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Next Practices Retail: The Indian Perspective

The document discusses next practices in Indian retail, focusing on 10 key areas: 1) Back to basics practices like commodities in steel containers and exchange offers. 2) Understanding shopper behavior like impulse purchases. 3) Shopper marketing to influence shoppers. 4) Category management through retailer-manufacturer partnerships. 5) Using private labels as a differentiator. 6) Direct product profitability analysis. 7) Basket analysis to see what else customers could buy. 8) Visual merchandising as both an art and a science. 9) Experience management through customer delight. 10) Demonstrating loyalty to customers beyond traditional CRM. The document provides insights and examples for Indian retailers to improve performance in these areas.

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69 views30 pages

Next Practices Retail: The Indian Perspective

The document discusses next practices in Indian retail, focusing on 10 key areas: 1) Back to basics practices like commodities in steel containers and exchange offers. 2) Understanding shopper behavior like impulse purchases. 3) Shopper marketing to influence shoppers. 4) Category management through retailer-manufacturer partnerships. 5) Using private labels as a differentiator. 6) Direct product profitability analysis. 7) Basket analysis to see what else customers could buy. 8) Visual merchandising as both an art and a science. 9) Experience management through customer delight. 10) Demonstrating loyalty to customers beyond traditional CRM. The document provides insights and examples for Indian retailers to improve performance in these areas.

Uploaded by

Vt Thomas
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Next Practices Retail

The Indian Perspective


The Golden Bird

Sone ki Chidiya
Next Practices ?????
Best Practices ?????
# 1Back to Basics

Old is Gold
Back to Basics
• Old is Gold
• Commodities in Steel Containers
• Exchange offers
• MBWA
# 2 Shopper Behavior

On the Shop floor the Consumer


metamorphosis into a new
Animal
THE SHOPPER
# 2 Shopper Behavior
• More than 70% of purchasing decisions
are made in-store
• Impulse Purchase
• Same shopper behaves differently in
different Store Formats
• Managing Non Shoppers
# 3 Shopper Marketing

Converting Shoppers into Buyers


# 3 Shopper Marketing
• Influencing them while they in the ACT of
Shopping
• Store is the second largest source of
awareness, after Television, for
information on brands and products.
• Advertisement spend ( BTL) for Shopper
Marketing is increasing
• L'Oreal , Coco Cola, HUL pioneers in India
• New source of additional revenue for
retailers
# 4 Category Management

Providing Total Solutions to the


Consumer
Category Management
• Retailer – Manufacturer Partnership
• Products are grouped together into
categories to reflect consumer needs
based on how the product is used
/consumed/purchased.
• SKU management to SBU Management
Category
Management
Business Process
Category
Definition
Category Role

Category
Review
Category
Assessment
Category
Scorecard
Category
Strategies
Category
Tactics
Plan
Implementation
# 5 Private Labels

Private Labels as a major


Differentiator
Types of Private Labels
• Generic
• Copycat
• Premium Store Brands
• Value Innovators
Who’s the World’s largest
FMCG Manufacturer ??
Private Label sales
Company Sales Share of PL Sales
$ Billion PL % $ Billion

Wal Mart 408 40% 163

Carrefour 121 25% 30

Tesco 90 50% 45
Sales Comparison
Rank( F-500 Company Sales P L Sales
$ Billion $ Billion

1 Wal Mart* 408 163


22 Carrefour* 121 30
44 Nestle 99
57 Metro* 91 NA( 50 )
58 Tesco* 90 45
66 P&G 80
121 Unilever 55
P L Next Practices- India
• Pricing “AT Par” with National Brands –
Tasty Treat Cornflakes – Kellogs
• Creating premium Brands – Premium
Harvest pulses
• Gaining Leadership positions : Tasty Treat
–Ketchup –forced Kissan to drop prices
• Value Innovators - Westside
# 6 Direct Product Profitability
DPP
• Allocating cost involved for Space,
Manpower & Shrinkage/waste & electricity
etc. to find out profitability of a Category.

• GMROI : Gross Margin Return on


Inventory
• GMROF : Gross Margin Return on Space
• GMROL : Gross margin Return on
Employee
# 7 Basket Analysis
Counting Holes in the basket

Finding Share of the Wardrobe


Basket Analysis
• Analysing the Basket not only for what a
customer bought but to find out what else
they could have possibly bought.
• Analysing the purchase pattern (apparels)
to find out what items of their wardrobe is
not being bought from the Retailer.
# 8 Visual Merchandising

Art or Science ???


Science of VM
• Retail Anthropology
• Space Planning
• Store Design
• Circulation plans
• Store Fixtures
• Planograms
• Colour Blocking
# 9 Experience Management

Customer Experience Management: CEM


Total Experience Management
Experience Management
• Influencing Shoppers perceptions
• Mapping & Managing ‘Moments of Truth’
• Creating ‘Customer Delight’ & WOW
# 10 Beyond CRM

It’s not how to make the customer


loyal to you
BUT
How to Demonstrate your
Loyalty to your customer
Go
Back to basics
Learn from
‘KIRANAWALAs’
Thank You

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