The barriers that are not in place include the absence of economics of scale meaning even small local stores can be profitable. Many consumers are also price sensitive and the cost of switching is low. Because of the lack of some of the most important barriers, the threat of new entries is
• Kirana stores suffer the most from the problems like huge changes in prices and low margins and low skill level. • kirana stores provides credit facility to its customer on the other hand it is a weakest point also as sometimes it becomes very difficult to recover the credit. Credit in Super market is risk free as credit is given by Bank. • Supermarkets and malls are also associated with the activities of corporate social responsibility but on the other hand there a few shopkeepers who perform their social responsibility • It has been found a general behaviour in the consumers that they think the products purchased from kirana stores are not supposed to be original but they believe quality given in the malls. Margin utility of buying stuff from Super market is more compare to that of Kirana store if the prices are
CONSUMER ATTITUDE TOWARDS STORE BRANDS LITERATURE REVIEW SUMMARY Consumer attitude towards store brands is purely based on emotions. The relation between attitudes and purchase behaviour gets stronger as consumer gets more direct information about brand such as brand trials. The emotions can be described as: • Cognitive (Awareness) • Affective (Evaluation, Liking, Conviction) • Co native (Action, Trial or Purchase) The consumption of store brands is increasing in the global markets. In Europe it represents 12.4% of the total food shopping. Most consumers believe that store brands are reliable, trustworthy, different from the brands of the manufacturer and are great value for money.
Because it’s requires with huge capital of investments to be competitive and create a brand. The basic brands which have already mastered of retail trading in food stuff are Tesco, Econsave, Carrefour, and Giant Hypermarket. Thus, there are difficult for a new company of grocery retail market to enter except they can make something at extremely in low price and high quality to establish their market. This forces power is affected by the ability of people to enter your market. If the products that offered by a company are nearly identical and the economies of scale that can be easily achieved, it is easy for others competitors to enter the
Moreover, the retail business has been unable to apply the same tactics that are implemented in America. Wal-Mart is famous for the fact that it offers low-cost goods to customers who purchase the goods from the stores in bulk. However, the Chinese clientele understands the need to get value for their money thus requires more from Wal-Mart than simply low prices. Moreover, the China market is hostile to the western companies (Huang & Yu, 2015). Usually, the local businesses see the international industries as a threat, and this may pose a challenge even to the customers.
Village Melas were larger in size with a wide variety of goods sold from food, clothing, cosmetics and small consumer durables. With the emergence of the larger towns and cities, the neighborhood kirana stores, which cater to the convenience to the Indian consumers, became popular. To provide equal opportunities of employment and earning to the rural craftsmen, Khadi & Village industries commission set up a country wide chain of store india.In Big cities government encouraged setting up of super Bazaars and cooperative stores to make available all essential items at a
There is very important fact in the bazaar, that there are employed not only Georgian or Christian merchants, but there are Jewish, Muslim and Hindi merchants as well. Such a kind of cultural mix makes company welcome for many ethnicities groups, from the Caucasus region. The competitive advantage of Lilo Mall is very unique, clear and understandable. Its market segment is quite broad, which automatically means a large crowd of customers. The reason why its market segment is broad is that their competitive strategy is cost-oriented, which means that prices are very low compared to other retail outlets.
In addition to the diversity among individuals, the twenties also mark a tremendous diversity among marketers. Traditional retailers, from department stores to mom-n-pop stores, are still around. So are the mass merchandisers, the discount stores, and the off-price stores. But the twenties also has seen a tremendous shift from mass marketing to niche marketing to direct marketing, from show-rooms to custom catalogue, from selling through direct mail to selling through television shopping networks. Some marketers offer value pricing, which stresses high quality at the lowest possible price, while other marketers are concerned with relationship marketing, designed to develop a close affiliation with the consumer.
The power of an industry’s important buyer groups based upon conditions regarding its market situation and the relative importance of its buying from the industry as compared with its whole business. Customers have low bargaining power related to price when they shop at luxury stores and reluctant to seek for options, because of such a limited alternative. Poh Kong has gained intense pricing power. Its raising gross margins indicate that it passes on its greater input costs to its customers. Poh Kong customers may not get the exclusivity of the Poh Kong brand although they are free to shift to any other
Statement Mean &Std.Dev. Interpretation 1. Loyal to a particular store 3.97 & 1.502 Loyalty to one retail store for purchasing grocery and household items is low. 2. Regularly buying most of the grocery from one store and its private brand 4.39 & 1.539 Customers prefer to shop at more than one store for purchasing grocery and household items as most of them look for varieties and these are low involvement products.