Paradigm of 1s

8/6/2019 Paradigm of 1s

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PARADIGM OF 1s

1 Customer buys 1 SKU from 1 Sq.

ft. in 1moment


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FEW OBSERVATIONS Organised sector likely to be Rs. 160,000 crore by

2005.

These growth opportunities have attracted globalmajors like M&S, Samsonite, Swarvski, Dominosto 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.


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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


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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


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INDIAN RETAILING- key

driversPre- 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

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INDIAN RETAILING- key

driversCONSUMERISM CYCLE

ENTRY OF CORPORATE SECTOR

CHANGE IN SCALE OF OPERATIONS

BUILDING CHAINS AROUND BRANDS


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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


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GROWTH OF ORGANISEDRETAILING

OR in India will soon be catapulted through stages of itsgrowth to its culmination in maturity.

Four Gear Paths for organised retail trade suggested by KSA

Technopack places india in the second gear & predicts thatit will match global standards by 2010.


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FOUR- GEAR PATHStage of infancy

Meeting customer expectations

Shift in power equation between manufacturer &

retailers

Period of consolidation.


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CONSUMER BEHAVIOUR IN

RETAIL CONTEXT

While the term consumer seem to indicate singular

concept of demand, reality is there is a widediversity of Consumer behaviors with decisions

made for a range of reasons


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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. Retailersshould provide sufficient informaton & assurance.


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RETAIL CONTEXTRetail 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 onpurchasing patterns.


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RETAIL BUYING PROCESSNEED AROUSAL

NEED RECOGNITION

INVOLVEMENT LEVEL

INFORMATION SEARCH &

IDENTIFICATION OF ALTERNATIVES


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RETAIL BUYING PROCESSEVALUATION OF ALTERNATIVES

DECISION

PURCHASE ACTION

POST PURCHASE BEHAVIOUR (PPB)


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INFLUENCES ON THE

CONSUMPTION PROCESS

ENERGISERS OF DEMAND

FILTERERS OF DEMAND

EFFECTERS

ROLES


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MOTIVATIONAL FORCESTHE

NEED & INVOLVEMENT STAGE

Tauber suggested shoppers utilise 6 categories ofpersonal motivation

ROLE PLAYING

DIVERSION

SELF-GRATIFICATION

LEARNING NEW TRENDS

PHYSICAL ACTIVITY

SENSORY STIMULATION


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Shopping activities are also characterised bythese social motives

-Social experiences outside home-Communicating others having similar interest

-Peer group attraction

-Pleasure of bargaining

- Status & authority


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Patronage of a RO are likely to be based oncertain motives

-Convenience-Reputation

-Retail environment characteristics

-Service encounter expectations

-Expectations of the merchandise

-Expectations of value


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IN A FLASHConsumer Behaviour will provide useful

insights into the process & therefore is useful in RMdecision making.

- Growing consumerism is likely to pave the way for greaterconsumer orientation & consumer enlightment.

- Growth of retailing will continue to be fuelled by theconsumer, his expectation & demands for more value.


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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.

- Consumers emphasis will shift from product- based toexperience- based shopping.

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Paradigm of 1s