Shiny Provision Store

Presented by
Group K
Case facts

Shiny provision store is one of the many traditional retail outlets in Bangalore
area
It faced stiff competition from increasing presence of modern retailers
A market researcher was hired to develop a strategy to help the business
survive in this environment
Advantages of local retailers over modern ones:
Locational advantage
Informal interactions with customers and influence their buying decisions
Extend credit and door-delivery service
Retail in India

Influenced by geographic, cultural, demographic and psychographic

diversity
Traditional retail formats:
Fairs
Shandies
Village shopkeepers
Public Distribution Shops
Modern retail formats:
Organized retail : Supermarkets, Dept. Stores, Hypermarkets, Specialized killer
stores
Unorganized retail : Kirana shop(strong presence in India)
 Average Monthly Expenditure on Groceries/Vegetables/Fruits
Reliance fresh Shiny Provision Store
8000

7000

6000

5000

4000

3000

2000

1000

0
<10000 10000-20000 20000-30000 30000-40000 40000-50000 >50000
 %Age of expenditure on Groceries/Vegetables and Fruits
Reliance Fresh Shiny Provision
95

90

85

80

75

70

65
<10000 10000-20000 20000-30000 30000-40000 40000-50000 >50000
Expenditure Pattern

One third population belong to <10000 INR Income class

People from all Income classes were increasingly spending at Reliance
Reliance was preferred destination for purchasing branded goods
Average %age monthly spending at Reliance was more for lower income
group (<10000)
Consumers with higher incomes preferred Reliance fresh over Shiny Store
Retail Sales potential

The lowest income group: <10000 INR has equal monthly average
expenditures in both Reliance Fresh and Shiny Store
For the next income group: 10000-20000 INR, the difference between
average monthly expenditure is just 400
Households in these two income groups form 62% of the total households in
the area
Hence, these income groups represent the highest sales potential
 Comparison of Retail Image rating

Parameter Reliance Fresh Shiny Provision Opinion

Store
Aesthestic Image 3.87 3.14 Reliance Fresh is better
Product/Brand Image 3.62 4.61 Shiny Provision Store is
better
Merchandising/Stocks/va 3.86 3.29 Reliance Fresh is better
riety
Store Service 3.84 3.29 Reliance Fresh is better
Store Personnel 3.82 3.33 Reliance Fresh is better
 Comparison of Psychographic rating

Parameter Reliance Fresh Shiny Provision Opinion

Store

Activities 3.51 3.19 Reliance Fresh is better

Interests 3.61 3.22 Reliance fresh is better

Opinions 3.65 3.37 Reliance Fresh is better

Recommendations

Focus on improving retail image ratings

The layout of the store and placing of the products should be organized
Improve merchandising/variety by increasing number of brands available
Keep well-dressed and helpful sales personnel
Focus on improving psychographic ratings as consumer preference has
inclined towards convenience and other services of modern retailers
Target consumers in low income group: <20000 INR
Advertise and increase visibility in local area