Wednesday, March 15, 2017

5 Ways a FMCG Brand can leverage GT Retail Network


Indian retail is vastly classified as organized or modern retail and the unorganized Kirana or neighbourhood stores. Though the penetration of modern retail has increased manifold in the past few years, the Mom 'n' Pop stores remain unfazed, serving their loyal customers with the same grace. These neighbourhood stores provide an unmatched opportunity for FMCG Brands to extensively engage with grocery shoppers. Here’s a few reasons why:

1.  Enhanced Brand Visibility through Strategic POSM Installation

Though modern retail and online models have slowly found acceptance among urban shoppers, neighbourhood retailers still remain the preferred choice of majority. 93% grocery shoppers still prefer shopping at Neighbourhood stores. Locational convenience, Proximity
of distance, Ease of Home deliveries over phone, short delivery spans, Monthly Credit/khata facility etc allows them to be the Heroes. Shoppers enjoy a short walk out of their homes or phone orders rather than getting into the hassel of pulling out their car and then struggling with traffic and parking issues to buy every nick-nack from some supermarket. Thus ignoring these stores in your marketing plan might not be a good idea. As a Brand Manager you should look at strategic In-Store Branding & POSM placement in form of posters, bay breakers, danglers, tent cards, wobblers to keep your Brand visibility high.

2.    Multiple Promotional exposure Generating Brand Recall

Interestingly a large percentage of shoppers make multiple visits to these stores, sometimes on a daily basis to pick items of convenience or routine needs. Thus providing an excellent opportunity for Brands to seed their existence and generate Top of Mind recall by exposing audience to their Brand communication and allowing them to sublimely register it in their brain. Brand must resort to high visibility, durable collaterals to ensure itself a primary position in customer’s mindscape.

3. Influence the Influencer to Generate Sales

Unlike Modern retailers, kiranas hold with them a loyal set of customer base who have been buying from him since ages. They share with them a fiduciary relationship and hold a position of trust. More than often shoppers seek guidance and recommendations on what detergent should they use Or how good is this new shampoo or what toothpaste would provide relief from tooth sensitivity?

Building relationship with these Kiranas, or running retailer oriented marketing campaigns like contests, celebrative engagements, Birthday and Anniversary engagements, loyalty programs can sure provide you an indirect edge for your Brand turning the retailer into an advocate. However you’d need to carefully tread on this opportunity and ensure it does not backfire in case the advocate turn into your antagonist due to any reason.

4. Targeted Sampling Initiatives

Neighbourhood kiranas serve as an excellent center for running targeted sampling initiatives. If you wish to generate trials among extremely niche segments this is the perfect place to tap the relevant consumer. Let’s say you launch a baby cereal and you wish to generate trials among women having infants, neighbourhood retailers can help you do just the job by profiling every store customer for your criterion since they anyway know most of them by name and have a fair idea about their household demographics.

5. Test Marketing & Feedback Collection


A particular kirana transaction is focused less on conversion and more on conversation. Transactions at these stores are not just a monetary exchange but are also exchange of small talks, colony gossip, product reviews and a lot more. Thus these stores also prove highly resourceful for test marketing ventures and/or analyzing consumer pulse through feedback for your newly launched or even an established Brand.

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