Digital Marketing and E-Commerce

A strategic
Model in
Retail
An altered- “Eight ways in retailing by Dough Tigert & Larry
Ring”
(Babson College)
Place

Systems
Communication Penetration

Suppliers Logistics
People Product

Value
The Pentagon (Hexagon) & Triangle Model
Digital Marketing and E-Commerce
 Place

Width: Depth Trading draw

Height of floor Where in the catchment
from ground
Traffic flow
Size Ceiling Height Location Corner Site
No. of Pillars
Count of 2W/4W
Catchment movements/ Pedestrians
Potential/
Competition
Intensity

Digital Marketing and E-Commerce

 Continue…

Logical Aesthetics/ Finish-

customer flow Positioning

Aligned Space Utilisation

Layout categories
Design Cost/ Sq. feet
Destination
Customer
Frequency of Convenience
buying/ Visits

Digital Marketing and E-Commerce

 Penetration

An Indian Perspective (S. tax- State wise)

Hub and Spoke
Stand alone
Cluster Efficiency
• Management
• Awareness/ Communication effectiveness

Digital Marketing and E-Commerce

 Product

Merchandising Intensity-

Sales

Merchandise/ Sq. ft

Digital Marketing and E-Commerce

 Merchandise Assortment

Depth vs. Width

Convenience vs. Competitive or Opportunistic

Differentiated Assortment

Velocity Assortment

Digital Marketing and E-Commerce

Value

Value is a perspective of Customer Segment

Price Vs. Quality
(Ideal is 50%*)
*In many segments price is 60% or more.
People

Service
Knowledge
Climate Perception vs. Customer
Employee vs. Employer

Communication

If winner on any of the corners of the

Hexagon, Communication to be “Positional”
else
only Promotional- “Sale” (Price Driven)

Digital Marketing and E-Commerce

The Triangle

What cannot be seen by

-Customers
-Competitors
Efficiency of the Triangle drives cost down

Systems

Technology to replace labour

Replenishment

Quicker check out

Digital Marketing and E-Commerce

Logistics

Supply chain efficiency

Reverse Logistics
Shrinkage
Reduction of DC cost
Improve handling (handling/picking)

Suppliers

Hostile Vs. Co-operative

Linking suppliers Supply chain to the Retailers
(When terms are finalised)

Digital Marketing and E-Commerce

 Staples Role
Role in SM: Destination Category
Staples is the largest business in food
Every households core need
Store Image builder and Transaction builder
Margin
Sales builders Builders Role

Cereals √ Destination
Pulses √ Preferred

Flours √ Destination

Salt & Sugar √ Destination

Edible oil √ Preferred
Spices & Dry
fruits √ Occasional