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5.1 Retail Market in India and Purpose of the Study
The Indian retail market (US$ 413 billion) entails only 6 per cent of itself as organized
retail segment as of 2010, according to Booz and Co. (India) Pvt. Ltd. Food and groceries
is the largest segment in organized retail, followed by apparel, footwear and consumer
electronics. The BMI India Retail Report for the fourth-quarter of 2011 forecasts that the
total retail sales will grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by
2015. The report has underlined factors like economic growth, population expansion,
increasing wealth of individuals and rapid construction of organized retail infrastructure
as major drivers for the optimistic forecast figures71
.
India has been ranked as the fourth most attractive nation for retail investment among 30
emerging markets by the US-based global management consulting firm, A T Kearney, in
its Global Retail Development Index (GRDI) 2011.
AT Kearney has also conducted a different study which says that organized retailers
should follow hypermarket concept to penetrate through India’s US$ 435 billion industry.
According to the report, given the gigantic size of the Indian retail market, it is no
surprise that many Middle East retailers, most recently Lulu, have announced their
interests to extend their retail operations to India.
Cumulative foreign direct investment (FDI) inflows in single-brand retail trading during
April 2000 to April 2011 stood at US$ 66.69 million, according to the Department of
Industrial Policy and Promotion (DIPP).
Jubilant FoodWorks Ltd, which operates fast food chain of Dominos Pizza in India, will
invest over (INR 70 crore) (US$ 15.47 million) in the FY12 on new stores and
71
http://www.ibef.org/india/economy/consumermarket.aspx
commissaries. Reliance Industries’ Reliance Retail (that runs supermarket and
hypermarket chains) is planning massive expansion across the country by doubling the
number of stores in several specialty formats in 2011.
The brand ‘More’, operated by Aditya Birla Retail, will open 12 hypermarkets and 150
supermarkets in fiscal 2012. After the expansion, its supermarket stores tally will reach
715. Shoppers Stop Ltd, which has 43 departmental stores and 10 hypermarkets under the
brand Hyper city, plans to open four more hypermarkets and 10 departmental stores in
2011.
According to a report by research firm CB Richard Ellis India, over 6 million square feet
of retail mall space was added across India in the first six months of 2011; primarily due
to aggressive expansion by organized retailers.
Indian consumer purchasing is largely through the unorganized sector or through the
kirana stores. Organized retail constitutes a small percentage of the Indian retail market.
However, with urbanization and increasing value-consciousness among consumers, the
organized retail format is beginning to take root. The organized retail format promises
consumers better quality and better shelf-life for products due to their excellent storage
facilities and anti-tampering checks. An important factor attracting consumers towards
formal retailing mechanisms such as hypermarkets and departmental stores is the
shopping experience. These shopping outlets allow consumers to explore their choices to
touch and feel products in the comfort of a stylish and healthy environment, something a
kirana stores cannot offer.
Retail72
consists of the sale of physical goods or merchandise from a fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply
chain. Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution strategy. The term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such as a public utility, like electric
power.Types of Retail formats in India can be understood from the broad category given
below :
Kirana Stores: These are generally family-owned businesses catering to small sections
of society. They are small, individually run and handled retail outlets.
Departmental Stores: These are the general merchandise retailers offering various kinds
of quality products and services. It is a self service store consisting mainly of grocery and
limited products on non food items.
Hypermarkets /Supermarkets: The supermarkets can be anywhere between 20,000 and
40,000 square feet (3,700 m2). Example: SPAR supermarket. These are generally large
self-service outlets, offering a variety of categories with deep assortments. They provide
variety and huge volumes of exclusive merchandise at low margins. The operating cost is
72
http://en.wikipedia.org/wiki/Retail accessed on 5th August 2011
comparatively less than other retail formats. These stores contribute 30 per cent of all
food and grocery organized retail sales. Example: Big Bazaar
Malls: These are the largest form of retail formats. They provide an ideal shopping
experience by providing a mix of all kinds of products and services, food and
entertainment under one roof. Examples are GVK Mall in Hyderabad, CMR Central Mall
in Visakhapatnam.
Specialty Stores: The retail chains, which deal in specific categories and provide deep
assortment in them are specialty stores. Examples are RPG's Music World, Crossword,
etc.,
Retail pricing - The pricing technique used by most retailers is cost-plus pricing. This
involves adding a markup amount (or percentage) to the retailer's cost. Another common
technique is suggested retail pricing. This simply involves charging the amount suggested
by the manufacturer and usually printed on the product by the manufacturer.
The study attempts to explore the various responses given on selected environmental
aspects that need to be addressed by the Government and its stake holders including
companies, retailers, customers etc., for making holistic green marketing strategies. A
place like Andhra Pradesh is chosen as it is one of the worst polluting States of India. The
two cities are again specifically chosen as Hyderabad is a commercial capital of Andhra
Pradesh. And Visakhapatnam is a city that has already has major heavy industries like
Steel Plant, Naval Dockyard etc., and is a place to potential city for higher industrial
growth in future.
5.2. Results and Analysis According to Retail Formats
Figure - 5.1 Classification of retailer formats City wise.
The Respondents’ retailer formats are divided into the following formats: The kirana,
departmental, super and hyper formats. These formats have been considered with the
distribution where 73 per cent are from kirana stores, 15 per cent are from departmental
stores, 10 per cent are from super market and 2 per cent are from hypermarkets.
Figure - 5.2 Frequency of trade with companies (and their suppliers) that claim to
make eco-friendly products.
Analysis of the survey results: Responses from 82 per cent retailers in Hyderabad
indicate they trade ‘often’ to ‘very often’ with supplier of companies that claim to make
eco-friendly product. Again responses from 12 per cent of retailers from Hyderabad
indicate ‘Always’ for the same. In Visakhapatnam, 60 per cent responses indicate they
trade ‘often’ to ‘very often’ with such companies. As much as 36 per cent responses
indicate they ‘rarely’ do so in Visakhapatnam.
Inference of the Analysis: It is observed that retailers form Hyderabad trade more often
with companies that claim to be making eco-friendly products. Such possibility of retailer
responses so from Hyderabad is attributed to ‘commercial prominence’ and position the
city has when compared to Visakhapatnam. The research is in consumer markets and
Visakhapatnam is a city that has major heavy industries, unlike Hyderabad that has heavy
industries, traders and manufacturers pertaining to consumer markets.
Figure 5.3 - Rating of a customer who insists on an environment friendly.
Analysis of the survey results: Similarity in responses is observed from Visakhapatnam
and Hyderabad respondents in rating ‘very good’ about a customer who insists on eco-
friendly products at 66 per cent. Overall, 32 per cent felt ‘good’ about the customers
from Hyderabad while 26 per cent from Visakhapatnam felt so.
Inference of the Analysis: From the responses of the organized and the unorganized
retailers, it is observed that there is high positive response rate at 98 per cent and 92 per
cent in Hyderabad and Visakhapatnam respectively about customers who insist on eco-
friendly products. The indication that retailers are aware about the change in the customer
preferences is a positive indication for the companies to make pro-environmental
strategies. Consideration on trade commissions and credit sale for retailers can be
possible devising strategies.
Figure - 5.4 Average percentage of customers who insist on eco-friendly products
in a day.
Analysis of the survey results:
It is found that retailers indicate a range between 0 – 30 per cent of customers insisting on
eco-friendly products per day in Hyderabad at 38 per cent. And it is 18 per cent from
retailers at Visakhapatnam. However, there are 64 per cent between 31 – 50 per cent from
Visakhapatnam and 52 per cent from Hyderabad. Customers, who insisted on eco-
friendly products up to 50 per cent, are 18 per cent from Visakhapatnam and 10 per cent
from Hyderabad.
Inference of the Analysis: Companies planning for eco-friendly product freebies and
exclusive shelves can be confidant about potentiality of customer buying from
Visakhapatnam. Though Visakhapatnam is a hub for heavy industries, it is observed that
even for consumer good companies, the place is a matured city to gain acceptance for
eco-friendly products almost at par with Hyderabad.
Figure - 5.5 Preference towards eco-friendly products - Male Customers.
Analysis of the survey results: There are 66 per cent responses that indicate male
‘mostly prefer’ eco-friendly products from Visakhapatnam and 62 per cent from
Hyderabad. Male customers have a high similarly in their preferences in both the cities.
Responses that indicate ‘rarely prefer’ option at 20 per cent of the overall responses
indicate matured customers visiting the store.
Inference of the Analysis: Male customers have considerable say in decision making in
the Indian households. Thanks to matriarchic roots of the culture. But they are to some
extent and to a large extent dependent on the female counter parts in the urban house
holds. Moreover, as parents the new generation of males in the role of a father does not
want to dominate their child as they were by their parents. Parents are shifting from a
hierarchical system to one that has more participation and mutual respect within the
members from old to young in the household. Companies have to observe these facts for
their plans.
Figure - 5.6 Preference towards eco-friendly products - Female Customers
Analysis of the survey results: Comparatively women customers of Visakhapatnam
favor companies claiming to make eco-friendly products. According to the retailers
women customers in Visakhapatnam are 52 per cent for this and 48 per cent against.
While Visakhapatnam Men customers are 74 per cent for this and 26 per cent against.
Hyderabad women customers are 48 per cent for and 52 per cent against, and the male
customers are 72 per cent for and 28 per cent against.
Inference of the Analysis: Variations within the men and women customer preferences
are almost similar in Visakhapatnam and Hyderabad for purchasing eco-friendly
products. Companies can target men customers who are more open to buy eco-friendly
products against women customers in both the cities. Companies may note that common
promotional strategies for both geographical locations can be made targeting men and
women, given the similarity in preferences. However, strategies to change Desire into
Action from the (AIDA principle) in women customers has to be devised.
Figure - 5.7 Inducing a consumer to buy a product in lines of eco-friendly aspects
Analysis of the survey results: The study finds favorable responses to this point in
Hyderabad better than in Visakhapatnam. Responses from Visakhapatnam indicate that
16 per cent ‘disagree a little’ as against 6 per cent from Hyderabad. 88 per cent from
Hyderabad report they agree ‘Little’ to ‘very strongly’ to this. To the same response rate
is 78 per cent from Visakhapatnam respondents.
Inference of the Analysis: It is observed that overall the responses from Hyderabad
retailers are more favorable about inducing a consumer to buy a product on eco-friendly
aspects. However, the fact that Visakhapatnam retailers show almost equal response
cannot be ignored. A time to strategize an integrated approach in educating and
sensitizing the customers is a possibility that can be contemplated by companies well
before launching and shelving eco-friendly products in the retail places.
Figure - 5.8 Measures suggested for companies to improve promotion of eco
friendly products.
a. Increase Credit sales on such products between channel members i.e., among
(Manufactures wholesaler retailer)
b. To elaborately explain the dangers of using products whose ingredients are
harmful to the environment.
c. To elaborately explain the dangers of using products those have
environmentally harmful packing material.
d. To promote about the environmental issues in general to the public
specifically showing the advantages of using eco friendly products.
Analysis of the survey results:
The study finds that there is a variation in the responses given by Hyderabad and
Visakhapatnam retailers about their suggestions to companies about viable strategies to
promote eco-friendly products. While ABCD is preferred highest from Hyderabad
respondents at 32 per cent and AB at another 32 per cent, they prefer ACD as the second
highest as 28 per cent. Visakhapatnam has responses with ACD as their highest
preference at 24 per cent, ABC at 20 per cent and AB at 12 per cent as third highest.
Other options being less than 10 per cent do not hold any significance for inferences.
Hyderabad retailers prefer ABCD, AB and ACD in order of preference and higher
percentage. Responses from Visakhapatnam prefer ACD, ABC and AB in order. Option
D is observed to be repeated in Hyderabad responses while in Visakhapatnam the option
C is repeated apart from A is being the highest preferred option by both the cities.
A. Hyderabad: A and D are mostly seen, that is Increase credit sales on such products
between channel members.
B. To elaborately explain the dangers of using products those have environmentally
harmful packing material.
D. To promote about the environmental issues in general to the public specifically
showing the advantages of using eco friendly products.
Inference of the Analysis: Answer supports other data that the awareness of
environmental issues in Hyderabad customers has to be improved. Retailers can prove to
be a potential hope to do this pivotal task as they are the personal connections between
the customers and the promoting companies of products.
The general awareness has to be overall increased in sensitizing on eco-friendly issues in
Hyderabad more compared to Visakhapatnam according to these responses overall.
Figure - 5.9 Marketing communication suggested to increase the sale of Eco-
Friendly products.
Analysis of the survey results:
From the study it is indicated that awareness about eco-friendly aspects is less in
Hyderabad compared to Visakhapatnam. The third option given here about creating
shelves for eco-friendly products is not preferred at all by any of the retailer in
Hyderabad. There is 26 per cent indication from Visakhapatnam retailers for this option.
Hyderabad respondents opted for distribution of pamphlets in order to increase the sale of
eco-friendly products at 56 per cent.
Alternatively, 32 per cent Hyderabad responses chose advertising in local news papers as
against 42 per cent from who chose the same from Visakhapatnam. Retailers of
Hyderabad seem skeptical of the costs incurred for promotional activities given the
limited awareness among the customers and retailers about eco-friendly products.
Inference of the Analysis: There is a disparity in the views expressed by the retailers
from Visakhapatnam and Hyderabad about the promotion of eco friendly products. The
Hyderabad retailers are not going out of the conventional methods of advertising like
advertising in local news paper. Again distributing pamphlets is another option from
them where as one fourth of Visakhapatnam retailers from the study indicated that
shelves have to be created for the eco-friendly products as a point of purchase promotion
activity.
Companies need to devise plans to tap the retailers in Hyderabad in two phases. Phase I:
To address the awareness issues of environmental concerns and products to retailers and
channel partners. Phase II: An IMC (Integrated Marketing Communication) approach
within the promotional budget to be considered in order to target specific groups within
the society to buy eco-friendly products. Eco-friendly purchases are a high possibility
from the educated and urban customer with certain considerable income level. Without
the gender discrimination (given the variations in behavior of genders about eco-friendly
purchases) companies can devise strategies to reach the specific audience as discussed
above through advertisements (reach and recall advertisements).
Figure - 5.10 Frequency of promoting sale of Eco-Friendly products
Analysis of the survey results:
From the study it is observed that 70 per cent Visakhapatnam retailers indicate promoting
eco-friendly products ‘often’ while 34 per cent from Hyderabad responded so. Compared
to Hyderabad retailers who indicate they ‘rarely’ promote at 34 per cent, Visakhapatnam
responses are at 14 per cent in this aspect.
Inference of the Analysis:
Companies promoting eco-friendly products are to note that despite lesser awareness
levels in Hyderabad, higher proportion of the retailers ‘rarely prefer’ frequency in
promotions. The variation in the retailer attitudes about promoting the eco-friendly
products between the cities is to be critically observed for making strategic moves or
deciding trade margins to the retailers about trading eco-friendly among the channels of
distribution.
Figure - 5.11 Retailer influence on a consumer to buy products at higher prices
on Eco-friendly attributes.
Analysis of the survey results: There is a similarity observed among the responses
(between the cities) about ‘supporting wisdom in buying eco-friendly products’ so as to
convince and influence a customer in paying a higher price for eco-friendly products. The
retailer’s second preference is to ‘appraise the social responsibility of companies that are
making eco-friendly products’, with 31.2 per cent from Visakhapatnam and 19.1 per cent
from Hyderabad. To ‘show them the benefits of using eco-friendly products’ is given by
19.1 per cent retailers from Hyderabad as against 4.2 from Visakhapatnam.
Inference of the Analysis:
A variation in retailer planning between the cities about influencing the customers is
attributed to variables like the awareness levels among customers about eco-friendly
products in the city, the spending capacity of customers and extra percentage of spending
for eco-friendly products according to the city.
Figure - 5.12 Attitudinal change needed in consumers to insist on eco-friendly
products.
Analysis of the survey results:
It is observed that 28 per cent retailers from Hyderabad indicate attitudinal change
requirement in the consumers to be between 60 – 75 per cent. Retailer responses from
Visakhapatnam are 54 per cent for the same. The rate is however 18 per cent higher in the
case of Hyderabad responses that indicated the need for change to be between 46-60 per
cent compared to Visakhapatnam responses.
Inference of the Analysis:
Though the results from the survey show that awareness levels between the cities is
different, there is in-coherence in attitudes maintained by the retailers. Companies
planning to make their strategies need to examine this and ignore certain inconsistencies
found in the retailer responses while devising the marketing mix strategies.
Figure - 5.13 Government involvement on taking responsibility of promoting make
of eco friendly products among companies.
Analysis of the survey results: The retailer responses that there is ‘little involvement
level’ from the Government in taking up responsibility to promote the make of eco-
friendly products in companies is similar in both cities. 46.6 per cent of the overall
responses indicate ‘little involvement’ from the Government. Again ‘involvement to a
great extent’ is marked by 28.6 per cent of retailers from Visakhapatnam and 21.1 per
cent from Hyderabad.
Inference of the Analysis: Companies and the Government need to take cues that 40 per
cent and more of the overall retailer responses indicate that a lot more has to be initiated
from the Government apart from what is being done. Government activity to support
anticipations to allocate subsidies, collaborate for technologies and show bigger
incentives for lower emissions apart from creating awareness among the customers can
be pursued to support the holistic Green Marketing process. More points in Chapter VII.
5.3 RETAILER CROSS TABLES OF HYDERABAD AND VISAKHAPATNAM –
INTERPRETATION
Figure - 5.14 Frequency of trade with a company who claims to make
eco-friendly product – Kirana stores
Analysis and inference of the survey results: Out of all the formats the kirana stores at
Hyderabad trade ‘very often’ compared to the kirana formats at Visakhapatnam.
Hyderabad kirana formats trade at 65.8 per cent, Visakhapatnam formats at 8.6 per cent.
Visakhapatnam kirana stores, 54.3 per cent however indicated they trade ‘often’ with the
companies that claim to make eco-friendly ones. This shows that between the cities,
Visakhapatnam is less active with kirana formats dealing less with the companies that
claim to be making eco-friendly products.
Inference of the Analysis: From the previous results, it is observed that Hyderabad
retailers trade more frequently with companies that claim to make eco-friendly products
compared to Visakhapatnam retailers. The same result is verified format wise and choice
wise specifically here.
Figure - 5.15 Frequency of trade with a company’s (supplier) who claims to make
eco-friendly product – Departmental Stores wise
Analysis of the survey results: The Departmental formats, 50 per cent from
Visakhapatnam indicate they ‘rarely’ trade with suppliers of companies that claim to
make eco-friendly products and 20 per cent from Hyderabad do so. ‘Often’ and ‘very
often’ are opted by 40 per cent departmental stores in the Hyderabad. This is higher than
Visakhapatnam retailers who indicate the same attributes at 30 and 20 per cent
respectively.
Inference of the Analysis: Retailers from Hyderabad departmental formats also indicate
higher percentages of trade with suppliers who claim to be making eco-friendly products
as against Visakhapatnam Departmental formats. Here, the companies can observe
kirana and departmental formats from Hyderabad have similar responses about their trade
with existing company suppliers that claim to make eco-friendly products.
Figure - 5.16 Frequency of trade with a company who claims to make eco-friendly
product – Super Market stores
Analysis and inference of the survey results:
Super market formats in Hyderabad show 40 per cent trading with eco-friendly company
claimants ‘always’ and ‘very often’ respectively as against the Visakhapatnam with
‘always’ and ‘very often’ at 20 and 40 per cent respectively. The super markets
between Hyderabad and Visakhapatnam that are interested in trading with eco-friendly
company claimants have variation in their responses.
Inference of the Analysis:
It is inferred that super markets from Visakhapatnam when compared to the other retail
formats, kirana and departmental trade less with eco-friendly companies. Thought it is a
slight variation, the point has to be noted by the companies for their strategies.
Figure - 5.17 Buying Preferences towards eco-friendly products – Males according
to Kirana stores
Analysis of the survey results: Highest preference among males is observed from
Hyderabad retailers that indicate 63 per cent overall ‘mostly prefer’ eco-friendly
products. 24.7 per cent indicate male customers ‘rarely prefer’ option. Similarity is
observed among male customers who prefer eco-friendly products as per kirana formats
in both the cities.
Inference of the Analysis: Though the responses indicate there is an overall similarity
in the preferences between both the cities, it is observed that there Hyderabad retailer
responses indicate male customers have high preference as against Visakhapatnam
Kirana responses.
Figure - 5.18: Buying Preferences towards eco-friendly products – Females
according to Kirana stores.
Analysis of the survey results: It is observed that preferences for eco-friendly products
as per kirana retailers’ about women customers from Visakhapatnam who ‘mostly prefer’
are 48.6 per cent. The same is 36.8 per cent from Hyderabad. ‘Rarely prefer’ option
given by Hyderabad retailers is observed to be higher among the women customers as
compared to Visakhapatnam.
Inference of the Analysis: It can be inferred that there is a variation between the male
and female customer preferences towards eco-friendly products in kirana formats at
Visakhapatnam and Hyderabad. Companies can identify a slightly lesser preference from
Hyderabad female customers compared to Visakhapatnam and have to sensitize them
towards eco-friendly products.
Figure - 5.19 Buying Preferences towards eco-friendly products – Males according
to Departmental stores
Analysis of the survey results:
It is observed from the Visakhapatnam Departmental stores that preference among the
male customers for eco-friendly products compared to Hyderabad customers is higher
with 70 per cent of them ‘mostly preferring’ them. Hyderabad males indicate they
‘mostly prefer’ at 40 per cent.
Inference of the Analysis:
It can be inferred that the responses from retailers from Visakhapatnam and Hyderabad
show a variation in the responses of departmental formats responses about preferences of
male customers. The companies can sell their products through the departmental formats
targeting men customers in Visakhapatnam more surely compared to Hyderabad.
Figure - 5.20: Buying Preferences towards eco-friendly products – Females
according to Departmental stores
Analysis of the survey results: There is variation among the female customer
preferences in Hyderabad Departmental stores, against that of Visakhapatnam. Females
from Hyderabad ‘mostly prefer’ eco-friendly products at 60 per cent level compared to
their counterparts at Visakhapatnam who prefer at 30 per cent.
Inference of the Analysis: Companies need to note that the buying preferences of
females in Visakhapatnam in departmental formats are the same in options like ‘always’,
‘mostly prefer’ and ‘not particular’ with 30 per cent in each. Departmental stores in
Hyderabad however indicate a higher preference with ‘mostly prefer’ option. Companies
need to take note of this while sensitizing the female customers about eco-friendly
products format wise.
Figure - 5.21: Buying Preferences towards eco-friendly products – Males according
to Super Markets
Analysis of the survey results:
As per the data taken from the formats, male customer preferences are higher in the Super
markets from Visakhapatnam at 80 per cent with ‘mostly preferring’ eco-friendly
products. Hyderabad male customers prefer 60 per cent eco-friendly products compared
to Visakhapatnam. It is also observed that the male customers ‘always prefer’ eco-
friendly products in both the cities. Again ‘not particular’ is an option that is given by
Hyderabad respondents alone.
Inference of the Analysis: It is observed from the analysis that super market formats
have specific target customers walking in it unlike the departmental and kirana formats.
Though persons with different demographic profiles come to the store, it is to be
investigated as to which customer finally purchases the eco-friendly products among the
males.
Figure - 5.22: Buying Preferences towards eco-friendly products – Females
according to Super Markets
Analysis of the survey results: Women customers who visit the Super Markets ‘mostly
prefer’ eco-friendly products at 60 per cent in Visakhapatnam and 40 per cent in
Hyderabad. Moreover, those who ‘rarely prefer’ are 60 per cent in Hyderabad compared
to 20 per cent in Visakhapatnam.
Inference of the Analysis: Women who prefer to buy eco-friendly products from Super
Markets in Visakhapatnam are higher compared to those from Hyderabad super markets.
It is observed from the analysis that super market formats have specific target customers
walking into the store unlike the departmental and kirana formats. Though persons with
different demographic profiles visit the store, it is to be investigated as to which customer
finally purchases the eco-friendly products among the females.
Figure - 5.23: Measures suggested to companies for improving promotion of eco
friendly products – Departmental Stores
Analysis of the survey results: From the above scales we find that Departmental stores
from Visakhapatnam are indicating up to 40 per cent, AB options and 20 per cent each of
the others - ABCD, ABD and ACD respectively. In the case of Hyderabad, departmental
stores have opted 20 per cent of AB, AC and ABC are the three preferred options. There
is a similarity in preferring AB of the options between Visakhapatnam and Hyderabad
departmental stores.
Inference of the Analysis: Option A indicates to increase credit sales on such products
between channel members and option B indicates to elaborately explain the dangers of
using products whose ingredients are harmful to the environment. Retailers from both the
cities have predominantly opted two options among others for promoting the sale of eco-
friendly products. Visakhapatnam departmental stores have suggested the same twice.
Figure - 5.24: Measures Suggested companies for improving promotion of eco
friendly products – Super Market
A. Increase Credit sales on such products between channel members i.e., among
(Manufactures wholesaler retailer)
B. To elaborately explain the dangers of using products whose ingredients are harmful
to the environment.
C. To elaborately explain the dangers of using products those have environmentally
harmful packing material.
D. To promote about the environmental issues in general to the public specifically
showing the advantages of using eco friendly products.
Analysis of the survey results:
Super Markets from Visakhapatnam indicated options ACD at 40 per cent, this is the
highest rated option compared to all others between the two cities. Retailers in Hyderabad
suggested an equal preference at 20 per cent for options like ACD, ABC, ACB, CD and
only B. There is some amount of dissimilarity as far as these options are concerned.
Inference of the Analysis:
Option A indicates to increase credit sales on such products between channel members
and option B indicates to elaborately explain the dangers of using products whose
ingredients are harmful to the environment. Retailers from both the cities have opted
predominantly above two options among others to promote the sale of eco-friendly
products.
Figure - 5.25: Marketing communication to increase the sale of Eco-Friendly
products – Super Markets
a. distributing pamphlets
b. advertising in local papers
c. creating specific shelves to Eco-Friendly products
d. others
Analysis of the survey results:
It is observed that there is variation in responses of retailers in Hyderabad and
Visakhapatnam super markets about the preferences in marketing communication
suggested to increase the sale of eco-friendly products. Results show that 60 per cent of
Visakhapatnam super market retailers opted to ‘creating specific shelves to eco-friendly
products’. Retailers from Hyderabad up to 80 per cent suggested ‘advertise in the local
news-papers’.
Inference of the Analysis: Skepticism by Hyderabad retailers for not opting creating
specific shelves shows that they are not still prepared for a matured customer.
Figure - 5.26: Marketing communication to increase the sale of Eco-Friendly
products – Kirana stores
a. distributing pamphlets
b. advertising in local papers
c. creating specific shelves to Eco-Friendly products
d. others
Analysis of the survey results: Kirana stores, 47.9 per cent suggest ‘distribution of
pamphlets’ over 41.1 per cent who prefer ‘advertising in local papers’. Between
Visakhapatnam kirana and Hyderabad, the difference is that the former support
advertising unlike the super market formats where reverse between the cities is observed.
Moreover the answers are found dissimilar between the cities.
Inference of the Analysis: Hyderabad kirana format prefer ‘distribution of pamphlets’,
this can be attributed to the cost risk involved in the alternative advertising option.
However, ‘creating shelves’ is not selected by any kirana respondent from Hyderabad.
Figure - 5.27: Marketing communication to increase the sale of Eco-Friendly
products – Departmental Stores
a. distributing pamphlets
b. advertising in local papers
c. creating specific shelves to Eco-Friendly products
d. others
Analysis of the survey results: The departmental stores indicate a similarity in their
responses as 53.3 per cent prefer advertising in local papers compared to 33.3 per cent
who prefer distributing pamphlets. Again it is observed that Visakhapatnam retailers
indicate creating specific shelves for eco-friendly products in the retail store as a point of
purchase promotional activity. There is a similarity in the answers form the departmental
stores from both the cities.
Inference of the Analysis: It has to be investigated reason about no formats did not
prefer the option of ‘creating specific shelves’ in Hyderabad city given the higher paying
power of customers and it being a metro.
Figure - 5.28: Influencing a consumer to buy Eco-friendly products for higher prices
– Kirana Stores
a. Show them the benefits of using eco-friendly products:
b. Support wisdom in taking eco-friendly products
c. Appraise the social responsibility of companies that are making eco-friendly
products
d. Others
Analysis of the survey results:
Kirana formats of both the cities gave similar answers at 55.9 per cent about ‘supporting
wisdom in taking eco-friendly products’. The next preference overall has been to
‘appraising the social responsibility of companies that are making eco-friendly products’
at 30.9 per cent and the last option at 13.2 per cent for showing the customers the
‘benefits of using eco-friendly products’.
Inference of the Analysis:
Though only slight variations between the cities is observed in responses, companies can
make plans to substantiate the first preference given by the retailers ‘supporting wisdom
in buying eco-friendly products’ and the second preference of ‘appraising companies
about their social responsibilities for eco-friendly products’. An important cue is that the
retailers are looking up to companies that genuinely mean their claims of an eco-friendly
product and secondly for information to be disclosed by the company that is convincing
enough to the customer about the sale of the product. The role of companies is paramount
in this connection. This is discussed subsequently in Chapter VII.