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Retail shopper marketing - Course Outline
1. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
Retail Shopper Marketing
In developing as well as developed countries, shoppers integrate various types of
marketing stimuli received at home (e.g., on television), at work (e.g., on an office
computer), on the move (e.g., billboards), and in the store in order to arrive at a
purchase decision. This is making brand marketers pay close attention to âshopper
marketingâ, defined as âintegration of all marketing stimuli, developed based on a
deep understanding of shopper behavior, designed to build brand equity, engage the
shopper (e.g., a consumer in âshopping modeâ), and lead him/her to make a
purchaseâ.
In developing Asian and Latin American countries like India, China,
Philippines, Brazil and Argentina; and even in developed Asian nations like Japan
and South Korea, both the shopper and the retail systems are in transition. In
developing Asia and Latin America, even in the most advanced urban settings there
are no âtrue modern shoppersâ, nor are there âtrue modern outletsâ. Both the
consumer side and the retail side are in a transition spiral, and will remain so for the
foreseeable future. In these transitional settings, on the retailer side or the supply
side, there is a growing presence of self-service modern retailers, but the bulk of the
retailing is via the small and traditional General Trade Store (âKiranaâ store in India,
âSari Sariâ in South East Asia). Even urban shoppers who have easy access to
modern, self-service retail outlets â within easy walking reach â split their custom
between modern and traditional stores, usually with the dominant share of the
monthly shopping happening from traditional outlets.
It is important to differentiate between a âshopperâ and a âconsumerâ. A
shopper is a person who is a part of the shopping experience in the store
environment and is choosing the brand off the shelf. A consumer on the other hand
is the person who uses the brand. In the retail context of developing Asia and Latin
America, the shopper and the consumer are not necessarily the same person. The
shopper may be a family member (including often a child) who is not the end
2. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
consumer or user, a servant or an assistant or an employee, or a neighbor or friend.
Patterns of shopping and consuming arise in such settings that are considerably
more complex than in the predominantly self-service culture of the advanced
western countries.
This course is based on an ongoing study of shopper behavior in the traditional
retailing in urban settings of India, Philippines, Brazil and Argentina. Besides
interviews and ethnographic accounts from such retail settings, we also selectively
employed videotaping and still photography to delve into the processes that make
the traditional retail sectors very resilient and competitive in these countries.
Existing models of shopper marketing focus on modern retailing context, which are
not applicable to traditional retail formats in Asia/Latin America because of their
peculiar characteristics.Objective of the course is to dwell on models of shopper
marketing both in the modern retailing context as well as the traditional retailing
context.
Course Objectives:
1. Attendees will be able to ensure that unique shopper strategies are integrated
in all future brand and account plans.
2. To understand the role that shopper segmentation plays in the formation of
channel strategies
3. Attendees will be able to develop an understanding of shopper behavior and
the importance of fine-grained retail interactions in the store, particularly
traditional outlets.
4. To learn and adopt modified measures in shopper marketing principles to
build long term relationships with the retailers
5. Attendees will develop a greater grasp of the ways retail and consumer
marketing systems are evolving in the developing world in general, in
particular Asia.
3. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
6. They are also expected to develop an understanding of the aspects of the
consumer culture in the developing world that make people very open to
change and modernization on one plane and yet allow them to remain
comfortably wedded to old traditions on another plane, as is the case, for
example, in India.
Pedagogy:
Pedagogic mix may include class discussions, case studies, groupprojects, seminar
presentations. Emphasis will be on discussion and active exchange of ideas. The
course is intended to be a vehicle for self learning and group learning. A willingness
to share your perspectives, knowledge, and experience is another important factor
for a satisfactory classroom experience in this course. The learning process will be
inductive i.e. we will understand the concepts as applied to a real lifesituation.
Evaluation Pattern:
Component Weightage
Field Project 40%
Assignments 20%
Case Analysis 20%
Presentations 20%
References:
1. Consumer-Centric Category Management: How to Increase Profits by
Managing Categories based on Consumer Needs by AC Nielsen
2. Shopper Marketing: How to Increase Purchase Decisions at the Point of
Purchase by Markus Stahlberg, Ville Maila
3. Inside the mind of the shopper: the science of retailing by Herb Sorensen
4. Why we buy: the science of shopping by Paco Underhill
4. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
Module: Understanding Retail Environment
Session1
Discussion: Introduction to Retail Format
ïŒ Retail Format âStrategy Grid
ïŒ Retail Value Chain
Session2
Discussion: Structure of Retail in India
Case: Big Bazaar (HBS No. 9-606-099)
ïŒ Discussion on reasons for Big Bazaarâs success in India
ïŒ Role of private labels in driving store loyalty
ïŒ Emerging Trends in Indian Retail
Session 3
Discussion: Challenges of RetailExpansion into a New Location/Market
Case: Marketing a Mall in a Tier-3 City â Case of Khandesh Central in Jalgaon
Reading:Note on Store Location (HBS No. 9-593-112)
Session 4
Discussion: Retail Strategy
Case: Shopperâs Stop Group by Rajiv Lal and Virginia Fuller (HBS No: 9-508-017)
Reading:Note on Retail Economics (HBS No. 9-595-006)
Session 5
Discussion: Understanding General Trade Retail
Case: Shiny Provision stores: Retailing Challenges in the Indian Context (Ivey: 910A17)
Session 6& 7
Discussion: Sources of Competitive Advantage in Retail
Case: Wal-Mart Stores: âEveryday low pricesâ in China (HKU: 590)
Video: CNBC: The Age of Wal-Mart
5. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
Module: Introduction to Category Planning
Session 8
Discussion: Process of Category Planning
ïŒ Eight Steps of Category Management
Module: Introduction to Shopper Marketing
Session 9
Discussion:
ïŒ Deciphering Shoppers (Who is a shopper?)
ïŒ Difference between customers, consumers and shopper
ïŒ Understanding the interaction between the consumer and the shopper
ïŒ Defining Shopper Marketing
ïŒ Reason for segmenting shoppers â Shopping Mission and shopper Typologies
Session 10
Discussion:
ïŒ Effect of shopper segmentation within a channel or customers (retailers)
ïŒ Links between channels/types of customer and types of strategies â How it is
applicable in various retail environments
ïŒ Shopper Marketing in Modern Trade Retail
Case: Best Buy Co., Inc: Customer-Centricity by Rajiv Lal, Carin Isabel Knoop and Irina
Tarsis (HBS No: 9-506-055)
Session11
Discussion:
ïŒ Shopper Marketing in General Trade
ïŒ Understanding the channels of traditional trade â wholesale, family grocers,
chemists, kiosks, fancy stores
ïŒ Shopper insights leading to âSuper Valueâ stores of HUL
6. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
Module: Creating Shopper Marketing Initiatives
Session 12
Discussion:
Understanding the process of shopping in Modern Trade Retail (Self Replenishment
Stores)
ïŒ The shopping steps in the self replenishment stores
ïŒ Understanding the insights in each of shopping steps
Session 13
Discussion:
Understanding the process of shopping in General Trade Retail (Aided Replenishment
Stores) - Shopper-Shopkeeper interaction in the developing world
ïŒ The shopping steps in the aided replenishment stores
ïŒ Understanding the insights in each shopping step
Session 14& 15
Discussion: Shopkeeper as a Shopper
ïŒ Shopper Marketing in the wholesale channel
ïŒ Types of understanding required by the Brand Marketer
ïŒ The shopping steps in the wholesale store
ïŒ Difference between shopping in Metro and a wholesaler
Video: Metro Cash & Carry (HBS: 707812)
Module: Customer Strategy
Session 16
Discussion: Understanding Customer Strategic Plans and Joint Business Planning
ïŒ Presenting proposal to retailers using shopper marketing principles covering the
following:
o Who are the Customers?
o Customer Perspective
o Understanding Customers
7. Retail Shopper Marketing
Dr. Atish Chattopadhyay Sessions 18 Duration:
Credit 01 Faculty
Email: atishc@spjimr.org Group Works 70 minutes
-Strategy
- Values
o Strategic Alignment
o Joint Strategy
o Planning Horizon
o Setting KPI & Goals
o Identifying Key Initiatives
o Plan Sign-off
o Deciding which Customers to Invest?
-Evaluate
-Quantitative
-Qualitative
- Relationship
o Commercial Importance
o Strategic & Tactical alignment
Case: Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (HBS: 9-907-013)
Session 17 & 18
Student Presentations:Presentation of research study:
o To uncover insights necessary to segment shoppers
o Shopper Marketing Initiatives using Commercial Arguments
o Integration of RE (retail environment) Strategy, Category Strategy, Shopper Strategy and
Customer Strategy with the Brand Strategy