Shopping for VALUE

Retailing is the next big thing to happen in India. While foreign players like Walmart and Auchan are planning strategies to win a big consumer chunk, domestic players like Reliance have also played their part in attracting consumers. The consumers are more informed about the products available in the market. They just do not buy products but also add value to their shopping experience. With easy reach to multiple channels offering the same brands at cheaper prices, consumers have taken wise decisions on their purchases. While shopping, the consumers look for the one who offer value the most. Even if the consumers have everything filled inside their bags, still they prefer to go for something if they find discounts. Sometimes, window-shopping turns out to be an expensive shopping. This “cherry-picking” behavior is becoming increasingly prevalent, with a growing number of sales coming from promotional items. What should be the strategy to retain your loyal and attract the new customers? Just offering a low price or discount does not guarantee the retention of loyal customers. The retailers need to plan a price strategy for the products to attract customers. To improve their price image among shoppers, most value retailers follow a five-pronged pricing strategy:
·Offer attractive prices on image-enhancing brands and items
·Create opening price points in each category, sometimes through private-label brands
·Appeal to shoppers’ “treasure hunting” mindset by establishing a highly visible discount price on a unique or limited item
·Offer large sizes and value packs
·Communicate an everyday low price to establish price credibility

Apart from price, which adds value to the shopping experience, there are factors like location, ambience and service. The thing, which matters, is the communication that exists between the retailers and consumers. They should clearly make their consumer understand of their moves. To win consumers, certain things needs to be taken care of:

1.A complete observation on the products, which sells the most.
2.The kind of products, which sells, small or large. For example, a customer goes for a big shampoo bottle or a sachet.
3.Where to place the products. May be perfumes and accessories at the entrance can attract customers to enter the shop.
4.How to make the customers buy even if they come for window-shopping.

Source: AT Kearney