Electrical Appliances Good Retail Marketing Essay

Electrical Appliances Good Retail Marketing Essay Goa is Indias smallest state by area and the fourth smallest by population. Located on the west coast of India in the region known as the Konkan, it is bounded by the state of Maharashtra to the north and by Karnataka to the east and south, while the Arabian Sea forms its western coast. WHY TO ESTABLISH A RETAIL STORE IN GOA Goas gross state domestic product for 2007 is estimated at $3 billion in current prices. Goa is one of Indias richest states with the highest GDP per capita and two and a half times that of the country as a whole, and one of its fastest growth rates: 8.23% (yearly average 1990-2000) Tourism is Goas primary industry: it handles 1 of all foreign tourist arrivals in India. Goa has two main tourist seasons: winter and summer. In the winter time, tourists from abroad (mainly Europe) come to Goa to enjoy the splendid climate. In the summer time (which, in Goa, is the rainy season), tourists from across India come to spend the holidays. Tourism is generally focused on the coastal areas of Goa, with decreased tourist activity inland. In 2004, there were more than 2 million tourists reported to have visited Goa, 400,000 of which were from abroad. ELECTRICAL APPLIANCES GOOD, RETAIL LIVE WELL My term paper is to open up the retail store of the electrical appliances. The name of my store is LIVE WELL.This store to be contain the number of variety and assortment of the electrical goods. My retail store LIVE WELL to be contain the CFL tubes ,Usha fans , Bajaj fans , Philips tubes , Sylvania tubes , all types of circuits , Crompton fans and White tubes etc . Business MissionVision LIVE WELL mission statement is to focus on bringing high quality electrical goods and services to the market at the lowest possible prices every day. The mission statement is well understood throughout the organization. LIVE WELL offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise categories. Rapid inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced handling of merchandise, and making themselves the low cost operator in retail is all key elements that make the retail store so successful. LIVE WELL defines its business in terms of benefiting their customers. In addition to offering low prices on top-quality goods and a variety of convenient services Type of retail format and ownership (Variety and assortment decisions regarding products or services to be offered);I am opening these electrical goods retail, on my own ,i.e Partnership business Electrical Goods Store Product services. TUBES Basically the best quality tubes are Philips , Crompton , Surya . All these different brands are kept in my store . Basically 40 walt tubes are demanded by the customers and very less quantity of 20 walt tubes are demanded by the customers . So these particular brands are kept in my store . FANS Fans are required in the summer season. There are different brands of fans . But most popular brands are Khaitan , Bajaj , Usha etc . The quality of these brands is very good. There is hardly any complaint regarding these brands. BULBS Today people dont like yellow light bulbs . At present people like white light bulbs . The best quality brand for white light bulb is Crompton . Crompton provides 2 year guarantee. The light of Crompton bulbs is very good . At night people like colored zero walt bulbs . SWITCHES The best quality in switches is anchor and Havell. There are various varieties in switches. Like two pin plugs, three pin plugs , bed switches , multi-plugs , extension . FANCY LIGHTS Today people like to have fancy lights in there houses . They use different fancy lights for decorating their houses. Different types of lighting stands are there. WIRES Wires OF Havel are kept in the store. HEATERS Heaters are required in the winter season . Usha and Apsara are two major brands. MARKETING PLAN:- MULTI CHANNEL DECISIONS LIVE WELL retail ELECTRICAL retail to use the multi-channel these channel were used for selling the electrical good. By using a combination of channels to be provided unique benefits to my electrical retail store by attract and satisfy more customers. My electrical retail uses all three channels to interact with its customers. These are following STORE CHANNEL It is provide the browsing to the customers before purchasing of products It is also provided touching and feeling products opportunity to the customer store channel to given advantage for the customer to get the product immediately after they buy it. CATALOG Our electrical retail is also provided the Catalog channel; offer the convenience of looking at product and placing an order on any day at any time from almost anywhere. We are also provided the photographs of electrical goods in catalogs, while not as useful as in store presentations, are superior to the visual information that can be displayed on a CRT screen. INTERNET CHANNEL Our electrical retail provides the information to customer about which the electrical good are available in our retail store. These Internet channels also contain the all information about electrical good price. The benefit of Internet channel as compared with the other two channels is the vast number of consumers to purchase the product easily. Retail market strategy to be followed and preparation of Strategic Retail planning; Retail market strategy is a statement identifying The retailers target market The format the retailer plans to use to satisfy the target markets need The vases upon which the retailer plans to build a sustainable competitive advantage. Our electrical retail will be containing the strong brand electrical product for the customers. It will be developing clear and price positioning strategies and creating an emotional attachment with customers through loyalty programs. We also will be using the retail mix to create an image of the retailer in the customers mind relative to its competitors. Stores will be offering fine quality electrical goods at competitive prices Retail market strategy to be followed and preparation of Strategic Retail planning. RETAIL FORMAT In which I have included the different strategies which lead our business and used different competitive promotional planned which make our retail store attractive and effective. And these should be done according to these points; Nature of merchandise and services offered Pricing policy Advertising and promotion programs Store design and visual merchandising Customer services. LOCATION Location of retail store is important aspect as customer point of view because location is the critical factor in consumer selection of store and whenever we opened a retail store than we have assumed the different factor which showed our retail store features like as: Demographic features(to know about the potential customer in that area, metropolitan statistical area) Competition(to know about the competitors and how they far from my retail store) Strategic fit(to must know about the life style of potential customer) Operating cost(different area have different cost) No. of small shops in that area Economy of scale We are establishing our ELECTRICAL BUSINESS LIVE WELL in the state GOA,near Dabolim airport.while establishing a business in GOA some certain requirements should be taken into consideration :- TRFFIC This refer to both regular and pedestrian traffic as GOA being a main Centre of tourist industry so there will be a high traffic in GOA.The traffic that passes the site is an important determinant of the potential sales that can be generated from that store. However it is essential that the traffic is suitable to the kind of products to be retailed in the store. ACCESIBILITY TO MARKET Accessibility of market in terms of availability of public transport in GOA is essential while determining the site of retail store .Public transport refers to means of recharging the market the frequency of bus/train services and connectivity to different parts of the city. THE NUMBER OF STORE AND TYPE OF STORE IN THAT AREA If there are large number of stores in market then there more and more customers will come .The type of store exist in the area is also important .The type of competition also be taken into consideration while deciding the site AMENITIES AVAILABLE Depending upon the type of market to be retailed facilities like free and amplex parking become important. This is a factor that has gained importance. OPERATIONAL PLAN. The operational plan is an essential component of our retail established in GOA store and it tells the reviewer how you are going to get your product out to market. That is how you are going to get your product out of production stage to the doorstep of the target à ¢Ã¢â€š ¬Ã‚ ¢ Who is doing what? à ¢Ã¢â€š ¬Ã‚ ¢ What are the day to day activities? à ¢Ã¢â€š ¬Ã‚ ¢ How will the suppliers and vendors be used? à ¢Ã¢â€š ¬Ã‚ ¢ Who are the suppliers? à ¢Ã¢â€š ¬Ã‚ ¢ What are the labor requirements? à ¢Ã¢â€š ¬Ã‚ ¢ What are the sources of raw materials? Basically, you want to explain that how you are going to deliver your product. What are you and/or your employees going to be doing on a daily basis from the time you open up to time you close. This is what your reader wants to know. Some issues often addressed in an operational plan include: à ¢Ã¢â€š ¬Ã‚ ¢ Production or manufacturing à ¢Ã¢â€š ¬Ã‚ ¢ Facilities à ¢Ã¢â€š ¬Ã‚ ¢ Inventory à ¢Ã¢â€š ¬Ã‚ ¢ Distribution à ¢Ã¢â€š ¬Ã‚ ¢ Maintenance and service Order fulfillment and customer service Production or Manufacturing Every manufacturing business has a production process, and in my retail store of LIVE WELL ELECTRICALS there is a certain production or manufacturing department who manufactures the product. The way it goes about fabricating a raw or component material and creating an item with greater usefulness or desirability. However, even if our business is a service or retail operation, you have to use a method of producing something of value for your customers. Integral to the overall understanding of a production oriented business is an appreciation of how the company will manufacture its products. One straight forward way of conveying such information is to examine this activity in terms of resources, processes, and output. Capacity In my retail store established near Dabolim airport(GOA) capacity must be taken into consideration i.e Capacity is the measure of how much work your facilities, labor force, and equipment can handle. Does your production process have the capacity to keep orders up? Do you have too much capacity? Not enough capacity Productivity PRODUCTIVITY is very necessary in every retail store .In my store too productivity of electrical material is very important .Productivity measures how long and how many people it requires to produce your product or service. If you can produce more goods in less time, you can improve the bottom line from every dollar spent on equipment and operating costs such as salaries and rent. Labour In a city like GOA we should judge what kinds of and how many employees do you require to produce your product or service in the Electrical Retail store How are you going to use them? Are you going to be using seasonal workers Quality Assurance There should be a constant check in my retail store LIVE WELL of how are you going to keep consistent and maintain the same standards with each product or service. Such activities include regular inspections throughout the production process, occasional testing or sampling of goods. Facilities As my Retail store is located in GOA In business, the location of our facilities can prove a critical factor for your success. If your business is going require a large outlay of capital assets at the onset, you will need to make sure the facilities are adequate and are positioned properly. Whats the use of setting up a manufacturing facility in a rural setting with no transportation mechanisms? You will need to decide how you are going to get your product to your consumer and position your facility that will be both cost effective and efficient. Location My Retail store LIVE WELL should be established in an area which include the location of company headquarters, retail store (s), branch offices, additional plants, and others. Describe the size and how each will be allocated. Mention why you are located at your particular location and the benefits associated with it. Describe access to parking and transportation; air, rail, and surface shipping access, and loading docks, warehouse, and other facilities. Lease/Rent GOA being a small state so to have enough land for constructing is somewhat very difficult so we have too rather pay rent or to have a lease option . This is very important and make sure you understand all aspects of the lease. You dont want to be stuck in a 5 year lease if your business fails after the first year (Ive seen this happen a few times). Maintenance For the construction of a Retail store in GOA we should also see the operational costs associated with the building? Include the cost of gas, water and electricity. What are the costs for janitorial, trash removal and other operational costs Inventory Different businesses will have different inventory requirements. Of course, a large retail operation will have much more inventory than an engineering consultant so remember to use those points that apply to your business. Most of the retail operations I deal with overlook the importance of inventory management. An effective inventory management process can make all the difference in the world when it comes to making a huge profit. Merchandise Management For the purpose of Merchandise management in my retail outlet located In GOA the order received from a Vendor is kept in container and the inventory is raised whereas sale of each SKU to customer decreases the level of inventory. Therefore there is need to keep a record of total orders received and sale of SKU. There is a need to manage the merchandise so as to keep minimum level of stock which should be there the entire time.In store, Inventory for re-order and the time to which an order with vendor is to be placed so as to run business efficiently. Inventory management report: In my Electrical retail store established in GOA there is need to maintain this report so as to know the Level of Sales to do the forecast of sales for the next year, Amount of inventory available so as to know quantity of re-order, product which are available in the Store. This report is prepared to have a record for current year and recognize the deviations from the set standards and to make forecast for future years. This report will have information about the SKU which have been most sold during that period according to month, season. Buying Merchandise: My Retail store located in GOA will have a mix of Private and National-label brand so as to give both the quality and compatibility to customers. National brands are kept in stores so as to create an image in the mind of customers about quality that has been offered in stores where as private brands are kept because the target group of customers are people who are very price conscious and can compromise quality for cost moreover Private-label Brands have strong margins for retailer. Planning the retail communication program In my Retail store established in GOA the objective for communication program is to provide direction to people implementing the program about the long term objective and what effect will it have in creating brand image and other is to provide basis for evaluating its effectiveness. The objective for:- planning retail communication mix for the store is to create a store image among consumers such that whenever they have need for and home ware appliances the top-of-their-mind is our store and the amount of assortment which are being offered to customers here and they have favorable attitude coming into store. Next part of planning retail communication mix is to develop a budget, so as to make resource allocation decisions, allocation of merchandise to stores, staffing stores and floor and shelf space devoted to merchandise categories and to determine all these things correctly MARGINAL ANALYSIS METHOD is best which states that a store should increase communication expenditure as long as each additional rupee spent should generate more than a rupee. The strategy is to increase the expenditure so as to create brand image among customers, build brand uniqueness, and sustain that brand name of store unless it is giving in return more than the expense incurred on communication program. Setting the Promotion Mix LIVE WELL STORE in GOA we will decide how to properly utilize the marketing communications mix to meet our marketing objectives, it is important to consider the relative strengths and weaknesses of each component of the mix. Further, we must always define our total budget first (generally defined in the Marketing and/or Business Plan) and then decide upon the best way to leverage the different elements of the mix to maximize the return on our investment. We will balance the various parts of the mix to not only create an integrated approach to our marketing communications but we must also devote enough resources for each component to be successful. Advertising Reaches For the advertisement of my Retail store LIVE WELL I will prefer large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication. Personal selling In my store established in (GOA) I will too give importance too personal buying as most effective tool for building buyers preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationship-oriented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools Sale Promotion may be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences Public Relation In my Retail store LIVE WELL in (GOA) it should be Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not free as many people thinkthere are costs involved) Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted Direct Marketing. Visual merchandising In my Retail store which planned to be located in GOA Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the stores image. Visual merchandising is the way one displays goods for one displays goods for sale in the most attractive manner with the end purpose of making a sale. If it does not sell, it is not visual merchandising FINANCIAL PLAN While opening a retail store in Goa, finance plays an important role in the commencement of any store. Organization should manage its resources in a best possible manner to ensure that it has enough amount of money in Reserves. Goa is a great place to establish a retail store. Financial plan is at the end of your business plan, but the financial plan section is the section that determines whether or not your business idea is viable, and is a key component in determining whether or not your business plan is going to be able to attract any investment in your business idea. Basically, the financial plan section of the business plan consists of three financial statements The income statement: Shows that whether the retail store is making Profit or not: Cash incoming to your business and cash out. Shows whether or not your company has enough cash to pay its bills The cash flow projection The balance sheet and a brief explanation/analysis of these three statements. All the costs of getting your business up and running go into the startup expenses category. These expenses may include: Business registration fees Business licensing and permits Starting inventory Rent deposits Down payments on property Down payments on equipment Utility set up fees This is just a sampling of startup expenses; your own list will probably expand as soon as you start writing them down. Operating expenses are the costs of keeping your business running. Think of these as the things youre going to have to pay each month. Your list of operating expenses may include: salaries (yours and staff salaries) rent or mortgage payments telecommunications utilities raw materials storage distribution promotion loan payments office supplies maintenance cost BALANCE SHEET OF MY RETAIL STORE LIVE WELL LIABILITES RS Share capital Equity shares of Rs.10 1000000 Each General reserve 400000 Profit loss a/c 200000 Current liabilities 200000 TOTAL 1800000 ASSETS RS Fixed assets 800000 Investment 200000 Current assets 800000 1800000 Customer Relationship Management CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.