Evolution and Overview of Indian Retail Industry Shopper’s Stop – a premium retail brand ◦ Introduction ◦ Merchandise Hierarchy ◦ SWOT Analysis ◦ Marketing Mix ◦ Segmentation, Target & Positioning ◦ Advertising Strategies ◦ Sales Promotion Strategies
• The Indian retail market is the 5th largest retail destination globally.• Market size in 2012 USD450 Billion, 2015E USD574 Billion• Western outfits & readymade garments has been growing at 40-45% annually; apparel penetration is expected to increase to 30-35% by 2015 More details: http://www.ibef.org
• Founded in 1991, Shoppers Stop Limited is a chain of Retail stores in India owned by K. Raheja Corp• International & Domestic brands across various categories such as apparel, accessories, cosmetics, home & kitchenware as also its own private brands• 177 stores in 18 cities with 3.4 million sq ft space across 8 store formats• Over 2.5 million customers are a part of the first Citizen Loyalty Programme
More details: http://www.ibef.org
STRENGTH WEAKNESS• Good financial position • Operating cost is very high• Loyal Customer Base • Employee Retention• Presence across various segments• Increasing Footfalls and Conversion Rates • Inadequate Promotional Strategies• Well Established Management Team • Investing too much revenue on IT• Systems and Processes OPPORTUNITY THREAT• Geographical Reach • Threat of New Entrants• Preferred Partner for Foreign Players • Competitive Rivalry in the Industry• Private Labels • Economic Slowdown• Enter new segments – consumer goods • Unorganized sector
• Product• Price• Promotion• Place
• Identified the need for and created a suite of brands that reflect Styles, International Class and Fashion• Private Brands have been introduced and developed after a careful analysis of Customer Requirement.Pricing• Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at a High Price.
• Communication Strategy-Reaching out to the customers in their own style and language E.g.- The first Shoppers Stop store in Lucknow was named “Tehzeeb”.• Festive Promotion Campaign “PARIKRAMA” Customers getting opportunity to interact with local artisans.• Organizes major Promotional Events from time to time e.g. “Fly to Santa Land”, “Gear up for the school” and “Salwar Kameez Dupatta Exchange” etc.• Organizes Local Festivals like Durga Puja in Kolkata, Onam in South and Dhanteras in North.
Shoppers Stop Ltd. exudes Class, Comfort, Convenience where ever it is located. Shoppers Stop Ltd. not only concentrates on the location of the stores but also emphasizes on the ambience and service excellence. Shoppers Stop is Indian largest chain of Super Stores with an aggregate acquired area of 11 lakh sq. feet.
Geographic Segmentation• Division of the total market into smaller, relatively homogeneous groups.Psychographic Segmentation• Divides a population into groups that have similar psychological characteristics, values, and lifestyles.• SHOPPERS STOP targets high standard living customers.Demographic Segmentation• SHOPPERS STOP have segmented their respective markets in terms of Age and Sex (e.g. Clothing for Men, Women and Kids)• Segmenting by Income and Expenditure patterns.
Market Specialization The Shoppers Stop concentrates on serving many needs of a particular customer group and in this way the Shopper Stop aims to gain a strong reputation in serving their customers, who belong to the middle and upper class.
Shopper Stop positions itself as a Global premium Retailer outlet. Shoppers’ Stop is positioned as a family store delivering a complete shopping experience.
• PRINT ADVERTISMENTS• MEDIA ADVERTISMENTS• OUTDOOR ADS
• GIFT VOUCHERS• VARIOUS FESTIVE OFFERS• CONTEST• POP MATERIAL
Shoppers Stop offer Gift Vouchersof denominationranging from Rs 250 to Rs 5000.
Shoppers’ Stop entered into agreement with CRY to retail eco-friendly paper bags designed by underprivileged children. The part proceeds from the sale of the bags were donated to project supported by CRY. The Wardrobe Exchange saw tremendous response with 80,000 old garments collected from customers, which were donated to projects of Concern India Foundation.
The name "First Citizen" reflects theircommitment to offering their customersthe ultimate shopping experience As a First Citizen, customers shopping experience becomes even more enjoyable with: •Reward Points for every time you shop at Shoppers Stop. •Exclusive benefits & privileges •Exclusive offers ever so often •Updates on what you can look forward to shop for at Shoppers Stop •Exclusive cash counters at Shoppers Stop so you can spend more time shopping than waiting in a line
The previous packets of ShoppersStop had the previous logo while thenew packets which are being widelydistributed have the companysymbol on it. The company has also brought out collectible shopping bags for selective distribution with different themes and launched the first in the series based on the theme Fashion through Ages.