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11 Chapter II
11 Chapter II
LITERATURE SURVEY:
2.1 INTRODUCTION
Theoretical framework plays most significant factor in the study. In the Literature
review the content reviewed are related with Retail Sector, Retailing
strategy,Advetising,Sales Promoion,Direct Marketing, Personal Selling ,Public
Relations,Ambience,Conenience, Staff support, Private branding and Customer
Satisfaction. Reviewing Articles, Journals ,Magazine related to the topic was always
the core factor in my study ,present updates were taken into consideration, to get into
the depth of the subject and for understanding the nuances of the study
2.2 DEFINITIONS
Retail strategies are the plan of action which any store, retailer ,shopkeeper,seler
incorporate to enhance the business opportunities which is directly proportional to the
sales output implying business growth and profits. (Joel.R.Evans, August 2017 )
Retail strategies are primarily aimed at mass audiences to have dual impact of
increasing footfalls and also getting a chance to subtly hammer stickiness to the
customers.
Retail strategies aims at creating demand for the products , building long lasting
customer relationship and assist in strengthening the brand image of the retail sector.
(Matutes, 2016).The strategies are the plan of action that derive the desired results
based on competitive factors which may include monetary ,non monetary ,socio
economic ,demographic factors, it may be pertinent to know that the above said
factors have a consequential result proportional to the consumer buying capacity to in
capsulate the buying pattern pertaining to the end user and buyers can be
scientifically derived upon application of various marketing tools available with the
retailer.
Sales Staff
Ambience
Promotion Support
Convenience Pricing
Retail strategies are the significant actions adopted by the retail sectors to create the
competitive edge in the market, the sales tools applied have a definite impact on the
customers and helps in retaining them at the same time creates new customers .
(Keeling, 2017 ).Retail strategy broadly aims at Segmenting which is dividing the
market in homogenous groups, targeting them with the innovative and creative
marketing plans and programs ,differentiate them with the excellent supply chain
management competitive products and policies ,Positioning the products in the
mindset of the customers . (O.P.Lakshmanan, 2017)
Retail strategies also encompasses the marketing mix which are effectively using the
product categories like Augmented,Core,convenience,specilised and shopping
,placing pricing strategies like skimming the cream,psychological,discounted
,penetration strategies ,efficiently placing the products in the right location and using
appropriately promotional mix tools for reaching to the customers. (Michael Dart and
Robin Lewis , July 2017).
Communication is the most significant part of the retail strategy ,its commonly used to
inform, persuade and create awareness amongst the targeted customers. (Singh D. ,
2016) It also act as a bridge between the marketer and the customers and enhances the
goodwill and reputation of the company products ,companies like Coca
Cola,Britannia,Pepsi ,HUL,P&G are known to have a long lasting relationship as they
have always emphasised on the relationship building and known for using most
effective promotional mix like Advertising, Sales Promotion, Publicity in their
marketing strategies while advertising their existing products or launching the new
product in the market. Most widely used retail promotional tools are as follows :-
RETAIL PROMOTION
MIX
PUBLIC RELATIONS
2.4.3-OBJECTIVES OF ADVERTISING
Advertising aims at influencing,awaring,persuading and convincing the
customers about the product ,services and promotional offers and also build
long lasting customer relationships (Anantachart, Aug 2016) .There are many
short term and long term advertising objectives. Some of the objectives are as
follows
Creating awareness amongst the consumers for inducing the sales
regarding the product and services
Developing the specific brand image in the mindsets of the consumers
Increasing the demand for the product in the market
Creating short term and long term sales of the product
Sales promotion implies promoting and increasing the sales of the products in
the retail stores by opting sales promotional tools like Discount ,Premium
,Rebates, Price offs. (.K.Batra, 2016) There are many short term and long term
objectives of sales promotion and some of the prominent objectives are as
follows:-
PUSH STRATEGY – The push strategy is normally designed with the help of
distributors and dealers and aims in pushing off the sales in the market with the
help of innovative sales practice . Methods like Personal selling and Direct
marketing are adopted by the company in order to increase the company sales.
(Villarejo-Ramos, 2017)
Retail promotional strategies always have played a significant role in the success
of retail stores. There are numerous sales promotional strategies to increase the
sales of the company .Some important strategies are as follows:-
🞂 REBATES:- Rebates are the reduction in the total bill by the marketer
,where customer has to less for the product .Many retail stores run the
rebates during festivals as well as on season ,off season to increase the
customer traffic. Rebates can be considered as the most effective way
in promoting the products and also the stores
Personal selling aims at establishing close relationship between buyers and sellers and
helps in maintaining a strong relationship between the concerned parties (Don E.
Schultz, 2016) .In all the product categories ,personal selling can be effectively used
as it success is being proved again and again for the success of the organisational
objectives. Some of the objectives are as follows:-
Personal interaction with the customers
Handling of queries quickly
Building long lasting relationship with the customers
Increasing sales of the company
Educating the customers
Developing desire in the customers
Increasing the and profits of the company
Accomplishment of organisational objectives
Direct Marketing is a technique through which retailers adopts a method where there
is a direct interaction between Buyers and sellers ,Business to Customer approach is
taken into consideration ,many companies like Amazon,Flipkart,E-bay has established
well in Indian market by using this approach. (Kabak, 2016) Direct marketing
removes the role of intermediaries and without the known to to be one of the best way
in attracting the attention of the consumers ,this marketing strategy has resulted in
increasing the business multifold and results in high customer satisfaction and profits
,all the promotional methods are communicated to the customers without involving
the intermediaries. (Kaefer,2016)
Direct marketing aims at communication directly with the end consumers and assist
the retailers and customers in understanding their needs and satisfying them
accordingly ,following are the objectives of Direct marketing :-
The crucial elements here solely depends most of the time on its manufacturing
process, the time taken, its scheduling, production standards, and the regulatory
compliance oriented specifications marks, strategic brand alliance helps in promoting
manufacturer private label brands. . Brand performance and Brand loyalty can be
achieved by accomplishing the above mentioned factors. (McAllister, Liane,2016).
2.9.1-OBJECTIVES OF PRIVATE LABEL BRANDS
The Private brands in recent times has multifold increase the business of retail stores
and primarily aims at increasing the demand of the local consumers for the local
products . In most of the stores in present times the retailer is promoting them
aggressively (Jason.M.Carpenter,2015) .There are numerous objectives that company
achieves ,some of the prominent ones are as follows:-
a) The primary objective is to grab the attention of new customers and retain the
existing customers.
The retailers in the market place is well aware of the competition given by the
established and National level brands ,the result of which is the introduction of private
label brands which helps in combating the competition and also promotes healthy
competition in the market. The below mentioned diagram highlights different aspects
related with the evolution of private label brands in India.
Easy availability of low cost high variety products in the local market
Source:- www.customerretailexperience.com
This study aims at studying the various retail promotional strategies which has
maximum impacts on customer satisfaction and in turn has increased the customer
traffic ,sales and profitability of the company, the presence of private brands and how
saes promotional tools affect their sales and increases customer loyalty . This study
has taken into consideration various dimensions like Sales Promotion, Advertising,
DirectMarketing,Ambience,Convenience,StaffSupport, Personal Selling ,Public
Relation are also independent factors and most significant one which is Customer
Satisfaction which is the dependent factor in the study
82 2017 Subhadip Roy and Mishra The author has revealed that
Ad celebrity endorsements adopted
by most of the brands increase the
demand of the product and retail
store. Popular film star are used to
increase the demand of the
products .Different promotional
campaign are planned which in
most of the cases always has
given best results .Author has
advised to use the endorsers as per
their budgets .
93 2017 Bettman.James.R