India welcomes Shelf Placements

"Traditionally, “eye-level shelving” is best, followed by “waist-level” , “knew-level” and ankle-level” . It is near impossible to locate all the items at eye-level and store experience have proved that consumer responses to shelf locations depend upon such other factors as the product package size, whether or not its being advertised, its need for visibility and intended market segment. " Brand Equity, Economic Times



My favorite aspect of retail is shelf placement. I am stuck with awe each time I visit a new mall, retail store, or even a pop and mom store in the vicinity. Planogram, as it is technically called, is the visual representation of how the brands would like their placements to be stacked inside a retail store. Category managment is also another name given to the science of shelfing the products.

I am glad it is now taking a serious shape in Indian Retail. However, Will shelf placement actually matter to a price-sensitive consumer? Is there a science really behind shelf placements in countries like India, where retail is primarily unorganised?

My views:

Shelf placements will not matter to the consumer unless the buy is a high-involvment product. For a customer to be engaged in the buying-decision, stores will have to ensure that they either make the products high-involvement one or place candies and nutrition bars next to the POS to gain through impulse buing. Sphere: Related Content

Indian market

Was watching BBC's India Business Report, and just came to know that by size, India is as big as America and EU.

Unbelievable... Sphere: Related Content

Milk in a garment MBO

I came across a consumer who drives all the way to a multi brand outlet (MBO) Brand Factory outlet located in the outskirts of Bangalore to buy Slim Milk.

What makes the consumer go to a garment MBO to buy milk? It is the variety that the store has to offer to the consumer. Having enough time on hands, the consumer can visit a MBO and ensure that all the needs are satisfied. Ever wondered why a shopping mall has a photo studio? Why does a pharmacy store sell coffee and tea sachets? Why does a retail store has a floor dedicated as a food court?

A consumer wants to spend time in the retail outlet. Going through 120 brands in a single MBO takes a lot of time, and the number of footfalls in the store determine the sale in the outlet. The more the footfalls, the more is the possiblility of a sale. Window shoppers constitute most of the sale in a retail outlet. You walk into a retail outlet and it is upto the retailer to ensure that the consumers are induced to buy a product. No matter how small the purchase is, the consumer is bound to revisit the store if the experience is worth it. Revisits mean more footfalls, often with different people, which means a possibility of more footfalls in the future.

Retail is a single word for visits, experience, moments of truth, and word-of-mouth. The better it is, the more the business. Retail has come a long way in India. However, Indian retail has a long way to cover. IBM with Bharati Retail (a joint venture of Wal-Mart and Bharati retail)has signed up a contract for technology and services and solutions.

Organised retail in India is catching up fast. MBOs and EBOs (Exclusive Brand Outlets) may be a different take for retailers. We still have a long way to catch up with mom-and-pop stores in the grocery category. Sphere: Related Content

Retail school for mom and pop stores

Confederation of All India Traders decided to set up retail schools to educate the mom and pop stores to help them graduate to the modern format of retail. It has been quite some time that modern retail has entered India and is doing pretty well. With many players foraying into retail, it is now a competitive world. With the gadgets, planograms, and consumer research, the players in the retail world are doing everything to win consumers over their competitors.


It's a nice move by CAIT. My question is will the 'kirana' storewalas be willing to migrate to the modern format of retail? Do they have enough money to migrate?

Even now, most of the Indian consumers would prefer walking to the next-door store and buy their grocery over going to the hypermart or any of the retail format. Indian consumers prefer them because it is faster and they still have an emotinal bond with the shopkeepers. Modern retail formats are still a way of passing time and a family outing for most of the Indian consumers. Let us wait and watch what teaching retail schools can impart to the shopkeepers and how it would affect consumer behaviour in India. Sphere: Related Content