Friday, 28 December 2012

Monthly Household Grocery Purchase shift from Kirana to Organised Retail Outlet


 
  

A Few facts which affects Monthly (Bulk)shoping from Kirana Stores:-

Attractive and appealing sales promotions influences switch over from kirana stores to organised retail outlets.

There is reduction in the monthly purchased value of the household items (grocery) from the conventional kirana stores due to the one stop shopping at the organized retail outlet.

 Pleasure in buying experience at organised retail outlets plays an important role in the reduction of the monthly purchase of household grocery (functional products in daily use) from the conventional Kirana stores.

 There is reduction in the monthly purchase value of the household items (grocery) from the conventional kirana stores due to the emergence of organised retail sector.

 The availability of the multiple brands at the organized retail outlet plays a major role in the reduction in the purchase value of the grocery from the conventional Kirana stores.

 The radical change in lifestyle is stimulating the purchase shift from the kirana stores to the modern (organised) retail outlets.                             

 General Observation:-

 Availability of multiple brands and one stop shopping are the major reasons for the preference of organized retail. Sales promotions are second major driver for organized retail .Even though people have a kirana store near their house, they prefer to do shopping from organized retail due to the aforementioned reasons .With increase in total expenditure the share of valet for kirana stores reduces. Pople have not  a strong preference for future change in their buying habits. As the disposable income increases the consumers tend to spend more time on hobbies and like spend time with their family more. Ancillary entertainment services like cinema halls, gaming zones play a vital part in making the organized retail shopping a more pleasurable experience.

 Recommendations:-

 
·        Kirana stores can sustain their absolute revenues by focusing on the following short term/quick fix factors:

A.     Increase the breath of products.

B.     Passing on more sales promotions to the customers.

C.      Provide home delivery service to the customers.

 

·        Since high income groups tend to have more hobbies and like to spend time with their families the most, kirana stores can subtly emphasis the home delivery option to enable them to spend more time with their family.

 

·        Organized retail outlets are perceived to be more modern i.e. perceived to be visited if you have to change with time hence kirana store owners need to change the perception by making their outlets more aesthetic.

 
·        Organized retail outlets are not convenient to the consumer in terms of vicinity to their homes; kirana stores can capitalize on this fact to increase their share of revenue from the consumers.

·        Organized retail outlets have increased spend done by consumers as their income increases. Kirana store lose out on the high spending consumers, they can reach out the customer by providing regular reminders by providing them pamphlets and promotional offers along with the message that they can make the delivery at the door step of the consumers.

 
·        There is a negative perception about freshness of fruits and vegetables in organized retail outlet due to which consumers tend to shop from other avenues for these. Retail outlets can provide a standee near such goods providing information about the received date so as to change the perception.

 
·        Kirana stores can start accepting other forms for payment i.e coupons and cards to increase the spending by the customers.

 
 

Tuesday, 11 December 2012

Relationship Marketing



Relationship Marketing

 

Studies of the marketing processes employed by both industrial and service firms seeking to optimize market performance have culminated in the emergence of a new school of thought, collectively known as “Relationship Marketing”.
                                                                                                                                 (Chaston, 2000)

The primary focus of relationship marketing is towards building closer relationship with customers as a strategy to overcome problems such as acquiring global competitive advantage, coping with rapidly changing technologies and reducing ‘time-to-market’ of new products.                                                                                                                 (Webster, 1992)

 RM (Relationship Marketing) consist of different dimensions ranging from tangible (monetary) to intangible (psychological) rewards awarded to consumer with the aim of motivating them to stay in a relationship.

 If we assume RM is single dimension then that is customer service, but it is not correct in this scenario.

RM is multidimensional, i.e., Customer service, Loyalty program, Customization, Personalization and Brand community.
 
  1. Customer service is the main dimension in managing and enhancing customer relationship. Superior customer services serves as a mode of differentiation that offers another advantage for the firm.
  2. Consumer who participated in a loyalty program might be more motivated by the program incentives to purchase specific brands repeatedly.
  3. Customization means manufacturing a product and delivering a service in response to a particular customer’s needs
  4. Personalization refers to the degree to which a firm or store or salesperson can personalize the relationship with a customer by communicating well.
  5. A brand community is a community formed on the basis of attachment to a product or marquee defined the concept as a specialised, non-geographically bound community, based on a structured set of social relations among admirers of a brand.

Monday, 19 November 2012

"Q" Score


"Q" Score:-

  • Developed in 1963 by Marketing Evaluation Inc., an American company
  • Q score is influenced by both people’s familiarity with the subject and their favourability towards it.
  • It is widely used for selecting the right celebrity endorser for brand advertisement.
  • The Q score answers the question “how appealing is the person among those who know him or her?”
  • First the respondents are asked to indicate two things- whether they seen or heard about the selected celebrity? Secondly, if yes , then  the respondents are asked to rate the celebrities on a scale that includes-
 
    1. One of my favourites, 2. Very good, 3. Good, 4. Fair, 5. Poor,
               6.      Never heard.
        Then after marketing companies suggest celebrity name to companies for brand  advertisement.
 

Tuesday, 13 November 2012

Variables which determine Corporate social responsibility(CSR) of individuals




                      CSR:-
 
·        The philosophy of Corporate Social Responsibility (CSR) is based on -- “Organizations should think beyond profit and wealth maximization”.

 
·         CSR activities are an integral part of Business strategy for long term business growth.

 
·        CSR practices in business differ from organization to organization.

 
·        Corporate performance is not only judged by financial metrics, but also by social and environmental measures.
 
 
                                   · The individual psychological variables may play an important role in influencing the individual’s attitudes towards CSR (Schlenker and Forsyth, 1977).


 ·       CSR in business is more driven by the personal beliefs and values of the people running the business (Vyakarnam et al.1997, Jenkins 2004)
 
                    CSR variables:- 

·        Individuals with high Machiavellianism employ aggressive, manipulative, exploitative and devious move to achieve personal or organizational objectives (Calhoon, 1969).

 
·        An individual with high extent of religiosity is likely to give more importance to  the societal needs and is likely to have positive CSR attitude (Weaver and Agle,2002).

 
·        Forsyth’s research (1992)  defined idealism as the degree to which a person has a genuine concern (universal moral principles) for others and for taking only those actions that avoid harm to others.

 
·        Richins and Dawson (1992) defined materialism as “a value that guides people’s choice in a variety of  situations, including, but not limited to, consumption arenas”.
 
·        The study of Giacalone and Jurkiewicz(2003)  indicated that spirituality is a significant predicator of individual perceptions of whether specified business practices were considered ethical or unethical.


Friday, 9 November 2012

Style and fashion



Style and fashion:-

  • When in the opinion of a large group of people, a particular Style is popular, that style becomes a fashion.
                            ---- Cundiff and Still

 
  • A fashion is any style which is popularly accepted and purchased by several successive groups of people over reasonably long period of time.
                                                                                           ----- Stanton

  • Style is defined as characteristic or distinctive mode or method of expression, presentation or conception in the field of some art.
                                                                                    ----- P.H.Nystorm

Theory of fashion:-


Trickle down theory- When the new products are proposed or offered to the high class family or a reputed person for sale called Trickle down theory of fashion.

 
Trickle across theory- When the new products are offered to the any type of social class for sale called trickle across theory of fashion.

 

Tuesday, 6 November 2012

Definitions of Marketing




Marketing is process of implementation of intelligent decisions by which marketers mould needs into demands (in a given/target market) and try to fulfil on time profitably so that ownerships are affected and  prospects turned to customers and customers turned to satisfied customers.
                                                                                                              ----- Mrityunjay Kumar
 
Definitions of Marketing by different authors:-
 
  • Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organisational objectives.
                                                                                            --- American Marketing Association.
  • Marketing is the management function which organises and directs all those activities involved in assessing and converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final consumer or user so as to achieve the profit target or other objectives set by a company.
                                                                                             --- Council of the Institute of Marketing
 
  • Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
                                                                                                --- Kotler and Armstrong
 
  • Marketing is the managerial process by which products are matched with markets and through which transfers of ownership are affected.
                                                                                                    ---Cundiff,Still and Govoni
 
  • Marketing is a total system of business activities designed to plan, Price, Promotion and distribute want satisfying products to target markets to achieve organisational objectives.
                                                                ------ Stanton, Etzel and Walker
 
  • There will always, one can assuming be need for same selling. But the aim of marketing is to know and understand the customer. So well that the product or service fits him and seller itself. Ideally marketing should result in a customer who is ready to buy.
                                                                                                             --- Peter F. Drucker
  • Marketing can be defined as a socio economic process within the real of society under which individuals and groups acquire, obtain or purchase the goods or services that they required based on their needs, wants and demad levels through the process of manufacturing, trading and exchanging the products and services of value with others.
                                                                                                             ---- Cundiff
  • Marketing is the term used to describe collectively those business functions most directly concerned with the demand stimulating and demand fulfilling activities of the business enterprise.
                                                                                                            ----- Cundiff and Still
  
  • Marketing consists of the performance of business activities that direct the flow of goods and services from producer to consumer or user.
                              --- The Committee of Marketing Teacher’s association of USA
  • Marketing is the creative management function which promotes trade and employment by assessing consumer and initiating research development to meet them. It co-ordinates the resources of production and distribution of goods and services, determines and directs the nature and fields of the total efforts required to sell profitably the maximum production to the ultimate user.
                                                                                              --- The institute of marketing, England
 
  • Marketing involves the design of the products acceptable to the consumers and the conduct of those activities which facilitate the transfer of ownership between seller and buyer.
                                                                                                       ---- Prof. Harry Hansen
 
 

Thursday, 1 November 2012

The seven goals of marketing



The seven goals of marketing are :-

Attract and retain profitable customers.

Turn problem customers into profitable customers.

Attract new customers.

Find a target, product, place, positioning, and price that maximize revenue.

Maximize emotional value as well as rational (attribute) value.

Use the marketing mix to strengthen the bond between the core product and the physical product.

Use the full product-service experience to strengthen the bond between the core product and the physical product.

Wednesday, 31 October 2012

Brand switching



Brand switching is when a consumer or group of consumers switches their preferences from one brand of a certain type of product to another. This brand switching may be temporary, (example: if Pepsi be not available at the shop a consumer may buy Coke as his next preference) or it may be longer lasting, perhaps for example in the case of products that last longer or from which switching away is harder.

 
Sometimes Brand switching is known  as Brand jumping,  is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers.

Convincing consumers to switch brands is sometimes a difficult task. It is not unusual for customers to build up a great deal of brand loyalty due to such factors as quality, price, and availability. To encourage switching brands, advertisers will often target these three areas as part of the strategy of encouraging brand switching.

Price is often an important factor to consumers who are tight budgets. For this reason, advertisers will often use a price comparison model to entice long time users of one brand to try a new one. The idea is to convince the end user that it is possible to purchase the same amount of product while spending less money.

Tuesday, 30 October 2012

Missing links in Education System


Missing links in Education System

 

Q. Why India is still a developing country and what is stopping it from being a developed country? (This particular question strikes me every time.)

 
Ans.   Indian Education System.

          It is based upon British Colonial Education System (Macaulay’s Minute) came in 1835 to produce Scribes. And that was conspiracy with India.

Missing links at School level:-

      ·        Teachers are not trained. They are not psychologically firmed.

·        Untrained teachers  are 54.91% in private, compared to 44.88% in government schools.

·        No. of Teachers are below the par.

·        Still they believe in traditional approach of teaching. They believe in stopping of questions instead of answering.

·         They don’t give equal opportunity to students, they believe in favour.

·        Max. Student come to school only for showing.

·        Subjects are not well described among students.

·        Students are not focused

·        There is lack in infrastructure of schools.

·         59% of the schools had no drinking water and 89% had no toilets.

·        Private schools are very expensive and do far from poor.

·        Different School Examination Boards having different examination patterns, which create disparity among students.


Missing links at College level:-

·        Teachers are not well qualified, in colleges there is need of PHD scholars.

·        57% of college professors having lack either a master's or PhD degree

·        No. of teachers don’t want to teach.

·        Teachers only teach subjects not its applications.

·        If they be on contract, they are poorly paid.

·        90 per cent of our colleges are rated as below average on quality parameters.

·        Students are not self motivated about studies.

·        They always influenced by their peers.

·        They select their courses as per their friends and choose in group.

·        Syllabuses are not well designed.

·        There are a lot of structural disparity among syllabus of different streams (Arts, Commerce, Science, Medical, Engineering).

·        85% of general graduates are unemployable.

·        75% of technical graduates are unemployable

·        And more than  57% of MBAs are unemployable.

·        Examination patterns of Universities are not good; it is moreover easy writing type.

·        Appointments, including that of vice-chancellors, have been politicised and have become subject to caste and communal considerations, there are complaints of favouritism and corruption


Missing link at Research level:-

  • Students are not motivated about Research level studies.
  • Since Research is cumbersome task so, students don’t want to do; even they don’t think to do.
  •  University (max.) don’t give stipends to their Research Scholars.
  • For doing research work there is need of good Guides but they are not available.
  • Guides (max.) expect favour always from Scholars.
  • Maximum researches are just copy-pest work.

Suggestions:


For Parents:-

·        Parents’ participation is necessary for building of future of our country.

·        They should understand their children motivation.

·        They should not force for making choice, but should give suggestions.

·        This is marketing era, so schools and colleges are also acting like profit making institutions, so Parents should not take part in blind race.

·        Parents should not only praise result but also efforts.


For Teachers:-

·        Teaching is like social work then after profession; if teachers having some other motive then they should not come in this profession.

·        Teaching is above than any profession; because it effects directly to the society. They should not be biased.

·        Teachers should be trained and well paid.

·        At college level, Teachers should be UGC-NET qualified/or having PHD.

·        Teaching is an art so teacher should teach in innovative style; pictorial way of teaching is very good.

·        Teacher should make cordial relationship with students.


For Students:-

  • Students should bear good moral and character.
  • They should obey instructions of teachers.
  • They should make good relations with teachers.
  • For making choice of subjects they should conscious and then after they should be firm over there.
  •  Students should think about some social responsibility.
  • Students should think about Research work and higher studies.

For Syllabus:-

  • Syllabus should be up to date as per international level.
  • In Arts subjects there should of application part.
  • Each subject should be designed as per Case study basis. So that there should be equal importance of all the streams.
  • A few subjects like Philosophy, Psychology, and Sociology etc. should not teach at Junior college level. These are much matured subjects than students.
  • Graduation should be of 4 years and semester wise.

For Examination and Evaluation  pattern:-

  • Examination should be faire and free from the entire flaw.
  • Today’s Examination pattern only judges IQ of the student, but we are made up of the IQ, PQ and EQ.
  • Questions should be both subjective and objective.
  • Marks should give on percentile basis. Grading system is also good there.
  • There should be open book system in examination.

For governing Bodies:-

  • For managing the things governing bodies are most important.
  • Governing bodies should take guard about political interference in Educational institutes.
  • Ragging should be abolishing from educational campus.
  • They should always ready about new positive initiatives.
  • They should be careful about Educational session and publishing of result.

 

Monday, 29 October 2012

We were taught..... but!


  • 85% of general graduates are unemployable.
  • 75% of technical graduates are unemployable
  • And more than  57% of MBAs are unemployable

Sunday, 28 October 2012

Business Strategy


Business Strategy

Business:-

  • The activity of making, buying, selling or supplying goods/ services for profit maximisation.
  • It comprises with Idea, Asset and Income.
  • Every idea is not business idea.
  • Business idea is an Idea which meets the unmet need of a market at profit.
  • Business Model  => Idea+ Asset+ Income
  •  Low price always for a galaxy of products that most people need or want (Wall Mart)

Strategy:-

  • A plan and its movement that is intended to achieve a particular purpose.
  • The process of planning something or carrying out a plan in a skilful way.
  • This word comes from Military.

 

Business Strategy:-

·        Describes how a particular business intends to succeed in its chosen market place against its competitors.

·        A course of action or sequence of action towards achieving the objectives.

·        Shows how a Firm compete within an industry.

·        It is a selection of ideas and assets to meet our Long term goal.

·        It is a designed frame work within which all plans execute.

·        We can say it is an array of  decisions which designed to execute at particular time

·        It is like full proof war strategy( Defensive warfare, Offensive warfare, Flanking warfare and Guerrilla warfare )

·        Making cartel is one of the advance Business Strategy.

 

Constituents of Business Strategy:-

  • Scope
  •  Resources
  •  Uniqueness
  •   Synergy.

Scope:-

  • Scope refers to Functional, Geographical, Product/ Service and Relational limits.
  • Functional limits- marketing, Production etc.
  • Geographical limits- market covered.
  • Products limit- Product line and range.
  • Relational limit- business dealings are internal or external
  • So, Scope refers to span of activities of the Organisation.

Resources:-

  • Domestic or Foreign capital
  • Fresh equity
  • Raw materials
  • Senior or Middle level of employee
  • In house R&D or outsourced R&D

 

Uniqueness:-

  • Shows distinctive competence over competitors.
  • Shows the advantage over competitors.
  • Uniqueness comes due to different Vision and Missions of the Firm.
  • Alternative Plans
  • Close through customers through Retail chains, Speed of action, Internet and Technology

Synergy:-

  • Refers to combinations of sub systems within an organisation, which are sufficient to achieve the objective.
  • Means instead of single, working together.
  • Company to company relationship is also an example (making Cartel).

 

Strategic Mix and Strategy Formulation:-

  • Strategic Mix having 3 levels; Corporate, SBU and Functional level
  • Corporate level- Charted for whole organisation, Deals with “What to do”, It is a Grand Strategy, Retrenchment of Strategy, Curtailment of Goal
  • SBU(Strategic Business Unit) level- Concerned with “ What to do for particular Unit”; Defender, Reactor, Analyser and Prospector Strategies
  • Defender Strategy- Satisfied with present situation; Market leader; perhaps in niche market; don’t want to take risk; they are market leaders.
  • Reactor Strategy-No opportunities perhaps threats are faced
  • Analyser Strategy- Firm is not silent; modifying course of action; want to take risk; new companies
  • Prospector strategy – looks for new opportunities; imbibe with old and modern working culture.
  • Functional level- Concerned with “ How”; Functional areas like Marketing, production, Finance, Personnel, and R&D
  • Board of Directors and CEO formulates corporate level strategy, The CEO and Functional heads formulates Business unit level Strategy and Functional heads and his subordinates formulate Functional level strategy.