Friday, 28 December 2012

Monthly Household Grocery Purchase shift from Kirana to Organised Retail Outlet


A Few facts which affects Monthly (Bulk)shoping from Kirana Stores:-

Attractive and appealing sales promotions influences switch over from kirana stores to organised retail outlets.

There is reduction in the monthly purchased value of the household items (grocery) from the conventional kirana stores due to the one stop shopping at the organized retail outlet.

 Pleasure in buying experience at organised retail outlets plays an important role in the reduction of the monthly purchase of household grocery (functional products in daily use) from the conventional Kirana stores.

 There is reduction in the monthly purchase value of the household items (grocery) from the conventional kirana stores due to the emergence of organised retail sector.

 The availability of the multiple brands at the organized retail outlet plays a major role in the reduction in the purchase value of the grocery from the conventional Kirana stores.

 The radical change in lifestyle is stimulating the purchase shift from the kirana stores to the modern (organised) retail outlets.                             

 General Observation:-

 Availability of multiple brands and one stop shopping are the major reasons for the preference of organized retail. Sales promotions are second major driver for organized retail .Even though people have a kirana store near their house, they prefer to do shopping from organized retail due to the aforementioned reasons .With increase in total expenditure the share of valet for kirana stores reduces. Pople have not  a strong preference for future change in their buying habits. As the disposable income increases the consumers tend to spend more time on hobbies and like spend time with their family more. Ancillary entertainment services like cinema halls, gaming zones play a vital part in making the organized retail shopping a more pleasurable experience.


·        Kirana stores can sustain their absolute revenues by focusing on the following short term/quick fix factors:

A.     Increase the breath of products.

B.     Passing on more sales promotions to the customers.

C.      Provide home delivery service to the customers.


·        Since high income groups tend to have more hobbies and like to spend time with their families the most, kirana stores can subtly emphasis the home delivery option to enable them to spend more time with their family.


·        Organized retail outlets are perceived to be more modern i.e. perceived to be visited if you have to change with time hence kirana store owners need to change the perception by making their outlets more aesthetic.

·        Organized retail outlets are not convenient to the consumer in terms of vicinity to their homes; kirana stores can capitalize on this fact to increase their share of revenue from the consumers.

·        Organized retail outlets have increased spend done by consumers as their income increases. Kirana store lose out on the high spending consumers, they can reach out the customer by providing regular reminders by providing them pamphlets and promotional offers along with the message that they can make the delivery at the door step of the consumers.

·        There is a negative perception about freshness of fruits and vegetables in organized retail outlet due to which consumers tend to shop from other avenues for these. Retail outlets can provide a standee near such goods providing information about the received date so as to change the perception.

·        Kirana stores can start accepting other forms for payment i.e coupons and cards to increase the spending by the customers.


Tuesday, 11 December 2012

Relationship Marketing

Relationship Marketing


Studies of the marketing processes employed by both industrial and service firms seeking to optimize market performance have culminated in the emergence of a new school of thought, collectively known as “Relationship Marketing”.
                                                                                                                                 (Chaston, 2000)

The primary focus of relationship marketing is towards building closer relationship with customers as a strategy to overcome problems such as acquiring global competitive advantage, coping with rapidly changing technologies and reducing ‘time-to-market’ of new products.                                                                                                                 (Webster, 1992)

 RM (Relationship Marketing) consist of different dimensions ranging from tangible (monetary) to intangible (psychological) rewards awarded to consumer with the aim of motivating them to stay in a relationship.

 If we assume RM is single dimension then that is customer service, but it is not correct in this scenario.

RM is multidimensional, i.e., Customer service, Loyalty program, Customization, Personalization and Brand community.
  1. Customer service is the main dimension in managing and enhancing customer relationship. Superior customer services serves as a mode of differentiation that offers another advantage for the firm.
  2. Consumer who participated in a loyalty program might be more motivated by the program incentives to purchase specific brands repeatedly.
  3. Customization means manufacturing a product and delivering a service in response to a particular customer’s needs
  4. Personalization refers to the degree to which a firm or store or salesperson can personalize the relationship with a customer by communicating well.
  5. A brand community is a community formed on the basis of attachment to a product or marquee defined the concept as a specialised, non-geographically bound community, based on a structured set of social relations among admirers of a brand.