KRS 2014: Panel Discussion: Creating Channel Supremacy the Multichannel Way

1. Creating Channel Supremacy the Multichannel Way

2. Suraj Shantakumar, Director
Business Strategy, Kirtilals
Sunil Sanklecha, MD,
Nuts & Spices
Zarook Shah, Director,
The Grand Mall
M. Ramakrishnan, MD,
Thulasi Pharmacy
Moderator: Sastry
Subrahmanya, Director,
PWC
ParticipantsParticipants

3. What is your view on multi-channelWhat is your view on multi-channel
• Our business is about high value diamonds and
gold. Our key value proposition is personalized
service – which social media to an extent
excludes.
• Our definition of multi channel includes : Direct to
home for personalized shopping; roadshows and
exhibitions for the store catchment.
• We’ve developed Special design lounges - an
IPAD app – which customers can use to BYOJ
(Build Your Own Jewelry)
• This App ‘aggregates’ range across all stores – and
creates an ‘endless aisle’ for customers.
• We are present online and on social media but
these are for ‘display ‘ purposes.
Multi channel maturity is a function of business maturity.
Moderator: Sastry Subrahmanya, Director, PWC
Suraj Shantakumar, Director
Business Strategy, Kirtilals

4. • We run a mall in Chennai – we are a
neighborhood mall, and are in the shadow of
Phoenix Market City who are much larger than
us.
• In addition, we also have an analytics / Ux
company (Ux = User eXperience)
• Customers are jumping online at the first
opportunity – so retailers have to think
multichannel.
• Use interactive technology to present SKUs
and range not available in store – using mobile
technology.
How is the customer expectation influence retailers choice of
channel?
How is the customer expectation influence retailers choice of
channel?
Moderator: Sastry Subrahmanya, Director, PWC
Zarook Shah, Director,
The Grand Mall

5. How is the customer expectations influence retailers
choice of channel?
How is the customer expectations influence retailers
choice of channel?
• We are a chain of gourmet food stores. Our Retail stores
are a channel for the family business of dry fruit.
• 23 stores in Tamil Nadu. Present online and on social
media
• Created the online store to cater to customers who had
moved outside the state.
• Most online retailers focus on price discounting as a way
to drive traffic. The trade-off is price v/s experience.
Online channels cannot provide the same experiential
feel.
• Depending on which markets and customer segment –
most retailers need both. It’s not an “either / or” thought
process.
Online presence is needed to meet customer expectations.
Moderator: Sastry Subrahmanya, Director, PWC
Sunil Sanklecha, MD,
Nuts & Spices

6. • We run a chain of 39 pharmacy stores all over Tamil
Nadu.
• We use health camps as a way to engage with the
catchment. Strategic PR exercises.
• We are present online – but to give information,
we do not have an e-commerce enabled website as
yet.
• Since our Target Audience are usually above 60 our
multi channel and technology choices reflect that.
• Home delivery / prescription reminder services /
email marketing are our version of “multi channel”
Multi channel for us is events which increase customer
engagement.
What is your view on multi-channel?What is your view on multi-channel?
Moderator: Sastry Subrahmanya, Director, PWC
M. Ramakrishnan, MD,
Thulasi Pharmacy

7. • Because we deal with health and because our
target audience is older; customers have concerns
on privacy and security of online transactions.
• We have found that loyalty programs based on
purchase patterns have met with some resistance
– but discount based programs have been
successful.
• Social media is a good channel for the
neutraceutical side of the business. In addition,
touch-screens in-store help to educate about
usage / side effects of drugs.
Online channels appeal to the “left” brain, brick and mortar to
the “right” brain. One is quantitative and price based – the other
is experiential.
What is your view on multi-channel?What is your view on multi-channel?
Moderator: Sastry Subrahmanya, Director, PWC
M. Ramakrishnan, MD,
Thulasi Pharmacy

8. • As a neighbourhood mall we have found social
media far more useful than mainline print / media
advertising.
• Email marketing and aggregating offers of all our
tenant retailers has helped us personalize our
offering to the catchment.
Find social media to be very cost effective in creating a market
in the local community.
How is the customer expectation influence retailers choice of
channel?
How is the customer expectation influence retailers choice of
channel?
Moderator: Sastry Subrahmanya, Director, PWC
Zarook Shah, Director,
The Grand Mall

9. • We spend 2 to 3% of turnover on advertising. Of that about 20% is for online
advertising. (Sunil Sanklecha – Nuts ‘n’ Spices)
• We’ve found that a combination of social media / flyers works better than a
radio / print media mix (Zarook Shah – Grand Mall).
• Our industry is regulated. We use PR – not advertising. We run a ‘handwriting’
contest which covers 100,000 children and helps us connect with the community.
Our advertising budget is miniscule - 0.2% of turnover. (M. Ramakrishnan, MD,
Thulasi Pharmacy )
• Online advertising is nascent for jewelry industry, we use a traditional ad budget
– mostly in print and hoardings. (Suraj Shantakumar, Director Business Strategy,
Kirtilals)
How much should you spend on online advertising ?How much should you spend on online advertising ?Audience
Question

10. In summaryIn summary
Moderator: Sastry Subrahmanya, Director, PWC
All brands need an
online presence to
be able relevant to
the customer.
Zarook Shah, Director,
The Grand Mall
Sunil Sanklecha, MD,
Nuts & Spices
When you go
online is a
function of
investments
and bandwidth
If you can’t use
technology – be
prepared to go out
of business
M. Ramakrishnan, MD,
Thulasi Pharmacy
Suraj Shantakumar,
Director Business
Strategy, Kirtilals
Keeping
customer
experience
consistent
across channels
is key.

11. Creating Channel Supremacy the Multichannel Way