Group 3 r nd f

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Shiny Provision Store:

Retail ing Challenges I n the I ndian Context

By Group 3 :

• Gautam Hariharan –

12P137• Mohit Ambwani – 12P152

• Nikhil Rana – 12P153

• Prabhat Singh – 12P154

• Pratik Nagori – 12P155

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History and Growth of Retail• Traced past to Indus Valley Civilization

• Fairs : Periodically Conducted market places

• Shandies : Weekly Markets

• Village Shopkeepers: Merchants going out of village for trade

• Public Distribution Shops : Govt. run chains

Year No . of Shops (millions)

1950 0.25

1978 2.335

1997 5.13

2005 12.77

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Unorganized retail ing:

a) Operated by a single owner

b) Lacks technical standards

c) Lacks Accounting standards

Organized retail ing:

a) Transparency in accounting

b) Organized SCM

c) Centralized quality control

d) Centralized sourcing

e) Not a standalone shop

Organized vs Unorganized

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Kirana Stores

•

“Mom and Pop” of the west • Owner and family members manning the store

• Small floor footage - Ranges from 25 to 400 sq.ft

• Unorganized retail format

•

Trades in branded as well as unbranded products• Low – Priced SKUs

• Largest source of self employment in India

• Next door convenience store

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Types of Modern retailing formats Supermarkets:

a) Includes food and household

productse.g.: Food World, More & Ni lgir is

Departmental Stores:

a) Includes life style driven products

e.g.: L ifestyle, Shoppers Stop, Westside, etc.

Factory Outlets:

a) Present in Urban areas

b) Out of Vogue products sold at discount rates

e.g.: L ouis Phi li ppe in apparel, Nike in footwear, etc.

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Hypermarkets:

a) Large volume driven discount based stores

e.g.: Reliance Fresh, Big Bazar

Special ized Ki l ler stores:

a) Extensive range of products under a single category

e.g.: Croma, Vivek & Co.

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Reliance Fresh Outlet• Located in BTM, Bangalore

• Store area 3000-3500 Sq. ft..

• Deals in branded products

• Attractive

Shiny Provision Stores• Kirana Store located in BTM layout

• Store area was 600-1000 Sq. ft.

• 11 of the 38 Kirana store in vicinity• Trades in SKUs, vegetable, fruits and groceries

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4P’s of Marketing: Kirana Vs MROPRODUCT

MODERN RETAIL

OUTLETS

KI RANA STORES

• Variety in each category • Product SKU’s are

limited

• Expensive as well as low

end items

• Cheaper and daily use

items

• More attraction of

branded products

• Unbranded products

PLACE

MODERN RETAI LOUTLETS

KI RANA STORES

• Located in densely

populated area

• Located on busy

cross-roads

• Area: 3000-3500 sq.

ft.

• Area: 600-1000 sq. ft.

PRICE

MODERN RETAIL

OUTLETS

KI RANA STORES

• Synergy due to

bulk purchasing

• Variable

depending on type

of consumer

• Central

warehousing and

transportation

• No proper SCM

in place

PROMOTION

MODERN RETAIL

OUTLETS

KI RANA STORES

• Promotion in

regional and national

level

• Promotion is a rare

event

• Loyalty Card Scheme • Bargains with

regular customers

•

No such Provision•

Provide free homedelivery

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Impact of modern retailing on kirana

customers

• Reliance store outscored Shiny on Aesthetic Image

• Atmosphere

• Attractive layout

• Advertising

• Well placed product

• Spacing

• More variety of products attracts more customer at Reliance

• Better service causes surge in the number of customer

• High earning customers preferred Reliance over Kirana

•

Lack of branded product at kirana causes customer to switch toReliance

• Changing shopping pattern i.e. working class preferring bulkshopping on weekends at the Reliance where they find otherrefreshing activities and offers

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Differently perceived dimensions of the

modern outlet

• Low Income

• Attractive layout

• Good Display all over

•

Attractive and informativedisplay

• Price of the product

• Return of purchases

•Helpful sales, clerical staff

• Medium/High Income

– Quality

– Checkout delay

– Dressing of store staff

– Store atmosphere

– Product placing

– One stop facility

– Exclusive productassortments

– Brands

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Total expenditure = No. of households x Avg. monthly expenditure

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Expenditure Pattern

• One third population belong to <10000 INR Income class

•

People from all Income classes were spending more atReliance

• Reliance was preferred destination for purchasing branded

goods

• Average % monthly spending at Reliance was more for lower

income group

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Image Perception

• Reliance had pleasant atmosphere, layout

• Hygiene factor

• Reliance customer can touch and feel the product

• Brand image for the Reliance was marginally below that of

Shiny

• Service of Reliance perceived better than Shiny

• Scores of Personnel for Reliance was better than Shiny.

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Limitation of research

• Study is conducted in Bangalore only.

• Income of customers have been taken as primary

consideration.• Only Reliance from modern retail outlet and Shiny from the

Kirana stores have been taken into consideration.

• Sample size was limited to 50 customers of both the stores.

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Conclusion

• Reliance outscored Shiny on most of the study

• Reliance made customer spend more for their services,

appearance, product range

• Reliance attracted high Income group customers

• Reliance customers perceived shopping as an important

activity

• Reliance customer were more loyal, since they had lesser

options than Shiny customers having around 11 options

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Recommendation for Shiny (Kirana)

• Increase Brand visibility and Promotion

• Improve service

• Introduce Touch and feel effect to a product

• Improve Infrastructure and layout• Increase variety of products

• Collaboration with other similar retailers

• Attractive and Informative display of product and shop

• Introduction of some offers on sales.

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Thank you

Group 3 r nd f

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