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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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CONSUMER BEHAVIOUR IN
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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CONSUMER BEHAVIOUR IN
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.