shiny provision store
TRANSCRIPT
SHINY PROVISION STORERETAILLING CHALLENGES IN INDIAN CONTEXT
Submitted By :-Sandeep Singh
Maanik MahajanRahul Agrawal
Angad Singh Malhan
Manoj SardanaAnkit Sikand
FLOW OF PRESENTATION
Objective History of Retail India Shopping Orientation in Evolving Indian
Market Reliance Fresh and Shiny Provision Stores Modern Retail’s Impact on Kirana Stores Demographic Segmentation Customer Analysis Image Analysis Recommendation
OBJECTIVE
To highlight the importance of analyzing the retail strategy of Kirana Stores.
Recommending strategies to strengthen the position in the Retail Industry and compete with modern retail outlets.
HISTORY OF RETAIL
Traced past to Indus Valley Civilization Barter System Fairs : Periodically Conducted market places Shandies : Weekly Markets Village Shopkeepers: Merchants going out of
village for trade Public Distribution Shops : Govt. run chains
GROWTH OF RETAILING
At the time of independence the focus was more on basic amenities rather than luxury
In 1950, there were 0.25 Million retail outlets In 1978, 2.335 Million retail outlets or 3.7
shops per 1000 persons. In 1997, 5.13 shops per 1000 persons. In 2005, 10.51 shops per 1000 persons. Indian retailing industry was dominated by
kirana stores.
RETAIL MARKET OF INDIA
Largely unorganized Food consumptions is close to Rs. 9000
Billion Rs. 3300 Billion urban food consumption Indian households spend 48% highest in
world on food
KIRANA STORES
“Mom and Pop” of the west Owner and family members manning the
store Small floor footage 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
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
MODERN RETAIL OUTLETS
Reliance Fresh located in BTM, Bangalore Store area 3000-3500 Sq. ft.. Deals in branded products Attractive
MODERN RETAIL OUTLETS
SHOPPING ORIENTATION IN THE EVOLVING INDIAN MARKET
INTRODUCTION
• Studies on shoppers limited to their time and
spending pattern, demographic profile and
preferences for a particular format.
• Study attempts to understand shoppers from their
disposition towards shopping.
• Shoppers seek emotional value more than functional
value. Shopping is considered to be a task.
• Some similarities and some differences in the
orientation of Indian shoppers and shoppers from
developed countries.
INTRODUCTION (CONTD.)
Some distinct aspects of Indian shoppers: Post –purchase information management and
bargaining.
Definition of convenience which is proximity to
home, work place as well as the places that the
shoppers frequent.
Shoppers are clustered into two segments: Fun shoppers
Work shoppers
Economic
Personalizing
Ethical
Apathetic
Stone (1955)
Dependent
Compulsive
Individualistic
Chicago Tribune (1955)
>60% are economical and apathetical thinkers
Westbrook and Black
(1985)
PRIOR RESEARCH REVIEW
PRIOR RESEARCH REVIEW
• A transition in the environment to which
shoppers are exposed for some past years.
• New formats are being tried for improved
customer value such as Subhiksha.
• Shoppers attach more importance to
ambience and facilities at store (Sinha,
Banerjee and Uniyal, 2002).
METHODOLOGY
• Study conducted among 300 respondents.
• Structured questionnaire got filled from shoppers
outside the store they had visited on that day.
• Stores dealt with grocery, apparels, household
appliances, books and music, shoes, lifestyle
products like cards and gift items, cosmetics and
medicines.
• Study focused on both old and new format stores.
METHODOLOGY
Questionnaire generated constituted four
constructs: Pre-shopping information search
Processing of information while shopping
Post-purchase information management
Gratification derived out of shopping.
Each construct was tested for reliability. Results
suggested to retain all the final statements.
Composite scale consisting of all constructs used
having Cronbach Alpha value of 0.74.
• Factor analysis yields 13 factors on factor analysis
of 286 responses.
• K-mean cluster analysis used to predict profile of
shoppers based on their orientation.
• CART analysis to find out major variables that
discriminated the clusters, generated out of
cluster analysis. Classification is based on age,
SEC, frequency of visits, gender, marital status,
types of stores they visited and product class they
purchased.
METHODOLOGY
ORIENTATION TOWARDS SHOPPING
Shoppers can be divided into two segments:
I. Fun shoppers
II. Work shoppers
Data is supported by K-mean cluster analysis
ORIENTATION BASED SHOPPER TYPOLOGY: WORK VS. FUN
SHINY VS. RELIANCE
Both were located in main area of BTM 2 KM apart
Both carried similar categories of products Shiny provided door delivery service Vicinity for both was same
1. 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 to Reliance Changing shopping pattern i.e. working class preferring
bulk shopping on weekends at the Reliance where they find other refreshing activities and offers
2. DEMOGRAPHIC SEGMENTATION
High Income group preferred spend more at Reliance Fresh
Reliance was preferred for Branded Items Reliance scored better on Activities,
Interests, Opinions study
DIFFERENTLY PERCEIVED DIMENSIONS OF THE MODERN OUTLET
Low Income Attractive layout Good Display all over Attractive and informative display Price of the product Return of purchases Helpful sales, clerical staff
DIFFERENTLY PERCEIVED DIMENSIONS OF THE MODERN OUTLET
Medium/High Income Quality Checkout delay Dressing of store staff Store atmosphere Product placing One stop facility Exclusive product assortments Brands
3. EXPENDITURE PATTERN
One third population belong to <10000 INR Income class
People from all Income classes were spending more at Reliance
Reliance was preferred destination for purchasing branded goods
Average % monthly spending at Reliance was more for lower income group
Total expenditure
4. 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.
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.
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
5. 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.
THANK YOU