Retail Comunication_v3 (1)

7/24/2019 Retail Comunication_v3 (1)

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Retail CommunicationPresented By- Group 2

Chapter - 12

SUBMITTED TO

PROF.DEVASHISH DAS GUPTA

INDIAN INSTITUTE OF MANAGEMENT, LUCKNOW (NOIDA

CAMPUS)


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PREPARED BY: GROUP-2

ANKIT DUDEJA [WMP0906!

ANOOP SINGH [WMP0906"!

GAURAV SHARMA [WMP090"0!

PRATEEK RAI#ADA [WMP0909!

SIDDHARTH SHANKAR [WMP09$$0!


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Introduction

RetailCommunicationStrategy

External

Out of store or divergentcommunication uses mass

media vehicles such astelevision, nespapers and

radio!

Internal

"n store or point of purchasecommunication


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The Internal or Convergent communication

# $he internal or convergentcommunication aims togenerate impulsepurchase

and informs the customer ofvarious offers!

# Stores use tools such asvisual merchandising,

signageand graphics, andother forms of point-of-purchase communication%PoP& to achieve a com'ined

effect!


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# "t comes into play once customer is ithin the precincts of store!# Customer interprets the communication according to their cognitive and affective

predisposition!!

# "t(s a different form of advertising ) "t happens at point of action!

"t is dependent on *ind of product 'ought and customer fre+uency to visit shop! "t s dependent on Retailer and store to greater etent!

The Internal or Convergent communication


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Role of POP

# POP materials ensureprecise mar*eting!

# or manufacturer POPmaterial is more cost

effective than mass mediaadvertising!

# POP acts as a surrogatesalesperson!

#.ttractive and informative

PoP reduce dissonanceduring aiting time!

# "t helps in ma*ing shoppinginteresting thus removing

frustration involved!

# "t activates consumer(smemories related to a 'rand

and helps to ma*e a purchasein 'rand(s favor


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Encoding Specificity Principle

# Recall or retrieval of certain piece ofinformation is enhanced hen thecontet in hich the information asencoded is similar or the same!

# /igh level of 'rand aareness does not

alays translate into sales! Shoppers dota*e into consideration the informationthey ac+uire in stores, in addition torelying on out of store communication

# .dvertising attracts0 'ut the success of all

communication efforts in many casesdepends on the last of the effort hichmanifests itself at the POP 3ust 'efore theconsumer chooses to 'uy, rather than the4 that preceded it


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Role of Packaging

VIEW Model

5 6 5isi'ility or a'ility of a pac* to stand out on ashelf!

" 6 "nformation or provision of relevantinformation such as 7sage "nstruction and

"ngredients!8 6 8motional appeal

9 6 9or*a'ility or dura'ility or easy storage!


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Role of Packaging

# Pack Structure) helps in stoc*ing as ell as'uilding 'rand e+uity! "t influences perception ofthe product 6 eample, co*e 'ottle stri*esemotional chord ith customer via its grip , feeland aesthetic value!

# Graphics) communicating 'oth informative and

emotional message! "t communicates Brandidentity ,product name ,product description,flavour or variety identification , attri'utedescription !


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Role of Packaging

# Brand Identity) $o 'uild 'rand recognition and creatememora'ility and loyalty! Brand logo is part of it!

# opy) Communicates product information regarding its

usage and attri'utes!# olour)emotional and su'3ective part of pac*aging!Sets the mood

:ifferentiating product varieties and flavouror ne product it 'rings association ith actualproduct inside!


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Shopping Involvement

# People ehi'it either ;economic( or ;recreational(shopping 'ehavior!

# "nvolvement has 'een treated as ma3or socio-

psychological varia'le that eplains individualdifferences!


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Level of information search and

involvement# POP." uses folloing categori


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Impulse Purchases


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Impulse Purchases

# >ade in a store that are different from thosecustomer planned to ma*e 'efore entering the store

# Pure "mpulse -) 8scape that 'rea*s normal 'uyingpattern

# Reminder "mpulse -) Shoppers remem'er thatstoc* of this good is lo

# Suggestion "mpulse -) Shopper visuali


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Classification based on benefits soughtPerformance!Benefit of Store

onvenience Variety Specialty

Convenience /igh >edium ?o

.ssortment=5ariety

?o /igh >edium

Shopping8perience

>edium ?o /igh


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Epectation based on POP communication

model#Low Involvement Shopping at

Convenient storehere the involvement ofthe shopper is very lo and the effort theyepend is also lo!$he choice of store is 'ased on the convenience

of location!

$he POP communication in such a situation isvery helpful in affecting 'rand sitch!Pac*aging ould 'e the most potent

communication tool!


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Low Involvement Shopping at Variety

Stores :# Low Involvement Shopping at Variety Stores

:"n this case, although the shopper(sinvolvement is lo, the store provides variety!

# "n this situation the shopper as*s for a 'rand 'utdoes not mind sitching if the preferred 'rand isnot availa'le! $he idea is to 'uy from the samestore and not to ta*e the trou'le to go to otherstores!

# $he retailer has to rise a'ove the clutter andstand out among stores selling similar products!


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Low Involvement Shopping atExperience Centric Stores:

# Low Involvement Shopping at ExperienceStores: "n this situation, the shopper is store-loyal and due to lo involvement ith the

product, he does not ant to eert any etra effortto 'uy a 'rand!

# Such shoppers are more prone to impulse 'uyingand ith little persuasion ill 'uy more products!

# $he retailer must stimulate shoppers to try moreproducts!

# $he retailer should try to retain the shopper for

the longest possi'le time for increased purchases!


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Medium Involvement Shopping at Convenient Stores

# "n this case, the shopper is more involved thanin the previous case, 'ut ould prefer to 'uy

from a store that is conveniently located!# $he shopper see*s variety and thus apart from

store location, assortment of products also'ecomes important!

# $he shopper ants optimi


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Medium Involvement Shopping at Variety Stores

# $he shopper has a medium level of involvement in'uying and is loo*ing for options in terms of 'enefits

derived from the store! $he 'asic 'ehaviour isvariety-see*ing!

# $he shopper see*s variety not 3ust in products 'utalso amongst stores! Store location is of importance

and so is the eternal appearance of the store!# $he challenge is to get the mind as ell as allet

share 'y leveraging on tangi'le 'enefits such asschemes and price discounts! Category management

is an important function in such stores!


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Medium Involvement Shopping at Experience Stores

# Medium Involvement Shopping at Experience Stores: "nthis case, the shopper has already decided upon the store

and ould aim to see* variety ithin the chosen store!# $he communication challenge is to provide the re+uired

information and reduce dissonance 'y ma*ing the 'uyingprocess more personal and involving!

# $he shopper ill spend more time in the store! Shopping

in such cases is a planned process and not 3ust an activity!# $his provides the retailer an opportunity to push his on

retail 'rands! $he strategy here is to offer 'etter serviceand provide add-on intangi'le 'enefits!


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High Involvement Shopping at Convenient Stores

# High Involvement Shopping at Convenient Stores

# "n this type of shopping, the shopper is see*ing a

particular 'rand and is also ready to epend effort to'uy it!

#. store that is conveniently located and stoc*s there+uired 'rand ill gain the patronage of such

shoppers! Stores near or on the ay to or*placeould often fall in this category!

# :ue to easy availa'ility and high visi'ility, thecommunication at the shop reinforces the shopper(s

'elief in the 'rand and enhances 'rand salience!


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High Involvement Shopping at Variety Stores

# High Involvement Shopping at Variety Stores Shoppersvisiting such stores have already decided on the 'rand

that they ish to 'uy!# /oever, they ould li*e to reassure themselves 'y

collecting information a'out competing 'rands!

# $hus the retailer has to provide information forcomparison and let the shopper re-evaluate the decision!

# "n this case, if the shopper gets more value for the sameprice, he ill sitch0 otherise he ill stic* to theoriginal 'rand choice, even hen other 'rands areoffering the same features at a loer price!


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High Involvement Shopping at Experience Stores

# /ere, 'oth the store and 'rand are pre-decided and thereis high loyalty toards them!

# $he shopper prefers stores that give the 'estidentification ith the self-image of the shopper!8clusive 'randed shorooms ould fall in thiscategory!

# /ere the retailer has to pro3ect the store as a destination!$he retailer should give personal attention to shoppersand should *no the li*es and disli*es of an individualshopper! .tmospherics, spatial visual and merchandisingshould 'e used to induce longer stays 'y shoppers!

Retail Comunication_v3 (1)

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