subject: Proficient in Today's Competitive Environment [print this page] Proficient in Today's Competitive Environment
In this situation it is necessary that the Indian retailers to manage costs in order to improve their efficiency, allowing them to transfer the benefits of reduced costs for customers. One method adopted by many companies from lying to staff, which can be harmful to society in the long term. On the other hand, many organizations have shown that there are better ways to manage costs. An example of the same type of revenue sharing. Few retailers have used this model to effectively manage costs.
The revenue sharing model, a strategy that allows a dealer to a prime location and the costs incurred in relation to income. Under normal conditions, when the shop was rented on the basis of a fixed amount of rent paid for the same month. If the new retail, renting can be very cumbersome for retailers if the title is just starting to pick up sales. The revenue sharing model allows brokers to operate the new store a variable number of rents.
This variable amount is calculated as sales in a given month. The increase in sales will be higher the rent will be paid this month, and vice versa. "We're in the middle of the scale of a contract under the revenue sharing model. Although this is our first agreement in most of the future of our offer would be under this model, "said Ambeek Khemka, Chairman of Vishal Retail.
The ultimate goal is to meet the needs of retail consumers and thus profit. The strategies of the case of sales leads to an appropriate range of products that help retailers meet the needs of the customer.
The American Marketing Association Merchandising defines as "the planning involved in marketing the goods right at the right place at the right time in the right quantities at the right price." By offering these "rights" effective, an organization of retail become more proficient in today's competitive environment. An inadequate range of goods can have two consequences:
The client can be persuaded to buy a replacement. The customer can go to the competition and meet their needs among the cases above, the probability of it more. Merchandising function in the retail trade is absolutely necessary. As the company goes to a high level and competition intensifies, it becomes necessary for the retailer to differentiate. Merchandising is one of the strategies for it. Most retailers, therefore, setting records at the stores in the market. He became one of the marketing strategies of the most popular today.
