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CONTENTS
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Retail Marketing Management
Retailing – Consists of those business activities involved in the sale of
goods & services to consumers for their personal, family or household
use – the final stage in the distribution process.
The word ‘retail’ is derived from a French word retaillier, meaning “to
cut a piece off” or “break bulk”
.
Retail Marketing Management
Manufacturer
Wholesaler
Retailer
Consumers
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Spending Priorities of Consumers- India
Grocery
Footwear
Books & music
Savings & investment
Personal care items
Vacations
Accessories
Home textiles
Eating out
Customer orientation
Co-ordinated effort
Goal orientation
Concept of retailing ?
Communicate with consumers
- Feedback & information sharing
Consistent strategy
Attractive displays
Meaningful & achievable goals
Provide a retail experience
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CONSUMER CLASSIFICATION
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RETAILING IN INDIA
India is the 4th largest economy in the world in Purchasing Power Parity terms
after USA, China & Japan.
If it maintains a growth rate of 10% it will be worth $300 b with 1 m jobs & 10
m Sq.ft. of constructed space in the next 10 years
Organized Retail was worth only about Rs.20,000 crore (2000) and expected to
grow to Rs.160,000 crore by 2005.
96% of the retail outlets are said to be smaller than 500 sq ft in area amounting
to approx 2 sq ft per capita when compared to 16 sq ft in the US.
According to a McKinsey report – by 2005, India will see 25 warehouse clubs &
33 super centres leading to $ 2.5 b direct investment.
Present
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The Organized Retailing Pie
Books, music &
Jewellery & gifts Mobile handsets
watches 3% 3%
7%
Others
Catering
4%
services
7%
Furniture &
furnishings
8%
Footwear
9%
Clothing & textile
39%
Consumer
durables Food & grocery
9% 11%
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DESCRIPTION
Adi-Dassler-Strasse 1-2
Address:
Herzogenaurach D-91074 Germany
Web Site: http://www.adidas-group.com/
Index: STOXX600 | DAX30
Market Place(s) : Frankfurt | Virt-x | Paris
Number Of Shares : N/A
Sector: Leisure
Industry: Leisure Products
Sub-Industry: Leisure Equipment
Adidas : the "three stripes" brandIs there anyone who doesn't know Adidas?Who has never worn one of the brand's
products at least once, or has never got worked up about a sportsman or team wearing the firm's stripes?Based at
Herzogenaurach in Germany, Adidas is second on the world sporting goods market.Because, in addition to those famous
shoes with their three stripes, Adidas also offers a range of clothing and sports apparel marketed under different brand
names.A range of golf accessories, clothing, clubs and balls is available from TaylorMade-Adidas Golf. And we must not
forget the leading brands, Adidas and Reebok, for footwear of course, but also for all its sportswear, balls and bags.Adidas
can pride itself on the global dimension and renown that its brand enjoys.
IDENTITY CARD KEY FIGURES
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Nathalie Knight
Telephone: +49 (0)9132 84 3584 Geographic areas
Things are now definitely on track and, if the current marketing slogan, “Impossible is Nothing",
is anything to go by, the company is brimming with confidence. This is not surprising when you
consider that Adidas now consistently out-performs the rest of the sector and has enjoyed eight
years of consecutive double digit net income growth. It is now the world's number two sports
apparel manufacturer with total sales for 2007 of €10.3bn and profit growth of 9%.
Walk along any high street and it is clear that wearing sports clothing is definitely a fashion
statement, and possibly an indication of athletic prowess. Adidas recognised this trend early on
and has developed high-performance sports lines in collaboration with the likes of Stella
McCartney, Yohji Yamamoto, Porsche Design and Rolland Berry. That said, the company does
not sacrifice its commitment to improving sporting performance and aims to launch at least one
major new technology or technological evolution per year. Even more than its peers, Adidas has
put performance at the heart of its product portfolio and invests specifically to support this. R&D
projects involve collaborations with professional and amateur athletes including Zinedine Zidane,
Michael Ballack and Allyson Felix. In addition, Adidas works with clubs such as AC Milan and
Bayern Munich to test and optimise products. Over recent years this has led to development of
technologies such as ForMotion, which supports the core adistar and Supernova families, as well
as the next generation of the Response and BOUNCE running shoes.
Alongside providing performance products, Adidas recognises that consumers make purchase
decisions based not only on brand but also on availability, convenience and breadth of product
offering. As a result the company has been refining its distribution proposition, concentrating on
expanding its own outlets or ‘controlled’ space and improving retail relationships. There are now
over 1000 Adidas stores around the world and, in the run up to the Beijing Olympics the
company opened an average of two stores a month in China. By 2010, the aim is to generate at
least 30% of the group’s revenues through controlled space.
To keep its brand in the public focus Adidas has also sponsored sportsmen and women
for many years. In 2008, 295 footballers, 64 rugby players, 71 tennis players, 24
basketball players and 8 golfers all benefited from its three stripe logo. One of the first
prominent endorsers of Adidas equipment was American running legend Jesse Owens,
the gold medalist at the 1936 Summer Olympics. As well as sponsoring the Beijing
Olympics Adidas is also supporting the 2012 Olympic Games in London in a deal worth
around $200 million: in this sector such brand awareness is critical. Going forward,
Adidas is also embracing a number of niche sports and lifestyle activities fuelled by the
current trends in individualism, health and wellbeing with, for example, a new woman's
Yoga range. As it aims to take over world number 1 position in the sector from Nike,
Adidas will be innovating incessantly both within existing sports and outside the core.
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BusinessDescription
adidas AG Formerly known as adidas-Salomon AG. The Group's principal activities are
producing and marketing of sports goods. The Group markets its products under the brand names:
Adidas, Salomon TaylorMade-adidas, Mavic and Bonfire. Products sold under the brand name
Adidas include footwear, apparel, and sport accessories such as bags and balls. Salomon brand
includes winter sports skis, snowboards, snowblades, ski boots and bindings, inline skates, hiking
and apparel. TaylorMade-adidas Golf offers a full range of golf equipment, golf apparel and golf
shoe. Mavic brands provides cycle components. Bonfire includes alpine apparel and erima, which
includes teamsport apparel, swim wear and accessories. The Group has operations in Europe,
North America, Asia and Latin America.
ADIDAS
COMPANY PROFILE
ADIDAS, the second largest sportswear manufacturer in the world.
Founded in 1948 and named after its founder, Adolf(Adi) Dassler,
headquarted in GERMANY.
Adidas is an acronym for All Day I Dream About Sports.
ADIDAS GROUP consists of Reebok sportswear company,
Taylormade golf company, Maxfli golf balls, and Adidas golf.
EMPLOYEES : 27000
HEADQUARTERS:GERMANY
FOUNDED:1949
TYPE:LIMITED
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ADIDAS SWOT ANALYSIS
THREATS
Competition.
Foreign exchange fluctuations.
Weak global economy.
Impact of scandals in the U.S.A and Germany
OPPORTUNITIES
Strategic acquisitions and agreements
Supply chain and manufacturing initiatives.
Sponsoring sporting events.
Own retail stores.
WEAKNESS
Unfocussed strategy.
Over dependence on Adidas brand segment.
High level of long term borrowings.
Order cancellations.
STRENGTHS
Leading player in the sporting goods industry.
Steady increase in sales revenue.
Successful new products innovation.
Lead time improvements.
Marketing strength.
Specialty stores
Traditional department stores
Full line / Gen merchandise discount store
Variety store
Off-price store
Factory outlet
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Hyper markets
Discount Stores
Catalogue showrooms
Warehouse stores
Selected Aspects of Store-Based
Retail Strategy Mixes
Type of Location Merchandise Prices Atmosphe Promotion
Retailer re and
Services
Food-oriented Medium width and low depth Average to
Convenience Neighborhood of assortment average above-average Average Moderate
store quality
Conventional Neighborhood Extensive width and depth of Competitive Average Heavy use of
supermarket assortment; average quality; newspapers, flyers,
manufacturer, private, and and coupons. Self-
generic brands service
Food-based Community Full assortment of super- Competitive Average Heavy use of
superstore shopping market items, plus health newspapers and
center and beauty aids and general flyers, self-service
merchandise
Combination Community Full selection of supermarket Competitive Average Heavy use of
store shopping and drugstore items or newspaper and
center or super-market and general flyers; self-service
isolated site merchandise; average
quality
Box (limited- Neighborhood Low width and depth of Very low Low Little or none
line) store assortment; few perishables;
few national brands
Warehouse Secondary Moderate width and low Very low Low Little or one
store site, often in depth; emphasis on
industrial area manufacturer brands bough
at discounts
Traditional Business district, Extensive width and Average to Good to Heavy ad and
department shopping center, depth of assortment; above- excellent catalog use,
store or isolated store average to good average direct mail;
quality personal selling
Full-line Business district, Extensive width and Competitive Slightly Heavy use of
discount sore shopping center, depth of assortment; below- newspapers;
or isolated store average to good average to price-oriented;
quality average moderate sales
force
Variety store Business district, Good width and Average Below- Heavy use of
shopping center, depth of assortment average newspapers;
or isolated store below-average to self-service
average quality
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Selected Aspects of Store-Based Retail Strategy Mixes
Type of Location Merchandise Prices Atmosph Promotion
Retailer ere and
Services
Off-price Business district, Moderate width, Low Below- Use of
chain suburban but poor depth of average newspapers;
shopping strip, or assortment; brands not
isolated store average to good advertised;
quality, low limited sales
continuity force
Factory Out-of-the-way Moderate width, Very low Very low Little; self-
outlet site or discount but poor depth of service
mall assortment; some
irregular
merchandise; low
continuity
Membershi Isolated store or Moderate width, Very low Very low Little; some
p club secondary site but poor depth of direct mail;
(industrial park) assortment; low limited sales
continuity force
Flea market Isolated site, Extensive width, Very low Very low Limited; self-
racetrack, or but poor depth of service
arena assortment;
variable quality; low
continuity
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adidas Retail sets a course for the
future with Connected Retailer solutions
By implementing Connected Retailer Merchandising, together with other NSB solutions,
a North American sporting goods giant is gaining unprecedented control over its
inventory, improving productivity, and reducing costs.
Background
For more than 80 years, adidas has been a global leader in the sporting goods industry,
delivering state-of-the-art sports footwear, apparel, and accessories. adidas-Salomon, the
brand’s corporate parent, offers a broad portfolio of sporting goods and related
products.The company has total global net sales of US$8.3 billion and global net income
of US$403 million. adidas Retail, the US retail division of adidas-Salomon, currently
operates 70 stores across North America and is growing fast. Sales for adidas Retail have
steadily increased as the company continues to launch successful marketing campaigns,
and volume has tripled over the last five years. adidas Retail has been an NSB client
since 1999. Before implementing their new solution, they ran their merchandising on a
Unix-based legacy system. Although the legacy system satisfied their needs, as the
retailer grew and the face of retail started to change, the old system could not live up to
their strategic requirements. “The R12 system was stable and consistent. We knew what
to expect from it, day in and day out,” says Vince Jackson, Director of Retail Information
Systems, adidas Retail. “But it was limited in what it could achieve.”
Challenge
adidas Retail has been growing fast, with hot products on the market and topperforming
athletes endorsing them. As requirements arose for the IT department, such as integration
of their merchandising with an SAP Financials system and awarehouse system, the
retailer started to look for a new merchandising system.And as they surveyed the market,
they discovered a whole new world of possibilities.“When we saw what was possible
with new technology, we started to develop a more powerful vision for the future, and we
wanted the technology that could help us achieve that,” says Jackson.
Solution
With this in mind, adidas Retail selected the entire suite of Connected Retailer solutions
to take them into the future of retailing. They purchased Connected Retailer Store,
Merchandising, Planning, Sales Analytics, and CRM. At the core of their systems is the
Connected Retailer Merchandising Solution, which streamlines operations, unifies asset
management, and helps retailers learn the truth about their business. This powerful retail
enterprise solution features an open-architecture design that provides unprecedented
flexibility, scalability, power, and control.
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Merchandising’s centralized transactional database and support tools enable retailers to
make and execute better decisions based on accurate, current, and shared information. By
using consistent data to guide all processes, the solution automatically synchronizes and
integrates all key functions, including planning, ordering,pricing, flow, sales, margins,
and inventory management. Connected Retailer
Case study
“Merchandise Analytics is a great tool. We can set up predesignated times for product
to be marked down, depending on elements such as the cycle for the season, turns, age, or
special promotions. If an item is doing well, we can take it off the markdown list. The
system provides precise reporting on the performance of an item and how it reacts when
we mark it down.”VINCE JACKSON, Director of Retail Information Systems,adidas
Retail Merchandising optimizes ROI by improving the performance and coordination of
every process in the retail cycle.The importance of teamwork To ensure a smooth
implementation of the Merchandising solution, adidas brought together various teams
from across the business to discuss the current and future status of their IT systems.
Before holding a formal ProductReview Meeting (PRM), representatives from each
department helped document processes and put together a wish list for the new system.
Once the project was underway, these same individuals were involved in the rollout and
training, and became the “super users” who would go on to provide training to end users.
“Creating ownership among the different business groups was critical to the overall
success of the implementation,” says Cindy Martinez, Retail Systems Analyst, adidas
Retail. “We made sure everyone felt their voice was heard, which helped them feel they
had a vested interest in a smooth rollout of the project.” Jackson supports this view and
has strong advice for the CIO or VP of Systems who is attempting to win support for a
new systems implementation. “You must get the support of the business owners,” he
avows. “You have to go to the head of buying, the head of planning, the head of
operations, everyone who will be affected by the change. They must want to own the new
system. We’ve seen in our own organization how relationships have improved and
ultimately help get everyone excited about the project.”
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adidas Retail
Standards-based implementation NSB uses a proprietary Solution Implementation
Methodology (SIM) that employs best practices throughout the implementation process.
“With SIM, everything is documented and properly scoped,” says Jackson. “It’s well
formalized, and we have a good understanding of where we are at all times.”adidas found
that the standardized methods, along with the organization of the team members from
both adidas and NSB, made a vast difference to the implementation.“We have an
executive sponsor who has been very involved in ensuring the project moves along.
Having one primary point of contact on each side has made the process much smoother,”
Jackson confirms.
Results
Rapid ROI
adidas expects to see ROI on their merchandising system within two years, thanks to the
cost savings they will realize and the increased efficiencies they’ll see across the
business. In addition to Merchandising’s many qualitative benefits, adidas was also able
to determine quantitative benefits to identify ROI on the new system.Optimizing
inventory connected Retailer Merchandising delivers a central, accurate view of
inventory at all times to everyone in the organization, from store managers to buyers.
This centralized view dramatically improves the performance of various operators
touching the system. “The system and user-defined Inventory Status give us a true picture
of what is available to sell and in what location,” says Jackson. “Inventory Status gives
planners, stores, and Inventory Control a better view of true ‘on-hand,’ which will save at
least 20 hours per week.” Easier inventory counts equal cost savings Before acquiring the
new system, adidas had to “freeze”their inventory for two weeks to take an inventory
count, an event that took place twice a year. “That’s four weeks of inventory freeze per
year to accommodate inventory counts. We lost sales during those times because we can
load up the stores only so much during those periods,”says Jackson.With the new system,
adidas has full visibility into inventory in transit during their inventory counts. “We have
shorter cutoff times and minimal interruption of product flow,”he adds. “We expect to
lose fewer sales during inventory counts. And the Retail Support/Inventory Control and
Finance areas will save about 10 hours at inventory time and 16 hours per month with
cycle counts.”Controlled markdowns and margin erosion The system not only provides
users with a better view into inventory, it also gives them the tools they need to act on
this information more effectively. Merchandise Analytics, a component of the
merchandising Solution, allows users to quickly navigate through volumes of data and
then take the required action on specified styles.Rather than just noting items that need to
be marked down or transferred, the system allows the user to create“suggested” transfers
or price changes where it makes sense — with all the supporting data on
hand.“Merchandise Analytics is a great tool,” Jackson confirms.“We can set up
predesignated times for product to be marked down, depending on elements such as the
cycle for the season, turns, age, or special promotions. If
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an item is doing well, we can take it off the markdown list. The system provides precise
reporting on the performance of an item and how it reacts when we mark it down.”
The tools and the reporting are a strong combination for managing merchandise both
effectively and to a fine level of detail across the business. “We can act at a more
granular level, acting only on specific colors and/or locations that require a markdown,”
Jackson adds. “Overall, it gives us more flexibility and a whole lot more visibility.”
Integration opens data flow across the business Connected Retailer Merchandising
features integration between Planning and the Open-To-Buy module, which helps ensure
buyers are buying to the actual plan. Instead of working from spreadsheets and
transferring this information to Merchandising, planners develop optimal plans in a
sophisticated Planning application, which feeds directly to the Open-To-Buy. “As our
buyers make buys, we can look back and ensure they’re fulfilling as needed and that
they’re going to hit those plans. That’s definitely a benefit for ensuring we have the right
product and the right amount of product,” Jackson says. NSB has also integrated the
Merchandising system with adidas’s SAP Financials system. This integration will bring
substantial qualitative benefits to the retailer on several levels. “We’re now going to be
able to get our information out at the level where we need it,” says Jackson. “The
information we feed to the financials systems will go on to populate all their reporting
systems. We’ll be able to integrate item match information directly from SAP into
Merchandising, and that will allow us to import styles, put them in inactive status, and
then choose which ones to activate. It gives us a great flow of product information,
as well as financial results information, to and from SAP.”
adidas Retail
Unprecedented flexibility
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that has evolved between client and provider. “When it comes to eliminating cost, you
want to minimize the number of vendors and support mechanisms you’re dealing
with,” says Jackson. “Sometimes that can armband you, but, on the other hand, you don’t
have to deal with multiple vendors. That’s a huge savings in terms of time, integration
requirements, and, ultimately, cost.” Technology that supports your brand Most people
do not think of technology when they think about brand. And yet technology makes an
enormous impact on your brand, by relaying information about your consumers and
products in countless ways to your key decision makers. Jackson agrees. “If you’re trying
to portray a particular image, you need to be able to create that image, and technology
helps you do that. People and systems come together to create the brand. If you’remissing
either of those elements, it’s going to affect the brand’s overall strength.”In terms of
talking to executive management, Jackson emphasizes clear direction based on clear
communication. “It’s really important that you outline your vision for the future,” says
Jackson. “What are you planning to do with this organization? What is the vision for
retail two or three years down the road? You need to demonstrate to a CFO that your
investment is fiscally responsible, but you have to do that with a solid vision for the
future that captures the spirit of your company’s overall strategic direction.”
adidas Retail
SUPPLY CHAIN OF ADIDAS…..
Employees at Adidas retail, work with more than 1,070 independent factories
from around the world who manufacture our products in 67 countries. Many of
these are in one of the following six countries: China, India, Indonesia, Thailand,
Turkey or Vietnam.
Our supply chain is global and multi-layered, with many different types of
business partner, some of whom are directly contracted and others who are not.
Our influence in terms of social and environmental compliance is linked to the
strength of our partnerships, and is often proportional to the scale and stability of
the orders placed with our suppliers. For this reason we plan a further
consolidation of the Group’s supply chain: contracting fewer, larger factories, with
higher order volumes.
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Due to different sourcing requirements in their respective fields of business,
Rockport, Reebok-CCM Hockey, Sports Licensed Division, TaylorMade and
specific business segments are not serviced through Global Operations but
instead use their own purchasing organisations that are used to sourcing
products through intermediaries such as agents.
TYPES OF SUPPLIER
Our suppliers fall into five broad categories:Main suppliers
Subcontractors
Material and other service providers
Licensees
Agents.
MAIN SUPPLIERS
These are suppliers that have a direct contractual relationship with the adidas
Group for the supply of products, whether for export or domestic market
consumption. We call these Tier 1 suppliers. The largest of these have multiple
factories and manufacturing sites across several countries.
SUBCONTRACTORS
These are factories that have been subcontracted by our suppliers. They have no
direct contractual relationship with the adidas Group; however, we do require
them to be compliant with our Workplace Standards before authorising them as
subcontractors.
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LICENSEES
Independent companies which manage the design, production and distribution of
specific products, under licence to the adidas Group. In 2007, the adidas Group
worked with 44 licensees whose suppliers manufactured products in 248
factories in 38 countries.
AGENTS
Independent companies that act as intermediaries and determine where products
are manufactured, manage the manufacturing processes, and sell finished
products to the Group. Reebok has historically placed a significant number of
apparel orders through agents and licensees. In 2007, Global Operations phased
out Reebok’s former sourcing agents. This means that Reebok-branded apparel
is now primarily sourced through our own supply base, utilising the established
network of the adidas brand. Other Reebok apparel business units continue
managing supplier relationships through agents or licensees.
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Growing business with our strategic suppliers producing for the
international export market. These suppliers have invested in additional
production capacity and established factory facilities in various countries.
Associated reduction in the number of agents managed by Global
Operations.
Growth in licensee business as the adidas Group develops new business
segments.
In 2007, the top five countries per region by number of supplier sites were:
PRICING IN RETAILING
Before designing a price plan, a retailer must study the factors affecting its decisions.
Sometimes, the factors have a minor effect on pricing discretion; other times, they
severely limit pricing options.
Retailers should be familiar with the price elasticity of demand and the different market
segments that are possible. Government restrictions deal with horizontal and vertical
price fixing, price discrimination, minimum prices, unit pricing, item price removal, and
price advertising. There may be conflicts about which party controls retail prices; and
manufacturers, wholesalers, and other suppliers may be asked to provide price guarantees
(if they are in a weak position). The competitive environment may foster market pricing,
lead to price wars, or allow administered pricing.
Framework for developing a retail price strategy consists of five stages: objectives,
broad price policy, price strategy, implementation of price strategy, and price
adjustments.
Retail pricing goals can be chosen from among sales, dollar profits, return on
investment, and early recovery of cash.
Next, a broad policy outlines a coordinated series of actions, consistent with the
retailer’s image and oriented to the short and long run.
A good price strategy incorporates demand, cost, and competitive concepts. Each of
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these orientations must be understood separately and jointly. Psychological pricing,
markup pricing, alternative ways of computing markups, gross margin, direct product
profitability, and pricing below, at, or above the market are among the key aspects of
strategy planning.
When enacting a price strategy, specific tools can be used to supplement the broad base
of the strategy. Retailers should know when to use customary and variable pricing, one-
price policies and flexible pricing, odd pricing, leader pricing, multiple-unit pricing, and
price lining.
OVERVIEW
A. Goods and services must be priced in a way that achieves profitability for
the retailer and satisfies customers.
B. A pricing strategy must be consistent with the retailer’s overall image,
sales, profit, and return on investment goal.
C. A retailer has three basic pricing options, each with advantages and
disadvantages:
1. Web sites are free and operate much like search services.
2. The sites don’t sell anything, but link shoppers to places that do.
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A. The external factors do impact on retail pricing strategy. In some cases,
they have only a minor effect; in others, they severely restrict pricing
options.
B. The Consumer and Retail Pricing
Quantity 1 – Quantity 2
Quantity 1 + Quantity 2
Elasticity = ______________________
Price 1 – Price 2
Price 1 + Price 2
e. Because, according to the law of demand, the quantities purchased decline as prices go
up, elasticity is usually a negative number.
ii. Many retailers carry thousands of items and cannot possibly compute elasticities for
every one. As a result, they rely on average markup pricing, competition, tradition, and
industrywide data to indicate price elasticity.
iv. Personalizing consumers shop where they are known and will pay
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slightly above-average prices.
A retailer cannot claim or imply that a price has been reduced from some former
level unless the former price was one that the retailer had actually offered for a
good or service on a regular basis during a reasonably substantial, recent period
of time.
D. Manufacturers,Wholesalers,and Other
Suppliers—and Retail Pricing:-
1. Manufacturers (and other suppliers) and retailers would each like to control
the final selling price of merchandise.
a.Manufacturers usually want a certain image, but want to let retailers earn
profits.
a.Retailers want to set prices based on their own image, goals, etc
2. A supplier can control prices by using exclusive distribution and refusing to sell
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to price-cutting retailers and/or by being its own retailer.
2. Retailers have little control over price because consumers can easily shop
around.
1. Pricing policies must be integrated with the firm’s total retail mix.
1. A retailer’s pricing strategy has to reflect its overall goals and be related
to
sales and profits. It also needs to set more specific ones in order to avoid
such potential problems as confusing people by having too many prices,
spending too much time bargaining with customers, offering frequent
discounts to stimulate customer traffic, having inadequate profit margins,
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and placing too much emphasis on price.
D. Price Strategy
1. In demand-oriented pricing, prices are based on consumer desires. A
demand ceiling is determined. It seeks to estimate the quantities
customers would buy at various prices. This approach looks at customer
interest.
a. It is important to understand the psychological implications.
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i. The level of the markup depends on the product’s
traditional markup, the supplier’s suggested list price,
inventory turnover, competition, rent and other overhead
costs, the extent to which a product must be serviced, and
the selling effort.
ii. Markups can be computed on the basis of retail selling price, rather than
cost, because: (1) expenses, markdowns, and profit are always stated as a
percentage of sales, (2) manufacturers quote selling prices and discounts as
percentage reductions from retail list prices, (3) retail price data are more
readily available than cost data, and (4) profitability seems smaller if
expressed on the basis of price (which is useful in dealing with the
government, employees, and consumers).
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a. Customary pricing exists when a retailer sets prices for goods and services
and seeks to maintain them for an extended period.
3. Under a one-price policy, a retailer charges the same price to all customers buying an
item under similar conditions. In contrast, flexible pricing lets consumers bargain
over prices, and those who are good at bargaining obtain lower prices.
a. The one-price policy is easy to manage, does not require skilled salespeople,
makes shopping quicker, permits self-service, puts consumers under less pressure,
and is tied to the retailer’s price goals.
b. Flexible pricing is used by many jewelry stores and auto dealers. It requires high
initial prices and good salespeople.
c. Contingency pricing is a special form of flexible pricing. With it, a retailer does
not get paid until after the service is performed and payment is contingent on the
service’s being satisfactory.
4. An odd-pricing strategy occurs when retailers price at levels below even dollar values,
such as $0.49, $4.98, and $199. The assumption is that people feel
these prices represent discounts or that the amounts are beneath
consumer price ceilings. See Figure 17-9.
i. 5. In leader pricing, a retailer advertises and
sells selected items in its goods/service assortment
at less than the usual profit margins. The goal is to
increase customer traffic for the retailer so as to sell
regularly priced goods and services in addition to
the specially priced items.
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F. Price Adjustments
1. Price adjustments let retailers use price as an adaptive mechanism
to variables such as competition, seasonality, demand patterns,
merchandise costs, and pilferage.
2. A markdown is used to meet the lower price of another retailer,
adapt to inventory overstocking, clear out shopworn merchandise,
reduce assortments of odds and ends, and increase customer traffic.
3. Markdown timing must be planned. Price leadership
or price following
MODE
RATE
Bargaining Rivalry Among Bargaining
Power of LOW Competitors HIGH Power of
Suppliers HIGH Buyers
HIGH
Threat of
Substitute
Products
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Adidas Outsources Warehouse Distribution Operations
Sneaker maker Adidas America, which spent the last year debugging distribution systems
software that nearly brought footwear deliveries to retailers to a standstill last spring, has
decided to outsource operations of its Spartanburg, S.C., warehouse.
Adidas signed a seven/year, multimillion dollar deal with Caliber Logistics of Hudson,
Ohio. Caliber will take over management of Adidas' main U.S. distribution facility,
including the company's automated warehouse systems.
Approximately 190 to 200 non/IS warehouse staff will become Caliber employees upon
the changeover on April 28. However, Adidas IS staff at the facility -- which also houses
all of Adidas' centralized IS functions for its North American operations, including
customer support and financial service systems -- will remain Adidas employees.
Adidas director of operations Jim Stutts says the company will also retain ownership of
the warehouse computer systems, although Caliber will supplement Adidas' existing
distribution software from Exeter Software with Caliber's own proprietary software.
Caliber will help the Beaverton, Ore., athletic-shoe company process orders faster and
more efficiently as demands for Adidas products grows, says Stutts.
adidas Strategy
adidas has a clear mission – “to be the leading sports brand in the world”. To
accomplish this mission, the brand comprises two divisions that reflect two
distinct market segments: Sport Performance and Sport Style. Product and
marketing initiatives at adidas primarily focus on five global priorities,
which are expected to generate over 80 % of the brand’s top-line growth
until 2010: running, football, basketball, training and Originals. The adidas
brand attitude “Impossible is Nothing” drives all brand communication
initiatives and helps strengthen the brand’s bond with consumers. With a
well-defined and segmented distribution approach and a premium-price
strategy, adidas clearly positions itself as a top-notch brand in all markets.
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New Brand Structure Established
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With respect to brand communication, adidas successfully launched the
newest installment of its “Impossible is Nothing” campaign – the largest
global brand campaign ever implemented – in over 50 countries. Late in the
year, adidas also kicked off its Olympics and global football campaigns for
2008.
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Sport Style: Capitalizing on Brand Authenticity and
Heritage
The adidas Originals business is the cornerstone of the Sport Style division.
Brand communication and attitude of adidas Originals are built on the
message “Celebrate Originality”. All product and marketing initiatives at
adidas Originals focus on authenticity, creativity and individuality. Since its
introduction, adidas Originals has been positioned as a niche business with
corresponding product, marketing and distribution strategies. Going forward,
however, adidas Originals will widen distribution and extend its product
offering and communication efforts. In this way, adidas Originals plans to
fully capitalize on the strength and brand equity of adidas.
To best meet the needs of a wide consumer base, adidas Originals addresses
three consumer segments:
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such as the environmentally-friendly adidas Grün and the women-
specific Handbags for Feet collections.
To ensure future sales growth in the sports lifestyle market, adidas will offer
new concepts and – at the same time – further differentiate and segment
distribution at wholesale and in adidas own-retail stores.
Another key element in the Sport Style division is the high-end Y-3 fashion
collection developed in collaboration with designer Yohji Yamamoto.
Introduced five years ago, the Y-3 business has grown substantially and has
become a key image driver for the adidas brand. Through Y-3, adidas has
created its own niche in the highly competitive world of fashion. New
collections are launched twice a year at the New York fashion week. To
drive the Y-3 business worldwide, adidas focuses on controlled space
initiatives with high-end retailers as well as own-retail activities. In 2008,
adidas expects to grow sales in the fashion category at a double-digit rate.
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adidas generates around 83 % of its revenues through its wholesale business
– where adidas sales subsidiaries sell footwear, apparel and
hardware/accessories to retail partners. In general, the brand’s customers
include sporting goods, sport specialty, athletic specialty and family
footwear retailers as well as high-end department stores and directional
accounts in the Sport Style division. To preserve the premium image of the
adidas brand, it generally does not sell its products to value or discount
chains.
In a few markets, where adidas does not have its own sales subsidiaries, the
brand partners with third-party distributors that sell its products to retail. To
have maximum brand control, however, adidas’ strategy is to continuously
buy back distribution rights and establish own sales organizations as
appropriate.
In line with the Group’s distribution strategy, the adidas brand focuses on
the expansion of controlled space:
In 2007, adidas made significant progress in all these areas. The brand’s
own-retail sales and store number continued to increase strongly. Own retail
now accounts for 17 % of adidas brand revenues. The number of mono-
branded stores in emerging markets and the number of shop-in-shops also
grew significantly.
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Together with its retailer partners, the brand will continue to open shop-in-
shop formats in mature markets and new mono-branded stores in emerging
markets. In markets with an underdeveloped retail landscape and where
market access via partners is not possible, adidas plans to further extend its
own-retail business.
As part of the continued growth of its own-store network, the adidas brand
will open its largest store in the world in Beijing in spring 2008, which will
showcase both Sport Performance and Sport Style products. Going forward,
the brand expects to introduce more such Metropolitan stores as appropriate.
adidas will also further diversify its store base introducing category-specific
concept store formats. Moreover, the brand will pilot its first European
online shop in the Netherlands in the first half of 2008.
adidas offers the vast majority of its footwear, apparel and hardware
products at high- and mid-level price points. The brand’s goal is to
strengthen both its market position and revenues by driving continuous
growth in average selling prices and increasing profitability. adidas believes
a strong brand image is the best defense against a promotional retail
environment (i. e. competition at retail via price wars) and is prepared to
give up short-term revenue opportunities as necessary to preserve the long-
term market position.
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there are embedded links to product images so customers can see pictures of what they
just ordered.
“For the sales reps, this changes their lives dramatically,” says Oligmueller. “They are
not on the phone as much and they’re able to have data at their fingertips. They arrive at
customer meetings more prepared because they are looking at the most current
information immediately before they go to the meeting. And they are also not carrying
their laptops when they travel because their BlackBerry devices offer them everything
they need.”
Sales reps can also check the status of a customer’s pending orders. Customers place
orders for numerous adidas America products that are going to different stores around the
country. Sales reps can now see and manage their open order profile. When a customer
asks, reps can show them the exact percentage of the order that has been filled.
“The CSRs are happier now because they are getting less calls,” says Oligmueller.
“We’ve seen that an average sales rep is sending 345 queries via their BlackBerry device,
thereby saving time on phone calls that would have been made back to the office. Plus,
many of our reps now do more queries just so they stay more on top of how they are
serving the customers.”
Sales reps are also able to create customized catalogues using Atlas2Go on the
BlackBerry devices. “We were trying to figure out a way to give every customer a
catalogue of the products they just bought,” says Oligmueller. “All that the sales rep has
to do now is click on the order the customer just placed, using the BlackBerry device, and
forward it to a third party vendor we use. Our vendor formats a catalogue in PDF format
and sends a link back to the sales rep’s BlackBerry device so it can be forwarded to the
customer.”
Atlas2Go for BlackBerry devices has improved the productivity of sales reps and CSRs,
but it is ultimately adidas America customers that are benefiting most. “Our customers
love it because they are getting immediate attention. By receiving an email on-the-spot
about an order, they are put in a buying frame of mind, which increases our “at once”
sales.”
What’s Next?
Ability to Increase “At Once” Sales: The Atlas2Go application for BlackBerry devices helps sales reps
supply current information to customers which encourages them to make quicker purchasing decisions.
Increased Productivity for Sales Teams: Sales reps and CSRs spend less time on the phone with each
other checking inventory. Laptops are used less, so people travel lighter. Sales reps are using Atlas2Go to
perform more frequent account queries, which better prepares them for meetings and keeps them on top of
customer accounts.
Greater Customer Satisfaction: Customers are impressed with the immediate service aspect of the
BlackBerry solution. They receive current information about potential and current orders, which increases
their confidence in doing business with adidas America. The ability to receive PDF catalogues of their
order, soon after they placed it, is a competitive differentiator between adidas America and other
companies.
Potential for expanding wireless business solutions: Using the BlackBerry Enterprise Solution, adidas
America plans to enable order placement from the field. Because of the flexibility of the platform and ease
of deployment, they are now considering how similar solutions can benefit their global operations.
Oligmueller says that he’s learned something through this process. “Once you implement a project like this,
there are going to be requests for the ability to do more. Most of our sales reps are keenly interested in
finding a way to substitute their laptops with their BlackBerry devices.”
37
To help realize this goal and others, the next phase of Atlas2Go will involve the ability to remotely place
and change orders. Sales reps will be able to key in the customer’s order while they wait, which will no
doubt accelerate the closing cycle for sales.
adidas America has also been a touchstone for other worldwide divisions of the company. “I think any
information you can wirelessly extend to remote employees, especially in our global supply chain, will be
an advantage.”
“Yes, we had a middleware product in place,” says Oligmueller, “and that simplified a lot. But I would
encourage any company to pick a small project and just do a test with the BlackBerry solution. If you
already have a developer, you don’t have to be super experienced in Java to just pull information from
databases.”
* The above information regarding third party products and services is provided in this document for your
information. Since third parties provide the information to Research In Motion Limited (“RIM”) and RIM
relies on the information without performing any independent investigations, RIM makes no warranty or
guarantee concerning the features, reliability, or pricing of the third party products or services, or their
compatibility with any RIM products.
Check with service provider for availability, roaming arrangements and service plans. Certain features
outlined in this document require a minimum version of BlackBerry Enterprise Server Software,
BlackBerry Desktop Software, BlackBerry device software and/or BlackBerry devices and may require
additional development or third party products and/or services for access to corporate applications. Prior to
subscribing to or implementing any third party products and services, it is your responsibility to ensure that
the airtime service provider you are working with has agreed to support all of the features of the third party
products and services. Installation and use of third party products and services with Research In Motion’s
(“RIM”) products and services may require one or more patent, trademark or copyright licenses in order to
avoid infringement of the intellectual property rights of others. You are solely responsible for determining
whether such third party licenses are required and are responsible for acquiring any such licenses. To the
extent that such intellectual property licenses may be required, RIM expressly recommends that you do not
install or use these products and services until all such applicable licenses have been acquired by you or on
your behalf. Your use of third party software shall be governed by and subject to you agreeing to the terms
of separate software licenses, if any, for those products or services. Any third party products or services
that are provided with RIM’s products and services are provided “as is”. RIM makes no representation,
warranty or guarantee whatsoever in relation to the third party products or services and RIM assumes no
liability whatsoever in relation to the third party products and services even if RIM has been advised of the
possibility of such damages or can anticipate such damages.
© 2006 Research In Motion Limited. All Rights Reserved. The BlackBerry and RIM families of related
marks, images and symbols are the exclusive properties of Research In Motion Limited. RIM, Research In
Motion, BlackBerry, BlackBerry Enterprise Server, “Always On, Always Connected” are registered with
the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other
brands, product names, company names, trademarks and service marks are the properties of their respective
owners. MKT-13137-001
Analyst Opinion
RECOMMENDATION SUMMARY*
Mean Recommendation (this month): 1.6
Mean Recommendation (last month): 1.7
38
Change: -0.1
* (Buy) 1 - 3 (Negative)
RECOMMENDATION TRENDS
Number of brokers recommending as Current Month 1 Month Ago 2 Months Ago 3 Months Ago
Buy 8 3 8 6
Overweight 5 0 4 2
Neutral 8 3 6 1
Underweight 1 0 1 0
Negative 1 1 1 0
Mean Recommendation 1.6 1.7 1.7 1.2
* (Buy) 1 - 3 (Negative) Data provided by FactSet JCF.
39
adidas Group 2008 Targets
The following table outlines the financial guidance adidas Group Management gave on November 6, 2008.
40
Reebok segment 2008 targets
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Adidas with Its New Retail Endeavor in India
Sports goods maker adidas is set on a new retail course with
the launch of a retail university named as ‘Adidas Retail
University (aRU)’.
As such, adidas is one of the most recognized sports brand in India, surpassing some of
its business competitors in terms of revenues. In an order to maintain the same rapport,
the company sees retail expansion as one of the major factors for the continued growth
and consumer acceptance of the adidas brand in India.
Adidas has recognized the trend by offering retail training to its franchisees and store
staff in the past.
With the set up of a university exclusively to provide training to its staff, adidas envisions
to take its business on peak level of proficiency and excellence.
Also, the brand is further exhibiting its efforts and ability to lead the sporting and casual
goods industry in India, says Mr. Andreas Gellner, Managing Director - adidas India on
the launch of aRU.
RayMedi HQ is designed to manage your chain of shops more easily. RayMedi HQ is a web-based,
easy-to-use software which gives you more control in managing your chain of shops. It works
seamlessly with your individual shops data (RayMedi RPOS/RE/DE data) and gives you a
consolidated and centralized way of managing your chain better.
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RayMedi Deployment Architecture
RayMedi HQ gives you the Real-time business status at HQ from about every point of sale. From
the head office, you can monitor sales & inventory position at each one of your store. The software
helps you in consolidating the data from your various branches into one system and do an
integrated analysis of sales, inventory and purchase. RayMedi HQ primarily focuses on managing
your branch wide sales, purchase, inventory, receivables and profits. It helps you in controlling
expenses, decreasing costs and increasing your profits.
`
RayMedi Solution Architecture
The key business benefits and the features of the product are detailed below.
Increase your ROI : Identify non-moving stock across the chain, transfer them
to where they are selling and/or return them. Also, identify and return non-
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moving stock at purchase value to avoid any loss on non-moving stock return.
Such effective stock transfers coupled with purchase returns increase the ROI.
Best Purchase : As you pool your requirements, the volume of purchase goes
up. This allows you better negotiating leverage. Combining this with the
analysis of your sales, purchase and inventory data, allows you source products
from the cheapest and best.
Prevent poor practices from becoming bad habits : Audit trail help HQ know
the activities done at the point of sale and identify the poor practices such as
stock updation, temporary stock addition etc. Corrective action for such poor
practices can be taken by training the personnel at the point of sale. This helps
in making sure poor practices do not become bad habits
Secure: https connection. All data sent over a secure, encrypted connection.
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user can view only the data they are authorized to view i.e. an area manager for
Delhi can only view data for Delhi et.al.
All POS data are consolidated at the head office. Data synchronized for all
operations
o Facility to upload all transaction data from point of sale such as sales,
purchase, stock transfer and accounts transactions etc., into the head
office.
o add, modify and delete based on security settings done
o Automatic periodic upload of data based on configuration settings
Access configuration can be horizontal [access to all data for one / collection of
retail stores] or vertical [access to only sales or inventory or purchase data for
all stores] or a combination of both
Send notice to all staff in all outlets [like corporate notice board]
Financial Accounting - centralized financial control - can see the data both
outlet wise and as a consolidated view. Contains Day Book, Cash Book, Bank
Book, Ledger, Statistics, Group Ledger List, Registers like Bills Pending
Register, Purchase Register, Sales Register, Debit Note Register,Credit Note
Register, Journal Register etc.
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Audit Viewer - helps in workforce activity monitoring, outlet staff management
and staff schedule management.
Store Administration
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the outlets are operated and the VAT tax based state, just add/modify the VAT commodity master
on VAT commodity makes the VAT for the state and the job is done. This approach
administration simple and easy also increases compliance with VAT laws and
reduces the cost of compliance
Unique packing hierarchy to supportmultiple Enables to view the reports in any packing that is
packs and automatic packing unit conversion easy for managing
during inventory transactions
Area Masters enabled with to capture complete Facilitates repeatable and consistent delivery
information required for delivery including zone business such as home delivery in F&B,
classification, landmark, traffic conditions, Supermarkets etc., where delivery time can be
approximate time to destination etc. measured and plans made as per variance in
delivery plans
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supplier, customer, service provider, customer master and also in supplier master. This
transporter, employee etc. Contact can be of helps to manage relationships effectively.
multiple type like both customer and a supplier
at the same time. Just need to type the
attributes specific to a contact type.
Multiple contact person, address, telephone Makes it easy to search for a person within an
numbers and other coordinates captured for a organization or list all the contacts of an
given organization. organization or contacts of a particular
department in an organization etc.
VAT commodity master for every state in which When there are amendments in VAT laws of a
the outlets are operated and the VAT tax based state, just add/modify the VAT commodity master
on VAT commodity makes the VAT for the state and the job is done. This approach
administration simple and easy also increases compliance with VAT laws and
reduces the cost of compliance
Unique packing hierarchy to supportmultiple Enables to view the reports in any packing that is
packs and automatic packing unit conversion easy for managing
during inventory transactions
Area Masters enabled with to capture complete Facilitates repeatable and consistent delivery
information required for delivery including zone business such as home delivery in F&B,
classification, landmark, traffic conditions, Supermarkets etc., where delivery time can be
approximate time to destination etc. measured and plans made as per variance in
delivery plans
Category Management
RayMedi HQ supports powerful category management which allows various SKU's to be
classified suiting the business needs of the organization.
Key Features Key Benefits
Flexible and extensible categorization of master Category classification supports hierarchy, multi-
data value category etc. depending on need
Configure category to be part of matrix SKU Enables tracking inventory by size, color, fabric,
creation and management brand etc suitable for garments, footwear
verticals
Simple and powerful category based summary Gives good insight into the category that are
and detail reports selling, category that are generating the margins,
category that are loss leaders etc. Can drill down
into the SKUs in the category.
Central Purchase
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cycle and order planning is done based on that based on analysis of stock, sales and demand
information as per plan
Purchase history availability from all the Optimum ordering is done based on analyzing
supplier enables ordering based on thatt. purchase history, stock and sales
Automatic notification on delivery date based Helps to know the delivery date for a given order
on maximum lead time for the item given in the in time so that planning can be done properly
product master
Facility to provide shipping instructions along Ensures PO is given from HO and the physical
with the purchase order (PO) and the option to goods receipt is at warehouses or at outlets
have multiple shipping address for each PO directly
PO from HO is sent to warehouse for GIN Ensures 100% control over goods coming in for
[Goods Inward Note]. GIN is approved only the quantity, rate, tax, offers and all other
when it matches with the PO 100% commercials.
Discrepancy between PO and GIN makes the Best practice to follow and also ensures trade
GIN unapproved and approval by the purchase information is always in sync with accounts
manager is must for accepting the GIN and information, making the supplier relationship
doing GRN at the warehouse transparent and easy to manage.
Status tracking for PO to give complete visibility Comprehensive central purchase management
into the PO like whether PO has been approved, process, ensures easy tracking, follow-up and
released to supplier, GIN done, GIN discrepancy management of supplier relationship and goods
waiting for approval, GRN done, payment receipt efficiently and effectively.
pending, payment made etc.
Availability of discrepancy reports (between PO PO status help on follow-up delivery and the
and invoice, between invoice and goods
discrepancy reports help in bring closure to
received), purchase/damage return reports and
PO status based reports
the issues. This way, issues with supplier are
resolved before goods are accepted. This
creates healthy supplier relationship. And all
this are done at HO level and store
operations are not affected
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Goods Receipt Management
Along with a good central purchase process, efficient good management ensures proper
inventory. RayMedi HQ ensures support for the same.
Key Features Key Benefits
Goods
Receipt Management
Supports multiple EAN code for the same item, multiple Automatic stock selection from
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prices for the same item, goods receipt based tracking warehouse (for the stores) can be set
etc. based on FIFO, LIFO, highest MRP first
etc.,
Generation of non-moving inventory
reports based on date of receipt.
Managing supplier payables is one of the critical factors in the retail chain management.
Also it ensures good supplier relationship, which in turn ensures proper supply of goods.
Key Features Key Benefits
Supplier payment day configuration and Ensures prompt payment to suppliers and thereby
payment planning enhancing supplier relationship
Bill by bill adjustment including the settlement Accurate accounting in the right groups and ledger,
discount and other discount and charges making it easy to measure the trading profit and
accounted for in the right ledgers. Easy loss. Easy tracking of all commercial transactions
tracking and follow-up on the breakage, help optimal payout
damage, expiry, non-moving and other returns
and also the other credit notes from the
supplier
Complete cheque management from issue to Ensure complete tracking of payment pending to
reconciliation cheque preparation, printing and issue to supplier
and bank reconciliation
Price Management
Selling price of products is always a crucial piece in the retail, especially with increasing
stores and the tendency of the shops to sell the products at a discount. To ensure
competitive edge it becomes important to fix the optimum price based on the market
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conditions as well as without affecting the profit/return on a particular item. With chain
shops, the difficulty in fixing the prices goes up as we need to ensure uniform prices
across all the stores. RayMedi HQ through its central price management features gives a
lot of control and facilities in managing the selling prices.
Key Features Key Benefits
Facility to control selling price of products from Fine grained selling price management, based on
the central office. Selling price change can be whether a product is a footfall leader, the profit
effected store-wise, for a group of stores or for leader, volume leader etc., gives you control over
all stores. Also, selling price change can be your sales and the margins earned. Such simple
effected for one batch of the same product, for and easy price management also makes your
select batches or for all batches retail business agile and gives an edge to your
business
Import / Export of price change helps you do
price change for a number of items in one shot Fast, Simple and Easy way to change prices for a
very fast. You can just export the selling price large number of items. Directly controlled and
data into an excel file, change the prices, executed from HO ensures there are no mistakes
review it and import it back to the system at store level.
Controls while changing selling price help The controls reduces your loss due to pricing
prevent price change mistakes. The system errors and also make sure your compliance with
gives a warning message when the changed statutory pricing laws, if any, in the country of
selling price is below landed cost, yields below operation.
expected gross margin or above MRP, when
MRP is fed into the system
Inventory category based selling price change, Makes price management for related products
group based and inventory type based such as easy
parent / child, bulk / repack etc. supported as
part of the selling price change. You can specify
whether change in selling price of a parent item
should reflect on the child item also etc...
Price levels including price level formula for Consistent and easy price administration. Ensures
calculating various prices based on base price excellent customer relationship due to consistent
are available i.e. The retail price can be set as pricing mechanism.
the base price level in terms of which other
prices such as institutional customer price level,
wholesale customer price level, web price level
etc. are defined. Based on change in retail price
level, all other price levels are computed and
effected
Selling price discrepancy reports To identify same product with different selling
price in different outlets
It goes without saying that having an active promotions and schemes is inevitable for the
success of a retail chain. RayMedi HQ supports wide variety of promotions and schemes
and all can be administrated and controlled from HO.
Key Features Key Benefits
The concept of promotion family and the actual Reports based on the promotion family and a
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promotion or scheme definition help make comparison between different family gives which
management easy to administer and effective kind of promotion is a hit among consumers. Also,
to measure, analyze and manage. The the product details within a promotion gives
promotion family help define the rules of a insights into which kind of promotion is attractive
promotion and the actual promotion definition for consumers. This help retailers identify the kind
help give the actual product(s) on which the of promotions that are effective for each category
promotion is applied of products
Promotion includes happy hour, product based, Comprehensive promotion management to suit
category based, offer till stock lasts / stock the needs of a retailer
reaches a certain level, offer valid for specific
period, days of the week, dates in a month, bill
value based etc.
Sales, cost and margin reports on promotions Gives complete visibility into the effectiveness of
the promotions and their contribution to the top
and bottom line
Promotions is a very creative activity and to Extend and customize the promotions module as
meet the demanding needs of retail business per the needs of a retailer. One-of-kind of such
managers, promotions module can be offered feature gives unparalleled advantage to the
for extension (OR) extensions done as per retailer to always stay ahead of the competition.
specific customer need. The module offers a
separate Web Services API to make it more
extensible
Retaining existing customers and attracting new customers is the foremost challenge of
any retailer. RayMedi HQ gives powerful tools to manage the customers effectively.
Key Features Key Benefits
Facility to record customer data at the point of
sale and process loyalty program at the HO. Ensures effective customer management without
Tools available to merge customers across loosing track of even a single visitor.
stores at the time of adding existing customer
as part of loyalty program.
Automatic consolidation of all purchases by a Due to such automatic consolidation,
customer in all stores and through all channels
redemption can be done during the purchase
such as online [web], telephone order, walk-in
etc.
itself (at any stores) giving customers instant
gratification
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available. Three way reconciliation between the payments, making it easier and faster
bill amount, amount tendered at POS and the
amount received from the 3rd party payment
vendor, makes it easy to measure the cost of
3rd party payments and the time it takes to get
paid
Replenishment
Replenishment or re-order is also one of the critical functions of a retail shop. Any
miscalculation in the replishment levels results in sub-optimal utilization of the
organization resources. RayMedi HQ supports different kind of replishment flows and
whichever flow is suitable for the organization is chosen.
Key Features Key Benefits
Provision for setting outlet wise reorder qty,
minimum and maximum stock level for all Ensures effective replenishment through reorder
items. settings
Replenishment based on the indent request All indent requests from the outlets are pooled-up
received from the outlets and based on the stock analysis( current stock
level at warehouse & outlets, indents received
from other outlets, sales order received) HQ send
advices to warehouse for replenishing the goods
Real-time inventory monitoring system at HQ Accomplished by sending stock transfer advices
facilitates effective replenishment by sensing from HQ to warehouse based on the current stock
the current stock positions at the outlets(Min- level and minimum & maximum stock level defined
Max method, flow through method) for a given item for that outlet.
Reorder settings made for the warehouse Based on the indent received from the warehouse
helps the user to compute right quantity to be and reorder settings, it automatically computes the
ordered for the next inventory cycle quantity to be procured from the supplier and
recalls the quantity while making purchase order
for that item
Replenishment module supports both Based on the ownership of the outlet (chain-
franchisee and chain owned outlet model
owned/Franchisee), HQ sends advices for the
warehouse for replenishment. i.e, it send
stock transfer advice for chain-owned outlets
which facilitates the transfers between the
branches and for franchisee, HQ send sales
order advise, by which ware house will issue
invoice for the stock requested by that outlet.
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Min-Max Method of Franchisee/Chain Owned WareHouse Controlled
Replenishment Flow Replenishment Flow Replenishment Flow
Warehouse Management
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Responsibilities And Qualifications Of ADIDAS RETAIL STORE
manager……
Primary Responsibilities:
• Ensure all sales and profitability goals for the store are met by 1) providing effective
training in the areas of customer service, product knowledge, inventory control and visual
merchandising displays; 2) providing personnel development; 3) controlling budgetary
expenses; 4) controlling labor management; 5) implementing strategic thinking and
planning
• Lead by example; setting the right example and having actions that speak louder than
words; modeling world-class customer service, sales performance, sports-performance
product knowledge and a winning attitude; define the team vision and celebrates
performance successes as goals are met & exceeded
• Recommend and participate in all management decisions including goal setting, talent
assessment, performance management, recruitment and development; develop sales
contests to motivate staff and create positive morale
• Provide coaching and direction to the store team to take action and to achieve
operational goals; constantly review store environment and key business indicators to
identify problems, concerns, and opportunities for improvementPrimary
Responsibilities:
• Ensure all sales and profitability goals for the store are met by 1) providing effective
training in the areas of customer service, product knowledge, inventory control and visual
merchandising displays; 2) providing personnel development; 3) controlling budgetary
expenses; 4) controlling labor management; 5) implementing strategic thinking and
planning
• Lead by example; setting the right example and having actions that speak louder than
words; modeling world-class customer service, sales performance, sports-performance
product knowledge and a winning attitude; define the team vision and celebrates
performance successes as goals are met & exceeded
• Recommend and participate in all management decisions including goal setting, talent
assessment, performance management, recruitment and development; develop sales
contests to motivate staff and create positive morale
• Provide coaching and direction to the store team to take action and to achieve
operational goals; constantly review store environment and key business indicators to
identify problems, concerns, and opportunities for improvement
• Coordinate training to staff to ensure all employees are trained in procedures such as
opening and closing, cashiering, returns and all other functions related to the operation of
the store
• Drive operational excellence through accurate and timely recordkeeping, inventory
audits, safety and security compliance, expense control, development and maintenance of
labor cost budgets and communication of monthly financial results to store management
57
team
• Demonstrate confidence and focus during periods of high volume or unexpected events
to keep store operating to standard and to set a positive example for the store team
• Drives the implementation of company programs by developing action plans and
directly motivating and instructing the store team to implement them to meet operational
and organizational objectives
• Utilize existing tools to identify and prioritize communications and regularly uses
discretion to filter communications to the store team; communicate clearly, concisely and
accurately in order to ensure effective store operations
• Sharpen skills by establishing development goals with manager, on the job training,
utilizing internal and external training programs; work towards the goal of obtaining an
adidas Group corporate position
Qualifications:
• A passion for, and knowledge of sports apparel & footwear
• Bachelor's degree (B. A.) from four-year college or university; or 3 or more years in the
Sporting Apparel & Footwear Retail management industry; or equivalent combination of
education and experience
• Demonstrated leadership skills, success in empowering and developing a team
• Ability to manage store operations independently
• Experience training, developing and motivating retail teams
• Able to manage effectively in a fast-paced, energetic environment
• Driven to deliver superior service by exceeding customer expectations
• Demonstrated ability to develop relationships with customers and co-workers
• Ability to plan and execute strategies and achieve goals
• Excellent verbal, written English and interpersonal communication skills
• Be a self-starter and use good judgment in all situations
• Presents a professional image in appearance, words and actions
• Ability to manage multiple situations simultaneously
• Ability to manage resources to ensure that established service levels are achieved at all
times
• Knowledge of customer service techniques
• Knowledge of supervisory practices and procedures
• Strong problem-solving skills
• Team-building skills
• Ability to handle confidential and sensitive information
• Flexible to be scheduled in support of high traffic retail hours (evenings and weekends)
We invite you to join our team and come represent the three stripes! adidas offers growth
opportunity, flexible work arrangements, competitive pay and benefits and an employee
discount at all adidas stores. The above information has been designed to indicate the
general nature and level of work performed by employees within this career opportunity.
It is not designed to contain or be interpreted as a comprehensive inventory of all duties,
58
responsibilities, and qualifications required of employees assigned to this job. We are an
equal opportunity employer.
adidas' founder, Adi Dassler, was inspired by a single idea when he made his first shoes,
at the age of just 20, to provide every athlete with the best footwear for his or her
respective discipline. And 85 years later, we have almost 16,000 employees worldwide
who put this same passion and commitment to innovation into each concept, component,
process and product we produce.
• Coordinate training to staff to ensure all employees are trained in procedures such as
opening and closing, cashiering, returns and all other functions related to the operation of
the store
• Drive operational excellence through accurate and timely recordkeeping, inventory
audits, safety and security compliance, expense control, development and maintenance of
labor cost budgets and communication of monthly financial results to store management
team
• Demonstrate confidence and focus during periods of high volume or unexpected events
to keep store operating to standard and to set a positive example for the store team
• Drives the implementation of company programs by developing action plans and
directly motivating and instructing the store team to implement them to meet operational
and organizational objectives
• Utilize existing tools to identify and prioritize communications and regularly uses
discretion to filter communications to the store team; communicate clearly, concisely and
accurately in order to ensure effective store operations
• Sharpen skills by establishing development goals with manager, on the job training,
utilizing internal and external training programs; work towards the goal of obtaining an
adidas Group corporate position
Qualifications:
• A passion for, and knowledge of sports apparel & footwear
• Bachelor's degree (B. A.) from four-year college or university; or 3 or more years in the
Sporting Apparel & Footwear Retail management industry; or equivalent combination of
education and experience
• Demonstrated leadership skills, success in empowering and developing a team
• Ability to manage store operations independently
• Experience training, developing and motivating retail teams
• Able to manage effectively in a fast-paced, energetic environment
• Driven to deliver superior service by exceeding customer expectations
• Demonstrated ability to develop relationships with customers and co-workers
• Ability to plan and execute strategies and achieve goals
• Excellent verbal, written English and interpersonal communication skills
• Be a self-starter and use good judgment in all situations
• Presents a professional image in appearance, words and actions
• Ability to manage multiple situations simultaneously
59
• Ability to manage resources to ensure that established service levels are achieved at all
times
• Knowledge of customer service techniques
• Knowledge of supervisory practices and procedures
• Strong problem-solving skills
• Team-building skills
• Ability to handle confidential and sensitive information
• Flexible to be scheduled in support of high traffic retail hours (evenings and weekends)
.
adidas' founder, Adi Dassler, was inspired by a single idea when he made his first shoes,
at the age of just 20, to provide every athlete with the best footwear for his or her
respective discipline. And 85 years later, we have almost 16,000 employees worldwide
who put this same passion and commitment to innovation into each concept, component,
process and product we produce.
60
REFERENCES
www.nike.com
http://www.adidas.com/ http://www.gofrugaltech.com/chainshops/war
ehouse_management.html
www.reebok.com
http://www.informationweek.com/newsflash/nf620/0303_st2.htm
www.nsbgroup.com/NSBFiles/files/cs_adidas_02_LowRes
http://www.gofrugaltech.com/chainshops/index.html?
gclid=CIaK8ZXolJgCFQ4Zewod3DHAmA
http://www.indianrealtynews.com/retail-market/adidas-with-its-new-
retail-endeavor-in-india.html
http://www.gofrugaltech.com/chainshops/warehouse_management.ht
ml
www.scribd.com
www.managementparadise.com
Search Engine :
GOOGLE, YAHOO.
JOURNALS: Business Today, Harvard Business Review.
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