Thursday, August 16, 2012

How battles are won and lost in the shopper's trolley!


First, a factoid. More than half of all brand selections are done at the store, and more than 40 % purchases are unplanned. Welcome to the brand battleground. Store visits are critical to get a first-hand feel of how one's target consumers behave as shoppers in different channels and formats.

During my visits to Big Bazaar stores, I observe closely the shelf display, visual merchandising, supply fulfillment from our vendor-partners, promotion execution, price communication and checkout efficiency. Of course there are visits to distribution centres as well as consumers' homes to check out what's occupying prime space in refrigerators. But one needs a trained eye to catch the insights and then act on it.

Indians like to save for rainy days, so the consumption rate is always lower than their income. We focus obsessively on the retail 'shop-floor', continuously evaluating our plans and adding consumption upping activities on a regular basis. In my view, the propensity to shop way beyond the planned purchase is fuelled by in-store theatrics. The store layout provides for infinite browsing. The customer is always prone to respond to the retailer's engagements.

While on store rounds, by simply planting myself amongst the customers on the floor, I gather numerous insights. A conversation here and a 'hello' there go a long way. While these conversations typically centre around analysis of various offers and new products on display, many demandcreating ideas have actually come up while interacting with customers. In one such case, a mother's concern with the hazards of a glass ketchup bottle that her kid found very difficult to handle led to the design, development and launch of our private brand ketchup in flexible pouches. Not only was it cost-effective but the children found it much more convenient. Another interesting insight into drinking soup from a mug at home rather than soup bowls led us to the launch an instant soups private brand with a promotion campaign that said 'Ab Soup ka maza mug mein' - which we promoted by giving a large mug with soup packs.

Since it is important to connect communities to stores, the direct feedback one takes from the store helps keep assortment relevant. Insights come when you walk around and notice shopping patterns. For example, a Malayalee consumer in Delhi wants his Red Matta rice, and a Bengali consumer in Mumbai will hunt for his favourite kasundi. These are just a few learnings

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