comparative analysis of - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/28772/10/10_chapter...

CHAPTER – V

ANALYSIS OF RETAILER SURVEY RESULTS

5.1 Retail Market in India and Purpose of the Study

The Indian retail market (US$ 413 billion) entails only 6 per cent of itself as organized

retail segment as of 2010, according to Booz and Co. (India) Pvt. Ltd. Food and groceries

is the largest segment in organized retail, followed by apparel, footwear and consumer

electronics. The BMI India Retail Report for the fourth-quarter of 2011 forecasts that the

total retail sales will grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by

2015. The report has underlined factors like economic growth, population expansion,

increasing wealth of individuals and rapid construction of organized retail infrastructure

as major drivers for the optimistic forecast figures71

.

India has been ranked as the fourth most attractive nation for retail investment among 30

emerging markets by the US-based global management consulting firm, A T Kearney, in

its Global Retail Development Index (GRDI) 2011.

AT Kearney has also conducted a different study which says that organized retailers

should follow hypermarket concept to penetrate through India’s US$ 435 billion industry.

According to the report, given the gigantic size of the Indian retail market, it is no

surprise that many Middle East retailers, most recently Lulu, have announced their

interests to extend their retail operations to India.

Cumulative foreign direct investment (FDI) inflows in single-brand retail trading during

April 2000 to April 2011 stood at US$ 66.69 million, according to the Department of

Industrial Policy and Promotion (DIPP).

Jubilant FoodWorks Ltd, which operates fast food chain of Dominos Pizza in India, will

invest over (INR 70 crore) (US$ 15.47 million) in the FY12 on new stores and

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http://www.ibef.org/india/economy/consumermarket.aspx

commissaries. Reliance Industries’ Reliance Retail (that runs supermarket and

hypermarket chains) is planning massive expansion across the country by doubling the

number of stores in several specialty formats in 2011.

The brand ‘More’, operated by Aditya Birla Retail, will open 12 hypermarkets and 150

supermarkets in fiscal 2012. After the expansion, its supermarket stores tally will reach

715. Shoppers Stop Ltd, which has 43 departmental stores and 10 hypermarkets under the

brand Hyper city, plans to open four more hypermarkets and 10 departmental stores in

2011.

According to a report by research firm CB Richard Ellis India, over 6 million square feet

of retail mall space was added across India in the first six months of 2011; primarily due

to aggressive expansion by organized retailers.

Indian consumer purchasing is largely through the unorganized sector or through the

kirana stores. Organized retail constitutes a small percentage of the Indian retail market.

However, with urbanization and increasing value-consciousness among consumers, the

organized retail format is beginning to take root. The organized retail format promises

consumers better quality and better shelf-life for products due to their excellent storage

facilities and anti-tampering checks. An important factor attracting consumers towards

formal retailing mechanisms such as hypermarkets and departmental stores is the

shopping experience. These shopping outlets allow consumers to explore their choices to

touch and feel products in the comfort of a stylish and healthy environment, something a

kirana stores cannot offer.

Retail72

consists of the sale of physical goods or merchandise from a fixed location, such

as a department store, boutique or kiosk, or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys

goods or products in large quantities from manufacturers or importers, either directly or

through a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. The term "retailer" is also applied where a service provider

services the needs of a large number of individuals, such as a public utility, like electric

power.Types of Retail formats in India can be understood from the broad category given

below :

Kirana Stores: These are generally family-owned businesses catering to small sections

of society. They are small, individually run and handled retail outlets.

Departmental Stores: These are the general merchandise retailers offering various kinds

of quality products and services. It is a self service store consisting mainly of grocery and

limited products on non food items.

Hypermarkets /Supermarkets: The supermarkets can be anywhere between 20,000 and

40,000 square feet (3,700 m2). Example: SPAR supermarket. These are generally large

self-service outlets, offering a variety of categories with deep assortments. They provide

variety and huge volumes of exclusive merchandise at low margins. The operating cost is

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http://en.wikipedia.org/wiki/Retail accessed on 5th August 2011

http://en.wikipedia.org/wiki/Retail

comparatively less than other retail formats. These stores contribute 30 per cent of all

food and grocery organized retail sales. Example: Big Bazaar

Malls: These are the largest form of retail formats. They provide an ideal shopping

experience by providing a mix of all kinds of products and services, food and

entertainment under one roof. Examples are GVK Mall in Hyderabad, CMR Central Mall

in Visakhapatnam.

Specialty Stores: The retail chains, which deal in specific categories and provide deep

assortment in them are specialty stores. Examples are RPG's Music World, Crossword,

etc.,

Retail pricing - The pricing technique used by most retailers is cost-plus pricing. This

involves adding a markup amount (or percentage) to the retailer's cost. Another common

technique is suggested retail pricing. This simply involves charging the amount suggested

by the manufacturer and usually printed on the product by the manufacturer.

The study attempts to explore the various responses given on selected environmental

aspects that need to be addressed by the Government and its stake holders including

companies, retailers, customers etc., for making holistic green marketing strategies. A

place like Andhra Pradesh is chosen as it is one of the worst polluting States of India. The

two cities are again specifically chosen as Hyderabad is a commercial capital of Andhra

Pradesh. And Visakhapatnam is a city that has already has major heavy industries like

Steel Plant, Naval Dockyard etc., and is a place to potential city for higher industrial

growth in future.

5.2. Results and Analysis According to Retail Formats

Figure - 5.1 Classification of retailer formats City wise.

The Respondents’ retailer formats are divided into the following formats: The kirana,

departmental, super and hyper formats. These formats have been considered with the

distribution where 73 per cent are from kirana stores, 15 per cent are from departmental

stores, 10 per cent are from super market and 2 per cent are from hypermarkets.

Figure - 5.2 Frequency of trade with companies (and their suppliers) that claim to

make eco-friendly products.

Analysis of the survey results: Responses from 82 per cent retailers in Hyderabad

indicate they trade ‘often’ to ‘very often’ with supplier of companies that claim to make

eco-friendly product. Again responses from 12 per cent of retailers from Hyderabad

indicate ‘Always’ for the same. In Visakhapatnam, 60 per cent responses indicate they

trade ‘often’ to ‘very often’ with such companies. As much as 36 per cent responses

indicate they ‘rarely’ do so in Visakhapatnam.

Inference of the Analysis: It is observed that retailers form Hyderabad trade more often

with companies that claim to be making eco-friendly products. Such possibility of retailer

responses so from Hyderabad is attributed to ‘commercial prominence’ and position the

city has when compared to Visakhapatnam. The research is in consumer markets and

Visakhapatnam is a city that has major heavy industries, unlike Hyderabad that has heavy

industries, traders and manufacturers pertaining to consumer markets.

Figure 5.3 - Rating of a customer who insists on an environment friendly.

Analysis of the survey results: Similarity in responses is observed from Visakhapatnam

and Hyderabad respondents in rating ‘very good’ about a customer who insists on eco-

friendly products at 66 per cent. Overall, 32 per cent felt ‘good’ about the customers

from Hyderabad while 26 per cent from Visakhapatnam felt so.

Inference of the Analysis: From the responses of the organized and the unorganized

retailers, it is observed that there is high positive response rate at 98 per cent and 92 per

cent in Hyderabad and Visakhapatnam respectively about customers who insist on eco-

friendly products. The indication that retailers are aware about the change in the customer

preferences is a positive indication for the companies to make pro-environmental

strategies. Consideration on trade commissions and credit sale for retailers can be

possible devising strategies.

Figure - 5.4 Average percentage of customers who insist on eco-friendly products

in a day.

Analysis of the survey results:

It is found that retailers indicate a range between 0 – 30 per cent of customers insisting on

eco-friendly products per day in Hyderabad at 38 per cent. And it is 18 per cent from

retailers at Visakhapatnam. However, there are 64 per cent between 31 – 50 per cent from

Visakhapatnam and 52 per cent from Hyderabad. Customers, who insisted on eco-

friendly products up to 50 per cent, are 18 per cent from Visakhapatnam and 10 per cent

from Hyderabad.

Inference of the Analysis: Companies planning for eco-friendly product freebies and

exclusive shelves can be confidant about potentiality of customer buying from

Visakhapatnam. Though Visakhapatnam is a hub for heavy industries, it is observed that

even for consumer good companies, the place is a matured city to gain acceptance for

eco-friendly products almost at par with Hyderabad.

Figure - 5.5 Preference towards eco-friendly products - Male Customers.

Analysis of the survey results: There are 66 per cent responses that indicate male

‘mostly prefer’ eco-friendly products from Visakhapatnam and 62 per cent from

Hyderabad. Male customers have a high similarly in their preferences in both the cities.

Responses that indicate ‘rarely prefer’ option at 20 per cent of the overall responses

indicate matured customers visiting the store.

Inference of the Analysis: Male customers have considerable say in decision making in

the Indian households. Thanks to matriarchic roots of the culture. But they are to some

extent and to a large extent dependent on the female counter parts in the urban house

holds. Moreover, as parents the new generation of males in the role of a father does not

want to dominate their child as they were by their parents. Parents are shifting from a

hierarchical system to one that has more participation and mutual respect within the

members from old to young in the household. Companies have to observe these facts for

their plans.

Figure - 5.6 Preference towards eco-friendly products - Female Customers

Analysis of the survey results: Comparatively women customers of Visakhapatnam

favor companies claiming to make eco-friendly products. According to the retailers

women customers in Visakhapatnam are 52 per cent for this and 48 per cent against.

While Visakhapatnam Men customers are 74 per cent for this and 26 per cent against.

Hyderabad women customers are 48 per cent for and 52 per cent against, and the male

customers are 72 per cent for and 28 per cent against.

Inference of the Analysis: Variations within the men and women customer preferences

are almost similar in Visakhapatnam and Hyderabad for purchasing eco-friendly

products. Companies can target men customers who are more open to buy eco-friendly

products against women customers in both the cities. Companies may note that common

promotional strategies for both geographical locations can be made targeting men and

women, given the similarity in preferences. However, strategies to change Desire into

Action from the (AIDA principle) in women customers has to be devised.

Figure - 5.7 Inducing a consumer to buy a product in lines of eco-friendly aspects

Analysis of the survey results: The study finds favorable responses to this point in

Hyderabad better than in Visakhapatnam. Responses from Visakhapatnam indicate that

16 per cent ‘disagree a little’ as against 6 per cent from Hyderabad. 88 per cent from

Hyderabad report they agree ‘Little’ to ‘very strongly’ to this. To the same response rate

is 78 per cent from Visakhapatnam respondents.

Inference of the Analysis: It is observed that overall the responses from Hyderabad

retailers are more favorable about inducing a consumer to buy a product on eco-friendly

aspects. However, the fact that Visakhapatnam retailers show almost equal response

cannot be ignored. A time to strategize an integrated approach in educating and

sensitizing the customers is a possibility that can be contemplated by companies well

before launching and shelving eco-friendly products in the retail places.

Figure - 5.8 Measures suggested for companies to improve promotion of eco

friendly products.

a. Increase Credit sales on such products between channel members i.e., among

(Manufactures wholesaler retailer)

b. To elaborately explain the dangers of using products whose ingredients are

harmful to the environment.

c. To elaborately explain the dangers of using products those have

environmentally harmful packing material.

d. To promote about the environmental issues in general to the public

specifically showing the advantages of using eco friendly products.


The study finds that there is a variation in the responses given by Hyderabad and

Visakhapatnam retailers about their suggestions to companies about viable strategies to

promote eco-friendly products. While ABCD is preferred highest from Hyderabad

respondents at 32 per cent and AB at another 32 per cent, they prefer ACD as the second

highest as 28 per cent. Visakhapatnam has responses with ACD as their highest

preference at 24 per cent, ABC at 20 per cent and AB at 12 per cent as third highest.

Other options being less than 10 per cent do not hold any significance for inferences.

Hyderabad retailers prefer ABCD, AB and ACD in order of preference and higher

percentage. Responses from Visakhapatnam prefer ACD, ABC and AB in order. Option

D is observed to be repeated in Hyderabad responses while in Visakhapatnam the option

C is repeated apart from A is being the highest preferred option by both the cities.

A. Hyderabad: A and D are mostly seen, that is Increase credit sales on such products

between channel members.

B. To elaborately explain the dangers of using products those have environmentally

harmful packing material.

D. To promote about the environmental issues in general to the public specifically

showing the advantages of using eco friendly products.

Inference of the Analysis: Answer supports other data that the awareness of

environmental issues in Hyderabad customers has to be improved. Retailers can prove to

be a potential hope to do this pivotal task as they are the personal connections between

the customers and the promoting companies of products.

The general awareness has to be overall increased in sensitizing on eco-friendly issues in

Hyderabad more compared to Visakhapatnam according to these responses overall.

Figure - 5.9 Marketing communication suggested to increase the sale of Eco-

Friendly products.


From the study it is indicated that awareness about eco-friendly aspects is less in

Hyderabad compared to Visakhapatnam. The third option given here about creating

shelves for eco-friendly products is not preferred at all by any of the retailer in

Hyderabad. There is 26 per cent indication from Visakhapatnam retailers for this option.

Hyderabad respondents opted for distribution of pamphlets in order to increase the sale of

eco-friendly products at 56 per cent.

Alternatively, 32 per cent Hyderabad responses chose advertising in local news papers as

against 42 per cent from who chose the same from Visakhapatnam. Retailers of

Hyderabad seem skeptical of the costs incurred for promotional activities given the

limited awareness among the customers and retailers about eco-friendly products.

Inference of the Analysis: There is a disparity in the views expressed by the retailers

from Visakhapatnam and Hyderabad about the promotion of eco friendly products. The

Hyderabad retailers are not going out of the conventional methods of advertising like

advertising in local news paper. Again distributing pamphlets is another option from

them where as one fourth of Visakhapatnam retailers from the study indicated that

shelves have to be created for the eco-friendly products as a point of purchase promotion

activity.

Companies need to devise plans to tap the retailers in Hyderabad in two phases. Phase I:

To address the awareness issues of environmental concerns and products to retailers and

channel partners. Phase II: An IMC (Integrated Marketing Communication) approach

within the promotional budget to be considered in order to target specific groups within

the society to buy eco-friendly products. Eco-friendly purchases are a high possibility

from the educated and urban customer with certain considerable income level. Without

the gender discrimination (given the variations in behavior of genders about eco-friendly

purchases) companies can devise strategies to reach the specific audience as discussed

above through advertisements (reach and recall advertisements).

Figure - 5.10 Frequency of promoting sale of Eco-Friendly products


From the study it is observed that 70 per cent Visakhapatnam retailers indicate promoting

eco-friendly products ‘often’ while 34 per cent from Hyderabad responded so. Compared

to Hyderabad retailers who indicate they ‘rarely’ promote at 34 per cent, Visakhapatnam

responses are at 14 per cent in this aspect.

Inference of the Analysis:

Companies promoting eco-friendly products are to note that despite lesser awareness

levels in Hyderabad, higher proportion of the retailers ‘rarely prefer’ frequency in

promotions. The variation in the retailer attitudes about promoting the eco-friendly

products between the cities is to be critically observed for making strategic moves or

deciding trade margins to the retailers about trading eco-friendly among the channels of

distribution.

Figure - 5.11 Retailer influence on a consumer to buy products at higher prices

on Eco-friendly attributes.

Analysis of the survey results: There is a similarity observed among the responses

(between the cities) about ‘supporting wisdom in buying eco-friendly products’ so as to

convince and influence a customer in paying a higher price for eco-friendly products. The

retailer’s second preference is to ‘appraise the social responsibility of companies that are

making eco-friendly products’, with 31.2 per cent from Visakhapatnam and 19.1 per cent

from Hyderabad. To ‘show them the benefits of using eco-friendly products’ is given by

19.1 per cent retailers from Hyderabad as against 4.2 from Visakhapatnam.


A variation in retailer planning between the cities about influencing the customers is

attributed to variables like the awareness levels among customers about eco-friendly

products in the city, the spending capacity of customers and extra percentage of spending

for eco-friendly products according to the city.

Figure - 5.12 Attitudinal change needed in consumers to insist on eco-friendly

products.


It is observed that 28 per cent retailers from Hyderabad indicate attitudinal change

requirement in the consumers to be between 60 – 75 per cent. Retailer responses from

Visakhapatnam are 54 per cent for the same. The rate is however 18 per cent higher in the

case of Hyderabad responses that indicated the need for change to be between 46-60 per

cent compared to Visakhapatnam responses.


Though the results from the survey show that awareness levels between the cities is

different, there is in-coherence in attitudes maintained by the retailers. Companies

planning to make their strategies need to examine this and ignore certain inconsistencies

found in the retailer responses while devising the marketing mix strategies.

Figure - 5.13 Government involvement on taking responsibility of promoting make

of eco friendly products among companies.

Analysis of the survey results: The retailer responses that there is ‘little involvement

level’ from the Government in taking up responsibility to promote the make of eco-

friendly products in companies is similar in both cities. 46.6 per cent of the overall

responses indicate ‘little involvement’ from the Government. Again ‘involvement to a

great extent’ is marked by 28.6 per cent of retailers from Visakhapatnam and 21.1 per

cent from Hyderabad.

Inference of the Analysis: Companies and the Government need to take cues that 40 per

cent and more of the overall retailer responses indicate that a lot more has to be initiated

from the Government apart from what is being done. Government activity to support

anticipations to allocate subsidies, collaborate for technologies and show bigger

incentives for lower emissions apart from creating awareness among the customers can

be pursued to support the holistic Green Marketing process. More points in Chapter VII.

5.3 RETAILER CROSS TABLES OF HYDERABAD AND VISAKHAPATNAM –

INTERPRETATION

Figure - 5.14 Frequency of trade with a company who claims to make

eco-friendly product – Kirana stores

Analysis and inference of the survey results: Out of all the formats the kirana stores at

Hyderabad trade ‘very often’ compared to the kirana formats at Visakhapatnam.

Hyderabad kirana formats trade at 65.8 per cent, Visakhapatnam formats at 8.6 per cent.

Visakhapatnam kirana stores, 54.3 per cent however indicated they trade ‘often’ with the

companies that claim to make eco-friendly ones. This shows that between the cities,

Visakhapatnam is less active with kirana formats dealing less with the companies that

claim to be making eco-friendly products.

Inference of the Analysis: From the previous results, it is observed that Hyderabad

retailers trade more frequently with companies that claim to make eco-friendly products

compared to Visakhapatnam retailers. The same result is verified format wise and choice

wise specifically here.

Figure - 5.15 Frequency of trade with a company’s (supplier) who claims to make

eco-friendly product – Departmental Stores wise

Analysis of the survey results: The Departmental formats, 50 per cent from

Visakhapatnam indicate they ‘rarely’ trade with suppliers of companies that claim to

make eco-friendly products and 20 per cent from Hyderabad do so. ‘Often’ and ‘very

often’ are opted by 40 per cent departmental stores in the Hyderabad. This is higher than

Visakhapatnam retailers who indicate the same attributes at 30 and 20 per cent

respectively.

Inference of the Analysis: Retailers from Hyderabad departmental formats also indicate

higher percentages of trade with suppliers who claim to be making eco-friendly products

as against Visakhapatnam Departmental formats. Here, the companies can observe

kirana and departmental formats from Hyderabad have similar responses about their trade

with existing company suppliers that claim to make eco-friendly products.

Figure - 5.16 Frequency of trade with a company who claims to make eco-friendly

product – Super Market stores

Analysis and inference of the survey results:

Super market formats in Hyderabad show 40 per cent trading with eco-friendly company

claimants ‘always’ and ‘very often’ respectively as against the Visakhapatnam with

‘always’ and ‘very often’ at 20 and 40 per cent respectively. The super markets

between Hyderabad and Visakhapatnam that are interested in trading with eco-friendly

company claimants have variation in their responses.


It is inferred that super markets from Visakhapatnam when compared to the other retail

formats, kirana and departmental trade less with eco-friendly companies. Thought it is a

slight variation, the point has to be noted by the companies for their strategies.

Figure - 5.17 Buying Preferences towards eco-friendly products – Males according

to Kirana stores

Analysis of the survey results: Highest preference among males is observed from

Hyderabad retailers that indicate 63 per cent overall ‘mostly prefer’ eco-friendly

products. 24.7 per cent indicate male customers ‘rarely prefer’ option. Similarity is

observed among male customers who prefer eco-friendly products as per kirana formats

in both the cities.

Inference of the Analysis: Though the responses indicate there is an overall similarity

in the preferences between both the cities, it is observed that there Hyderabad retailer

responses indicate male customers have high preference as against Visakhapatnam

Kirana responses.

Figure - 5.18: Buying Preferences towards eco-friendly products – Females

according to Kirana stores.

Analysis of the survey results: It is observed that preferences for eco-friendly products

as per kirana retailers’ about women customers from Visakhapatnam who ‘mostly prefer’

are 48.6 per cent. The same is 36.8 per cent from Hyderabad. ‘Rarely prefer’ option

given by Hyderabad retailers is observed to be higher among the women customers as

compared to Visakhapatnam.

Inference of the Analysis: It can be inferred that there is a variation between the male

and female customer preferences towards eco-friendly products in kirana formats at

Visakhapatnam and Hyderabad. Companies can identify a slightly lesser preference from

Hyderabad female customers compared to Visakhapatnam and have to sensitize them

towards eco-friendly products.

Figure - 5.19 Buying Preferences towards eco-friendly products – Males according

to Departmental stores


It is observed from the Visakhapatnam Departmental stores that preference among the

male customers for eco-friendly products compared to Hyderabad customers is higher

with 70 per cent of them ‘mostly preferring’ them. Hyderabad males indicate they

‘mostly prefer’ at 40 per cent.


It can be inferred that the responses from retailers from Visakhapatnam and Hyderabad

show a variation in the responses of departmental formats responses about preferences of

male customers. The companies can sell their products through the departmental formats

targeting men customers in Visakhapatnam more surely compared to Hyderabad.


according to Departmental stores

Analysis of the survey results: There is variation among the female customer

preferences in Hyderabad Departmental stores, against that of Visakhapatnam. Females

from Hyderabad ‘mostly prefer’ eco-friendly products at 60 per cent level compared to

their counterparts at Visakhapatnam who prefer at 30 per cent.

Inference of the Analysis: Companies need to note that the buying preferences of

females in Visakhapatnam in departmental formats are the same in options like ‘always’,

‘mostly prefer’ and ‘not particular’ with 30 per cent in each. Departmental stores in

Hyderabad however indicate a higher preference with ‘mostly prefer’ option. Companies

need to take note of this while sensitizing the female customers about eco-friendly

products format wise.

Figure - 5.21: Buying Preferences towards eco-friendly products – Males according

to Super Markets


As per the data taken from the formats, male customer preferences are higher in the Super

markets from Visakhapatnam at 80 per cent with ‘mostly preferring’ eco-friendly

products. Hyderabad male customers prefer 60 per cent eco-friendly products compared

to Visakhapatnam. It is also observed that the male customers ‘always prefer’ eco-

friendly products in both the cities. Again ‘not particular’ is an option that is given by

Hyderabad respondents alone.

Inference of the Analysis: It is observed from the analysis that super market formats

have specific target customers walking in it unlike the departmental and kirana formats.

Though persons with different demographic profiles come to the store, it is to be

investigated as to which customer finally purchases the eco-friendly products among the

males.


according to Super Markets

Analysis of the survey results: Women customers who visit the Super Markets ‘mostly

prefer’ eco-friendly products at 60 per cent in Visakhapatnam and 40 per cent in

Hyderabad. Moreover, those who ‘rarely prefer’ are 60 per cent in Hyderabad compared

to 20 per cent in Visakhapatnam.

Inference of the Analysis: Women who prefer to buy eco-friendly products from Super

Markets in Visakhapatnam are higher compared to those from Hyderabad super markets.

It is observed from the analysis that super market formats have specific target customers

walking into the store unlike the departmental and kirana formats. Though persons with

different demographic profiles visit the store, it is to be investigated as to which customer

finally purchases the eco-friendly products among the females.

Figure - 5.23: Measures suggested to companies for improving promotion of eco

friendly products – Departmental Stores

Analysis of the survey results: From the above scales we find that Departmental stores

from Visakhapatnam are indicating up to 40 per cent, AB options and 20 per cent each of

the others - ABCD, ABD and ACD respectively. In the case of Hyderabad, departmental

stores have opted 20 per cent of AB, AC and ABC are the three preferred options. There

is a similarity in preferring AB of the options between Visakhapatnam and Hyderabad

departmental stores.

Inference of the Analysis: Option A indicates to increase credit sales on such products

between channel members and option B indicates to elaborately explain the dangers of

using products whose ingredients are harmful to the environment. Retailers from both the

cities have predominantly opted two options among others for promoting the sale of eco-

friendly products. Visakhapatnam departmental stores have suggested the same twice.

Figure - 5.24: Measures Suggested companies for improving promotion of eco

friendly products – Super Market

A. Increase Credit sales on such products between channel members i.e., among

(Manufactures wholesaler retailer)

B. To elaborately explain the dangers of using products whose ingredients are harmful

to the environment.

C. To elaborately explain the dangers of using products those have environmentally

harmful packing material.

D. To promote about the environmental issues in general to the public specifically

showing the advantages of using eco friendly products.


Super Markets from Visakhapatnam indicated options ACD at 40 per cent, this is the

highest rated option compared to all others between the two cities. Retailers in Hyderabad

suggested an equal preference at 20 per cent for options like ACD, ABC, ACB, CD and

only B. There is some amount of dissimilarity as far as these options are concerned.


Option A indicates to increase credit sales on such products between channel members

and option B indicates to elaborately explain the dangers of using products whose

ingredients are harmful to the environment. Retailers from both the cities have opted

predominantly above two options among others to promote the sale of eco-friendly

products.

Figure - 5.25: Marketing communication to increase the sale of Eco-Friendly

products – Super Markets

a. distributing pamphlets

b. advertising in local papers

c. creating specific shelves to Eco-Friendly products

d. others


It is observed that there is variation in responses of retailers in Hyderabad and

Visakhapatnam super markets about the preferences in marketing communication

suggested to increase the sale of eco-friendly products. Results show that 60 per cent of

Visakhapatnam super market retailers opted to ‘creating specific shelves to eco-friendly

products’. Retailers from Hyderabad up to 80 per cent suggested ‘advertise in the local

news-papers’.

Inference of the Analysis: Skepticism by Hyderabad retailers for not opting creating

specific shelves shows that they are not still prepared for a matured customer.


products – Kirana stores




d. others

Analysis of the survey results: Kirana stores, 47.9 per cent suggest ‘distribution of

pamphlets’ over 41.1 per cent who prefer ‘advertising in local papers’. Between

Visakhapatnam kirana and Hyderabad, the difference is that the former support

advertising unlike the super market formats where reverse between the cities is observed.

Moreover the answers are found dissimilar between the cities.

Inference of the Analysis: Hyderabad kirana format prefer ‘distribution of pamphlets’,

this can be attributed to the cost risk involved in the alternative advertising option.

However, ‘creating shelves’ is not selected by any kirana respondent from Hyderabad.


products – Departmental Stores




d. others

Analysis of the survey results: The departmental stores indicate a similarity in their

responses as 53.3 per cent prefer advertising in local papers compared to 33.3 per cent

who prefer distributing pamphlets. Again it is observed that Visakhapatnam retailers

indicate creating specific shelves for eco-friendly products in the retail store as a point of

purchase promotional activity. There is a similarity in the answers form the departmental

stores from both the cities.

Inference of the Analysis: It has to be investigated reason about no formats did not

prefer the option of ‘creating specific shelves’ in Hyderabad city given the higher paying

power of customers and it being a metro.

Figure - 5.28: Influencing a consumer to buy Eco-friendly products for higher prices

– Kirana Stores

a. Show them the benefits of using eco-friendly products:

b. Support wisdom in taking eco-friendly products

c. Appraise the social responsibility of companies that are making eco-friendly

products

d. Others


Kirana formats of both the cities gave similar answers at 55.9 per cent about ‘supporting

wisdom in taking eco-friendly products’. The next preference overall has been to

‘appraising the social responsibility of companies that are making eco-friendly products’

at 30.9 per cent and the last option at 13.2 per cent for showing the customers the

‘benefits of using eco-friendly products’.


Though only slight variations between the cities is observed in responses, companies can

make plans to substantiate the first preference given by the retailers ‘supporting wisdom

in buying eco-friendly products’ and the second preference of ‘appraising companies

about their social responsibilities for eco-friendly products’. An important cue is that the

retailers are looking up to companies that genuinely mean their claims of an eco-friendly

product and secondly for information to be disclosed by the company that is convincing

enough to the customer about the sale of the product. The role of companies is paramount

in this connection. This is discussed subsequently in Chapter VII.

comparative analysis of - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/28772/10/10_chapter...

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