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Retail customer


Retail Customers

Types of Customers

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Retail Customers

  1. 1. RETAIL…………… Presented By Vishal V. Wadekar
  2. 2. About Retail….. <ul><li>Till now we all have studies : </li></ul><ul><li>What is Retail. </li></ul><ul><li>How it came into existence. </li></ul><ul><li>The process of Retail. </li></ul><ul><li>The Share of Organized Retail. Etc… </li></ul><ul><li>Now let study little more about Retail customers, potential of them and many more…….. </li></ul>
  3. 3. Five Specific Retail Consumer Categories Pleasure Seekers Focused Fulfillers General Browsers Time Killer Product Groupie
  4. 4. About Them…. <ul><li>Time Killers : A person most likely to be waiting for a partner or on a lunch break, quickly passing through the store, had the least probability of buying something, and was also the least likely to be converted into a buyer. </li></ul><ul><li>The pleasure Seeker : It is the most important consumer, as he/she is the easiest to influence. They spend the longest time in store, slowly move through the department, and touch more than 40 products compared to an average of 13 products of other consumer types. </li></ul><ul><li>Focused Fulfiller and Product Groupies, they know exactly what they want, whereas women can be found across all five groups, but particularly across the pleasure seekers. They are much more likely to touch the products, whereas men spend less than 50 per cent of the time women spend in store. </li></ul>
  5. 5. Characteristics of Retails Customers
  6. 6. Time Killers <ul><li>Move around the stores at speed. </li></ul><ul><li>Cover a lot of the store. </li></ul><ul><li>Spend relatively short amounts of time in the store. </li></ul><ul><li>Typical of someone waiting for a friend or partner, or on a lunch break. </li></ul><ul><li>Low probability of interacting with the product. </li></ul><ul><li>Conversion Rate: 0 % </li></ul>
  7. 7. Focused Fulfillers <ul><li>Will move quickly through a store until they get to a specific product. </li></ul><ul><li>Likely to have previewed the product. </li></ul><ul><li>Once in the area will only interact with products that meet their specific criteria. </li></ul><ul><li>Conversion Rate: 82% </li></ul>
  8. 8. Product Groupies <ul><li>Will walk into the store and head for a specific department or category </li></ul><ul><li>Once in the target area of the store will slow down and browse with the purpose. </li></ul><ul><li>Will touch many products but focused on the target product group. </li></ul><ul><li>Conversion Rate : 37% </li></ul>
  9. 9. General Browsers <ul><li>Cover large areas of the store. </li></ul><ul><li>Move slower than time Killers. </li></ul><ul><li>Likely to interact with product, but not in a focused way. </li></ul><ul><li>Conversion Rate : 2 % </li></ul>
  10. 10. Pleasure Seeker <ul><li>Spends a long time in the store. </li></ul><ul><li>Will slowly move through departments that interest them. </li></ul><ul><li>Will touch a lot of items. </li></ul><ul><li>Easily influenced by staff interaction. </li></ul><ul><li>There is an urgency about them, as if they have to buy within a certain time. </li></ul><ul><li>Typical behaviour of people after payday. </li></ul><ul><li>Conversion Rate : 79 % </li></ul>
  11. 11. Sub Category of Buyer Personality Type
  12. 12. The Apathetic Buyer <ul><li>This type of buyer represents about 5 % of the total. </li></ul><ul><li>She is the kind of person who is not going to buy anything, no matter how good it is. </li></ul><ul><li>She is usually pessimistic, cynical and often depressed or uninterested. </li></ul><ul><li>They have usually have a lot of problems in their own personal and business lives. </li></ul><ul><li>Even if you are offering an apathetic buyer a Rs. 1000 price for Rs. 50 , she wouldn’t take it. </li></ul>
  13. 13. The Self-Actualizing Buyer <ul><li>These kind of buyer is opposite to the apathetic buyer. </li></ul><ul><li>These buyers also represent about 5 % of the customer market. </li></ul><ul><li>She knows exactly what she wants, exactly the features and benefits he is seeking, and exactly what price he is willing to pay for it. </li></ul><ul><li>She is positive, pleasant and a pleasure to deal with. </li></ul><ul><li>The buyer are rare. </li></ul><ul><li>In dealing with them always sell them exactly what they say they want. </li></ul><ul><li>Don’t try to talk them into something other than what they have their heart set on. </li></ul>
  14. 14. The Analytical Buyer <ul><li>This person represents about 25% of the market. </li></ul><ul><li>She is self-contained and task oriented. </li></ul><ul><li>She is not particularly outgoing, but she is quite concerned about accuracy and detail. </li></ul><ul><li>The primary motivator of such analyzer is accuracy. </li></ul><ul><li>Slow down and be exact, avoid generalization. </li></ul><ul><li>Be specific and Clear. </li></ul><ul><li>Be prepared to prove, on paper, everything you say. </li></ul><ul><li>Such customers do not make decisions in a hurry. </li></ul><ul><li>They will often come back to you with a series of questions for clarification. </li></ul><ul><li>Don’t RUSH this people. </li></ul>
  15. 15. The Relater Buyer <ul><li>This is the relationship oriented buyer. </li></ul><ul><li>These represents approximately 25 % of the customer market, depending on what you sell. </li></ul><ul><li>They tend to be self-contained and not particularly exuberant or expressive. </li></ul><ul><li>Relaters are very concerned about people. </li></ul><ul><li>They are sensitive to how people think and feel about various subjects. </li></ul><ul><li>They are concerned about how people might react or respond to their choices. </li></ul><ul><li>They are often hypersensitive to the opinions of other people. </li></ul>
  16. 16. The Driver Buyer <ul><li>She is more task oriented than any other kind. </li></ul><ul><li>She has the personality profile of the director. </li></ul><ul><li>She is direct, impatient, and wants to get straight to the point. </li></ul><ul><li>She is businesslike and practical. </li></ul><ul><li>Her greatest concern is getting RESULTS. </li></ul><ul><li>She doesn’t like small talk, and she has no interest in developing a warm relationship with the sales person. </li></ul><ul><li>She want to get to the bottom line quickly and make a decision yes or no. </li></ul><ul><li>They are people who get the job done fast and do it well. </li></ul><ul><li>They are busy and preoccupied. </li></ul><ul><li>They only want you to answer the question, “What’s in it for me?” </li></ul>
  17. 17. The Socializer Buyer <ul><li>This person is outgoing and extroverted. </li></ul><ul><li>He likes working with and through people to get results. </li></ul><ul><li>He is often called the “integrated buyer” in that he operates with a nice balance between people orientation and task orientation. </li></ul><ul><li>They are achievement oriented. </li></ul><ul><li>Her extroverted, socializer-type mature. The chief concern of this person is himself and other people. </li></ul><ul><li>He like to talk about you as wll as himself. </li></ul><ul><li>He likes to talk about achievement and results. </li></ul><ul><li>Put it on paper while dealing with them. </li></ul><ul><li>They represents about 25 % of the customer market. </li></ul>
  18. 18. <ul><li>Survey – Source Business Standard </li></ul>Result across the Potential Countries
  19. 26. The A.T.Kearney report. <ul><li>The Retail sector in India has been hot for last 18 months or so…The huge Indian middle class consumer are now the blue eyed segment for biggies like Bharti, Wal-Mart, Reliance and loads of others, in race to capture their pie in Indian Retail Market. </li></ul><ul><li>The modern retail Industry in BRICs (Brazil, Russia, India and China) is seen as having the maximum potential on growth worldwide. It grew by almost 30% in India and 13% in China and Russia last year. As the developed markets are becoming mature, retailers are eyeing new growth opportunities in upcoming economies. </li></ul><ul><li>A.T Kearney, in their report, “Growth Opportunities for Global Retailers ” have ranked India at No.1 position consecutively for the second year. The report sees Indian retail Industry to grow exponentially over next few years. The ranking has been done for 30 upcoming global economies.  </li></ul><ul><li>It is based on 4 broad categories namely - Country Risk, Market Attractiveness, Market Saturation and Time pressure for a new entrant to start retail business. </li></ul><ul><li>India, as per the report, ranks highly on Market saturation and time pressure as compared to China and Russia. The aggregated score for India stands at 92, followed by Russia at 89 and China with 86. </li></ul><ul><li>Here is the snapshot for the top 10 countries as provided by A.T.Kearney report </li></ul>
  20. 27. The 2008 Global Retail Development Index
  21. 28. Window of opportunity analysis
  22. 29. Key issues in indian retail sector
  23. 30. GRDI 2007 Country Attractiveness
  24. 31. Key Players
  25. 32. Key Players Pantaloons Retail India Limited <ul><li>Pantaloon Retail India Limited (PRIL), a Future Group venture started its operations with Pantaloon Shoppe in 1993 and has since emerged to be the retailing giant of India with over 5 million square feet of retail space spread over 450 stores across 40 cities in India. </li></ul><ul><li>Pantaloons Retail has many firsts to its name in the Indian market, with discounted store formats like Brand Factory etc. setting benchmarks for new players entering the market. Innovative store formats like Hometown - a one stop shop for all the home requirements, Sports Bar- a sports theme restaurant complete with game courts and screens for match viewing, Health City- a value segment targeted spa and beauty care venture etc., are hitting the market, consolidating the market position of PRIL. </li></ul><ul><li>The unique selling proposition of Pantaloon Retail is the dual approach to tap both the “value” segment and “lifestyle and luxury” segment consumers , by establishing retail formats in each segment like Big Bazaar, Fashion Station etc. aimed at value retailing while Central, Pantaloons captures the lifestyle segment consumers . </li></ul>Source: Company Reports
  26. 33. Key Players Shoppers Stop Limited <ul><li>Shoppers Stop, established in 1991 with its flagship store- Shoppers Stop, has now expanded to over 100 retail outlets spread across 1.1 million square feet of built-up area, spanning the entire spectrum of retailing verticals and formats. </li></ul><ul><li>Private labels account for more than 21% of their retail revenues , with Shoppers Stop clocking impressive total number of transactions to customer footfalls ratio (conversion ratio) of 27%. </li></ul><ul><li>Strategic partnerships with international retailing players like Mothercare Plc of Britain and Leisure & Allied Industries of Australia, are aiding Shoppers Stop in catering to niche markets. </li></ul><ul><li>Aggressive expansion plans are in pipeline for formats like Timezone , a leisure and entertainment format venture and Brio- the coffee bar located strategically in their Crossword bookstores. </li></ul>
  27. 34. Key Players <ul><li>Established in 1998 </li></ul><ul><li>Revenues: US$ 53 million </li></ul><ul><li>Retail sector activity: Apparel, Specialty– books and music </li></ul><ul><li>Current store format: Hypermarket, Supermarkets </li></ul><ul><li>Future plan: New venture-Infiniti Retail Ltd. </li></ul><ul><li>Manufacture private labels in apparels </li></ul><ul><li>Principal fascia: Westside, Landmark, Star India Bazaar </li></ul>Tata Trent Ltd. <ul><li>Established retail in 1996 </li></ul><ul><li>Revenues: US$ 182 million </li></ul><ul><li>Retail sector activity: Food & grocery, beauty products, specialty- music </li></ul><ul><li>Current store format: Convenience stores, supermarkets, hypermarkets </li></ul><ul><li>Current outlets: 279 outlets </li></ul><ul><li>Music world has tie ups with 350 affiliates across the country. </li></ul><ul><li>Future plan: by 2009 set-up 2000 stores in India </li></ul><ul><li>Principal fascia: Spencer’s, Music World </li></ul>RPG Enterprises <ul><li>Present in India since 1999 </li></ul><ul><li>Retail sector activity: apparel, home décor & furnishing </li></ul><ul><li>Current store format: Department stores, hypermarkets </li></ul><ul><li>Current outlets: Lifestyle-10 outlets, Max Retail-4 outlets </li></ul><ul><li>Future plan: Presence in mini metros and Tier-II cities </li></ul><ul><li>Principal fascia: Lifestyle, Home Centre, Max Retail </li></ul>Landmark Group
  28. 35. Key Players <ul><li>Established in 1965 </li></ul><ul><li>Revenues: US$ 91.5 million </li></ul><ul><li>Retail sector activity: food & grocery, beauty, specialty- electronics & home appliances </li></ul><ul><li>Current store format: Supermarkets, Hypermarkets </li></ul><ul><li>Current outlets: Vivek-23 outlets, Jaisons-26 outlets, Premier-3 outlets </li></ul><ul><li>Future plan: Set up 60 stores in South India </li></ul><ul><li>Principal fascia: Viveks, Jaisons, Premier </li></ul>Vivek Group <ul><li>Established in 1998 </li></ul><ul><li>Retail sector activity: Apparel </li></ul><ul><li>Current store format: Stand alone stores </li></ul><ul><li>Current outlets: 21 </li></ul><ul><li>Future plan: To set up 100 stores by 2008 </li></ul><ul><li>Manufacture private labels under Globus and F21 </li></ul><ul><li>Principal fascia: Globus </li></ul>Globus <ul><li>Established in 1988 </li></ul><ul><li>Part of the Aditya Birla Nuvo Group </li></ul><ul><li>Retail sector activity: Apparel </li></ul><ul><li>Principal fascia: Louis Philippe, Van Heusen, Allen Solly, SF jeans, Peter England </li></ul><ul><li>Joint Venture with international brands: Esprit </li></ul><ul><li>Current outlets: Planet Fashion-50 outlets, Trouser town-9 outlets </li></ul><ul><li>Future plan: Projected to increase to 300 outlets by 2009 and diversify into the women’s wear segment </li></ul>Madura Garments
  29. 36. Key Players <ul><li>Established in 1997 </li></ul><ul><li>Turn over of US$ 75.6 million </li></ul><ul><li>Retail sector activity: food, medicines </li></ul><ul><li>Current store format: Supermarkets </li></ul><ul><li>Current outlets: 150 outlets </li></ul><ul><li>Future plan: To set up 600 stores with 145 stores in NCR region </li></ul><ul><li>Principal fascia: Subhiksha </li></ul>Subhiksha Trading Services <ul><li>Established in 1986 (Taken over by Aditya Birla Nuvo Group in 2006) </li></ul><ul><li>Revenues: US$ 58.5 million </li></ul><ul><li>Retail sector activity: Food & grocery, beauty products </li></ul><ul><li>Current store format: Convenience stores, supermarkets, hypermarkets </li></ul><ul><li>Current outlets: 150 outlets </li></ul><ul><li>Future plan : To enter into pharmacies, apparel, footwear </li></ul><ul><li>Principal fascia: Trinethra Super Retail LTD., Trinethra Quick Shop </li></ul>Trinethra Super Retail Ltd. <ul><li>Established in 1904 </li></ul><ul><li>Revenues: US$ 30.5 million </li></ul><ul><li>Retail sector activity: Food & grocery, specialty- bakery products </li></ul><ul><li>Current store format: Supermarkets </li></ul><ul><li>Future plan: To increase stores to 100 </li></ul><ul><li>Principal fascia: Nilgiris </li></ul>Nilgiris Ltd.
  30. 37. Key Players <ul><li>Established in 1997 </li></ul><ul><li>Revenues: US$ 38.1 million </li></ul><ul><li>Retail sector activity: apparel, footwear </li></ul><ul><li>Current store format: Stand alone stores </li></ul><ul><li>Current outlets: 139 outlets </li></ul><ul><li>Future plan: To manage and develop malls </li></ul><ul><li>Principal fascia: Provogue, Prozone </li></ul>Provogue Ltd. <ul><li>Present since 1931 </li></ul><ul><li>Revenues: US$ 179.8 million </li></ul><ul><li>Retail sector activity: Footwear and accessories </li></ul><ul><li>Current store format: stand alone stores </li></ul><ul><li>Current outlets: 1100 outlets </li></ul><ul><li>Future plan: To remodel 150 stores and open 40 more stores </li></ul><ul><li>Principal fascia: Bata </li></ul>Bata India Ltd. <ul><li>Present since 1979 </li></ul><ul><li>Revenues: US$ 20.8 million </li></ul><ul><li>Retail sector activity: Specialty-cards & gifts </li></ul><ul><li>Current store format: stand alone stores </li></ul><ul><li>Future plan: To increase from 73 stores to 200 by 2008 </li></ul><ul><li>Principal fascia: Archies, Stupid Cupid </li></ul>Archies Ltd.
  31. 38. Players Across Verticals Food and Grocery Clothing and Textiles Jewelry and Watches Footwear Source: Industry Sources
  32. 39. Players across Verticals Home Décor and Furnishings Electronics Beauty Care Books and Music Source: Industry Sources
  33. 40. International Retailers Source: The Financial Times, Industry Sources
  34. 41. Source Euromoney, world bank, global competitiveness Report 2005-2006, A.T. Kearney analysis
  35. 42. Thanks for Shopping
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