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Project Title:
Can retailer win back the customer in times of Giants like Amazon, Ebay.com etc.: Case
study on the strategy of IPL Retail Group, a family owned business in Australia.
Research Problem:
Local retailers are facing problem in business because of entry of international retailers
and online sellers like Walmart, Amazon and E-bay etc. There is challenge of changing
consumer behavior regarding online and offline purchase. Every goods and service
provider has ultimate goal of enhancing customer value, as consumers look for quality
product with less delivery or service time (Efthimiou & Robinson, 2021, p. 2(3)). Local
retailer in present times where consumers look for better deal at online and offline stores
requires exploiting market opportunity. Major strategic change is required keeping in view
the competitive market and introduction of new technology. The firms or businesses need
to focus on their established strengths to exploit the market opportunities and conquer the
external threats, sidewise working on their weaknesses (Robinson, 2007, p. 9).

Increase in complexity and pace of the global businesses, there is requirement of adoption
of flexible, innovative and responsive solution by small and medium enterprises (SMEs).
Today, local retailers are needed to compete with global players; this is why they need to
focus on innovation for creating competitive advantage (Robinson, 2008, p. 273 (1)).

Multi and omni-channel has been adopted by the retailers to compete in international
market, the multi-and omni-channel employs cross channel strategies like e-commerce,
mobile applications, social media and physical location, to integrate user experience by
enhancing the customer values and interacting with them at multiple avenues (Hole, et al.,
2019, p. 3(3)).

Present research work will focus on the potential advantage of multi-and omni-channel
strategies for the local retailers. The objective of the research is to investigate the potential
of multi and omni-channle marketing strategy for the local retailers, to understand and
develop the relationship between multi and omni-channel market strategy and customer
satisfaction and to understand the fundamentals and benefits related to adoption of multi
and omni-channel market strategy. Also, the shortcomings or disadvantages of the multi-
and omni-channel will also be discussed from point of view of local retailers.
Research question:
The aim of this research investigation is establish the relationship with the omni channel
strategy and other important factors that could help the local retail businesses like IPL
Retail Group to make success market presence despite the tough competition from the
international companies. Research question arise out of initial research are:

 Can the multi and omni-channel strategy help the local retailers to achieve
competitive advantage?
 Identifying the companies operating the multi and omni-channel strategy, how it has
benefited sales and customer satisfaction?
 What are the multi and omni-channel marketing fundamentals that can be applied
by the firm to get maximum benefit?
Evidence of understanding and academic argument:
In era of data analytics companies are using marketing engines which are
recommending products to the users. Based on the needs and search preferences of the
customers, these engines are providing the opportunity to provide personalized services.
As per the survey of PwC in Mumbai, India, there was drastic change in the customer
behavior and preference especially in the retail avenues. Indian customers are rapidly
adopting the omni-channel approach of making purchases (PwC, 2016, p. 1).

Logistic Service Quality dimension; conditions, timeliness and availability are the factors
that affect the customers; it enhances their loyalty and satisfaction (Murfield, et al., 2017,
pp. 264-265).

In the last three to four decades digital change has biggest impact on the retail
industry, major change is due to the omin channel market strategy where customers are
lured through online platforms like social networking and mobile applications etc.
Customers have started searching products online, comparing and reviews feedbacks of
previous users. As per the Times magazine survey, around 50% of the retails sales
happened through omni-channel concept of marketing (Rigby, et al., 2012, pp. 3-4).

The advances in the digital technology have pushed for omni-channel adoption,
many big companies like Amazon, Walmart and Whole Foods etc. are merging and
acquiring local digital intuitive startups/companies to fetch more customers by imparting
seamless and effective shopping experience (Gensler, et al., 2012, p. 989).

Many companies are effectively using omni-channel strategies; Crate & Barrel
company uses their wedding card gift registry to provide seamless shopping experience to
their customers. The company has developed the online system in such a way that the
server of the company saves the customer sign in details from their e-commerce shopping
cart and enables them to further initiate the purchase from other devices like mobile or
tablet. Similarly, the famous international brand “Starbucks” is among the successful
initiatives where they provide reward “Stars” to the customer, they can buy free coffee with
the stars. In addition to that the customers get rewards on their birthdays etc. this
increases the customer experience and satisfaction (Hole, et al., 2019, p. 4(6)). .

Digital technical advances has provided the business many opportunities along with
challenges to exploit the market through omni-channel strategy. With advance interface
system with high quality graphics, excellence in omni-channel can be achieved to increase
the value to the customers (Öztürk & Okumuş, 2018, pp. 248-249).

In multi and omni-channel marketing strategy several channels of marketing are

integrated towards a single goal, each channel works separately to provide the unique and
satisfying shopping experience to the customers of every physical store in single
transaction as these channels are jointly managed. In this way the customer can have
diverse brand experience whenever they interact through firm website (Piotrowicz &
Cuthbertson, 2014, pp. 6-7).

Increase in IT and advances in digital technology has transformed the global

retailing market and has added various options in retailing formats which enable the
customer to interact with company through channel of their choice. In addition to the online
and physical stores the use of mobile application in smart phones, tablets, branded apps,
social media and other related components where the product is one touch or pop-up
away from the customer has transformed the entire user experience (Agatz, et al., 2008, p.
340).

Omni-channel strategy has been in extensive demand in recent global competition

scenario, it has gave rise to acute challenge among the companies to enhance their
channel experiences as of increasing customer demand and expectations. With increase
in use of social media, and mobile technology, the complexity in customer passage has
been created. This complex interaction of various channels has created dynamic customer
behavior (Piotrowicz & R., 2019, pp. 9-10).

In past couple of decades, customers are showing more interest on buying product
or services through online mode than through physical mode, after reviewing and
comparing. The change in trend has benefitted retail giants like Walmart, E-bay and
Amazon as they have facility and sources to provide products at cheaper rate and in
timeliness manner. The evolution of shopping trends has generated customer behavior of
mixed nature where they prefer buying certain things through online mode and certain
things through physical stores. Analysis of mixed customer behaviour can help the
organizations to grab opportunity in the market to achieve competitive advantage and
avoid threats to business (Teixeira & Gupta, 2015, p. 1).

Rise in IT based services and digital platforms have provided opportunity as well as
challenges to the local physical stores operators. The online channel has created a
bypassing passage to for the manufacturers and wholesalers where they can reach the
potential customers without the help of retailers. This bypassing channel has created cross
channel competition for the retailers; on the other hand the same channel has provided
opportunity to the local retailer to expand their customer base and tie-ups with the big
companies as suppliers (Jindal, et al., 2021, p. 270(1)).

There are various factors that are shaping the consumer behaviour such as
convenience, expectations, worldwide shipping infrastructure, multiple windows and review
of product quality through online customer feedback etc. Not only the young generation,
the older generation is also showing the interest in shifting to digital platform as of ease of
shopping. As of various channels of buying developed by the industry the customer
behaviour has developed multiple dimension, for example now customers also want to
touch, experience and try out the product before making final purchase, this led to
development of return policy of purchase through online channels. Hence, we can say that
the mixed combination of online and offline channels has been developed to satisfy the
need of the customers and meet their dynamic expectations (Güsken, et al., 2021, p. 5(2)).

In multi and omni-channel market strategy there is opportunity for the local retailers
to contact with customer through different channels, to collaborate with big brands and to
increase their penetration in the market. Customers feel satisfaction when there is
convenience in making purchase and they have different options to make the purchase as
per their mood. Earlier it were only large enterprises to use multi and omni-channel
strategies in which various sales windows are integrated and operated through centralized
system. Big enterprises have resources, funds, expertise and time to innovate and apply
different strategies whereas the local and small retailers lack in required resources and
time as per their customer base and sales scenarios. Sales tends to increase when same
product is sold through different channels and in present times local retailers can make
use of social media and mobile apps to compete with international rivals and create
competitive advantage (Bell, et al., 2018, pp. 1630-31).

Use of advance digital technology and platforms through integrations has put
challenges for conventional retail businesses as it requires expertise, assistance from third
party and separate finances. In order to survive the global competitive market the local
retailers need to use the digital technology for creating the competitive advantage using
their strengths. Another challenge that local retailer face is data analysis, customer data is
crucial for business strategies, large enterprises can hire the expertise for this work but for
small enterprises hiring such expert may not be viable. Barrier to use the data analytics
can be overcome as in today scenario other platforms like social media can provide help to
local investors by expanding their business reach (D’Hauwers, et al., 2020, pp. 55-56)
(D’Hauwers, et al., 2020, pp. 56-57).

Traditional and local retailers have some advantage over the international
companies as they are close to customers, their customer relationship can be felt and their
reputation, traditions, trusts and services are main factors to make loyal customers. Use of
technology for providing ease to the customer can be done through simple interventions
such as using an effective online site, taking order on cell phone, using social media
platforms for publicity and feedback from the customers. The authenticity, heritage, social
proximity, nostalgia and legitimacy of the local retailers can help them to create distinct
image in the market and make a difference from international players (Cuesta-Valino, et
al., 2022, pp. 10-11).

Discussion:
Research findings:
After reviewing the relevant resources and market models the facts concerning to multi
and omni-channel market strategy are:

 Customer uses their mobiles or other digital devices to search for the products,
compare the products and discounts available at different avenues, on the other
hand in offline stores they need to visit different stores for comparison and pricing
which is not convenient when compared to online research.
 Customers are more likely to lure to the physical stores when they get personalized
messages for discounts and offers (Agatz, et al., 2008).
 Local retailers are moving towards use of social media platforms and promoting
their products and offers.
 Local retailers if they need to operate through multi and omni-channel marketing
strategy then they need to get required expertise in inventory management and
train their employees in order to maintain smooth flow of sales through different
channels.
 The preferences that customer makes in online and offline purchase can help local
retailers to design their market plan in such as way they can get maximum benefits
through mixed sales.

In digital world retailers need to accept the challenges that come along with the rise in
sales, in multi and omni-channels marketing the retailers will be in constant pressure to
deliver different products orders at a time through different windows, to manage the
inventory, to deliver product through proper window, in particular time and in particular
way. The research will be focus on how small retailers can manage such a pressure and
complex sales strategy. There is need that retailers must develop their own sales channel
by identifying all the barriers and innovating the ways to implement them.

In touch market competition there is risk where a local retailer might fail to manage the
inventory and provide the particular product to the customer at the particular price and at a
particular time. Hence, the importance should be given to the terms the retailers are going
to provide to the customers as per their ability and keep the promise with the customers by
providing the ordered product as per the terms. Thus, fulfilling the expectation of the
customers can enhance the satisfaction and reputation of the brand.

How the multi and omni-channel strategy can be applied to achieve goals:
 Firm has to optimize their delivery modes.
 Firm need to enhance their delivery speed as the customer expect on time
delivery.
 Management and streamlining of inventory.
 Streamlining the multi and omni-channel sales operation my improving the
cross–channel process in the firm stores.
 Consolidation of physical stores and online inventories, and then effective
allocation can reduce the burden in management of inventory and cost related to
it (Hübner, et al., 2016, p. 255).
 Loyalty rewards, offers and discount coupons can lure more customer into the
stores.
 Perfect and hassle free return policy and product availability is vital to compete
in market through multi and omni-channel market strategy.
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