responsible for growth – not the mythical growth hacker, at least. It all starts and ends with the team. Yet we easily dismiss change (and do a good job at justifying why we do it):

• we can’t see the results today
• we don’t support or value innovation
• we cannot find good ideas to implement
• we cannot easily measure our success

The problem becomes an organizational one – an inability to make certain behaviors and actions stick. Inability to make certain actions routine. Instead, you should be making connections, embracing trial-and-error, interacting with others to share and learn. It’s only when a company embraces these crucial management structures can change take place.

Leaders that understand this will produce enough ideas (and naturally, some blunders) but also stumble upon an occasional winning combination. This process depends on careful planning, management and constant measuring in order to achieve the desired result.

4. Embrace customer feedback

Customer feedback gives companies a solid base to start with – it’s the “glue” that keeps innovation going, instead of being a one-time thing. It’s also something that engages customers and gives them a voice during product development.

• Customers don’t always tell you what they want in words 
  When customers want something they won’t tell you directly, you’ll need to pick up on the cues. For example, many SaaS companies have onboarding surveys which ask what the intended use of their product is. When too many people select “other”, it’s an opportunity to delve deeper and learn if there’s any unmet expectations.
• Customers can help you fix problems you didn’t know you had 
  Before you start working on a new feature, you need to be certain that it’s something your customers really need. When customers aren’t reaching their desired objectives, reach out to them and make notes. Is it difficult for them to upload an image? Maybe it’s a good idea to develop a feature to display that data in-app.
• Consider things that you do or don’t do after knowing customer feedback 
  Knowledge is power. Acting on data is just as important as not acting on it – and the same rings true when it comes to customer feedback. If an idea is based on opinion, has a negative impact on team or operations, shelf it. If it uncovers dissatisfied customers, checking company communication should take precedence over product changes.

5. Create a reward mechanism

When coming up with rewards for innovative milestones, it’s best to keep them low-key and inexpensive.

Why?

Breakthrough ideas are rare (or rarely implemented in their full form). Allocating rewards based on the value of ideas has been counter-productive, according to one HBR study from 2013. Excessive rewards for ideas (whether it’s on the employee or customer side) can stifle productivity, reduce mechanisms for idea generation and even reduce their quality.

And sometimes, rewards aren’t as effective as simple acknowledgement from management. The same study revealed that as employees competed with others to get their ideas heard, large volumes of suggestions failed to garner enough attention from management. In turn, employees would opt against suggesting ideas the next time around.

Success isn’t rocket science.

It’s a series of calibrated steps in combining your passions, knowledge of the market and embracing constant improvement. It’s listening to customers and rewarding good behavior. It’s absolutely loving what you do and having the will to see your business at its best. That’s a lot of love.

Credit: Vitaliy Verbenko, Business Development at Helprace

via Blogger http://ift.tt/2B0j9te

The 5 Secrets to Growth No One Talks About

Imagine if the Beatles sang, “She appreciates you”.

Imagine if Steve Jobs said “Apple is just a job, I don’t care much about it”.

Imagine if Richard Branson said “I don’t want to risk losing money, it’s too dangerous”.

We’d all be living in a world with less role models, and yes… a little less love.

With more markets and more competition, business owners and startup founders try to out-do each other with the next big idea or product. There’s so much struggle to succeed that it becomes difficult to see the forest for the trees.

So the only thing that will keep you going, in the darkest or brightest of days is the love of it all. However, a desire to succeed isn’t enough. Knowing what to do with success when you finally get it is equally as important.

1. Have the 3 components of passion

• the what is the work you are passionate about. It could be art, selling or writing code. Yet to be a successful you must also embrace the bad stuff – the pitching, the borrowing, contract negotiations, damage control – you name it. If all that doesn’t kill your passion, then, maybe you’ve picked the right one.
• the why is the reason why you do something – and loving what you do isn’t as important as loving why you do it. For example, you may not like sitting in on endless meetings and coordinating email messages, yet being vehemently passionate about solving water shortages in developing countries could make it all worth it.
• the how is your unique touch. Maybe it’s striving for excellence, the attention to detail or love of people that shines through your work. Offering personal customer service, a better product, or a more interesting option. Ultimately, it translates to good word of mouth and opens a door to multiple opportunities.

2. Look where the market is going

We usually look for products or services to improve our lives, not to add to stress and confusion. Unfortunately, products fall short of expectations, and many end up on the chopping block.

Giants like Firestone, Kodak and Blockbuster couldn’t hold on to their market share as their competitors came out with a better product. But those who came out on top literally had to “move mountains” – they had to innovate.

When you innovate, you improve in more ways than one. You become more productive, more responsible, more aware and most importantly, you’re moving forward. And everyone wants to be part of the next best thing instead of someone who’s only interested in cutting costs or preserving the status quo.

3. Make improvement a part of culture

No one person is responsible for growth – not the mythical growth hacker, at least. It all starts and ends with the team. Yet we easily dismiss change (and do a good job at justifying why we do it):

• we can’t see the results today
• we don’t support or value innovation
• we cannot find good ideas to implement
• we cannot easily measure our success

The problem becomes an organizational one – an inability to make certain behaviors and actions stick. Inability to make certain actions routine. Instead, you should be making connections, embracing trial-and-error, interacting with others to share and learn. It’s only when a company embraces these crucial management structures can change take place.

Leaders that understand this will produce enough ideas (and naturally, some blunders) but also stumble upon an occasional winning combination. This process depends on careful planning, management and constant measuring in order to achieve the desired result.

4. Embrace customer feedback

Customer feedback gives companies a solid base to start with – it’s the “glue” that keeps innovation going, instead of being a one-time thing. It’s also something that engages customers and gives them a voice during product development.

• Customers don’t always tell you what they want in words 
  When customers want something they won’t tell you directly, you’ll need to pick up on the cues. For example, many SaaS companies have onboarding surveys which ask what the intended use of their product is. When too many people select “other”, it’s an opportunity to delve deeper and learn if there’s any unmet expectations.
• Customers can help you fix problems you didn’t know you had 
  Before you start working on a new feature, you need to be certain that it’s something your customers really need. When customers aren’t reaching their desired objectives, reach out to them and make notes. Is it difficult for them to upload an image? Maybe it’s a good idea to develop a feature to display that data in-app.
• Consider things that you do or don’t do after knowing customer feedback 
  Knowledge is power. Acting on data is just as important as not acting on it – and the same rings true when it comes to customer feedback. If an idea is based on opinion, has a negative impact on team or operations, shelf it. If it uncovers dissatisfied customers, checking company communication should take precedence over product changes.

5. Create a reward mechanism

When coming up with rewards for innovative milestones, it’s best to keep them low-key and inexpensive.

Why?

Breakthrough ideas are rare (or rarely implemented in their full form). Allocating rewards based on the value of ideas has been counter-productive, according to one HBR study from 2013. Excessive rewards for ideas (whether it’s on the employee or customer side) can stifle productivity, reduce mechanisms for idea generation and even reduce their quality.

And sometimes, rewards aren’t as effective as simple acknowledgement from management. The same study revealed that as employees competed with others to get their ideas heard, large volumes of suggestions failed to garner enough attention from management. In turn, employees would opt against suggesting ideas the next time around.

Success isn’t rocket science.

It’s a series of calibrated steps in combining your passions, knowledge of the market and embracing constant improvement. It’s listening to customers and rewarding good behavior. It’s absolutely loving what you do and having the will to see your business at its best. That’s a lot of love.

Credit: Vitaliy Verbenko, Business Development at Helprace

via Blogger http://ift.tt/2B0j9te

Retail Formats Classification, Key Features, Advantages and Disadvantages

Retail Formats

(Classification, Key Features, Advantages and Disadvantages)

Retail Formats can be classified into the following categories:

Store Based: Store based formats can be further classified into two formats based on the basis of Ownership or Merchandise offered.

Non Store Based Classification: Non Store retail organizations focus on establishing direct contact with the consumer. This may be both personal (direct personal selling) and nonpersonal TV, the Internet, mail, catalog or phone).

Service Based Classification: Such retailers specialize in providing different kinds of services to the end consumer. The services can be classified as Banking Services, Rentals, Electricity, cooking gas, etc. Various factors like quality of service, how much customization can be provided for meeting the client specific requirements, the uniqueness of the service and delivery within the timelines, usage of innovative technology, etc, are given importance for determining the success of service.

Classification of Retailers on the Basis of Ownership

1. Sole Proprietorship: This constitutes the majority as many small business ventures start on a sole proprietorship basis only. In the case of sole proprietorship, the ownership of the business exists with a single person, usually the one who is responsible for the day to day affairs of running the business.
2. Partnership: This is also one of the most common business formats in India. In Partnership form of business, the ownership is shared between two or more people for running the business.
3. Joint Venture: A Joint venture involves the creation of a third or a new entity due to collaboration between two or more than two parties, with an agreement to manage the business operations in a particular area by combining their resources and sharing their profits as per the well-defined terms and conditions of the contract.

Key Features of Chain Stores: When 4 or more than four stores manage the same merchandise under the central ownership and usually receive their supplies from a central warehouse. The Chain stores in Europe are equally called as Multiple Shops, unlike America where it is regarded as Chain Stores. The main objective of Chain Store system is to approach the maximum number of customers by expanding operations across a larger territory, but with a concentration on selling the same merchandise.

In Indian context organizations such as BATA and Usha Lexus operate chain stores across the country. These organizations offer varieties or various model variants of a single product, and the buying is centralized, but selling is decentralized.

Salient Features are given below

• A retail system to be considered as a Chain store should have more than 1 retail store engaged in the same merchandise and being operated with a moderate degree of centralization.
• The focus is on horizontal expansion by establishing multiple stores for reaching maximum customers across various geographies.

Advantages of Chain Stores

• Chain Stores enjoy cost advantages due to the economy in purchase operations, low advertisement expenditures and low selling prices of the products.
• The risks are distributed as a result of which the possibility of losses is minimized.
• Delinquency, bad debts and the complexities in the processes of accounting can be avoided since the chain stores operate on the basis of cash.
• Chain stores need not be established in costly or prime locations and enjoy flexibility in their style of operation.

Limitations of Chain Stores

• The claim that the products in chain stores are sold at lower prices is false.
• Practically chain stores are inflexible as the chain stores specialize in offering standardized products only.
• Chain stores face a lot of personnel issues due to the complexities of a large-scale business operation.
• Chain stores run a perennial risk of losing the brand image because various customer-centric initiatives are not being given that much importance. But the customers in the present scenario look for several other benefits regarding services.
• Chain Stores enjoy cost advantages due to the economy in purchase operations, low advertisement expenditures and low selling prices of the products.
• The risks are distributed as a result of which the possibility of losses is minimized.
• Delinquency, bad debts and the complexities in the processes of accounting can be avoided since the chain stores operate on the basis of cash.
• Chain stores need not be established in costly or prime locations and enjoy flexibility in their style of operation.

Features of Departmental Stores

Departmental Stores can be either classified on the ownership basis or income groups. The key features of Departmental Stores are given below:

• Departmental stores perform operations in an integrated manner all under the single roof.
• Departmental stores are multi leveled retail outlets operating on a large scale at the international level, national level and locally as well, offering a variety in their merchandise. In India, the major national players operating departmental stores are Westside, Shoppers Stop, Lifestyle, etc. While the local players Meena Bazaar of Hyderabad and Ebony in Delhi.
• The key criterion which determines the success of a departmental store is the location in which it operates and also other factors like store size, space availability, the area which is being targeted and crucial issues such as the potential of the store in attracting the customers.

Advantages of Departmental Stores

• Departmental stores enjoy the benefits of economies of scale and also cost advantages due to its large scale operation. Usually, the purchases are done in bulk or large quantities as a result of which special concessions can be availed on the purchases.
• Departmental stores usually have ready availability of cash in liquid form, which provides an advantage of procuring quality goods at affordable prices along with special discounts/concessions and keeping a reserved stock for meeting the growing demands of the customers and enjoying a business advantage.
• Customers usually get attracted towards the departmental stores for their buying requirements due to the availability of a variety of products under a single roof.

Disadvantages of Departmental Stores

• The overall costs and expenses involved in the operation of the departmental stores are very high.
• The element of personal involvement or maintaining client relationship is found to be lacking in the case of departmental stores.
• The departmental stores always run the perennial risk of incurring heavy losses or damages.
• The staff members are usually poor qualified and lack the requisite competencies or the training for dealing with the day to day business affairs or addressing the challenges involved in the business.

Features of Super Markets

• Supermarkets operate on a large scale basis and are the self-service kind of stores which may be entirely operated by the owner or may lease some of the departments on concessional rates.
• These stores are usually located in prime shopping locations where facilities for the parking are available.
• The key hallmarks of supermarkets are the availability of a variety of merchandise and branded products, affordable prices and availability of parking facility.

Advantages of Super Markets

• Supermarkets offer convenience in shopping, and the customers enjoy the benefit of buying their preferred products by selecting from a variety.
• The supermarkets sell products at affordable prices.
• The customer’s shopping time is considerably reduced.

Disadvantages of Super Markets

• Supermarkets incur heavily on administrative and maintenance expenses.
• Service aspects are usually ignored in this model of retail.
• The store operation costs are very high.

Advantages of Direct Selling

• Direct selling also called as home selling involve an element of a personal touch as the customers can establish a contact with the sales representative and discuss their buying requirements or clarify their queries.
• The consumers enjoy the benefit of purchasing the products as per their convenience either at home or any other location of their choice.
• The role of the seller is very crucial in case of direct selling as the seller can personally demonstrate the products before the consumer and influence them for the purchase by trying out persuasive skills.

Limitations of Direct Selling

• Managing the administrative requirements, determining the sales commissions for the sales agents, determining the terms and conditions of work (part time or full time) may involve heavy costs.

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Retail Formats Classification, Key Features, Advantages and Disadvantages

Retail Formats

(Classification, Key Features, Advantages and Disadvantages)

Retail Formats can be classified into the following categories:

Store Based: Store based formats can be further classified into two formats based on the basis of Ownership or Merchandise offered.

Non Store Based Classification: Non Store retail organizations focus on establishing direct contact with the consumer. This may be both personal (direct personal selling) and nonpersonal TV, the Internet, mail, catalog or phone).

Service Based Classification: Such retailers specialize in providing different kinds of services to the end consumer. The services can be classified as Banking Services, Rentals, Electricity, cooking gas, etc. Various factors like quality of service, how much customization can be provided for meeting the client specific requirements, the uniqueness of the service and delivery within the timelines, usage of innovative technology, etc, are given importance for determining the success of service.

Classification of Retailers on the Basis of Ownership

1. Sole Proprietorship: This constitutes the majority as many small business ventures start on a sole proprietorship basis only. In the case of sole proprietorship, the ownership of the business exists with a single person, usually the one who is responsible for the day to day affairs of running the business.
2. Partnership: This is also one of the most common business formats in India. In Partnership form of business, the ownership is shared between two or more people for running the business.
3. Joint Venture: A Joint venture involves the creation of a third or a new entity due to collaboration between two or more than two parties, with an agreement to manage the business operations in a particular area by combining their resources and sharing their profits as per the well-defined terms and conditions of the contract.

Key Features of Chain Stores: When 4 or more than four stores manage the same merchandise under the central ownership and usually receive their supplies from a central warehouse. The Chain stores in Europe are equally called as Multiple Shops, unlike America where it is regarded as Chain Stores. The main objective of Chain Store system is to approach the maximum number of customers by expanding operations across a larger territory, but with a concentration on selling the same merchandise.

In Indian context organizations such as BATA and Usha Lexus operate chain stores across the country. These organizations offer varieties or various model variants of a single product, and the buying is centralized, but selling is decentralized.

Salient Features are given below

• A retail system to be considered as a Chain store should have more than 1 retail store engaged in the same merchandise and being operated with a moderate degree of centralization.
• The focus is on horizontal expansion by establishing multiple stores for reaching maximum customers across various geographies.

Advantages of Chain Stores

• Chain Stores enjoy cost advantages due to the economy in purchase operations, low advertisement expenditures and low selling prices of the products.
• The risks are distributed as a result of which the possibility of losses is minimized.
• Delinquency, bad debts and the complexities in the processes of accounting can be avoided since the chain stores operate on the basis of cash.
• Chain stores need not be established in costly or prime locations and enjoy flexibility in their style of operation.

Limitations of Chain Stores

• The claim that the products in chain stores are sold at lower prices is false.
• Practically chain stores are inflexible as the chain stores specialize in offering standardized products only.
• Chain stores face a lot of personnel issues due to the complexities of a large-scale business operation.
• Chain stores run a perennial risk of losing the brand image because various customer-centric initiatives are not being given that much importance. But the customers in the present scenario look for several other benefits regarding services.
• Chain Stores enjoy cost advantages due to the economy in purchase operations, low advertisement expenditures and low selling prices of the products.
• The risks are distributed as a result of which the possibility of losses is minimized.
• Delinquency, bad debts and the complexities in the processes of accounting can be avoided since the chain stores operate on the basis of cash.
• Chain stores need not be established in costly or prime locations and enjoy flexibility in their style of operation.

Features of Departmental Stores

Departmental Stores can be either classified on the ownership basis or income groups. The key features of Departmental Stores are given below:

• Departmental stores perform operations in an integrated manner all under the single roof.
• Departmental stores are multi leveled retail outlets operating on a large scale at the international level, national level and locally as well, offering a variety in their merchandise. In India, the major national players operating departmental stores are Westside, Shoppers Stop, Lifestyle, etc. While the local players Meena Bazaar of Hyderabad and Ebony in Delhi.
• The key criterion which determines the success of a departmental store is the location in which it operates and also other factors like store size, space availability, the area which is being targeted and crucial issues such as the potential of the store in attracting the customers.

Advantages of Departmental Stores

• Departmental stores enjoy the benefits of economies of scale and also cost advantages due to its large scale operation. Usually, the purchases are done in bulk or large quantities as a result of which special concessions can be availed on the purchases.
• Departmental stores usually have ready availability of cash in liquid form, which provides an advantage of procuring quality goods at affordable prices along with special discounts/concessions and keeping a reserved stock for meeting the growing demands of the customers and enjoying a business advantage.
• Customers usually get attracted towards the departmental stores for their buying requirements due to the availability of a variety of products under a single roof.

Disadvantages of Departmental Stores

• The overall costs and expenses involved in the operation of the departmental stores are very high.
• The element of personal involvement or maintaining client relationship is found to be lacking in the case of departmental stores.
• The departmental stores always run the perennial risk of incurring heavy losses or damages.
• The staff members are usually poor qualified and lack the requisite competencies or the training for dealing with the day to day business affairs or addressing the challenges involved in the business.

Features of Super Markets

• Supermarkets operate on a large scale basis and are the self-service kind of stores which may be entirely operated by the owner or may lease some of the departments on concessional rates.
• These stores are usually located in prime shopping locations where facilities for the parking are available.
• The key hallmarks of supermarkets are the availability of a variety of merchandise and branded products, affordable prices and availability of parking facility.

Advantages of Super Markets

• Supermarkets offer convenience in shopping, and the customers enjoy the benefit of buying their preferred products by selecting from a variety.
• The supermarkets sell products at affordable prices.
• The customer’s shopping time is considerably reduced.

Disadvantages of Super Markets

• Supermarkets incur heavily on administrative and maintenance expenses.
• Service aspects are usually ignored in this model of retail.
• The store operation costs are very high.

Advantages of Direct Selling

• Direct selling also called as home selling involve an element of a personal touch as the customers can establish a contact with the sales representative and discuss their buying requirements or clarify their queries.
• The consumers enjoy the benefit of purchasing the products as per their convenience either at home or any other location of their choice.
• The role of the seller is very crucial in case of direct selling as the seller can personally demonstrate the products before the consumer and influence them for the purchase by trying out persuasive skills.

Limitations of Direct Selling

• Managing the administrative requirements, determining the sales commissions for the sales agents, determining the terms and conditions of work (part time or full time) may involve heavy costs.

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Retailer: Characteristics, Functions and Services

Characteristics, Functions and Services of a Retailer

In the fast changing globalized and a technology-driven business world, Retail industry over last few decades has witnessed a sea change. World’s largest retail giant of the present times Walmart is operating worldwide by establishing hypermarkets in various countries by taking the help of sophisticated means of communication as well as information systems technology.

A careful analysis of the trends reveals that in the Fortune 500 list of organizations, 50 are from retail industry and the top rank is occupied by the world’s No. 1 retail giant Walmart. The statistics convincingly reveal how fast the retail industry has grown and paved the path for expansion of business as well as employment opportunities.

Characteristics of a Retailer

• In the entire distribution chain, a retailer is considered to be the final link, who deals directly with the customer.
• A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities.
• A retailer essentially maintains a variety of merchandise.
• The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.

Key Functions Performed by a Retailer

• A retailer performs the dual functions of buying and assembling of goods. The responsibility of a retailer is to identify the most economical source for obtaining the goods from the suppliers and passing on the advantages to the consumer.
• The retailers perform the functions of warehousing and storing. They store the goods in bulk and make them available as per the requirement of the consumer. Warehousing and store keeping helps in ensuring uninterrupted availability of the goods to the consumers.
• The primary function of a retailer is selling the products to the customers for which various techniques or business practices are being adopted by the retailer to achieve the strategic goals.
• The prime focus of a retailer is on maximizing customer satisfaction by delivering quality products and services both on cash as well as credit basis. As a result of which, retailer always runs the risk of accumulating bad debts on account of non-payment of the amount from the consumer.
• A retailer needs to have robust risk management capabilities. Various kinds of risks can be involved in a retail business which a retailer should be well prepared with like loss or damage of the products due to deterioration in quality, perishability or spoilage. A change in customer’s buying preferences or tastes can also affect the retail business to a great extent, or even the products may be damaged due to the natural calamities or vagaries of nature.
• A retailer performs the crucial function of grading for all those goods which at times are either left ungraded by the wholesalers or manufacturers so that the customers readily accept the goods. The retailer is responsible for the packing of goods in small packages or small containers for the customer’s convenience.
• The retailers are the direct point of contact or communication with the customers; hence they gather information regarding the changing tastes and preferences of the consumers, pass on the customer feedback to the manufacturers for continuous improvement in service delivery.
• Retailers act as a vital channel for the launch of new products in the market as they are the direct interface with the consumers and can communicate directly with the targets consumers about the new product features and advantages.
• The retailers are responsible for the product promotion and advertisement by planning the product displays and visual merchandising for attracting the customers.

Services Provided by a Retailer

To Customers:

• A Retailer ensures ready stock availability of goods for the customers in sufficient quantities and sells the goods to the customers as per their quantity specifications.
• A retailer ensures availability of a wide variety of choices of products for the customers by keeping different varieties at various prices and also different brands as well.
• A retailer can provide credit facilities and heavy cash discounts on the purchase of different products to the customers.
• Retailers can provide customized services and pay personalized attention to the customers for achieving a higher level of satisfaction with the delivery of product or service.
• Retailers introduce new products to the customers and also guide them with the usage of the products.
• Retailers can provide additional services like free home delivery or after sales services.
• Retailers purchase and maintain a stock of those products which are mostly demanded by the customers. They aim at catering to the requirements of all kinds of customers with varied buying capacities.

To Wholesalers:

• Retailers are a valuable source of information and feedback for the wholesalers who in turn pass on the same information to the producers of the products. Crucial information related to the changes in the buying preferences of the customers, their experience with the usage of the products, feedback on the prices and quality of the products is passed on to the wholesalers. This helps in improving the existing services and in customizing the product solutions as per the requirements of the customers.
• A retailer absorbs most of the burden of the wholesaler and also of the manufacturer by selling the goods in small quantities to the customers. The wholesalers are relieved from the burden of maintaining direct touch with the customers and managing the entire gamut of activities involved in convincing the customers for purchasing their products.
• Retailer supports the wholesaler by acting as a channel for distributing the goods to the customers.
• Retailer acts as the point of contact between the customer and the wholesaler. Retailers are responsible for creating and improving the demand for various products by taking care of the display and merchandising activities.
• Retailers act as a major source of funding for the wholesale trade by placing the orders and making payments in advance to the wholesalers for those goods.

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Retailer: Characteristics, Functions and Services

Characteristics, Functions and Services of a Retailer

In the fast changing globalized and a technology-driven business world, Retail industry over last few decades has witnessed a sea change. World’s largest retail giant of the present times Walmart is operating worldwide by establishing hypermarkets in various countries by taking the help of sophisticated means of communication as well as information systems technology.

A careful analysis of the trends reveals that in the Fortune 500 list of organizations, 50 are from retail industry and the top rank is occupied by the world’s No. 1 retail giant Walmart. The statistics convincingly reveal how fast the retail industry has grown and paved the path for expansion of business as well as employment opportunities.

Characteristics of a Retailer

• In the entire distribution chain, a retailer is considered to be the final link, who deals directly with the customer.
• A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities.
• A retailer essentially maintains a variety of merchandise.
• The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.

Key Functions Performed by a Retailer

• A retailer performs the dual functions of buying and assembling of goods. The responsibility of a retailer is to identify the most economical source for obtaining the goods from the suppliers and passing on the advantages to the consumer.
• The retailers perform the functions of warehousing and storing. They store the goods in bulk and make them available as per the requirement of the consumer. Warehousing and store keeping helps in ensuring uninterrupted availability of the goods to the consumers.
• The primary function of a retailer is selling the products to the customers for which various techniques or business practices are being adopted by the retailer to achieve the strategic goals.
• The prime focus of a retailer is on maximizing customer satisfaction by delivering quality products and services both on cash as well as credit basis. As a result of which, retailer always runs the risk of accumulating bad debts on account of non-payment of the amount from the consumer.
• A retailer needs to have robust risk management capabilities. Various kinds of risks can be involved in a retail business which a retailer should be well prepared with like loss or damage of the products due to deterioration in quality, perishability or spoilage. A change in customer’s buying preferences or tastes can also affect the retail business to a great extent, or even the products may be damaged due to the natural calamities or vagaries of nature.
• A retailer performs the crucial function of grading for all those goods which at times are either left ungraded by the wholesalers or manufacturers so that the customers readily accept the goods. The retailer is responsible for the packing of goods in small packages or small containers for the customer’s convenience.
• The retailers are the direct point of contact or communication with the customers; hence they gather information regarding the changing tastes and preferences of the consumers, pass on the customer feedback to the manufacturers for continuous improvement in service delivery.
• Retailers act as a vital channel for the launch of new products in the market as they are the direct interface with the consumers and can communicate directly with the targets consumers about the new product features and advantages.
• The retailers are responsible for the product promotion and advertisement by planning the product displays and visual merchandising for attracting the customers.

Services Provided by a Retailer

To Customers:

• A Retailer ensures ready stock availability of goods for the customers in sufficient quantities and sells the goods to the customers as per their quantity specifications.
• A retailer ensures availability of a wide variety of choices of products for the customers by keeping different varieties at various prices and also different brands as well.
• A retailer can provide credit facilities and heavy cash discounts on the purchase of different products to the customers.
• Retailers can provide customized services and pay personalized attention to the customers for achieving a higher level of satisfaction with the delivery of product or service.
• Retailers introduce new products to the customers and also guide them with the usage of the products.
• Retailers can provide additional services like free home delivery or after sales services.
• Retailers purchase and maintain a stock of those products which are mostly demanded by the customers. They aim at catering to the requirements of all kinds of customers with varied buying capacities.

To Wholesalers:

• Retailers are a valuable source of information and feedback for the wholesalers who in turn pass on the same information to the producers of the products. Crucial information related to the changes in the buying preferences of the customers, their experience with the usage of the products, feedback on the prices and quality of the products is passed on to the wholesalers. This helps in improving the existing services and in customizing the product solutions as per the requirements of the customers.
• A retailer absorbs most of the burden of the wholesaler and also of the manufacturer by selling the goods in small quantities to the customers. The wholesalers are relieved from the burden of maintaining direct touch with the customers and managing the entire gamut of activities involved in convincing the customers for purchasing their products.
• Retailer supports the wholesaler by acting as a channel for distributing the goods to the customers.
• Retailer acts as the point of contact between the customer and the wholesaler. Retailers are responsible for creating and improving the demand for various products by taking care of the display and merchandising activities.
• Retailers act as a major source of funding for the wholesale trade by placing the orders and making payments in advance to the wholesalers for those goods.

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Retail Management – Meaning and its Need

Retail Management

Meaning and its Need

What is management ?

Management refers to the process of bringing people together on a common platform and make them work as a single unit to achieve the goals and objectives of an organization. Management is required in all aspects of life and forms an integral part of all businesses.

Retail management

The various processes which help the customers to procure the desired merchandise from the retail stores for their end use refer to retail management. Retail management includes all the steps required to bring the customers into the store and fulfill their buying needs.

Retail management makes shopping a pleasurable experience and ensures the customers leave the store with a smile. In simpler words, retail management helps customers shop without any difficulty.

Need for Retail Management – Why retail management ?

Peter wanted to gift his wife a nice watch on her birthday. He went to the nearby store to check out few options. The retailer took almost an hour to find the watches. This irritated Peter and he vowed not to visit the store again.-An example of poor management.

You just can’t afford to make the customer wait for long. The merchandise needs to be well organized to avoid unnecessary searching. Such situations are common in mom and pop stores (kirana stores). One can never enjoy shopping at such stores.

Retail management saves time and ensures the customers easily locate their desired merchandise and return home satisfied.

An effective management avoids unnecessary chaos at the store.

Effective Management controls shopliftings to a large extent.

• The retailer must keep a record of all the products coming into the store.
• The products must be well arranged on the assigned shelves according to size, colour, gender, patterns etc.
• Plan the store layout well.
• The range of products available at the store must be divided into small groups comprising of similar products. Such groups are called categories. A customer can simply walk up to a particular category and look for products without much assistance.
• A unique SKU code must be assigned to each and every product for easy tracking.
• Necessary labels must be put on the shelves for the customers to locate the merchandise on their own.
• Don’t keep the customers waiting.
• Make sure the sales representatives attend the customers well. Assist them in their shopping. Greet them with a smile
• The retailer must ensure enough stock is available at the store.
• Make sure the store is kept clean. Don’t stock unnecessary furniture as it gives a cluttered look to the store. The customers must be able to move freely.
• The store manager, department managers, cashier and all other employees should be trained from time to time to extract the best out of them. They should be well aware of their roles and responsibilities and customer oriented. They should be experts in their respective areas.
• The store manager must make daily sales reports to keep a track of the cash flow. Use softwares or maintain registers for the same.
• Remove the unsold merchandise from the shelves. Keep them somewhere else.
• Create an attractive display.
• Plan things well in advance to avoid confusions later on.
• Ask the customers to produce bills in case of exchange. Assign fixed timings for the same. Don’t entertain customers after a week.

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Retail Management – Meaning and its Need

Retail Management

Meaning and its Need

What is management ?

Management refers to the process of bringing people together on a common platform and make them work as a single unit to achieve the goals and objectives of an organization. Management is required in all aspects of life and forms an integral part of all businesses.

Retail management

The various processes which help the customers to procure the desired merchandise from the retail stores for their end use refer to retail management. Retail management includes all the steps required to bring the customers into the store and fulfill their buying needs.

Retail management makes shopping a pleasurable experience and ensures the customers leave the store with a smile. In simpler words, retail management helps customers shop without any difficulty.

Need for Retail Management – Why retail management ?

Peter wanted to gift his wife a nice watch on her birthday. He went to the nearby store to check out few options. The retailer took almost an hour to find the watches. This irritated Peter and he vowed not to visit the store again.-An example of poor management.

You just can’t afford to make the customer wait for long. The merchandise needs to be well organized to avoid unnecessary searching. Such situations are common in mom and pop stores (kirana stores). One can never enjoy shopping at such stores.

Retail management saves time and ensures the customers easily locate their desired merchandise and return home satisfied.

An effective management avoids unnecessary chaos at the store.

Effective Management controls shopliftings to a large extent.

• The retailer must keep a record of all the products coming into the store.
• The products must be well arranged on the assigned shelves according to size, colour, gender, patterns etc.
• Plan the store layout well.
• The range of products available at the store must be divided into small groups comprising of similar products. Such groups are called categories. A customer can simply walk up to a particular category and look for products without much assistance.
• A unique SKU code must be assigned to each and every product for easy tracking.
• Necessary labels must be put on the shelves for the customers to locate the merchandise on their own.
• Don’t keep the customers waiting.
• Make sure the sales representatives attend the customers well. Assist them in their shopping. Greet them with a smile
• The retailer must ensure enough stock is available at the store.
• Make sure the store is kept clean. Don’t stock unnecessary furniture as it gives a cluttered look to the store. The customers must be able to move freely.
• The store manager, department managers, cashier and all other employees should be trained from time to time to extract the best out of them. They should be well aware of their roles and responsibilities and customer oriented. They should be experts in their respective areas.
• The store manager must make daily sales reports to keep a track of the cash flow. Use softwares or maintain registers for the same.
• Remove the unsold merchandise from the shelves. Keep them somewhere else.
• Create an attractive display.
• Plan things well in advance to avoid confusions later on.
• Ask the customers to produce bills in case of exchange. Assign fixed timings for the same. Don’t entertain customers after a week.

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