Marketing strategies for unorganized retailers to compete competitively

Retail is sale of goods directly to the consumer in smaller quantities for his own consumption or use. Retailing is categorized either as organized or an unorganized retailing. Organized retailers are usually large retail outlets or chain of outlets and are often franchised. Unorganized retailing is locally owned business on a small scale that lacks standardization and upgraded technology. The term is interchangeably used for unorganized retailing is mom-and-pop shops, independent shops or local stores.

Unlike organized retailing the marketing strategies of unorganized retailing is different. Firstly, they can begin by selecting an appropriate location for their stores that would increase probability of higher number of footfall. Small unorganized retailers should always incorporate marketing strategy through their customer base. Strong customer relationship is the biggest advantage that unorganized retailers can use to generate more sales. Customer loyalty is higher with mom-and-pop shops therefore it is best to reinforce your brand and the quality of products through verbal communication.

Small independent retailers should try to know their customers, their purchase habits, payment mode, lifestyle, preferences and purchase history.

This will enable the retailer to devise better marketing strategies. Taking feedback from them will also help in improving the business.

Variety of products should be provided to the customers. It is best that you include branded products too that would help enhance the store’s image and increase customer footfall. Unorganized retailers should not only aim to provide good quality and variety but aim for better services as well such as credit facility.

Incorporate free home delivery if possible. Unorganized retailers can start initiating the delivery service for loyal customers or elderly people.
Gradually start providing service to all customers with proper implementation of the strategy.

Good relationship with the vendor is also a great marketing strategy for unorganized retailers. The retailers can make full use of the advantage from vendor’s expertise. Having a strong vendor relationship also brings benefits of easy payment conditions, favorable credit and pricing facility.

Small local shops can easily dominate the small area and the near-by neighborhood. Unorganized retailers are basically dependent on word of mouth promotion. This helps build loyalty amongst customers and leads to increase in customer base.