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Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
Westside  Model
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Westside Model

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  • 1. WESTSIDE - THE INDIAN RETAILING SUCCESS STORY
    • GROUP 3
    • ANU PRIY VIJ
    • ARCHIT SHANKAR
    • A ARVIND RAO
    • SURBHI CHARLA
    • VEDIKA BURMAN
  • 2. THE WESTSIDE MODEL
    • MARKET RESEARCH
    • RETAIL LAYOUT
    • CUSTOMER FEEDBACK
    • PRODUCT POSITIONING
    • ADVERTISING AND PROMOTIONS
  • 3. MARKET RESEARCH
    • Appreciated importance of MR – conducted before entering new city
    • 5 member in house team
    • Collected information on buying patterns, demand potential,lifestyles etc
    • Support from Tata companies like Taj Group , Titan, Voltas, Tata AIG , Tata Engineering
    • Before entering retail segment conducted research
    • FINDINGS
    • Store owned brands and other brands ratio 30:70
    • Many international retailers stocked only own brands due to more loyalty,flexibility,high returns
    • Heavy investment for brand building and poor economies of scale
    • MR conducted to understand customer behavior to enhance customer loyalty
  • 4. RETAIL LAYOUT
    • 1. PHILOSOPHY & PROBLEMS FACED
    • Sold in house brand only – higher margins, more control over manufacturers(quality,cost), no intermediary costs
    • Expensive real estate – leased shop space
    • Required spacious showrooms in metros : 10000 – 20000 sq ft
    • 2. THE MODEL
    • Free Form Layout/Boutique Layout – fixtures and aisles arranged assymetrically
    • Merchandise displayed at 2 levels on same floor
    • Merchandise in separate clusters eg. Womenswear and accessories clubbed together for convenience
    • 2 main divisions
    • Apparel –mens’ wear,womens’ wear, lingerie, kids wear
    • Product – household, gifts, other accessories
  • 5.
    • 3. SOURCING AND STOCKS
    • Each store on avg stored 30,000 SKU’s of different products
    • Merchandise sourced from 250 exporters from Delhi , Mumbai and Bangalore
    • Centralised buying for all products except cosmetics and perfumes to avoid sales tax
    • Carried 63 days of stock days
  • 6. PRODUCT POSITIONING
    • Positioned as value for money products - good quality, low prices , contemporary and exclusive designs and wide variety
    • Good store ambience – shelves not overloaded
    • Focus on “ I-got-a quality-product-at-a-reasonable-price” feelings
  • 7.
    • WOMENS WEAR
    • Western formals, casuals and ethnic wear
    • Range had great depth
    • Designer clothing introduced
    • KIDS WEAR
    • Sporty and international look
    • Catered to wide age group: infants to teens
    • For girls – Gypsy, Sporty, Guns n Roses line
    • For boys – Skull and Studd lines
    • MENS WEAR
    • Formals, casuals, ethnic, sports wear, party wear
    • Latest styles
    • HOUSEHOLD
    • Towels, bathroom sets etc
    • Well coordinated, allowed mix n match
    • New introductions each week
    • GIFT SECTION
    • Diyas, terracota pots,urns
    • Range of furniture
    • UTILITY
    • In wrought iron and rope : magazine racks, stools, etc
  • 8. PROMOTION AND ADVERTISING
    • Focus on 2 parameters – style and affordability
    • Total advertising spend 8% of sales
    • INHOUSE PROMOTIONS
    • Peaked during summer, diwali and Christmas – “Festival of Delights” program
    • Promotions based on themes – matching decorations , liver bands and other attractions
    • Clubwest Classic and Clubwest Gold
    • EXTERNAL PROMOTIONS
    • Advertising on media - Model Fleur Xavier for advertising contract
  • 9. CUSTOMER FEEDBACK
    • Conducted research to better serve customers
    • Focus on customer feedback
    • Trust in customers reflected confidence in products
  • 10. WHY THEY SHOULD
  • 11. WHY THEY SHOULD
    • Huge financial base – Rs 2 billion from sale of Lakme
    • Increase in Profit carried forward in 2002- from 64.6 to 90.9 million
    • 10 billion dollar untapped market in India
    • Would have a first movers advantage in India
    • Adept at conducting MR – have a good in house team plus understand importance of MR
    • Experience in retail business : established supply chain and trained personnel
    • Could enter food business under a different name to avoid brand dilution for Westside
  • 12. WHY THEY SHOULD
    • Increase in nuclear families
    • Increase in the number of working women .
    • A study on food and grocery retail market by KSA Technopak, food retail sales make up for close to 63 per cent of total retail sales.
    • In absolute terms, food retail sales had grown from Rs 3,81,000 crore in 1996 to Rs 7,03,900 crore in 2001 when the non-food retail sales grew from Rs 2,22,400 crore in 1996, to Rs 4,19,000 crore in 2001. 
  • 13. WHY THEY SHOULDN’T
    • No experience in retail of food items
    • Would need to acquire new competencies eg cold storage
    • May lead to brand dilution for Westside as people associate it with clothes
  • 14.
    • THANK YOU

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