Guide by Mrs : T . Ponnarasi
: Asst. prof.-Agricultural Economic
Presented by Mr.Malcomestar L. Mawnai
1st year M.B.A ( Agri-Business)
Roll. No-B1302
Retail mean “ to cut the piece off or to break bulk” comes from French word.
One of the old method of marketing.
Activities to market a products
Start of India retail reforms during the 1997’s
Retailing “ is define as a market activities where a large quantity of products are bought from whole seller or directly from manufacturer and selling the goods/services to consumer for personal consumption”.
Consumer behaviour “ the dynamic interaction of effect and cognition , behaviour and environment into which human beings conduct in exchange of goods”
To perceive the level of satisfaction on consumers.
Behaviour towards organized( supermarkets, malls , hypermarkets ,stores )
Impact of consumers behaviours on retail market .
Advantages and disadvantages of retail market.
Future strategies of retail marketing in India.
Challenges on retail marketing.
Comes from old French word ( tailler)
Terms of tailoring start in 1365
Recorded as a noun with the meaning of a (sale in small quantities) in 1433
The term retail in both Dutch and German also refers to sale in small quantities of items.
In India its start comes into sense from the year of 1997 onward.
Retail market exist before the biblical centuries.
Sparked intense activism both support and opposition group.
Happens in November 2011
Massive losses of job
Controversy allowing foreign Retailers
- E.g. Wal-Mart employs very few people in US. And allowed to expand there business in India.
Enter of political backlash
BJP threated,(Set a fire on Wal-Mart store whenever is opens by Banded are introduced)in 1 December 2011.
Lots of controversy happens in each and every state in the retail reforms
Against on 2 December 2011 the government force to re-think on the retail reform.
On 3rd December 2011
Overwhelming majority of famers and consumers support in and around the cities support retail reform.
78% of the famers supported
Support by the famers group such as Bharat Krishak samaj , Indian farmers association ,etc.
Also support came from the Economist and Entrepreneurs
Organized Retailing
- undertaking by licensed retailer, such as those who are registered for incomes tax,sales tax , etc.
* divided into 1. Single brand ( Nike , Addidas, )
2. Multi brand (Wal-Mart, Reliance, Hindustan,)
-Eg. Supermarket,stores,etc
Unorganized Retailing
-refers to traditional formats of low cost retailing.
Eg. Local kirana shop, pan shops , etc.
Food products- typically required cold storage
Hard goods or durable goods- electronics ,appliances ,furniture , sporting goods , etc.
Soft goods/ Consumables- clothing's ,apparel ,fabrics , etc.
Convenience – frequent purchase, low involvement.
Shopping – comparisons are made. Medium involvement
Specialty – High involvement
Food products – susceptible to peer and reference group influence. High involvement.
CLASSIFIED INTO TWO
1. Growth over 1997-2010
-allowed foreign direct investment (1997)
- required government approval
- attracted over $1.8 billion in 2000-2001
-attracted of single brand over 94 proposal in
2006-2010
-until 2010, there are 60+ margins for middle man and traditional retail shops.
2. Growth after 2011
-before 2010 ,India prevented innovation and organized competition on retailing.
- suffer a malnutrition of food waste in retail
- 30% wastage for foods and perishable goods in agriculture
- In 2011, generate sales about $450 billion in year.
-25% market share expected by 2020
- $440 billion by 2020
- food retail accommodate 70%
Revolution in Indian consumer behaviour
Higher buying power
lifestyle
Power seeking variety of quality and price
Increase indulgence in entertainment and products
Brand consciousness
Technology Savvy
Convenience seeker
Increases competition
Future group
Mahindra group
Reliance industry
Aditya Birla group
Bharati Enterprises
Fabindia -fabric, textiles, handloom, jewellery.
The Bombay store- Indian Artefacts, Home Furnishings.
Spencer’s, food world super markets
1. Need arousal2. Recognition of the need3. Level of involvement4. Search for information or identification of
alternatives5. Evaluation of alternatives6. Decision 7. Purchase action8. Post-purchase feeling
Initiator – first individual
Influencer- provides views and advice
Decider – individual who will take decision
Buyer – actually makes the purchase
User – who consumes or uses the product
Demographic Changes
Multichannel
Personalized marketing
Distribution revolution
Emerging of retail business models
Existent before the biblical times
Deeply importance to people daily life
Easy transactions
Sell products and service to world wide market
Easier in marketing
Great ways to boosting sales and returning
Friendly and highly accommodations
Attractive , comfortable and convenient
Provide service, an goods to the consumers
Available of new shipping process
According to Kelly & Stephenson ( 1967 )
1. General store characteristics – reputation
2. Physical characteristics of store – cleanliness, checkout services etc.
3. Convenience of reaching the store
4. Products offered – variety, dependability, quality
5. Prices charged by the store – value, special sales
6. Store personnel
7. Advertising by the store
8. Friend’s perception of the store.
> Engel-Kollat-Blackwell ( EKB ) model ( 1968 ) Three major changes:-- High involvement- Element of risk is higher ( consumer unsure about he
outcome of purchase decision ) - The central process can be seen in five stages :-1 – problem recognition/ arousal2 – internal search3 – external search4 – choice/purchase5 – outcome of satisfaction.
Needs – Basic human requirements
Wants – Potential purchase occurs as the individual feels a drive to satisfy those needs.
Demands – Those wants for which the customer is able to pay.
Functional ( time efficient ) – focused, predetermined routine habitual action.
Complex ( time required ) – Pre-planned/ researched, higher risk.
Leisure ( time rich activity ) – Emphasis on browsing and serendipity.
Under gone remarkable transformation
Increased of income
Changes from traditional shopping to new retailing shopping.
Undergoes for branded products
Consumer undergone shopping from local vendor , streets vendor, stores ,malls and supermarket , etc.
Undergoes for quality and quantity products
Economic risk
Physical risk
Psychological risk – status can be lost through patronizing the wrong store.
Performance risk
Role playing – learned or expected behavior
Diversion – escape from daily routine
Self gratification
Learning about new trends
Physical activity – mall, stores size , etc
Sensory stimulation – sound, light, color, taste, etc.
Social experiences outside the home
Communication with others having similar interest
Peer group attraction
Status and authority
Pleasure of bargaining
Slowing birth rate Average life expectancy Social structure – rich becoming richer, poor
becoming poorer Delay of Marriage Value of education – high education, loans to pay off
hence white collar jobs and formal wear. Working women Population mobility Ethnic groups
Psychographics
Role of children in consumer behavior process.
Thinking , preferable, likes,etc
Based on psychology analysis
Boost economic life
Increase level of competition
Maximum opportunities
Advanced technology
Create jobs opportunities
Affect the small retailers, farmers and consumer
Give rise to monopolies pricing
Entry of large global retailers such as Wal-Mart
Retail chains would go up
Limited Employment Generation
Small retailers and other ‘Kirana Stores’ may close down.
The income of an average Indian is increasing and thus there is a proportional increase in the purchasing power.
The infrastructure is improving greatly in all regions is benefiting the market.
Indian economy and its policies are also becoming more and more liberal making way for a wide range of companies to enter Indian market.
Indian population has learnt to become a good consumer and all national and international brands are benefiting with this new awareness.
Another great factor is the internet revolution.
Foreign direct investment is not allowed in retail sector , which can be a concern for many brands.
Regulations and local laws and real estate purchase restrictions bring up challenges.
Lack of integrated supply chain and management and lack of trained workforce .
Any brand can go far ahead in the Indian Retail Revolution.
Unorganized retail still lead when compare to organized retail market.
Good Planning, Timely Implementation and a media campaign that touches Indian consumers.
Still India retailer are not in a proper status when compare to other countries.
Retailing in India still hold the future Ma till date
Retail market still play a major role in Indian economy.
Analyses and efforts should be put on all parameters.
New innovative retail marketing techniques need to implement in unorganized retailing( infrastructure, products design , packaging , etc.
Implementation of new reform retail marketing are needed.