Tag: Management Innovation

A change agent, also known as an advocate of change, is a person who acts as a catalyst for the change management process. They help an organization, or part of an organization, transform how it operates by inspiring and influencing others. A change agent will promote, champion, enable, and support an organization’s change implementation.

A staffing agency is an entity that has staff that can be employed out for temporary or long term work. A staffing agency is additionally referred to as an employment agency. It provides temporary staff. Some agencies are industry targeted or specialised. For instance, The Strategic CFO’s staffing line focuses on accounting and financial positions.

Responsibilities:

• Understand and have deep knowledge about the workload needs of client companies
• Analysis and determine the workforce requirement and try to meet the same.
• Conducting different levels of interviews and shortlisting the candidates accordingly.
• Generate contracts and keep eye on legal issues.
• Detail knowledge about the potential candidates and their background history.
• Conduct training in case of any gaps.
• Taking continuous follow-up and checking the performance of temporary workers.

Role:

• Communicating how change is beneficial for both the organization and employees.
• Listening to the involved team members and employees to gain feedback and incorporate it in the implementation process.
• Understanding employees’ reactions to change and reducing resistance to change.
• Actively engaging with employees by conducting change management exercises.
• Encouraging and supporting employees to become change champions and promote it.
• Identifying and leading other change agents and change consultants to success
• Providing feedback on challenges facing the change management lead.

Services offered:

Contingency search

If you are trying to employ somebody for a vacant position, you may play out a contingency search with a staffing firm. Staffing firms are paid uniquely for fruitful searches; instalment is usually a level of the applicant’s beginning compensation.

You ought to expect a discount on the charge or substitution if the competitor doesn’t keep going for a predefined time frame at your organization.

Agreement recruiting

An organization is expecting to enlist a massive volume of representatives who may pick an agreement scout. Under this game plan, an HR expert is engaged by a staffing company to join a customer organization.

The agreement selection representative will work at the customer organization, during the course of the customer organization. Commonly the staffing firm and agreement enrollment specialist are paid dependent on a concurred hourly rate paying little heed to the number of competitors sourced and enlisted for the customer organization.

Agreement recruiting is regularly utilized as an option in contrast to contingency searches, and it is likewise valuable if the organization is short-staffed in HR and can profit by having a spotter on board rapidly.

Freelance or potentially contract help

This is equivalent to impermanent help; however, architects, innovation experts, and other elevated level representatives will, in general, allude to themselves as freelancers or contractual workers.

Managed services

Under this kind of course of action, a customer organization will re-appropriate a whole office or capacity (e.g., call focus or sorting room) on a proceeding with the premise. This administration functions admirably when an organization wouldn’t like to deal with a particular zone of business and can discover a staffing firm that has some specific ability in the area managed.

Skills set for NGO

Community Organizing

• Group dynamics
• Community integration
• Problem identification
• Community investigation
• Facilitation
• Mobilization
• Communication
• Role playing
• Objectivity, monitoring and evaluation

Participatory Action Research

• Identification of research problem
• Identification of different research tools
• Data gathering
• Analysis of data
• Consultation with the community and validation of data
• Drawing of conclusions
• Making of recommendations

Business Skills

• Planning
• Participatory (circular) management
• Accounting and bookkeeping
• Marketing and purchasing
• Negotiation
• Monitoring and record keeping
• Technical skill in micro-computers
• Organizing cooperatives/credit unions
• Handling labour problems
• Understanding legal aspects.

Documentation, Dissemination of Information

• Small group formation
• Clarification of values and vision
• Group dynamics
• Different kinds of media production
• Communication skills and visual aids
• Conscientization /Senticizing skills
• Advocacy
• Networking and linkages

Training Methods

• Use of cultural forms
• Use of media
• On-the-job training – participant observation
• Workshop organization
• Group dynamics
• Practice-Theory/Action-reflection
• Exposure programme
• Group discussion and synthesis, brain-storming
• Self-learning kits and modules

Technology Training: Appropriate Technologies

• Agriculture, fishing, post-harvest technology, energy, housing, health, sanitation, handicrafts, food technology.

Human Resource Management in NGO

Human Resources can be to the efficient running of their organization. Contrary to popular belief, HR is not just a department that fills out forms and signs off on sick-leave. There is so much more to it, in fact, when HR does a good job, they act like the glue that keeps the company together. NGOs are no different. The reason for this is because just like any other business, one of their main resources is provided by humans. And as such this valuable resources needs to be managed accordingly. Thanks to some major problems faced by NGOs, HR is more important now than it has ever been in the past.

Expert recruiting

Remove some of the pressure when filling positions, get your HR team on the case. Most Human Resources individuals have extensive experience in recruiting and employer branding. They will also be able to implement many automated processes which should remove erroneous applicants and attract more of the top talent. If you have a smooth process and an excellent employer brand you’ll start to see more skilled workers apply for vacancies.

Training and Development

A lot of the time most managers are too busy to properly train or develop their staff. It’s just a simple fact and an unfortunate consequence of the “doing less with more” mentality. More and more these days, the responsibility of training and development seems to lie with the HR department. A good HR professional will be well equipped to deal with career management and organising skills training for an NGO. If NGOs offer a great training program, they will see more of the top talent and fewer resignations.

Organization

We mentioned before that a great HR team acts as the glue of an organization, and that’s usually true. In the sense that they ensure a smooth operation and that the overall corporate culture is well organized. Some people will thrive in chaos, but most don’t. The HR department will ensure proper on-boarding, off-boarding and operations within a company. HR are there to ensure new employees are made to feel welcome and are shown how things work, who people are, the general vibe etc.

Motivation

This is another part of the glue, a positive HR person can have a tremendous impact on the motivation of an organization. Motivation can be hard to come by in a regular company, let alone an NGO. NGOs need to keep their people engaged, involved and motivated and the best way to do that is with an effective HR team.

Addressing the human needs

All employees have what’s called human needs, and NGOs need to effectively address those needs if they are going to retain their staff. An enlightened HR manager knows just what it takes to keep someone on board and happy they need to keep the humanity in HR. This is simple enough to do so long as you address the basic human needs, which are: the need to be appreciated, the need to belong and the need to feel like you’re making a meaningful contribution. If an NGO addresses these needs, it will help solve the problem of staff retention.

The National Human Rights Commission (NHRC) of India is a statutory public body constituted on 12 October 1993 under the Protection of Human Rights Ordinance of 28 September 1993. It was given a statutory basis by the Protection of Human Rights Act, 1993 (PHRA). The NHRC is responsible for the protection and promotion of human rights, defined by the act as “Rights Relating To Life, liberty, equality and dignity of the individual guaranteed by the constitution or embodied in the international covenants and enforceable by courts in India”

Functions of NHRC

The Protection of Human Rights Act mandates the NHRC to perform the following:

• Proactively or reactively inquire into violations of human rights by government of India or negligence of such violation by a public servant
• The protection of human rights and recommend measures for their effective implementation
• Review the factors, including acts of terrorism that inhibit the enjoyment of human rights and recommend appropriate remedial measures
• To study treaties and other international instruments on human rights and make recommendations for their effective implementation
• Undertake and promote research in the field of human rights
• To visit jails and study the condition of inmates
• Engage in human rights education among various sections of society and promote awareness of the safeguards available for the protection of these rights through publications, the media, seminars and other available means
• Encourage the efforts of NGOs and institutions that works in the field of human rights volunteerly.
• Considering the necessity for the protection of human rights.
• Requisitioning any public record or copy thereof from any court or office.

Composition

The NHRC consists of: The chairperson and five members (excluding the ex-officio members)

• A Chairperson, who has been a Chief Justice of India or a Judge of the Supreme Court.
• One member who is, or has been, a Judge of the Supreme Court of India and one member who is, or has been, the Chief Justice of a High Court.
• Three Members, out of which at least one shall be a woman to be appointed from amongst persons having knowledge of, or practical experience in, matters relating to human rights.
• In addition, the Chairpersons of National Commissions viz., National Commission for Scheduled Castes, National Commission for Scheduled Tribes, National Commission for Women, National Commission for Minorities, National Commission for Backward Classes, National Commission for Protection of Child Rights; and the Chief Commissioner for Persons with Disabilities serve as ex officio members.

The sitting Judge of the Supreme Court or sitting Chief Justice of any High Court can be appointed only after the consultation with the Chief Justice of India.

Limitations:

• NHRC does not have any mechanism of investigation. In majority cases, it asks the concerned Central and State Governments to investigate the cases of the violation of Human Rights
• It has been termed as ‘India’s teasing illusion’ by Soli Sorabjee (former Attorney-General of India) due to its incapacity to render any practical relief to the aggrieved party.
• NHRC can only make recommendations, without the power to enforce decisions.
• Many times NHRC is viewed as post-retirement destinations for judges and bureaucrats with political affiliation moreover, inadequacy of funds also hamper its working.
• A large number of grievances go unaddressed because NHRC cannot investigate the complaint registered after one year of incident.
• Government often out rightly rejects recommendation of NHRC or there is partial compliance to these recommendations.
• State human rights commissions cannot call for information from the national government, which means that they are implicitly denied the power to investigate armed forces under national control.
• National Human Rights Commission powers related to violations of human rights by the armed forces have been largely restricted.

NHRC and its Role

The National Human Rights Commission (NHRC) is an independent commission set up by law in 1993. Like judiciary, the Commission is independent of the government. The important objective of the Commission is to protect the human rights. Its functions are:

i) To spread human rights literacy among various sections of the society through media and seminars.

ii) To undertake and promote research in the field of human rights.

iii) To inquire suo-moto or on a petition presented to it by a victim or any person on his behalf.

The advent of information technology has significantly impacted the way retailers do their business. POS informs retailers of the details of sales transactions: what item was sold, where the transaction occurred, at what price, what employee performed the sale, and information about the customer making the purchase. Supply chain management systems (SCM) track the origin of the product even before it arrives at store or warehouse (and will be discussed in more detail in the next section). Financial data systems provide management with data concerning the organizations profit and loss factors. Human resource systems (HRS) keep track of employees: status, title, employment type, salary, address, etc. Customer relation management systems (CRM) track customer information and will be discussed in a later section.

Retail information systems:

For any retail strategy, gathering and reviewing information is valuable. For this, retailers use the RIS (Retail information systems) which anticipates the information needs of retail managers; collects, organizes, and stores relevant data on a continuous basis; and directs flow of information to the proper decision makers.

As computer technology has become more sophisticated and less expensive, more retailers are developing comprehensive information systems. 2 very popular systems are:

• UPC- Universal product code, and
• EDI-Electronic Data Interchange.

Also, to improve inventory planning and forecasting, a new program is now in place. It is called CPFR- collaborative planning, forecasting and replenishment. Also gaining importance is the concept of Database Management, which is used to gather, integrate and apply information related to specific areas.

Database Management consists of:

Data warehousing: Here, the copies of all databases in the company are stored in 1 location and are accessible to any employee anywhere.

Data Mining & Micromarketing: Data Mining involves the in-depth analysis of information to gain specific insights about customers, products, vendors etc. Micromarketing is an emerging application of data mining whereby the retailer uses differentiated marketing and develops focused retail strategy mixes for specific customer segments.

Non-traditional retailing: The various new forms of non-traditional retailing are as follows:

The World Wide Web:

The Web is a useful tool for retailers as it projects a retail presence, helps to generate sales, and most importantly, provides information to customers.

Following are examples of e-tailing:

• Shopping robots, called ‘bots’ are computerized comparison programs that enable online shoppers to search 100s of sites and obtain the best price. They have resulted in a shift of power to the consumer.
• Electronic banking is the hottest thing in service retailing. It helps customers to transact 24 hours a day, 7 days a week at a variety of locations. It includes modern facilities like ATMs, electronic debit payments and smart cards.
• Besides, things like electronic gift certificates and interactive electronic kiosks are modernizing the shopping experience of customers.
• Retailers like Amazon.com, Wal-mart & Fabmart.com are leaders in web-based retailing.

Other emerging, fast-growing nontraditional retail institutions are:

Video Kiosks:

The video kiosk is a freestanding, interactive, electronic terminal that displays product related information on a video screen. Although some video kiosks are located in stores to enhance customer service, others enable customers to place orders, complete transactions and arrange for products to be shipped.

Airport Retailing:

One of the fastest growing sectors in retailing. Today, at virtually every airport, there are full blown shopping areas. Some of its features are as follows:

• The group of prospective shoppers is rather large.
• Air travellers are a temporarily captive audience, looking for a way to fill their time.
• Sales per square foot of retail space at airports are usually 3-4 times higher than at regional malls.

Objective of Retail Information System

• An information system should provide relevant information to retail manager regularly.
• An information system should anticipate needs and requirement of the retail manager.
• An information system should be flexible enough to incorporate constant evolving needs of the consumer market.
• An information system should be able to capture, store and organize all the relevant data on a regular and continuous basis.
• The retail Information systems should be aligned with strategic and business plans of the organization. Therefore, it should be able to provide information, which supports and drives this objective.

Characteristics of Retail Information System

• Retail Information systems Information systems. Retail Information systems should connect all the stores under the company’s
• Retail information system should allow instant information exchange between stores and management.
• Retail information system should handle the various aspect of product management.
• Retail information system should handle customer analysis.
• Retail information system should allow the store manager flexible pricing over a financial year.

The word ‘Retailer’ had been derived from the French word ‘Re-tailer’ which means ‘to-cut again’. Obviously then, retailing means to cut in small portions from large lumps of goods. A retailer is last middlemen in the chain of distribution of goods to consumers. He is a link between the wholesalers and the consumer.

The American Marketing Association defines retailing as “the activities involved in selling directly to the ultimate consumer for personal and non-business use. It embraces direct-to-customer sales activities of the producer, whether through his own stores or by house-to-house canvassing or by mail-order business. The retailer is an intermediary in the marketing channels and is a specialist who maintains contact with the consumer and the producer and is an important connecting link in the mechanism of marketing.

Characteristics of a Retailer

• In the entire distribution chain, a retailer is considered to be the final link, who deals directly with the customer.
• A retailer essentially maintains a variety of merchandise.
• A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities.
• The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.

Functions of Retailing:

• Assembling of goods from various wholesalers.
• The providing information concerning the nature and use of goods to the wholesalers and producers. It also informs as about the market trend.
• The physical movement and storage of goods for the supply to the final consumers to meet their needs and requirements.
• The standardisation, grading and final processing of goods which have been left in graded or unstandardised by wholesalers.
• The assumption of risk concerning the price, nature and extent of demand of goods as long as they remain unsold.
• The provision of ready availability of goods of various qualities and of various manufacturers.
• The financing of inventory and the extension of credit to consumers for a short period.

Pre-Requisites of Retail Trade:

The success of retail trade is based on a proper combination of the following factors:

(i) Locations:

The ultimate success of a retailer depends on the location of his shop. Proper selection of location is important for a retailer to establish his business.

(ii) Price:

A proper pricing policy can give better results for a retailer if he can combine low prices with good quality to attract consumers.

(iii) Sales Promotion:

A retailer must arrange for proper sales promotion campaigns in order to familiarise the customers of that area with his products.

(iv) Prudent Buying Principles:

Every retailer ought to be a shrewd purchaser; only then he can give his best to his customers. Careful buying earns rich dividends in retail trade.

(v) Knowledge of Merchandise:

Modern business is so complex and the variety and quality of goods being so diverse, a retailer must have adequate and latest knowledge of the wares he sells. It would not only enable him to answer customer queries satisfactorily but also to handle the complications of his business. Thus adequate knowledge of merchandise is another pre-requisite feature of retail trade.

(vi) Services:

A retailer should concentrate on his services. Courteous and prompt service on his part will help him in attracting more and more customers and thereby flourish in his business. Most retailers go in for after sale service also, where they cater to the needs of the customers after the latter has purchased a commodity from them. So efficient service should be the motto of every retailer.

(vii) Efficient Management:

Better planning, organisation and control by a retailer can offer efficient retail operations. A retailer should have a proper and adequate work-force to assist him in his business. He should always keep stocks ready for customers and even offer specialised comments on the products he deals in. If a retailer plans his inventories and works in advance, there is no doubt that he will achieve his targets and also attract more customers.

(viii) Display of Goods:

Since a retailer deals in a verity of products, he must display his goods in a proper and orderly manner. This will enable him to get what is required by the customer quickly and also help in attracting customers. The retailer must go in for tastefully decorated interiors and also have proper and attractive window-dressing and display.

The goods must be neatly and orderly stocked and the pattern of window display should be frequently changed for the better, so as to attract the customers’ eye. A retailer must not forget that a well laid out window display will help him to entice and attract customers from his rivals and competitors. Hence, proper care and attention ought to be given for display of goods out as well as in the retailer’s shop or showroom.

Functions of Retailers:

(i) Buying:

A retailer deals in a variety of merchandise and so he buys collects large number of goods his stocks from a variety of wholesalers. He selects the best from each store them and bears wholesaler and also pays the most economical price. He brings all the goods marketing risks, under one roof and then displays them in shop. Thus, he performs the twin functions of buying and assembling of goods.

(ii) Storage:

After assembling the goods, the retailer stores them in his godown so that they are held as reserve stocks for the future. Storage of goods in ready stock is also necessary.

(iii) Selling:

The ultimate aim of every retailer is to sell the goods he buys. So he employs efficient methods of selling to dispose off his products at a faster rate so that he can increase his turnover in a period of time.

(iv) Risk-bearing:

The retailer bears the risk of physical damage of goods and also that of price fluctuations. Moreover, risk of fire, theft, deterioration and spoilage of goods has also to be borne by him. Changes in fashions, tastes and demand of his customers also have an adverse effect on his sales; nevertheless a retailer does not lose heart. He bears all these trade risks which come in his way during the normal course of business.

(v) Packing:

A retailer packs his goods in small packets and containers for his customers. Occasionally he may be required to grade the goods also.

(vi) Credit:

Often retailers grant credit to customers and also bear the risk of bad debts, which go along with credit sales.

(vii) Supply Information:

Retailers supply valuable market information to both wholesalers and customers.

(viii) Advertising:

Retailers display goods and spend on advertisement also.

Retail accounting isn’t a special kind of accounting process or system, but rather an inventory valuation technique often used by retailers. It differs from “cost accounting” for inventory in that it values inventory based on the selling price rather than the acquisition price.

The retail method is an accounting method used to provide a comprehensive account inventory at the item’s retail price in order to detect losses, damages and theft of stock allowing small business owners to track costs, keep account of the goods you’re buying or selling, know how much is left over, and maintain the right amount of inventory at all times.

The retail method uses the cost to retail price ratio to estimate the value of the inventory. To calculate the value of ending inventory, you need to follow these steps:

• Maintain a comprehensive record of purchases and on-hand goods at cost price and retail price
• Calculate a cost-to-retail ratio

Formula = Cost price x 100 / Retail price

• Estimate the ending inventory at retail prices by subtracting the retail price of goods sold from the retail price of goods in inventory
• Convert the estimated inventory at retail price to cost price by applying the cost-to-retail percentage.

Advantages

• This accounting method involves easy calculations, as all units of one item have the same price and experience the same changes in the price.
• It is convenient for retailers operating multiple stores, as it can save time in conducting physical inventories.
• In retail accounting, preparing financial statements gets easier due to simple calculations.
• This method is independent of labour-intensive physical inventory counts.

Disadvantages

• This method can be inaccurate in the event of pricing changes.
• This type of accounting can be ineffective or more complex with the introduction of discounts.
• Retail accounting often involves assuming unrealistic pricing conditions and it may be unable to provide the exact price values.

Applications:

Retail accounting for discount in sales

Sometimes, retailers may offer a reduction in the cost of the product in exchange for early payment by the customer. In many cases, retailers offer a discount when they are short of cash. When a customer takes advantage of this sale and pays less than the full amount of the invoice, the retailer records the discount as a credit to a receivable account and a debit to a sales discount account.

Retail accounting for returns

If an order gets processed, delivered and then returned within the same accounting period, retailers can make the necessary adjustments to the balance sheets. When the return happens in the sales time period, it may show an extra profit in the sales. Usually, the return process involves a credit to the receivable account and a debit to the sales return account.

Uses:

1. Calculate cost-to-retail percentage

The first step involves finding the cost-to-retail percentage of a retail inventory. You require the total purchase price of the inventory and the selling or retail price. Here is a formula to calculate the cost-to-retail percentage:

Cost-to-retail percentage = (Cost of inventory / Retail price of the inventory) x 100

For example, if a store buys an inventory for ₹500 and sells it for ₹1000, they can calculate the cost-to-retail percentage by using this formula:

Cost-to-retail percentage = (₹500 / ₹1000) x 100 = 50%

2. Find the cost of inventory available for sale

After determining the cost-to-retail percentage, calculate the specific time period of reporting. Then, find the cost of inventory at the start of that time and the cost of additional purchases during this time. Here is the formula that you can use to find the cost of inventory available for sale:

Cost of inventory available for sale = Cost of beginning inventory + Cost of additional purchases

3. Determine the cost of sales

Next, you can calculate the total cost of sales for a particular time period. You can use the total amount of sales and the cost-to-retail percentage for the calculation. The result represents the total amount gained when selling the inventory. Here is a formula that you can use to determine the cost of sales:

Cost of sales = Total amount of sales x Cost-to-retail percentage

4. Determine the ending inventory

After calculating the cost of sales and the cost of inventory available for sale, you can calculate the ending inventory. Ending inventory is the value of stock that a retail business has at the end of a particular reporting period. After determining the ending inventory, retailers can include this information on the balance sheet. Here is a formula to find the ending inventory value:

Ending inventory = Cost of inventory available for sale – Cost of sales during the reporting period

Product Assortment

An assortment strategy in retailing involves the number and type of products that stores display for purchase by consumers. Also called a “product assortment strategy,” it is a strategic tool that retailers use to manage and increase sales. The strategy is made up of two major components:

• The depth of products offered, or how many variations of a particular product a store carries (e.g. how many sizes or flavors of the same product).
• The width (breadth) of the product variety, or how many different types of products a store carries.

Components of Assortment Strategies

Assortment strategies are defined according to two main factors:

1. Product Width

Product width refers to the range of product lines that a retailer offers. For example, a supermarket may offer product lines ranging from food items to cosmetics and over-the-counter medical supplies. They are all the product lines that are available to customers and combine to make up the product width offered by the retailer.

2. Product Depth

Product depth is the variety of products offered under each product line. For example, if the retailer in question is a specialized cereal store, they are likely to offer hundreds of options for cereal. The variety determines the product depth.

Assortments strategies are determined by the product width and depth that a retailer chooses to offer and ideally result in optimal product mixes that drive sales and increase the likelihood of customers making positive purchase decisions. The strategies employed may be dependent on the physical capacity of stores smaller stores generally lack the space for high product width and depth and tend to focus on one or the other.

For example, a specialty retailer, such as a cereal store, is likely to show narrower product width (few product lines), but high product depth (numerous options for each product line). That is, they are likely to offer only cereal but will also provide many options of cereals to choose from.

On the other hand, a wholesaler, such as Costco, is likely to demonstrate high product width (lots of product lines ranging from fresh fruit to clothing, household furniture, and accessories) but lower depth (only a few options in each product line, e.g., offering).

Types of Assortment Strategies

1. Wide assortment

A wide assortment strategy is used when retailers aim to offer a lot of different product lines or categories, but with lesser depth in each category. It aims to provide more variety in the types of product lines offered but does not provide a high number of products in each product line.

For example, a grocery store that provides a lot of different products, but only stocks one or two brands for each type of product, is employing a wide assortment strategy.

2. Deep assortment

A deep assortment strategy aims to provide a large number of options within a particular product category. It is common for specialty stores that focus on one or a few products to utilize a deep assortment strategy.

For example, a supplement store is likely to offer many options for buyers of protein powders, it is using a deep assortment strategy by focusing on fewer product lines but with high depth and variety within each product line.

3. Scrambled assortment

Retailers using scrambled assortment strategies aim to offer products that are outside of their core business operations in order to attract more clients from different markets.

For example, a store that is famous for its smoothies starts selling fresh fruit and packaged food, which allows it to target a wider audience, including people who wish to make smoothies at home.

4. Localized assortment

A localized assortment strategy allocates the product mix based on the preferences of the local population and the characteristics of the geographical region. This allows the retailer to cater to different demands according to geography and thereby increase sales.

For example, a clothing retailer like Zara does not sell the same clothing inventory in a store in Mumbai, India, as it does in Vancouver, Canada. This is because the population in Vancouver requires warmer clothing for snow and the winter season, whereas the population in India exhibit different clothing preferences and requirements.

5. Mass-market assortment

Mass-market assortment strategies are used by stores with large physical storage capabilities, such as Walmart and Amazon. They aim to appeal to the mass-market and offer as many products and varieties as possible, catering to a much bigger customer base.

Importance of Assortment Strategies

If used effectively, assortment strategies can boost sales and help the retailer grow its customer base. They are important because they determine the goods that a customer interacts with, which leads to a purchase decision. Assortment can vary according to seasons an ice cream store may offer different flavors in the summer and different flavors in a monsoon season.

Similarly, a clothing retailer is likely to stock different clothes in spring and in summer (probably more beachwear) than it does in winter (more jackets). This caters to the public demand and increases sales. Similarly, in supermarkets, complementary goods, such as toothbrushes and toothpaste, are assorted strategically so that customers are persuaded to buy more than they intended to.

However, assortment strategies can be disadvantageous if the product mix and allocation doesn’t appeal to the population visiting the store (or the website, for e-commerce retailers). For example, offering too much variety within a product line can frustrate customers because it makes it harder to make a decision. At the same time, providing too little variety can be disappointing to some customers and can negatively impact sales revenue.

Product Display

Retail product displays are the fixtures in your store that hold or promote your products.

The look of retail product displays relies heavily on your visual merchandising strategy. Generally, the first interaction customers have with your products in-store is via your displays.

If you have a brick-and-mortar store, retail product displays are a must. You or your visual merchandiser can arrange displays to showcase your products and increase sales.

It’s also a visual merchandiser’s responsibility to manage and maintain your retail product displays over time. Fixtures may break or become worn down.

After testing certain display types, you may decide to iterate on your strategy and implement new display designs to help boost sales.

Ways to Displays:

1. Display related products together in a themed way. When building a product display look for products that are natural add-ons to the main product featured.
2. Use lighting to feature products. Accent lighting creates visual interest for shoppers, and helps to make featured products “pop.”
3. Change displays in high traffic areas on a weekly basis. Customers want a reason to return to your store, so get them excited by displaying new and different products.
4.  Use blocks of colour to attract attention. Bright colors can focus your customer’s attention on key products and services. Combined with good lighting it helps you to create focal points for your customers.
5. Keep messaging simple. Use the “blink test” to ensure that your customer can understand your offer. You only have a few seconds to garner their attention, so do not distract them with too much verbiage.
6. Don’t forget the pricing. If a customer fails to see a price on an otherwise well-dressed display, they could very well assume that the item is out of their price range, and forcing them to ask for assistance on the item takes the “impulse” out of impulse buying!
7.  Pay attention to the store exterior. This includes the sign, the windows, and the sidewalk. If your business looks dirty or closed from the outside, then customer perception would be exactly that, and they will walk right by.
8.  Maintain your fixtures and store. You may have the best merchandise that is competitively priced, but if the gondola fixtures, sales counters, or sign holders are broken, damaged, or dirty it reflects negatively on your business…and the sales report.
9.  Make merchandise easy to see and buy. Learn from the grocery retailers…keep your key products at between wait and eye-level so that customers do not have to work to see them or pick them up.
10.  Clean, spaced, and organized. Have you ever been in a store that had dirty merchandise? Unorganized and dirty stores tell your customer that you don’t care and as a result…neither will they!

1. Sales and related jobs:

Sales are the main aspect of retail industry. It is an important part of store operations. The important duty of the sales staff is to sell the products to the customers.

Other than sales, the related job involves, sales associate, cashier for receiving payments by cash, check, debit card, or credit card and operating cash registers etc.

The retail staff also discharges duties like preparing displays, making deposits at cash office, taking inventory etc. depending upon their working hours. The retail staff should be well equipped with excellent communication skill. In a very short span of time retail revolution has taken place.

2. Store Manager:

A store manager is the person ultimately responsible for the day- to-day operations or management of a retail store.

All employees working in the store report to the store manager. Store manager is responsible for managing human resource, hiring team, indulging training and development programmes, managing profit and loss of the store, banking, and handling customer complaints.

3. Visual Merchandiser:

Visual merchandising is the activity of promoting the sale of goods. Visual merchandising is an art intended to increase sales. It is a tool to achieve sales target. It is the art of displaying merchandise in such a manner that appeals to the eyes of the customer.

Visual merchandiser is responsible for merchandising. Creativity is essential to be a good visual merchandiser. Visual merchandising includes window displays, signs, interior displays etc. A combination of colour and theme plays an important role in visual merchandising.

4. Regional Sales Manager:

A regional sales manager reports to national sales manager. A regional sales manager requires excellent interpersonal and communication skill. A Retail Sales Manager is responsible for the day-to-day operations of a retail store.

They also must have computer skills and be patient with both employees and customers. Retail Sales Managers must be able to motivate and organize their employees.

A retail sales manager must have obtained a degree in marketing, business or communication. Regional managers are responsible for a group of retail stores. They visit stores to observe performance and to help solve problems. Regional managers report store performance to company headquarters and make important decisions concerning employees.

5. Finance and Accounting:

A retail store requires well run financial department. A financial manager is responsible for keeping the records of accounts of income, paying expenses, maintaining financial records, cash flow control, banking etc. The financial manager must be efficient enough to handle the risk of debts.

6. Human Resources:

Human resource is one of the most important aspects in retail industry. This aspect focus on recruiting right people for a particular job, because the success of retail depends upon right sales force.

The HR function includes recruitment, selection, training and development programmes, compensation and benefits etc. proper knowledge is require on the part of HR manager to understand qualification and qualities to hire efficient staff. HR function is in dealing with staff grievances and any disciplinary matters.

7. Logistic:

The logistics process consists of the process of integration of several aspects such as material handling, warehousing, information, transportation, packaging and inventory.

The logistics department is entrusted with the responsibilities of ensuring that the entire process of logistics is maintained and developed in accordance with the goals of the business at an economical cost.

8. Marketing:

Marketing department includes functions like advertising, sales promotion and public relation. People with specialised knowledge, creativity etc are required.

Advertising managers direct a firm’s advertising and promotional campaign. Marketing managers work with advertising and promotion managers to promote the firm’s products and services.