Page 140 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 7: The Customers and the Retail Business: Knowing Your Customers

the brand may have to ensure that the brand (and the variants demanded) will be available at the Notes
key outlets in a locality. Point-of-purchase materials which are to be used at the retail outlet may
require primary research - should visuals be used, should product features be used, should the
POP material be in the regional language. There may also be a need to monitor competition
from other retail outlets to ensure that consumers are kept satisfied in terms of service, price,
promotional deals and ambience. This is especially applicable to durables retailing in India (in
cities). Retailers attempt to increase consumer traffic by providing a number of ‘add-ons’.

Brand First and Outlet Second
The brand was probably thought of by the consumers because (i) the consumers may not have
developed a relationship with any retailer which is strong enough to get into the ‘evoked retail
set’ or (ii) the brand has got into the evoked set because of advertising or positive word of
mouth. Local advertising with the mention of brand names which have already got into the
evoked set would enable consumers to be ‘pulled’ to the outlet.

Primary research may be required to identify the brands in the evoked set. This feedback may
have to be provided by the manufacturers of a brand to retailers in various regions (especially
if it is a brand with a major chunk of the market and one which is nationally advertised). Even
multinational outlets could make use of this approach and mention the brands in the evoked set
(in a given geographical area). This is likely to improve traffic to the outlet. Besides, the evoked
set could also change from time to time depending on the strategies of brands.
About two decades ago, brands like Solidaire, Dyanora and Crown may have been top-of-the-
mind (in a specific geographical area) but slowly gave way to other brands - these changes
should be captured (how often this happens, why, and the differences between markets) to
formulate retail strategies. The local advertising could be different from the national advertising
for the brand. A brand may be advertised on features nationally but the retail outlet in may
prefer to highlight the effective after-sales service associated with the brand as this may be a
priority of consumers. The combination of ‘push-pull’ strategy is shown in the table.
The interest generated in the brand would have to be backed by good pre-sale services at the
outlet.

Brand and Retail Outlet Simultaneously
When consumers think of the brand and retail outlet together, it means that they have a certain
preference for the outlet and would like to check the evoked set of brands there. The marketer
would have to carry out primary research to find out specific markets where consumers have a
very positive relationship with retailers. This is important because of the influence of retailers
over the purchase behaviour of consumers in the Indian context.

It may also be worthwhile to check if the evoked brands are carried by the retailers who have a
positive relationship with the target segments. This is to ensure that the retailers who have a
favourable perception among the target segment carry the desired brands. Failing this, consumers
may turn to a different retailer, which would be to the disadvantage of a retailer who has
already won the confidence of consumers. Retail sales personnel also become important in this
situation. The prospective consumers are “carried over” to the purchase stage by the store
personnel and hence there should be incentive programmes for the store personnel.
If a company such as Samsung or Sony is dealing with a number of brands/sub-brands, it has to
ensure the availability of specific brands which may interest the consumers. If the retail outlet is
a large one dealing with a number of brands (like Vivek or Croma), a shop-in-shop arrangement
may be preferable. This model puts the brand in focus and reinforces the positive association a
consumer may have about it. A considerable amount of pre-sale service would have to back up
the shop-in-shop concept.

LOVELY PROFESSIONAL UNIVERSITY 135