Urban retailing Trends
-
Upload
bhupinder-kumar -
Category
Marketing
-
view
20 -
download
1
Transcript of Urban retailing Trends
Urban Retailing Process Club Meeting
Maker Towers Mumbai28th & 29th May-2015
Emerging Urban Potential
Type of Urbanization
Future of Urban Mobility
Emergence of Alternative Fuels
Creating Value for Many
Ground Realty
Action Plan
Agenda
Emerging Urban Potential
1531.4
357.6
1016.9
1458.41304.5 1371.7
Emerging Urban Potential
Urban
All India
Rural
Urban India will drive a near fourfold increase in average national income Compound annual
growth rate, %
Emerging Urban Potential
1500
1200
900
600
300
0
300 M 361
50 M 16% 62 (17%)
1350 M
1 MARCH , 2001, 1027 M
1947 1951 1961 1971 1981 1991 2001 2011 2021
218 (25.7%)
285 (27.8)
366 .3(31%)
459 M (34%)
Emerging Urban Potential
Source: India Urbanization Econometric Model; MGI Analysis
Emerging Urban Potential
+250
Total Population 856 1,040 1,155 1,470Million
Urbanization rate 26 28 30 40% Source: India Urbanization Econometric Model; MGI Analysis
Cities are likely to house 40% of India’s population by 2030.
220
290
Urbanization,2008 %
Pondicherry
GDP 1990-2008Compound annual growth rate, %
Fastest growing states also had the highest urbanization rates
Gujarat
Maharashtra
Bihar
Tamil Nadu
HaryanaKerala
Andhra Pradesh
HimachalPradesh
Orissa
Jammu & Kashmir
North East
West Bengal Punjab
Chhattisgarh
Jharkhand
Madhya PradeshUttar Pradesh
Rajasthan
Uttaranchal
Karnataka
GDP 2008,2008 prices
Delhi
Emerging Urban Potential
Emerging Urban Potential
Mega Trend :
Urbanisation Type In India
Type of Urbanization
Type of Urbanization
INDIA URBANISATION SCENARIO
CITY CITY
HINTERLAND
Type of Urbanization
Type of Urbanization
Type of Urbanization
Type of Urbanization
Future Mobility Scenario & Consumer Trends
Greenovators
High Frequency
Commuters
Family Cruisers
Sensation Seekers
Silver Drivers
Low End Mobility
Future of Urban Mobility
Future Mobility Trends
Mega Trends• Feminization • Individualization • Globalization • Neo-Ecology• Inter-connectedness • Mobility
Socio-Consumer Trends• Down aging• Simplify • Deep Support • Family 2.0• Multi-Graphiy • New LUXURY • Neo- Cities • Cheap- Chick • Greenomics
Alternative Fuels for Alternative Vehicle
Electric Vehicle
CNG AUTO LPG ELECTRONIC VEHICLES BIO DIESLE
Conclusions
• Early penetration of EV in India would come through 2-wheelers; this would create infrastructures that would facilitate larger vehicles. • Low carbon transport transition shall deliver Air Quality and Energy Security co-benefits
• Improved batteries with higher energy density will also help reduce weight of batteries: further pushing down EVs costs
• Limited range per charge put constraints on penetration of cheaper EVs for urban transportation
Scenarios Description: EV & EV_LCS
Electric Vehicle Scenario (EV): Assumptions
• Domestic policy supports: Direct capital subsidy, improved charging infrastructure, dedicated lanes, incentives for R&D in power train, batteries and smart grid technologies, quotas for EVs in urban public & goods transport
•Battery costs comes down to half of current costs in next 10-15 years: driven by advancements in battery technologies, improvements in battery capacities, declining component costs, and economies of scale in production
Mega Cities
Mega Regions
Mega Corridor
Sustainable Smart Cities
Retail Outlet Value Explosion
SocialDimension
Mental Dimension Services
Fuels
Value
l CCTV Coverage
l Auto Ticketing
l Digital Density DS
l SMS to Customer (RFID)
l 2T Dispensing
l Automation
l Fool proof traffic management
l Dedicated tank lorry decantation area
l Emergency helplines
l No leakage/oil spillage
SAFETY HI-TECHl 24 hours operation
l ATM
l Doctor on call
l Insurance
l Utility payment drop box
l Refreshment corner
l Railway reservation
l Consistency
l Breakdown
l Flat Tyre
l Free Air
l Free Water
l Clean Toilet
l Seamless practices
l Petro Card Community
l Premium Fuel Community
l Customer Panel
l ARB Users
l Office Bearers of Adjoining Societies
PRODUCTS
QUALITY
BRANDS
l Speed
l Mak
l Petrocard
l Hi-speed
l V-care
l Fleet card
l NPND
l NANOl Correct Delivery
l Correct Quality
l Lane Optimization
l MS
l LUBESl HSD
• CNG
Value Explosion of our PFS Platinum Outlet
Proposed Communication Strategy
Value
Proposition
Re-Lauanch
Advantage
Demonstration
Resonate with
the customer
Differentiate with the
competition
Re-enforcement of
image
Points of Leverage
Image
Augmentation
Communication Explosion
Thanks
Future of Urbanization in India
Urban Scenario
Urban Trends
Urban Consumer Behavior
Smart Cities/BPCL First
Mobility Trends Mobility Types
Future Business Model
Mobility Types 2020
Future of Urban Mobility
Mega Trends
Social Types
Consumer Behaviouer
Future of Urban Mobility
4654 58
69
5446 42
31
1990 2001 2008 2030
URBAN
RURAL
15,903 29,100 49,043 238,041100%=
Cities will account for nearly 70 percent of India’s GDP by 2030
Share of India’s GDP%; rupees billion, real 2008
7.4 100
5.9 28
728.3
Compound annualGrowth rate, 2008-30%
Share ofgrowth%
The Middleweight Challenge
• These cities by 2025 will have GDP in the middle of top 20.
• They are Vadodara, Nagpur and Vizag.
• Average GDP/per capita of emerging market cities is 30% of developed economic levels.
• This gap will be closed and the figures will rise to 60% by 2025.
Growing Middle Class
l Benchmark levels = Rs.9 lac per year.
l No of households with this income will be more in the emerging markets then developed economies.
Shifting Demographics
l 50% of urban children and 50% of urban elderly with incomes above Rs.9 lacs will stay in emerging market cities.
Creating a Pull Effect in Urban Market
l Homogeneous Customer Behavior
l Fast Life style
l High Volumes
l RO Expansion Difficult
l Similarities < Differentiations
l Volume Shifting to Suburbs
4 D Pull Effect
Functional
Smooth entry & exit
l Easy ingress & regress
l Dedicated Lanes
l Best Lay out
l Best MPD configuration
l Convenient Maneuverability in forecourt, no queuing of vehicles
Social
Ability to interact with people through
l Petro Card
l Premium Fuel
l Customer Panel
l ARB Users
l Official Bearers of the adjoining societies
Cultural
Ability to deliver Promise of the company being:
L Innovative
l Reliable
l Caring
Mental
Ability to help transform others through
l Regular Q & Q
l Product Knowledge Transfer
l Automation Knowledge intervention
l Experience of Auto Ticketing,
l SMS
l Helping attitude of all ( DSM & Dealer)
Dimensions
Paradigm Shift
Current Reality Leadership Model
Foreman Compulsion Business Driver
Focus Short Term Gains Long Term, Life time value chain
Product Single Product Multiple Products
Brand Structure Simple Complex Brand Architecture
Number of Brands Focus on single brand Category Focus – Multiple Brands
Dealer Communication Role
Coordinator of limited options
Team leader of multiple communication options
Communication Focus Internal External as well as internal
Business Focus Sales and Shares Identity of a friend in the locality
Creating Pull Effect in Urban Market
Strategic Plan
NROUPGRADATION
ACTIVATING STRATEGY
MODEL IMPLEMENTATION
RESOURCE ALLOCATION
STRUCTURALIMPLEMENTATION
MANAGING CHANGE
ROLE CLARITYIMPLEMENTATION
STAKEHOLDER MANAGEMENT
FUCTIONAL IMPLEMENTATION
ACHIEVING EFFECTIVNESS
OPERATIONALIMPLEMENTATION
Evaluation & control
FEED BACK
Creating Pull Effect in Urban Market
Training Dealer/DSM
RO specific Element in Place
Position Practices
Communication
Creating Pull Effect in Urban Market
Focus Activity– Services– Safety– Hi-tech– Social Dimension
FUNCTIONTING PRACTICES RELATIONSHIP
Dealers BPCL Promise– Innovative– Caring– Reliable
Activities Done by the Dealer
Volume Driver
Benefitl Functionall Emotionall Self Expressivel Social
Creating Pull Effect in Urban Market
SocialFunctional
Mental
RO Relationship Building
Creating a “ Pull Effect” in Urban Market
l Sales Officers / TM to develop DNA of
the RO E.g. All Platinum PFS ROs
l Re-interview all the DSMs
l DSM & Dealer connect is the KEY
TRAINING
Communication to the Customer
Need for New Town
• India needs 6000 town with > 1 LacPopulation.
• 423 towns & cities (> 1 lac Population):60.3% of urban population.
• 4728 towns (< 1 lac population):39.7% of urban population.
• Some of these urban areas could be Upgraded as integrated towns.
INDIA URBANISATION SCENARIO
Towns to accommodate 70%
70%
Suburbs up to 30 min 20%
Villages 10%
At least one town within 60 min.
• The most cost effective efficient and environment
friendly transport system is provided by having • Rail as the basic and;• Walk, Cycle, Rickshaws etc. feeders.
• Development of new rail-based transportationnetwork in the existing cities require
substantialcapital investment
• On the other hand developing new urban centers along the existing rail corridors prove cost effective.
Use of Existing Rail-Corridors
INDIA URBANISATION SCENARIO
Area 1,96,024 sq.km.
Total Population (2001) 5,05,96,992
Future Population 9.6 crores
Urban Population @ 75% 7.2 crores (approx.)
Required Corridor Areato accommodate 7.2 crore population (assuming 10, 000persons per sq. km.
7,200 sq.km
INDIA URBANISATION SCENARIO
Area 308,000 sq.km.
Total Population (2001) 96,752,247
Future Population 18 crores
Urban Population @ 75% 13.5 crores (approx.)
Required Corridor Areato accommodate 7.2 crore population (assuming 10, 000persons per sq. km.
13,500 sq.km
INDIA URBANISATION SCENARIO
• Existing Potential Corridor in the state : 2610 km
• Developing 50% of the potential corridor will be adequate to accommodate the future growth of the urban population.
INDIA URBANISATION SCENARIO
Area 2,75,068 sq.km.
Total Population (2001) 13,500
Future Population 14 crores
Urban Population @ 75% 10.5 crores (approx.)
Required Corridor Areato accommodate 7.2 crore population (assuming 10, 000persons per sq. km.
10,500 sq.km
INDIA URBANISATION SCENARIO
• Existing Potential Corridor in the state : 1940 km
• Developing 37% of the potential corridor will be adequate to accommodate the future growth of
the urban population.
INDIA URBANISATION SCENARIO
• Existing Potential Corridor in the state : 2815 km
• Developing 37% of the potential corridor will be adequate to accommodate the future growth of the urban population.
INDIA URBANISATION SCENARIO