retail equity

8/2/2019 Retail Equity

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PRESENTED BY:

ANKITA YADAV

SABAHUL MOZZAM

VIRENDRA MAHAWAR

MBA IV SEM


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Retail equity is the value a retail outlet is

able to add to the brand or to the products

sold by it.

In some of the product categories such asjewellery, it is the retail equity which draws

consumer traffic .

Eg:Carbon and Tanishq


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Exclusiveness helps the brand build its

equity.

BPL, Titan, Carrier Aircon, Ceat and MRF are

some of the brands which have exclusive

showrooms.


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Retail equity aims at creating specific

associations which would create a high

degree of recall in the minds of the

consumers by placing the retail outlet at thetop of the retail ladder.

In urban areas, the retail ladder could be the

topical area of interest to marketers and

retailers. Eg:Music World for music and Health and

Glow for health products.


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Retail equity also serves as a differentiator when

consumers are confronted with hundreds of retailoutlets and the power of retail equity is evident.

Retail equity also helps the outlet to have better

buying power with large companies because of the

volumes it is capable of achieving.


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The actual process of developing a retail

equity differs across product categories,

there are few conceptual aspects which are

likely to be useful to any outlet concernedwith retailing.

The type of target segment which is being

considered by the specific retail outlet

defines the expectations to which the outletwill have to measure up to in terms of

service, availability, product assortment and

layout.


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Awareness of brands and expectations from

retail outlets from the target segment is an

important criteria for developing the retail

image.


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When a brand with a specific expectation

appeals to a large segment. For example,

McDonald's is known all over the world for its

value, cleanliness and convenience. These expectations have been built over a

period of time and hence, it draws

consumers from all income groups, age

groups and lifestyle groups.


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Convenience for a fast food outlet, fast check-out

during peak hours for a departmental store and

variety for a music store are some dimensions whichcould be important.

Shoppers' Stop has positioned itself on this

dimension.

There were also advertisements in which customers

talked of their experience. After having created an

association with enjoyable shopping experience.


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Fountainhead, the Chennai-based book store,

has also positioned itself as a leisurelyshopping experience - a differentiator among

several other book stores.

Large layouts, open spaces and comfortable

car parks apart from lower prices attract a

specific segment to these outlets.


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In the present day context of multi-promotional plans, the POP process has to beintegrated into the entire promotional planin a meaningful manner. This process couldbe termed as an integrated POP plan.

Apart from the conventional POP materialsuch as posters and brochures, a POP plantoday also considers factors such as layout of

the store, signages, parking place,atmospherics and systems which couldenable consumers to transact business withease and comfort.


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A supermarket in today's context markets a

number of brands within a category and the

display space is limited.

Certain brands may generate greater recallthan other brands in the category.

A store which deals with about 20 brands of

soaps and toothpastes may have to promote

all the brands most of the time.


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A store may be under pressure from several

brands to promote all of themsimultaneously.

Colgate may have a herbal version, gel

version and a variant such as Total, which

offers several benefits, and all these variantsmay need to be promoted.


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INTRODUCTION

In June 2010, Indian retail giant, Future Group, tied upwith Tata Teleservices Ltd (TTSL) to start a unique mobileservice called T24 (talk 24 hours). Under the agreement,Future Group offered GSM connections under the brand

name T24 to customers visiting its retail outlets across allformats and locations. With a tagline of 'Shop More, TalkMore and Talk more Shop More', the mobile GSM servicewas similar to a loyalty program, wherein a customerwould get free talk time when he/she shopped at outletsof Future Group and vice versa. For instance, if a customerspent Rs. 2,001 in Big Bazaar, he/she would get Rs. 84

worth talk time free. Customers were also offered specialdeals and promotional schemes every time they purchasedthe paid recharge. According to analysts, the uniqueretailer-telecom partnership offered an innovative andfirst-of-its-kind value proposition to customers in India.


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"Shopping and talking on our mobile phones are

among the two favorite activities for all of us in

India. With T24, we have been able to develop aunique customer value proposition that combines

these interests of the inspirational Indian.

Customers will get shopping benefits for talking and

talk-time benefits each time they shop,"

said FutureGroup CEO Kishore Biyani (Biyani). This followed a

number of customer loyalty initiatives at Future

Group's flagship hypermarket chain Big Bazaar Pvt.

Ltd. (Big Bazaar). In order to win the loyalty of itscustomers, Big Bazaar introduced several unique

loyalty initiatives such as discounts, special deals,

loyalty cards, rewards programs, etc.


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TStarted in 2001, Big Bazaar was positioned on

price and value for money for the Indian customers.

With a catch line of"Is Se Sasta Aur Accha Kahin

Nahin" (You can't find anything cheaper or better

anywhere else). According to Big Bazaar, it offered

quality products at the lowest possible prices. The

hypermarket chain offered a host of value-addedservices to its customers such as special discounts

and promotional offers at regular intervals.

According to experts, Big Bazaar offered customers

a new level of standard in price, quality,

convenience, and service. With over 160,000

products across various categories, it catered to the

needs of the entire family under one roof...


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INDIAN RETAIL SECTOR

The Indian Retail Industry was divided into the

organized sector and the unorganized sector. Theorganized sector included licensed retailers such ashypermarkets and retail chains whereas ...

ABOUT BIG BAZAAR

Based in Mumbai, India, Big Bazaar operated as a

subsidiary of Future Group. Founded in 1987, FutureGroup was a leading multi-format retailer in India withoperations in three sectors - Retail, Allied Services, andFinance...

CUSTOMER LOYALTY INITIATIVES

According to industry observers, Big Bazaar's uniqueselling proposition was low pricing and round-the-yeardiscounts on products...


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WEDNESDAY BAZAAR

Big Bazaar's other unique promotional scheme was the

concept of Wednesday Bazaar introduced in 2006. Called the"Hafte Ka Sabse Sasta Din" (the cheapest day of the week),the offer promoted Wednesday as the most affordable day atBig Bazaar by offering special prices on some products.

MAHA SAVINGS DAY

Starting 2006, every year, Big Bazaar celebrated RepublicDay (January 26) as Maha Savings Day, wherein the storeoffered merchandise to its customers across the country atthrowaway prices. Called the 'Sabse Sasta Din' (the cheapestday), Big Bazaar offered discounts.

THE GREAT EXCHANGE OFFER

In 2007, Big Bazaar launched a month-long unique exchangeoffer called the 'The Great Exchange Offer', across its storesin the country. As part of the offer, customers could exchangetheir old junk items.


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LOYALTY CARD PROGRAMS

As part of its customer relations initiatives, in May2002, Big Bazaar in association with ICICI Bank Limitedintroduced the Big Bazaar-ICICI Bank Silver Credit Card.

T24

In June 2010, Future Group in partnership with TTSLrolled out a mobile service called T24 for its customers.As part of the offer, customers were rewarded with free

talk time for every purchase above Rs.500 made atFuture Group shopping outlets across all formats andlocations.

Looking Ahead

In 2010, Big Bazaar accounted for about one third of

food and grocery products sales through retail in India.Analysts opined that Big Bazaar had succeeded largelydue to its focus on consumer behavior in India.

retail equity

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