ESSENTIALS OF RETAIL STUDIES BM0208 Revision Our last lecture…

1. ESSENTIALS OF RETAIL STUDIESBM0208RevisionOur last lecture…

2. Upcoming • NO tutorial next week (physical hr for ICA) • Complete tutorial 11 & 12 on own & check answers on pbwiki • ICA 4 on 28 Jan (fri), 4.10 pm, LTD 6 (standby at 4pm- will start early if venue available.) • ICA 3 project results will be released on pbwiki on 2 Feb, 10am. Option: For review of project, you may see me at C311 10-11am as a group.

3. 28 Jan (fri), 4.10 pm, LTD 6Wait outside LT at 4am. Start at 4.10 or 4.15 pm (wait for my cue) Place bags here xx Place bags here xx Projector BH& MC BG& MD BG & MD BH& MC BH & BG - White Question Paper MC & MD - Green Question Paper Place bags here xx Place bags here xx

4. ICA4 Format • Answer ALL 3 questions (60 marks) • All Case Studies (3 x 20 marks) • Total duration is 60 minutes • The question paper carries a total of 60 marks and constitutes 30% of your module grade.

5. RULES OF CONDUCT OF ICA • 1. You are NOT ALLOWED to turn over the paper until you have been told to do so. • 2. You are NOT ALLOWED to communicate with or borrow any material from other candidates. • 3. You are to raise your hand if you wish to communicate with the invigilator. • 4. You are to remain seated and SILENT until all answer books have been collected and accounted for. • 5. If you arrive 30 minutes after the commencement of the ICA, you will not be allowed to sit for the paper. • Warning: Any candidate who cheats or attempts to cheat will be liable to disciplinary action.

6. Example : Case Study (20 marks) "We shall offer a wide range of well designed, functional Home Furnishing products at prices so low that as many people as possible will be able to afford them.“ Here in IKEA Singapore, we have systematically reduced our prices every year so that we will always be on the side of the customer. This has been made possible mainly because we use the full strength of the IKEA concept and the IKEA organization to purchase in large numbers, using the best supply chain methods to keep prices low. In the store, we request that you, the customer, do your part to shop on your own, and together, we save. Adapted from www.ikea.com.sg

7. (a)List and briefly explainFOUR (4) functions that retailers, such as Ikea undertake to increase the value of the products and services they sell to consumers. (8 marks)

8. Ans: (4 x 2 mks = 8 mks) • 1. Provide assortment of products and services (1 mk) • Ikea provides a wide selection of functional home furnishing products for customers to choose from (1 mk) • 2. Break bulk (1 mk) • Ikea orders in bulk, uses the best supply chain method to keep costs low. Thus, customers can enjoy low prices. (1 mk) • 3. Hold inventory (1 mk) • Ikea helps to store products until customers require them. The products are mainly flatten and kept in cartons to minimise storage and costs. (1 mk) • 4. Provide customer service (1 mk) • Ikea encourages self-service so as to keep costs low. However, they provide customers with tools such as pencil & measuring tapes. Staff are also stationed in the store to assist customers.(1 mk) Make sure you leave blank between answers. Write neatly

9. (b) Identify and briefly explainTHREE (3)segmentation bases that could be used to segment the market for Ikea. (6 marks) • Ans: (any 3 x 2 mks = 6 mks) • 1. Demographics (income, family life cycle acceptable) (1 mk) • The products are made affordable to cater to mass market. They could be the middle income earners or middle high customers who want to DIY (1 mk) • 2. Geographic (1 mk) • The stores are located in suburban areas- Alexandra and Tampines. Away from the city centres (1 mk) • 3. Benefits (1 mk) • The merchandise are well designed and functional (1 mk) • 4. Psychographics (lifestyle, personality) (1 mk) • Customer may like the idea of self assembly and enjoy shopping for home furnishing products (1 mk)

10. (c) Ikea is a mega store that reaps the unique benefits of brick and mortar retail experience for consumers. ListSIX (6) of the benefits for its consumers. • (6 marks) • Ans: (6 x 1 mk = 6 mks) • Browsing • Touch and feel products • Personal service • Cash payment • Immediate gratification • Entertainment and social interaction

11. HIGHLIGHTS For main paper (DOES NOT MEAN OTHER TOPICS ARE EXCLUDED)

12. Lecture 1 :Intro to Retailing • Nature of change in retailing • E-tailing • Price Competition • Demographic shifts • Store size : Scrambled Merchandising Methods used to categorise retailers • No. of stores • Margin vs Turnover (e.g. high margin, high turnover) • Location • Size Types of Retailers – retail formats

13. Lecture 2 :Retail Industry in Singapore (I) • New Shopping Malls in S’pore • Measures taken to develop S’pore into Shopping & Lifestyle Destination • Annual Sale Event: GSS • Government Initiatives to boost Retail Industry (GEMS, retail 21) Briefly

14. Lecture 3 :Retail Industry in Singapore (II) • Understand 2 recent projects • Integrated Resort • Warehouse retailing scheme • Benefits to Singapore • Economic & community gains briefly

15. Lecture 4 : Retail Industry in Global Market • Retail Internationalization • Outlines Economic & Retail Outlook for Major Economies (emerging mkts..why so attractive) • Case Study for Major Players in the Global Market • Wal-mart (just read…) • Tesco (just read…)

16. Lecture 5 : Retail Strategic Planning & Operations Management *** • Understand components of Strategic Planning: • Goals & Objectives • Market Performance Objective • Financial Performance Objective • Strategy (means of differentiation…) (major environmental factors…e.g. Consumer Behavior, Competitor Behavior, Supply Chain, Socioeconomic, Technological) • Retail Mix • (Merchandise, Price, Advertising & Promotion, Customer Service, Layout & Design, Store location) • Operations Management • . (i.e. buying & handling of merchandise, pricing, advertising & promotion, customer service, manpower, facilities) A present for you: NO CALCULATION REQUIRED

17. Lecture 6 :Multi-Channel Retailer *** • Benefits provided by different channels (electronic, physical store, catalog) * • Resources Needed to Compete Effectively in Internet Retailing • Issues faced by multi-channel retailers • Disintermediation

18. Lecture 7: Retail Customers *** • Population Trends • Population Growth • Age Distribution • Geographic Trends • Social Trends • Education • State of Marriage & Divorce • Makeup of Household • Changing nature of Work • Economic Trends • Income Growth • Personal Savings • Women in the labour force • Widespread use of credit cards Understand the impact on retailing * • Stimulus: Refers to a cue that is external (cue) to the individual or a drive that is internal (drive) to the individual.

19. Lecture 8 : Competition in Retailing (I) *** • Retailers compete on 5 major fronts: • The price for benefits offered • Service level • Product selection • Location or access: the overall convenience of the retailer • Customer experience • Nonprice Decision* • merchandise mix • private label merchandise • other values / benefits • stockkeeping • Competitive Actions* • Overstored • Understored • Types of Competition* • Intratype & Intertype

20. Lecture 9 : Competition in Retailing (II) • Future Changes in Retail Competition • Nonstore Retailing • New Retailing Formats • Heightened Global Competition • Integration of Technology • Increasing Use of Private Labels

21. Lecture 10 &11 : Managing the Supply Chain • 8 marketing functions • How retailers add value • Vertical Marketing Channels • Corporate • Contractual • Administered • Franchising: Advantages & Disadvantages

22. Lecture 12 : Market Selection & Retail Location Analysis • Market Segmentation: measurable, Accessible, substantial • Is dividing of a heterogeneous consumer population into smaller, more homogenous groups on demographic, economic,psychographic, and behavioral characteristics. • Location of Store-based retailers • Shopping Centre: Advantages & Disadvantages (what are anchor stores?) • Non-traditional Locations • Naval Base • Office building • Theme park/ Resort • Airport • Hotel • School • Nonstore-based Retail Formats

23. Exam Technique

24. Exam Technique • Look at the marks allocated • 1 mk – identify, list : u can write in point form • if more mks – write in short sentences • Handwriting • Write clearly, reasonable font size 12 • Black or Blue pen (don’t use pencil OR pink pen) • Leave 1-2 between each answer • 1 Question 1 Page (start fresh new page) • (if examiner can’t make up what u wrote…. How to award marks? …) • Answer ALL questions

25. What if u r Absent for Main paper… • Students who are absent for ICA have to submit MC • within next 2 working days to your PEM. Inform Module Co-odinator: Ms GK Lee • Try to take main paper ( u will know why…)

26. My Advice: • Study according to the revision guidelines Lecture + tutorial • Make sure u stay healthy and alert • Plan your study calendar • Take note of time, venue • 28 Jan (fri), 4.10 pm • (1 hr) reach 10 min earlier • LTD 6 • Take the Main paper! • Score A! • Alternative Paper: • No revision • 1/ Feb (tue), 10am, C311

27. All the BEST! Good Luck Clip_BudLightInstitute.wmv