Assignment Code: BRL-15/TMA/2021-22

Course Code: BRL-15

Assignment Name: IT Application in Retail

Year: 2021-2022

Verification Status: Verified by Professor

Marks: 100

SECTION A

Q1) Define visual merchandising. Describe in detail the types of visual merchandising displays.

Ans) Merchandising entails obtaining the appropriate items, placing them prominently on the chosen shelf, and determining a price for the goods that will assist the store in meeting the set goal. Thousands of things are maintained for sale in enormous stores. Retailers frequently aim to keep complementary products on hand, such as TV sets and DVD players, to help each other sell. Because the profitability of a store is mostly determined by the things sold there, merchandising becomes an important aspect of its functioning.

As a result, visual merchandising encompasses far more than just the utilitarian arrangement of space, layout, and consumer movement. Even when product similarities are overwhelming, it is a potent communicator, experience enhancer, and differentiator of the presented products. Window displays, signs, interior displays, cosmetic promos, and any other special sales campaigns are all examples of visual merchandising. Visual merchandising also gives a unique shopping experience, which enhances the likelihood of brands being purchased at the point of differentiation. Visual merchandising provides value to many products with variable prices, and it is especially successful for store brands and private labels.

Types of Visual Merchandising Displays

The following are some examples of Visual Merchandising Displays:

Window Display: Window displays must primarily reflect business identity and be aesthetically compelling in order to entice customers, as in "I must have that." Depending on the rear end of the display, there are two basic types:

1. Closed-back window displays

2. Open back window displays

Interior Display: It should be in keeping with the concept of the windows. It has an impact on consumer movement and traffic, and it should result in a complete, effective, and ergonomic aesthetic idea for the store, facilitating a pleasant experience.

The Trend Away from Window: Isolated displays are used less frequently because they take too much time and money to set up and are too far away from the item they connect to. Leading premium end stores, on the other hand, frequently use standalone visual goods displays as a form of non-store visual advertising, particularly at airports.

Point of Purchase Display: It refers to a display or item presentation that occurs at the moment where a purchase is made. The display is intended to highlight a specific product or brand name.

Industrial and Exhibition Visual Merchandising:: Visual merchandising for industry and exhibitions encompasses a wide range of visual merchandising formats. These are listed below, along with details in brackets that describe the visual goods displays in greater detail.

1. Permanent exhibits (at museums)

2. Temporary exhibits (displayed on exhibition grounds)

3. Travelling Displays (mobile promotions)

4. Outdoor exhibits (sponsored parks and store maintained public places)

5. Industrial Products Visual Merchandising (At Factory gates or outlets)

Digital Signage - An Emerging Visual Technology Trend: Digital signage has developed as one of the most innovative and adaptable visual merchandising styles, and it can be used on the internet or on a retail screen. Various interfaces are created to ensure that the consumer has the best possible interaction with the visual merchandise (virtual tours etc.). What can't be done in the physical world can be done in the virtual world with the use of technical instruments, equipment, and software. As a result, the high values are added to the tangible goods in a dreamlike way.

Q2) What is data polling? How does this function perform in MMS?

Ans) This feature is available in both MMS and POS. Data Polling is the process of transferring critical data points from MMS to POS. With MMS, the POS is almost never online. However, as network connectivity improves, POS will be able to communicate with MMS online in the near future. The head office is home to the Retailers Merchandiser. S/he conducts transactions relating to products ordering and goods movement on MMS in the Head Office, and this data is polled to the POS Server at the end of the day (night time).

At the conclusion of the day, POS software provides information about sales, cash collection, and new clients added to the loyalty programme, among other things. The data flow from the POS to the MMS is depicted in the diagram below. To exchange data, retailers either use Outlook messages or File Transfer Protocol.

The following data files are typical of a data exchange:

From Head Office to Store

1. Item Price List (PLU)

2. Privilege Customer List

3. Customer Benefits

4. Item Promotion details

From Store to head office

1. Sales Data

2. Tender Collection data

3. Store Requisition

4. Goods received directly at the store.

Data used to be polled from the store to the MMS once a day at the end of the day in the old days. With the advancement of technology and improved connectivity, this data is now polled on a trickle poll basis, which means data from the POS is sent to MMS numerous times throughout the day. This gives the Retailers Logistics team more information to select which items need to be restocked by the AM of the next business day. Because the availability of sold-out goods is taken care of, the better the restocking, the higher the prospective sales.

Q3) What do you mean by Integrated Retail Execution System? Describe the components of Store Execution System.

Ans) Task management, labour scheduling, real-time KPI and compliance monitoring, learning, and time and attendance capabilities, asset management, vendor related, and regulatory compliances are all part of a Retail Execution platform. A Retail Execution Platform, unlike traditional stand-alone solutions that retain data in virtual silos, provides a comprehensive perspective of what is occurring (or not happening), and, more crucially, what should be done about it.

For example, if a store fails to fulfil its sales objective in a given category, the system can send out an alert and assign best-practice-based remedial action immediately. Store managers and staff can become more productive with the help of these solutions. As a result, time might be allocated to places that are currently underserved. and direct their attention to the most critical issues first. With a Retail Execution Platform that is integrated. Integrated Retail Execution Platform components come in a variety of shapes and sizes.

The following are some of them:

Streamline Communication: Store managers can now access all they need in one place, using a straightforward calendar-based interface. No more sifting through several communication channels to find the most up-to-date information.

Task Management : The chores can be done only once or on a regular basis. The regular chores are repeated on a daily, weekly, monthly, quarterly, or annual basis. The system generates a task calendar and displays who is responsible for each task's completion. Some tasks may require the provision of evidence as verification of task completion.

Task Management System has the following features:

1. Scheduling / Re-scheduling of tasks

2. Reminders of due tasks by Email / SMS/ Alert

3. Automatic escalation of delayed tasks

4. Score Card for the store based on the time and in full compliance with the schedule

5. Support for many devices including smart phones and kiosks

6. Simple user interface

7. Integration with other tools such as Outlook

8. Updating of execution of tasks with evidences

9. Reports and Dashboards

Prioritize Tasks and Coordinate Planning: Corporate planners may now see all of the work that is being distributed to stores and prioritise jobs in accordance with the retailer's objectives. Lower priority chores might be rescheduled to less busy dates if stores are at risk of being overloaded on a specific day. Closed loop, two-way feedback is leveraged. When stores send emails to corporate offering ways to enhance systems, the information frequently vanishes into thin air. Store personnel can complete structured questionnaires and offer free text comments about what went well or poorly using two-way feedback. Corporate can utilise the comments to enhance operations so that things run more smoothly the next time.

Monitor KPIs: KPIs (Key Performance Indicators) may now be monitored in real time and proactively responded to. Retailers do not need to rely on paper reports to know what is going on right now, and they must institutionalise best practises for dealing with problems and opportunities. The store may monitor critical sales and operations trends and respond quickly utilising best practises incorporated in the system by tying KPIs to actions.

Work Force Management: Labor is sometimes referred to be the second most expensive expense in retail, after only the cost of things on the shelf. While this is true, labour scheduling is frequently viewed as a cost-cutting effort. Retail Execution Platforms enable retailers to factor in all of the work that must be done in the stores, from everyday operating activities to corporate-driven work such as new product releases, promotion setup, store re-sets, and so on, by integrating task management and labour scheduling. This integrated approach guarantees that stores have the correct mix of labour to execute sales-driving tasks while maintaining customer service levels that are within target. Modern scheduling systems based on cutting-edge technology may also swiftly develop schedules that take into account a large number of variables.

To suit the demands of both the business and the labour, these variables could include work regulations, employee competency, and preferences. Simplify timekeeping and attendance tracking while ensuring compliance. Retailers may save many hours per week per store correcting time cards, calculating payroll, and ensuring workers follow work and overtime standards by deploying integrated labour scheduling and time and attendance solutions. When an employee is about to break a regulation, store managers receive system notifications with prescribed corrective action, rather than having to maintain all of the information in their heads.

Self -Service Human Resource Management: Employees can use self-service tools to look up their available vacation time, switch shifts with other workers (within the regulations) and do other things without involving management. Time and attendance can also reduce "buddy punching" and other sorts of employee time fraud when used in conjunction with modern clocks that support biometric technology.

Asset Management: Retail Execution Management systems are created to manage assets by keeping track of them, changing maintenance schedules, renewing Annual Maintenance programmes, and changing on replacement and part replacement. The shop manager must first confirm that these are appropriately documented in the asset management system, and then follow the system's alerts.

Vendor Management and Inventory Control: The store manager has better control over inventory and the need to restock after implementing a Retail Execution Management system. This enables the store manager to take use of his vendor relationships to obtain the finest discounts and services. Furthermore, thanks to proper tracking, the seller is guaranteed payment.

Regulatory Compliances: The Retail Execution Management System also supports regulatory compliance. The system sends out alerts to the store manager when licences need to be renewed. The store manager only needs to enter the information once and then follow the system's prompts.

Mobile Retail Execution Management Solution: Mobile Retail Execution Management solutions are now accessible, allowing for faster decisions and better customer service. Every hour a store manager spends in the back office is an hour of potential customer and employee engagement lost. When regional and store managers can use BlackBerry smart phones to view KPIs and tasks and manage by exception. This allows them to spend more time on the sales floor, helping clients and offering leadership, rather than sitting at their desks. Regional managers don't have to waste time deciding where to focus their efforts at each location. Before they drive in their car or fly to see the stores in their region, they already know what the major issues and opportunities are.

Web Based Solutions: Retail Execution Management solutions have evolved over time from cumbersome client-server platforms that were difficult to build, manage, and utilise. Web-based solutions nowadays are considerably easier and faster to adopt than traditional corporate solutions, taking only three or four months instead of years.

To ensure that the solution is simple to understand and use, software developers have invested a large amount of time and money on user interface research and development. Retail leaders should investigate Retail Execution Management software. They not only make their shop operations more effective, but they also ensure that their carefully planned retail strategy is implemented correctly in all of their stores.

Other Technology Integration: Integration with technology such as RFID improves visibility across the entire Retail Execution System. However, due to the expensive cost of this technology, adoption is still delayed.

Q4) Distinguish between the following:

(a) Institutional sign and informational sign

Ans) Institutional Signs: For store policies, charitable events. Display promoting the image of the store or promoting a cause supported by the store rather than promoting the store’s merchandise. They indicate store policies and other charitable events. Policies regarding shoplifting or exchange of goods once sold are some of the examples of institutional signs.

Informational Signs: For product related features/ benefits/prices.

If you have a big store like a departmental store or a mall, informational signs are a must for you. Informational signage may also be known as departmental, directional, organizational, or wayfinding signage. As the other names suggest, these signs are made and installed to help people know the different sections within the store. These signs help people to navigate and go where they want to. Some instructional signs include the ones that direct you towards the washrooms, pantry, exit, emergency exit, elevator, or a specific store or section in your space. These signs generally have concise information so that people can read while they are moving. Large, bold fonts in highly-visible colour schemes make some of the best informational signs.

(b) CRM and social CRM

Ans) CRM is made up of sales, marketing, and service/support operations that were created with the goal of moving customers through a funnel and keeping them coming back to buy more and more. Traditional CRM was heavily reliant on brands collecting data and information about their consumers, which was then entered into a CRM system. As a result, the organisation was able to effectively target different types of clients. PR currently plays an important role in social CRM (in fact, PR often has budgetary control and responsibility over social initiatives before any other department). In most companies, public relations departments are in charge of managing brands' social media presence as well as customer involvement.

Next, we can see that advocacy and experience are important components of social CRM, which all revolve on the customer. You can see in the first CRM graphic that the customer isn't truly a part of CRM—no there's collaboration or relationship. That has all changed in the world of social CRM. In fact, the client is at the centre of how a business runs. Instead of marketing or pushing messages at customers, organisations are increasingly conversing with and collaborating with them to solve business challenges, empower customers to define their own experiences, and develop customer connections that will hopefully grow into customer champions. It's critical to remember that social CRM isn't a new "thing" that will eventually replace CRM; rather, it's an evolution of what CRM has always been.

(c) Business intelligence and mobile business intelligence

Ans) Business Intelligence

It's the "computer-based strategies for spotting, digging up, and analysing 'hard' business data, such as sales revenue by items or divisions, as well as corresponding expenses and revenues." Business intelligence systems provide insights into the past, present, and future activities of a company. Reporting, online analytical processing, analytics, data mining, benchmarking, text mining, and other tasks of business intelligence technology are common. Business intelligence's main goal is to aid in improved business decision-making. Business intelligence analyses largely internal and organised data using technology, procedures, and applications. Microsoft Excel is a popular business information application.

The following are some of the goals of BI implementations:

1. Understanding of a firm’s internal and external strengths and weaknesses;

2. Understanding of the relationship between different data for better decision making;

3. Detection of opportunities for innovation; and

4. Cost reduction and optimal deployment of resources.

Big Data: Big data refers to data sets that have grown so huge (in the petabytes and beyond) that they are difficult to manage with typical database administration methods. Big data, to put it simply, is a massive amount of unstructured and semi-structured information.

Data volume + flow velocity + noise to signal conversion is a difficulty. Big data is giving birth to new tools that combine a lot of computing power, parallelism, and statistical, machine learning, or pattern recognition techniques.

Corporate Performance Management Software: Organizations can measure business results using corporate performance management software and performance management ideas like the balanced scorecard. These ideas also make it possible for businesses to track their progress toward their objectives in order to enhance their financial performance.

Data Visualization Tools: Mashups, executive dashboards, performance scorecards, and other data visualisation tools should all be considered.

Mobile Business Intelligence

As the form size becomes adequate for BI, business analytics solutions for "always-on" 3/4G enabled mobile devices – tablets, smart phones – are becoming more common. Firms are progressively developing cutting-edge dashboard solutions for iPads. Senior management can use the "post-desktop" apps to get intuitive interactive access to the company's most significant business KPIs and deal with data overload. Tablets, 3G wireless, and next-generation displays have enabled new levels of productivity and improved ways to consume data, execute ad-hoc searching, and plan scenarios. Dashboards, heatmaps, and scorecards for iPads, iPhones, and Androids are simple, appealing, and powerful, and they can be accessed at any time and from any location. It's the ideal combination for senior executives, sales teams, and even customers.

Mobile devices are a good fit for BI (and Information Management). Managers, blue and white employees all spend a significant amount of time away from their desks. The majority of people are moving from one location to another by walking or driving. These mobile workers are the ones who require the most up-to-date information. They require mobile BI to access data in order to make real-time decisions, monitor operational processes, and analyse process dashboards.

Consumerisation of business analytics combined with So-Lo-Mo (social, local, mobile) convergence is an inexorable trend, with 500 million smartphones shipped in 2011.

Killer apps — In the most recent quarter, Apple sold a remarkable 20.34 million iPhones and 9.25 million iPads. By 2012, it is expected that 100 million tablets will have been sold. For many years, one of the most common complaints about analytics and information management has been that it is difficult to consume, that charts and data are overwhelming, and that devices are not safe. Mobile BI tackles these issues. That is no longer the case. Tablets are ideal for mobile BI since they are small enough to carry yet large enough to be useful. Many experts were taken aback by the iPad's early success in business intelligence.

Many businesses are using the iPhone, iPad, and Android phones to boost productivity by using business-driven, data-rich mobile BI apps that change the way mobile executives and field workers consume data and make informed business choices. Apps are becoming more sophisticated (richer graphics and more easily digestible information on demand) as mobile becomes a "must-have" channel rather than a "nice-to-have" afterthought), which further fuels adoption. We're moving away from the "shrink to fit" strategy of merely reducing existing business apps for the smaller mobile screen. Shrink-to-fit is a common approach among large BI vendors that has generated negative feedback from users.

(d)Arithmetic Logic Unit and Control Unit

Ans) The Arithmetic Logic Unit (ALU) accepts data and instructions from the computer system's memory unit and executes all addition, subtraction, multiplication, and division calculations and comparisons. It can also conduct logical operations such as greater than, less than, and equal to, and then send the results back to the memory unit.

Control Unit

The control unit takes on the role of a manager. It is in charge of coordinating and controlling the numerous components of a computer system. It executes a program's instructions in the desired order, one by one. It translates each instruction and then sends it to one of the units, such as input, output, storage, or the ALU, for execution.

Output Unit: The data that is processed by the ALU and stored in the computer system's memory unit (in computer language) is delivered to the output unit. The output unit turns the data into a format that the user can understand. Typically, the output is provided in one of two ways: on the display device or on paper (hard copy).

Q5) Write short notes on the following:

(a) Data Base Management System

Ans) Without a database management system, no information system is complete. Data, management tools, and systems make up database management systems. Data, as we all know, is a collection of raw facts. When it is specific to a company, it becomes raw data representing the company's occurrences. A data base, on the other hand, is a site where information is stored, as the name suggests. It is a collection of connected data that is made available to a variety of people for varied purposes.

Furthermore, for the specific organisational objective, several tools or technologies are employed to manage this data. When these two are combined, database management is created. As a result, a database management system (DBMS) is software that enables a computer to perform database activities such as storing, retrieving, adding, deleting, and updating data as needed. A database management system (DBMS) is a set of computer programmes that allow users to save, edit, retrieve, or extract data from a database. Database applications include computerised library systems, automated teller machines (ATM), transportation reservation systems, banking systems, and computerised inventory systems.

(b) Work Force Management

Ans) Labor is sometimes referred to be the second most expensive expense in retail, after only the cost of things on the shelf. While this is true, labour scheduling is frequently viewed as a cost-cutting effort. Retail Execution Platforms enable retailers to factor in all of the work that must be done in the stores, from everyday operating activities to corporate-driven work such as new product releases, promotion setup, store re-sets, and so on, by integrating task management and labour scheduling. This integrated approach guarantees that stores have the correct mix of labour to execute sales-driving tasks while maintaining customer service levels that are within target. Modern scheduling systems based on cutting-edge technology may also swiftly develop schedules that take into account a large number of variables.

To suit the demands of both the business and the labour, these variables could include work regulations, employee competency, and preferences. Simplify timekeeping and attendance tracking while ensuring compliance. Retailers may save many hours per week per store correcting time cards, calculating payroll, and ensuring workers follow work and overtime standards by deploying integrated labour scheduling and time and attendance solutions. When an employee is about to break a regulation, store managers receive system notifications with prescribed corrective action, rather than having to maintain all of the information in their heads.

(c) Loyalty Management

Ans) "Loyalty is a favourable conviction in the value that a company and its products and/or services provide that develops over time via repeated interactions and leads to continued interactions and purchases." Loyalty is described as a customer's long-term devotion to a business, as seen by repeat purchases, increased wallet share, and favourable word-of-mouth recommendations. According to research, when a corporation can command such devotion, the rewards include, but are not limited to, increased income.

Customers who are loyal go out of their way to use the company's services. Increased usage leads to increased revenue. Word of mouth is widely acknowledged as the most powerful form of endorsement for a company's product, service, or brand. Today's customer interacts with retailers on a regular basis, whether it's while shopping for groceries, buying clothing, or sipping coffee. He is up against a slew of comparable products, many of which are offered at nearly identical prices in other stores. This commoditization has resulted in a retail environment in which brand value has been diminished and consumers freely shop around competing stores.

Consumers in the retail sector frequently visit various stores. The retailer faces a difficult task in retaining his customer base while increasing his share of wallet. Loyalty programmes are one of the methods used to boost repeat purchases. The retail loyalty market is quite large. Loyalty programmes have grown commonplace in various industries, such as grocery stores. A typical loyalty programme seeks to give you a competitive advantage while keeping your profit margins intact. A loyalty programme is designed to reduce the cost of switching, boost consumer share of wallet, and ensure recurring purchases.

Despite their widespread use, loyalty programmes, especially in retail, have failed to produce the desired effects. Customers with low switching costs are more likely to have several loyalty cards and shop at different stores depending on their needs. Because there is no clear segmentation, businesses wind up giving discounts to every new member who joins the programme, boosting bargain shopping while raising costs. Due to strategic or technological failure, loyalty programmes may not be able to achieve the expected effects. While it is possible to call failure to differentiate members based on their intrinsic value strategic, The success of a well-designed programme is hampered by inflexible systems with high maintenance costs and weak integration capabilities.

(d) Cross Channel Execution

Ans) Buyers communicate with the retailer through a variety of means. As users move across channels, they want a consistent and smooth experience. Anyone who has ever worked on a customer experience effort understands how difficult it can be to solve this issue. By facilitating cross-channel (inbound / outbound, online / offline) execution and assisting the company in compiling comprehensive marketing communication and response records, campaign management tools are invaluable. Companies can use these capabilities to ensure message and treatment consistency, as well as providing the seamless experience customers expect when interacting with the company.

Campaign management should specifically facilitate cross-channel execution by offering:

Inbound fulfilment tools that capture real-time contextual information from websites, call centre representatives, and kiosks, and forward offers to be presented immediately during a current interactive session; outbound fulfilment tools that support list creation for delivering mail-ready files to letter shops and fulfilment houses, high-volume email execution, and smooth integration with third-party vendors for fulfilling to any outbound channel.

Store / branch managers and other field marketers can use distributed marketing tools to execute campaigns, allowing them to take advantage of their proximity to the customer while staying within the framework and rules set by your central marketing organisation; lead and response management tools can capture, score, and quickly route leads and responses to marketing contacts.

Q6) Briefly comment on the following:

(a) Technology is much more than just computer.

Ans) Information technology and computers are frequently used interchangeably. It's crucial to remember that IT isn't just a computer system; it's a lot more. The convergence of various hardware, software, telecommunications, networks, multimedia, images, the internet, applications, and people is known as information technology. Information technology has a huge impact on every aspect of our lives. Our daily lives, whether personal or professional, are becoming increasingly mechanised or automated. The primary advantage of information technology is that it allows people to accomplish whatever they want. The use of computers and technology to regulate and manage information is known as information technology.

Any tool that decreases human effort and makes it easier to do any work that needs more physical and mental effort is referred to as technology. Technology is the creation, application, and understanding of tools, processes, systems, or organisational procedures in order to solve a problem or fulfil a goal. Technology is affecting every aspect of life, improving health, services, and security, as well as establishing trust in numerous economic activities. The majority of firms are able to receive cash for sales immediately thanks to recent electronic financial transfers using the internet as a medium.

(b) Networks and telecommunications are the important components of information systems.

Ans) It is critical to have a basic understanding of networking and telecommunication in the retail industry. The term "network" merely refers to the connectivity of people, but in this case, "network" refers to a computer network, in which a set of computers is linked together to share information. Networking is when two or more computers are connected to share files and documents and send communications. In the 1960s, Leonard Kleinrock was one of the first to build network systems based on data packets. In September 1969, his Host computer became the Internet's first node. Cloud computing technologies make innovative use of computer networks. When it comes to executing apps, local PCs no longer have to do all of the heavy lifting.

Instead, they are handled by the cloud's network of computers. Telecommunication is the use of electronic methods to send and receive data over long distances. Telecommunications is a broad phrase that refers to a collection of technologies that aid in the transmission of data over long distances. For example, one person can convey any information by electronic means to another person who is located at a different location. Telecommunications include mobile phones, landline phones, radio, television, satellite phones, and the internet.

Telecommunications network is a collection of terminals, links, and nodes that connect to enable telecommunication between two or more users of network terminals. Any form of technology, such as circuit switching or message switching, can be used in a network. A unique address is required for each network terminal in order for messages or connections to be delivered to the relevant recipients. The address space refers to the collection of network addresses.

(c) E-tailing is a new concept in India and online retailing is a tedious task here.

Ans) In India, e-selling is a relatively new concept, and internet retailing is a time-consuming process. Electronic retailing (e-tailing) is a buzzword that refers to any online business-to-consumer (B2C) transaction. Transactions between a business or firm (trading in goods and services) and a consumer are referred to as business-to-consumer (B2C) transactions. The sale of items through the internet is referred to as e-tailing.

Amazon and Dell pioneered the online retail market by putting the customer experience first. These encounters can range from browsing merchandise to making orders to paying for online purchases. The popularity of online shopping and selling prompted more traditional merchants to establish an online presence to complement their brick-and-mortar stores (those with a real location rather than a virtual or online presence). Although e-retailing is a distinct business model with its own set of characteristics, such as the trust model and electronic transaction procedure, By its very nature, it is a subset of e-commerce.

(d) Business Intelligence (BI) is a tool to fulfil promises to customers.

Ans) Business intelligence is a critical tool that allows businesses to deliver on their multi-channel promise to customers. The kaleidoscope (a complex pattern of constantly changing colours and shapes) of data may be turned in infinite angles using Retail BI, resulting in limitless possibilities. This aids in the analysis and application of data in the retail decision-making process. Customers today shop across various channels with ease. They travel in one channel yet shop in multiple channels before making a purchase. Their service expectations across all of these channels and communications are high, thanks to merchants' increasing capacity to turn desire into action.

Add in social media, where consumers, even if they haven't made a purchase yet, share information with their friends and family to help them make the best decision possible. Retailers are continually challenged to comprehend, anticipate, and respond to customers in a timely manner. The buyer has already moved on, pulled along by a plethora of choices supplied by other stores, if the retailer is not present, capable, and ready.

The commitment and ability of a retailer to provide customers with a seamless, coordinated, and high-quality purchasing experience across numerous channels – from social networking forums to online, in stores, mobile devices, and beyond – is critical to multi-channel retailing success. This is contingent on cross-channel operations integration and the use of cross-channel data for decision support in order to coordinate assortment planning, pricing, inventory management, and promotions across all channels. Retailers should invest in strong BI and analytical capabilities that provide decision support for multi-channel integration as a vital first step toward a scalable and successful multi-channel strategy.

Multi-Channel merchants must shift away from traditional data streams that focus on separate channels and toward a more holistic picture that includes cross-channel transactions. Top-of-the-line retail analytics solutions give multi-channel retailers cross-channel visibility and analytics, allowing them to make sense of complex channel activity such as order online/pick up in store, cross-channel order management, and fulfilment systems. They assist merchants in determining what percentage of total sales each channel accounts for and how promotional activity in one channel affects sales in another.

Q7) What is retail business intelligence? Discuss the steps which are helpful to move towards advanced customer analytics.

Ans) E-commerce, Apparel, Department Stores, Discount Drugstores, Discount Retailers, Electronics, Home Improvement, Specialty Grocery, Specialty Retailers, and Consumer Product Goods Suppliers are all part of the retail industry, which accounts for 6-7 percent of the global economy. In an already competitive retail market, the consumerization of technology is imposing more downward pricing pressure. E-commerce and other "point, scan, and analyse" technologies are putting a strain on the system. It provides shoppers with real-time pricing, promotion, and product information. Red Laser, an iPhone and Droid app, scans barcodes and provides instant price, product, and cross-retailer comparisons.

Customers can even be directed to the nearest business that offers free shipping (total cost of purchase optimization). This will result in greater margin erosion for retailers who compete on price (which accounts for a significant portion of the market in the United States, Europe, and Asia). Business intelligence (BI) technologies are frequently seen as a potential solution to this problem. Advanced analytics, on the other hand, is what distinguishes a generic BI system from one that aids retail decision-making. BI systems tailored to the retail business and powered by advanced analytics can aid in the application of mathematical functional theories in retail decision-making.

The analytics perspective adds a scientific foundation to decisions that were previously taken at random or based on observation and experience. It ensures a significantly better success rate. Because of the prescriptive and guided nature of retail-centric BI systems, as well as their out-of-the-box functionality, even inexperienced employees in the retail chain can use them. They can use these statistical tools to arrive at benefit-driven decisions in their area of operations. In the never-ending process of adding blocks to map newer business demands and analytical needs, attempting to create a BI toolkit for such analytical requirements might be hazardous, resulting in uncertainties and risks.

Steps to Advanced Customer Analytics

Build Analytics around the Customer: Multi-channel retail necessitates a completely customer-centric analytics mentality. Customer interaction and transaction data from all channels and touch points are combined in advanced analytics models. They give you a single view of your customer, from their search history to the elements that influence their ultimate purchase decision.

Use Key Identifiers: Customer names or IDs, promotion codes, order numbers, payment identifiers (such as credit card information), and cookies should all be set up. They assist merchants with recognising their customers, tracking their purchases across several channels, and gaining a better understanding of how they engage and buy. These multi-channel customer data can be used to improve assortment planning, merchandising, pricing, and promotion strategies across channels.

Consider Clickstream Data: Electronic channels generate clickstream data, which is combined with data from in-store monitoring to create shopping route analysis. They allow retailers to connect customers' search behaviour to their final purchase and answer critical questions like:

1. How do clients who shop across several platforms plan or interact with their purchases?

2. Is the anticipated brand experience delivered to customers at every point of contact with the retailer?

3. How are customers affected by price and promotion changes across channels?

4. Is there a difference in the importance of different channels at different stages of the purchase process?

5. In each of these stages, how should merchants carry out their strategy?

Build Teams around the Way Cross Channel Retail Works: Retailers targeting long-term multi-channel success have implemented adjustments to procedures, roles, and responsibilities across the board. These enable cross-channel synergies and decision-making alignment across channels. Many multi-channel players will devote their efforts on reorganising teams, bringing in new skill sets, and overseeing enterprise-wide change management in order to integrate cross-channel thinking from the top down.

Discover Value in a Kaleidoscope of Data: To evaluate data and find trends and patterns that lead to greater sales, a variety of statistical techniques can be utilised in the proper combination. As a result, they have a direct impact on the bottom line and earnings. Retailers can use these techniques to categorise customers based on the products and services they prefer, identify patterns for cross-selling campaigns, analyse and target customers based on product-centric purchase histories and patterns, plan multi-product promotions based on customer response, calculate customer likelihood to buy additional products, measure shifts in customer behaviour and locations, compare segments – the possibilities are endless.

Realize the Connection: Shoppers who buy one product frequently (for example, burgers) are more likely to buy a couple of other similar products, according to retailers (for example, soft drinks and fries). The level of affinity that exists between the products contributes to this chance. While some product affinities, such as the one above, are evident to spectators and may be deduced using common sense, others, such as the one above, are not. Others may go undetected without the use of data mining techniques. Customers who buy Barbie dolls at Wal-Mart, for example, are 60 percent more likely to buy one of three varieties of candy bars. The enigmatic relationship between the two products is to blame for this matched purchasing behaviour.

Look for the Story in Every Shopper’s Basket: The ‘market basket' is the collection of products purchased by a shopper during a single shopping excursion. The various items in a market basket are correlated with each other with varying frequencies, presenting a picture of what may have prompted the shopping trip: running out of a couple of key cooking ingredients, assembling all necessary items for an exotic meal or a birthday party, preparing to entertain guests, stocking up on groceries for the month.

SECTION B

Q8) Explain various functions of Merchandise management system. Seeing the growth of retail industry, it can be safely said that future of MMS is bright in India. Comment upon this statement.

Ans) Retailing Company has 4 principal Tasks involving merchandise:

1. Procurement

2. Storage

3. Distribution

4. Sales

And the MMS, in conjunction with the Point of Sale, the Financial / Accounting package, and the Customer Loyalty programme, supports all of the above four activities directly or indirectly. Running a firm without MMS would be equivalent to piloting a jet without an instrument panel. MMS' reporting capabilities inherent in the programme give the necessary guidance. Retailers generally invest in a more powerful Business intelligence platform for more KPIs.

The various functions/features of a Merchandise Management System (MMS) in retailing are as follows:

1. Product Definition

2. Location Hierarchy

3. Merchandise Calendar (Time zones)

4. Placing the order on the vendor who supplies the relevant Merchandise

5. Tracking order fulfilment

6. Receiving the merchandise in the Distribution Centre (DC)

7. Merchandise should be stored in the DC in such a way that it is easy to replenish the merchandise ordered by the retailers.

8. Transfer of merchandise between various store / DC locations

9. Return to Vendor defective stocks / Excess stock in the inventory.

10. Analyse Sales and inventory statements for Stores as well as DC.

Future Roadmap for MMS

Although the Merchandise Management System (MMS) is a relatively new concept in retail, it is impossible to run a retail store, particularly one that is well-organized, without it. It will become the backbone of any retail establishment in the near future. Although technological improvements have made it a vital source of information for a retailer, there are specific areas where the retailer should update his MMS system in order to keep up with changing technologies.

Sales Promotion

As shops compete for market share, they show their desperation by offering innovative incentives that many MMS systems fail to accommodate from a technical standpoint. With more merchants catering to the same catchment area or market region with the same product, they tend to come up with offers / promotions that have an unusual combination, which most MMS and POS systems struggle to handle.

Here are a few of the instances. All promotions are normally defined on the MMS system and then transmitted to the POS software as a data file.

1. Buy x qty of z item get y % off.

2. Buy x qty of z item get y value off.

3. Buy x qty of z item get y qty of z item free.

4. Buy x qty of z item get d item free.

5. Buy x qty of m attribute item get y% off on min value item.

6. Buy x qty of m attribute item get y value on min value item.

7. Buy x qty of z item get a gift voucher of y value.

8. Buy b value of goods get y% off.

9. Buy b value of goods get y value off.

10. Buy b value of goods get z item free.

11. Buy b value of goods get d item free.

12. Buy b value of goods get a gift voucher of y value.

13. Buy b value of x brands and get a holiday package to Shimla free.

14. Buy b Value of m brands within x period and win a chance to go to Singapore.

To make matters even more complicated, one of these specials will only be valid on a select few items within a brand or department, such as Shirts and Trousers. Several MMS packages now on the market struggle to capture these promos, posing a challenge for retailers who rely on specific MMS software to manage their businesses. Now, if his competitor (another) has considerably more capable software, the retailer's odds of losing business to another retailer are fairly significant. In the near future, software product businesses will focus on bridging the gap between the needs of retailers and the requirements of this module. With a renewed focus on winning market share, a number of retail organisations have begun to consider alternative sales channels such as Ecommerce and catalogue sales.

Integrated MMS

The majority of the Merchandise Management Systems currently on the market do not fully support the Ecommerce Initiative. Ecommerce and brick-and-mortar retail are not the same thing. Customers who shop on an ecommerce site want the site to be set up in such a way that it only displays the goods categories that they want to look at and buy. This expectation is at the individual level, although it is significantly higher in a brick-and-mortar store (Customer segment level). Second, Ecommerce operations differ significantly from those of a traditional brick and mortar store.

For example, if inventories run out at a brick-and-mortar store, the item does not appear on the shelf; however, MMS must support the Ecommerce site as a back end to avoid the display of merchandise that is out of stock.

Second, today's Ecommerce expectations include integration with horizontal marketing solutions like social networking sites. As clients become more open about their shopping experiences or what garments they bought for a specific occasion, such system requirements are increasing.

With the convergence of the computer and the mobile phone, MMS is now expected to provide back-end support for merchandising on a variety of digital devices, including Tablet PCs, IPADs, and touch-screen phones. Technology is advancing at a faster rate to meet these demands.

Catalogue sales are combining with television because many marketers have realised the potential of selling something through television, where a buyer can order a product advertised on television by pressing a button on their remote. MMS must evolve to accommodate such new customer interfaces or contact points.

Retailers will evolve to offer more services around the item in addition to catering to such touch points; sales of such services will have to be handled by the MMS in the near future. For example, when selling a 55-inch LED TV, a store may wish to include insurance coverage for theft, damage, and so on, or a retailer may want to offer a loan from ABC Bank Ltd while selling an expensive watch. Such loan disbursement, EMI, and so on may need to be captured from the POS in a retail store, or simply assist the consumer in purchasing movie tickets at the POS counter.

Q9) What is loyalty management? What are the common features of retail loyalty? Discuss the types of loyalty programme.

Ans) "Loyalty is a favourable conviction in the value that a company and its products and/or services provide that develops over time via repeated interactions and leads to continued interactions and purchases."

Loyalty is described as a customer's long-term devotion to a business, as seen by repeat purchases, increased wallet share, and favourable word-of-mouth recommendations. According to research, when a corporation can command such devotion, the rewards include, but are not limited to, increased income. Customers who are loyal go out of their way to use the company's services. Increased usage leads to increased revenue.

Word of mouth is widely acknowledged as the most powerful form of endorsement for a company's product, service, or brand. Today's customer interacts with retailers on a regular basis, whether it's while shopping for groceries, buying clothing, or sipping coffee. He is up against a slew of comparable products, many of which are offered at nearly identical prices in other stores. This commoditization has resulted in a retail environment in which brand value has been diminished and consumers freely shop around competing stores.

Types of Loyalty Programme

According on the nature of the incentive, there are two sorts of loyalty programmes: monetary and non-monetary.

1. Customers are awarded with points for each transaction in the case of monetary incentives, and these points can be exchanged for cash at the retail location.

2. In the case of non-monetary incentives, higher patronage entitles customers to a variety of benefits.

Exclusive Loyalty Programs and Coalition Loyalty Programs are two alternative ways to categorise Loyalty Programs.

1. Customers can earn points at a specific store or chain of stores in the case of exclusive programmes.

2. In the case of coalition loyalty, numerous retail and non-retail partners collaborate to deliver the programme. Customers can earn points at numerous retail shops, gas stations, and credit card companies through the PAYBACK alliance loyalty programme, for example. The points gained can be redeemed at a variety of member locations.

Features of Retail Loyalty Programme

Customer Profile: A loyalty programme allows retailers to have a better understanding of their customers beyond the normal anonymous transactions. If businesses want to undertake any type of segmentation, they'll require customer profile data such as contact information, demographic information, shopping preferences, and previous purchasing behaviour.

Cross Channel Member Enrolment and Redemption: Because the store associate has a limited amount of time to devote to member enrolment, the enrolment process should be built in such a way that it takes as little time as possible to enrol a new member. Offline registration appears to be the most popular method of registration. Retailers are also experimenting with self-registration via the internet. In any channel, members should be able to earn and burn points. The programme should be adaptable enough to deliver a consistent experience to customers regardless of whatever channel they use.

Perform Extensive Segmentation & Targeted Marketing: Because the store associate has a limited amount of time to devote to member enrolment, the enrolment process should be built in such a way that it takes as little time as possible to enrol a new member. While off-line manual registration appears to be the most popular method, shops are also experimenting with online self-registration. In any channel, members should be able to earn and burn points. The programme should be adaptable enough to deliver a consistent experience to customers regardless of whatever channel they use.

To map a customer's genuine worth to a tier/segment, substantial segmentation is required in order to improve happiness of high-value customers and raise profitability of low-value customers. Retailers utilise targeted promotions that are tailored to the needs and interests of each consumer category. The methods used will vary depending on the sort of commodities sold, the value of each customer, and the customer segments served, among other factors. The goal is to achieve a high response rate for the campaign while also increasing the effectiveness of the promotion.

Quick Promotion Creation: The goal of the loyalty programme is to give the retailer a competitive advantage. A retailer must constantly alter and evolve his programme as customers' wants, business requirements, and competitors' products change in order to keep that lead. The ability to bring in the proper promotion at the right moment is critical to the promotion's success. The programme should be flexible enough to allow for the quick setup of promotions as needed by the market (for example, to stimulate sales of highly seasonal products or customer behaviour over a specific time period).

ROI Analysis: Customer loyalty programmes provide retailers with intangible benefits such as greater brand equity and reputation. Other measurable and real benefits, such as reduced pricing competition, increased customer retention, increased share of wallet, and increased footfall, must be recorded to determine the program's effectiveness. The shop will want to track marketing investment (cost of campaign and cost of loyalty) and identify the most successful member segment, at the very least.