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1. Omni-channel retail strategies that seamlessly integrate online and offline shopping channels are becoming essential as customers browse and shop across different channels. Marketers need hybrid models to meet customer expectations of convenience. Smaller cities are seeing growth in niche product categories available online but not in local stores. 2. Malls are struggling as key customer groups like women and teens are visiting less frequently and choosing alternative shopping options like discount and specialty stores or restaurants. Over 2 dozen malls have closed in the last 4 years. 3. Reaching rural customers for financial services presents challenges like infrastructure needs and income volatility. Banks are using vernacular language audio-visual campaigns, local entertainment, and group meetings instead of
Presentation for we like
- 1. Project WE-LIKE. Presented by:- Priti. N.Gala. Roll NO.1359 /July-2014.
- 2. We Tube
- 3. 1.Issues and challenges of Rural Marketing. Meaning of Rural Marketing- “Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living for them and thereby achieves the goals of the organization”. Features of Rural Market :- Agriculture is main source of income. • The income is seasonal in nature. Though large, the rural market is geographically scattered. It shows linguistic, religious and cultural diversities and economic disparities. The market is undeveloped, as the people who constitute it still lack adequate purchasing power.
- 4. Challenges of Rural Marketing Seasonal Nature of Demand. Language Barriers. Buying Decision slow. Not Experimenters. Traditional Beliefs. Community pressures.
- 5. Four Main Hurdles (Four A’s) Availability –Make the product available at right time and place.Reach and Distribution of Utmost Importance, Affordability – Value for money.economical and stable prices. Acceptability- Convert potential to actual customer, Awareness – Customer specific campaign,More Medium of communication ,connect to the rural customer.
- 6. Conclusion Rural market is a gold mine which the companies needs to tap. Companies need recognise and respond to the challenges. Companies need to invest time and money to reap long term dividends.
- 7. 2.Screening of the employees –The need of the hour. Meaning : It refers to researching the histories and stated capabilities of employees (Potential /current). Organisations need to mitigate the risks. Many recent instances show frauds committed by the employees by providing wrong details about their qualifications ,fake documents and certificates etc. Hence Companies need to do the screening before appointing new employees.
- 8. Why screening is needed:- • To follow norms. • For own security and safety. Compliance. • Secure data. • Avoid corporate spying. Safeguarding organisational assets. • Minimize the possibility of violence. • Check criminal records. Promote safety. • Reduce turnover. • History absenteeism,poorperformance Avoid long term costs. • Safety of the employees. • Integrity. Trust within the organisation. • Check the qualification. • Proper references ,experience check. Hiring the best employees.
- 9. Conclusion. All the employees–prospective/current, temporary/contactual,executive level /high level need to be screened. It pays to know and helps the company to save itself form bad hire.
- 10. 3.Direct marketing-reasons for the growth. Social and technical reasons: Internet. Demographics /fragmentation. Proliferation of mass media. Greater consumer sophistication. Consumer wants to be in control. Business reasons: More competition. Drawback of traditional marketing. Customer retention and loyalty. Drop in computer processing costs.
- 11. Benefits. To Sellers. Specific targetting. Minimal costs. Build databases. Effective and responsive feedback system. Medium’s effectiveness can be measured. To Buyers. Shop from home. Informed decisions. Time flexibility. Impersonal yet personal. Save money. Privacy. Customer service.
- 12. Limitations. Intrusive. Impact reliability. Time lag. Limited reach. Legal restrictions. Data management. Environmental impact.
- 13. 4.Moment of truth-Customer Experience Management. Meaning :- It is the experience that the customer gets every time when there is an interaction between him & the organisation during the customer lifecycle management. An Organisation should Think Win-Win. It should think like a customer, be a consultant, trusted partner, give information. From customer’s point of view:- Perception – What customer thinks / feels. Interaction - Viewing marketing message. Actual use of product. Post purchase service.
- 14. Customer Survey Feedback Around 22% customers where happy/satisfied with CRM of companies like banking, air travel, electronics etc. For the customers quality of interaction is equally important as quality of product. 90% of the customers are not happy with offshoring services & IVR. Employee training & internet based selling has positive impact. Post sales service is the most memorable experience Customer with good experience recommended company to their friends & colleagues & increased their purchases. Well trained & helpful employees are top attribute of companies. They provide excellent customer experience.
- 15. 5.The big 5 personality traits Traits are consistent pattern of thoughts, feelings or action that distinguish people from one another. It is an internal characteristic. In psychology big 5 personality traits are know as Five Factor Model (FFM) also know as OCEAN. Beneath each factor, a cluster of specific traits is found.
- 16. Continued… AllPort & Odbert listed 4500 words describing the personality, they considered observable & relatively permanent trait. Barrick & Mount co-related personality traits of FFM & job performance in may jobs.
- 17. Big 5 Traits Openness to experience Conscientiousness Extra version Agreeableness Neuroticism
- 18. News wire
- 19. 1.OMNI-CHANNEL IS THE NEW BUZZWORD FOR MARKETERS A perfect omni-channel strategy would mean an optimal integration of all retail channels based on efficient analytics. Today’s customer is not only well informed but also always connected to some device or the other. Browsing and shopping are done at their own convenience and on the channel of their choice. It’s a reality that marketers have to live with. The wise ones have developed or are in the process of developing hybrid models which combine the best benefits of physical retail, online retail and direct marketing.
- 20. Continued…… The surge in online retail made the retailers like Future Group, Shoppers’ Stop etc take a step back to rethink their strategies and Omni-channel emerged as the best solution for this brigade. The increasing threat from online players, limitations to the space available for physical stores are all pushing brands to adopt technology solutions for an omni- channel retail strategy.
- 21. 2.E-RETAIL: SMALLER CITIES LAP UP OFFBEAT GOODS FROM SNAPDEAL, EBAY, FLIPKART Online retail has revolutionized the way Indians shop. Penetration of FMCG products and consumer durables are very high across India. But in smaller towns and cities, people don't have access to many categories that are easily available in metros. So the only option for people there is to shop online because, for many categories, the reach of online players is greater than that of their brick and mortar counterparts. We have seen faster e-commerce growth in non-metros due to the advent of low priced smartphones and internet access Consumers in non-metros are not only buying mainstream products but also unique items such as DJ turn tables, body-piercing jewellery, dashcams, temporary hair colour styling gel. Apart from the regular goods like FMCG and Electronics,E-Retailers are also seeing growth in the demand for Off-Beat products like adult diapers , blood glucose meters and solar lanterns.
- 22. Trends of major Online Retailers eBay Bar accessories , while Nagaland sees a high demand for camping gear. Bike accessories are a big hit in Daman & Diu, while Chandigarh sees big purchases of networking and wireless devices, and Goa fuels the demand for hats. Flipkart Coimbatore and Tirupur have become apparel hubs . , Pudducherry and Panipat have emerged as major hubs for categories such as home, consumer electronics and apparels. Demand for leather and sports goods is growing among smaller city customers with Ludhiana and
- 23. 3.MALLS ARE LOSING THEIR MOST LUCRATIVE CUSTOMERS In the last four years, more than two dozen malls have shut down. Another 60 malls are on the brink of death, The New York Times reported. Women are visiting the mall about eight times per year, down from 18 times annually in 2014, according to a new Piper Jaffray survey. Meanwhile, teen mall traffic has dropped 30% to 29 visits per year since 2007. women are choosing to shop at discount and specialty stores over malls when it comes to purchases for their homes. For teens, restaurants have replaced shopping malls as a favorite hang-out spot.
- 25. 4.BEYOND BOUNDARIES: HOW RURAL MARKETING HAS TRANSFORMED FINANCE COMPANIES Challenges for banks:- In the last few months, over 115 million new zero balance bank accounts have been opened to bring in a larger chunk of the population under the ambit of the financial services. Banks need to create physical (brick & mortar) infrastructure, invest in managing cash and recruit/retain competent employees willing to work in these remote locations, engage with reliable business-correspondents and ensure high levels of service. Volatile income patterns make financial discipline a difficult task for rural populations. Simplicity of product design is another key requirement to attract rural population .
- 26. Methods of communication by banks . The communication approach is therefore completely different. IndusInd relies on audio-visual campaigns in the vernacular language and group meetings as opposed to distributng pamphlets. Entertainment (like puppet show/ folk dance), free medical camps or promoting a beneficial government programme are one of the best ways to connect with them. During haats and at religious centres, the bank tries to make the audience aware of government sponsored schemes like the Pradhan Mantri Jan Dhan Yojana and the Kisan Credit Card. Highlights of Axis Bank's three year old campaign include using local entertainment dance and drama forms like Jhumar in Punjab or Bhavai in Gujarat; slipping in banking information on the back of Krishi Pragatishala, an agri expert programme and finally comic books published in multiple languages.
- 27. 5.DO CONTINUING CAMPAIGNS DELIVER BETTER? An engaging story unfolding in parts, keeping viewers coming for more. 'What's next?' remained the question on people's minds. More recently came Tata Sky's love story for its daily recharge option, with each chapter of the story unveiled in a new TVC. Continuing campaigns do build engagement because you want the customer to have the connect. There is great merit in continuing campaigns and extending the campaign over a period of time.
- 28. Continued……. The biggest requirement for a serialised campaign is money. It’s only the advertisers who have a high exposure and production budget who can afford to do this. This is just another form of storytelling and at times the idea could be more conducive to a serialised story. But it’s a risky proposition. It presupposes huge engagement from the audience and if that engagement is not there, it becomes an exercise where only the people who have written the story feel good while the general audience couldn’t care less. Unless the story is dramatically gripping, this format is bound to have a lower return on investment.” If people are entertained by the messaging, it does not really matter what format you use in your messaging. It also largely depends on the objective of the campaign. A connected campaign can backfire if the idea is boring. If the idea is fresh and relevant and the execution is authentic and engaging, it will work. It may be a standalone film, or a campaign or movement idea that's ongoing." The overall view is that digital would most definitely see a lot more of this kind of advertising. TV may not be flexible enough for this form of storytelling to become a mainstay.
- 29. 6.SMART SHOPPING LIST CONCEPT DEBUTS Smart brands are quickly moving beyond simple eCommerce, using omni-channel retail to maximise their sales and customer relations. They can then either pop in for a closer look or make the purchase and simply visit the shop to collect it. To create an effortless consumer experience and break down barriers between digital and physical retail
- 30. continued……. Booodl is a smartphone app that notifies consumers when they come in close proximity to products from their digital wish list. To begin, users create their list adding ‘wants’ online. Then, when they are out and about, the app notifies the customer when one of their ‘wants’ is stocked nearby: the user can then get directions to the shop, message the store or even order an Uber to the location, all within the app.
- 31. 7.HOW WOMEN ENTREPRENEURS ARE GAINING BIG FROM THE ONLINE RETAIL REVOLUTION As India sees a revolution in its $300 billion retail industry with the emergence of online marketplaces such as Amazon, Snapdeal and Flipkart, thousands of women are gaining financial independence by selling products These women now constitute about 20% of the 1 million sellers on platforms that form the $12 billion online retail industry It gives women the advantage of Minimum investment, Maximum profit guaranteed, Make money from home Women have become micro-entrepreneurs
- 32. Continued………. But on Flipkart, of the 30,000-odd sellers, about 20% are women. Interestingly, about 15% of these women are customers-turned-sellers. "These women have identified the gap and launched their own brands offering regional handicrafts, antique pieces, and designer wear. Some of the success stories highlighted:- Namita Jain, a former homemaker who saved about Rs 4 lakh to invest in starting Neerav Stores on Delhi-based online marketplace Snapdeal. Arti Goel, 47, started the experiment of selling online three years ago as an addendum to her husband's home furnishing supply business to hospitals and hotels. Within three years, the online business has taken over the offline.
- 33. 8.CUSTOMER LOYALTY: THAT’S WHERE SAMSUNG BEATS APPLE A new survey suggests that Samsung enjoys markedly more customer loyalty than Apple. Customers’ perceived value, brand trust, customers’ satisfaction, repeat purchase behavior, and commitment are found to be the key influencing factors of brand loyalty. Customer loyalty goes a long way in defining how a company is being received by its customers over a period of time and is indicative of the brand value.
- 34. Continued…… The SurveyMonkey defines industry benchmarks to help companies judge where brands stand. Samsung scored a 35 for customer loyalty, while Apple managed a 28. Both scores were above the industry benchmark of 19. Where Apple did better, was in customer service satisfaction. There, it scored a 41 percent positive rating, while Samsung managed only 25. Both companies may still have much to do. The industry benchmark for customer service satisfaction is 75 percent.
- 35. 9.MAHINDRA RETAIL EYES E-COMM FOR TURNAROUND In a bid to turn around its business, Mahindra Retail is adopting a three- pronged strategy — shut down unviable stores under the Beanstalk chain; strengthen ecommerce operations through the recently acquired Babyoye; and expand the Mom & Me retail chain through the franchise route. The company is also in the process of shutting down unviable and under- performing stores. As part of this, Beanstalk stores will be shut or merged with Mom and Me outlets. The company has merged its own online venture Momandme shop.in with Babyoye to offer a single website for its customers
- 36. Continued……… The retailer is also integrating its e- commerce operations with its physical stores to expedite sales of products especially those stock-keeping units and variants, which may not be readily available at stores. The company will also be selling its private label products through other online marketplaces such as Flipkart and Amazon.
- 37. 10.MAKE IN INDIA: FOREIGN FIRMS PRODUCING IN INDIA MAY GET TO SELL ONLINE The government is keen to raise the share of manufacturing in the country's GDP, for which the prime minister has launched a dedicated programme 'Make in India' to attract investments to the sector. Foreign investors setting up manufacturing facilities in India will be able to access the country's rapidly growing online market as part of the Narendra Modi-led government's plan to attract overseas capital in the languishing manufacturing sector. The move will give a big boost to foreign funded home-grown entities such as Fabindia that are engaged in manufacturing as well as retailing and are keen to expand to online platforms while making the sector lucrative for foreign investment To ensure consistency in policy and prevent tax issues later, the government will pick up what constitutes manufacturing from the income tax law
- 38. Continued…….. Allowing manufacturers to sell directly to consumers through ecommerce is seen as a big incentive to attract foreign investment in the sector. The move could also open the doors for entities that are engaged in third-party manufacturing and outsource part of production to local producers to widen their customer base through online selling.
- 39. WE LOUNGE
- 40. Mr. Govind Shrikhande. MD-Shopper’s Stop.
- 41. Key learnings Mr. Govind is a graduate in textile from VJTI and has done MBA from Symbiosis,Pune. He has worked for companies like Mafatlal,Arrow ,Bombay Dyeing and has been associated with many turnarounds. He joined Shopper’s stop owned by Raheja Group as VP – Buying and Merchandising. He opines that there is a huge change in retail scenario due to advent of digital technology. Online selling is impacting brick and mortar shops. the strategy adopted by Shopper’s stop is take the omni- channel route. Their future plan includes investing in online assets and infrastructure. They expect to earn 10%of their total revenue from online sales.
- 42. Continued….. Globally department stores format has suffered a setback as more people are preferring online and speciality stores. But he states that departmental format provide the convenience to the whole family to shop under one roof. So this format is bound to grow. They have to concentrate on customer experience and product assortment. Talking about the work culture at Shopper’s Stop ,he informs that they are customer driven organisation. Each employee is a customer care associate first.
- 43. Continued….. Employee retention is a challenge. Attrition rate is at 48% annually. Key drivers for growth would be online selling,beauty segment and exclusive brands/private labels. Future challenges are from momand pop stores, FDI policy restrictions in multi-brand retail, infrastructure , taxation policies and disrupotions from online sector.
- 44. MR.RAMESH CHEMBATH. AVP&HEAD STRATEGIC MARKETING, GODREJ APPLIANCES.
- 45. KEY LEARNINGS. MR. Ramesh gives a brief about his career graph of over 20 years. He has industry experience of over 20 years and is industry speaker at various forums. He started his career with Garware,Grasim ,Draft FCB-Ulka advertising before finally moving to Godrej. He is a Physics graduate and has an MBA . His love for communication got hi into marketing and sales.
- 46. Continued…… He says that every job we take up teaches us something.it is great experience full of learning. He got an opportunity to work with stalwarts of the industry. His stint at Ulka advertising gave him a great exposure. He feels that person wanting to make career in marketing should start by selling at grass root level. He feels that every opportunity teaches you something. One should join the company that one wants to work in. He states that people don’t quit the companies but they quit the bosses. But its about how you deal with your seniors and how you learn from them as they have more experience. One should always balance work and personal life.find pockets to spend time with kids.
- 47. Continued…. He feels that future of today’s business is E- commerce and has plans envisaged for his own company on similar lines.
- 48. Mr. Damodar Hall. CEO- Reliance Fresh.
- 49. Key learnings. Mr. Damodar is the most admired grocery retailer. He is the author of the book Super Marketwala. He is an IIM-B alumni. He has worked in top companies like HUL, Future group and is a co-founder of D-mart. He learnt the ropes of business from Mr.Kishore Biyani and R.K.Damani. He learnt not to believe in precedence and rely on customer feedback for your business. Reliance retail was set up in 2006 . Its core growth strategy is backward integration and developing a strong value chain starting from farmers. It believes in the philosophy of farmer’s welfare, fair practise and to give platform to small and new brands.
- 50. Continued…. He states that customers are emerging in assertive way ,they will have their way. He states that one should develop the habit of winning customers ,observe customers and work with customer in the centre. This will reduce learning cost as well as cost of error. Rising aspirations of the customers, physical mobility as well as the digital mobility have empowered the customers. So companies have to be nimble footed and think ahead of the customers. India is the best place to be right now due to consumption growth,economic growthand confidence of the customer.