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