 Traditionally retailing in India can be traced to

 The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the
consumers
 Era of government support for rural retail: Indigenous franchise model of
store chains run by Khadi & Village Industries Commission
 1980s experienced slow change as India began to open up economy.
 Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim first saw the emergence of retail chains
 Later Titan successfully created an organized retailing concept and established a
series of showrooms for its premium watches
 The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
 For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of shopping centers,
 mainly in urban areas, with facilities like car parking
 targeted to provide a complete destination experience for all segments of
society
 Emergence of hyper and super markets trying to provide customer with 3 V’s -
Value, Variety and Volume
 Expanding target consumer segment: The Sachet revolution - example of reaching
to the bottom of the pyramid.
 At year end of 2000 the size of the Indian organized retail industry is estimated at
Rs. 13,000 crore


 Retailing is still in its infancy in India. In the name of retailing, the
unorganised retailing has dominated the Indian landscape so
far.

 According to an estimate the unorganized retail sector has 97%
presence whereas the organized accounts for merely 3% .
Industry has already predicted a trillion dollar market in retail
sector in India by 2010.

 However, the retail industry in India is undergoing a major shake-
up as the country is witnessing a retail revolution. The old
traditional formats are slowly changing into more complex and
bigger formats.

 Malls and mega malls are coming up in almost all the places be it
– metros or the smaller cities, across the length and breadth
of the country.

 More than 99% retailer's function in less
than 500 square feet of shopping space.
 Global retail consultants KSA Technopak
have estimated that organized retailing in
India is expected to touch Rs 35,000
crore in the year 2005-06.
 The Indian retail sector is estimated at
around Rs 900,000 crore, of which the
organized sector accounts for a mere 2
per cent indicating a huge potential
market opportunity that is lying in the
waiting for the consumer-savvy organized
retailer
 10% annual growth in Retail market since
2000
 7% of the population is engaged in retailing
 A booming US$ 300 billion retail market in
India
 5.5 retail outlets per 1000 population,
highest in the world
 25-30% annual growth in retail loans and
credit cards

 The focus should be on branding the retail
business itself.There is no doubt that the
Indian retail scene is booming.
 A number of large corporate houses —Tata's,
Raheja's, Piramals's, Goenka's — have
already made their foray into this arena, with
beauty and health stores, supermarkets,
self-service music stores, new age book
stores, every-day-low-price stores,
computers and peripherals stores, office
equipment stores and home/building
construction stores. Today the organized
players have attacked every retail category.
 Key Trends in Urban India:
 * Retailing in India is witnessing a huge revamping exercise.
* Estimated to be US$ 200 billion, of which organized retailing (i.e.
modern trade) makes up 3 percent or US$ 6.4 billion.
* India is rated the fifth most attractive emerging retail market: a
potential goldmine
* Ranked second in a Global Retail Development Index of 30
developing countries drawn up by AT Kearney.
* India is rated the fifth most attractive emerging retail market: a
potential goldmine
* Food and apparel retailing key drivers of growth.
* Organized retailing in India has been largely an urban
phenomenon with affluent classes and growing number of double-
income households.

 The trends that are driving the growth of
the retail sector in India are
 Low share of organized retailing
 Falling real estate prices
 Increase in disposable income and
customer aspiration
 Increase in expenditure for luxury items

 Key Trends in Rural India:
 * Rural markets emerging as a huge
opportunity for retailers reflected in the
share of the rural market across most
categories of consumption

* ITC is experimenting with retailing

through its e-Choupal and Choupal
Sagar – rural hypermarkets
Strategies

Right Positioning
 The effectiveness of the mall developer's
communication of the offering to the
target customers determines how well
the mall gets positioned in their minds.
 This implies that the message conveyed
to the target customers must be
effective enough in differentiating the
mall's offering from that of its
competitors without even naming them.
 The message should also clearly convey to the target
audience that the mall offers them exactly what
they call the complete shopping-cum-
entertainment point that meets all their
expectations.
 The mall developer can create awareness about the
offering among the target customers in a number
of ways. Various communication tools available to
the mall developer for this purpose may include
advertising, buzz marketing (WoM), celebrity
endorsement, use of print media, press releases
and viral marketing .Once the message is being
conveyed through these channels, the mall
developer must add a personal touch to his
message by carrying out a door-to-door campaign
in order to reinforce the message.

 The Four Broad
Positioning Strategies

Broad
Bloomingdale’s Wal-Mart
Breadth of
Prod. Line
Sunglass
Tiffany
Narrow Hut

High Value added Low

Effective Visual
Communication


§ Retailers now a days are giving more

emphasis on display visual
merchandising, lighting, signages and
specialized props.
§ The visual communication strategy might
be planned and also be brand
positioned.
Strong Supply Chain
 Retailer has to develop innovative
solution for managing the supply chain
problems.
 Innovative solutions like performance
management, frequent sales
operation management, demand
planning, inventory planning,
production planning, lean systems and
staff help retailers to get advantage
over competitors.

Nonstore Retailing
§ Direct selling

- $9 billion industry, selling door to door or at home
sales parties.

§ Direct marketing

– involves direct-mail, catalog marketing,
telemarketing, TV direct-response marketing and
electronic shopping.

§ Automatic vending
§ Buying service

- retailer serving a specific clientele.
Corporate Retailing and
Major Types
§ Corporate Chain Store – GAP example.
§ Voluntary Chain – IGA example.
§ Retailer Cooperative – ACE hardware example.
§ Consumer Cooperative – retail store owned by
its customers.

§ Franchise Org. – McDonald’s, Pizza Hut examples.

§ Merchandising Conglomerate – Allied Domeq
PLC.
TYPES OF MARKETING
RESEARCH IN RETAIL
Three Types to Cover
1. Prearranged Focus Groups
2. Quick Shot Study
3. Data Mining
4.
Prearranged Focus Group
§ Similar to a regular focus group
§ Qualified professional mediator
§ Screened or well chosen subjects for group
§ Small group in comfortable setting
§ Essentially one difference
§ Must have group at finger tips
§ Keep key professionals/customers close
at hand for arranging a timely study
Quick-shot Study
§ Telephone or Email
§ Adequate sized sample
§ With a few pertinent questions
§ Key features / takeaways
§ Cycle time can be as short as 24 hours
§ Most up-to-date information

Data Mining
§ Industry term: Retail Information
System
§ Objectives
§ Anticipates the information needs of retail
strategists
§ Collects, organizes, analyzes, & stores relevant
data
§ Signals successes, changes, and info for new
tactics
§ Types of uses
§ Customer and Vendor research
§ Evaluation of Product Sales
§ Evaluation of promotions and responses
Various Retail Co’s.
Strategy
 Big Bazar
 Giants
 Shoprite
 Lifestyle
 Pantaloon
 Landmark
 Indus Fila
 Fame Adlabs
 PVR Cinemas
 Big Bazar
 Big Bazar, is the chain of
retail stores of the big
banner Pantaloon
Retail (India) Ltd.,
 customer friendly
ambiance and the
organized retailing of
products also makes
Big Bazar one of the
successful retail
companies in India


 Big Bazar
 Moreover shopping here
is further made a
memorable
experience with the
varied rates of
discounts on products
as well as discount
vouchers available in
a variety of amounts,
like INR 2000, INR
3000, INR 4000, INR
5000 and INR 10000
on all Big Bazar
products and
accessories.
 The added advantage
for the customers
shopping in Big
Bazar is that there
are all time
discounts and
promotional offers
going on in the Big
Bazar on its salable
products.
. It has different
features which
caters all the needs
of the shoppers
 Giant
 Giants is the
hypermarket
organized under the
banner of the RPG
Enterprises from the
year 2004.
 Through these the
customers can get
connected with the
brand owners and
fulfill their
requirements as per
choice.
 Giants is the second
in the list of 21
other
hypermarkets in
line. There are
Giant
hypermarket
stores in different
parts of India like
in Delhi, Chennai,
Vizag, Chandigarh,
Jaipur, Kochi and
Pune.

 hypermarket Giants
always have been
providing excellent
quality products to
their customers at the
most convenient and
affordable prices. The
shopping experience
at the Giants is so
memorable that often
the products of this
hypermarket is
referred by the
customers as
beautiful, strong and
cheap found within the
same package
 Moreover there are
discounts and
other promotional
offers to attract
more and more
shoppers to shop
in the Giants. The
discount on the
products of
Giants might
range from 4 to 40
%.
 Giants are in direct trade
relation with the farmers,
which definitely rules out
the possibilities of any
types of disintegration in
the distribution system
and waste of the
products. The Giants
have been targeting the
customer group with an
annual income of about
Rs 75,000 per annum,
with the market size
estimated to be between
Rs 75,000 crore to Rs
80,000 crore.
 Some of the great
operations of the
Giants in India are
like-
 Giants expands its range
of offerings with new
choices
 Giants for the small
retailers developed a
new model
 Giants provides better
advice to the farmers
 Giants looks to it that the
customers gets better
value for their
purchases

 Lifestyle
 Lifestyle in India was first founded in the
year 1999, under the initiative of the
retail chain of company, Lifestyle
International.

 The first lifestyle store was introduced in
Chennai. In the year 2004, the turnover
of the retail store was Rs 240 crore.
 The Lifestyle India is originally a part of
the Landmark Group based in Dubai
in middle east. It has a flourishing
business out there with earning a
revenue of nearly $600 million in the
year 2004.