Retail MARKETING: New Dimension of Selling


By

Mr. Ranjan Upadhyaya
Faculty of Management Science
Banasthali Vidyapith
Village-Banasthali, Tehsil-Newai, District-Tonk
 


Introduction:

We can define the retailing from the oxford dictionaries as the selling of goods to the public through shops stores at particular prices. The touch of the Retail marketing is very dynamic and is growing in India. Indian markets have many qualities and one good grapevine is its customers. The trend can reflect the boom and can reduce the profitability of any product.

According to Noble Prize-economist and psychologist, Daniel Kahneman call a Hedonic Treadmill, which means happiness rises with income up to the point at which basic needs are met, after which it stagnates, as aspirations also rise with income.

The forecast shows some time the upward swing and some time the downward tilt also. The market expansion is with the horizontal line and vertical stress. The technicalities are under estimated or sometime overestimated. The shivers of the consumption may depend upon the increases in the customers' indispensable income and custom duty exemption from the Indian governments. The frequency is time bound and it is readily changing. The retail marketing is undergoing a sea change as it is a new concept and need lot of infrastructure development and more and more participation from the private and international companies. The touch of the retail marketing sensing is growing and expected to touch unbelievable growth of new heights in the coming days. The talk of the retail marketing is ever ending as the big companies are increasing their expansion in keeping in mind the pace of the Indian middle class customer growing and the dependency with individual family concept is breaking all line of new purchasing concept of this arising purchasing communities in India.

The Indian market is seeing a new venture from the Indian corporate like Reliance and Indian Tabacoo company, Godrej etc. are shaping their hands by opening new outlets in village also to capture the upcoming consumers. The affluent class is not limited to the metro or cities only it is spread out in small village also.

Entrepreneurship skill is be demarcated with avalanche of retail marketing which is leaving behind all the success and is looked a new survival for sick and public sectors companies.

The telecom sector and food industries are seeing the sea change with retailing concept in India. Retail scope is being capitalized by many corporate as tool to penetrate in the rural and suburb market and breaks the monopoly of local players there.

The retailing is taking a new toll by joint venture with foreign companies or India multinational going and doing business abroad. The commodities by retailing medium are becoming cheap and assessable to all the customers. The customers are able to move up the "Diminishing Return Curve" because of which product life cycle is becoming shorter and increasing the cost of marketing.

Big Players:

The Pantaloon and the Big Bazaar or the Vishal Mega Mart is the few players, which are taking a market beyond limit. The retailing concept is booming. The companies qualifying with their more customers and sells of their products in India. The Rahjeja group, RPG, Priamals, Shopper's Stop, Lifestyle, Globus, Will's Lifestyle, Westside, Subhiksha, Vivek's Nilgiris, Crossroads, Tata, Godrej, Hero, Reliance, are the few upcoming players at national level.

In Case of Indian Tabacoo Company:

The e-Choupal story is familiar. In 2001, ITC, which exported around Rs.700 crore of agri-products then, began buy directly from farmers. In selected homes, ITC set up battery-powered Internet-enabled computers along with printers to allow farmers to compare manadi prices with ITC's prices on a company-run portal. Soon, farmers were accessing information on crop patterns, weather report, etc. on the computers. Today, the programs have moved form 100 e-Choupal in 2001 to 6000. Moreover, now there are 10 Choupal Sagars shops in villages that sell things like steel utensils and packaged tea: these were started in 2004. ITC hopes to have 700 Choupal Sagar by 2010. And ITC-IBD has grown to a Rs. 1,800 crore operation. IBD is now trying something new, in the health and education in rural areas. In many ways having a cost-effective model for this has been the holy grail of the government, NGOs and private organizations. The stumbling block is the belief that rural India is not ready to pay for the services. But ITC believes if the right service is delivered villagers don't mind paying up. We will use our existing infrastructure and create value for the villagers, says S. Sivakumar, C.E.O. ITC-IBD. The four pillar of its delivered model the sanchalak (who manages the e-Choupal), the Choupal Sagar, the IT infrastructure and ITC's relationship with its network partners- are being used to delivered healthcare and medical services.

The company has tied up with Apollo to provide telemedical services at its Choupal Sagar in Mhow and Sehore in Madhya Pradesh. These Sagars, which already have a doctor, pharmacy and pathological lab, are linked to Apollo's specialty clinics in Ahmedabad. Specialized consulting, when required is done through this link. On the anvil are plans to train health workers in the village to run tests on instant testing devices like those for blood sugar or blood pressure. IBD also plans to link the village to Apollo's specialty clinic. In education a pilot is being run Yavatmat, Mahasthtra to provide supplementary high school education to students of standards VIII, IX and X. The premise is that the levels of general education- especially in math, science and English are not very high in rural areas and parents spend a lot of money sending children for tuitions in nearby towns. ITC plans to apparition some of that spending. IL& FS. ITC's partner for the project has digitized content. The teacher, who is identified by the sanchalak, undergoes a training programme on how to use technology to teach. If all goes well, ITC plans to extend this to IT and vocational education.

Both these pilots are in there four fourth month and are expected to run for another five. Says Sivakumar." We would like to emerge as the delivery partner of choice for rural services" In this what is important is that ITC is innovating continuously to marry profit with social objectives. Chairman Y.C. Deveshwar believes that the aspiration to create ending value for the nation provides the motive force to sustain growing shareholder value."

Synergy of Technologies with Retailing:

A new concept is being generated in the west that if technologies can be linked with retail it can not only enhance the sales but also going to slash the cost of the selling.

Few miracle which were sighted with international collaboration in the technology dimension were as follows

* Oracle Retail Merchandise Operation Management
* Oracle Retail Profit Optimization
* Oracle Retail Point of Service

Users are like Marks & Spencer's, St. Michael, Shoppers Stop in retailing concept.

The Statistics:

i) There are about 12 millions retail outlets spread across India and more 80% of these 12 millions outlets are run by small business houses.

ii) The expected boom in retailing is $ 300 billions and going to occupy second largest retail market after China.

iii) Retailing contributes 3% comparison to organized sector.

iv) There are over 2400 supermarkets, which account for 10% of total grocery sales within the 28% urban towns.

v) In India 60% of food and 40% of non-food items are kept in retails stores.

vi) In other countries the ratio is 80% foods or grocery and remaining 20% non-food items are kept.

vii) There are 50 hypermarkets in India, operated by 4-5 big retailers.

viii) Some hypermarkets follow backward integration and 70% stock is procured from agricultural markets in India.

ix) Indian customers prefer to have fresh produce and want to make a once visit and should be located within the city limits

So at last we can say that retail concept is big and have usage market in India.
 


Mr. Ranjan Upadhyaya
Faculty of Management Science
Banasthali Vidyapith
Village-Banasthali, Tehsil-Newai, District-Tonk
 

Source: E-mail July 20, 2006

     

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