RETAIL STRATEGY FORMULATION

WITH SPECIAL REFERENCE TO LUXURY

RETAILING
 PROBLEM STATEMENT

How to increase the in-store revenue of Suvidha Mart

(IIM Ranchi store) by 50 percent and profitability by
15 percent in the next quarter?
THE VALUE
MAP
PRODUCT
MARKETING
STRATEGY
STRATEGIC VALUE MAPPING
https://www.youtube.com/watch?v=7WNGPCKcuO4
 REFERENCE SLIDE: CAMPAIGN DESIGN
FRAMEWORK
IN ACTION
Objective: Increase online sales by 20% during the holiday season.
1.Target Audience: Women aged 25-45 who are interested in fashion and shop online frequently.
2.Key Messaging: "Get ready for the holidays with exclusive discounts on your favorite outfits."
3.Channels: Instagram, email marketing, and Google Ads.
4.Content Plan:
1. Instagram: Daily posts showcasing different outfits with special offers.
2. Email: Weekly holiday countdown with exclusive deals.
3. Google Ads: Targeted ads with high-conversion keywords related to holiday shopping.

5.Budget: $10,000 for paid ads, $3,000 for content creation.

6.Timeline: 4-week campaign leading up to the holiday season.
7.Execution: Launch posts and ads, monitor engagement daily, and adjust as needed.
8.Performance Metrics: Sales, website traffic, CTR, email open rates.
9.Optimization: After week 2, reallocate ad spend to the best-performing platforms (Instagram
ads).
10.Post-Campaign: Send a thank-you email to customers, ask for feedback, and promote holiday
loyalty rewards.
HIGH PROFILE PROMOTIONS
High-profile promotions are strategies used by companies
and brands to create significant buzz around their products or
services, aiming to reach a large, often global, audience.

These promotions typically involve high visibility, collaboration

with influencers or celebrities, large-scale advertising
campaigns, and exclusive events. The goal is to generate
excitement, build brand awareness, and drive sales or
engagement.
 AIRPORT RETAILING CHALLENGES

1. High Operational Costs

• Rent and Concessions: Retailers at airports face significantly higher rental costs due to
the premium location and the fees paid to airport authorities. These high costs are often
passed on to the consumer, which can affect sales.
2. Passenger Behavior and Demographics
• Limited Time: Passengers often have little time to shop while moving through the
airport. Many are focused on catching their flight, so impulse purchases are limited.
• Diverse Customer Base: Airports attract a wide range of customers, including business
travelers, tourists, families, and those in transit. Retailers must cater to a broad
demographic, which can make inventory and marketing strategies more complex.
3. Competition and Market Saturation
• Duty-Free Pricing Issues: While duty-free shops attract customers with lower prices,
the competition with online stores or even airport shops can lead to price wars that
reduce margins.
5. Fluctuating Passenger Traffic
• Seasonality and Traffic Variability: Airports experience fluctuations in passenger traffic
based on time of day, week, season, and global events. This variability can make it difficult to
predict demand and maintain consistent sales.
• Pandemic Impact: Events like COVID-19 caused massive drops in air travel, leading to
lower foot traffic and forcing retailers to adapt quickly to survive.
6. Logistics and Supply Chain Issues
• Stock Availability: Ensuring that products are in stock and that inventory can be
replenished in time is difficult due to the airport's isolated location and complex logistics.
7. Customer Experience
• Long Lines and Crowding: During peak hours, airports are crowded, and customers may
feel stressed or rushed, making them less likely to make purchases or browse.
• Lack of Personalization: With the high turnover of passengers, creating a personalized
shopping experience becomes difficult, which may result in lower customer loyalty and
engagement.
8. Technology and E-commerce Challenges
•Online Shopping Competition: The growth of e-commerce means travelers can often
buy items online for cheaper prices than those offered in airport shops, leading to a decline
in in-store sales.
•Digital Integration: Many airports are still catching up with integrating digital retailing
features like online ordering or click-and-collect, which can further challenge traditional
retail formats.
9. Changing Consumer Preferences
•Sustainability Concerns: Increasing consumer awareness of environmental issues means
airport retailers may face pressure to adopt more sustainable practices (e.g., reducing
plastic usage, offering eco-friendly products), which can be difficult due to the airport's
infrastructure and regulations.
•Experience Over Products: Younger travelers are often more focused on experiences
rather than physical products. Airports are beginning to incorporate more experiential
retailing, like pop-up shops, experiences, or themed stores, but it can still be challenging to
adapt.
AIRPORT RETAILING BY
MONDELEZ

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https://www.youtube.com/watch?v=TSJ1Tqpad2w
 CUSTOMER
CHARACTERISTICS
1. Time-Constrained
• Quick Purchases: Customers are more likely to make quick, impulse purchases if they have a few
minutes before their gate opens, but their decisions are often based on convenience rather than
thoughtful consideration.
2. Diverse Demographics
• International Passengers: Airports attract travelers from around the world, creating a blend of cultural
backgrounds and buying habits. Retailers need to cater to a variety of needs, such as language
differences and product preferences.
• Business vs. Leisure Travelers: Business travelers tend to prioritize efficiency, and may prefer
premium services like fast-track security or high-end retail, while leisure travelers might look for
souvenirs or affordable items for family and friends.
3. Price Sensitivity
• Duty-Free Shoppers: Many travelers are attracted to duty-free shops that offer discounted prices on
certain products. However, they are often discerning and may compare prices with other retail options,
especially when they are aware of online alternatives.
• Premium Shoppers: On the other hand, business or first-class travelers may not be as price-sensitive,
opting for high-end products or luxury goods in the airport.
4. Brand Conscious
• Brand Loyalty: Some customers are loyal to particular brands, and they may actively seek out
those products in airport stores. Many airports stock high-demand luxury goods or premium brands
to cater to these customers.
5. Comfort and Convenience Seekers
• Focus on Comfort: Many travelers prioritize comfort, which can influence their purchasing
decisions, such as buying travel pillows, blankets, or other items that enhance the travel experience.
• Tech-Savvy: With the growing reliance on technology, travelers may look for gadgets, chargers, or
mobile accessories to make their journey more convenient. Many are also inclined to use airport apps
for information and shopping.
6. Impulse Buyers
• Last-Minute Purchases: Due to limited time and opportunities, many travelers make spontaneous
purchases—whether it's a snack, a magazine, or a souvenir they hadn’t planned on buying.
• Convenient Location: Being in an airport can trigger impulse buys, particularly for items like food,
drinks, or small travel necessities, because travelers tend to gravitate towards what’s easy to access.
•7. Culturally Diverse
•Varied Preferences: Airport customers come from different parts of the
world, meaning their tastes and preferences vary significantly. Retailers must
often offer a mix of international products to appeal to travelers from different
cultures, such as souvenirs, food items, or specialty goods from specific
regions.
8. Health-Conscious
•Seeking Wellness Options: Many travelers are increasingly interested in
health and wellness products, such as fitness gear, organic snacks, or
healthier food and drink options while at airports.
•Mental Well-Being Focus: Products related to relaxation and stress relief
(like aromatherapy, books, or meditation apps) have become more popular
with the increasing awareness around mental well-being during travel.
HIGH PROFILE RETAILING
`

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https://www.youtube.com/watch?v=ah2eAynWzEg
CAMPAIGNS
Teasers and Countdown Campaigns: Prior to the official
promotion or product release, brands will often release teasers or
countdowns on social media, creating anticipation and building
hype. These can be cryptic or reveal just a bit of information at a
time, keeping consumers guessing and engaged.

https://www.youtube.com/watch?v=RGqF7hMMIb4
 EXCLUSIVITY AND SCARCITY
TACTICS
•Limited-Time Offers and Flash Sales: Scarcity is a powerful tool in high-
profile promotions. Brands create a sense of urgency by offering limited-time
promotions or flash sales that encourage consumers to act quickly. This
could include flash sales on social media, time-limited discounts, or exclusive
access to a product for a specific period.

•VIP and Member-Only Access: Some brands create exclusive offers for
loyal customers or VIP members, giving them early access to new products
or special events. For example, a beauty brand might invite top customers to
a private event with influencers or a fashion brand may offer early access to
their seasonal collection for members.
RETAIL
AUDIT
Technology Transformation
In Retailing
 • Does digital impression matter most?

• How much is too much……………………………

Automation in McDonald’s

• https://www.youtube.com/watch?v=UB4vFRcCN-4 (white
castle ..flippy)

• https://www.youtube.com/watch?v=aa4DY68Lwi0 (chipotle)

• https://www.youtube.com/watch?v=S-uAsMf1__E

• https://www.youtube.com/watch?v=JJxBySZwBAI (presto)
How it started…

• Barcodes and inventory tracking methods were introduced in 1974

• The retail industry is continuously evolving, driven by changing

consumer behaviors and technological advancements.

• As the industry faces new challenges and opportunities, it is crucial for

retailers to stay ahead of the curve by embracing the latest technology
trends
How it’s going…

• Virtual Try on (Modiface)

• Considerations: Finding Best-Fit Retail Technologies Drives Digital

Transformation. Eg: Maybe it’s a POS that integrates with your E-
commerce and BOPIS solutions, bridging the online and in-store
experience?
• What is a planogram?
• A planogram is a visual representation of how products
should be placed on shelves or displays in a store.
• Planograms are used to maximize sales and improve the
customer experience.
• An AR planogram is a planogram that uses augmented
reality (AR) technology to help retailers and suppliers
place products on shelves. AR planograms can be
viewed on smart devices or at kiosks. 2D
• Helps in Visual Merchandising: Retail Schematics
• Convergent layout:
https://www.youtube.com/watch?v=CVwKFez2M7c
• Auki Labs: https://www.youtube.com/watch?
v=fFBhnWI_VrY
 Use of Technology
Phigital Retail

• Phygital retail” is a term that combines “physical” and “digital” to describe an

integrated and seamless shopping experience that combines elements of both online
(digital) and offline (physical) retail. The concept recognizes the evolving nature of
retail in the digital age, where consumers seamlessly transition between online and
offline channels during their shopping journey.
• Technology Integration: Retailers leverage technology to enhance the overall
shopping experience. This may include features like augmented reality (AR) for
virtual try-ons, in-store beacons for personalized offers, and digital signage for
interactive product information.
https://www.youtube.com/watch?v=uWxW_T0xRtw
AR, VR, and the Metaverse Will Bring Consumers Into Immersive,
Experiential Digital Spaces

• Much excitement has been raised about immersive experiential digital

shopping environments where consumers can shop on the platform,
using AR and VR.
• VR is the most immersive way to connect with the metaverse.
Although the future of the metaverse remains questionable, retailers
are exploring AR and VR solutions to create an immersive and fun
experience where shoppers can shop in a simulated environment.
https://www.youtube.com/watch?v=qrlT_xkZknw
In store Digital Research

• https://www.youtube.com/watch?v=-vFeJ8y7hro

• Future of Walmart: https://www.youtube.com/watch?v=Lxn1sVvuEFw

• https://www.youtube.com/watch?v=6xCtyQl0yM0

• Rich Communication Services (RCS) is a communication protocol standard for

instant messaging, primarily for mobile phones, developed and defined by the
GSM Association
Omnichannel integration

• Traditionally, retailers’ tech architecture was focused primarily on the store

network and supply chain.

• E-commerce capabilities were developed through a separate effort that used

commercial solutions that were integrated only in a limited way with legacy
systems, hindering the ability of retailers to implement truly omnichannel
journeys (and achieve real-time stock visibility).

• Best-in-class retailers have been able to deliver a distinctive, consistent customer

experience across channels by migrating to a headless commerce architecture
Customer Experience Journey Mapping

• Voice of customer software (VoC) delivers insight into the customer’s

behavior.

• Understanding and measuring customer experience through data can

provide measurable results such as enhanced customer experience,
revenue growth, and operational procedures.
 No
Image
OMNICHANNEL
RETAILING: Prof. Rajeev Verma
CONTEXT AND
CHALLENGES
LOCAL HAAT
GENERAL TRADE
MODERN TRADE
E-COM AND QUICK COM
 BOPIS, BOPAC AND BOSS
STORES
"Buy Online, Pick Up In-Store" and is a retail strategy
that allows customers/ consignee to order products
online and pick them up at a physical store.

BOPAC: Stands for Buy Online Pickup At Curb.

Buy online, ship-to-store (BOSS) is technically a subset of

BOPIS.
 TYPES OF RETAIL STORES
1. Department Stores - Nordstrom
2. Supermarkets – Walmart, Tesco
3. Hypermarkets – Carrefour, Walmart
4. Specialty Stores - Sephora
5. Convenience Stores – 7-Eleven
6. Warehouse Clubs (Membership Stores) - Costco
7. Discount Stores – Dollar General
8. Online Retailers (E-Commerce)
9. Pop-Up Stores
10. Flagship Stores – Apple, Nike
11. Direct Sellers - Tupperware
12. Franchise Stores - McD
13. Service Retailers – offering services
14. Vending Machines
OMNICHANNEL RETAILING

Omnichannel retailing is a strategy that integrates and

coordinates multiple shopping channels—such as physical
stores, online stores, mobile apps, social media, and call
centers—into a seamless and unified customer experience.
The goal is to provide customers with a consistent,
personalized experience across all touchpoints, allowing them
to move freely between channels while interacting with the
brand.
CHALLENGES
INTEGRATION OF
CHANNELS
•Complexity in Systems Integration: Retailers must integrate
disparate systems (inventory, customer data, sales platforms) to
ensure consistent and up-to-date information across all channels.

•Data Silos: Often, customer data, product information, and

inventory are stored in separate silos across different channels,
making it difficult to provide a unified experience.
INVENTORY
MANAGEMENT
•Real-time Stock Visibility: Managing stock in real time across
multiple channels (e-commerce, physical stores, etc.) is
challenging. Mismatches between online availability and in-store
stock can lead to customer dissatisfaction.

•Supply Chain Coordination: Coordinating supply chain logistics

to handle orders from multiple channels (and potentially fulfilling
them from different sources) can be complex and costly.
CUSTOMER EXPERIENCE
CONSISTENCY
•Uniform Experience: Ensuring a consistent experience across
channels (e.g., prices, promotions, product availability, and
customer support) is difficult, especially when each channel has
different operational structures.

•Personalization Across Touchpoints: Providing a personalized

experience that is consistent across all touchpoints requires
sophisticated tools to track and analyze customer preferences and
behaviors.
TECHNOLOGY AND
INFRASTRUCTURE
•Tech Investment: Implementing the right technology
infrastructure (e.g., customer relationship management systems,
enterprise resource planning, etc.) to support omnichannel
operations can be expensive and time-consuming.

•Cybersecurity: Increased touchpoints mean more potential

vulnerabilities. Ensuring data privacy and security across channels
is an ongoing challenge.
CUSTOMER
EXPECTATIONS
•Real-time Fulfillment: Consumers expect seamless service, such
as same-day delivery or in-store pickup. Meeting these
expectations demands streamlined operations and efficient
logistics.

•Omnichannel Customer Service: Retailers need to provide

support across multiple channels (phone, chat, social media,
email), requiring a well-trained customer service team and proper
technology tools.
MARKETING AND
PROMOTIONS
•Channel-Specific Promotions: Retailers often struggle to create
promotions that are equally effective across all channels while
preventing channel conflict (e.g., offering the same discount online
and in-store can lead to pricing issues).

•Cross-channel Marketing: Coordinating marketing efforts across

multiple channels (e.g., online ads, social media, in-store
promotions) to create cohesive campaigns is complex and requires
close alignment across teams.
EMPLOYEE TRAINING AND
MANAGEMENT

•Skill Development: Employees need to be trained to manage

multiple channels effectively, which involves understanding not
only in-store retail but also online platforms, social media, and
customer service tools.

•Managing Multiple Roles: Retailers need to equip employees to

handle different customer expectations based on the channel of
interaction, which can vary from face-to-face interactions to virtual
engagements.
COST AND PROFITABILITY

•Operational Costs: Maintaining multiple channels can lead to

higher costs related to logistics, technology, staffing, and customer
support. It can be difficult to maintain profitability while providing
seamless service.

•Return Management: Handling returns across multiple channels

can create logistical challenges, especially with products bought
online but returned in stores, or vice versa.
CUSTOMER DATA PRIVACY AND
REGULATION

•Compliance with Laws: With the collection of data from multiple

touchpoints, retailers need to comply with privacy regulations and
ensure that they are transparent about how customer data is used
and protected.

•Data Accuracy and Management: Ensuring the accuracy and

security of customer data across all platforms can be a significant
hurdle in maintaining trust and compliance.
CHANNEL CONFLICTS

•In-store vs. Online: Retailers face the challenge of balancing their

in-store and online sales efforts. For example, an in-store promotion
might compete with an online offer, creating confusion for
customers or cannibalizing sales.

•Third-party Marketplace Issues: Retailers using third-party

platforms (e.g., Amazon, eBay) for some sales may struggle with
maintaining brand control and consistency across all channels.
WALMART

•Omnichannel Strategy: Walmart integrates its physical stores

with online platforms for a unified customer experience. Customers
can order products online and opt for store pickup or same-day
delivery. The Walmart+ membership program allows customers
to access exclusive benefits both online and in-store.

•Example: Walmart’s “pickup today” option allows customers to

shop online and pick up their orders at a local store the same day.
Additionally, the company utilizes its stores as mini fulfillment
centers for online orders.
NIKE

•Omnichannel Strategy: Nike’s omnichannel approach focuses on

creating a personalized, connected shopping experience. The
company integrates its physical stores with its mobile app and
website, allowing customers to view product availability in nearby
stores, order online, and pick up in-store.

•Example: Nike's Nike Training Club and Nike Run Club apps
offer exclusive content and promotions, with customers able to
purchase products directly through these platforms or visit physical
stores to try them on and buy.
APPLE

•Omnichannel Strategy: Apple offers a seamless integration of its

website, mobile apps, and physical stores. Customers can browse
products online, reserve items for in-store pickup, or schedule
personalized one-on-one sessions in-store to receive product
advice.

•Example: Apple’s Click & Collect feature allows customers to

order products online and pick them up at a nearby Apple Store.
Additionally, they use the Apple Store app to provide a
personalized shopping experience and allow customers to schedule
appointments for services.
SESSION 2
COSTCO MASTERING
CAPITALISM

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https://www.youtube.com/watch?v=2UfO4gpML4g
CHALLENGES OF FORMAL
RETAILING IN EMERGING
MARKETS
INFRASTRUCTURE ISSUES

•Supply Chain and Logistics: Poor road networks, unreliable

transport systems, and underdeveloped logistics can hinder the
smooth delivery of goods. This results in high transportation costs
and longer lead times.

•Limited Cold Chain: In many emerging markets, the lack of

proper cold chain infrastructure for perishable goods can limit the
scope of formal retailing, especially in sectors like food and
beverages.
 CULTURE AND CONSUMER
BEHAVIOUR
Price Sensitivity: Consumers in emerging markets often have lower
purchasing power, making them more sensitive to price. This forces formal
retailers to balance quality and affordability, which can be a challenge for
premium brands.

Preference for Informal Retail: Many consumers in emerging markets are

more accustomed to informal or traditional retail setups, such as street
vendors, mom-and-pop stores, and small local shops. Transitioning these
consumers to formal retail outlets can be slow and difficult.

Diverse Consumer Preferences: There are significant cultural and

demographic differences within emerging markets, which can make it difficult
for retailers to tailor products to local tastes and preferences.
DIGITAL INTEGRATION
E-commerce Logistics: For retailers offering e-commerce,
challenges like unreliable internet connectivity, underdeveloped
payment infrastructure, and inefficient last-mile delivery systems
pose obstacles.

Technology Adoption: Retailers may face resistance to adopting

advanced technologies (e.g., point-of-sale systems, inventory
management tools) due to the high upfront cost, lack of technical
expertise, or cultural factors.
REAL ESTATE AND STORE
LOCATION
•High Real Estate Costs: In some urban areas, the cost of prime
retail real estate can be prohibitively high, making it difficult for
new entrants to afford the space needed for a profitable retail
outlet.

•Urbanization Trends: While urban areas are growing rapidly, rural

areas still present a significant market that is harder to tap into due
to lower infrastructure development and dispersed populations.
KEY CHARACTERISTICS
Branding and Franchising: Many formal retailers operate under
recognizable brands and may also engage in franchising to expand
their reach. Global brands like Starbucks, McDonald's, and Zara
also have a presence in India, contributing to formal retail growth.

E-commerce Integration: The formal retail sector in India has

increasingly embraced e-commerce. Many traditional retailers have
set up online stores, while e-commerce giants like Amazon and
Flipkart have become key players in the formal retail market.
MODERN STORE FORMATS
Hypermarkets: Large retail outlets that offer a wide range of products,
including groceries, electronics, clothing, and household goods (e.g.,
Big Bazaar, Reliance Fresh).

Supermarkets: Smaller than hypermarkets, these primarily sell

groceries and household goods (e.g., Spencer’s, More).

Specialty Stores: Focused on specific categories such as apparel,

electronics, or home décor (e.g., Pantaloons, Croma).

Department Stores: Large retail outlets that sell a variety of goods

across different categories (e.g., Lifestyle).
 FRANCHISE BUSINESS TYPES
1.Product Distribution Franchise: The franchisee sells the products or services of
the franchisor but operates independently. This is common in industries like
automotive parts, beverages, or food products (e.g., Coca-Cola, Pepsi).
2.Business Format Franchise: This is the most common type, where the
franchisee adopts the complete business model, including brand, products,
operations, marketing, and support systems. Examples include fast food chains like
McDonald's or Subway.
3.Management Franchise: In this model, the franchisee manages the business on
behalf of the franchisor, but the business may be owned by a third party or the
franchisor. This model is common in sectors like healthcare, education, or service-
based businesses (e.g., fitness clubs, tutoring services).
4.Master Franchise: A master franchisee is given the right to sub-franchise within
a certain territory. They are responsible for finding and managing other franchisees
within that region, essentially becoming a mini-franchisor. This model is often used
in international expansion.
FRANCHISE BUSINESS IN INDIA
Food & Beverage: Popular fast-food chains (e.g., McDonald's, Domino’s Pizza),
coffee shops (e.g., Starbucks, Café Coffee Day), and casual dining restaurants.

Retail: Clothing stores (e.g., Reliance Trends, Bata), electronics, and home goods.

Education: Educational services and training institutes (e.g., Byju’s).

Fitness: Gyms, fitness centers, and wellness brands (e.g., Talwalkars, Gold’s
Gym).

Beauty & Personal Care: Salons and beauty clinics (e.g., Lakmé Salon, VLCC).

Technology & Services: IT services, consultancy, and repair businesses.

VERTICAL MARKETING
SYSTEMS
OMNICHANNEL
RETAILING: Prof. Rajeev Verma
CONTEXT AND
CHALLENGES
LOCAL HAAT
GENERAL TRADE
MODERN TRADE
E-COM AND QUICK COM
 BOPIS, BOPAC AND BOSS
STORES
"Buy Online, Pick Up In-Store" and is a retail strategy
that allows customers/ consignee to order products
online and pick them up at a physical store.

BOPAC: Stands for Buy Online Pickup At Curb.

Buy online, ship-to-store (BOSS) is technically a subset of

BOPIS.
 TYPES OF RETAIL STORES
1. Department Stores - Nordstrom
2. Supermarkets – Walmart, Tesco
3. Hypermarkets – Carrefour, Walmart
4. Specialty Stores - Sephora
5. Convenience Stores – 7-Eleven
6. Warehouse Clubs (Membership Stores) - Costco
7. Discount Stores – Dollar General
8. Online Retailers (E-Commerce)
9. Pop-Up Stores
10. Flagship Stores – Apple, Nike
11. Direct Sellers - Tupperware
12. Franchise Stores - McD
13. Service Retailers – offering services
14. Vending Machines
OMNICHANNEL RETAILING

Omnichannel retailing is a strategy that integrates and

coordinates multiple shopping channels—such as physical
stores, online stores, mobile apps, social media, and call
centers—into a seamless and unified customer experience.
The goal is to provide customers with a consistent,
personalized experience across all touchpoints, allowing them
to move freely between channels while interacting with the
brand.
CHALLENGES
INTEGRATION OF
CHANNELS
•Complexity in Systems Integration: Retailers must integrate
disparate systems (inventory, customer data, sales platforms) to
ensure consistent and up-to-date information across all channels.

•Data Silos: Often, customer data, product information, and

inventory are stored in separate silos across different channels,
making it difficult to provide a unified experience.
INVENTORY
MANAGEMENT
•Real-time Stock Visibility: Managing stock in real time across
multiple channels (e-commerce, physical stores, etc.) is
challenging. Mismatches between online availability and in-store
stock can lead to customer dissatisfaction.

•Supply Chain Coordination: Coordinating supply chain logistics

to handle orders from multiple channels (and potentially fulfilling
them from different sources) can be complex and costly.
CUSTOMER EXPERIENCE
CONSISTENCY
•Uniform Experience: Ensuring a consistent experience across
channels (e.g., prices, promotions, product availability, and
customer support) is difficult, especially when each channel has
different operational structures.

•Personalization Across Touchpoints: Providing a personalized

experience that is consistent across all touchpoints requires
sophisticated tools to track and analyze customer preferences and
behaviors.
TECHNOLOGY AND
INFRASTRUCTURE
•Tech Investment: Implementing the right technology
infrastructure (e.g., customer relationship management systems,
enterprise resource planning, etc.) to support omnichannel
operations can be expensive and time-consuming.

•Cybersecurity: Increased touchpoints mean more potential

vulnerabilities. Ensuring data privacy and security across channels
is an ongoing challenge.
CUSTOMER
EXPECTATIONS
•Real-time Fulfillment: Consumers expect seamless service, such
as same-day delivery or in-store pickup. Meeting these
expectations demands streamlined operations and efficient
logistics.

•Omnichannel Customer Service: Retailers need to provide

support across multiple channels (phone, chat, social media,
email), requiring a well-trained customer service team and proper
technology tools.
MARKETING AND
PROMOTIONS
•Channel-Specific Promotions: Retailers often struggle to create
promotions that are equally effective across all channels while
preventing channel conflict (e.g., offering the same discount online
and in-store can lead to pricing issues).

•Cross-channel Marketing: Coordinating marketing efforts across

multiple channels (e.g., online ads, social media, in-store
promotions) to create cohesive campaigns is complex and requires
close alignment across teams.
EMPLOYEE TRAINING AND
MANAGEMENT

•Skill Development: Employees need to be trained to manage

multiple channels effectively, which involves understanding not
only in-store retail but also online platforms, social media, and
customer service tools.

•Managing Multiple Roles: Retailers need to equip employees to

handle different customer expectations based on the channel of
interaction, which can vary from face-to-face interactions to virtual
engagements.
COST AND PROFITABILITY

•Operational Costs: Maintaining multiple channels can lead to

higher costs related to logistics, technology, staffing, and customer
support. It can be difficult to maintain profitability while providing
seamless service.

•Return Management: Handling returns across multiple channels

can create logistical challenges, especially with products bought
online but returned in stores, or vice versa.
CUSTOMER DATA PRIVACY AND
REGULATION

•Compliance with Laws: With the collection of data from multiple

touchpoints, retailers need to comply with privacy regulations and
ensure that they are transparent about how customer data is used
and protected.

•Data Accuracy and Management: Ensuring the accuracy and

security of customer data across all platforms can be a significant
hurdle in maintaining trust and compliance.
CHANNEL CONFLICTS

•In-store vs. Online: Retailers face the challenge of balancing their

in-store and online sales efforts. For example, an in-store promotion
might compete with an online offer, creating confusion for
customers or cannibalizing sales.

•Third-party Marketplace Issues: Retailers using third-party

platforms (e.g., Amazon, eBay) for some sales may struggle with
maintaining brand control and consistency across all channels.
WALMART

•Omnichannel Strategy: Walmart integrates its physical stores

with online platforms for a unified customer experience. Customers
can order products online and opt for store pickup or same-day
delivery. The Walmart+ membership program allows customers
to access exclusive benefits both online and in-store.

•Example: Walmart’s “pickup today” option allows customers to

shop online and pick up their orders at a local store the same day.
Additionally, the company utilizes its stores as mini fulfillment
centers for online orders.
NIKE

•Omnichannel Strategy: Nike’s omnichannel approach focuses on

creating a personalized, connected shopping experience. The
company integrates its physical stores with its mobile app and
website, allowing customers to view product availability in nearby
stores, order online, and pick up in-store.

•Example: Nike's Nike Training Club and Nike Run Club apps
offer exclusive content and promotions, with customers able to
purchase products directly through these platforms or visit physical
stores to try them on and buy.
APPLE

•Omnichannel Strategy: Apple offers a seamless integration of its

website, mobile apps, and physical stores. Customers can browse
products online, reserve items for in-store pickup, or schedule
personalized one-on-one sessions in-store to receive product
advice.

•Example: Apple’s Click & Collect feature allows customers to

order products online and pick them up at a nearby Apple Store.
Additionally, they use the Apple Store app to provide a
personalized shopping experience and allow customers to schedule
appointments for services.
ROUTE-TO-MARKET
IN RETAIL MANAGEMENT
Name a few brands under LVMH, Kering, and Richemont.
Why Japan is treated as an independent market?
Why is the acquisition called a Whirlwind Courtship?
What are the antitrust issues in the deal?
THE WOLF IN CASHMERE
A material adverse effect (MAE) is a significant change in a company's
circumstances that could harm its value. It's a business term often used in
corporate finance and mergers and acquisitions (M&A).
Conditions:
The change is severe and long-lasting
The change affects the business more than its competitors
The change was not known about before due diligence was done
The change has a significant impact on the company's earnings
ROUTE-TO-MARKET (RTM)
Route-to-market (RtM) refers to the process of
delivering products or services to customers through
various channels, such as distributors, wholesalers,
retailers, or e-commerce platforms, ensuring products
and services are available at the right place and time.
THE OLI FRAMEWORK
The OLI framework (Dunning Eclectic Paradigm of 1979), or OLI
paradigm, is a theory that helps companies decide whether to
invest in foreign countries. It's also known as the eclectic
paradigm.

What does OLI stand for?

•O: Ownership advantage
•L: Location advantage
•I: Internalization advantage
DISTRIBUTION STRATEGIES
STEP-BY-STEP APPROACH
A step-by-step distribution approach involves a
single distributor who manages the product flow
through wholesalers and retailers. The process
begins with the manufacturer producing and
distributing to the distributor, who manages
inventory, logistics, and sales.
NODAL APPROACH
The nodal approach decentralizes and diversifies
distribution across multiple independent geographic
nodes, each managed by distributors or wholesalers.
This method ensures that each node operates
independently within its sub-market, handling its
inventory, orders, and logistics.
RETAIL APPROACH
Another strategy is distributing products to retailers,
who sell them to end-users. It is preferred by
companies that want to maintain significant control
over their products compared to indirect distribution
methods.
DIRECT-TO-CONSUMER
(DTC)
The Direct-to-Consumer (DTC) approach involves
linking manufacturers directly with the consumers,
bypassing intermediaries such as wholesalers and
retailers.
ROUTE-TO-MARKET
MARKETING CHANNELS
ROUTE-TO-MARKET (RTM)
Route-to-market (RtM) refers to the process of
delivering products or services to customers through
various channels, such as distributors, wholesalers,
retailers, or e-commerce platforms, ensuring products
and services are available at the right place and time.
DISTRIBUTION STRATEGIES
STEP-BY-STEP APPROACH
A step-by-step distribution approach involves a
single distributor who manages the product flow
through wholesalers and retailers. The process
begins with the manufacturer producing and
distributing to the distributor, who manages
inventory, logistics, and sales.
NODAL APPROACH
The nodal approach decentralizes and diversifies
distribution across multiple independent geographic
nodes, each managed by distributors or wholesalers.
This method ensures that each node operates
independently within its sub-market, handling its
inventory, orders, and logistics.
RETAIL APPROACH
Another strategy is distributing products to retailers,
who sell them to end-users. It is preferred by
companies that want to maintain significant control
over their products compared to indirect distribution
methods.
DIRECT-TO-CONSUMER
(DTC)
The Direct-to-Consumer (DTC) approach involves
linking manufacturers directly with the consumers,
bypassing intermediaries such as wholesalers and
retailers.
MARKET RESEARCH IN
RETAILING
CONSUMER PANELS
CUSTOMER PANEL
RESEARCH IN RETAILING
Customer panel research in retailing is a method where
retailers gather insights from a selected group of
customers, known as a "panel," to better understand
consumer behavior, preferences, and trends. These
panels are typically composed of loyal or frequent
customers who provide feedback on various aspects of
the shopping experience, including product offerings,
store layout, pricing, marketing, and customer service.
EXAMPLES
https://panel.amazon.com/
HRA Global
https://www.youtube.com/watch?v=lfkS7z_oXGY
HUL
https://www.youtube.com/watch?v=ElyDBGZFefY
Voxco Audience: Market research panel
https://www.youtube.com/watch?v=aG2JEwJl0f4
PANEL COMPOSITION
•Targeted Participants: A group of consumers who
represent the retailer’s target market is selected.
This can include a mix of demographics, behaviors,
and shopping habits.

•Long-Term Engagement: Panels are often

continuous, with customers participating over a long
period of time to track changes in attitudes,
behaviors, and preferences.
 METHODS OF DATA
COLLECTION
•Surveys and Questionnaires: Regular surveys are a
common way of gathering feedback, focusing on
different aspects like product satisfaction, store
environment, pricing perception, etc.
•Focus Groups: Small, in-depth group discussions help
understand the reasons behind customer behaviors and
attitudes.
•Behavioral Tracking: Retailers can also track actual
purchasing behavior, either through loyalty programs or
store apps, to analyze patterns and preferences.
 KEY BENEFITS
•Consumer Insights: Retailers can gain valuable insights
into customer satisfaction, product preferences, and unmet
needs.
•Product Development: Feedback from customers can
guide product innovation or improvements, ensuring that
products align with consumer expectations.
•Targeted Marketing: Insights allow for more personalized
marketing campaigns, enhancing the relevance and
effectiveness of promotional efforts.
•Brand Loyalty: Engaging customers in this manner can
strengthen brand loyalty, as customers feel valued and
 CHALLENGES
•Panel Fatigue: Over time, panelists may become
disengaged, and their responses may become less reliable if
they feel over-surveyed or the research is not relevant to
them.
•Bias in Sample: If the panel does not properly represent
the broader customer base, the insights may be skewed.
•Cost: Running a customer panel can be resource-intensive,
requiring effort to recruit, maintain, and incentivize
participants.
 APPLICATIONS IN RETAIL
•Product Testing: Testing new products before launch or
gathering feedback on modifications.
•Store Layout and Design: Understanding how customers
navigate a store and what they think about the layout or
experience.
•Customer Service Evaluation: Analyzing customer
satisfaction with service quality and resolving issues.
•Pricing Strategy: Testing different pricing strategies or
promotional offers and understanding their effectiveness.