Group A3 Source Rural and retail marketing

 Business reading report by A3

Group Name: the league of shadows

Tag Line: The most trusted name in news.

Tenure: 13/12 to 19/12                        Members: Rohit Biswas

                                                                                      Vivek Nair

                                                                                      Nikhil Narayanan

                                                                                      Pratik Jagtap

                                                                                      Ranjani R

                                                                                      Janhavi Patil      

                                                              Source: Retail Biz

Contents

Sr.No.	Name of the headline	Analysed By
1	Boom time for Indian Retail	Pratik Jagtap
2.	DLF Announces the launch of India’s largest shopping destination, DLF mall of India	Vivek Nair
3.	Light speed launches new 3.7 version platform for retailers.	Rohit Biswas
4.	The new reading for the new country: e-books	Rohit Biswas
5.	Domestic Players have led retail revolutions	Nikhil Narayanan
6.	Creating footfalls in multiplexes	Ranjani Raghuraman

 

1.     Boom time for Indian retail

2.     With the announcement of 51% FDI in multibrand retail Indian retail industry is abuzz with excitement

3.     Retail industry accounts for 14-15 % of Indian GDP,the sector is deemed to be one of the top five markets in the world.

4.     Central govt. decision will pave entry for big international retail players like Walmart, Tesco, IKEA & others

5.     More brands will lead to more product differentiation

6.     The retail industry will create more options for industry as well as consumers

SWOT Analysis of retail industry in India:

Strenghts 1)Vast potential for growth 2)New consumer class with high expectations & disposable incomes 3)Increase in urban population 4)Vast resources of trained personnel	Weakness 1)Lack of real estate space Bureaucratic hurdles Large percentage of unorganized players
Opportunities Rise in working  & middle class population Popularity of lifestyle & luxury products Dual income household Increase in spending power of youth	Threats High real estate  prices Dependence on monsoons Habitual shopping pattern involving neighbourhood retail shop

7.    
One of the major concern are the traditional supply chain may experience disruptions

8.     The foreign players may exploit the resources & the interests of small scale sector esp. small retail trades run by poor  farmers .

Indian retail sector holds a vast promise owing to its sheer size & preparedness. Given the right impetus & direction it can grow exponentially !!

2. DLF Announces the launch of India’s largest shopping destination, DLF mall of India

1.     The announcement doubles its retail portfolio as it adds over 1.8 million sq. ft. to the current 1.4 million sq.ft.

2.      The mall will have 14 anchors, 6 customised shopping levels with over 475 retail units ,7 DT star screen  and food courts with over 1,200 seats.

3.     Location :- Sector 18 in Noida

3. Light speed launches new 3.7 version platform for retailers.

1.     LightSpeed(Software firm) launches Web Store 2.5 (Apple based core platform)

2.     Features:-

a.     It offers a fast and intuitive way to create a user-friendly e-commerce platform.

b.     It offers Report Master. It is a reporting engine that allows retailer to access all the data in real time.

c.      It includes support from new ingenico payment terminals and the genius payment platform from Merchant warehouse.

4. The new reading for the new country: e-books

1.     E-books and e-magazines have been around for more than 10 years across the globe.

2.     There are more than 300 million (30 Crore) tablet devices and 600 million (60 Crore) smart phones globally.

3.     India may have around 3 million tablets.

4.     Magzter (global digital magazine store) is interested in the Indian Market.

5.     Business models:-

a.     Free to download

b.     Revenue sharing model with publishers and cutting edge technologies.

c.      Customers are billed on their iTunes account, their credit card or paypal account.

6.     The app runs on iOS(Apple),Android ,Windows(Microsoft etc.), Blacberry OS(RIM), Symbian (Nokia) and BADA(Samsung).

5. Domestic Players have led retail revolutions

·        Modern retail sales were growing at the rate 49% per year  both in urban and rural markets.

·        After introduction of FDI reforms in China now it is growing at 30-40% fastest in the world.

·        Agro food processing industry in Thailand has also seen rapid growth, along with good growth in exports through global networks.

·        Even Matahari, a home-grown retail giant in Indonesia is the largest retailer along with Suning&Dashang (Chinese) compared to Walmart in China.

·        This has resulted in enhanced flow of investments into rural infrastructure, new infrastructure, and better prices for farmers and in general modernising retail.

·        Ikea plans to invest $ 1.9 Billion and set up 25 stores. In India the retail sector is supposed to be worth $650 billion in 5 years’ time with organized sector quadrupling to $80 Billion.

6.    Creating footfalls in multiplexes

More than 1000 movies produced annually, with three billion tickets sold to cinema hungry audience in India.
Future of cinemas in India is bright, multiplexes account for 8% screens but also being in 60% of the revenue for this industry.

Strategy:

This industry faces a lot of challenges in bringing hypothetical loot falls and retaining consumer interest. Hence 4 ps of marketing are important.

Product

Nature of movie to be featured is the product 
Block buster attracts crowd, but the challenge is to get footfalls when movie isn't great.
Growing competition and uncertainty of the quality of movie forces Cineplex to implement strategies

Place

Even average movies are considered wholesome entertainment wen clubbed with outside food and shopping
These consumers create additional revenue
Involves thorough research and judicious selection of location.

Price

Can create footfalls even during lean periods.
Flexible process for morning and afternoon shows
Offering low prices on weekdays/ lean periods worlds well to Attract more crowd

Promotion

Customer loyalty retained by rewards system and schemes
Prepaid cards a way to gift among family And friends
Online promotion involves contest o on facebook and google+
Digitization helps, example hoppr, geographical check on based loyalty program 



Price

Can create footfalls even during lan periods