SHIVALIK INSTITUTE OF MANAGEMENT

EDUCATION & RESEARCH

Retail
Communication Mix

Presented by – Nupur, Himanshu, Shweta, Khemlata, Suman &

Prateekhsa
Retail Communication Mix

B
 Store Brand Building Strategies

• Merchandise category
• Price/quality
• Specific attribute of benefit
• Lifestyle or activity

B
Communication Methods

B
 Comparison of
communication methods

B
 Steps in Developing a
Retail Communication Program

Belu
 Retail Promotion Program Objectives

• Long-term
­ Store Brand Building
• Short-term
• Communication Objectives
• Affecting stages in decision making process

Belu
 Communication Objectives & Stages in
the Consumers Decision-Making Process
PERCENTAGE OF CUSTOMERS
95%
100
85%
90
80
70
60
45%
50
32%
40 25%
30 18%
20
10
0
Aware of Knowledge of Favorable Intend to VISIT Regular
store offering attitude visit shoppers

Belu
 Retail and Vendor
Communication Programs

Vendor Retailer

• Long-term objectives • Short-term objectives

• Product focused • Location focused

• National • Local

• Specific product • Assortment of

merchandise

Belu
 Suggestions for Developing Ads

• Dominant headline
• Dominant element
• Simple layout
• Specific, complete presentation
• Distinct visuals
• Name and address of store

Pra
 Considerations in
Evaluating a Promotion

• Realized margin from the promotion

• Cost of the additional inventory
• Potential increase in sales from the
promoted merchandise
• Potential loss from switching
• Additional sales from more customer visits

Pra
 Communication Objectives -
Furniture Store
Communication Question
Objective

Awareness What stores sell Neelkamal furniture?

Knowledge Which stores would you rate outstanding

on the following
characteristics?

Attitude On your next shopping trip for Neelkamal

furniture, which store would
you visit first?

Visit Which of the following stores have you

been to? Pra
 Evaluation of Program

Before
6 Mon 12 Mon

Awareness 38%
46% 52% (% of mentioning store)
Knowledge 9 17
24 (% outstanding rating)
Attitude 13 15
19 (% first choice)
Visit 8
15 19 (% of visited store)

Pra
 Types of Media

 Newspapers  Direct mail

 Magazines  Outdoor

 Radio  Shopping guide

 TV  Yellow pages

Internet
Khem
Media Capabilities

Khem
 Factors in Selecting Media
• Coverage

• Reach

• Cost (CPM)

• Impact

Khem
Communication Objectives
and Effectiveness of Media

Khem
 Types of Sales Promotions

• Special sales
• Merchandise demonstrations
• Premiums
• Coupons
• Games, sweepstakes, and contests

Khem
 Design of Frequent
Shopping Programs
• Lower price
• Rewards based on purchase amount
• Privileges
• Partners, charity tie ins
• Personalization
• Involve customers
• Special treatment

Khem
 India’s Expenditures on Advertising in Year 2010

Total
TotalBudget
Budget Rs
Rs29414
29414cr
cr

Television
Television Rs
Rs11854
11854cr
cr

Print
PrintMedium
Medium Rs
Rs13199
13199cr
cr

Digital
DigitalMedium
Medium Rs
Rs1165
1165cr
cr

Percentage
PercentageGrowth
Growth 22%
22%

Percentage
Percentageof
ofGDP
GDP 0.47
0.47%%

Source – TOI 15 Jan 2011 Him

 Internet Advertising Applications

• Retailers in General
• Create Awareness
• Convey Information
• Brand Building -- Build Store Loyalty
• Electronic Retailers
• Build Web site Traffic

Him
Internet -- Advertising Medium
TV,Radio Internet
Involvement Push, passive Pull, active
Reach Broad Narrow
Targeting Limited Extensive
InformationDelivery Limited Extensive
InformationRichness Mm, audio Multi-Media
Measurability Modest High
Cost $12/8permm $20mm(banner)
Application BrandIm age Product Evaluation
Awareness BrandLoyalty
Him
 Types of Internet Advertising

• Banners - >50% of Expenditures

• Rich Media
• Microsites
• Sponsorships -Embedded in Site Content
• Email

Him
 REFERENCES

• Levy and Witz

• Google images

• Retailing Management by Swapna Pradhan

 H A N K
T
Y O U