Analysis Of Shopper Marketing Program

Published Date: 02 Nov 2017

Economies tend to follow a developmental progression that takes them from a heavy reliance on agriculture and mining, toward the development of industry and finally toward a more service based structure. In this context, the third sector has gained in importance and its role can be definitely being seen in the special interest the countries are developing it. As a major component of this process Organized Retailing is gaining momentum in India and is becoming the fast growing sector in Indian Economy. The Indian retail sector which was largely unorganized till the late 1980s has undergone an immense transformation in the post-liberalization era. India’s transition to an 8% growth path in recent years is very much an outcome of the emerging consumerism of one of the world’s youngest populations. The rise in the disposable income of the Indian consumer is driving the revolution of the Indian retail sector. Various factors like, availability of wide range of products, the increasing purchasing power of consumers, the changing demographics and an improvement in the quality of life of urban people, superior supply chain management and a world-class customer service are contributing to the tremendous growth of Indian retail sector. Modern retail has ensured that shopping has become an outing that is looked forward to and an experience that can be enjoyed by the shoppers. Modern retailers are giving serious attention in enhancing customer shopping experience to ensure that store environment, product assortment along with high service standards are dedicated to wonderful shopping experience. As shopping has virtually become a voyage of discovery. Every other day something new is offered - new products, new flavours, new deals and new promotions. The only thing the shoppers need to be proved is that they have earned the most value out of their money. And this is a phenomenon across the board. Retailers and manufacturers realize the store’s potential as a strong marketing medium, and are now targeting shoppers in an effort called shopper marketing. Shopper marketing encompasses an array of integrated marketing and merchandising activities that can influence Shopper behaviour in all three stages of the shopping cycle (planning, shopping and consuming) and at all steps along the path to purchase the product.

Earlier, the main components of Retail Marketing were product, price and location; later on the leisure, ambience and hygiene segment has risen in the eyes of the consumers. So, the development of retail is determined not only by selling product at high prices, but also by addressing the customers’ need (shopper insights) to spend the time, money and efforts in a wiser way. Hence Shopper Marketing is gaining momentum as it as an art as well as a science of capturing shopper’s mind, heart and Wallet!!!!

What is Shopper Marketing?

Shopper marketing has emerged in recent years as a breakthrough concept in the evolution of consumer communication, as product manufacturers and retailers alike have identified a growing need to influence the shopping experience. However, the rise of "shopper marketing" does not represent an industry revolution, but rather a natural progression dictated by seismic changes in consumer behaviour, mass communication, the retail landscape, and technological innovation. The term shopper marketing is based on the underlying assumption that the consumer and the shopper are the center of the universe. Kishor Biyani, CEO Future Group, puts it best "Some of the best advice I ever received has come from just watching customers and how they behave." [1] 

Definition of Shopper marketing on the Web:

Shopper marketing is "understanding how one's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders, defined as brands, consumers, retailers and shoppers." [2] 

Deloitte Consulting and GMA(Grocery Manufacturers Association) define Shopper Marketing as: "All marketing stimuli, developed based on a deep understanding of shopper behaviour, designed to build brand equity, engage the shopper (i.e., consumer in ‘shopping mode’), and lead him/her to make a purchase." [3] It further elaborates the term ‘Shopper Marketing Stimuli’ as – "Any marketing effort that builds brand equity and has the potential to engage or influence an individual to shop or make a purchase". Some examples of shopper marketing stimuli include: colour, material and packaging of the product, price discounts, coupons, visual merchandising, music, sampling, intelligent shopping carts, and digital signage etc.

Despite in-store marketing being an unparalleled opportunity to grab the nerves of the shoppers, consumer research has given little attention to studying Shopper Behaviour. Given the fact when planning or engaging in a purchase, a consumer-turned-shopper may have different needs and different behaviours. Moreover the consumer who uses the product may not be the one purchasing it. Some companies refer to this as the "chooser" (shopper) and the "user" (end consumer). Understanding this differentiation enables retailers and mall managers to build and implement more shoppercentric, effective atmospheric, merchandising, and service quality strategies to manage the in-store shopping experience. But consumer research has not sufficiently combed the activity to understand this perspective and its influence on the brand image of the store and the shoppers. It is argued that Shopper Marketing needs to be acknowledged as a multifaceted activity that may be performed in various ways and embody different shopper insights.

Apparently Shopper marketing encompasses an array of integrated marketing and merchandising activities that can influence consumer behaviour in all three stages of the shopper behaviour cycle (planning, shopping and consuming) and at all steps along the path to purchase. Here the researcher intends to focus on shopper marketing in Organized Retail stores, which is the most essential aspect of the today’s Indian Retail. This proposed study attempts to analyse shopper insights and the shopper merchandising, and shopper marketing strategies adapted by retailers through empirical investigation (multi-method study including in-depth interviews and a survey) in selective organized retail outlets. Along with this, the role of in-store promotions and retail selling strategies in driving store loyalty are planned to be explored in this research.

Overview of Indian Retail:

With market liberalisation, increasing consumerism and the entry of more foreign players, Indian markets are seeing revolutionary changes. Especially Indian organized retail has seen phenomenal growth in the last decade. The BMI India Retail Report for the third-quarter of 2010 released in May 2010 forecasts that the total retail sales will grow from US$ 353.0 billion in 2010 to US$ 543.2 billion by 2014 [4] . Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. The retail sector was estimated to grow at 13 per cent per annum from $322 billion in 2006-07 to $590 billion in 2011-12. [5] The Indian retail market is the fifth-largest retail destination globally. The sector has been growing at a compound annual growth rate (CAGR) of 28 per cent for the last five years and provides employment to 8 per cent of India‘s working population. [6] Moreover, for the fourth time in five years, India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm A T Kearney in its eighth annual Global Retail Development Index (GRDI) 2009 published in June 2009. [7] The GRDI is conducted annually to follow the attractiveness of top emerging markets for retail. The findings of the report furnished by the Indian Council for Research on International Economic Relations (ICRIER) 2008 states that, the real GDP is expected to grow at 8 to 10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs.90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. [8] 

Retailing in India can be classified under two broad headings: Organised and Unorganised. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, convenience stores, hand cart and pavement vendors, etc. [9] In 2007, the retail trade in India had a share of 8-10% in the GDP of the country. In 2009 it rose to 12%. It is also expected to reach to 22% by 2010. According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%,Organized Retail market is zooming ahead with an annual growth rate of 30%. [10] Currently, the size of Indian retail sector is US$ 328 billion with unorganised retail accounting for the lion’s share. Organised retailing contributes to roughly around 4% of the entire market. According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in India', organised retail market in India is expected to reach US$ 50 billion by 2011 [11] .The top ten cities account for 96% of total organised retail, of which the top six cater to 82% [12] .The ASSOCHAM (The Associated Chamber of Commerce and Industry of India)President stated that after 2011, the organized retail would grow by 15% as enough competition will have emerged by then and the Chamber expects that in most of 400 good towns in India, the number of hypermarkets would have risen to 475. [13] India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows between April 2000 and March 2010, in single-brand retail trading, stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion (DIPP). [14] 

In the recent past, the new consumer class has been added and there have been drastic changes on the way retailing has shifted gears, transiting from the traditional formats to the modern organised formats. The buzz today is malls, supermarkets and hypermarkets that are attracting modern day shoppers, The Indian retail sector, consisting of over 13 million outlets, is estimated to provide employment to over 18 million people, the largest employment after agriculture. Reports indicate that organised retail will grow at a significant CAGR (Compound Annual Growth Rate) of around 50% till 2011 mainly due to the investments of more than $30 billion budgeted by big and small players in the organised retail sector. [15] The World Trade Organization (WTO) and international agencies have been pushing the Indian government to allow FDI in the retail sector.

Various Research Agencies, government bodies have recognized and acknowledged the Indian Retail growth. The recent times have been especially exciting for the Indian retail sector. Sweeping changes have affected both the supply and the demand fronts of the market. Customer spending has been on the rise and brand consciousness has also increased substantially. Consumers have started demanding a better shopping experience as global media exposes them to different lifestyles. Consumer research shows that households in metropolitan cities are gravitating towards supermarkets and other modern retail channels. To tap increasing potential of the Indian consumers, a large number of corporates have entered the retail arena. These include large Indian business groups such as the Tatas, Reliance, Bharti and Birlas as well as MNC brands in apparel, footwear and durables. The entry into retailing by MNC brands has driven the growth of specialty chains and upgraded the standards of existing multi-brand outlets. The established players in the organised retail sector are: (i) Pantaloon Retail Ltd (Big Bazaar, Central Mall, Food Bazaar) (ii) K Raheja Group (Shoppers Stop, Mothercare, Crossword); (iii) Tata Trent Ltd.( Westside, Landmark, Star India Bazaar); (iv) RPG Enterprises (Spencers Supermarket/ Hypermarket); and Landmark Group(Lifestyle, Home Centre) [16] . The other recent entrants are Reliance, Bharti and Birlas who have rolled out large investment plans for this sector. Moreover, a popular medium of entry especially for foreign companies has been through franchising arrangements with local entities. Several global brands such as Marks and Spencer’s, Tommy Hilfiger and Nike have entered the market through this kind of arrangement. The players in India are operating as hypermarkets; supermarkets; discount stores; cash and carry; departmental stores and speciality retailing. The rising consumer trends in India coupled with the mall culture is fast engulfing the buyers in the tier III locations. These cities are slowly growing into large markets with a wide consumer base and high per capita incomes.

The changes in national social structure, like improvement of the national economy, consumerism, urbanization and profusion of brands have been the main casual factor for the development of modern Organized Retail formats in India. Gradual change in multiformat retailing scenario is noticeable with regular shops making way to high end market malls and stores in urban areas. Retailers are now offering an entire range of convenience products, which a typical household requires. These modern retail formats are enriching the total shopping experience by offering recreational facilities, store ambience, impressive displays and excellent visual merchandising along with standard services. Retailers have altered their growth strategies in the last few years to place a far greater emphasis on store sales and profitability, which demands a deeper understanding of store traffic and shopping behaviour of shoppers. Developing effective strategies for leveraging the potential of key shopper segments has become a business priority.

Literature Review:

There is a considerable body of extant literature focused on consumer behaviour and marketing. However, among this body of work, there are limited examples of research that incorporate the role of Shopper Marketing and shopping behaviour of shoppers in organized retail outlets. Most researchers acknowledge the importance shopper and their in-store shopping experience, a study by NCR Corporation says ‘today’s retailers need to match minds with today’s shoppers. Meeting the needs and desires of more knowledgeable and time-starved customers means converging all channels and touch points to deliver a consistent brand experience. Gaining the knowledge of shoppers’ wants, needs, desires and patterns will help retailers react and respond to the new pull environment of retail by having the ability to craft targeted promotions, employ suggested selling, uncover market basket affinities and discover upsell opportunities’ [17] Different researchers observed shopping as a way of life in contemporary consumer society. Jonatha Reynolds & Christine Cuthbertson observe that ‘customers want choice, value for money and a great service’ [18] . Rajagopal (2006) is of the opinion that the consumer behaviour during shopping is largely driven by the Recreational Infrastructure as a competitive strategy of retailers. [19] A team of Holly Bastow –Shoop, (North Dakota State University), Dale Zetocha (North Dakota State University), and Gregory Passewitz (The Ohio State University) (1991) worked on Visual Merchandising; suggest that, ‘A successful retailing business requires that a distinct and consistent image be created in the customer’s mind, which permeates all product and service offerings. Visual Merchandising can help create that positive customer image that leads to successful sale. It not only communicates the store image, but also reinforces the stores advertising efforts and encourages impulse buying by the customer’. [20] Significant research has been done on role of women and young consumers; Rajagopal(2006) is of the opinion that, ‘arousal among young consumers play a key role in buying decisions. One of the challenges for success in retailing is to enhance the in-store ambience to influence the young consumers for prolonged stay in the store for shopping and explore the zone of experience of new product. He further suggests that, an augmented and sustainable customer value builds loyalty towards the product and the brand. This needs careful attention and the application of managerial judgment and experience to generate consumer arousal and develop appropriate point of sales strategies for stimulating the buying decision. [21] Philip Kotler is of the opinion that retailers must invest in making retailing an experience rather than a chore. Brand experience counts for much more than brand image. By designing a distinctive brand experience, store owners encourage people to come back more often. [22] Rakhee Nagpal, Managing Director, DVS, finds changing consumer expectations as significant reason for brand switching by consumers. She states ‘The new consumer is a butterfly, less likely to remain loyal. They are changing their mind about brand choices very often, fluttering from one product to another, operating like "butterflies". Modern consumers are educated and experienced, and familiar with a growing choice of products and services. They take for granted the competitive trading environment that operates in most markets and expect high-quality service and value for money, as well as good marketing and information provision.’ She further classifies the Indian consumers according to the analytical partitioning of a product's target consumer group, either according to their socio-demo types or according to psychological typing. They are labelled as:

The pleasure seekers

The value seekers

The novelty seekers

The bargain hunters or whatever

Whichever label a customer falls under, he is likely to be more sophisticated and demanding. [23] Randy White,(2008) CEO of White Hutchinson Leisure & Learning Group acknowledges the importance of (FEC) Family Entertainment Centers at retail outlets, he states that, the motivation for visiting a mall or shopping center varies for different people and also is based upon the trip’s purpose. Sometimes ‘entertainment’ will increase the center’s appeal or be the motivating reason for the trip [24] . In his another article Randy White finds shopping centers as Family Entertainment Centers (FECs ), he further says ‘the expectations of today's families are rising, they want far more than just retail when they invest their out-of-home leisure time; they now want entertainment. The more educated consumers in our increasingly knowledge-based society want more than just mindless entertainment; they want to learn and be enriched by their leisure experiences. [25] If the retail is to succeed, the shopping center needs to have a significant amount of entertainment and restaurants. The customer and their lifestyles have changed, and with that, shopping centers are changing to continue to attract consumers. Malls and lifestyle centers now offer a fun and a social experience. To provide a meaningful shopping experience to their best customers, customer focused retailers offer products and services that align with customers’ expectations and shopping occasions. It has been observed in some studies that consumers who intend to do shopping in short notice, generally lean towards impulsive or compulsive buying behaviour driven by arousal effect in the retail stores. Gender, age, leaning towards unplanned purchases, and tendency to buy products not on shopping lists, serve to predict compulsive tendencies. However, retailers at times fail to recognize that what influences buyers’ satisfaction is not the same as what engenders store loyalty, and consequently do not effectively develop the retail ambience to stimulate buying decisions. Mariri Tendai and Chipunza Crispen observe in a study the in-store shopping environment as a very important determinant of impulsive buying. They say it is constituted by microvariables which are specific to particular shopping situations and confined to a specific geographic space. Factors such as in-store background music, store display, scent, in-store promotions as discounts and coupons lead to impulsive buying. [26] Don E. SCHULTZ and Martin P. BLOCK conducted a study on In-store promotions; they observe ‘consumer responses to in-store promotion appear to be the result of various combinations of four drivers namely: A. Media influence prior to the store visit B. Promotion activities external to and prior to the store visit. C. In-store promotional influences D. Word-of-mouth influence; these combinations are determined by the consumer, which really drive in-store promotional response. [27] Lauranne Buchanan; Carolyn J Simmons; Barbara A Bickart find the importance of product/ brand display in a store and its effects on brand equity, they say, ‘although brand managers make most of the strategic decisions that influence consumer impressions of the brand, they do not exercise complete control over the brand’s presentation to consumers. Retailers because they determine the context in which the brand is encountered have the potential to influence the overall effectiveness of the manufacturer’s strategy for developing and maintaining brand equity’. [28] Thus some collaborative studies on Shopper Marketing were conducted jointly by manufacturers and retailers to provide a mechanism for the development of effective retailer-manufacturer partnership that will drive mutually beneficial business results for both parties. The In-Store Marketing Institute and The Partnering Group created The Retail Commission (April2009) on Shopper Marketing to develop a framework of strategic, operational and organizational requirements that retailers will need to effectively integrate shopper marketing into existing business practices. The Commission devised the following definition of Shopper Marketing: ‘Shopper Marketing is the use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers, enhance the shopping experience, and improve business results and brand equity for retailers and manufacturers.’ [29] 

Though extensive research has been done on various aspects of consumer behaviour in shopping malls, but we see very little attention given to in-store shopper marketing plan which includes the marketing stimuli which is right at the point of purchase and has greater influence on buying decision of consumer. Too often the research conducted for various aspects are developed in silos and do not give holistic view of the shopper. But here the researcher would like to mention two important literatures in connection Shopper Marketing, First a Report ‘Shopper Marketing: Capturing a Shopper’s Mind, Heart and Wallet’ (2007) by Deloitte Consulting LLP and Manufacturers Association (GMA). This report elaborates the emergence of shopper marketing and its impact on consumer products manufacturers and retailers. It further discusses the leading practices employed by retailers and manufacturers suggest Go-to-market strategies for shopper marketing. The report defines Effective Shopper Marketing as "All marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper (i.e., consumer in ‘shopping mode’), and lead him/her to make a purchase". It further explains the term Shopper Marketing Stimuli as –any marketing effort that builds brand equity and has the potential to engage or influence an individual to shop or make a purchase. (For eg. colour, material and packaging of the product, price discounts and coupons, visual merchandising and sampling etc.) The term Shopping Mode is elaborated as – a person is in shopping mode when he/she is contemplating buying a product or service whether the person is in-store or outside the store (on internet, phone). [30] 

Win Weber Chairman and CEO of Winston Weber& Associates, Inc. (WWA) emphasizes Shopper insights, as a valuable asset in business planning. He defines shopper insights as ‘any insights necessary to understand the shopping experience including shopper need states, shopping occasions, shopper behaviour in-store, drivers behind the purchase decision at the shelf and reaction patterns to particular in-store stimuli’. In practical terms, shopper insights are knowledge that feeds three activation points. These activation points are shopper merchandising, shopper marketing and consumer marketing. Each of these activation points plays an important role in the total marketing mix. Win Weber’s definition of Shopper Marketing aligns closely with the Deloitte/GMA study definition, with two exceptions. First, while the Deloitte/GMA study says shopper marketing is the employment of all marketing stimuli, he argues that "all" is an overstatement, especially when we consider that shopper marketing is only one of three activation points- Shopper Merchandising, Shopper Marketing and Consumer Marketing. Second, the Deloitte/GMA study says "designed to build brand equity" which is being interpreted by many as meaning the manufacturer’s brand equity alone. He suggests that saying "designed to build manufacturer and/or retailer brand equity" would add clarity and a more balanced perspective. And, talking about a balanced perspective, this is not only about manufacturers and retailers working together to create a more engaging shopping experience. In a few instances a retailer may want to "go it" alone. [31] Win Weber’s opinion focus on Shopper Insights, on the other hand Deloitte Group’s report provides a guideline to build shopper marketing plan as it emphasizes on the Marketing stimuli and its impact on shopper behaviour and purchase decisions.

Here the researcher intends to develop a framework of strategic, operational and organizational requirements that organised retailers will need to effectively integrate shopper marketing into existing business practices. As Shopper marketing encompasses an array of integrated marketing and merchandising activities that can influence behaviour in all three stages of the shopper behaviour cycle (planning, shopping and consuming) and at all steps along the path to purchase. It is of immense importance to understand the shopper’s path to purchase; this would give significant idea about the points of maximum marketing impact along the path. This research is planned to analyze the cognitive attributes of the shoppers who vary in their level of involvement and interest/ intensity of shopping. The personality traits of shoppers affecting the preferences for shopping malls in reference to ambience, store assortment, convenience, and economic advantage and leisure facilities are also planned to be investigated in the study. Consumers' tendency to make unplanned purchases (buy products not on shopping lists) is intended to be explored. This proposed research would give a 360 degree view of the shopper in organised retail stores and this would help to researchers and retailers to conduct coordinated efforts of shared information and strategic insights.

Research Purpose:

Growing expansion of organized retail market leading to success of a business depends solely on consumers’ urge that there is a need to study their buying behaviour. But the existing literature briefs a little about the buying behaviour functions in the Indian Retail Market. As Shopping malls are called gigantic concrete amusement parks for the middle class in metros, the estimate goes there are about 40000 and 85000 footfalls on an average in the malls like INORBIT, in Mumbai and FORUM in Bangalore respectively. (Dr.S.C. Panandikar & Prof.Rajiv Gupte-2007) [32] Shopping behaviour is rapidly changing with the advent of such outlets. There is fierce competition and retailers are fighting over each other to welcome the 'new age' shopper. Shopping has virtually become a voyage of discovery. Every other day something new is offered -new products, new flavours, new deals and new promotions. The only thing the shoppers need to be proved that they have earned the most value out of their money. And this is a phenomenon across the board - regardless of income levels. For shoppers, convenience is no longer enough, quality is taken for granted and variety is matter-of-fact. Modern Retail Shoppers like to browse around and add unplanned items to their shopping basket. These new age shoppers have more disposable income in their hands, easy availability of credit at low interest rates and high rate of media penetration keeping them informed of the international brands and quality products. Thus it has become essential for today’s retailers to respond by providing a multichannel shopping experience for their customers. Now it is an era of Converged Retailing. Retailers must now be more attuned than ever before to each customer, better understanding who they are and how they shop, and tailoring the shopping experience accordingly. Keeping these facets of retail in view this proposed research attempts to identify the factors of the consumers’ buyer behaviour (shopper insights) that is influenced by the strategic retail marketing inputs. The marketing industry’s understanding of these "consumers" is changing in kind, through the gradual realization that their needs and motivations often change dramatically when they turn into "shoppers." A study by KRAFT [33] shows that nearly 70% of the purchase decisions are made in stores; and 68 percent of in-store purchases are impulse, hence in-store-medium of marketing is unparalleled opportunity to increase the retail sales; marketers have a tremendous opportunity to reach consumers, build brand equity and stimulate consumption through effective shopper marketing.The objective of this research is to provide a richer and deeper understanding of the shopper insights, shopper's experience in the marketplace, their perceptions, behaviour, and responses towards retailing strategies.

Brand marketers have only been targeting consumers outside of the store, leading them to the store but leaving them at the front door. They have been neglecting an important moment in the consumer’s decision making process, ‘the point of purchase’ in order to execute holistic 360-degree marketing, marketers can no longer overlook the store or the consumer-turned-shopper. Along with the store, the consumer as a "shopper" has been an evolving concept. ‘A shopper is someone who is actually engaged in the action of shopping, whether by looking through your catalogue, browsing your website, or roaming the aisles of your brick-and-mortar store’. Ideally, the right messaging helps convert shoppers into (repeat) customers. [34] Marketers, who traditionally focus on consumers, are realizing the opportunity to address consumer needs in-store, in other words, "shopper" needs. When planning or engaging in a purchase, a consumer-turned-shopper may have different needs and different behaviours. Along with the store, the consumer as a "shopper" has been an evolving concept. Marketers, who traditionally focus on consumers, are realizing the opportunity to address consumer needs in-store, in other words, "shopper" needs. When planning or engaging in a purchase, a consumer-turned-shopper may have different needs and different behaviours. Shoppers today do what they have always done—look at the items for sale, pick them up, and briefly inspect them and thus go through the path to purchase. Today, with the emergence of several shopping malls, supermarkets and hypermarkets, there is an immense competition for retaining customers. A differentiated shopping experience is an important step in this direction. Visual merchandising and store layouts are key functions of Shopper Marketing plan that need serious attention in enhancing customer shopping experience. Merchandising is much more than simply the arrangement of products on the shelf; it is also about understanding the way customers shop.

Shopper marketing enables retailers to turn shoppers into advocates, customers who will recommend and promote the retailer to others, spend more of their wallet and remain loyal over time with the retailer. This new perspective will require retailers to build shopper insights into their core business decisions such as merchandising, marketing, customer service, new product development, and store and channel operations to significantly change the day-today operations of the business.

Review of Key Conceptual Elements: It would be of immense importance to have a brief overview and basic understanding of various key elements which will be helpful in developing our research objectives:

Types of Organized Retail Formats: The Retail Industry in India has shown an upward trend in different formats of retailing. The retailers are venturing into a number of formats as Indian retail transits through the experimental phase. Since most of the formats are new to the consumers, retailers will have to choose models that are customised to Indian taste and habits.

Hypermarkets: Huge stores offer everything from foods to dry grocery to hardware to electronics. Pantaloon’s Big Bazaar, Spencer’s hypermarket and Trent’s Star India fit this category.

Supermarkets: self-service stores focussed on regular groceries, household goods and personal care products, located in residential areas. For e.g. FoodWorld

Departmental stores: like the name reveals this format carries various departments such as Apparel, furniture, jewellery etc, but is much smaller than a hypermarket in terms of space. For e.g. Shoppers Stop, Lifestyle

Convenience stores: small stores located at convenient locations in crowded neighbourhoods. Like ‘More’, in Pune or ‘24/7’ in Delhi.

Exclusive outlet: stocking a single brand and could be either company owned or franchised. For e.g. Raymonds, LG

Discounters: aimed at bargain buyers

Various new retails formats and combinations are expected to continually emerge to allow key players to operate in multiformats to utilize their brand value across different segments and profiles of customers.

The Dynamic customer: customers are displaying a range of behaviours from demanding shopping to impulsive purchases:Indian customer behaviour is gradually changing in response to the changing social structure. The increasing number of nuclear families, double income house holds, influence of children, specially the young working population is driving the changes in consumption habits & spending patterns. This should bode well for the growth of modern retail formats in India.

The other important factors in the Indian landscape are, increasing per capita income (according to NCAER [35] forecasts, the number of "rich" households is expected to nearly double from 57million in 2002 to 107million in 2010), improving literacy rates, increasing proportion of young population joining workforce (it is estimated that nearly 80% of the Indian population is below the age of 45 yrs). A large young working population with a median age of 24.66 years forms the focal point of the Indian economy [36] . As the young wage earning population tends to spend more on entertainment and leisure, with fun-filed shopping experience is a major attraction. Besides this consumers’ different attributes are reflected in their attitude, perception and behaviour. Some consumers are impulsive trialists, or compulsive shoppers (browsers/ spenders), some consumers display their demanding, aspiration nature in their behaviours. It is imperative that retailers begin to dissect and understand each segment of consumers in the market. In addition, knowledge of demographic profiles can lead to a better understanding of consumer preferences for various retail formats. Here the researcher intends to explore narrower slices within the existing segments to get differential edge. The following perspectives of consumer behaviour are significant with this perspective:

A paradigm shift in consumer behaviour: Shopping for Necessities to shopping for Pleasure: Till recently, Indian consumers have been shopping whenever there was a genuine need to buy something. But nowadays the number of consumers, who go on shopping as a leisure time activity or as a feel-good factor, has increased enormously. Indians have started replacing their personal wardrobes of clothing and accessories much more frequently than they did earlier. The shopping behaviour, buying patterns of Indian consumers have displayed a wide range of changes to enlist a few:

-Change in consumer lifestyle, from traditional look to modern outlook

-Itemized purchase to bulk purchase (specially purchasing everything under one roof)

-Fresh food to preserved food

-Utility based products to lifestyle products

-Conservative spending to liberal spending – better employment opportunities and higher per capita income have shifted the attitude of consumers from conservative spending to liberal spending

-Increased buying during holidays and festive seasons

-Demographics reinvented – earning youngsters spend more on entertainment and leisure

-Increased service orientation, quality and convenience

-Availability of wide range of product category

Shopping has become an experience not a chore: Shopping, like many other activities has evolved over the course of time. Shopping is no longer restricted to the acquisition of goods but is an experience in itself. However due to increase in strip malls & department stores and the marketing plans that are geared towards families & specially women; shopping took on a more leisure based purpose. Shopping is said to be a transforming experience, a method of becoming a newer, perhaps even slightly better person. Shopper Behaviour in malls is described as a willingness or desire to stay, explore, work or affiliate. As modern retail has ensured shopping has become an experience that can be enjoyed and its voyage of discovery.

Leisure Shopping Behaviour: Leisure or free time is a period of time spent out of work or essential domestic activity. It is also the period of recreational and discretionary time. Michael Guiry, SUNY New Paltz, Richard J. Lutz proposed definition of Recreational Shopping (Leisure Shopping) as, "Recreational shopping is shopping activity that is characterized by the shopper experiencing gratification from the shopping process per se, either in conjunction with or independent of the acquisition of goods and services". [37] To many, shopping is considered a recreational and diversional activity in which one visits a variety of stores in search of a suitable product to purchase. "Window shopping" is an activity that shoppers engage in by browsing shops with no intent to purchase, possibly just to pass the time between other activities, or to plan a later purchase.

Buying Decision making process: The retail self-service stores which largely operate in chain are based on the rationale of Touch, feel and pick which provide consumers a wide range of options to make buying decisions. The in-stores promotions and do it yourself (DIY) opportunities constitute the major motivation for the buyers and also support their decision making process. Shoppers buy the product based on touch and trial, close to 90% of new products fail mainly because people don't try them. 23% of Asian-American shoppers tore open packages to check the product. [38] Hence DIY opportunities make considerable impact on buying decision making process.

Impulsive Buying Behaviour: It has been observed in some studies that consumers who intend to do shopping in short notice, generally lean towards impulsive or compulsive buying behavior. The buying patterns have displayed a remarkable transformation. It is observed that nearly 70% of the buying decisions are made in the stores [39] . Earlier shopping was more or less a planned Affair but market revolution has created a new category of buyers who are ready to spend an inevitable amount on spontaneous buys, giving way to a new segment- the ‘Impulse shoppers’. The visual merchandising strategies, efficient sales personnel, the in-store sampling and promotions with discount offers induce customers to make unplanned/ impulse purchases. Impulse buys account for about one-third of all sales in a typical department store. But in the cosmetics department, those spontaneous purchases can mushroom to up to two-thirds of sales because promoters are constantly stopping customers, convincing them the product attributes.

Post purchase behaviour: Consumer satisfaction/dissatisfaction is determined by the overall feelings or attitude a person has about a product after it has been purchased. It is influenced by the perception of quality, price, follow up etc. Satisfaction or dissatisfaction with the product will influence a consumer’s subsequent behaviour. If the customer is satisfied, he or she will exhibit a higher probability of purchasing the product again. Retailers should try to use consumer post purchase behaviour as a way of assessing their performance as perceived by their consumers and should use this opportunity to delight them by showing their commitment to consumer service. Retailers have identified consumer retention as a major concern, as research has shown that even satisfied consumers can’t be termed as loyalists and often switch to competing brands to get a better deal.

Retailing strategies adopted by organized retailers: The organised retail have revolutionised the concept of retailing and they pose a serious competition to their conventional counterparts in terms of service, ambience, price, access to the brands etc. Furthermore the organised retail outlets especially shopping malls malls are creating a niche in the minds of customers through a perception of innovation, style and status. A shopper Marketing plan acts as a blueprint that will standardize the processes necessary for efficient and effective retail strategies. The retailers use various marketing stimuli i.e. any marketing effort that builds brand equity and has the potential to engage or influence an individual to shop or make a purchase. Some examples of shopper marketing stimuli include:

Visual Merchandising and window display: Visual Merchandising enriches the overall in-store experience, it include various tools for eg. signages serve as guides, colours, scent, music and props displayed create an overall ambience. ‘Visual Merchandising is everything the customer sees, both exterior and interior that creates a positive image of a business and results in attention, interest, desire and action on the part of the customer’. [40] Pooja D Kunwar finds Visual Merchandising as Silent Salesperson [41] , Visual Merchandising is a significant influencer of the retail experience and shopper’s decision making process. It provides competitive advantage and helps in building the overall image of the store.

In-store promotions and sampling: Sales Promotions in shopper marketing include a variety of marketing tools where a sale is sought to be induced by offering some kind of incentives, such as a price discount, a discount coupon, free gift, free sampling etc. R.Harish and K.Suchitra are of the opinion that Sales promotion campaigns are aimed at making psychological and emotional impact on target consumers. The main aim is to encourage purchase, increase the quantity of purchase and/or the purchase frequency. [42] A study conducted by Instore Marketing Institute observes in-store sampling indeed, drive sales on the day of the sampling event. Moreover in-store sampling can drive trial and sampling has a well-established track record for boosting sales of new product launches. [43] 

Customer Loyalty programs: Stores use loyalty programs to reward loyal users and encourage them to visit the store often and buy more by offering wide range product categories under one roof. Here sales promotions also help to reward loyal customers. Moreover an integrated information system of loyalty program proves to be guideline to understand shopper behaviour and devise customer retention strategies.

Customer service: The recognition and identification of shopper segments and providing them quality services delivers a value-added offer and experience that truly distinguishes the brand and retailer in the minds of shoppers. Customer service quality is perceived as a tool to increase value for the consumer; as a means of positioning in a competitive environment to ensure consumer satisfaction, retention and patronage. [44] 

Consumers’ desire for convenience and one-stop shopping has led to the use of scrambled merchandising strategies but there is an increasing importance of planned, centrally managed and enclosed shopping centers and application of more shopper-centric retailing strategies. This purpose can be attained with effective Shopper Marketing Plan.

The Study Design:

This research study is descriptive cum diagnostic in nature.

Framework of Hypothesis:

Retailing firms attract consumers through in-store marketing activities, the Do It Yourself simulations act as stimulus to consumers who intend to elicit a positive response. Mridula Mishra (2007) [45] is of the opinion that shopping in Indian organized retail has increased because consumers feel that the visit to the outlet is important, to chose from the variety of wares displayed. Besides this the consumers enjoy shopping at organized retail outlets as they provide huge variety, friendly store layouts, offer self-service, pleasant ambience, and store services like baggage, promotions etc. The consumers feel that the market is exposed to new brands every other day and a visit gives them an option to choose. The impact of in-store ambience can be measured in reference to degree of stimulation and pleasure gained by consumers. Interactive tools on product learning provided in the retail stores significantly affect the level of arousal and pleasure which contribute towards experience, and thereby influence the buying behaviour. Moreover impulsive purchase is higher due to organized display of related products or items with promotional incentives for the consumer. The retail sales performance and the customer value approach are conceptually and methodically analogous. The customer's perception of the value received in a transaction is satisfaction, and it helps in making re-patronage decisions. Many retailers develop innovative approaches to prospect new customers for new products by strengthening customer relationship and value management strategies.

Hence it is important to remember that a key aspect of shopper marketing is the creation of programs that will differentiate a retailer from the competition and the retailer should focus on shopper-centric strategies. This transforms the visit from pure shopping to an entertainment experience and results in extended stay, increased spending per visit and more frequent visits [46] .

In the light of review of key conceptual elements and literature review, following hypothesises are formulated and would be tested with adequate evidence:

Hypothesis 1: Effective In-Store shopper marketing plan and Shopper- centric Retailing Strategies build brand and store loyalty.

Hypothesis 2: The impact of in-store ambience and visual merchandising stimulate impulse buying and enhance shopping experience.

Hypothesis 3: Innovative in-store sales promotion and sampling techniques increase the new product trials and the sales.

Hypothesis 4: Influence of the store ambience and recreational facilities leads to higher store loyalty of customers.

Hypothesis 5: There is a positive correlationship between in-store services provided and the customer satisfaction.

After having understood the key conceptual elements in retailing and Shopper Marketing the following objectives are developed to carry forward the research:

Research Objectives:

To ascertain the significance of In-store Shopper Marketing Plan and shopper-centric strategies in organized retailing.

To carry out segmentation of shoppers based on suitable parameters

To analyse the Shopper Behaviour cycle and the path to purchase.

To analyse the marketing, merchandising and operational tactics applied by retailers for increasing sales and building brand and store loyalty.

To investigate the relationship between in-store marketing stimuli and impulsive buying behaviour of shoppers.

To investigate the role of Sales Personnel and the shoppers’ perception of service standards.

To identify any major difficulties or frustrations encountered by the shoppers.

To develop a framework of strategic, operational and organizational requirements that retailers will need to effectively integrate shopper marketing into existing business practices.

Research Methodology

Research Area:

Mumbai and Pune are very vibrant cities where most of the residents of different cultures are educated, affluent and knowledgeable. They have multiple sources of income and have multiple modes of financial transactions. Along with this the key players in retail market have established multiformat retail stores in these two cities for e.g. Pantaloon Retail (Central, Big Bazaar), K Raheja Group ( Inorbit Mall, Shoppers Stop) and so on. Hence the researcher plans to conduct research in these two cities to get the better representation of Indian consumers and retailers.

Sampling Plan:

To study the Shopper Marketing Plan and its significance in Organised retailing; the researcher plans to conduct the research in shopping Malls as it would give a complete 360degree view of shoppers in organised retail outlets. The researcher plans to conduct research in 2 shopping malls of Pune city and 1 from Mumbai and 1 shopping mall from Navi Mumbai.

-Sample frame:

Retail outlets would be chosen, from Mumbai and Pune area; moreover the retailer samples would be drawn from the shopping malls (hypermarkets). Whereas the customer sample to be designed in this particular case would be drawn out of infinite population. The population would be shoppers/ visitors to selected retail outlets.

-Sampling method:

Here the researcher feels the stratified random sampling method would be appropriate to collect the data as it would give better representation of shopper different segments.

-Sample size:

Sample size to taken for the survey and investigation of retail outlet visitors would be calculated by a formula of proportion of the footfalls of the outlets.

Data collection:

-Primary Data collection:

In order to identify Shopper insights and investigate the path to purchase in organized retail formats, the data is planned to be collected on different variables arising during course of the study related towards influencing the customer values. These variables would include various perspectives of In-store Shopper behaviour and the Retailing Strategies applied in positioning and attaining high brand value and improving the store profitability and value.

It is planned to collect primary data with muti method consumer research.

Survey of shoppers visiting selected outlets to be conducted with a structured questionnaire. A pilot testing of questionnaire is planned to be conducted in the selected two cities.

Interviews of shoppers

Observation method to support the surveys.

Here the researcher proposes to collect the primary data during peak leisure time (holidays) or festive occasions for e.g. Diwali/ Christmas/ valentine day etc. to better understand the shopper behaviour and retailing tactics.

-Secondary data collection:

Secondary data would be collected through review of books on retailing and promotional tools, articles in newspapers, magazines. And previous studies done by researchers / agencies would be explored with the use of library search, and internet search to have in-depth knowledge of Shopper Marketing phenomenon.

The relationships among pertinent shopping and marketing stimuli would be examined through the survey data, and secondary data with the help of statistical tools of data analysis and interpretations. This would help to build a framework for defining the Shopper Marketing Plan and its significance in organized retail.

With this planned research the findings of the study would provide strong evidence on the variables covered in this investigation. This would provide strategic insights to retailers/ mall managers on different issues to develop more shopper-centric retail strategies.

Limitations of the study:

Functional limitation: The researcher feels that due to time and cost constraints it is not feasible to conduct the research in all the organized retail outlets located in the city. Only four shopping malls within the competitive structure are chosen due to time and accessibility constraints

Geographical limitation: this research is proposed to be conducted in Pune and Mumbai cities only.

Sampling and non-sampling errors might occur during the course of the study

Inherent response errors such as subjective bias, relative measurement of variables might occur.

The research would be conducted on in-store shopper behaviour and strategic marketing stimuli irrespective of the product categories.

In the shadow of these limitations, the research would be established within the ambit of the chosen area of the study and the materials obtained from the source.

Significance of the study:

We find that in most of the organised retail outlets the shopper insights and shopper marketing competencies have not been adequately translated down to their field sales and category management organizations. Transformation to a shopper insights capability is seriously lacking. There is a lack of understanding as to the potential value shopper insights and shopper marketing investment may mean to the store. This proposed research would bridge the gap and may propose some guidelines to develop a knowledge base of shopper insights and shopper-centric strategies.

Survey data planned to be collected which would examine the relationships among a number of shopping related variables, like experiential marketplace activities, leisure-based dimensions of shopping, impulsive buying, and frequency of visits, response to promotional schemes (including other relevant variables which might arise during the course of the study). Then, depth interviews ard other data collection methods which would be used to flesh out the lived experience of shopper marketing, yielding a rich theoretical framework for understanding this imperative phenomenon. Today, more and more shopping centers, malls and retailers are finding that to stay competitive and attract shoppers in the increasingly competitive retail environment and experiential economy, they must offer unique visual merchandising, innovative promotional schemes and create unique experiences in their retail mix and facilities.

Here the researcher is of the opinion that, this extensive research of instore shopper marketing would develop a strong theoretical base and this would provide strong evidence on the variables covered in this investigation. Most major retailers can add up shopper insights functions and upgrade their marketing capabilities to support shopper insights and shopper marketing initiatives.