Shiny Provision Store: Retailing Challenges In the Indian Context

By Group 3: Gautam Hariharan 12P137 Mohit Ambwani 12P152 Nikhil Rana 12P153 Prabhat Singh 12P154 Pratik Nagori 12P155

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 1950

No . of Shops (millions) 0.25

1978
1997 2005

2.335
5.13 12.77

Organized vs Unorganized
Unorganized retailing: a) Operated by a single owner b) Lacks technical standards

c) Lacks Accounting standards

Organized retailing:
a) Transparency in accounting b) Organized SCM c) Centralized quality control d) Centralized sourcing e) Not a standalone shop

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

Types of Modern retailing formats

Supermarkets: a) Includes food and household products e.g.: Food World, More & Nilgiris Factory Outlets: a) Present in Urban areas b) Out of Vogue products sold at discount rates
e.g.: Louis Philippe in apparel, Nike in footwear, etc.

Departmental Stores: a) Includes life style driven products

e.g.: Lifestyle, Shoppers Stop, Westside, etc.

Hypermarkets: a) Large volume driven discount based stores e.g.: Reliance Fresh, Big Bazar

Specialized Killer stores: a) Extensive range of products under a single category e.g.: Croma, Vivek & Co.

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

4Ps of Marketing: Kirana Vs MRO

PRODUCT MODERN RETAIL OUTLETS Variety in each category KIRANA STORES Product SKUs are limited Located in densely populated area Located on busy cross-roads PLACE MODERN RETAIL OUTLETS KIRANA STORES

Expensive as well as low Cheaper and daily use end items items More attraction of branded products Unbranded products

Area: 3000-3500 sq. ft.

Area: 600-1000 sq. ft.

PRICE MODERN RETAIL OUTLETS KIRANA STORES

PROMOTION MODERN RETAIL OUTLETS Promotion in regional and national level Loyalty Card Scheme No such Provision KIRANA STORES Promotion is a rare event Bargains with regular customers Provide free home delivery

Synergy due to bulk purchasing

Central warehousing and transportation

Variable depending on type of consumer

No proper SCM in place

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 to Reliance Changing shopping pattern i.e. working class preferring bulk shopping on weekends at the Reliance where they find other refreshing activities and offers

Differently perceived dimensions of the modern outlet

Medium/High Income Low Income Quality Attractive layout Checkout delay Good Display all over Dressing of store staff Attractive and informative display Store atmosphere Price of the product Product placing Return of purchases One stop facility Helpful sales, clerical staff Exclusive product assortments Brands

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

Expenditure Pattern
One third population belong to <10000 INR Income class People from all Income classes were spending more at Reliance Reliance was preferred destination for purchasing branded goods Average % monthly spending at Reliance was more for lower income group

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.

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.

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

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.

Thank you