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 Retails 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

Stone
(1955)

Economic

Chicago
Tribune
(1955)

Dependent

Personalizin
g

Compulsive

Ethical

Individualis
tic

Apathetic

Westbroo
k and
Black
(1985)

>60% are
economical
and
apathetical
thinkers

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
Processing

information search

of information while shopping

Post-purchase
Gratification

information management

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
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

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