PARADIGM OF 1s’’

1 Customer buys 1 SKU from 1 Sq.

ft. in 1moment
 RETAIL IS DETAIL
• - It implies a first hand transaction with the
customer.
• -It implies direct interface with the customer & co-
ordination of business activities from end-to-end.
• -Each customer has to be delivered a magic of
moment, each SKU has to be a part of range
plan,each sq.ft. has to deliver the GMROI.
 FEW OBSERVATIONS
• Organised sector likely to be Rs. 160,000 crore by
2005.
• These growth opportunities have attracted global
majors like M&S, Samsonite, Swarvski, Dominos
to name a few.
• - Retailing in India is poised to grow at an
exponential rate.
• Retail business in yr. 2000- Rs. 400 Crore,
estimated to go to Rs. 800 Crore by yr. 2005.
• Consumers will emerge as the emperors with their
discerning buying attitude and increasing
purchasing power.
• Many manufacturer may take to retailing
themselves to be closer to the customer.

THEREFORE THE POWER OF THE CONSUMER AS WELL AS

THAT OF THE RETAILER IN MARKETING CHANNEL THAT WILL
SPEARHEAD THE GROWTH OF RETAILING IN INDIA
 TRENDS IN RETAILING
Basic department stores and cooperatives of early
20th century have given way to Mass
Merchandisers,Hypermarkets, Category killers,
Convenience stores.
3 PHASES OF ORF
• Retailers decide on category and quality of products and services.
Eg Supermarkets, deptt stores, specialitystores
• Retailers carve niche based on product category & price
Eg discount stores
• Retailers compete on price & product range, lack in product
depth & service components eg hypermarkets
Globally organised retailing has brought radical benefits &
helped the consumers to be king.
Three factors influencing how consumers will shop are-
1.CROSS BORDER MOVEMENT
2. CONSOLIDATION
3. MIGRATION OF FORMATS
 INDIAN RETAILING- key
drivers
Pre- Liberalization Supply- led market- Power rested with manufacturers.
Demand- led market- Consumers call the shots

CONSUMER PULL- Haves (HIS) &Less Haves (MIS,LIS)

INCREASING DISPOSABLE INCOME

MEDIA EXPLOSION

-
 INDIAN RETAILING- key
drivers
CONSUMERISM CYCLE

ENTRY OF CORPORATE SECTOR

CHANGE IN SCALE OF OPERATIONS

BUILDING CHAINS AROUND BRANDS

 PROJECTED TRENDS
• Nation of shopkeepers with largest density of
retail outlets.
• Online retailing is miniscule but industry is
evolving
• More outlets on basic MOM - & -POP store
formats
• Increase of outlets from 0.25 million (1950) to 12
million today, translating growth over 48 times
 GROWTH OF ORGANISED
RETAILING
OR in India will soon be catapulted through stages of its
growth to its culmination in maturity.

Four Gear Paths for organised retail trade suggested by KSA

Technopack places india in the second gear & predicts that
it will match global standards by 2010.
 FOUR- GEAR PATH
Stage of infancy

Meeting customer expectations

Shift in power equation between manufacturer &

retailers

Period of consolidation.
 CONSUMER BEHAVIOUR IN
RETAIL CONTEXT
While the term consumer seem to indicate singular
concept of demand, reality is there is a wide
diversity of Consumer behaviors with decisions
made for a range of reasons
 CONSUMER BEHAVIOUR IN
RETAIL CONTEXT
Retail consumers need to be understood because—
-They are problem solvers, deciding on what offer
satisfies their needs. Promotions & other activities
Should be designed accordingly.
-Consumers seek to reduce perceived risk. Retailers
should provide sufficient informaton & assurance.
 CONSUMER BEHAVIOUR IN
RETAIL CONTEXT
Retail consumers need to be understood because—

-Consumers shop for variety of reasons. Complexity

of the shopping trip per se need to be understood

-Demographic & other changes have impact on

purchasing patterns.
 RETAIL BUYING PROCESS
NEED AROUSAL

NEED RECOGNITION

INVOLVEMENT LEVEL

INFORMATION SEARCH &

IDENTIFICATION OF ALTERNATIVES
RETAIL BUYING PROCESS
EVALUATION OF ALTERNATIVES

DECISION

PURCHASE ACTION

POST PURCHASE BEHAVIOUR (PPB)

 INFLUENCES ON THE
CONSUMPTION PROCESS
ENERGISERS OF DEMAND

FILTERERS OF DEMAND

EFFECTERS

ROLES

)
 MOTIVATIONAL FORCES—THE
NEED & INVOLVEMENT STAGE
Tauber suggested shoppers utilise 6 categories of personal motivation

ROLE PLAYING
DIVERSION
SELF-GRATIFICATION
LEARNING NEW TRENDS
PHYSICAL ACTIVITY
SENSORY STIMULATION

)
Shopping activities are also characterised by these social motives –
-Social experiences outside home
-Communicating others having similar interest
-Peer group attraction
-Pleasure of bargaining
- Status & authority

)
Patronage of a RO are likely to be based on certain motives–
-Convenience
-Reputation
-Retail environment characteristics
-Service encounter expectations
-Expectations of the merchandise
-Expectations of value

)
 IN A FLASH
Consumer Behaviour will provide useful insights into
the process & therefore is useful in RM decision making.

- Growing consumerism is likely to pave the way for greater

consumer orientation & consumer enlightment.

- Growth of retailing will continue to be fuelled by the consumer, his

expectation & demands for more value.
 IN A FLASH
- Shopping activities are characterised by the following social motives-
- Social experiences outside the home.
- Peer group attraction.
- Status & authority.
- Pleasure of bargaining.

- Consumer’s emphasis will shift from product- based to experience- based

shopping.