new age retailing

7/29/2019 NEW AGE RETAILING

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NEW AGE

RETAILINGBy -Amit ChakrabortyM.COM,SEM-III, ROLL NO.- 68.(MARKETING MANAGEMENT)


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INTRODUCTION

The retail industry is becoming one of the mostcompetitive in India, with supermarket chains and

malls mushrooming all over.

Retailing is not restricted to tangible products. Itcovers services also. In other words, retailing is the sale of

goods and services to the ultimate consumer forpersonal, family or household use.

Retailing involves more than selling tangibleproducts. It includes every sale of goods and services tothe final consumer.


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According to India Retail Report 2009 by Images, "India's

rural markets offer a sea of opportunity for the retail sector. RuralIndia accounting for 55% of private retail consumption.

With most of the retail markets getting saturated in Tier I andTier II cities, the next phase of growth is likely to be seen in the

rural markets.

ITC (e-Choupal) & HUL (Shakti) DCM (Hariyali Kissan Bazaar)

Godrej Agrovet (Aadhar) Reliance Retail (Fresh and Fresh Plus) Tata (Kisan Sansar) M&M (Shublabh)


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Modern retailing has entered India in form of mallsand huge complexes offering shopping, entertainment,leisure to the consumer as the retailers experiment witha variety of formats, from discount stores to

supermarkets to hypermarkets to specialty chains.

Small towns in Maharashtra are emerging as retail

hubs for large chain stores like Pantaloon Retailbecause many small cities like Nagpur have a studentpopulation, lower real estate costs, fewer powercuts and lower levels of attrition.


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Opening stores at 7 in the morning to shutting

down well after midnight, overtime to increasetheir sales --joggers and night owls.

Reliance Retail, for instance, has advanced opening

timing for some of its supermarkets in Maharashtra bytwo hours to 8 am to attract joggers and office goers,

while Future Group's KB Fair Price stores open evenearlier at 7.

SHOP TILL YOU DROP :

OPEN EARLY,CLOSE LATE--BOOST SALES


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It's not just joggers who shop in the morning. Consumersprefer fresh stock especially for fruits and vegetables segment.

Damodar Mall, director for food strategy at Future Group ,says KB Fair Price sells almost 40% of fresh produce by 10 am, itsearlier opening time.

Good sales in the live bakery section as many consumers have

started having daily breakfast in stores after their morning walk.


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In India too, global retailers open their stores early albeit

they sell their wares to resellers and not end consumers.Bharti-Walmart's Best Price Modern Wholesale stores andFrance's Carrefour SA open their stores at 7.00 am while someMetro Cash and Carry stores open at 6 in the morning.

Industry watchers say the change in store timings shows that

retailers now recognize the heterogeneity among consumers.

Indian retailers seem to be taking a cue from globalcounterparts. World's largest retailer Wal-Mart Stores Inc. opensits outlets in the US as early as 6 am. In fact, several shops in the

West remain open 24 hours a day.


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Buoyed by the response, the mall again kept it open until 12:00am on the eve of the Independence Day as retailers chipped in

with flat 50% off between 10:00 p.m. and mid-night, dubbed ashappy hours. Gaurav Kumawat, retail manager at Korum Mall,said sales that night was 350% more than normal weekdays.

Some retailers open stores for longer hours only on days whenhigher sales are almost guaranteed. In February, Korum Mall atThane near Mumbai kept its mall open until mid-night for twonights in a bid to cash-in on Valentine Day celebrations. Otherdays, it closes at 9:30 pm.


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But extended shop timing means higherManpower and Electricity. Profit we couldearn during the extra hours will not offset the

costs

COST EXTRA HOURS

In Delhi, Select Citywalk mall at Saket hasrequested cafes, restaurants and the food courtoperators to open at 8 am in the morning toserve breakfast for people visiting the gym in themall and other office goers. Coffee shops willopen early for joggers to have snacks andbreakfast.


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Changes are happening in retail India. The localbania has gradually transformed himself into a smallsuper market.

The person driving the change is the Indianconsumer. In the not so distant past, manufacturerscreated a product, advertised it and sold it throughtheir distribution channels. The manufacturing companies enjoyed economicpower. They determined prices of the product that theretailers could stock and also the dealer and

distributor margins.

RETAIL SHELF SPACE


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In case of dispute with the distributor orretailer, it would not be rare for the manufacturerto discontinue supplies.

Today retail has emerged as a separatefunction by itself .Retailers now decide on theproducts & brands they want to stock.

Retail shelf space is now is of prime importance.


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Transform nearly 20,000 mom-n-pop stores and chemistsselling its brands in 72 cities into one resembling an organizedretail store such as Spencer's & Big Bazaar, though small in size."

HUL PERFECT STORES

HULs Perfect Stores initiative, launched in May 2010,

Under this scheme, HUL upgraded conventional retail outletsto perfect stores, by setting up a standardized look, with set

plans for fixtures and products display.

Project 'perfect stores' is the world's biggest consumerconnect initiative in Unilever family


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Hindustan Unilever Ltd (HUL) has doubled its Perfect Stores

network in the 2011-2012 fiscal, taking the count of retail storescovered under this scheme, to 11 lakhs. Resulted in consistentgrowth in sales for HUL, and a higher market share in growth forHULs overall portfolio, accounting for more than 90% of the

Companys turnover.

These perfect stores'' are standardized ones with set plansfor fixtures and products and display. HUL's experience showsa neat segmented arranging of similar products helps boost

sales 30% of a store since 70% of purchase decisions are madeon the spot.

Helped to improve availability and visibility of its

products in retail stores.


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Additionally, HUL has used technology, such as analytics

Project iQ, to reach out to these stores.

The companys salesmen have been provided with a hand heldterminal called iQ, which gives customized recommendations for

each store, once the device is synced.

These initiatives have helped HUL to become more efficient,deliver stocks faster and reduce inventory on product shelves.

The objective of the programme is to help the customerbetter navigate the store.


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A Shoppers Trend Study by Nielsen found awareness aboutprivate labels has gone up from 64 per cent in 2009 to 78 per centin 2010 across 11 cities in India.

Bharti Wal-Mart's private brand 'Great Value' tops the floorcleaner segment with 50 per cent share

Bharti Wal-Marts top three selling spot in terms of marketshare in categories such as tea, wheat flour, rice and brandedsnacks according to Nielsen latest retail index service during July-September 2011 period for the India FMCG

PRIVATE BRANDS


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Saving is key to the Indian middle class consumer

and based on this concept the big bazaar was created.

The Big Bazaar stores which started selling ownbrands few years ago. Brands such as tasty treat and

Clean Mate are now established.

Knighthood (much lower that branded products) an exclusive wear in trouser and shirts.

DJ & C a line of denim wear and cool casual wear. Pink & Blue casual wear for kids.Studio NYX party and lounge wear. C T ee cotton t shirts with funky prints.


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Easyday stores drives health camps

With the aim of serving its customers beyond the stores andworking for the community, Easyday stores, the Bharti Retail

subsidiary organized 'store of the community.

This theme enabled the stores to take initiatives for differenthealth related campaigns such as blood donation, eye donation,

dental and eye check up and health awareness camps.

These camps had an awesome response with associates andcustomers of Easyday stores coming forward to donate 31747units of blood in less than a month.


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The health awareness camp in Jaipur resulted in participationof 135 associates and customers of Jaipur Easyday. This camp gavefree consultation of Blood Pressure, Blood Sugar, BMI, ECG, etc.

In addition to this 809 people received free eye check upsand dental check ups in Ambala, Haryanawhere they weregiven reports without any charges by doctors.


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Shoppers Stop First Citizen loyalty programme was

the first loyalty programme in the retail category inIndia that was launched in the year 1994.

Shoppers Stop :

First Citizen Programme


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With this program customers become part of theFirst Citizen club where they have to submit anapplication form along with the application fee ofRs. 150(now it is Rs.300).

Membership to regular customers is provided inthree stages Classic Moments, Silver Age andGolden Glow.

The Shoppers Stop First Citizen loyalty

programme has emerged as the largest and mostsuccessful programme in the Retail sector with 2.5million loyalty members base, and growing.


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Benefits come hand in hand with First Citizen program:

Customers gain reward points each time they shop atShoppers Stop stores or shoppersstop.com

Exclusive benefits & privileges Exclusive offers on purchase Updates on various products at Shoppers Stop Exclusive cash counters which help customers to

spend more time shopping than waiting in a queue

First Citizen Program contributes nearly over 50%of Shoppers Stop sales annually.


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The rapidly growing First Citizen Program clearly proves thefact that Shoppers Stop has been able to successfullyconnect

with their customers through their service and specialpromotional offers which has converted many of them intoloyal customers.

At Shoppers Stop priority is given to customer

convenience with customer friendly signage, alteration desk,customer service desk with gift wrapping service and offcourse most importantly the exclusive First Citizen Memberslounge to name a few.


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PROMOTION TECHNIQUES

Big Bazaar - Isse sasta aur accha kahin nahi :

Big Bazaar has adopted value pricing in which they winloyal customers by charging a fairly low price for a high

quality offering.

In January 2007, BigBazaar introducedWednesday Bazaar concept called Hafte Ka SabseSasta Din with the aim to give homemakers the power

to save the most on this day of the week

Wednesday Bazaar Hafte ka sabse sasta din:


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Sabse Saste Teen Din (Big days) :-

In 2006 they started a new shopping festival, i.e. SabseSaste Teen Din on 24, 25 and 26th of January. Big bazaarthrowed up to 65% of on each & every products in the

store for three days.

The Great Exchange Offer

Bring anything old and take anything new conceptwhich started from the 16th of Feb 2008 at theLandmark store.


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CONSUMER CONTESTS

CHALA CHANGE KA CHAKKAR

LAYS GIVE US YOUR DELICIOUSFLAVOUR CONTEST(GUYDFC)

LAYS FLAVOUR CUP-KAUN

JEETEGA WORLD CUP (January 2011)

AMUL BUTTER BASH CONTEST

(ON FACEBOOK) 2011

CHALA CHANGE KA CHAKKAR (FEBRUARY 2008)


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CHALA CHANGE KA CHAKKAR (FEBRUARY 2008)PROMOTION LED BY BRAND ENDORSERS JUHICHAWLA,SAIF ALI KHAN & NEW AMBASSADOR

M.S.DHONI.

ODE TO THE EMPOWEREDINDIAN CONSUMER

CORE PROPOSITION-ZINDAGI BADAL LO

NOT AN UNUSUAL CELEBRITY MEET & GREET

ITS A CHANCE TO LIVE HIS LIFEFOR A DAY,AS HE LIVES YOURS.


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EACH MOMENT IS LIKE

A GAME BETWEEN HEART AND HEAD.

Most times HEAD RULES OVER HEART.What happens if you listen to your heart

and let it win over your head for a change?Make things that matter to the heart happen!

What do you truly appreciate - a few potato chips, carefully made with

natural and healthier ingredients for thatirresistible multi-sensorial journey / loaded experience

OR

Plenty of not so great tasting potato chips in the bag?Be a little DilLogical Make things that matter to the heart happen!

GIVE US YOUR DELICIOUS FLAVOUR


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GIVE US YOUR DELICIOUS FLAVOUR

LAUNCHED IN OCTOBER 2009

THREE STAGES :--

STAGE ONE :--1.3 MILLION ENTRIES

STAGE TWO :-- FOUR FLAVOURS SHORTLISTED (5 LAKH EACH) FLAVOURS WERE PILOTED FOR TWO MONTHS. THEME: BACHEGA SIRF TASTIEST(SURVIVAL OF

THE TASTIEST).STAGE THREE :--

WinnerMASTANA MANGO (SAGAR DEHRUKAR)(FIFTY LAKH &ONE PERCENT SALES REVENUE)


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FOUR NEW FLAVOURS IN CONTEST (Give UsYour Delicious Flavour Contest (GUYDFC) :--

1) HIP HOP HONEY AND CHILI (Shouvik Mukherjee)2) CHEESY MEXICANA (Mansi Jain)3) MASTANA MANGO (Sagar Dehrukar)

4) TANGY TWIST. (Dr.Shipra Samanta)

LAYS FLAVOUR CUP


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LAYS FLAVOUR CUPKAUN JEETEGA WORLD

CUP(JAN11): AustraliasHerb n Lime South AfricasPeri Peri Sauce

Sri LankasSweet Onion Sauce EnglandsGrilled Cheese West IndiesHot & Sweet Chilli

IndiasMagic Masala


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Amul Butter Bash (http://on.fb.me/amulbutter)

AUnique VotingApp, that engages users to like their

favorite Amul Butter Topical, share it & Invite others towin an autographed coffee table book with their

favorite Topical
http://on.fb.me/amulbutterhttp://on.fb.me/amulbutter


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Amul Butter BashLike To Play The Application


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Amul Butter BashUsers Have To Follow The Instructions


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Amul Butter BashVote For The Topical You Like


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Amul Butter BashUsers Can View The Most Liked Topical


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FUTURE GROUP

PAYBACK is India's largest loyalty programthat brings together leading national andregional brands on a single loyalty platform.

Future Group has taken the whole concept ofcustomer loyalty to the next level by joininghands with PAYBACK

With PAYBACK, customers can shop, saveand get rewarded. This program enablesconsumers to collect millions of points acrossonline and offline partners with just a singlecard. thereby making shopping rewarding.


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Shop More, Talk More and Talk More, Shop

More. Shopping and talking on our mobile phonesare among the two favorite activities for all of usin India.

Free talk-time for every purchase above Rs500 made at Future Group shopping outlets.

For example, a T24 customer buyingproducts worth Rs 2,501 at Pantaloons orE Zone will stand to gain 50 minutes of freetalk-time. Also, a customer spending Rs 1,501in Big Bazaar will gain 90 minutes of free talk-time for every purchase.

T-24


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Tesco - Every Little Helps

Tesco is one of the success stories of the retailingworld and the reason for its success can be attributed in

large part to the CRM initiatives and implementation ofthe learning from these initiatives.


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Comment Cards:

Tesco holds Customer Question Time sessions each year where 12,000 customers participate. This is a forumwhere Tesco can get customer's views on products, price,quality, services. Customer Comment Cards are available

in all the stores.

Qualitative and Quantitative Research Techniques:

Tesco engages in a range of research activities like focusgroups, accompanied shops, home visits, etc. on-linequestionnaires are also used to talk to a larger number ofcustomers.


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Research Trackers:On-going research trackers ask the same key

questions regularly to track performance overtime. In response to the feedback fromcustomers from the various initiatives,

Tesco came up with the Every Little Helpsinitiative: Prices are good I can get what I want

The aisles are clear I dont queue The staff are great


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The Clubcard Scheme

The Clubcard scheme was launched in 1995and now has more than 12 million households in

its database.

Tesco's Clubcard membership allowscustomers to save money on shopping by givingprice-off vouchers.

On accumulating 150 points, these can be

converted to Clubcard vouchers.


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The Clubcard acts as a tool for Tesco for

collecting useful marketing data related to thebuying habits of individual customers. Tescoused this customer data to:

Shape product offerings ,create rangesthereby gain a better understanding ofconsumer segments and shopping profiles

Helped marketing team to build loyalty anddevelop promotion offerings that suit target

groups

d ff i d


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Product Offerings and RangesUsing the data from the Clubcard, Tesco created a

variety of product ranges to suit different target groups:

Healthy Living: The Healthy Living range,originally launched in 1985, now contains over 400

products which are low in fat and sodium. Free From: These products are designed to makelife easier for people with food allergies. Special Healthy Kids Snacks: Kids range of food

products has fibre , wholegrain and five-a-day fruit andvegetables. Organic Product Lines: Tesco has over 1200products in this range.


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Tesco's UK stores are divided into six formats,differentiated by size and the range of products sold.

Designed as learnt from research and data gathered.The flexibility that these different formats provide hashelped Tesco meet :--

A) The changing demands.

B) Keeping with their overall customer-centric policy

STORE FORMATS


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Tesco Extra are larger, out-of-town hypermarketsthat stock nearly all of Tesco's product ranges.

Tesco Superstores are standard largesupermarkets, stocking groceries and a much smallerrange of non-food goods than Extra stores

Tesco Express are neighborhood convenienceshops, stocking mainly food and everyday essentials.


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Tesco Metro Stores are between TescoSuperstores and Tesco Express Stores and aremainly located in city centers, the inner city and on the

high streets of small towns.

One Stop Stores are small food stores.

Homeplus Stores are only non-food ventures.

ZANE CYCLE STORES


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ZANE CYCLE STORES

In the business, where bicycles and accessories arepretty much the same, it's people and policy of companythat make a difference. We know that it's yoursatisfaction with us that keeps us in business. That is

why we, without reservation, guarantee that if for any

reason, at any time, you are not completely satisfiedwith any item you purchased from us, we will gladlyrepair, replace, or refund your money.

At your service,

Chris Zane


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Guaranteed for Life:

Every bicycle purchased from Zane's Cycles comes with our exclusive"Zane's Cycles Lifetime Free Service and Lifetime Parts Warranty."

Anytime your bicycle needs service, a full tune-up or just a quickadjustment, we will make those necessary adjustments for free as

long as you own your bicycle.

90-Day Price Protection :

We guarantee you will never overpay at Zane's Cycles.If you find any item you purchased in stock for less anywhere within90 days, we'll gladly refund you the difference plus 10%


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30 Day Test Ride:

To guarantee you have purchased the correct bicycle, ride it for30 days. If during that time you are not completely satisfied,please return the bicycle for an exchange. We will gladly give youa full credit toward your new selection.

Serious Fun Guaranteed:

Twenty Five years ago we started with the belief, "the only

difference between us and our competition is the service that weoffer." If you don't feel that we are living up to our mission, let usknow and we'll fix it immediately. If you have a concern and

would like to discuss it with me directly, please e-mail me. I will

personally respond to you.


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Really know your customers

Know your customers. Sure, everyone says that. But Zane goes astep further. He captures all the data about his customers from thepoint of sale terminal -- cash registers to most of us. So when he getsa special deal for discounted merchandise from a manufacturer, he

knows just who might be interested.

Treat the customer like a long-term resource. Zane says one

customer came in and wanted to buy a "Trail-a-bike," a device thatwould allow him to connect his daughter's bike to his own. Thecustomer mentioned that he had purchased a $350 bike trailer three

years ago but never used it, because his daughter didn't like riding init.


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Give back to the community--He sells bikes and othermerchandise at his cost to community groups for fund-raisers.For minimal labor costs, Zane gets great publicity.

Zane immediately took back the trailer, giving him credit forthe original price. The profit on the new sale would make up forthe loss on the trailer, which he sold used.

"Because I know my customers, I also know he has threedaughters all under the age of 7. Since the initial trailer

transaction, he has made four purchases.


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Once a year, Zane closes his store and takes employees on aone-day trip. A sign tells customers if they are inconvenienced,

just mention it and they get 10 percent off their next purchase.

"The result: No loss of employees and the greatest increase inmorale and profit we have seen to date." And the customers,happy with the discount, never complain.

Realize that employees make it happen. "I pay them well,thank them a lot ... and, most importantly, let them have fun."


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E-TAILING

DIGITAL CART & DIGITAL WALLET

CASH ON DELIVERY (COD) 60% CUSTOMERS

RFID AND GPS LOGISTICS & TRANSPORTATION(a) Improves the level of customer service(b) Increases customers loyalty(c) Better Inventory Management

(d) Item level tracking

CONSIGNMENT MODEL WAREHOUSE MODEL


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Tablets are Transforming the Retail World

Over the past decade, we have seen digitaland online shopping enter our lives and

become a widely accepted norm.

12 % of Internet users own a tablet today,and that number is expected to increase to 33percent by 2015.

Google's Catalogs app., for example,

provides a rich, interactive shoppingexperience by aggregating the catalogs ofmajor brands into one app, where you canexplore product views, videos, details,

pricing, and more.


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South Korean supermarket, Tesco, created a virtual grocery

store in a subway station by using product images and QR codes.

Many retailers in the U.S. for instance, have launched whatthey call mobile shopping walls. The walls feature a selection ofthe brand's most popular toys (QR codes and all) and can be

found at airports, malls, and bus stations across the nation.

CONCLUSION


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CONCLUSION


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