Marketing in india require drastic change emergence of modern retail and social media by bhawani nandan prasad iim calcutta
Marketing in India require drastic change in its focus due to emergence of modern retail andsocial media By Bhawani Nandan Prasad IIM CalcuttaChange in focus due to Social MediaMarketing using Social media focused to create content that attracts attention and encouragesreaders to share it with their social networks. A corporate message spreads from user to userand presumably resonates because it appears to come from a trusted, third-party source, asopposed to the brand or company itself. This form of marketing is driven by word-of-mouth,meaning it results in earned media rather than paid mediaIt is easily accessible to anyone with internet access. Increased communication for organizationsfosters brand awareness and often, improved customer service. Social media serves as arelatively inexpensive platform for organizations to implement marketing campaigns.Digitalization and social media has revolutionized new avenues for advertisers. The internetbased advertisements have various advantages over traditional media channel. Low cost, Easy to monitor Analyze and understand customer likingThese channels can be made interactive wherein customer can communicate back to theadvertiser which helps in understanding customer better.In India internet and mobile coverage have explosive growth and have shown double, and insome expenditure on these nontraditional and new medium is still very small, they are ready totake off in the big way in the near future.With the introduction of touch phones like Google Android, Apple and Windows Mobile, thesocial media is now accessible from mobile and tablets. This help the people stay connected onthe move and bring closer to marketers with the help of technology. Individuals are notified ofany happenings on social networking sites through their cell phones, in real-time. This constantconnection to social networking sites means products and companies can constantly remind andupdate followers about their capabilities, uses, promotional activity and games to attract thefollowers.Many companies are now putting QR codes along with products for individuals to access thecompany website or online services with their smart-phones.Modern Retail The Indian retail market is the fifth largest retail destination all across the globe. It has beenranked as the most attractive emerging market for investment in the retail sector in 2009. In the
entire GDP of India, the share of retail trade was between 8-10% in 2007, where presently it hastouched around 12%.Following are the field of marketing in India require drastic change in its focus due toemergence of modern retail :- People ( focus on Customer) Understanding customers evolving aspirations and lifestyles in the underlying key tosuccess for any new form of retail. The primary emphasis should be on access,experience and service and the second emphasis shall be on product and pricing. The marketers are required to special care in packaging and labeling so that fruit andvegetable remain fresh. Target the specific customers for example Biz bazaar specifically target working womenand home makers who are the primary decision makers. Marketers should focus on ways to attract the customer using the promotioncampaigns. Example Big Bazaar takes all the old house old items and gives vouchers tobring the customer to attract and pull customer the store. Better trained staff ,better availability of product and convenience like free homedelivery, providing carts to the car parking Support staff to drop the customer to the car parking Empowered customer with the support staff to show the product with courtesy andtouch and feel the product. India is a unique country compared to the other developed countries; we will see a lotof customized and localized solutions being developed in the said areas by the SMEsector. The marketers are required to advertise the product in the local language onregional television channels. Indian apparel retailers are increasing their brand presence overseas, particularly indeveloped markets. While most have identified a gap in countries in West Asia andAfrica, some majors are also looking at the US and Europe. Arvind Brands, MaduraGarments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreignexpansion plans through the distribution route and standalone stores as well. Anotherdenim wear brand, Spykar, which is now moving towards becoming a casualwearlifestyle brand, has launched its store in Melbourne. Email Marketing: Email is marketing and it takes only minutes to add a signature toevery email to constantly promote your business. Every time your customer sees yourdomain or store name to the right of the “@” symbol, that’s one more time for yourname to be imprinted in their memory. If they go back to search through emails, willthey remember how to find User.Name@gmail.com or will they remember to search forYourRetailStore.com? Physical Evidencea. The modern retail is designed so that all the store looks similar in design so that thecustomer knows the location of item in one store to another. Example Walmart inUS and Westside in India follows the physical evidence as marketing.b. The marketers could highlight the discounted items using the pamphlet to thecustomer entering the store. The marketers should focus on giving user flexibility to
choose items from the self after closely examining the item. Attractive label foritems that are below MRP could be used to increase the sale.c. Place: Placement, or distribution, is about delivering your product or service to thecustomer in the right way, at the right time. This means knowing which customersutilize which types of channels, and when –and automated tracking goes a long wayin shaping your placement strategy.For example, do consumers prefer to purchase their gourmet gift baskets pre-packaged in retail markets, gift-wrapped from online catalogs, or custom orderedfresh at retail shops?Important place considering with marketing the modern retail store:i. Number of outletii. Location at main cityiii. Areaiv. Approachable destination PromotionIn many ways, marketing promotion has never been more ubiquitous than it is today. And atthe same time, it has never been as confusing and overwhelming for marketers. Email, socialmedia, and mobile devices have opened new doors for communicating with and engagingprospects, all the while generating an overwhelming amount of data.Automated marketingsoftware enables us to create better, more focused, and more personalized marketingprograms, using the data we gather on our day-to-day transactions with prospects andcustomers.a. Below the line promotionCoupons, discounts, more of the product at normal price, gift with purchase,competition and prizes, money back offers, exchange offers and special occasionFor example: Big Bazaar in association with Star India Pvt. Ltd has launched acollection of designer ethnic wear under the brand “Star Privaar”“Your Kabaad Save Extra on everything! “is an example of exchange offersb. Above the line promotion:Giving advertise in news paper, TV, internet (own website which give onlineshopping service)Partnership with Bigflix, big FM 92.7 Price : is directly connected to the value of a product or service. Most people wouldn’tspend Rs 10,000 in BigBazaar outlet but for a few consumers, that cost is less importantthan the store experience, or the convenience buying multiple brand under single roof orsite . With the use of web analytics, social media tracking, and other available metricsnowadays, we can closely follow consumer behavior and campaign performance to find theright balance between cost and value. This type of analysis allows us to better forecastcustomer demand, lay out strategies accordingly, and adjust more quickly and easily tomaximize revenue.Some of the important point that modern retail should focus on is :-a. Value Pricing
b. Promotional Pricingc. Differentiated Pricing (Time Pricing)d. Bundling: We can also look at bundling the multiple items and provide the bundle atslightly cheaper price.The bill generated and handed over to customer visited the retail store could focus and printthe cost saving after purchasing the items from the store. The total saving will give pleasureand attract the customer next time to the modern retail. Product : In today’s research-driven market, we can no longer employ’s Henry Ford’s tacticof selling his Model T in only one color. Our products and services must cater to people’sdifferent needs, desires, and purposes. Prospects usually have certain criteria in mind whenthey begin their shopping process. To stay one step ahead of the game, businesses mustdevelop unique selling propositions that capture their customers’ emotion by setting themapart from their competitors, while meeting some, if not all the criteria for conversion. Building Brand : The marketers today focus and provide reward scheme using the plasticcard. These cards act like customer loyalty program. Example Reliance One card, Big Bazaarand Pantaloon Payback Card Process: In the absence of intermediaries, the consumer will end up paying lower price for abetter product. The unorganized sector, consumer has to argue and fight a lot in case he hasto return some faulty product to the retailer. The modern retail should focus onstandardized the process. This will result in better customer satisfaction. Payment Methods: Modern Retail along with software technology, have greater role inproviding solutions in bringing together the farmers, retailers, vendors and the customers byleveraging the mobile and cloud technology to lower total cost of ownership. This willenable retailers who have adopted these services to gain competitive advantage by processinnovations, lowering costs and building scale.” The customer should be tapped using theonline store with cheaper prices. The marketers should focus to flexible payment option likecredit card, Airtel money,paypal and ezmoney. Parking is also an important P however it is not a conventional concept to attract customerand it could have huge bearing on individual store performance. The modern retail shouldfocus on this last P so that customer shopping in modern retail get the free parking servicea) Is marketing relevant in a recession condition?1. During recession, when economic position is tight, the bottom line is dictated by thesense of value consumers place in your brand, or more precisely, how much they arewilling to pay for that value. Both the value perceived by consumers and actualshareholder value are strongly influenced by brand. Brand can drive growth in an upmarket or protect the company’s value in a down market. One of the most important,but often overlooked aspects of a recession is the insecurity consumer experience. Asconsumers feel the pinch, they begin to search for change. Companies need to focus onactions that take advantage of the opportunities that change brings. Branding in arecession is all about investing in consumer retention and attraction.2. During a recession, most companies cut back in every area of the business and startslashing prices to accommodate the shifting demand curve. While this may help in theshort term, this strategy can actually damage both the company and its brands.
3. Historically, companies who invested in their brands during hard economic timesretained their core audience, attracted new consumers and emerged stronger in theend.4. In a poor economic climate, companies must recognize that consumer retention andattraction is the name of the game. You must invest in brand-building to win marketshare, not just mindshare or margin. Those who fail to see their consumers as anappreciating asset may soon find their brands and business devalued or defunct.