CHAPTER-I

INTRODUCTION

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1.2.1 PROVISIONAL STORES

A provisional store is a retail shop that primarily sells food, either fresh

or preserved. Large grocery stores stock significant amounts of non-food products,
such as clothing and household items, blurring the line between provisional store
and supermarkets.

Today’s stores offer a great variety of merchandise for the convenience of their
customers, but in the 1800’s merchants sold the items they could obtain and resell.
These provisional stores served rural population of small towns and villages, and
the farmers in surrounding areas. They offered as a place where people could find
food and necessities that would have otherwise been difficult to obtain.

In addition to goods, a provisional store offered a meeting place for isolated

people to socialize and do business.

During the first part of the century, these stocked necessities, but as the economy
prospered after the Civil War, more and more luxury items. The shopkeepers
purchased from salesmen who represented large wholesale houses and
manufacturers located in larger cities and seaside ports.

At first, only locally produced perishable goods were sold in the provisional store,
but with the expansion of railroads, the advent of mass production, and
technological advances such as the refrigerated boxcar, the local shopkeeper could
display goods from all over the country.

Most of the items to be found in a general store would be familiar. Food and
consumables included coffee beans, spices, baking powder, tropical fruit, hard
candy, eggs, syrup and dried beans, fruits and vegetables, flour, sugar.

When money was scarce, the shopkeeper might extend credit to a regular
customer or accept payment in any other kind for example bartering.

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DIGITAL MARKETING

Digital marketing is the use of internet , mobile devices, social media, search
engines, and other channels to reach customers . Its development during the 1990s
and 2000s, changed the way brands and businesses use technology for
marketing. As digital platforms became increasingly incorporated into marketing
plans and everyday life, and as people increasingly use digital devices instead of
visiting physical shops, digital marketing campaigns have become prevalent,
employing combinations of search engine optimization (SEO), search engine
marketing (SEM), content marketing, influencer marketing, content automation,
campaign marketing, data-driven marketing, e-commerce marketing, social media
marketing, social media optimization, e-mail direct marketing, display
advertising, e–books, and optical disks and games have become commonplace.
Digital marketing extends to non-Internet channels that provide digital media,
such as television, mobile phones (SMS and MMS), and on-hold mobile ring
tones.

In the 1990s, it was termed as digital marketing,. With the increase in popularity

of personal computers, the Customer Relationship Management (CRM)
applications became a significant factor in marketing technology.

In the 2000s, with increasing numbers of Internet users and the birth of iphone,
customers began searching products and making decisions about their needs
online first, instead of consulting a salesperson, which created a new problem for
the marketing department of a company. In addition, a survey in 2000 in the
United Kingdom found that most retailers had not registered their own domain
address. These problems encouraged marketers to find new ways to integrate
digital technology into market development.

Digital marketing became more sophisticated in the 2000s and the 2010s,
when devices' were capable of accessing digital media led to sudden
growth. Statistics produced in 2012 and 2013 showed that digital marketing was
still growing.

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Digital marketing is also referred to as 'online marketing', 'internet marketing' or
'web marketing'. The term digital marketing has grown in popularity over time. In
the USA online marketing is still a popular term. In Italy, digital marketing is
referred to as web marketing. Worldwide digital marketing has become the most
common term, especially after the year 2013.

1.2.2 EVOLUTION OF DIGITAL MARKETING

In 1993, digital marketing achieved his first milestone through the introduction of
clickable banners. Later HotWired Company purchased banner ads to advertise
through the web. This marked the beginning of the online advertisement.

In 1994, Yahoo established the first search engine and people started using the
Yahoo search engine to look for information on the web. After a year of its
launch, more people were using Yahoo to access information. Companies started
optimizing their web pages to increase their rank in the search engine. Amazon E-
commerce site was established in 1994 whereas eBay site was established in 1995.

Increased use of search engine optimization led to the launch of other search
engines like HotBot, Alexa, and LookSmart in 1996.

During this time, marketing professionals started using Search engine

optimization, SEO to ensure their website content appears on the top results of the
searched information. SEO techniques like keyword stuffing and backlinks were
commonly used to increase site rankings.

In 1998, Google was established. This is another search engine Company and over
the years, it has become the most popular search engine across the globe. Google
started penalizing sites using backlinks and keyword stuffing to create traffic with
the establishment of the Google algorithm.

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During the year, Microsoft launched MSN search engine whereas Yahoo
introduced Yahoo web search.

The year 2000, saw the wipeout of the smaller search engines. Many internet
startup companies were also closed down. Businesses which took time in studying
the market leverage on the use of the internet to improve their businesses.

Google established AdWords in 2000 to help marketers in advertising their

products and services. The google ads became a major player in the digital
marketing world and improved sales of businesses.

Web 2.0 was also established which opened many doors for digital marketing
channels. Interactive websites were also established which enabled marketers to
publish dynamic content and allow the target audience to interact with the site.

2001 led to the birth of the first mobile marketing campaigns.

In 2002, the LinkedIn professional network was established to help business

interact with other business associates and target audience.

The Launch of MySpace social network site in 2003. After a year Gmail, Google
Docs, and Facebook went live. The new sites opened doors for promoting
companies’ products and services online. Many companies took advantage of the
new social network site to create awareness of their products and services.

YouTube was launched in 2005 to fill the gap between creating and sharing
videos.

In 2006, the search engine traffic increased to 6.4 billion in a month. Twitter and
Ms. Live Search were also launched. The Amazon’s e-commerce sales also
reached $10 billion.

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In 2007, various web streaming services like Hulu were established. Tumblr social
network was also established increasing the number of channels digital marketers
can use. iPhone smartphone was also established by the Mobile Giant Apple
leading to an increase in mobile marketing campaigns.

To keep up with competition, Google launched real-time search engine results in

2009. Google AdWords and AdSense cost-per-click advertising techniques
became more popular. The Google algorithm started to target ads based on
customers search making it the most used digital marketing scheme.

The year 2010 saw the launch of WhatsApp and Google Buzz.

In 2011, Google launched Google+ and Google Panda to facilitate page

optimization. People connect and interact with each other through Google+.

In 2012, companies increased their budget for social media marketing campaigns
by 64%. Social media sites like Facebook and Myspace were commonly used by
businesses to promote and engage the target audience.

Yahoo acquired the Tumblr platform in 2013.

2014 saw the increased use of a smartphone in accessing the digital technology.
More people downloaded Facebook messenger app to connect rather than using
PC to access Facebook. More Facebook ads and LinkedIn were customized for
mobile use. At the same year, Facebook also acquired WhatsApp mobile app.

In 2015, more digital technologies evolved. The Snapchat application launched its
own discover feature to enable users to connect with more friends and followers.
Facebook also introduced Instant articles as well as the launch of wearable tech.

Facebook, Instagram, Snapchat, YouTube, Twitter, and Reddit are the most
commonly used social media networks in 2017 and 2018. There over 3 billion

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Facebook users daily and business leverage on the use of these sites to reach to a
wide customer base.

(Source: Internet)

Graph 1.1 Internet users in the world

1.2.3. How digital marketing works?

Digital marketing is vital for modern businesses because the internet plays a
significant role in how today’s consumer makes purchasing decisions. The
internet also impacts how consumers actually purchase their products and
services. This makes it imperative for businesses to not only be present online but
to boost visibility as much as possible.

It’s important for business owners to understand how digital marketing works so

that they can make smarter decisions about their digital marketing campaigns.

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Website Marketing:

The company’s website is the cornerstone of digital marketing strategy. This is

where many of your target customers get a impression on the brand.  This means
creating a site that is easy to navigate and read with clear guidance for the next
steps to the consumers. This also means creating a site that optimized for mobile
devices to improve the mobile user’s site experience.

Search Engine Optimization

Search engine optimization also plays a big role in how digital marketing works.
Search engine optimization is the process of optimizing your site’s content so that
it appeals to the search engines. The end goal is to rank higher on the search
engine results page (SERP) to increase visibility in your target market. Search
engine optimization not only brings more traffic to website, but it also helps
ensure that the leads are of a higher quality. The goal of digital marketing is to
attract those who are right for your products or services, and SEO plays an
important role in doing just that.

Content Marketing

Content marketing is essential when business creates and promotes certain content
assets that are aimed at attracting and engaging your target customers. These
content assets can be created for a number of different purposes, including
generating brand awareness, growing site traffic, boosting leads, or retaining
customers.

The different types of content marketing are:

 Website pages

 Blog posts

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  Social media posts

 E-books

 White papers

 Case Studies

 Testimonials

 Images

 Info graphics

 Podcasts

Social Media Marketing

Most brands today are using social media marketing to support their digital
marketing campaigns and drive more traffic to their website. Social media
marketing involves promoting your content and engaging with your target
consumers on social media channels like Facebook, Instagram, LinkedIn, and
Pinterest. This tactic is used in digital marketing to help businesses increase brand
awareness, generate more leads, and improve customer engagement.

PPC Advertising

PPC ads are a type of advertising that involves paying the ad publisher every time
a new lead clicks on your ad. PPC ads not only generate more traffic to your site,
but they can help you ensure that the leads you are getting are qualified. Those
who are clicking on your PPC ads are consumers who are searching for the topics
that are most relevant to your products or services. This means that they are more
likely to be interested in your brand and the products or services that you provide.

Email Marketing

Companies can use branded emails to communicate with their target audience.
Marketing emails are often used as a way to increase brand awareness, establish

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industry leadership and promote events. The content of your marketing emails

will ultimately depend on your campaign goals.

Here are a few examples of how e mail marketing can be used:

 Send a welcome email when new users subscribe to your marketing email

list letting them know what they can expect to see from your brand emails.

 Deliver promotional content about upcoming sales and discounts straight

to the consumer’s inbox.

 Develop a newsletter that goes out to subscribers periodically to deliver

the latest content and company updates from your business.

 Email leads after they have downloaded content from your site to thank

them for their interest and even recommend additional relevant content

pieces

Integrated multi-channel marketing is an approach to marketing that combines all

the digital marketing toolbox to create an excellent experience for target audience.
By using marketing messages across digital platforms we can create a more
unified brand message and improve the success of every campaign – this how
digital marketing works.

 The content marketing that you create on your site like your site pages and

blog posts help improve search engine optimization, thus helping you

drive more organic traffic back to your website.

 When you share links to pieces of content on your social media channels,

you can work to drive further traffic back to your site. Strategic social

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 messages can even help influence direct conversions once the user arrives

at your site.

 As you develop email marketing content, you can find new ways to lead

readers back to the relevant areas of your site. Include calls-to-action

throughout the body text and links to specific landing pages that will help

guide the reader on to the next step in the buyer’s journey.

1.3 Objectives of digital marketing

1.3.1 Increase Sales

Increasing sales or leads is a top level digital marketing objective for many
businesses. Growing sales is ultimate objective of every business.

A digital marketing strategy must include as how sales will be increased, what
tactics and channels will be used, how much budget will be required and how
results will be measured.

1.3.2. Generate leads using digital marketing

Digital marketing can play important role in lead generation. It can be used to
drive more traffic on website using SEO, Google ads, Facebook ads to generate
more leads. Leads generation can also be improved by using content marketing
and lead magnets and marketing automation techniques to further nurture leads.

1.3.3. Increase organic search traffic

Getting free traffic from Google using SEO is one of the best ways to create
awareness, generate leads and increase sales. SEO is the backbone of digital
marketing.

Growing organic traffic on blog or website can be one of the digital marketing
objectives which can reduce cost per acquisition and also create long-term online
visibility.

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1.3.4. Increase brand visibility
Digital brand building is also one of the most important part of digital marketing
objectives. Digital branding can help business increase sales and also grow
organic traffic, increase faster conversion and build online reputation.

Social media marketing, digital PR and video marketing (YouTube Videos) can be
used to increase brand visibility.

Digital display advertising and digital video ads can also help in online brand
building.

1.3.5. Reduce cost per customer

Reducing cost per customer can be a digital marketing objective. Brands can use
various techniques like conversion rate optimisation, marketing automation and
programmatic display advertising to reduce cost per customer.

1.4 Limitations of digital marketing

.
1.4 1. Online Marketing

Online Marketing as people allegedly say does not happen to be of free of cost,
there are a lot of things that adds to the cost of internet marketing and they are not
at all cheap. Some of the major expenses are the cost of hardware, software, wed
site designing, online content and product distribution costs, maintenance of the
site as well as server, web hosting of the website and the costliest thing is time, all
of these must be considered while planning for Internet Marketing budget and
strategies.

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1.4.2 Conventional Marketing
Where conventional marketing helps in spreading awareness as well as selling, the
internet is considered as a medium to gain information to most of the customers.
There are still many industry and areas where internet marketing is incapable of

generating a trust and sale of the product or the service. There are still lots of
fields where people prefer the live interaction when they buy.

1.4.3 Access to Internet

Still, 50% of the world does not have access to the internet and there are many such
areas where people are not even literate enough to access the internet. This is a major
limitation for internet marketing in the current scenario.

1.4.4. Cyber Crimes

Cyber Crimes are increasing day by day as well as the scams. The rules if cyber
security are still not that secure and that leaves a fear in the mind of the people

and leaves internet marketing vulnerable.

1.4.5. Internet Marketing

Internet marketing faces a major current as well as the future issue of “infollution”
– the issue of distracting and old data on the internet. There are lots of websites
that are decades old and no information is updated on it from a long time. If a
customer relies on it and makes a decision, there is a high chance that it can lead
to some trouble. This thing is not an issue in conventional marketing as people

timely update things in the real world. Whereas there is no such filter available in
the virtual world.

1.4.6 Secure your Website

One major issue and an important question is that “is your website safe?” In
internet marketing it is very easy for competitors to attack your website and put in
some hack in it, there are a lot of such examples where competitors tried and also
succeeded in damaging the brand image via some online hack or negative attacks.

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1.4.7. Internet Marketing
One of the major reason why conventional marketing is not affected that much
from Internet Marketing is good old fashioned customer service. The majority of
online marketers fail to deliver ideal response programs as well as customer
service. There are thousands of website live which has no customer care service
and still are running. But, the word travels really fast in this virtual world and if a
website fails to deliver desired customer service to even a single customer, there is
a high possibility that the customers will spread out a negative word in the
industry and news no matter genuine or fake, travels faster in the virtual world.

1.4.8. Marketing Strategy

One major benefit of Conventional marketing is that it is not that easy to imitate a
conventional marketing move. It takes the time to do that and in the meanwhile,
the initiative taker gets the benefit of risk. But, if we talk about internet marketing,
there are a lot of instances where one successful strategy will be copied in less
than 24 hours by your competitors. Thus, you fail to get the desired benefit.

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CHAPTER II
PROFILE OF ORGANISATION AND
RESPONDENTS

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2.1Digital Marketing

Digital marketing is the component of marketing that utilizes internet and online
based digital technologies such as desktop computers, mobile phones and other
digital media and platforms to promote products and services. Its development
during the 1990s and 2000s changed the way brands and business use technology
for marketing. As digital marketing became increasingly incorporated into
marketing plans and everyday life, and as people increasingly use digital devices
instead of physical shops, digital marketing campaigns have become prevalent,
employing combinations of search engine optimization (SEO), search engine
marketing (SEM), content marketing, influencer marketing, e-books. Digital
marketing extends to non-internet channels that provide digital media, such as
television, mobile phones through SMS and MMS, callbacks, on-hold mobile ring
tones.

Ease of access:
A key objective is engaging digital marketing customers and allowing them to
interact with the brand through servicing and delivery of digital media.
Information is easy to access at a fast rate through the use of digital
communications. Users with access to the Internet can use many digital mediums,
such as Facebook, YouTube, Forums, and Email etc. Through Digital
communications it creates a multi-communication channel where information can
be quickly shared around the world by anyone without any regard to who they
are. Social segregation plays no part through social mediums due to lack of face to
face communication and information.

2.2Reasons why Digital Marketing is Important

2.2.1 Equal Opportunity for all kinds of businesses

DM levels the online playing field and offers equal opportunities for all kinds of
businesses. It is no more like the old days scenario when multinationals and big
business houses mostly embraced Digital Marketing. Now, DM really evens the

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odds, giving little and medium businesses the opportunity to compete against the
established businesses and draw in their share of traffic.

 Small and medium scale businesses or startups now have the assets to
perform sales and marketing processes that were beforehand accessible to
big companies by now knowing the difference between sales and
marketing
 While thinking of the importance of Digital Media Marketing, the most
noticeable benefit is its ability to engage with multiple customers without
using call centre services.
 Even the conversions associated with DM rank higher than other modes of
marketing and communications

2.2.2 Digital marketing is more cost effective than

Traditional Marketing

Small businesses with no assets and capitalization will want more cost effective
marketing hence they choose digital marketing over traditional marketing.

According to Gartner’s Digital Marketing Report up to 40% of respondents

claimed getting considerable savings by using digital marketing methods of
promotion for their products and services.

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(Source: Internet)

Graph 2.2 Impact of digital marketing over traditional marketing

2.2.3 Facilitates Interaction with Targeted Audiences

One reason why internet marketing is assuming control over conventional

marketing channels is the capacity of Digital advertising methods to cooperate
with target audiences and ensure result driven interactions. The role of Digital
Marketing is to ensure that the engagements that your clients hope to get while
interacting with your business.

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 Facilitating your clients with legitimate engagement can give you
knowledge of what your prospects need.
 This indispensable data will control you towards making the correct
arrangement of next moves, give your clients far superior experiences and
grow great associations with them.
 This will let you develop the needed trust building with your audiences
when your business starts to grow.

2.2.4 Digital marketing Caters to the Mobile Consumer

Undoubtedly, mobile internet will be next wave of information

dissemination and communication channel, brought about by the rapid
proliferation of Smartphone, tablets and other internet-enabled devices.
These mobile devices have became a central part of American life that
91% of adults in the United States have their devices within reaching
distance.

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(Source: Internet)
Graph 2.2 Increase in the number of mobile users

2.2.5 Builds Brand Reputation

The power of digital marketing lies in the ability for attracting targeted audience.
These types of audiences for your content are most likely already ready to know
more about your brand, product or services and maybe interested enough to
purchase what you have to offer. Delivering to what you promise will help you
develop a better relationship with your targeted audiences, help them transition
into paying customers that will go back and interact with your site some more- on
a regular and continuous basis.

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2.3 Online Shopping

Online shopping is a form of e-commerce which allows consumers to directly buy

goods from a seller over the internet using a web browser. Consumers find a
product of interest by visiting the website of the retailer directly or by searching
among alternative vendors using a shopping search engine, which displays the
same product's availability and pricing at different e-retailers. As of 2020,
customers can shop online using a range of different computers and devices,
including desktop computer, laptops, Smartphone, smart speakers.

Growth in online shopping

As the revenues from online sales continued to grow significantly researchers

identified different types of online shoppers, Rohm & Swaninathan  identified
four categories and named them "convenience shoppers, variety seekers, balanced
buyers, and store-oriented shoppers". They focused on shopping motivations and
found that the variety of products available and the perceived convenience of the
buying online experience were significant motivating factors. This was different
for offline shoppers, who were more motivated by time saving and recreational
motives.

2.4 Online Grocery

An online grocer is either a brick-and-mortal supermarket or grocery store that

allows online ordering. There is usually a delivery charge for this service. Online
grocery delivery services are available throughout Europe, Asia and North
America, mostly in urban centres. The online ordering is done through e-
commerce websites or mobile apps.

2.4.1 In-store pickup

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For brick-and-mortar stores that have online ordering, customers can place orders
online and picking up their ready orders in the store on their way home. In-store
pickup is usually one day shopping; it is usually less expensive than delivery, and
can be done at a time of the customer's choosing. This option is popular in rural
areas. It is also useful for customers living outside of the store's local delivery
area.

2.4.2 Local Delivery

Most local online grocers have their own drivers. The most common type of
personal delivery involves storing grocery inventory in a warehouse to deliver to
customers once orders are placed. Another type of personal delivery which is less
common is based on just-in-time business in which there is no warehouse
or inventory. In this type of delivery, customers place orders for next-day
delivery. The online grocer shops for the groceries on the morning of the delivery
day.

Online-only grocers typically have warehouses or distribution centres nearby, to

allow local shipping of refrigerated items.

Online grocers with a large regional or national delivery area may ship groceries
using courier services. If the order contains cold or frozen items, this involves
"flash freezing” the goods and pack them into special shipping containers.

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GROFERS

Grofers is an Indian online grocery delivery service. It was founded in December

2013 and is based out of Gurugram. As of 2018, the company has raised about

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$535.5 million from investors including SoftBank, Tiger Global and Sequoia
Capital.

Customers of the company use a mobile application to order groceries online.

Grofers employees then secure the items from their warehouse and deliver the
items to the consumer. The delivery may be scheduled for any time of the day.

Grofers currently operates in 28 cities

namely Delhi, Mumbai, Bangalore, Pune, Jaipur, Chennai, Hyderabad, Kolkata, L
ucknow, Aligarh, Agra, Ahmedabad, Gurugram, Noida, Ghaziabad, Kanpur,
Faridabad, Meerht, Rohtak, Bhiwadi, Moradabad, Sonipat, Guwahati, Panipat, Du
rgapur, Vadodara, Allahabad and Modinagar.

2.5 Offline grocery stores

Offline store or grocer’s shop is a retail shop that mainly sells either fresh or
preserved food. Large grocery stores stock significant amounts of non-food
products, such as clothing and household items, blurring the line between grocery
stores and supermarkets.

2.6 Different types of grocery stores

2.6.1 Small format
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Convenience store

A convenience shop is a small store that stocks a range of everyday items such as
groceries, snack foods, candy, toiletries, soft drinks, tobacco products, and
newspapers. They differ from general stores and village shops in that they are not
in a rural location and are used as a convenient supplement to larger shops.

Delicatessen

A delicatessen store is a type of food store where fine foods are sold. In this sense,
the name is often abbreviated to deli. The term delicatessen means "delicacies" or
"fine foods". In English, "delicatessen" originally meant only this specially
prepared food.

Greengrocer

A greengrocer is a retail trader in fruit and vegetables; that is, in groceries that are

mostly green in colour. Greengrocer is primarily a British and Australian term,
and greengrocers' shops were once common in cities, towns and villages.

Health food store

A health food store is a type of grocery store that primarily sells health

foods, organic foods, local produce, and often nutritional supplements. Health
food stores typically offer a wider or more specialized selection of foods than
conventional grocery stores for their customers, such as people with special
dietary needs.

2.6.2 Large format

Supermarket

A supermarket, a large form of the traditional grocery store, is a self-

service shop offering a wide variety of food and household products organized.
The supermarket comprises meat, fresh produce, dairy, and baked goods aisles,
along with shelf space reserved for canned and packaged goods as well as for
various non-food items such as kitchenware, household cleaners, pharmacy
products and pet supplies.

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Hypermarket
A hypermarket is a superstore combining a supermarket and a department store.
The result is an expansive retail facility carrying a wide range of products under
one roof, including a full groceries line.

2.7 SWOT ANALYSIS OF DIGITAL SHOPPING

2.7.1 Strengths

1. Product Range: It offers a huge range of products which stretches to about

18000 products.
2. Exotic Range: It also offers exotic fruits, vegetables and imported groceries
which are not easily available in nearby retail outlets. This gives them an
edge in catering to customers who like buying such stuff.
3. Discounts: It offers huge discounts on various products.
4. Convenience: it offers an escape from the hassle of standing in the queues
of malls or going all the way to the retail stores. They give the products
right at the door step and offer multiple payment options. Customers,
especially in big cities where life is very fast and it is difficult to reach the
customers, can shop at any time of the day.

2.7.2 Weakness

1. Delivery Time: It delivers the groceries the next day. Many retailers have
started the facility of home delivery to nearby societies and customers in
just few minutes to hours. So customers prefer this instead of waiting for 24
hours.
2. High Variable Cost: Cost of running many delivery guys, delivery trucks,
storage for perishable items, wastage during transportation makes the

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 business run at a high variable cost. They have to bleed more money and
will take longer to break even.
3. Minimum order quantity/price compulsion: Big Basket does not offer
home-delivery below a certain set order price limit. This means that
customers would be forced to add a product or two just to avail the service.
This makes them lose a customer.

2.7.3 Opportunities:

1. Market: Indian retail market is valued at more than approx. $550 million

and grocery alone covers 60% of this share. Hence it’s a huge market with
many online groceries websites.
2. Grocery Growth: India is the 6th largest grocery market in the world. E-
commerce grocery market is growing with a year on year growth rate of
19%.
3. Expansion: Many cities are still not covered by these start-ups and Grofers
can target them and gain the first movers advantage. They can expand to
tier-2 cities and increase their market.

2.7.4 Threats:

1. Competition: It has small presence in terms of cities covered hence, it is

getting a huge competition from other start-ups like PepperTap, Nature’s
Basket, Zop Now, Aaram Shop, Mera Grocer, etc.
2. Bigger Players: Larger companies like Amazon, Flipkart and Google have
also entered this industry. This may prove fatal for smaller start-ups like
Grofers to compete with them.
3. Smaller Players: Many other localized shops have picked up on this trend
and have started home delivery service to nearby customers thereby killing
groups of target customers across regions and cities.
4. Customer Retention: It is very difficult to retain customers. They would
tend to move with the service provider that offers the most discounts.
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CHAPTER-3

REVIEW OF LITERATURE AND RESEARCH

DESIGN

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3.1 Review of literature

Online or web shopping is a type of electronic trade which permits purchasers to

specifically purchase merchandise or administrations from a dealers over internet
utilising a web program. Elective names are: e-web-store, e-shop, e-store, internet
shop, web-shop, web-store, online store, etc. an online shop inspires the physical
similarity of purchasing items or administrations at a block and mortar retailer or
strip mall. The procedure is called business-to-shopper internet shopping.

3.1 Importance of provisional stores

Easy To Reach: Grocery store are located in an area that are within the reach of
the customers.

Economic Boost: Stable revenue system causes the grocery store to provide more
jobs and opportunities to engage in the earning activities.

Cost of the Store: It doesn't cost too much for opening a grocery store.

Franchise Availability: People have earned a lot by taking a franchise from

various company. Also, there are lot of opportunities available in the groceries
where you can take franchise.

3.2. Advantages of online shopping:

a. Convenience: Online stores are normally accessible 24 hours a day,

and numerous shoppers have Internet access both at work and at
home.
b. Data and surveys: online stores must portray items available to be
purchased with content, photographs, and sight and sound
documents, though in a physical retail location, the real item and the
producer’s bundling will be accessible for direct assessment.
c. Cost and choice: One point of preference of shopping online is
having the capacity to rapidly search out arrangements for things or

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 administrations given by a wide range of sellers. Web indexes,
online value correlation administrations and revelation shopping
motors can be utilized to turn upward venders of a specific item or
administration.

3.3 Disadvantages of online shopping:

a. Misrepresentation and security concerns: Given the absence of

capacity to examine stock before buy, purchasers are at higher
danger of extortion than eye to eye exchanges. Shippers likewise
hazard false buys utilising stolen Mastercards or fake renouncement
of the online buy.
b. Absence of full cost exposure: The absence of full cost exposure
may likewise be hazardous. While it might be anything but difficult
to think about the base cost of thing on the web, it may not be
anything but difficult to see the aggregate expense in advance.
c. Security: Security of individual data is a noteworthy issue for a few
buyers. Numerous buyers wish to maintain a strategic distance from
spam and telemarketing which could come about because of
supplying contact data to an online vendor. Accordingly, numerous
dealers guarantee to not utilise customer data for these reasons.

3.4 Provisional stores are evergreen

The humble kirana store or provisional stores has proved extremely durable and

digital-resistant.

These stores have not only survived the supermarket or large format retail chains
then, and e-commerce now, they are also thriving. A couple of factors keep them
evergreen and relevant.

One is the ease of access. Two, is their ability to sell the most locally relevant
assortment of goods for their customer base. You can’t beat a provisional store’s

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knowledge of what the local community consumes. It not just the variety of local
produce they sell. The provisional shops usually provide free delivery in less than
an hour with a handy credit facility for regular customers.

Close to 12 million of these small stores dominate India’s grocery retailing. And
despite the storied expansion of organised, modern retail and the arrival of e-
commerce, provisional stores are the lifeblood of Indian consumption with a 96
per cent share of the grocery retail business.

So, rather than trying to ensure offline becomes online, and bet on the demise of
the provisional store we should do the exact opposite — empower the provisional
stores.

By modernising the provisional stores shops and ensuring that business becomes

better for them on the supply side and the consumer side, we will be ensuring that
both customers and business owners benefit.

There are ample technological solutions available to bring the unfancied

provisional store into the mainstream of the e-commerce revolution, which sadly
is restricted to a few big players right now.

The solution is more digitisation and hyper localisation of the provisional store,
app payment and back-end integration of the provisional store with the wholesale
suppliers to ensure the customer’s unmet needs are met at the right time. Mobile
applications which have the ability to scan and issue bills from a printer is the next
stage of evolution for the provisional stores in India.

We have to support the provisional stores network with their assortment for their
specific customer base as in India food habits change every 100 km.

Additional support can be provided by training them with assortment selection

and product placement within their stores to improve their margins.

Digitalisation is just step one for the modernisation and re-skilling of the
provisional store, there is much more the industry can do to ensure they thrive and
complement the online businesses.

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Wallmart has not introduced in India because price there is comparatively low
when compared to retail stores. This may affect the owners of the retail shops.

3.5 Difference between online and offline shopping

Online shopping Offline shopping

Online shopping as the name suggest in physical shopping if you want to buy
is done over internet and therefore you you have to go nearby mall or shop and
do not have stand in line or go then purchase the item you like from
anywhere from your home to purchase there.
the stuff you like
In online shopping one can look many In case of physical or traditional
products and that too multiple times shopping one does not have too much
without buying them and therefore it of choices as one has to buy the
offers lot of flexibility. product which is available at shop and
if that product is not available then
either you buy the product which is
your second choice or wait for that
product to come and then buy.
In Online shopping if one is buying in case of traditional shopping there is
products like shoes or clothes then one no such risk because consumer try it
cannot try the product before placing first and then buy and therefore there is
the order and therefore the chances of no scope of difference between actual
actual product being different from and perceived product.
perceived product is high.
Online shopping is transparent in the In physical shopping one does not have
sense that one can compare the price this luxury because the buyer has to
of product over different websites to purchase the product at a price which
ensure that he or she buys the product is quoted by seller as there is no way of
at cheapest price. finding whether the price quoted by
seller is fair or not.
In case of online shopping thousands In physical shopping this is not possible
of different products are available at and hence if you want to buy mobile
one place or website. and trousers then you have to go to 2

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Online shopping is used by people who
are tech savvy and therefore it is
mostly used by young people, however
in recent times middle age and older
age people too are getting used to it.
different shops as these product are
different and hence it leads to time
wastage.
physical shopping is done by old
people or by those who are not that
familiar with technology advancement
in e commerce and its benefits and
they consider online shopping risky
because of fear of fraud and unknown.

3.6 Importance of the study

This study is very much relevant to present times as this will make awareness
about the impact of digital stores upon retail stores. The sudden surge in online
shopping and customers have adjusted to it to a greater extent which it a real cause
of concern for the thousands of retailers who have a small shop offering a small
variety of products which are their source of livelihood. This study wants to
unravel the real scenario and also look into the threat that looms over the various
small scale retailers. In this study an attempt has been made so that retailers are
aware of the upcoming that is expected to loom over their business in the near
future so that they can appropriate arrangements to face such challenges.

3.7 Objectives of study

The research has been conducted with the following objectives:

1. To study the impact of profitability on provisional stores due to the
advent of e-stores
2. To analyze the impact of online shopping on provisional store business
pattern
3. To analyze the change in business pattern to achieve customer
satisfaction on provisional stores

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3.8 Scope of the study

 To use my skills in interaction with the owners of the provision store

 To know if the digital marketing has actually affected small provisional
stores

3.9 Methodology

Research methology comprises of the sources of data, methods adopted to collect

such data, sampling techniques, statistical tools for analysis, data interpretation
etc.

Sources of data- The data for the study have been collected from primary sources.
Primary data have been collected through- Direct Personal Interview method
where interview took place with the owners of different retail stores.

Universe of the study- The universe consists of all the retailers situated in selected
areas of Nagarbhavi, Bangalore from which a 10 retailers are selected at random
for the purpose of the study. Since most of the retailers are in the same field from
past 15-20 years they could find the difference after online shopping was
introduced.

Sample size and sample unit- For the study a sample of 10 retail stores has been
selected on the basis of convenient sampling for the purpose of the research.

Sampling Techniques- For the study convenient sampling technique method has
been applied on the basis of suitability for the availability of information and
which has a substantial share in the market so as to give more accurate picture of
the impact of online shopping.

Data collection techniques- The data for the study has been collected through
applying the following techniques: Direct Personal Interview.

Data Representation Tools- The data collected are classified tabulated and
represented through chart and bar diagrams.

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3.9 Limitations of the study

In spite of all sincere efforts, the study is not foolproof in nature. It suffers from
variety of limitation due to the following reasons:

1. The study is limited to selected area of Nagarbhavi, Bangalore only

2. Besides that, the detailed study has been conducted taking on 10
retail stores based on convenient sampling.
3. Data pertaining to the study has been collected for a period of only
3 years
4. Time is also a limiting factor as the study is conducted in a very
short span of time
5. Improper response from the shopkeeper during the survey. It is a
delimitation as owners were concerned about selling their products
than providing information.

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CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

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Retail stores generally operated in the traditional lines of business except a few
superstores that brought in certain modification in their business patterns, but the
advent of online shopping in recent times has put on upon them because they had
been losing on several ground. The study has been made on several grounds to
understand the aspects of impact upon the business of various retailers that to
some extent has led to a change in their strategies.

ANALYSIS OF DATA

(Questionnaire is mentioned in the annexure)

Question-1

Content Percentage Number

Yes 100% 10
No - -

percentage

yes
no

Graph 4.1 Aware of online shopping

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Aware of online shopping: Online is a platform that every provisional store
owner knows about. They are scared about taken over by online shopping.

Observation

From the above data we can see that all the provisional store owners knows about
online shopping and they even know how they are affecting their provisional
stores in terms of profits.

Interpretation

Here we can conclude that all the owners know provisional store owners and are
scared about being taken over by them.

Question-2

Content Percentage Number

Yes 80% 8
No 20% 2

Percentage

yes
no

Graph 4.2 Decrease in profit margin

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Profit margin: Online shops has brought in a price war in the market and the
main sufferers of this price war are the retailers. In order to survive, most of these
retailers too has made an attempt to lower their prices but considering their high
cost of operation these retailers has to sacrifice on their margin

Observation

From the above data we can conclude that 80% of the retailers find that there is a
decrease in profit margin in past 3 years. Only 20% find that there is no decrease
but the profit margin is stagnant which can be considered as a warning for
decrease in profit margin in future.

Interpretation

Hence we can conclude that most of the retailers find online purchase has led to
decrease in profit margin.

Question-3

Contents Percentage Numbers

Yes 70% 7
No 30% 3

Percentage

yes
no

Graph 4.3 Decrease in average turnover

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Turnover: Retailers over a period of three years under study has noticed a
considerable decline in their turnover as compared to years back. Some has
reported if not decline but stagnancy in their growth which is a warning signal for
the enterprise.

Observation

From the above data we can conclude that 70% of the retailers find that there is a
decrease in average turnover in past 3 years. Only 30% of retailers find there is no
decrease in average turnover, it is either stagnant or increasing.

Interpretation

Hence we can conclude that 70% of the respondents find that there is a decrease in
average turnover in past 3 years.

Question-4

Contents Percentage Numbers

Yes 60% 6
No 40% 4

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 Percentage

yes
no

Graph 4.4 Increase in discount rates

Discount: The retailers are at an alarming rate increasing their discounts in order
to stand with the online stores who woes the customers with unbelievable
discounts. Although the retailers cannot compete with the online stores in terms of
discount but it has to lower its prices to a relative extent to survive the market.

Observation

From the above data we can conclude that 60% of retailers are offering additional
discount rates to the customer to retain the customers. Only 40% of the retailers
are not providing any additional discounts to the customers. They find that they
this will lead to reduction in profits.

Interpretation

Hence we can conclude that, many retailers are providing additional discount rates
to the customers to retain them.

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Question-5

Contents Percentage Numbers

Yes 70% 7
No 30% 3

Percentage

yes
no

Graph 4.5 After-sales service

Personalized after-sales service: From past three years, retailers have started to
after sales services like greeting customers during festivals and giving gifts,
appreciating regular customers and giving extra discounts at time to retain them,
educating the customers about any new product in their store.

Observation:

From the information above we can say that 70% of the retailers provide after
sales service to their customers to retain them other than home delivery services.

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Interpretation

Hence we can say that retailers are providing additional services to retain their
customers.

Question-6

Contents Percentage Numbers

Yes 40% 4
No 60% 6

Percentage

yes
no

Graph 4.6 Variety of stock

Variety of stocks: Online stores maintain a wide variety of stocks and retailers
fail in this context to the e-stores by a wide margin but most of the retailers as
found by the survey has no inclination to compete with the online stores in this
regard. The defeat is accepted. Retailers cannot maintain a large stock as that

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might have a negative impact of unsold stock at the end of the year which in turn
might bring in huge loses to the concern.

Observation

From the above details we can conclude that, many retailers do not have large
variety of products in their stores, only 40% of retailers have most of the products
that the customers’. Almost 60% of the retailers don’t have a large variety of
stock, they have limited stock. Hence customers usually prefer online purchasing
as they get a large of products.

Interpretation

Hence we can conclude that only 40% of the retailers have variety to stock in their
stores. Hence customers prefer online shopping than in store shopping.

Question-7

Contents Percentage Numbers

Yes 60% 6
No 40% 4

Percentage

yes
no

Graph 4.7 advertise about your enterprise

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Advertisement: The retailers now-a-days are more involved in advertisement
campaign than ever before in order to increase their sales. Retailers leave no
occasions to take advantage of the situation to advertise their firm.

Observation

From the above data we can observe that almost 60% of retailers do advertise
about their enterprise. They use every single way to advertise their enterprise.
Only 40% of the retailers do not advertise about their enterprise.

Interpretation

Hence we can conclude that retailers are using mode of advertisement to reach to
their customers.

Question-8

Contents Percentage Numbers

Yes 80% 8
No 20% 2

Percentage

yes
no

Graph 4.8 Delivery services

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Customer services: More and more retailers are now opting for customer services
to build upon a loyalty. Repair and maintenance to installation and insurance,
retailers are leaving no stones unturned to specialize in areas in which online
shops fail. Retailers are now starting up with home delivery services in the same
line of the online shops.

Observation

From the above data we can see that 80% of the retailers are providing delivery
services to their customers. Only 20% of retailers are not providing any services to
their customers. Retailers are providing delivery services to retain their customers.

Interpretation

Hence we know that retailers are providing delivery services to retain their
customers.

Question-9

Contents Percentage Numbers

Yes 70% 7
No 30% 3

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 Percentage

yes
no

Graph 4.9 Discounts before purchases

Discount: The retailers are at an alarming rate increasing their discounts in order
to stand with the online stores who owes the customers with unbelievable
discounts. Although the retailers cannot compete with the online stores in terms of
discount but it has to lower its prices to a relative extent to survive the market.

Observation

From the above information we can say that 70% of the customers ask for
discounts even before purchasing them. They do this because during online
purchase they get a lot of discounts.

Interpretation

Hence we can say that retailers will have to give a lot of discounts to retain their
customers.

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CHAPTER-V

FINDINGS, SUGGESTIONS AND CONCLUSION

48 | P a g e
5.1 Findings

Digital marketing is consistently taking up a larger proportion of consumer time

and spending. There are several driving factors for consumers to shop online with
price, convenience in shopping and wide range of available products being the
primary. The major findings of the study are as follows:

a. Turnover and profit margin of the retailers has considerably decreased in the
past few years.

b. Retail stores are now-a-days more engaged in services related to customer

satisfaction.

c. Although the retailers are not able to keep a wide variety in their stock, they
attempt to keep the best of them so as to affect more sales.

d. Customers are seen to make window shopping at an alarming higher rate to

have a physical look at the product and buy that product online at a reduced rate.

e. Retail stores are now starting up with home delivery services of their various
products at the door step of their customers.

f. The consumers become more comfortable with the experience of purchasing

online with the convenience and product range become relatively more important
as a deciding factor for shopping online.

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5.2 Suggestions

 The retailers need to make substantial investment in acquiring some

advanced expertise in developing more accurate and scientific demand
forecasting models

 The existing small and medium independent retailers is to closely examine

what changes are taking place in their immediate vicinity

 The next effort should be to encourage retailers to make some investments

in improving the interiors of their respective establishments to make
shopping an enjoyable experience for the customer.

 Retailers have to change the attitude towards customers and the market,
fixing their priority as consumer satisfaction.

 A retailer should be in the good books of customer by providing better

quality products, fair price and friendly after sales services.

 A loyal customer reduces the cost of retailer. All efforts should be put by
retailers to build up the loyalty which in turn will bring a stable sale and
stable customers like bonus points, free insurance, preferred customer
status, cash back schemes and other special offers which satisfy the
customer.

 Sale Promotion activities attract customers to a large extent. They are

undertaken during special occasions, off seasons, festivals or on a

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 particular day of a month. Major promotional tools used by the stores are
discounts and coupons, exchange offers, low priced products etc.

 Good variety in retail stores acts as a major motivator for customers to

visit a store again and again. For majority of customers variety came in the
form of having a bakery within the store, food section, private labels and
national brands and finally a lot of fresh fruits and vegetables.

 Retailers should help customers to explore the store. For this shopping
should be made more adventurous by continuously upgrading the product
portfolio, by changing the layout and by providing the touch and feel
experience.

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5.3 Conclusions

The face of retail has changed. The advent of technology in recent period being
the primary reason for it. Today, retailing means going into shopping centres,
going online and going mobile. In all these, small retailers miss out somewhere.
But the nearby store is always the most important concern for all reason and
seasons. It needs to revive not just survive. The retail stores needs to simply uplift
its pattern of business and face the competitive world with a more positive
outlook. E-stores and retail stores both have to survive, none at the cost of the
other. It’s not just about the livelihood it gives to the thousands of people but also
the convenience and the steadfastness of a fixed retail store.

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Bibliography

 Zhou, L., L. Dai, and D. Zhang, “Online Shopping Acceptance Model

– A Critical Survey of Consumer Factors in Online Shopping”, Journal
of Electronic Commerce Research
 https://www.convincenandconvert.com/digital-marketing/the-
evolution-of-digital-marketing
 http://www.iosrjournals.org/iosr-jbm/papers/AETM’15_MBA/2/25-
MBA-145.pdf
 https://en.m.wikipedia.org/wiki/Digital_marketing
 Backinmytime.blogspot.com

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Annexure-1

Questionnaire

1. Are you(provisional store owners) aware of online purchasing?

Yes
No

2. Has there been any decrease in average turnover in the past three years?
Yes
No

3. Is there any decrease in profit margin?

Yes
No

4. Have u made any increase in discount rates offered to customer in recent

times?
Yes
No

5. Do you keep more variety of stock at your store now-a-days?

Yes
No

6. Do you provide after sales service of personalized nature to your

customers?
Yes
No

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7. Do you advertise about your enterprise?
Yes
No

8. Do you provide home delivery services to your customers?

Yes
No

9. Do customers asked for discounts before making purchases?

Yes
No

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