shoppers in retail

8/3/2019 Shoppers in Retail

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One of the countrys agri-business

initiatives, Hariyali KisaanBazaar the rural retail venture ofDCM Shriram Consolidated Ltd

The "Hariyali Kisaan Bazaar" chain, seeks to empower thefarmer by setting up centres, which provide allencompassing solutions to the farmers under one roof.

Each "Hariyali Kisaan Bazaar" centre operates in acatchment of about 20 kms. A typical centre caters toagricultural land of about 50000-70000 acres and impactsthe life of approx. 15000 farmers.


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The key constraints of the Indian farming sector,

being addressed by "Hariyali" are:

1. Lack of last mile delivery mechanism of

modern agriculture know-how & practices.

2. Lack of availability of critical good quality

agri-inputs.

3. "Middlemen" driven farmer interface.

4. High cost credit.

5. Lack of direct access to buyers of varied &high value crops.

Rural Indian market is worth 16, 00, 000 crores

(Sep. 2009)..HKB


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Poor farm infrastructure + Poor supply chain infrastructure:7% harvest loss in food grain, 30% in fruits and vegetables,10% in spices

Multiple layers of middlemenAgriculture sector growth at 2.3 % (2005-06) vs. manuf. &services which were over 11%Increasing demand for processed food due to urbanization &

rising incomeAcknowledgement and realization of macro problems in agrisector like:.low levels of public investment

..exhaustion of potential for production for high yeilding

varieties...land degradation due to chemical fertilizerslow seed replacement , poor SC,GERMAN RETAILER METRO S ENTRY in 2005.mid 2007..16

states and 5 union terr amended agri policies


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Environmental Factors and Consumers

State of the Economy- recession/ upbeat

Rate of Inflationgeneral price levels and quantity + impacton category

Infrastructure for Shoppingconvenience/ return to store

Price Warshigher value demanded

Emergence of New Retail Formatschanged shopping/entertainment patters/ cross selling

People Working at Homeshopping from home/ out ofhome shopping in restricted hours

Regulations on Shoppingbills/ receipts/ demanding

delivery standards, insurance/ frauds

Changing Social Values and Normsflexibility/ lessinterference / more sophistication


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Internal

environment

External

environment

Decision

makingShopping

Motives


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SPECIFIC EXT. ENVGENERAL EXT. ENV


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In 2005: Number of Aspirers= (32*790/100) million= 252.8 millionIn 2015: Number of Aspirers= (47*875/100) million= 411.2 millionThat is roughly 158 million people will be added to the aspirers class.

SEGMENTATIONTARGETING


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Rural Scenario in India:Rural India accounts for roughly 70% of the population. Almost 6, 27,000villagesare home to 790 million Indians today.

Two-thirds of countrys consumers live in rural areas and almost half of thenational income is generated here.15% of rural population lives in 20,000 large non urban areas with populationmore than 5,000 people. 63% of rural population lives in villages of 1000 to5000 people.

Remaining 3, 90,000 villages have fewer than 1000 people accounting for 22%of the population.

MARKET POTENTIAL


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Demographics and Lifestyles

Demographics

consumer data

that is objective,quantifiable,easily identifiable,measurable

Lifestyles

ways in which

consumers andfamilies live andspend time andspend money

SEGMENTATIONTARGETING


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Population Population growth Life expectancy

Age groups Income groups Classes in society Rural urban divide No. of households Family size

CountryStateRegionCity

Product categoryProductsEthnicityTime/yearSub cultural pockets


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Understanding Consumer Lifestyles:

Social Factors

Lifestyle

CultureReference

Groups

SocialClass

FamilyLife

Cycle

TimeUtilization

HouseholdLife

Cycle


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PsychologicalFactors

Personality Attitudes

Perceived

Risk

Purchase

Importance

Class

Consciousness

SEGMENTS:

PsychographicVALS

Behavior

Media habits


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1. The Indian consumers are noted for the high degree of valueorientation.

2. Indian consumers are also associated with values of nurturing, careand affection. These values are far more dominant that values of

ambition and achievement.3. consumers are selective on the quality of the products/services.

4. The consumer also seeks to purchase from a place where his/herfeedback is more valued.

5. The Indian consumers are price sensitive and prefer to buy value

for money products.6. In India .companies are increasingly using celebrities. Indiansalways love their heroes and heroines.

7. Indian consumers looking for quality choose expensive brands asthey feel that price is an indicator of quality.

8. Indian consumer buying behaviour is influenced by freebies.9. Indian consumers are likely to buy environmentally responsible

products and packs.


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The Consumer DecisionProcess


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Key Factors in the Purchase Act

Consumers personal

characteristics


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Types of Consumer Decisions

High

RISKINVOLVEMENT

TIME

MONEY

FREQUENCY

Low

Extended

Limited

Routine


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C

OM

M

U

N

I

C

A

T

IO

N

S


18/23

Crossword is a chain of bookstores in India.

It has redefined the way books

are retailed in India.

A large number of changes have been brought by

taking store decisions based on the behaviour of Indian book buyers at thestore.

For instance, the racks have a lower height than in most stores. It

found that the average height of an Indian consumer is lower than those in

western countries, while the racks were designed based on the international

standards. This not only caused discomfort but also affected the sale of the

books.

The lowering of the racks not only increased sales, the store looked

more spacious as the shoppers could see all through to the end of the store.

Similarly, it found that the shoppers would squat on the floor to browse thebooks on the lower shelves of the racks. It changed to design of the rack so

that the lower shelf was an incline and the shopper could see the books

clearly.

This increased the sale of the books even when they were placed

on the lowest shelves.


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Consider this scenario at a grocery store.

A shopper walks in and asks for bread. The shopkeeper giveshands over a loaf. The customer checks the softness andasks for another piece. He checks it again. Compares the softness

of the two loaves and chooses one of them.

In another store,loaves of bread are placed on the counter. A shopper walks in andstartschoosing the loaf on the basis of softness. He picks one, pays andleaves.

The two situations elicit the extent of selling as well as buying effortsrequired. It is very likely that in the latter case the shopper is moresatisfied

and there is lesser effort from the shopkeeper as well.

It is a win-win situation.The merchandising in the second store is based on the behaviourof the shopper, where as in the other it is based on the retailersstocking pattern.


20/23

IT has been a critical backbone to the chain of centres. It is

being used to provide online support on latest technical

advancements, weather forecasts, mandi (market) prices, fair &

transparent billing to farmers as well as in maintaining extensivefarmer databases with micro information about the farmers' field

to provide customized service to the farmers.

Farmer Response

So far over 302 Hariyali outlets hav been set up across eight

states- Haryana, Punjab, Uttar Pradesh, Rajasthan, Chattisgarh,

Madhya Pradesh,Maharashtra and Andhra Pradesh

Hariyali


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The major challenge faced by Hariyali in

meeting the expectations of the brand, and cited

in the Harvard study, is

the logistics of having employees in so many

different locations and

providing for

the economic nuances,

attitudes andpractices of different regions of the country.


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Retailers Association of India(RAI) is the unifiedvoice of India retailers. RAI works with all thestakeholders for creating the right environment for thegrowth of the modern retail industry in India.

RAI is the body that encourages, develops, facilitatesand supports retailers to become modern and adopt

best practices that will delight customers.

RAI has a three charter aim of Retail Development,Facilitation and Propagation.


23/23

According to Disney's Kidsense 2007 survey, 63% kids are discussingproducts that span not only kiddie categories (clothes, bicycles) but goacross the spectrum (DVD players, mobilephones, cars, holidays).

What's more: 21% parents turn to their teen or tween for informationwhile buying high priced items. And 46% of the parents surveyed arecertain that their child's opinion is based on research.

With every next child now becoming an alpha pup that's market

research jargon for the kid who is deemed by friends to be the coolest intheir school or neighbourhood it's not surprising that the kidfluence(direct and indirect influence kids have on their parents' purchasingdecisions) graph is on a upward swing.

Says Santosh Desai, CEO, Future Brands. "As Indians be it adults orkids we are all children of the consumption age. It is for this reasonthat kids interpret the new lingo of consumption better." No wonder youturn to your teenager for the latest on everything from lip colour to DVDplayers.

shoppers in retail

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