WELCOME

Guide by Mrs : T . Ponnarasi

: Asst. prof.-Agricultural Economic

Presented by Mr.Malcomestar L. Mawnai

1st year M.B.A ( Agri-Business)

Roll. No-B1302

Retail mean “ to cut the piece off or to break bulk” comes from French word.

One of the old method of marketing.

Activities to market a products

Start of India retail reforms during the 1997’s

Retailing “ is define as a market activities where a large quantity of products are bought from whole seller or directly from manufacturer and selling the goods/services to consumer for personal consumption”.

Consumer behaviour “ the dynamic interaction of effect and cognition , behaviour and environment into which human beings conduct in exchange of goods”

To perceive the level of satisfaction on consumers.

Behaviour towards organized( supermarkets, malls , hypermarkets ,stores )

Impact of consumers behaviours on retail market .

Advantages and disadvantages of retail market.

Future strategies of retail marketing in India.

Challenges on retail marketing.

Comes from old French word ( tailler)

Terms of tailoring start in 1365

Recorded as a noun with the meaning of a (sale in small quantities) in 1433

The term retail in both Dutch and German also refers to sale in small quantities of items.

In India its start comes into sense from the year of 1997 onward.

Retail market exist before the biblical centuries.

Sparked intense activism both support and opposition group.

Happens in November 2011

Massive losses of job

Controversy allowing foreign Retailers

- E.g. Wal-Mart employs very few people in US. And allowed to expand there business in India.

Enter of political backlash

BJP threated,(Set a fire on Wal-Mart store whenever is opens by Banded are introduced)in 1 December 2011.

Lots of controversy happens in each and every state in the retail reforms

Against on 2 December 2011 the government force to re-think on the retail reform.

On 3rd December 2011

Overwhelming majority of famers and consumers support in and around the cities support retail reform.

78% of the famers supported

Support by the famers group such as Bharat Krishak samaj , Indian farmers association ,etc.

Also support came from the Economist and Entrepreneurs

Organized Retailing

- undertaking by licensed retailer, such as those who are registered for incomes tax,sales tax , etc.

* divided into 1. Single brand ( Nike , Addidas, )

2. Multi brand (Wal-Mart, Reliance, Hindustan,)

-Eg. Supermarket,stores,etc

Unorganized Retailing

-refers to traditional formats of low cost retailing.

Eg. Local kirana shop, pan shops , etc.

Food products- typically required cold storage

Hard goods or durable goods- electronics ,appliances ,furniture , sporting goods , etc.

Soft goods/ Consumables- clothing's ,apparel ,fabrics , etc.

Convenience – frequent purchase, low involvement.

Shopping – comparisons are made. Medium involvement

Specialty – High involvement

Food products – susceptible to peer and reference group influence. High involvement.

CLASSIFIED INTO TWO

1. Growth over 1997-2010

-allowed foreign direct investment (1997)

- required government approval

- attracted over $1.8 billion in 2000-2001

-attracted of single brand over 94 proposal in

2006-2010

-until 2010, there are 60+ margins for middle man and traditional retail shops.

2. Growth after 2011

-before 2010 ,India prevented innovation and organized competition on retailing.

- suffer a malnutrition of food waste in retail

- 30% wastage for foods and perishable goods in agriculture

- In 2011, generate sales about $450 billion in year.

-25% market share expected by 2020

- $440 billion by 2020

- food retail accommodate 70%

Revolution in Indian consumer behaviour

Higher buying power

lifestyle

Power seeking variety of quality and price

Increase indulgence in entertainment and products

Brand consciousness

Technology Savvy

Convenience seeker

Increases competition

Future group

Mahindra group

Reliance industry

Aditya Birla group

Bharati Enterprises

Fabindia -fabric, textiles, handloom, jewellery.

The Bombay store- Indian Artefacts, Home Furnishings.

Spencer’s, food world super markets

Foreign retailers in India

Carrefour - France

Costco - US

Tesco – UK

Wal-Mart – US

Kroger - US

1. Need arousal2. Recognition of the need3. Level of involvement4. Search for information or identification of

alternatives5. Evaluation of alternatives6. Decision 7. Purchase action8. Post-purchase feeling

Initiator – first individual

Influencer- provides views and advice

Decider – individual who will take decision

Buyer – actually makes the purchase

User – who consumes or uses the product

Demographic Changes

Multichannel

Personalized marketing

Distribution revolution

Emerging of retail business models

Existent before the biblical times

Deeply importance to people daily life

Easy transactions

Sell products and service to world wide market

Easier in marketing

Great ways to boosting sales and returning

Friendly and highly accommodations

Attractive , comfortable and convenient

Provide service, an goods to the consumers

Available of new shipping process

Consumer behavior on retail operations

According to Kelly & Stephenson ( 1967 )

1. General store characteristics – reputation

2. Physical characteristics of store – cleanliness, checkout services etc.

3. Convenience of reaching the store

4. Products offered – variety, dependability, quality

5. Prices charged by the store – value, special sales

6. Store personnel

7. Advertising by the store

8. Friend’s perception of the store.

> Engel-Kollat-Blackwell ( EKB ) model ( 1968 ) Three major changes:-- High involvement- Element of risk is higher ( consumer unsure about he

outcome of purchase decision ) - The central process can be seen in five stages :-1 – problem recognition/ arousal2 – internal search3 – external search4 – choice/purchase5 – outcome of satisfaction.

> Sheth’s family model of behavior

- decision process is investigated in terms of individual

Needs – Basic human requirements

Wants – Potential purchase occurs as the individual feels a drive to satisfy those needs.

Demands – Those wants for which the customer is able to pay.

Functional ( time efficient ) – focused, predetermined routine habitual action.

Complex ( time required ) – Pre-planned/ researched, higher risk.

Leisure ( time rich activity ) – Emphasis on browsing and serendipity.

Under gone remarkable transformation

Increased of income

Changes from traditional shopping to new retailing shopping.

Undergoes for branded products

Consumer undergone shopping from local vendor , streets vendor, stores ,malls and supermarket , etc.

Undergoes for quality and quantity products

Economic risk

Physical risk

Psychological risk – status can be lost through patronizing the wrong store.

Performance risk

Role playing – learned or expected behavior

Diversion – escape from daily routine

Self gratification

Learning about new trends

Physical activity – mall, stores size , etc

Sensory stimulation – sound, light, color, taste, etc.

Social experiences outside the home

Communication with others having similar interest

Peer group attraction

Status and authority

Pleasure of bargaining

Convenience

Reputation

Service encounter

Expectations of merchandise

Expectations of value

Demographic

Psychological

Environmental or related to lifestyle of customer.

Slowing birth rate Average life expectancy Social structure – rich becoming richer, poor

becoming poorer Delay of Marriage Value of education – high education, loans to pay off

hence white collar jobs and formal wear. Working women Population mobility Ethnic groups

Psychographics

Role of children in consumer behavior process.

Thinking , preferable, likes,etc

Based on psychology analysis

Lifestyle

Fashion

Standard of living

Developments of people life

Character changes

Boost economic life

Increase level of competition

Maximum opportunities

Advanced technology

Create jobs opportunities

Affect the small retailers, farmers and consumer

Give rise to monopolies pricing

Entry of large global retailers such as Wal-Mart

Retail chains would go up

Limited Employment Generation

Small retailers and other ‘Kirana Stores’ may close down.

The income of an average Indian is increasing and thus there is a proportional increase in the purchasing power.

The infrastructure is improving greatly in all regions is benefiting the market.

Indian economy and its policies are also becoming more and more liberal making way for a wide range of companies to enter Indian market.

Indian population has learnt to become a good consumer and all national and international brands are benefiting with this new awareness.

Another great factor is the internet revolution.

Foreign direct investment is not allowed in retail sector , which can be a concern for many brands.

Regulations and local laws and real estate purchase restrictions bring up challenges.

Lack of integrated supply chain and management and lack of trained workforce .

Any brand can go far ahead in the Indian Retail Revolution.

Unorganized retail still lead when compare to organized retail market.

Good Planning, Timely Implementation and a media campaign that touches Indian consumers.

Still India retailer are not in a proper status when compare to other countries.

Retailing in India still hold the future Ma till date

Retail market still play a major role in Indian economy.

Analyses and efforts should be put on all parameters.

New innovative retail marketing techniques need to implement in unorganized retailing( infrastructure, products design , packaging , etc.

Implementation of new reform retail marketing are needed.

THANK YOU