Five Ways to Maintain Market Share

Last Year’s 5 Things
  • Use Promotions as a loyalty driver
  • Push top and bottom line results with a multi-channel offering
  • Process – move from reactive to proactive
  • Collaboration – focus on a better, faster and cheaper value chain
  • Financing – when cash is king, get creative
2010’s 5 Things

  •  Transparency: Next generation BI, Supply Chain visibility, and Loss Prevention

  • Omni-Channel Enablement: supporting mobility, digital signage and anything that comes along

  • The Value Equation: Moving beyond price to value solutions

  • Efficiency: Doing more with less, “Green”

  • Flexibility: using inventory where it’s needed, meeting the customer where she is

  • The Totally Disrupted Movie Rental & Retail Business

    Once that tidal wave of initial demand had come and gone, what did you do with all of that overstock of previously viewed movie rentals? A title that needed 50 units per store may only need 3-5 when it moves off the racetrack and into the library. At first, Blockbuster marked them down as previously viewed, and sold a good chunk of them - until movie studios realized it was eating into their movie sales and mostly put a stop to it. Then Blockbuster had a huge return supply chain issue, trying to pull all these movies back out of the chain and satisfy studio requirements.

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    Redefining Reach: A New Lens for an Old Media Metric

    As more retailers embrace the concept of marketing at retail, an interesting phenomenon I’ve recently witnessed is that of old school media planners struggling to include the store as a media. Invariably, the one place they get truly hung up is defining “reach” within the store.

    Lets start with some media definitions. Wikipedia defines the word reach when associated with advertising as “a measure of the size of an audience”. GRP (short for Gross Rating Point) is how the industry measures reach by a specific media vehicle or schedule. And, the CPM is how they represent the cost to reach 1,000 people within that specific media vehicle.

    Would You Like Wi-Fi With That?

    Wi-Fi is a trendy offering customers are clamoring for, and it’s starting to appear at more c-store locations, including BP, Nice N Easy Grocery Shops and Rutter’s Farm Stores, especially as chains expand their foodservice programs and look for new ways to pull foot traffic into the store.

    Coffee shops, such as Starbucks have long attracted customers into their locations with help from free wireless Internet options. As QSRs follow suit, c-stores with competing foodservice offerings are starting to feel the heat.
    Beginning in mid-January, McDonald’s restaurants became one of the nation’s largest providers of free Wi-Fi Internet access as part of a new deal with AT&T. The QSR chain now provides free Internet access to 11,000 of the company’s 13,000 U.S. locations. AT&T charges $2.95 for two-hours of Internet access, but customers who already have a wireless plan through AT&T get free Wi-Fi access when they visit an AT&T hotspot, like McDonald’s.

    Read On

    Kmart's Coupon Mistake Becomes PR Blunder

    Mistakes happen. Everyone knows that. Usually the best approach is to admit the mistake was made, apologize and then move on to making amends and insuring it doesn't happen again.
    Last week, Kmart made a mistake. It sent out an email to customers offering them a link to a coupon worth $10 off any purchase of $20 or more. The coupon, posted on the Kmart website, was intended for shoppers in Baltimore, Chicago and New York. It did not, however, specify the geographical limitation and instead said it was valid at all locations.

    Mid-size retailers still feel the slowdown pinch

    Experts say one reason the mid-sizers are struggling today is that they were in too much of a hurry to catch up with the big boys. “They went into too many catchments too early. In the supermarkets business, you have to penetrate one market at a time and grow. Logistics and supply chain work when you are focussed,’’ says a former chief executive of a Mumbai-based retail chain.

    Starbucks Fans Can Become ‘Baristas’ on Foursquare

    Beginning Thursday, latte addicts who visit Starbucks outlets can get more than just a caffeine fix. They will also be rewarded on Foursquare with a barista badge.

    Location-based mobile services like Foursquare are at the cutting edge of a transformation in the way offline businesses and their customers interact, by breaking down the barriers between the physical and the virtual.

    Opening up India retail? Don't hold your breath

    The release of the Union budget on February 26 has left many India observers relieved by what Finance Minister Pranab Mukherjee didn't do: He avoided throwing the country's economic recovery off course. The widespread view is that he has handled two major issues -- the fiscal deficit and the withdrawal of stimulus support -- with aplomb.
    According to Chanda Kochhar, managing director and CEO of ICICI Bank, the budget for the next fiscal year, which begins on April 1, "presents a balanced approach to long-term economic planning and short-term considerations of sustaining ... the momentum in economic recovery." Meanwhile, Madhabi Puri Buch, managing director and CEO of ICICI Securities, says, "The budget reflects confidence and clarity." Pankaj Razdan, deputy chief executive (financial services) of the Aditya Birla Group, describes the budget as "prudent and progressive." And the weekly business magazineBusinessworld called the budget's "rollbacks, reductions and rationalization ... pragmatic and practical."

    Walmart, Target, Best Buy Named Most Valuable Brands

    Walmart topped the list of the most valuable retail brands in the U.S., followed by Target and Best Buy, per a new report issued by Interbrand today (Thursday).

    The report, compiled by Interbrand Design Forum—a division of the global brand consultancy, ranks retailers based on the value of their brands. The ranking is based on a number of factors: financial forecasting, the percentage of sales and profit that can directly be attributed to branding, and brand strength. These form a net present value, or the economic value of a brand.

    Franchise business set to grow 35% in next fiscal

    At a time when the retail industry in India has started looking up again, franchising business in the country is expected to grow by 35% in the next fiscal. In a recent report published by the Franchising World, the franchise industry in the country is growing at 35% while the retail industry in the country is growing at around 20% in terms of turnover.

    VSAT for retailers

    VSAT as a medium is best known for its excellent uptime and ease of deployment. A typical VSAT will give an uptime in excess of 99.5% and can be installed in less than an hour's time. Since all VSATs work through a central hub which is modular, and it can be virtually expanded, customers can increase their installations seamlessly and some customers have even gone up to 14,000 sites in a single CUG.
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    5 Lessons From Pandora’s Path To Profitability

    Sunday’s New York Times featured an in-depth article on the online radio station Pandora, showing how the company has managed to succeed since its inception, despite many challenges. Looking deeper into Pandora’s history and success offers some key insights and lessons into how a brand can succeed in winning customer loyalty and engagement profitably:
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    (Pics) GAP Upside Down Store

    “Shopping turned on its head” isn’t just a meaningless tag line for GAP. They literally mean it. To promote their new loyalty program, Sprize, the GAP in Vancouver, BC turned its entire store upside-down. All of the mannequins, displays and even the sign were flipped, as well as some cars and a hot dog stand outside of the store.


    Future Group follows Reliance on private brands

    Kishore Biyani's Future Group is getting its act together on supplying its private labels outside the group's 1,000-odd outlets, even as Mukesh Ambani's Reliance Retail has already marched ahead by starting to sell some of its private brands to kiranawalas (independent stores), reports Raghavendra Kamath from the Business Standard.

    Godrej Industries, Spencer’s to expand gourmet business - Corporate News -

    Even as general organized retailers try to consolidate or face closure under the impact of the economic downturn, at least two chains are looking to expand their gourmet retail businesses to new cities.

    Industry resurgence: The turnaround for Spencer’s Retail and Nature’s Basket comes in the midst of a bad year for organized retail. Harikrishna Katragadda / Mint
    Nature’s Basket Ltd, a division of Godrej Industries Ltd that currently has eight stores in Mumbai, has launched two gourmet retail stores in Delhi and plans to open another 15 stores in the next two years. The company will open more stores in Mumbai and Delhi and also expand its presence to Bangalore.

    Indian retailers are fast moving into the cash & carry business model

    Though it has been another disappointing budget for Indian retailers, they have not given up on their expansion plans.

    A striking number of Indian retail firms has recently started to realign their store formats to the 'cash & carry' model.

    Although in the early stages, the shift signals a changing trend in the organised retail space. The cash & carry model is a B2B ( business to business) mode.

    Future Group follows Reliance on private brands

    Kishore Biyani's Future Group is getting its act together on supplying its private labels outside the group's 1,000-odd outlets, even as Mukesh Ambani's Reliance Retail has already marched ahead by starting to sell some of its private brands to kiranawalas (independent stores), reports Raghavendra Kamath from the Business Standard.


    The 5 Most Innovative New Online Business Models in 2010

    As time goes on, one of the more interesting trends that continues to happen with surprising regularity is how frequently new business models and ways of doing business are emerging through social media and online tools. In many cases, these trends are helping to reinvent how businesses sell and consumers buy all kinds of products. For that reason alone, new sites are worth paying attention to no matter what industry your business happens to be in. The benefit of that for your small business is that watching these new models may also spark a new idea or method of selling that you can consider for your own business:
    More... Sharing What You're Buying is a social networking site that encourages people to see and discuss what their friends and others are buying on services such as iTunes, Netflix, eBay, Amazon, and more. They can even set it up to show purchases from credit cards. While some view this as yet another internet-intrusion on personal space, converts say they discover new products and deals while reaching friends.

    Woodland to launch kids' shoes, plans outlets of premium range

    Footwear and apparel firm Woodland is giving a big push to the kidswear segment. Besides, the firm which had last year ventured in the kidswear segment with its apparels range, is also set to open exclusive stores of its premium brand 'Woods' for adults in the next few months.

    Future Axiom in sale talks

    Kishore Biyani’s Future Group and its UAE-based partner Axiom Telecom are on the verge of selling their mobile handset retail jointventure Future Axiom to the Essar Group’s The MobileStore in exchange for a minority stake in the combined entity, persons close to the negotiations said.

    A deal, which will give the Essar group management and operational control of the combined entity, is expected to be finalised by the end of March. More details about the proposed transaction were not available.

    Biyani rejigs top deck at Future Group

    Kishore Biyani, the founder and promoter of the country’s largest retailer, Future Group, has realigned the roles of his top executives to sharpen the focus of his value retailing business, an internal communication within the group said.

    Most of the changes were in Future Value Retail, recently carved out as a separate company within the group, which now houses value formats Big Bazaar and Food Bazaar. The two formats contribute around 55 per cent of group revenues.

    Retailers, take back your shelves

    Over the past generation, stores lost their individuality, becoming homogenous and undifferentiated in their product assortment, price, and promotional offers. Virtually nothing was left to define one retailer from its competitor across the street; it was said that you could drop a customer into virtually any major supermarket and she wouldn’t be able to tell which one she was in. Even more telling was the fact that it probably wouldn’t matter to the shopper, because it all looked and felt the same.

    A major factor in this lack of personality came when stores began selling space for advertising. It didn’t take long before more than the products on the shelf looked identical; there were identical ads on the shelves, carts, floors—you name it—across competing stores nationally as major CPGs saw a more efficient method to advertise.
    Read On...

    Social Shopping Sites Attract Young Internet-Savvy Shoppers with Money

    "Social shopping sites combine the best of both internet and bricks-and-mortar shopping experiences. They offer the thirll of the hunt, the challenge of visiting time and again until the perfect item is found, and the satisfaction of landing a deal.Plus they are destinations of choice for the smart, savvy shopper.It is no wonder these sites are so popular among young affluents,' says Pam Danziger, president of Unity Marketing."
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    Brand Promise: Make Our Grandmothers Proud

    When we were having lunch at Kasa in the Castro in San Francisco last weekend, we noticed this notice about the motivations of the modern Indian restaurant. Set up by escapees of corporate life, one of Kiva’s objectives is:

    “We want to make Indian food that would make our grandmothers proud!”"

    See the pictures:

    Pantaloons to sell Crossroads?

    NDTV learnt from sources that Sobo Central, previously known as Crossroads, is being sold by Kishore Biyani's Pantaloon retail to Ajay Piramal of piramal healthcare for Rs 350 crore.
    More here

    Exclusivity is key for Minute Maid's new Nimbu Fresh

    Coca-Cola recently unveiled a new lemon variant of Minute Maid, the drink that was launched in a 'Pulpy orange' flavour in 2007. The Nimbu Fresh variant, whose tagline is 'Bilkul Ghar Jaisa' (just like home), was launched on February 19 but interestingly, the product was made available exclusively at the Future Group's Big Bazaar and Food Bazaar hypermarket chains.

    Birla Retail becomes realistic to turn profitable

    Aditya Birla Retail Ltd (ABRL), a unit of Aditya Birla Group, is scaling down its operations to attain profitability in all stores in the next three years, a top company executive said here today.

    The retailer is likely to miss its earlier revenue target of $4 billion (Rs 18,400 crore) by financial year 2014, as it closed down a number of unprofitable stores and did not open the number of stores planned, the executive added.
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    Do Shoppers Plan Their Impulse Buys?

    Well, maybe not exactly, but they do in many cases budget for them. At least, that’s what we’re told by a new research study that will be published in the Journal of Consumer Research this summer. An advance report on the study, "Planning to Make Unplanned Purchases? The Role of In-store Slack in Budget Deviation" says that most shoppers mentally set aside an amount for unplanned purchases when shopping, a practice they call ‘in-store slack’.

    D-Mart on expansion drive, looks to take leased premises route

    Supermarket chain D-Mart has chalked out aggressive expansion plans for the next two years at a time when many of its midsize rivals are going through a trough.

    The retailer has 29 stores in Maharashtra and Gujarat, and is likely to double that number in the next two years. “The plan is to close financial year 2010 with 35 stores, up from 29,” a D-Mart executive said.

    "100 pc cent FDI in food retail/cold chain to result in drop in food prices"

    Food prices are not fair. The prospects are dark. The Times of India recently revealed that wholesale food prices are way below the retail

    prices. This spells inefficiency in the logistics chain rather than lying on the part of retailers as had been reported in the newspaper . Under law, a vegetable seller is not under any obligation to sell at a maximum ceiling price. If he or she chooses not to pass on the price difference to the end customer and the customer gladly buys the products, then it is entirely the customer's fault.
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    Retailers scale up ops in metros

    Retailers are once again scaling up operations in the metros, buoyed by increasing consumer spending and low rentals that remain one-fourth lower than the peak levels of 2007.

    All the top retailers such as Future Group’s Pantaloon, Shopper’s Stop, Aditya Birla Group’s More Retail and Reliance Industries’ Reliance Retail are expanding their operations, according to real estate consultancy firm Knight Frank India.

    The Basics On China Retail -- Creating Your Own Customers Is The Key.

    As China moves from being the "factory to the world" to a growth engine for the world, the number of foreign businesses wanting to sell into and in China is rapidly increasing. Product companies are just as likely to ask me about selling their product in China as to ask how to make it there.

    The laws relating to China retail are not all that complicated in that the issues they entail are not that different from the issues faced by most foreign businesses in China: proper business registrations, proper contracts, and proper intellectual property protections. Retail businesses that want to abide by China's laws rarely get tripped up by those laws. Where retail businesses get tripped up in China is in the retail business itself, which is very different from that in the West.
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    Cellphone Applications Let Shoppers Point, Click and Buy

    Shoppers will soon be able to stand outside the designer Norma Kamali’s boutique in Manhattan, point a phone at merchandise in the window and buy it — even late at night when the store is closed. ScanLife technology allows customers to scan bar codes on merchandise.
    Ms. Kamali is at the forefront of a technological transformation coming to many of the nation’s retailers. They are determined to strengthen the link between their physical stores and the Web, and to use technology to make shopping easier for consumers and more lucrative for themselves.

    Is Dubai's retail glory fading?

    Shopping is the soul of Dubai, a place whose very name can be pronounced "Do-Buy"! Retail is a key driver of Dubai's economy. It is the major tourist attraction. Dubai lures visitors from Asia, Africa, Europe and the Middle East since it offers very enticing shopping experiences. The city offers scintillating malls, almost every brand in the world, shopping bargains, huge discounts.
    More here

    FieldFresh Foods to invest Rs 200 cr in India operations

    FieldFresh Foods, a joint venture between telecom-to-retail major Bharti Enterprises and the Del Monte Pacific arm, DMPL India, is looking to invest Rs 200 crore in setting up its first manufacturing plant in India as well as getting into backward integration.
    FieldFresh Foods to start work on processed foods plant
    Sanjay Nandrajog, CEO, Field Fresh Foods, said, “We are investing Rs 100 crore in setting up a manufacturing unit in Hosur in Tamil Nadu. We are also investing in increasing yield of fruits and vegetables in Ludhiana in Punjab and Maharashtra.”

    Dubai's Pure Gold to expand into India

    Dubai-based chain Pure Gold Jewellers plans to spend $200m plan to open 200 stores in the Indian market over the next five years, Firoz Merchant, the company's chairman and founder, told the National. The chain, which has 75 outlets in the GCC, will start by opening 25 stores in the sub-continent this year, he said. The company also plans to enter Saudi Arabia and Qatar, opening a total of 15 new Pure Gold outlets in the two countries, and will add four or five outlets to the 45 stores it has in the UAE.