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.

 
 

10 comments:

  1. good.
    well researched and comprehensive points.

    if you could also add some points that government can keep in mind when they allow fdi in retail in india..that is recommendation for state governments so that impact on kirana stores is minimized... mutual growth is possible.
    Also recommendations for these major giants like walmart..
    This will complete the recommendation for all major stake holders..

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  2. But all in all it is very good thought out practical, implementable solutions for kirana stores..

    Thus,a very good paper.. indeed !

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  3. Actually my objective of this study was only on Purchase shift, from Kirana to Organised retail outlet, especialy on Monthly/Bulk purchase.

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  4. Death of Kirana in India is not possible, as for example, for single Biscuit packet we would not prefer to go to big retail outlet than nexdoor Kirana shop.
    FDI and Govt. norms are subject matter of Macro economics, we were working within micro economics variables.

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    1. Yes..agree that would be a separate area .

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  5. Great thoughts put up in very clear and yet comprehensive manner! Also it would further help people understand the marketing stats and the micro economical section which is beautifully highlighted in this post! Must say, good research and again a great post Mrityunjay! U made me feel proud!!! God Bless and Keep Writing!

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  6. Thanks a lot; I will keep writing on different -different topics of marketing (as per my experience and insight of marketing). You will be Very happy to know that this article will be publish in one of the leading Publication’s Journal of Marketing, may be in upcoming February/March issue.

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    Replies
    1. Great work! Do send me copy if possible of your published post or an online link of the same. Best Wishes!

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  7. Thanks..,I will give you hard copy of that.I haven't put up full lenght paper online, because it has to publish yet.

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