Indian Retail Market and challenges and opportunities for Indian Retail Sector.

1. INDIA’S RETAILING
STRATEGIC ISSUES AND CHALLENGES
BY :
SARABJEET SINGH DUA
MBA (Marketing)
Sarabjeetsinghdua10@gmail.com

2. RETAIL INDUSTRY IN INDIA

3. India is the third-most attractive retail market for
global retailers among the 20 largest emerging
markets, according to US consulting group AT
Kearney’s report published in June 2012.

4. Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
PDS Outlets
Khadi Stores
Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency

5. CHALLENGES IN INDIAN RETAILING

6. MODERN MARKETING MIX
•Experience
•Everyplace
•Exchange
•Evangelism
PRODUCT PLACE PRICE PROMOTION

7. MAIN CHALANGES IN RETAILING
•STORE TYPE
•STORE LOCATION
•STORE DESIGN
•STORE PROMOTION
•STORE PRICING POLICY
•STORE COMPETITION

8. WHEEL OF RETAILING

9. WHEEL OF RETAILING
A hypothesis holding that new
retailers usually enter the market as
low-status, low-margin, low-price
operators but eventually evolve into
high-cost, high price merchants.

10. RETAIL FOCUS ISSUES

11. CHALLENGES TO RETAILING
•RETAIL POSITIONING
•RETAIL PRICING
•RETAIL COMPETITION
•RETAIL PROMOTION
•CUSTOMER ORIENTATION
•MARKET ORIENTATION
FACTORS TO FOCUS ON

12. FACTORS AFFECTING RETAIL LOCATION
• Intended target market trading area
• Types of products being sold
• Suitability of site for customer access
• Customer characteristics
• Location of competitive retail operations
Types of Locations
•Free-standing structures
•Traditional business districts

13. FC ROAD - SHOP

14. VIMAN NAGAR - PHOENIX MALL

15. RETAIL PRICING
• Cost Plus Pricing Mechanism
• Every organization runs to earn profits and so is the retail industry.
• Cost plus pricing works on the following principle:
• Cost Price of the product + Profit (Decided by the retailer) = Final
price of the merchandise.
• According to cost plus pricing strategy the retailer adds some extra
amount to the actual cost price of the product to earn his share of
profits. The final price of the merchandise includes the profit as
decided by the retailer.

16. RETAIL PRICING
• Competitive Pricing (Below --> Same --> Above)
• The cut throat competition in the current retail scenario has
prompted the retailers to guarantee excellent customer service to
the buyers for them to prefer them over their competitors.
• The price of the merchandise is more or less similar to the
competitor’s but the retailers add on certain attractive benefits for
the customers. (Longer payment term, gifts etc.)

17. RETAIL PRICING
MANUFACTURER SUGGESTED RETAIL PRICE
• The retailer sells his merchandise at a price suggested by the
manufacturer.
Condition 1
• The retailer sells the product at the same price as suggested by the
manufacturer. FIXED
Condition 2
• The retailer sells the merchandise at a price less than what was
suggested by the manufacturer. SALE
Condition 3
• Retailers initially quote an unreasonably high price and then reduce
the price on the customer’s request. BARGAIN

18. Psychological Pricing
• Certain price of a product at which the consumer
willingly purchases it is called psychological price.
• The consumer perceives such prices to be correct.
• A retailer sets a psychological price which he feels
would meet the expectations of the buyers and they
would easily buy the merchandise.
RETAIL PRICING

19. RETAIL PROMOTIONSPRODUCT LAUNCHS
•Dealer Meets
•Guerilla Marketing
•Press Launch
•Out-of-home (OOH)
DESIGN / CREATIVES
•Mall Marketing
•Canters/Bus
•Display
•Exhibition
BRAND ACTIVATION
•Consumer Promos
•Mall Activity
•School & College Promos
•Road Shows
•RWA (Residents Welfare Association) Activity
•Flash Mobs

20. MALL ACTIVITY

21. Mall Marketing

22. MALL EXIBITIONS

23. Van Activity

24. OUT OF BOX PROMOTIONS

25. I Walker – The Walking Billboard

26. How does Magic mirror works? Usually magic mirror works as a Advertising
board in which you may display any creative, and that glows all the times. But
as soon as someone stands in front of this Display..it turns into a mirror.. and
that’s MAGIC.. This has a excellent use in malls, showrooms and airports.
MAGIC MIRRORS

27. What is a Video Jacket (VJ) ? VJ is a unique Blend of Video + Audio Advertising.
VJ is the first and only product that combines ATL & BTL together. Television
commercial is considered to be the most effective form of advertisement
carrying human emotions and adequate message. With VJ, TVC’s can be used in
malls, markets & Airports, Brands can reach their customers outside their home
and offices. It gives a combined effect of Audio + Video Advertising on the
move.
Video Jacket.. Walk with TVC :

28. Product Inflatable's

29. Automatic Vending Machines

30. e- Retailing
The role of e-
distribution is to
make the
products
available at the
right time, at
the right place,
in the right
quantities

31. VIRTUAL CHANGING ROOM

32. STRATEGY MAKES YOU DIFFERENT FROM OTHERS
REST OF THE GAME IS THE SAME….

33. THANK YOU