group 3 r nd f
TRANSCRIPT
8/13/2019 Group 3 r nd f
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Shiny Provision Store:
Retail ing Challenges I n the I ndian Context
By Group 3 :
• Gautam Hariharan –
12P137• Mohit Ambwani – 12P152
• Nikhil Rana – 12P153
• Prabhat Singh – 12P154
• Pratik Nagori – 12P155
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History and Growth of Retail• Traced past to Indus Valley Civilization
• Fairs : Periodically Conducted market places
• Shandies : Weekly Markets
• Village Shopkeepers: Merchants going out of village for trade
• Public Distribution Shops : Govt. run chains
Year No . of Shops (millions)
1950 0.25
1978 2.335
1997 5.13
2005 12.77
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Unorganized retail ing:
a) Operated by a single owner
b) Lacks technical standards
c) Lacks Accounting standards
Organized retail ing:
a) Transparency in accounting
b) Organized SCM
c) Centralized quality control
d) Centralized sourcing
e) Not a standalone shop
Organized vs Unorganized
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Kirana Stores
•
“Mom and Pop” of the west • Owner and family members manning the store
• Small floor footage - Ranges from 25 to 400 sq.ft
• Unorganized retail format
•
Trades in branded as well as unbranded products• Low – Priced SKUs
• Largest source of self employment in India
• Next door convenience store
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Types of Modern retailing formats Supermarkets:
a) Includes food and household
productse.g.: Food World, More & Ni lgir is
Departmental Stores:
a) Includes life style driven products
e.g.: L ifestyle, Shoppers Stop, Westside, etc.
Factory Outlets:
a) Present in Urban areas
b) Out of Vogue products sold at discount rates
e.g.: L ouis Phi li ppe in apparel, Nike in footwear, etc.
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Hypermarkets:
a) Large volume driven discount based stores
e.g.: Reliance Fresh, Big Bazar
Special ized Ki l ler stores:
a) Extensive range of products under a single category
e.g.: Croma, Vivek & Co.
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Reliance Fresh Outlet• Located in BTM, Bangalore
• Store area 3000-3500 Sq. ft..
• Deals in branded products
• Attractive
Shiny Provision Stores• Kirana Store located in BTM layout
• Store area was 600-1000 Sq. ft.
• 11 of the 38 Kirana store in vicinity• Trades in SKUs, vegetable, fruits and groceries
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4P’s of Marketing: Kirana Vs MROPRODUCT
MODERN RETAIL
OUTLETS
KI RANA STORES
• Variety in each category • Product SKU’s are
limited
• Expensive as well as low
end items
• Cheaper and daily use
items
• More attraction of
branded products
• Unbranded products
PLACE
MODERN RETAI LOUTLETS
KI RANA STORES
• Located in densely
populated area
• Located on busy
cross-roads
• Area: 3000-3500 sq.
ft.
• Area: 600-1000 sq. ft.
PRICE
MODERN RETAIL
OUTLETS
KI RANA STORES
• Synergy due to
bulk purchasing
• Variable
depending on type
of consumer
• Central
warehousing and
transportation
• No proper SCM
in place
PROMOTION
MODERN RETAIL
OUTLETS
KI RANA STORES
• Promotion in
regional and national
level
• Promotion is a rare
event
• Loyalty Card Scheme • Bargains with
regular customers
•
No such Provision•
Provide free homedelivery
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Impact of modern retailing on kirana
customers
• Reliance store outscored Shiny on Aesthetic Image
• Atmosphere
• Attractive layout
• Advertising
• Well placed product
• Spacing
• More variety of products attracts more customer at Reliance
• Better service causes surge in the number of customer
• High earning customers preferred Reliance over Kirana
•
Lack of branded product at kirana causes customer to switch toReliance
• Changing shopping pattern i.e. working class preferring bulkshopping on weekends at the Reliance where they find otherrefreshing activities and offers
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Differently perceived dimensions of the
modern outlet
• Low Income
• Attractive layout
• Good Display all over
•
Attractive and informativedisplay
• Price of the product
• Return of purchases
•Helpful sales, clerical staff
• Medium/High Income
– Quality
– Checkout delay
– Dressing of store staff
– Store atmosphere
– Product placing
– One stop facility
– Exclusive productassortments
– Brands
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Total expenditure = No. of households x Avg. monthly expenditure
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Expenditure Pattern
• One third population belong to <10000 INR Income class
•
People from all Income classes were spending more atReliance
• Reliance was preferred destination for purchasing branded
goods
• Average % monthly spending at Reliance was more for lower
income group
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Image Perception
• Reliance had pleasant atmosphere, layout
• Hygiene factor
• Reliance customer can touch and feel the product
• Brand image for the Reliance was marginally below that of
Shiny
• Service of Reliance perceived better than Shiny
• Scores of Personnel for Reliance was better than Shiny.
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Limitation of research
• Study is conducted in Bangalore only.
• Income of customers have been taken as primary
consideration.• Only Reliance from modern retail outlet and Shiny from the
Kirana stores have been taken into consideration.
• Sample size was limited to 50 customers of both the stores.
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Conclusion
• Reliance outscored Shiny on most of the study
• Reliance made customer spend more for their services,
appearance, product range
• Reliance attracted high Income group customers
• Reliance customers perceived shopping as an important
activity
• Reliance customer were more loyal, since they had lesser
options than Shiny customers having around 11 options
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Recommendation for Shiny (Kirana)
• Increase Brand visibility and Promotion
• Improve service
• Introduce Touch and feel effect to a product
• Improve Infrastructure and layout• Increase variety of products
• Collaboration with other similar retailers
• Attractive and Informative display of product and shop
• Introduction of some offers on sales.