2-Retail Formats in India

Retail Formats In India
Jitendra Kumar Dixit
Types of Retail Formats in India

1.Traditional Kirana Stores (Mom-and-pop Stores )
2.General Stores
3.Convince stores
4.Grocessory Stores
5.Departmental Stores
6. Kiosks
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JITENDRA KUMAR DIXIT
Retail Formats Store Based Non-store Based
Ownership Based
1. 2. 3. 4. 5. Independent Retailer Chain Store Franchising Leased Departments Vertical Marketing System 6. Consumer Co-operatives
Merchandise Based
Traditional
1. Direct Marketing 2. Vending Machines 3. Catalogue Marketing 4. Tele -Marketing 5. TV Home Shopping
Nontraditional
1. Electronic Shopping 2. Video Kiosk 3. Airport Retailing
Food
1. Convenience Store 2. Conventional Super Market 3. Food Based Super Stores 4. Combination Stores
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General Merchandise
1. Discount Stores 2. Specialty Stores 3. Factory Outlet Stores 4. Hyper Markets 5. Departmental Stores 6. Membership Club JITENDRA KUMAR DIXIT
Format Type
Hyper Stores Specialty Stores Department Stores Discount Stores
Variety
Broad Narrow Broad Average
Assortmen Pricing t Policy

Very Deep Broad Average Low to Deep High
Service
Low High
Size(sq.ft Location .)
100-300 4-12 100-200 20-30 Malls Malls Companies outlets & malls
Average to Average High to high Low Low
Factory Outlet
Narrow
Very Deep
Low
low
50-120
Stand alone stripe centre
Membership Club
Average
Limited
Low
low
Vary from club to club
Members store/institu tional areas

4
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Ownership Forms
Independent Chain
Archies BigBazar Lifestyle Store McDonalds Mobile Store Pizza Hut KFC Caf Coffee Day
Leased department Vertical marketing system

a) b) c) Independent Firms VMS Partially integrated VMS Fully integrated VMS
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Franchise(French word means honesty or freedom)

Aptech Dominos Pizza Koutons Sagar Ratna Vishal Mega Mart McDonalds
Types Of Franchisinga) Product or a trademark Franchising b) Business Format Franchising c) Area Development Franchising System
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Competitive State of Independents

Advantages Flexibility in formats, locations, and strategy Control over investment costs and personnel functions, strategies Personal image Consistency and independence Strong entrepreneurial leadership Disadvantages Lack of bargaining power Lack of economies of scale Labor intensive operations Over-dependence on owner Limited long-run planning
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Store-based Retail Mix

Convenience store Modern kirana stores(area ranging from 2000-3000 sq.ft.) Positive Aspect
a. b. c. d. Quick Shopping Less checkout time Self service level Long shopping hours
Negative Aspectsa. Limited product ranges b. High pricing c. Small stores
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Supermarket/Super- stores (area ranges from

20,000 to 50,000 sq.ft)
FeaturesLocation : Near/Edge of town Size : Large Product Range : Vast range, deep & broad Pricing policy: Low pricing Selling theme: Every Day Low Pricing(ELDP) Target Market: Mass Atmosphere: Busy & well organized Service Level: Self services
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Combination store/Super-centers- A super centers is a

combination of super market and a discount retail store. Super centers usually have a average size of about 1,50,000 sq.ft and allot 30-40% of their retail space to grocery items and remaining to discounted general merchandise. Discount storesa) Limited line discount stores b) Full line discount stores c) Off-price stores
Specialty store Factory outlet Flea market

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Hyper MarketSelling area: >50,000 sq.ft Cash counters: 20-60 Number of items sold: thousand to lakhs Number of employees: Hundred to thousands Covered area: up to 60% Pricing policy: Special (discounted) Discount:4-405 Central theme: Is se sasta kahi nahi Service level: Self services Payment mode: Cash/credit/debit cards Owner ship structure: Corporate chain
Competitive State of Store based Retail Mix

Advantages Disadvantages
Limited flexibility Bargaining power Cost efficiencies Higher investment costs Efficiency from Complex managerial computerization, sharing control warehouse and other functions Defined management philosophy Considerable efforts in long-run planning
Nonstore-based Retail Mix (Non-traditional Retailing)

Direct Response Marketing
a. Catalogue/ Mail order Retailing b. Television Shopping c. Electronic Shopping/Electronic Retailing
Direct selling World Wide Web Vending machine
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Video Kiosk
a. b. c. d. e. f. g. h. Digital Menu board Digital Order Station Financial services Kiosk Internet Print Station Internet Kiosk Movie tickets POS-related Vending Kiosk
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Few Indian Retailers

Next retail India Ltd RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers Super, Daily & Fresh Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, E-Zone etc. The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.
Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World Aditya Birla Group - more Outlets
Convenience Store Strategy Mix

Location: Neighborhood
Prices: Average to Above average
Merchandise: Medium width and low depth of assortment; average quality
Atmosphere and Services: Average
Promotion: Moderate
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Conventional Supermarket Strategy Mix

Location: Neighborhood Prices: Competitive
Merchandise: Extensive width and depth of assortment; average quality; manufacturer, private, and generic brands

Promotion: Heavy use of newspapers, flyers, and coupons
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Combination Store Strategy Mix

Location: Community shopping center or isolated site
Prices: Competitive
Merchandise: Full assortment plus health and beauty aids and general merchandise
Promotion: Heavy use of newspapers, flyers
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Specialty Store Strategy Mix

Location: Business district or shopping center Prices: Competitive to Above average
Merchandise: Very narrow width and extensive depth of assortment; average to good quality
Atmosphere and Services: Average to excellent
Promotion: Heavy use of displays Extensive sales force
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Traditional Department Store Strategy Mix

Location: Business district, shopping center or isolated store Prices: Average to Above average
Merchandise: Extensive width and depth of assortment; average to good quality
Atmosphere and Services: Good to excellent

Promotion: Heavy ad and catalog use; direct mail; personal selling
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Full-line Discount Store Strategy Mix

Location: Business district, shopping center or isolated store
Prices: Competitive
Merchandise: Extensive width and depth of assortment; average to good quality
Atmosphere/ Services: Slightly below average to average
Promotion: Heavy on newspapers; price-oriented; selling
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21
Variety Store Strategy Mix

Prices: Average
Merchandise: Good width and some depth of assortment; below-average to average quality
Atmosphere/ Services: Below average
Promotion: Use of newspapers
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22
Off-Price Chain Strategy Mix

Prices: Low
Merchandise: Moderate width and poor depth of assortment; average to good quality; low continuity
Atmosphere/ Services: Below average
Promotion: Use of newspapers; brands not advertised; limited selling

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Flea Market Strategy Mix

Location: Isolated store
Prices: Very Low
Merchandise: Extensive width and poor depth of assortment; low continuity; variable quality
Atmosphere/ Services: Very low
Promotion: Limited
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Store-Based Strategy Mix

A strategy mix is the firms particular combination of:
store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods
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The Wheel of Retailing
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Retail Life Cycle Retail institutions pass through identifiable life stages
introduction growth maturity decline
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Identifying and Understanding Consumers

What Makes Retail Shoppers Tick
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Demographics
consumer data that is objective, quantifiable, easily identifiable, measurable
Lifestyles
ways in which consumers and families live and spend time and spend money
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Understanding Consumer Lifestyles: Social Factors
Culture
Reference Groups
Social Class
Lifestyle
Time Utilization
Household Life Cycle
Family Life Cycle
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Understanding Consumer Lifestyles: Psychological Factors
Personality
Attitudes
Perceived Risk
Lifestyle
Class Consciousness
Purchase Importance
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The Consumer Decision Process

A-The Decision Process
Problem Awareness Information Search
Stimulus
Evaluation of Alternatives
Purchase
PostPurchase
--------------------
B-Factors affecting the process
Demographics
Life Style
--------- Solid arrow connect all the elements in the decision process & show the impact of 3/30/2012 JITENDRA KUMAR DIXIT 33 demographics & life-style up on the process.
The Impact of Perceived Risk on Consumers
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Marketing Strategy
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Types of Impulse Shopping Completely unplanned Partially unplanned Unplanned substitution
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Reasons for Leaving an Apparel Store Without Buying Cannot find an appealing style Cannot find the right size Nothing fits No sales help is available Cannot get in and out of the store easily Prices are too high In-store experience is stressful Cannot find a good value
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Institutional Change in Retailing
Wheel of Retailing Accordian Theory Dialectic Process Natural Selection Retail Life Cycle
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Wheel of Retailing
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Retail Accordian Theory

Broad-based outlets with wide assortment More specialized with narrow assortment Back to wide assortment
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Dialectic Process
Retailers mutually adapt in the face of competition from opposites When challenged by a competitor with a differential advantage, the established retailer will adopt strategies and tactics in the direction of that advantage (making the innovator less attractive)
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Dialectic Process
Thesis Department Stores
High Margin Low turnover High Price Full Service Downturn location
Synthesis Discount Department Store

Average Margin Average Turn-over Moderate Price Limited Services Sub urban locations
Anti-Thesis
Discount Stores
Low Margin High Turnover Low Price Low rent Location Self Service
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Natural Selection and Adaptive BehaviorEnvironmental need for a certain kind of retailing institution it will evolve Need ceases to exist the institution will tend to disappear Institutions that most effectively adapt to environmental changes are most likely to survive
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Retail Life Cycle

Introduction
Growth/ Accelerated Development Maturity Remodel stores Lower costs MIS technology Every day low prices Reevaluate mgt. practices and service Figure out how they can deliver value Decline
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2-Retail Formats in India

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Retail Formats In India

Jitendra Kumar Dixit

Types of Retail Formats in India

JITENDRA KUMAR DIXIT

Retail Formats Store Based Non-store Based

Assortmen Pricing t Policy

Average to Average High to high Low Low

Stand alone stripe centre

Vary from club to club

Members store/institu tional areas

JITENDRA KUMAR DIXIT

Leased department Vertical marketing system

Franchise(French word means honesty or freedom)

JITENDRA KUMAR DIXIT

Competitive State of Independents

JITENDRA KUMAR DIXIT

Store-based Retail Mix

Negative Aspectsa. Limited product ranges b. High pricing c. Small stores

JITENDRA KUMAR DIXIT

Supermarket/Super- stores (area ranges from

JITENDRA KUMAR DIXIT

Combination store/Super-centers- A super centers is a

Specialty store Factory outlet Flea market

Competitive State of Store based Retail Mix

Nonstore-based Retail Mix (Non-traditional Retailing)

Direct selling World Wide Web Vending machine

JITENDRA KUMAR DIXIT

JITENDRA KUMAR DIXIT

Few Indian Retailers

Convenience Store Strategy Mix

Prices: Average to Above average

Merchandise: Medium width and low depth of assortment; average quality

Atmosphere and Services: Average

JITENDRA KUMAR DIXIT

Conventional Supermarket Strategy Mix

Atmosphere and Services: Average

JITENDRA KUMAR DIXIT

Combination Store Strategy Mix

Atmosphere and Services: Average

Promotion: Heavy use of newspapers, flyers

JITENDRA KUMAR DIXIT

Specialty Store Strategy Mix

Atmosphere and Services: Average to excellent

Promotion: Heavy use of displays Extensive sales force

JITENDRA KUMAR DIXIT

Traditional Department Store Strategy Mix

Merchandise: Extensive width and depth of assortment; average to good quality

Atmosphere and Services: Good to excellent

JITENDRA KUMAR DIXIT

Full-line Discount Store Strategy Mix

Merchandise: Extensive width and depth of assortment; average to good quality

Atmosphere/ Services: Slightly below average to average

Promotion: Heavy on newspapers; price-oriented; selling

JITENDRA KUMAR DIXIT

Variety Store Strategy Mix

Atmosphere/ Services: Below average

Promotion: Use of newspapers

JITENDRA KUMAR DIXIT

Off-Price Chain Strategy Mix

Atmosphere/ Services: Below average

Promotion: Use of newspapers; brands not advertised; limited selling

JITENDRA KUMAR DIXIT

Flea Market Strategy Mix