On Line Retail Buying Merchandising Retail Process

Knowledge. Experience.
Results
Managed Retail Services (mRS)™
12/08/2021 copyright@www.hand2handsolutions.in www.hand2handsolutions.in

1
Online Retailing
Understanding
from Consumer
Perspective
Buying
Merchandising
Retail Process,
Models and
12/08/2021 copyright@www.hand2handsolutions.in Strategies 2
Key Shoppers Insight
1 Shoppers have difficulty making decisions
Shoppers want to feel smart when making decisions 2
3 Shoppers’ limited ability to process too much information
Shoppers use memory to give meaning to objects 4
5 Shoppers need consistent messages in and out of the store for buying
Discontinuity creates triggers to attract shoppers’ attention
6
7 Shoppers recognize visual stimuli most easily
Shoppers use familiar segments to speed up their selection process
Shoppers’ love to be rewarded for regular purchase
8
9
Shoppers need to be reminded of the items they need
10
12/08/2021 copyright@www.hand2handsolutions.in 3
Shopping Decisions
Changing
Dynamically
Online Target Shopper
Who is the Shopper Why they will buy online
 Younger and Single  Convenience

 Between the age of 25 and 40  24-hour access
 Median Income 10 to 50 lac per annum
 Shop without leaving home
 Dual income household with kids
 Technologically competent
 Saves time & money
 High disposable income  Prices compare favorably
 Time starved - willing to trade money for  Won't forget items
time  Better selection
 Fashion conscious (must be seen doing the
 Can find new products
latest thing)
 White collar, professional
 Can shop from work
How they want
Value Proposition
Ease ofDelivery at a
order Personalized
time to suit
Latestand
& use shopping
customer. Saving &
website.
Trendy experience
tracking monthly
products purchase
Exclusive
deals for all
Online
Customer
Value Proposition Features
 Value Added Features
 Match Lowest Competitor Price
 Clubs for Special Occasions (Birthday
party for weddings)
 Wish List, Reminder List, Gift
Registry, Purchase History
 Free Internet Access, Webpage,
 Value Added Relationships
Email, Horoscope
 STRATEGIC Value: Marketing
 Checking Order Status Online and by
Alliance with Leading email
SMS
companies
 Online Shopping Assistants
▪ Value for Customer: Sense of
 Multilingual (English Hind )
security and identification
 Multiple Ship To Addresses
with trusted brand name.
Factors Attracting
& Retaining Customers
Attraction Factors Retention

1 Price 10
2 Product Presentation 3
3 Product Selection 9
4 Shipping &Handling 4
5 On Time Delivery 2
6 Ease Of Ordering 6
7 Customer Service 1
8 Product Information 7
9 Privacy Policy 5
10 Website Navigation 8
Online Grocery Sales
Key Components
Components Variables Challenges
Growth in frequency may lower order
Type of shopping occasion. size
Frequency of shop Requires weekly shop/large orders
Household size Not set up for large number of small
Order Size /demographics orders
Consumer planning horizon Reasonably high level of planning
Order size and Pack Size Availability of desired delivery slot
Order Willingness to hold inventory

Frequency Disposable income
Households with computer Households most able to order may be
& internet least willing to order
Knowledge of online retail Gen X & Y not planning meals
Consumer behavior patters High food away purchase
Break down of traditional meals
House Hold Shopper will pass traditional market at
Penetration
12/08/2021
least 2 times a day
copyright@www.hand2handsolutions.in 10
Online Merchandising
Product presentation greatly
Planning
affects online decision?
 Primary
 Sight: many pictures
 Touch: proxies with close-
ups?
 Function: product shown
in-use and product details
 Secondary
Con Cat Pric Searchand

Comparative: comparison
Promotions
tables
Manageme
tent alog e  Subjective: customer
nt ratings
Active Merchandising
Driving Revenue
1. Communicate special offers clearly and
early in the buying process.

 Attract new customers (increase
2. Place KVI /featured items above the fold
on the Home page. conversion rate).
3. Use brands, categories, and situational  Increase volume of sale

merchandising (Party, Birthday..etc to
suggest products. (increase AOV).
4. Maximizing up sell and cross sell  Give customers more chances

opportunities
to buy more often.
Pricing Strategy
Objective of Pricing
Methods
 Increase profits  High markup on lower
 Attract new customers volume
 Maintain current customers  Low markup on higher
 Increase profit per customer volume
 Introduce new product  Price Bundling /

 Generate cash Unbundling
 Improve ROI
 Monthly Pricing
 KVI pricing
 Promotional Pricing
Promotion Startegy
Direct
 Group Deals RWA mail
Door-to-
door sales
 Buying Cycle Deals Mobile
Applicati
ons
 Monthly Deals
Home and
office
parties
 Annual Buying Promotion
 Registration Promotions Catalogs
Internet
Telephone
Buying Models
Customer
Customer Service
Delivery Centre
Warehous MF / CNF
Operations e&
Distribution
Centre
(DC)
Trader Trader Trader Trader Trader

-1 -2 -3 -4 -5
Buying Models
Agency Managed Agency Managed
Customer
Customer Service
Delivery
Centre
Warehouse
Company Managed •20,000-50,000 SKU
Operations & •Maintain KVI
Distribution Branded Product
Centre minimum Inventory
(DC)
Manufacture
Manufacture Buying Cash &
s
s Distributor Agency Carry Wholesale Trader
Oder Fulfillment
Process
Order Confirmation, Delivery Confirmation, Feedback
Delivery Customer Customer

Service Centre
Order
Warehouse
&
Distribution
Centre Operations Central
(DC) Database
Buying/
T1 Replenish
ment
Delivery Models
Option-1
Online Order or Tele order Free home or office delivery
Option-2
Online Order or Tele order –Deliver at Store
Key Aspects
 Next day service -Pre-scheduled & Informed
 Order-on-demand
 Same Day delivery window
 Minimum Order value Rs 1000
 Unattended delivery will be cancelled or delivered Next Day
 Challenges -Returned Of Goods:
If customer is not satisfied with the product.
About

Hand2Hand Solutions
Launched in 2009
 Some of best and growing
retailers as clients Integri
 Experienced Team of Consultants ty
Netw
from Retail & Recruitment orking
Domain Profes
 500 man months of retail
sionali
experience with Reliance Retail, sm
Aditaya Birla Retail, Spencer
Expe
Retail, Johnson Controls rtise
&Infosys.
For More Detail -Contact
Educational Background
Amit Garg
Head Retail Business  Fashion Retail Management from NIFT
Retail, Grocery, FMCG and Lifestyle Delhi
 PGDBM, Fortune Institute Of
11 plus years of experience with Reliance International Business,New Delhi
Retail, RPG Spencer & Aditya Birla Retail.  Diploma In Sales & Marketing, Sales &
experience in retail diverse functions like, Marketing , NIS Sparta
Buying,Merchandising,Sourcing,Vendor
Management,Operations,SCM,Logistics,Recr
uitment,Marketing & Retail Software amit@hand2handsolutions.in
09818995422
implementation. amit@hand2handsolutions.in www.hand2handsolutions.in
New Delhi, Gurgaon & NCR

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Knowledge. Experience.

Managed Retail Services (mRS)™

12/08/2021 copyright@www.hand2handsolutions.in www.hand2handsolutions.in

 Younger and Single  Convenience

Attraction Factors Retention

Order Willingness to hold inventory

Con Cat Pric Searchand

1. Communicate special offers clearly and

early in the buying process.

on the Home page. conversion rate).

3. Use brands, categories, and situational  Increase volume of sale

suggest products. (increase AOV).

4. Maximizing up sell and cross sell  Give customers more chances

 Introduce new product  Price Bundling /

 Registration Promotions Catalogs

Trader Trader Trader Trader Trader

Delivery Customer Customer

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