SHINY PROVISION STORE

RETAILLING CHALLENGES IN INDIAN

CONTEXT

Submitted By :-
Angad Bir Singh
A1802013203
MBA-IB
Sem-IV
FLOW OF PRESENTATION
 Objective
 History of Retail India

 Shopping Orientation in Evolving Indian Market

 Reliance Fresh and Shiny Provision Stores

 Modern Retail’s Impact on Kirana Stores

 Demographic Segmentation

 Customer Analysis

 Image Analysis

 Recommendation
OBJECTIVE
 To highlight the importance of analyzing the retail
strategy of Kirana Stores.
 Recommending strategies to strengthen the position in
the Retail Industry and compete with modern retail
outlets.
HISTORY OF RETAIL
 Traced past to Indus Valley Civilization
 Barter System

 Fairs : Periodically Conducted market places

 Shandies : Weekly Markets

 Village Shopkeepers: Merchants going out of village for

trade
 Public Distribution Shops : Govt. run chains
GROWTH OF RETAILING
 At the time of independence the focus was more on basic
amenities rather than luxury
 In 1950, there were 0.25 Million retail outlets

 In 1978, 2.335 Million retail outlets or 3.7 shops per

1000 persons.
 In 1997, 5.13 shops per 1000 persons.

 In 2005, 10.51 shops per 1000 persons.

 Indian retailing industry was dominated by kirana stores.

RETAIL MARKET OF INDIA
 Largely unorganized
 Food consumptions is close to Rs. 9000 Billion

 Rs. 3300 Billion urban food consumption

 Indian households spend 48% highest in world on food

KIRANA STORES
 “Mom and Pop” of the west
 Owner and family members manning the store

 Small floor footage

 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

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

MODERN RETAIL OUTLETS
 Reliance Fresh located in BTM, Bangalore
 Store area 3000-3500 Sq. ft..

 Deals in branded products

 Attractive
MODERN RETAIL OUTLETS
SHOPPING ORIENTATION IN
THE EVOLVING INDIAN
MARKET
INTRODUCTION
• Studies on shoppers limited to their time and spending
pattern, demographic profile and preferences for a particular
format.
• Study attempts to understand shoppers from their
disposition towards shopping.
• Shoppers seek emotional value more than functional value.
Shopping is considered to be a task.
• Some similarities and some differences in the orientation of
Indian shoppers and shoppers from developed countries.
INTRODUCTION (CONTD.)

 Some distinct aspects of Indian shoppers:

 Post –purchase information management and bargaining.
 Definition of convenience which is proximity to home, work
place as well as the places that the shoppers frequent.
 Shoppers are clustered into two segments:
 Fun shoppers
 Work shoppers
PRIOR RESEARCH REVIEW
Chicago Westbrook
Stone >60% are
Tribune and Black
(1955) (1985)
(1955) economical
Economic Dependent and
apathetical
thinkers

Personalizing Compulsive

Ethical Individualistic

Apathetic
PRIOR RESEARCH REVIEW
• A transition in the environment to which shoppers are
exposed for some past years.
• New formats are being tried for improved customer
value such as Subhiksha.
• Shoppers attach more importance to ambience and
facilities at store (Sinha, Banerjee and Uniyal, 2002).
METHODOLOGY
• Study conducted among 300 respondents.
• Structured questionnaire got filled from shoppers
outside the store they had visited on that day.
• Stores dealt with grocery, apparels, household
appliances, books and music, shoes, lifestyle products
like cards and gift items, cosmetics and medicines.
• Study focused on both old and new format stores.
METHODOLOGY
 Questionnaire generated constituted four constructs:
 Pre-shopping information search
 Processing of information while shopping
 Post-purchase information management
 Gratification derived out of shopping.
 Each construct was tested for reliability. Results
suggested to retain all the final statements.
 Composite scale consisting of all constructs used having
Cronbach Alpha value of 0.74.
METHODOLOGY
• Factor analysis yields 13 factors on factor analysis of 286
responses.
• K-mean cluster analysis used to predict profile of shoppers
based on their orientation.
• CART analysis to find out major variables that
discriminated the clusters, generated out of cluster
analysis. Classification is based on age, SEC, frequency of
visits, gender, marital status, types of stores they visited
and product class they purchased.
ORIENTATION TOWARDS SHOPPING
ORIENTATION BASED SHOPPER
TYPOLOGY: WORK VS. FUN

Shoppers can be divided into two segments:

I. Fun shoppers
II. Work shoppers

Data is supported by K-mean cluster analysis

SHINY VS. RELIANCE
 Both were located in main area of BTM 2 KM apart
 Both carried similar categories of products

 Shiny provided door delivery service

 Vicinity for both was same

1. IMPACT OF MODERN RETAILING ON
KIRANA CUSTOMERS
 Reliance store outscored Shiny on Aesthetic Image
 Atmosphere
 Attractivelayout
 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
2. DEMOGRAPHIC SEGMENTATION
 High Income group preferred spend more at Reliance
Fresh
 Reliance was preferred for Branded Items

 Reliance scored better on Activities, Interests, Opinions

study
DIFFERENTLY PERCEIVED DIMENSIONS
OF THE MODERN OUTLET
 Low Income
 Attractive layout
 Good Display all over
 Attractive and informative display
 Price of the product
 Return of purchases
 Helpful sales, clerical staff
DIFFERENTLY PERCEIVED DIMENSIONS
OF THE MODERN OUTLET
 Medium/High Income
 Quality
 Checkout delay
 Dressing of store staff
 Store atmosphere
 Product placing
 One stop facility
 Exclusive product assortments
 Brands
3. 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
Total expenditure
4. 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
5. 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