Modern Trade Evaluation
Why does a working women executive pick up an iPhone with ease but haggles over the groceries she buys? Why do shoppers at Big Bazaar pick up cartons of Real juices but think twice about buying Nestle milk cartons? What really is it with promos and deals that melt the heart of the most egoistic shopper?
The above questions boggle the mind of every retail marketer. We at GreyCells decided to find out insights on the subject. The study was done in two parts, employing both quantitative as well as qualitative methods of enquiry.
As part of the quantitative study, shop floor observations to determine shopper basket was covered. We also sought to determine Value Index or VDEX where VDEX = Weight of the ‘promo’ in the shopping basket / Weight of the ‘promo’ at the retail level
(Promo X bought as a % of Total Promos picked up) / (Promo X as a % of total promos available on the retail floor) * 100
The qualitative study involved the interviewer to shop with the shopper so as to observe how the shopping dynamics play out in the retail world. The shopping basket was evaluated in terms of ‘which’ deals were picked up. Post the observation exercise the shopper spent 30 minutes with the interviewer where the specifics of the shopping experience was discussed in detail to understand the VFM equation and expectation on the value front in retail promotions.
As we reached the end of this journey, one thing was certain that while today’s shopper looks for both bargain deals AND an assortment of premium brands and wide selection, what is also peculiar to India is the existence of bargain hunters in each consumer segment and class .