“On your marks, Get set, BUY!!!”

This article was written by me & published in International Point of Purchase Magazine, January 2010 issue and is copy right protected.

To understand the self-service industry in India and determine the demand of multi-channel self-service technologies, NCR commissioned BuzzBack Market Research to conduct a shopper study. The research reveals that time pressed shoppers are game for quick and convenient shopping trips where they increasingly handle number of transactions on their own through self-service devices and thus in-store self-service technologies play a vital role in meeting their service needs. Such on-the-go consumers prefer to do business with companies that make things easier for them.

People want more control of their interaction with businesses and would not prefer waiting for assistance with transactions when they can more quickly and easily do it themselves at guaranteed quality! Consumers increasingly expect to be served where and when they choose, and are putting pressure on businesses and government agencies to deliver seamless service through the integration of self-serve devices, including the Internet, mobile devices and multipurpose kiosks.


The survey covered 505 Indian respondents. We bring you the insights!

Background on survey methodology

A total of 505 Indian respondents, participated in this study which consisted of 54% females and 46% Males. The age profile of respondents ranged from 18 years to 65 years.

Findings:
The survey reveals how self-service is playing a key role in providing consumers with more flexibility and choice as they change their purchase decisions and behavior in order to beat recessionary pressures. Cyclic economic conditions, not only change people’s perception of value but also influence their decision making with regards to the brands bought. In the Indian retail context, the recent spate of economic conditions has thrown up some unique challenges for marketers which, if handled well, can be successfully leveraged to build a long lasting relationship with the customer or cause an irreversible damage of losing them. The research throws light on the economic conditions and how consumers weigh their decisions based on them.

Effect of economic climate on shopping and purchase decisions

The existing economic environment resulted into interesting findings about people’s shopping patterns. When asked about how the economic climate was affecting their shopping habits, 63% shoppers said that they would use internet to research about various products and prices and 60% shoppers stated that they would want to receive price comparisons, product reviews, coupons, promotion and store sales information online or via email from retailers, which shows that online medium is gaining immense importance with respect to finding definitive answers to customer’s queries and making sure that they are not only buying the right product, but at best possible deals. Also because of the slowdown, customers have become more value conscious, 57% people stated that they are ready to change loyalties by switching on to another retailer for the sake of better value. Bargain hunting or ‘shop hopping’ between their favorite retailers in search of the best deal and choosing store brand or generic products over brand name options will be a norm.
So, value proposition is one of themes that can be exploited by brand marketers. Tangible value is what will increase your customers opportunity cost, making him stay with a brand. Self service technology such as automated coupon dispensers, or information kiosks within the store can be effectively used for value communication purpose and influence purchase decisions
Price promotions, discounted merchandise offered by marketers to make up for their short term sales goals, and are successful in enticing consumers. However, investing in your brand communication and building your brands is what will reap the benefits. 68% of the respondents said that they would want to buy discounted goods and 59% said that they were interested in limited period offers. Such price wars are bound to challenge Brand allegiance compounded with changing shopping patterns of consumers.

Rush Hour:

Time spent by consumers within a retail outlet is one of the important metrics used to gauge store profitability. Time spent & conveniences inside the store are other major trends that were tracked in the survey. 72% shoppers said that they would desire to pay for their shopping more quickly so they do not need to increase the overall time spent shopping & 64% of the respondents felt that other customers spent considerably more time shopping which made the stores busier adding to their discomfort. This calls for better optimization of billing counters or deploying self service check-out and billing facilities which would not only make the process quick and convenient for the consumers but also make the stores less crowded and more experiential.

“May I Help You?” -Staff allocation in retail stores:

The research also examined the extent to which consumers would prefer to wait for personal assistance when banking, shopping, dining, etc. Results showed that while respondents prefer to manage the majority of activities on their own, a significant number still prefer person-to-person encounter, which is typical in Indian retail context. Even though there is a growing trend of retailers deploying self service apparatus, shoppers at the same time would also prefer sales personnel in the retail outlet. When asked about the importance of staff in retail stores, 79% shoppers stated that they preferred to ask sales staff about the product locations and 75% shoppers felt that sales staff made their purchase process faster. Although convenient and user friendly, it would be difficult for retailers to solely depend upon self service technologies. The presence of human element to explain the process or just provide required information will continue to be imperative.

Proper deployment of self-service will allow businesses to focus personal assistance where consumers find it most valuable. Companies that want to remain competitive in the future will need to understand how to deploy self-service to maximize convenience and provide the flexibility required by consumers.


Convenient non-retail self-service solutions in stores

Self-service non retail solutions are not yet common in the Indian context but due to introduction of advanced technology and its fast adoption, people are slowly getting to know the utility aspect of self service tools. When shoppers were asked that what according to them would be convenient to use in a store to obtain non retail services, 74% of shoppers said that receiving discount offerings and product information on large screens in store is what they would prefer and 62% people said that they would like kiosks that shows you where to find products and product sections in the store. This largely highlights the importance that shoppers lay on seeking relevant information and convenient product placements within the stores.

Convenient self-service solutions in stores to help with purchases

As consumers adapt their behavior to cope with the slow down, they are also looking for more advice and help from companies with decisions. On account of emergence of ‘mall culture’ and different organized retail formats coming out in the markets, many in store self service tools have a potential to grow and generate sizable demands. On the convenience platform, when shoppers were asked to select self-service solutions in a store which would help them in their purchases, 73% customers preferred getting information about discount vouchers via their mobile phones to redeem in store. Taking into consideration the high mobile penetration in India, it is not surprising that this is the most sought after self service tool. Second on the preference list was getting confirmation of the time slot for a home delivery on their mobile phone which 64% of the shoppers preferred. This re emphasizes the importance of mobile phones as a means to connect with Indian audiences and give out information.

Affinity towards retailers who adopt self-service solutions

When asked about their likelihood to shop with a retailer that gives them the flexibility to interact easily via online, mobile and kiosk self-service channels versus a retailer that doesn’t offer such facilities, a staggering 93% shoppers preferred the former laying down an encouraging scope of innovative work in multi channel self serve industry. Also 81% shoppers showed increased likelihood to use self service since past one year. Ensuring a consistent and predictable customer experience is a challenge for even the best companies in the world, however self service can streamline many processes followed by retailers thus enabling consistency.

Brand Building

Smart companies are implementing ways to take the in-store experience beyond the lease line to extend brand affinity, drive consumer behavior and provide relevant lifestyle content to the consumer. All these advancements aim to enhance the shopping experience, lifting it to more than just a trip to a store, but rather a theatrical experience where purchasing merchandise is only part of the journey. Implementing self service technologies in the retail environment enhances positive perception of the deployer’s brand. 80% of the shoppers perceived the brand positively because of adoption of self service technologies.
Not only are these solutions successful at engaging consumers, but they have also been proven to extend dwell time and increase brand awareness – key factors in ongoing loyalty and long-term buying relationships.
In addition to the traditional touch points used for decades and the ubiquity of the Web in our daily lives, companies should strive to reach their customer base in new and innovative ways that are meaningful engaging and enriching. The ultimate goal is to take advantage of channels that the public is already tapping into in a meaningful way and integrate company’s brand into those various touchpoints, including but not limited to e-mailers, info kiosks etc.

Multi channel self services which continue to give you information, anytime, anywhere are most preferred by consumers. 58% shoppers are more likely to do business with companies that offer these services. Content delivery , information sharing, ease of transaction, interactive interfaces etc are some of the most powerful tools in dynamically delivering a company’s products and services easily, effectively and immersively while at the same time, engaging the customer with the overall brand. Whether in a store or at a non-retail point, the engagement must deliver an instant “A-ha!” moment that connects the individual experience and on-screen/self service content to everything else the organization is doing in the marketplace.

Research shows consumers are seeking out those companies that can offer both value and service by adapting quickly to their changing needs in these uncertain times.
Multi-channel self-service is a smart capital investment. It provides the choice that consumers are demanding while being cost-effective to companies that allows them to redeploy employees to improve service and sales. As consumers experience these benefits of self-service across multiple industries, they will come to expect the same levels of interaction in more aspects of their lives.

Falling Consumer Confidence Index !

Consumer confidence in India has fallen by 11 points to 122, the lowest level in the last five runs of the Nielsen Global Consumer Confidence Index survey, which measures consumer confidence, major concerns and spending habits in 51 countries. Some 42 per cent of the Indian online consumers who took part in the survey believe that their country is currently in an economic recession.

Globally, the latest Nielsen Consumer Confidence Index has dropped to 88 – down six points in the last six months and the largest single drop the index has recorded in the last three years. India dropped from 133 points in the last leg of the survey in November 2007 to 122 points. Across countries, the US has suffered the biggest fall in the Confidence Index, dropping 17 points.

Overall, Asia Pacific consumers are still amongst the most confident in the world. Five of the global top 10 countries hail from the Asia Pacific and the overall total for the region is one point above the global average. However, for many emerging countries in Asia that have enjoyed the fruits of economic growth and the boom in recent years, the last six months have been a stark wake-up call as consumers find themselves struggling with double-digit inflation, rising unemployment rates and stagflation for the first time in a decade.

According to Mr.Sarang Panchal, managing director, customised research, Greater China and Asia Pacific, The Nielsen Company.The last six months have been a turbulent period for the global economy and this has impacted the growth of the Indian economy as well. The rising crude oil prices, inflation and growing unemployment rates have all diminished consumer spending powers and have in a way shaken the Indian consumer’s confidence.

However, all is not lost. Despite the drop, India ranked second on The Nielsen Consumer Confidence Index, with 122 points, just behind Norway, which scored 129 points. Indian consumers continue to be the most confident in the region, despite posting a dramatic 11 point fall. India is one of the few markets that stand to gain from the grim economic outlook. In recent years, India has established itself as a hub for outsourcing technical and support staff, and as belts in the world’s leading economies tighten, we may well see India’s economy and the confidence of its consumers soar.

Portugal, Korea and Japan languished at the bottom of the rankings as the world’s most pessimistic nations.

Indians are optimistic about the local job prospects over the next 12 months. At 86 per cent, Indians are the second most optimistic people where the job market is concerned over the next 12 months. Around 26 per cent of the Indian respondents said they considered job prospects in the country “excellent”, while 60 per cent respondents said job prospects were “good”.

The promising job prospects over the next 12 months make Indians confident about their personal finances over the same period. Around 12 per cent of the Indian respondents said they considered their state of personal finances to be “excellent”, while 67 per cent said it was “good” in the next 12 months. At 79 per cent in this positive frame of mind, India figures along with Denmark and Indonesia in the list of countries most optimistic about personal finances.

Mr.Panchal adds that in spite of an alarming inflation rate, India is still a growing economy with the GDP ranging at around 9 per cent. There is still demand for talent in the market and, especially with the entry of various multinational brands, the job market looks lucrative.

Good job and financial prospects have sufficiently loosened the Indian purse and 45 per cent of the respondents surveyed were optimistic that this was the perfect time to buy things they want or need.

Indians are shopping more and buying well known brands as seen in the recent Luxury Brands Survey done by Nielsen, where India figured amongst the top three most brand conscious countries in the world. This shows that good jobs, hefty pay packages and exposure to global lifestyles are pushing the Indian consumer towards luxury items. “So, even when there is an economic recession globally, Indians are splurging and optimistic about their finances,” adds Panchal.

Compared to the last leg of the survey, the percentage of people putting their spare cash into savings has increased by 5 per cent and the percentage investing in shares and mutual funds has dropped by 3 per cent.

It is interesting that despite a downturn in the economy, concerns about inflation, etc., the percentage of Indian respondents who do not have any spare cash after their monthly essentials have been paid for remains the same – 4 per cent – as in the last leg of the survey. This shows that the majority of Indian consumers have money left even after meeting their essential expenses.

Savings are still a priority for Indians and 59 per cent Indians put their spare cash into savings, 48 per cent invest in stocks and mutual funds, this being the fourth highest percentage globally.

“Today, Indians are more careful about the financial risks that they want to take. The fluctuating market conditions have curbed risk taking behaviour and made Indian consumers opt for saving, rather than take a chance with their money on the market,” says Panchal.

Spending on holidays and vacations has increased by 4 per cent (to 37 points) and shows the growing interest of Indians in travelling and seeing the world. Incidentally, the amount of money spent on home improvement (27 per cent) and new technology (27 per cent) has been impacted by the rising inflation rates and dropped by 3 and 2 percentage points, respectively.

Paying off debts/ credit cards/ loans (35 per cent), buying new clothes (34 per cent), out of home entertainment (28 per cent), and retirement fund (22 per cent – fifth highest globally) are other areas where Indians spend their spare cash.

The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted in April 2008 among 28,253 Internet users in 51 markets in Europe, Asia Pacific, North America and West Asia. The survey provides insights into current confidence levels, spending habits/ intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, the status of their personal finances and their readiness to spend.

Latest Guide To Market Planning (Urban/Rural)

The fourth edition of the RK Swamy/BBDO Guide to Market Planning is now out. The earlier editions served as a source for market planning across the consumer packaged goods, durables, banking and insurance, telecom, automotive products, social marketing and government sectors.

This new edition, which is the fourth, is a comprehensive analysis of urban markets, rural markets and a combination of urban+rural.

As in the earlier editions, the guide provides three types of indices: Market Potential Value (MPV), Market Intensity Index (MII) and Market Exposure Index (MEI). All three are essential tools for market planning. The current edition of the guide has these indices separately for urban, rural and urban+rural.

MPV provides the relative aggregate market potential. MII provides the relative concentration of purchasing power. MEI is indicative of the relative ease with which the marketer can approach the task of marketing communication. These indices, according to the agency, have emerged as powerful marketing tools in the market planning process.

The new edition presents data for 515 districts in 21 states and three Union territories, covering 98 per cent of India’s population. (The country has 593 districts.) Now marketers can define the geography they want to analyse by way of districts or towns or rural only, and develop the plans that best suit their needs.

The usefulness of the guide has been further enhanced by the interactive CD that not only aids advanced market planning, but enables the marketer to see for herself the geographical area of the chosen market, with the map showing rail lines, roads, district boundaries, etc.

Dr Gowri Arun has been the prime mover of the guide which has used elaborate quantitative process using 24 distinctive sources of data. Weightages were assigned to each of the sourced in a most judicious manner. The team took nearly two years to develop the indices for this edition. It is invaluable because it reduces the cost of marketing, if used wisely.

Cartoon Network Survey

Cartoon Network is out with the seventh edition of New Generations, India’s largest children’s lifestyle research study. The survey attempts to map subtle changes in children’s behaviour and preferences. It throws up interesting facts relating to their mindsets and choices, considering their access to technology, TV viewing habits, media consumption and frequency patterns, spending power, favourite icons, and awareness about the nation and the world at large.The survey report clearly points out children’s increased access to emerging technologies. Interesting figures have emerged when it comes to use of mobile phones by the younger generation. Around 9 per cent of children across SEC A, B and C in the age group of 7-14 years have their own mobiles. Interestingly, more boys than girls own and use mobiles. The television consumption pattern thrown up by the survey will be a matter of celebration for all those who have a stake in the television business. Television is the No. 1 choice for kids – a whopping 98 per cent watch it daily. Newspapers are a distant second, followed by a close fight between radio, comics, magazine, cinema and the Internet. Television also scores high when it comes to kids’ consumption frequency of various media. As many as 98 per cent respondents watched TV throughout the week, radio and newspapers stand at second and third positions, respectively, with 47 per cent and 44 per cent children accessing these media at least twice a week. An interesting trend can be spotted amongst these figures – 25 per cent children read a newspaper on a daily basis. This is twice the level of readership registered among children in other countries covered by similar surveys. The survey finds that 76 per cent parents watch TV with their kids at some point of time in the day. This could be because India still has many single TV households. The figures for the combined TV viewing have been split into weekday and weekend viewing. On weekdays, 59 per cent parents watch TV with their kids at prime time (8-9pm); on weekends, 54 per cent watch TV with their children at prime time. Afternoons (2-4pm) account for the highest joint viewing of programmes by parents and kids. During holidays, 44 per cent parents spend their time watching afternoon TV with their children; on school days, only 29 per cent parents watch TV in that slot with their kids.Commenting on the purpose and significance of the study, Duncan Morris, vice-president, research and market development, Turner International Asia Pacific Ltd, says, “The research aims to gather facts and figures about the choices and preferences of kids in India. We invest heavily in the study to obtain better understanding of the changing needs, lifestyle and attitude of youngsters. The study helps us when it comes to deciding on programming, packaging and wooing advertisers.”Pointing to other interesting data in the study, Krishna Desai, associate director, research, Turner International India Pvt. Ltd, says, “When it comes to assessing the role and impact of advertising and Internet use by kids, the survey throws up interesting figures.”When asked whether TV ads give them any useful information, 74 per cent kids said ads helped them decide what to buy. When the same question was put to the parents, 78 per cent agreed that TV ads do give useful information on products for both them and their children. Around 14 per cent of the kids and 15 per cent of the parents felt TV ads are of no use. And, 11 per cent of the kids and 7 per cent of the parents believed advertising had nothing to do with what they buy.Some 40 per cent children reported using a computer on a daily basis; a quarter of these use the Internet as well. Children in the age group of 7-9 years use the Internet less frequently than older children aged 10-14 years. Online gaming is the most popular activity for 45 per cent of the kids, listening to music comes second (13 per cent).Pocket money given to children throws up some more exciting trends. The figures say that 36 per cent parents give their children pocket money. However, where pocket money was earlier disbursed on a monthly basis, now it is given out every week. The average monthly pocket money for kids in all the surveyed cities was Rs 193. Again, boys get more money than girls. Kids in Ludhiana get the highest pocket money (Rs 402), then Mumbai (Rs 215) and Delhi (Rs 213). Children also get to amass an average Rs 700 as gifts on various occasions. So, the total pocket money of the surveyed kids was Rs 330 crore, with gift money adding another Rs 138 crore. The total is a staggering Rs 478 crore per year. Now, that’s some food for thought for advertisers targeting kids as consumers.The children surveyed were asked what they would buy if they had Rs 5,000 in hand. Around half of them said they would buy bicycles, mobiles, video games and clothes, in that order. The survey also checked the general knowledge of the children: 60 per cent identified the Indian President correctly, while 80 per cent identified the Prime Minister correctly. Around 74 per cent of the children said India was their favourite country, 9 per cent chose the US, 4 per cent, Australia, and 2 per cent, the UK. Universal principles such as promoting peace and love in the world are high on the children’s minds – 34 per cent wished for peace in the world and 32 per cent wished for the elimination of poverty and hunger. The kids’ favourite icon is no longer Sachin Tendulkar; the Little Master has been run out by Mahinder Singh Dhoni, though by just 1 per cent – 33 per cent voted for him as against 32 per cent for Tendulkar. Actor Hrithik Roshan has usurped King Khan’s throne. Actor Aishwarya Rai Bachchan leads the list of female icons, followed by fellow actor Rani Mukherjee.The research study for 2008 covered 3,020 boys and girls, aged 7-14 years, SEC A, B and C, in 14 cities across India. The parents of the surveyed kids were also included for a few select queries. The cities covered included New Delhi, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad, Ludhiana, Jaipur, Lucknow, Guwahati, Nashik, Kochi and Madurai.