On line Retail Buying Merchandising Retail Process
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www.hand2handsolutions.in Managed Retail Services (mRS)™ Hand2Hand Solutions Knowledge. Experience. Results 06/19/2022 1 [email protected]
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On line Retail Buying Merchandising Retail Process, Models and Strategies Understanding from Consumer Perspective
Transcript of On line Retail Buying Merchandising Retail Process
04/10/2023 [email protected] 1www.hand2handsolutions.in
Managed Retail Services (mRS)™
Hand2Hand SolutionsKnowledge. Experience. Results
04/10/2023 [email protected] 2
Understanding from
Consumer Perspective
Buying MerchandisingRetail Process,
Models and Strategies
Online Retailing
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Key Shoppers Insight
Shoppers have difficulty making decisions
Shoppers want to feel smart when making decisions
Shoppers’ limited ability to process too much information
Shoppers use memory to give meaning to objects
Shoppers need consistent messages in and out of the store for buying
Discontinuity creates triggers to attract shoppers’ attention
Shoppers recognize visual stimuli most easily
Shoppers use familiar segments to speed up their selection process
Shoppers’ love to be rewarded for regular purchase
Shoppers need to be reminded of the items they need
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Online Target Shopper
Who is the Shopper
Younger and Single
Between the age of 25 and 40
Median Income 10 to 50 lac per annum
Dual income household with kids
Technologically competent
High disposable income
Time starved - willing to trade money for
time
Fashion conscious (must be seen doing the
latest thing)
White collar, professional
Why they will buy online
Convenience
24-hour access
Shop without leaving home
Saves time & money
Prices compare favorably
Won't forget items
Better selection
Can find new products
Can shop from work
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Value Proposition
OnlineCustomer
Latest & Trendy products
Ease of order and use website.
Delivery at a time to suit customer.
Personalized shopping
experience
Saving & tracking monthly purchase
Exclusive deals for all
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Value Proposition Features
Value Added Relationships
STRATEGIC Value: Marketing
Alliance with Leading email
companies
▪ Value for Customer: Sense of
security and identification
with trusted brand name.
Value Added Features
Match Lowest Competitor Price
Clubs for Special Occasions (Birthday
party for weddings)
Wish List, Reminder List, Gift
Registry, Purchase History
Free Internet Access, Webpage,
Email, Horoscope
Checking Order Status Online and by
SMS
Online Shopping Assistants
Multilingual (English Hind )
Multiple Ship To Addresses
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Factors Attracting & Retaining Customers
Attraction Factors Retention1 Price 102 Product Presentation 33 Product Selection 94 Shipping &Handling 45 On Time Delivery 26 Ease Of Ordering 67 Customer Service 18 Product Information 79 Privacy Policy 5
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Online Grocery SalesKey Components
Components Variables Challenges
Order Size
Type of shopping occasion.Growth in frequency may lower order size
Frequency of shop Requires weekly shop/large ordersHousehold size /demographics
Not set up for large number of small orders
Order Frequency
Consumer planning horizon Reasonably high level of planning
Order size and Pack Size Availability of desired delivery slot
Willingness to hold inventory Disposable income
House Hold Penetration
Households with computer & internet
Households most able to order may be least willing to order
Knowledge of online retail Gen X & Y not planning mealsConsumer behavior patters High food away purchase Break down of traditional meals
Shopper will pass traditional market at least 2 times a day
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Online Merchandising
Planning
Storefront Design
Content
Catalog
Price
Search and Promotions Management
Product presentation greatly affects online decision?
Primary Sight: many pictures Touch: proxies with close-
ups? Function: product shown
in-use and product details Secondary
Comparative: comparison tables
Subjective: customer ratings
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Active MerchandisingDriving Revenue
1. Communicate special offers clearly and
early in the buying process.
2. Place KVI /featured items above the fold
on the Home page.
3. Use brands, categories, and situational
merchandising (Party, Birthday..etc to
suggest products.
4. Maximizing up sell and cross sell
opportunities
Attract new customers (increase
conversion rate).
Increase volume of sale
(increase AOV).
Give customers more chances
to buy more often.
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Pricing Strategy
Methods
High markup on lower
volume
Low markup on higher
volume
Price Bundling /
Unbundling
Monthly Pricing
KVI pricing
Promotional Pricing
Objective of Pricing
Increase profits
Attract new customers
Maintain current customers
Increase profit per customer
Introduce new product
Generate cash
Improve ROI
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Promotion Startegy
Group Deals
Buying Cycle Deals
Monthly Deals
Annual Buying Promotion
Registration Promotions
Direct mail
Mobile Applications
Catalogs
TelephoneInternet
Home and office
parties
RWADoor-to-
door sales
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Buying Models
Trader -2
Customer
Warehouse &
Distribution Centre
(DC)
Delivery
Customer Service Centre
Trader -3
Trader -4
Trader -5
Operations
Trader -1
MF / CNF
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Buying Models
Distributor
Customer
Warehouse &
Distribution Centre
(DC)
Delivery
Customer Service
Centre
Buying Agency
Cash & Carry
Wholesale Trader Manufacture
s
•20,000-50,000 SKU•Maintain KVI Branded Product minimum Inventory
Company Managed
Agency Managed Agency Managed
Operations
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Oder Fulfillment Process
Buying/Replenish
ment
Customer
Warehouse &
Distribution Centre
(DC)
DeliveryCustomer
Service Centre
Operations
T1
Central Databas
e
Order
Order Confirmation, Delivery Confirmation, Feedback
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Delivery Models
Option-1
Online Order or Tele order Free home or office delivery
Option-2
Online Order or Tele order –Deliver at Store
Key Aspects
Next day service -Pre-scheduled & Informed
Order-on-demand
Same Day delivery window
Minimum Order value Rs 1000
Unattended delivery will be cancelled or delivered Next Day
Challenges -Returned Of Goods:
If customer is not satisfied with the product.
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Expertise
Professionalism
Networking
Integrity
About Hand2Hand Solutions Launched in 2009
Some of best and growing retailers as clients
Experienced Team of Consultants from Retail & Recruitment Domain
500 man months of retail experience with Reliance Retail, Aditaya Birla Retail, Spencer Retail, Johnson Controls &[email protected]
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For More Detail -ContactEducational Background
Fashion Retail Management from NIFT Delhi PGDBM, Fortune Institute Of International Business,New Delhi Diploma In Sales & Marketing, Sales & Marketing , NIS Sparta
Amit Garg Head Retail BusinessRetail, Grocery, FMCG and
Lifestyle
11 plus years of experience with Reliance Retail, RPG Spencer & Aditya Birla Retail. experience in
retail diverse functions like, Buying,Merchandising,Sourcing,Vend
or Management,Operations,SCM,Logisti
cs,Recruitment,Marketing & Retail Software implementation. [email protected]
[email protected] www.hand2handsolutions.in New Delhi, Gurgaon & NCR
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