2-retail formats in india
TRANSCRIPT
Retail Formats In India
Jitendra Kumar Dixit
Types of Retail Formats in India
1.Traditional Kirana Stores (Mom-and-pop Stores )
2.General Stores
3.Convince stores
4.Grocessory Stores
5.Departmental Stores
6. Kiosks
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Store Based
Merchandise Based
Retail Formats
Non-store Based
Ownership Based1.Independent Retailer2.Chain Store3.Franchising4.Leased Departments5.Vertical Marketing System6.Consumer Co-operatives
General Merchandise1.Discount Stores2.Specialty Stores3.Factory Outlet Stores4.Hyper Markets5.Departmental Stores6.Membership Club
Food1.Convenience Store2.Conventional Super Market3.Food Based Super Stores4.Combination Stores
Traditional1.Direct Marketing2.Vending Machines3.Catalogue Marketing4.Tele -Marketing5.TV Home Shopping
Non-traditional
1.Electronic Shopping2.Video Kiosk3.Airport Retailing
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Format Type Variety Assortment
Pricing Policy
Service Size(sq.ft.)
Location
Hyper Stores Broad Very Low to Deep
Low 100-300
Specialty Stores
Narrow Deep High High 4-12 Malls
Department Stores
Broad Broad Average to High
Average to high
100-200 Malls
Discount Stores
Average Average Low Low 20-30 Companies outlets & malls
Factory Outlet Narrow Very Deep Low low 50-120 Stand alone stripe centre
Membership Club
Average Limited Low low Vary from club to club
Members store/institutional areas
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Ownership Forms
IndependentChainArchies
BigBazar
Lifestyle Store
McDonalds Mobile Store
Pizza Hut
KFC
Café Coffee Day
Leased departmentVertical marketing systema) Independent Firms VMS
b) Partially integrated VMS
c) Fully integrated VMS
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Franchise(French word means honesty or freedom)
Aptech Domino’s Pizza Koutons Sagar Ratna Vishal Mega Mart McDonalds
Types Of Franchising-
a) Product or a trademark Franchising
b) Business Format Franchising
c) Area Development Franchising System
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Competitive State of Independents
Advantages Flexibility in formats,
locations, and strategy Control over investment costs
and personnel functions, strategies
Personal image Consistency and independence Strong entrepreneurial
leadership
Disadvantages Lack of bargaining power Lack of economies of
scale Labor intensive
operations Over-dependence on
owner Limited long-run
planning
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Store-based Retail Mix
Convenience store –Modern kirana stores(area ranging from 2000-3000 sq.ft.)
Positive Aspecta. Quick Shopping
b. Less checkout time
c. Self service level
d. Long shopping hours
Negative Aspects-a. Limited product ranges
b. High pricing
c. Small stores
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Supermarket/Super- stores –(area ranges from 20,000 to 50,000 sq.ft)
Features-Location : Near/Edge of town
Size : Large
Product Range : Vast range, deep & broad
Pricing policy: Low pricing
Selling theme: Every Day Low Pricing(ELDP)
Target Market: Mass
Atmosphere: Busy & well organized
Service Level: Self services
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Combination store/Super-centers- A super centers is a combination of super market and a discount retail store. Super centers usually have a average size of about 1,50,000 sq.ft and allot 30-40% of their retail space to grocery items and remaining to discounted general merchandise.
Discount stores-a) Limited line discount storesb) Full line discount storesc) Off-price stores
Specialty storeFactory outletFlea market
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Hyper Market-Selling area: >50,000 sq.ft
Cash counters: 20-60
Number of items sold: thousand to lakhs
Number of employees: Hundred to thousands
Covered area: up to 60%
Pricing policy: Special (discounted)
Discount:4-405
Central theme: Is se sasta kahi nahi
Service level: Self services
Payment mode: Cash/credit/debit cards
Owner ship structure: Corporate chain
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Competitive State of Store based Retail Mix
Advantages
Bargaining power Cost efficiencies Efficiency from
computerization, sharing warehouse and other functions
Defined management philosophy
Considerable efforts in long-run planning
Disadvantages
Limited flexibility Higher investment costs Complex managerial
control
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Nonstore-based Retail Mix (Non-traditional Retailing)
Direct Response Marketinga. Catalogue/ Mail order Retailing
b. Television Shopping
c. Electronic Shopping/Electronic Retailing
Direct sellingWorld Wide WebVending machine
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Video Kioska. Digital Menu board
b. Digital Order Station
c. Financial services Kiosk
d. Internet Print Station
e. Internet Kiosk
f. Movie tickets
g. POS-related
h. Vending Kiosk
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Few Indian Retailers Next retail India Ltd RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s
Super, Daily & Fresh Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion
Station, Brand Factory, E-Zone etc. The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark,
Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma. Lifestyle International-Lifestyle, Home Centre, Max, Fun City and
International Franchise brand stores. Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom
discount chain. Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World Aditya Birla Group - more Outlets 04/07/23 JITENDRA KUMAR DIXIT 15
Convenience Store Strategy Mix
Location:Neighborhood
Merchandise:Medium width and low depth of assortment; average quality
Prices:Average to
Above average
Atmosphere andServices:Average
Promotion:Moderate
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Conventional Supermarket Strategy Mix
Location:Neighborhood
Merchandise:Extensive width
and depth of assortment; average quality; manufacturer,
private, and generic brands
Prices:Competitive
Atmosphere andServices:Average
Promotion:Heavy use of
newspapers, flyers, and coupons
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Combination Store Strategy Mix
Location:Community shopping center
or isolated site
Merchandise:Full assortment plus health
and beauty aids and general merchandise
Prices:Competitive
Atmosphere andServices:Average
Promotion:Heavy use of
newspapers, flyers
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Specialty Store Strategy Mix
Location:Business district or
shopping center
Merchandise:Very narrow width and
extensive depth of assortment; average to
good quality
Prices:Competitive to Above average
Atmosphere andServices:
Average to excellent
Promotion:Heavy use of displaysExtensive sales force
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Traditional Department Store Strategy Mix
Location:Business district, shopping
center or isolated store
Merchandise:Extensive width and
depth of assortment; average to
good quality
Prices:Average to
Above average
Atmosphere andServices:
Good to excellent
Promotion:Heavy ad and catalog
use; direct mail; personal selling
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Full-line Discount Store Strategy Mix
Location:Business district, shopping
center or isolated store
Merchandise:Extensive width and
depth of assortment; average to
good quality
Prices:Competitive
Atmosphere/ Services:Slightly below
average to average
Promotion:Heavy on newspapers;price-oriented; selling
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Variety Store Strategy Mix
Location:Business district, shopping
center or isolated store
Merchandise:Good width and some depth of
assortment; below-average
to average quality
Prices:Average
Atmosphere/ Services:Below average
Promotion:Use of newspapers
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Off-Price Chain Strategy Mix
Location:Business district, shopping
center or isolated store
Merchandise:Moderate width and
poor depth of assortment;
average to good quality;low continuity
Prices:Low
Atmosphere/ Services:Below average
Promotion:Use of newspapers;
brands not advertised;limited selling
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Flea Market Strategy Mix
Location:Isolated store
Merchandise:Extensive width and
poor depth of assortment;
low continuity; variable quality
Prices:Very Low
Atmosphere/ Services:Very low
Promotion:Limited
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Store-Based Strategy Mix
A strategy mix is the firm’s particular combination of:store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods
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The Wheel of Retailing
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Retail Life Cycle
Retail institutions pass through identifiable life stagesintroductiongrowthmaturitydecline
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Identifying and Understanding Consumers
What Makes Retail Shoppers Tick
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Demographicsconsumer data that is objective, quantifiable, easily identifiable,
measurable
Lifestylesways in which consumers and families live and spend
time and spend money
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Understanding Consumer Lifestyles: Social Factors
Lifestyle
CultureReference
Groups
Social Class
FamilyLife
Cycle
Time Utilization
HouseholdLife
Cycle
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Understanding Consumer Lifestyles: Psychological Factors
Lifestyle
Personality Attitudes
PerceivedRisk
PurchaseImportance
ClassConsciousness
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The Consumer Decision Process
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Stimulus Problem Awareness
Information Search
Evaluation of Alternatives
Post-PurchasePurchase
Demographics Life Style
A-The Decision Process
B-Factors affecting the process
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Solid arrow connect all the elements in the decision process & show the impact of demographics & life-style up on the process.
The Impact of Perceived Risk on Consumers
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Marketing Strategy
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Types of Impulse Shopping
Completely unplannedPartially unplannedUnplanned substitution
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Reasons for Leaving an Apparel Store Without Buying
Cannot find an appealing styleCannot find the right sizeNothing fitsNo sales help is availableCannot get in and out of the store easilyPrices are too highIn-store experience is stressfulCannot find a good value
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Institutional Change in Retailing
Wheel of Retailing Accordian Theory Dialectic Process Natural Selection Retail Life Cycle
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Wheel of Retailing
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Retail Accordian Theory
Broad-based outlets with wide assortment ↓
More specialized with narrow assortment ↓
Back to wide assortment
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Dialectic Process Retailers mutually adapt in the face of competition from
“opposites” When challenged by a competitor with a differential advantage, the established retailer will adopt strategies and tactics in the direction of that advantage (making the innovator less attractive)
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Department Stores•High Margin•Low turnover•High Price•Full Service•Downturn location
Discount Stores•Low Margin•High Turnover•Low Price•Low rent Location•Self Service
Discount Department Store•Average Margin•Average Turn-over•Moderate Price•Limited Services•Sub urban locations
Thesis
Anti-Thesis
Synthesis
Dialectic Process
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Natural Selection and Adaptive Behavior-
Environmental need for a certain kind of retailing institution → it will evolve
Need ceases to exist → the institution will tend to disappear
Institutions that most effectively adapt toenvironmental changes are most likely to survive
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Retail Life Cycle
Introduction Growth/ Accelerated Development Maturity Remodel stores Lower costs MIS – technology Every day low prices Reevaluate mgt. practices and service Figure out how they can deliver value Decline
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