Retail & Mall Management (VVN)
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1 . Location is a critical factor in the success of a retail Store comment
2 . Discuss Franchises mode of Retail Distribution.
Franchising is the practice of the right to use a firm’s business model and brand for a prescribed period of time. The word “franchise” is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building “chain stores” to distribute goods that avoids the investments and liability of a chain. The franchisor’s success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because they have a direct stake in the business.
Thirty-three countries—including the United States and Australia—have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising. Franchising is also used as a foreign market entry mode.
Fees and contract arrangement
Three important payments are made to a franchisor:
(a) a royalty for the trademark,
(b) reimbursement for the training and advisory services given to the franchisee, and
(c) a percentage of the individual business unit’s sales.
These three fees may be combined in a single ‘management’ fee. A fee for “disclosure” is separate and is always a “front-end fee”.
A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting asset due to the finite term of the license.
Franchise fees are on average 6.7% with an additional average marketing fee of 2% However, not all franchise opportunities are the same and many franchise organizations are pioneering new models that challenge antiquated structures and redefine success for the organization as well as the franchisee.
A franchise can be exclusive, non-exclusive or “sole and exclusive”.
Although franchisor revenues and profit may be listed in a franchise disclosure document (FDD), no laws require an estimate of franchisee profitability, which depends on how intensively the franchisee “works” the franchise. Therefore, franchisor fees are typically based on “gross revenue from sales” and not on profits realized. See remuneration.
Various tangibles and intangibles such as national or international advertising, training and other support services are commonly made available by the franchisor.
Franchise brokers help franchisors find appropriate franchisees. There are also main ‘master franchisors’ who obtain the rights to sub-franchise in a territory.
According to the International Franchise Association approximately 44% of all businesses in the United States are franchisee-worked.
The franchising of goods and services foreign to India is in its infancy. The first International Exhibition was only held in 2009. India is, however, one of the biggest franchising markets because of its large middle-class of 300 million who are not reticent about spending and because the population is entrepreneurial in character. In a highly diversified society, (see Demographics of India) McDonald’s is a success story despite its fare’s differing from that of the rest of the world.
So far, franchise agreements are covered under two standard commercial laws: the Contract Act 1872 and the Specific Relief Act 1963, which provide for both specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract.
Type of franchises:
1. Social franchises
In recent years, the idea of franchising has been picked up by the social enterprise sector, which hopes to simplify and expedite the process of setting up new businesses. A number of business ideas, such as soap making, wholefood retailing, aquarium maintenance, and hotel operation have been identified as suitable for adoption by social firms employing disabled and disadvantaged people.
The most successful examples are probably the Kringwinkel second-hand shops employing 5,000 people in Flanders, franchised by KOMOSIE, the CAP Markets, a steadily growing chain of 100 neighbourhood supermarkets in Germany and the Hotel Tritone in Trieste, which inspired the Le Mat social franchise, now active in Italy and Sweden.
Social franchising also refers to a technique used by governments and aid donors to provide essential clinical health services in the developing world.
Social Franchise Enterprises objective is to achieve development goals by creating self sustainable activities by providing services and goods in un-served areas. They use the Franchise Model characteristics to deliver Capacity Building, Access to Market and Access to Credit/Finance.
2. Third party logistics franchising
Third party logistics has become an increasingly more popular franchise opportunity due the quickly growing transportation industry and low cost franchising. In 2012, Inc. Magazine ranked three logistics and transportation companies in the top 100 fastest growing companies in the annual Inc. 5000 rankings.
3. Event franchising
Event franchising is the duplication of public events in other geographical areas, retaining the original brand (logo), mission, concept and format of the event. As in classic franchising, event franchising is built on precisely copying successful events. An example of event franchising is the World Economic Forum, also known as the Davos forum, which has regional event franchisees in China, Latin America, etc. Likewise, the alter-globalist World Social Forum has launched many national events. When The Music Stops is an example of an events franchise in the UK, in this case, running speed dating and singles events.
4. Home-based franchises
The franchising or duplication of another firm’s successful home-based business model is referred to as a home-based franchise. Home-based franchises are becoming popular as they are considered to be an easy way to start a business as they may provide a low barrier for entry into entrepreneurship. It may cost little to start a home-based franchise, but experts say that “the work is no less hard.” According to America’s Best Franchises, there are many benefits to choosing to become a home-based franchisee, “but having a home based business doesn’t offer any guarantees as you will encounter many challenges you’ll have to learn to overcome.
3 . Retail store are now a days operates on same steps discuss.
4 . How timings are important in the sucesess of Convenience Store.
5 . Discuss various stages involve in mall Design.
Simple steps to achieve an Efficient Design:
The Right Advice
We would all agree that Shopping center design is a learning curve, similar to any other aspect of Retail. In most cases it is very difficult to get everything right the first time. Therefore, considering the multiple complexities involved it is most advisable to appoint an “Shopping Mall Specialist” This Shopping Mall Specialist brings in, in depth knowledge, expertise, understanding & experience in various aspects of running a shopping center. In simple words one could say that these people have become experts by the sheer virtue of the number of mistakes made by them & more importantly by learning from their mistakes. This expert could either be an individual or a group of people generally from the background of Operations & Leasing experts, Design Architects etc. with in depth understanding of the Mall Mechanics. The objective of having such experts is that they can bring in a clear thought process and can handhold the entire development from the initial concept stages, till the Mall opening. The practice of appointing expert Mall Advisors is very common practice in the west & this trend is fast catching up in India. Most of the successful Malls in the country today, have & been guided by such experts. Beyond Squarefeet is the leading Mall Advisory in india by size, by team, by topline, by projects, etc.
The various services offered by such Mall Advisors may range from handholding the Market Research and Survey, Mall positioning, Concept development & Retail Circulation Planning, Zoning, tenant mix, Leasing, Fit-Out Management, etc. In the initial Design Phase, such an Mall Advisor can help in identifying the concept, selecting the right architect for the project, providing expert advice on retail planning, zoning, customer circulation, Wow factors to be incorporated in design etc. Infact, such Mall Advisors / Shopping Mall Specialists should be on board, even before you initiate dialogue/hire an architect.
Clarity in Concept
It is very crucial to have the right concept worked out for the Mall. There are various factors on the basis of which a Concept is based i.e. Market Study / Market Survey, Customer expectations, Demographics, Geographic Conditions, size of the Land parcel, whether the Mall is part of a larger Mixed use development or whether it is stand alone etc. All these factors & the data from the research play a very important part in identifying the Mall Concept, interpretation of this data collation, can for itself pave the way for Design direction, Mall size, Positioning etc. Once the Basic concept is identified and frozen, it is important that this Mall vision is shared with all the stakeholders of the Mall Design including the architect.
In simple words, once the Developer has identified the concept for their dream project, it is important that this dream is shared with all the concerned Design partners a Mall Advisors so that they are then completely in sync with what the developer’s expectations are.
The most important stakeholder in terms of Design of the Mall is undoubtedly the Architect as he/ she is the custodian of the Design; therefore it is very critical that this Mall vision is shared with the Design Architect. The appropriate method of sharing this vision & the expectations from the design is through a document commonly known as the ‘Design Brief to Architect’. The ownership of making of this ‘Design Brief to Architect to the Architect lies with the Developer’s or the Retail Mall Advisor – incase appointed.
Choosing the Right Architect
As the Mall culture in India had been inspired from the West, also considering that till a few years back, Mall development was a very new activity in the country. It was very natural for developers to appoint International architects who have the experience of designing Malls.
Even now, for most Developers, this decision is always a confusing one; whether they should appoint international architects, which is the trend set by the Leading Mall developers OR whether they should hire a renowned Indian architect to entirely design the project, which would attract & convince the local consumer about the development & instill confidence in him to lease space.
Which ever may be the case, what is most important is that the Architect who has been assigned for the job, should not only have an in depth understanding & knowledge of Retail Architecture but should have a hands on approach & a grasp also of the local market trends, shopping habits etc.
Utmost importance & emphasis should be given to choosing the right Architect, as he is one of the primary stakeholders from start to completion.
Once appointed, the architect should invest enough time to understand the requirements of the concept & efficiently work towards it. It is necessary that the Architect is provided a proper Design brief & then onwards, it is the Architects responsibility to adhere to the design brief given to him/ her and Design the structure as per it.
Design Brief to Architect
Generally when the Design of a Mall fails, more often then not, the Architect is held responsible for this down fall. This may be true to an extent however; at the same time it is essential to understand that the Architect’s design can only be, functionally – as good or as bad, as the Design Brief given to him. Therefore, it is very important that the correct brief is given to the Architect and his team, as this is the first & most critical touch point in the Mall Design process. The ‘Brief to Architect’ should be clear, simple & easy to understand, all the Requirements & expectations from the design should be clearly listed down. This ‘Brief to the Architect’ has to be properly documented & presented to the architect who will work on the project and should be created by the Shopping Mall Specialist.
The intent of this document should be to provide an in depth understanding of the Developers vision for the Mall in terms of Design expectations & requirements from a retail perspective, which would in turn assist them in designing the Shopping Mall in tandem with the Developers vision/ findings from a market research etc. This ‘Brief to Architect’ is intended to help the architects, consultants, Mall Advisors, developers to create the project in the manner conceptualized & agreed, also ensure that the Mall’s Design is in harmony with the market demand & the consumer expectations.
This ‘Brief to Architect’ generally consists of various phases, based on the study of several influencing factors including market visit, developer’s expectations & inputs, customer’s expectations, market environment, business potential, competitive analysis etc. The end result is intended not only to define the characteristics of the mall, but also to become a guiding force to plan, execute & implement the project.
A Design ‘Brief to Architect’ which is based on the Market research & its findings can help the Architect to align his Design appropriately with the consumer expectations, for example a market research of a small town in Punjab may categorically show that the consumer is very well travelled, aware of & exposed to the malls especially in a nearby Metro city and many have even visited Malls outside India or have family which are based there. Therefore this knowledgeable consumer has to be kept in mind, while creating a mall, which will not only change his shopping, habits but will also upgrade his lifestyle in general.
6 . Give Characterstics of Good Mall Design.
Most Malls in India have been designed outside – in, which means that the elevation of the mall has been given too much of importance than the actual mall inside. Today, we have so many malls opening in the country, but at the same time, there are only a very few who are able to sustain the treacherous path of retail. Many of these malls are either closing or dying at the same pace. One of the primary reasons for the decline of the mall is the improper Design & Planning. The Design & Planning of a mall is the foundation & spine of the structure, and it is one of the single most important contributing factors. A Malls design has to be custom made, to suit the specific retail needs. The developer has to have a clear thought process & vision of what he wishes to make & for whom. A Mall has to be planned, designed and built like a Mall from start to end. Any ambiguity in the mind of the developer or absence of clarity would spell disaster. One should not refrain from taking professional help in this context.
Five ingredients of successful mall design
1. Use design to engrain the “Wow!” factor into the mall’s brand.
2. Expand common spaces to create more points of convergence and grandeur.
3. Add “live/work” to give purpose to malls.
4. Don’t count on retail or anchors alone to drive traffic.
5. Close the dreaded Digital Divide.
Characteristics of Good Mall Design are as follows:
1. Good infrastructure is an important characteristic of good mall design. Infrastructure may include, Parking Requirement, Entry & Exit points, Security requirements, Service yard requirements, service corridors & passages, service staircases, garbage rooms requirement etc. Services requirements such as Air conditioning, Lighting Ambience, Electrical planning etc. may be elaborated.
2. Outside designed should be impressive, which means that the elevation of the mall has been given importance. Look & feel or exterior finishes of the Mall.
3. Foundation & spine of the structure, is one of the single most important contributing factors.
4. A Malls design has to be custom made, to suit the specific retail needs
5. The developer has to have a clear thought process & vision of what he wishes to make & for whom.
6. A Mall has to be planned, designed and built like a Mall from start to end.
7. A Mall can be called efficient when it connects with the customer through the various touch points, whether the entry into the premises thorough pedestrian entry or entry to car park, proper & ample parking, easy connectivity from parking to Mall level etc.
7 . What is Healthy Tenant Mix.
8 . What prerequisites for Lease Agreement.
Case Detail :
The use of technology in the retailing environment has created a massive change in expectations about how customers expect to shop in the future. Organisations which adapt to this different focus are going to be the ones that have an influence in the future. This case study focuses on how Dixons Group plc has built on the power of its existing brands and created new brands to strengthen its market position.
If some of the largest and most successful retailing organisations of twenty years ago were to be compared with those of today, the results would be surprising. They would reveal numerous examples of success, failure or transition over this short time period. Theory shows that organisations go through periods of evolution followed by revolution. The retailing industry is about to embark upon the most radical process of change within its recent history. Organisations that do not prepare for this process – and this may include many famous high street names – may not be around for much longer. Dixons Group specialises in the sale of high technology consumer electronics such as domestic appliances, personal computers, photographic equipment, communications products and related financial and after sales service.
1. Technology in the retailing environment has created a massive Change discuss
2. Failure over short time period is a temporary Phenomenon how retailers gets success in long term
3. Dixons Group specialises in the sale of what category of products
1. Selling, renting, and providing goods consumers for household use are
2. Utilities offered to consumers are
convenience, performance, possession, and form
time, place, possession, and form
product, price, place, and promotion.
convenience, consistency, competition, and choice
3. Major retail categories in India are
automotive, food stores, and clothing
floral, food stores, and furniture
jewelry, furniture, and clothing
appliance, food stores, and furniture
4. Contractual Retail, Independent store, corporate chains, are examples of outlets classified by
level of service
form of ownership
method of operation
5. Common ownership with many stores are — form of ownership?
6. Consumer perform high level of functions,
7. Department stores typically provide services as?
8. Direct mail, telemarketing, and in-home shopping
Dual channel marketing
9. When Top management reserve right of decision
Professional manager system
10. Owners are fully Invove in..
11. Information Technology does not invove in SCM when..
Performance measurement and reporting
Supply chain restructuring
Collaboration and coordination
Decision support for supply chain planning
12. Overall strategy is
Return on investment
13. New types of retail locations
Drive-thru windows and kiosks
Carts, kiosks, and wall units
Carts, booth and drive-thru windows
Retail counter, kiosks, and booths
14. NOT a commonly used method of classifying retail outlets?
form of ownership
level of service
15. Construction Material Supplier, and Catelouge Store provide level of retail service?
16. Nonstore retailing has maximum People involvement ?
17. Store location, distribution centres, warehousing, and transportation are all part of _____
18. Off-price retailing is also being done as ?
single price retailers
factory outlet stores
all of the above
19. Entrepreneurs becomes their own boss in retailing when?
20. Store need to have information for serving customers on
Past data on customer demand.
supply lead time.
delivery and shipping locations.
store inventory level, customer demand data & supply lead time
21. Store which only carries limited product line is classified as
22. Dominoz, Pizza Hut, KFC are examples of
23. When Seller engaged in Cash n Carry activity
24. Wholesaleer does not involve in
selling and promotion
buying and assortment buildin
25. Consumer -retailer- wholesaler – producer is a…
New type of channel
A retro channel
A traditional channel
26. Retailer changes the format to fullfill requirment of
27. Hypermarket operations are
None of these
28. Independent retailer runs his business with
Few locals/ family members
29. Corporate retail chain opertes as
30. Specialty stores operates with
Both (a) and (b)
31. When a Departmental Store tagets multiple Audience
32. During ressesion Sale for– will be least effective
Travel & Tour
33. Retailers are most interst in—-of consumers
34. Money left after Tax, puchasing Basic Nedds is
35. Few retailers have —competition
36. Retailers agree to buy from each other
37. Merchandise in stores are
a physical object
every thing a recieves in an exchange
38. Retail brand is an element of
39. Multi Brand produts of same category are
Product mix width
product mix consistency
product mix depth
Market item width
40. Product mix Width measured by
dimention in product line
eatures in each brand
items in product line
lines a company offers
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)