Online Custom «Shiny Provision Store: Retailing Challenges in the Indian Context» Essay Sample

Shiny Provision Store: Retailing Challenges in the Indian Context
  1. Analyze the expenditure patterns of Reliance Fresh and Shiny Provision Store customers.

The expenditure patterns of consumers who use Reliance Fresh and Shiny Provision Store differ in several ways. First of all, these patterns depend on the level of income. If to compare households with the level of income less than 10 thousand Indian rupees, they spend equally 2,000 INR on grocery and fruits both if they buy at Reliance Fresh or Shiny Provision Store. However, when their income grows, people tend to buy more at Reliance Fresh. The great difference is observed, if we compare the share of branded and unbranded products in the consumer patterns. Reliance Fresh sells mostly branded goods and only spices and Poha are unbranded, whereas in Shiny Provision Store the situation is completely opposite. Only two things in Shiny Provision Store are branded – wheat and oil. In other words, the percentage of branded goods sold in Shiny Provision Store is only 25%. It should also be highlighted that in general, consumers, who are the clients of Shiny Provision Store, buy more grocery than those who are the clients of Reliance Fresh, with the only exception of households with the income of less than 10,000 INR.

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2. Discuss the retailing sales potential associated with the Bangalore suburb area in which the research study was undertaken.

Shiny Provision Store could focus primarily on those customers inthe Bangalore suburb area, whose income is less than 10,000 INR or between 10,000 and 20,000 INR. These two categories can offer a valuable customer pool if approached correctly. As the prices in the Kirana Shop are generally 20-30 % lower than branded offerings in modern retail outlets, it would be significant for the above-mentioned categories of people. These categories of people make up rather large proportion of people in Bangalore suburb area and Shiny Provision Store has moderately good sales potential in this sphere. The potential of the store is intensified by its traditional atmosphere and close ties with the customers. This factor can be considered very significant taking into account peculiarities of the region.

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3. Analyze the image dimensions associated with Reliance Fresh and Shiny Provision Store.

The image dimensions associated with Reliance Fresh and Shiny Provision Store have rather different nature. Reliance Fresh has relatively high marks for the aesthetic image. The best marks are given by consumers with the income of less than 10,000 INR. However, the data on product/brand image are not so good. This dimension is considerably lower than all others. It is necessary to highlight that the last three dimensions have relatively good marks and the store service and store personnel are the best. The fact that members of households with the income of more than 50,000 INR give 4.29 to service is of great importance to this analysis.

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The analysis of Shiny Provision Store dimensions shows that the best situation is observed in the sphere of product/brand image. It could be a great advantage of this Kirana Shop as the figures are even much higher than the corresponding ones for Reliance Fresh. It can be considered a very strong point of the shop. The worst situation is with the aesthetic image. Customers with the income between 20,000 and 30,000 INR give the aesthetic aspect of the shop very low mark (2.90). In addition, other dimensions of merchandizing and store service are satisfactory, but in no case good. The above-mentioned group of 20,000-30,000 INR gives the store service the lowest point in the whole table (2.39).

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4. Analysis the psychographic ratings of consumers associated with the stores.

The situation with psychographic ratings of consumersis very interesting. They allow the researcher to see the individual likes and dislikes of consumers. The owner of Shiny Provision Store should pay close attention to these figures as they can help him to learn more about the lifestyle of the consumers’ group that his shop targets. In general, the average ratings of AIO are much better for Reliance Fresh. Especially positive situation is observed with opinions. It means that Reliance Fresh manages to satisfy the majority of its customers when we speak about this aspect. People with the income of less than 10,000 INR give Reliance Fresh the highest mark in opinions. The psychographics for Shiny Provision Store is not very promising; however there is a room for improvement. The situation is rather bad in Activities as the total is only 3.19.

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5. Using the answers to questions 1 to 4, what is the strategy that you recommend for Shiny Provision Store?

The strategy for Shiny Provision Store should be chosen wisely and without any haste. Keeping in mind that the owner of the shop cannot afford large investments and of the lowest marks the shop had on aesthetic image and services, I would recommend focusing on these two aspects. It would be rather cheap, but effective. The owner could improve the layout of the goods and make the shelves look less messy. The lighting system of the shop could also be modernized. Concerning the improvement of services, it is advisable to introduce some of the selling techniques and methods usually associated with modern retail outlets, like discounts, the goods of the week, etc. Various ‘events’ could also have a very positive impact on the quality of trade. It could be, for example, some prizes in ‘event marketing’, etc. The shopkeeper can also get some valuable information about modern service from corresponding professional books and guides. It is not good to underestimate the power of self-education in the professional sphere. These activities are likely to attract those customers of relatively low income who despite higher prices, nevertheless, prefer Reliance Fresh. The combination of old Indian retail traditions of Kirana Shops and introducing certain new features of modern outlets is the only way for Shiny Provision Store to survive and prosper in the new world of commerce.

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