Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: email@example.com Group Works 70 minutes Retail Shopper MarketingIn developing as well as developed countries, shoppers integrate various types ofmarketing stimuli received at home (e.g., on television), at work (e.g., on an officecomputer), on the move (e.g., billboards), and in the store in order to arrive at apurchase decision. This is making brand marketers pay close attention to “shoppermarketing”, defined as “integration of all marketing stimuli, developed based on adeep understanding of shopper behavior, designed to build brand equity, engage theshopper (e.g., a consumer in ‘shopping mode’), and lead him/her to make apurchase”. In developing Asian and Latin American countries like India, China,Philippines, Brazil and Argentina; and even in developed Asian nations like Japanand South Korea, both the shopper and the retail systems are in transition. Indeveloping Asia and Latin America, even in the most advanced urban settings thereare no “true modern shoppers”, nor are there “true modern outlets”. Both theconsumer side and the retail side are in a transition spiral, and will remain so for theforeseeable future. In these transitional settings, on the retailer side or the supplyside, there is a growing presence of self-service modern retailers, but the bulk of theretailing is via the small and traditional General Trade Store (“Kirana” store in India,“Sari Sari” in South East Asia). Even urban shoppers who have easy access tomodern, self-service retail outlets – within easy walking reach – split their custombetween modern and traditional stores, usually with the dominant share of themonthly shopping happening from traditional outlets. It is important to differentiate between a “shopper” and a “consumer”. Ashopper is a person who is a part of the shopping experience in the storeenvironment and is choosing the brand off the shelf. A consumer on the other handis the person who uses the brand. In the retail context of developing Asia and LatinAmerica, the shopper and the consumer are not necessarily the same person. Theshopper may be a family member (including often a child) who is not the end
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: firstname.lastname@example.org Group Works 70 minutesconsumer 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 considerablymore complex than in the predominantly self-service culture of the advancedwestern countries.This course is based on an ongoing study of shopper behavior in the traditionalretailing in urban settings of India, Philippines, Brazil and Argentina. Besidesinterviews and ethnographic accounts from such retail settings, we also selectivelyemployed videotaping and still photography to delve into the processes that makethe traditional retail sectors very resilient and competitive in these countries.Existing models of shopper marketing focus on modern retailing context, which arenot applicable to traditional retail formats in Asia/Latin America because of theirpeculiar characteristics.Objective of the course is to dwell on models of shoppermarketing both in the modern retailing context as well as the traditional retailingcontext.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.
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: email@example.com 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, seminarpresentations. Emphasis will be on discussion and active exchange of ideas. Thecourse is intended to be a vehicle for self learning and group learning. A willingnessto share your perspectives, knowledge, and experience is another important factorfor a satisfactory classroom experience in this course. The learning process will beinductive i.e. we will understand the concepts as applied to a real lifesituation.Evaluation Pattern:Component WeightageField 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
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: firstname.lastname@example.org Group Works 70 minutes Module: Understanding Retail EnvironmentSession1Discussion: Introduction to Retail Format Retail Format –Strategy Grid Retail Value ChainSession2Discussion: Structure of Retail in IndiaCase: Big Bazaar (HBS No. 9-606-099) Discussion on reasons for Big Bazaar‟s success in India Role of private labels in driving store loyalty Emerging Trends in Indian RetailSession 3Discussion: Challenges of RetailExpansion into a New Location/MarketCase: Marketing a Mall in a Tier-3 City – Case of Khandesh Central in JalgaonReading:Note on Store Location (HBS No. 9-593-112)Session 4Discussion: Retail StrategyCase: Shopper‟s Stop Group by Rajiv Lal and Virginia Fuller (HBS No: 9-508-017)Reading:Note on Retail Economics (HBS No. 9-595-006)Session 5Discussion: Understanding General Trade RetailCase: Shiny Provision stores: Retailing Challenges in the Indian Context (Ivey: 910A17)Session 6& 7Discussion: Sources of Competitive Advantage in RetailCase: Wal-Mart Stores: “Everyday low prices” in China (HKU: 590)Video: CNBC: The Age of Wal-Mart
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: email@example.com Group Works 70 minutes Module: Introduction to Category PlanningSession 8Discussion: Process of Category Planning Eight Steps of Category Management Module: Introduction to Shopper MarketingSession 9Discussion: Deciphering Shoppers (Who is a shopper?) Difference between customers, consumers and shopper Understanding the interaction between the consumer and the shopper Defining Shopper Marketing Reason for segmenting shoppers – Shopping Mission and shopper TypologiesSession 10Discussion: Effect of shopper segmentation within a channel or customers (retailers) Links between channels/types of customer and types of strategies – How it is applicable in various retail environments Shopper Marketing in Modern Trade RetailCase: Best Buy Co., Inc: Customer-Centricity by Rajiv Lal, Carin Isabel Knoop and IrinaTarsis (HBS No: 9-506-055)Session11Discussion: Shopper Marketing in General Trade Understanding the channels of traditional trade – wholesale, family grocers, chemists, kiosks, fancy stores Shopper insights leading to „Super Value‟ stores of HUL
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: firstname.lastname@example.org Group Works 70 minutes Module: Creating Shopper Marketing InitiativesSession 12Discussion: Understanding the process of shopping in Modern Trade Retail (Self Replenishment Stores) The shopping steps in the self replenishment stores Understanding the insights in each of shopping stepsSession 13Discussion:Understanding the process of shopping in General Trade Retail (Aided ReplenishmentStores) - Shopper-Shopkeeper interaction in the developing world The shopping steps in the aided replenishment stores Understanding the insights in each shopping stepSession 14& 15Discussion: Shopkeeper as a Shopper Shopper Marketing in the wholesale channel Types of understanding required by the Brand Marketer The shopping steps in the wholesale store Difference between shopping in Metro and a wholesalerVideo: Metro Cash & Carry (HBS: 707812) Module: Customer StrategySession 16Discussion: Understanding Customer Strategic Plans and Joint Business Planning Presenting proposal to retailers using shopper marketing principles covering the following: o Who are the Customers? o Customer Perspective o Understanding Customers
Retail Shopper Marketing Dr. Atish Chattopadhyay Sessions 18 Duration:Credit 01 Faculty Email: email@example.com 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 alignmentCase: Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (HBS: 9-907-013)Session 17 & 18Student 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