Retail Communication

Presented By- Group 2

Chapter - 12

SUBMITTED TO
PROF.DEVASHISH DAS GUPTA
INDIAN INSTITUTE OF MANAGEMENT, LUCKNOW (NOIDA
CAMPUS)

PREPARED BY: GROUP-2

ANKIT DUDEJA

[WMP09067]

ANOOP SINGH

[WMP09068]

GAURAV SHARMA

PRATEEK RAIZADA

SIDDHARTH SHANKAR [WMP09110]

[WMP09080]
[WMP09097]

Introduction
Retail
Communication
Strategy
External
Out of store or divergent
communication uses mass
media vehicles such as
television, newspapers and
radio.

Internal
In store or point of purchase
communication

The Internal or Convergent communication

The internal or convergent
communication aims to
generate impulse purchase
and informs the customer of
various offers.
Stores use tools such as
visual merchandising,
signage and graphics, and
other forms of point-ofpurchase communication
(PoP) to achieve a combined
effect.

The Internal or Convergent communication

It comes into play once customer is within the precincts of store.
Customer interprets the communication according to their cognitive and affective
predisposition..
Its a different form of advertising :
It happens at point of action.
It is dependent on kind of product bought and customer frequency to visit shop.
It s dependent on Retailer and store to greater extent.

Role of POP
POP materials ensure
precise marketing.
For manufacturer POP
material is more cost
effective than mass media
advertising.
POP acts as a surrogate
salesperson.
Attractive and informative
PoP reduce dissonance
during waiting time.
It helps in making shopping It activates consumers
memories related to a brand
interesting thus removing
and helps to make a purchase
frustration involved.

in brands favor

Encoding Specificity Principle

Recall or retrieval of certain piece of
information is enhanced when the
context in which the information was
encoded is similar or the same.
High level of brand awareness does not
always translate into sales. Shoppers do
take into consideration the information
they acquire in stores, in addition to
relying on out of store communication
Advertising attracts; but the success of all
communication efforts in many cases
depends on the last 5% of the effort which
manifests itself at the POP just before the
consumer chooses to buy, rather than the
95% that preceded it

Role of Packaging
VIEW Model
V Visibility or ability of a pack to stand out on a
shelf.
I Information or provision of relevant
information such as Usage Instruction and
Ingredients.
E Emotional appeal
W Workability or durability or easy storage.

Role of Packaging
Pack Structure: helps in stocking as well as
building brand equity. It influences perception of
the product example, coke bottle strikes
emotional chord with customer via its grip , feel
and aesthetic value.
Graphics: communicating both informative and
emotional message. It communicates Brand
identity ,product name ,product description,
flavour or variety identification , attribute
description .

Role of Packaging
Brand Identity: To build brand recognition and create
memorability and loyalty. Brand logo is part of it.
Copy: Communicates product information regarding its
usage and attributes.
Colour:
emotional and subjective part of packaging.
Sets the mood
Differentiating product varieties and flavour
For new product it brings association with actual
product inside.

Shopping Involvement
People exhibit either economic or recreational
shopping behavior.
Involvement has been treated as major sociopsychological variable that explains individual
differences.

Level of information search and

involvement
POPAI uses following categorization to define different kind
of shopping behavior
Specifically planned - : Brand/item planned before entering
the shop
Generally Planned -: Planned product category not specific
item
Substitute -: Change from planned item to substitute good
Unplanned Item bought that shopper didnt have it in
mind while entering shop
Impulse
(POPAI : Point of Purchase Advertising International)

Impulse Purchases

Impulse Purchases
Made in a store that are different from those
customer planned to make before entering the store
Pure Impulse -: Escape that breaks normal buying
pattern
Reminder Impulse -: Shoppers remember that
stock of this good is low
Suggestion Impulse -: Shopper visualizes a need for
it
Planned Impulse -: Purchase decision based on
special coupons

Classification based on benefits sought

Performance/
Convenience
Benefit of Store

Variety

Specialty

Convenience

High

Medium

Low

Assortment/
Variety

Low

High

Medium

Shopping
Experience

Medium

Low

High

Expectation based on POP communication

model
Low Involvement Shopping at
Convenient store where the involvement of
the shopper is very low and the effort they
expend is also low.
The choice of store is based on the convenience
of location.
The POP communication in such a situation is
very helpful in affecting brand switch.
Packaging would be the most potent
communication tool.

Low Involvement Shopping at Variety

Stores :
Low Involvement Shopping at Variety Stores
:In this case, although the shoppers
involvement is low, the store provides variety.
In this situation the shopper asks for a brand but
does not mind switching if the preferred brand is
not available. The idea is to buy from the same
store and not to take the trouble to go to other
stores.
The retailer has to rise above the clutter and
stand out among stores selling similar products.

Low Involvement Shopping at

Experience Centric Stores:
Low Involvement Shopping at Experience
Stores: In this situation, the shopper is storeloyal and due to low involvement with the
product, he does not want to exert any extra effort
to buy a brand.
Such shoppers are more prone to impulse buying
and with little persuasion will buy more products.
The retailer must stimulate shoppers to try more
products.
The retailer should try to retain the shopper for
the longest possible time for increased purchases.

Medium Involvement Shopping at Convenient Stores

In this case, the shopper is more involved than

in the previous case, but would prefer to buy
from a store that is conveniently located.
The shopper seeks variety and thus apart from
store location, assortment of products also
becomes important.
The shopper wants optimization of shopping
time and effort. Thus, as a retailer, one has to
help the shopper choose a brand through eyecatching posters and attractive packaging.

Medium Involvement Shopping at Variety Stores

The shopper has a medium level of involvement in
buying and is looking for options in terms of benefits
derived from the store. The basic behaviour is
variety-seeking.
The shopper seeks variety not just in products but
also amongst stores. Store location is of importance
and so is the external appearance of the store.
The challenge is to get the mind as well as wallet
share by leveraging on tangible benefits such as
schemes and price discounts. Category management
is an important function in such stores.

Medium Involvement Shopping at Experience Stores

Medium Involvement Shopping at Experience Stores: In
this case, the shopper has already decided upon the store
and would aim to seek variety within the chosen store.
The communication challenge is to provide the required
information and reduce dissonance by making the buying
process more personal and involving.
The shopper will spend more time in the store. Shopping
in such cases is a planned process and not just an activity.
This provides the retailer an opportunity to push his own
retail brands. The strategy here is to offer better service
and provide add-on intangible benefits.

High Involvement Shopping at Convenient Stores

High Involvement Shopping at Convenient Stores

In this type of shopping, the shopper is seeking a
particular brand and is also ready to expend effort to
buy it.
A store that is conveniently located and stocks the
required brand will gain the patronage of such
shoppers. Stores near or on the way to workplace
would often fall in this category.
Due to easy availability and high visibility, the
communication at the shop reinforces the shoppers
belief in the brand and enhances brand salience.

High Involvement Shopping at Variety Stores

High Involvement Shopping at Variety Stores Shoppers
visiting such stores have already decided on the brand
that they wish to buy.
However, they would like to reassure themselves by
collecting information about competing brands.
Thus the retailer has to provide information for
comparison and let the shopper re-evaluate the decision.
In this case, if the shopper gets more value for the same
price, he will switch; otherwise he will stick to the
original brand choice, even when other brands are
offering the same features at a lower price.

High Involvement Shopping at Experience Stores

Here, both the store and brand are pre-decided and there
is high loyalty towards them.
The shopper prefers stores that give the best
identification with the self-image of the shopper.
Exclusive branded showrooms would fall in this
category.
Here the retailer has to project the store as a destination.
The retailer should give personal attention to shoppers
and should know the likes and dislikes of an individual
shopper. Atmospherics, spatial visual and merchandising
should be used to induce longer stays by shoppers.