Retail Store Launch planning & Research


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How to launch a Retail Mass Specialty Store in India ......
Retail Reserach , Location Reasearch

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Retail Store Launch planning & Research

  1. 1. Retail Business Planning Segmentation and Business Alignment
  2. 2. Objective <ul><li>Objective </li></ul><ul><ul><li>A segmentation framework and business alignment plan for setting up customer centric stores in any location </li></ul></ul><ul><li>Methodology </li></ul><ul><ul><li>Study Environment, Competitors and Customers in Mumbai and evolve a generic framework for setting up customer centric stores in any location </li></ul></ul><ul><ul><ul><li>Interviews, secondary research, Competitor Analysis and Customer Survey </li></ul></ul></ul><ul><ul><ul><li>Competitor Analysis and Customer Surveys are specific to a location </li></ul></ul></ul>
  3. 3. What to look for? <ul><li>Competitor characteristics </li></ul><ul><ul><li>Store Look </li></ul></ul><ul><ul><li>Market share </li></ul></ul><ul><ul><li>Store locations </li></ul></ul><ul><ul><li>Store formats </li></ul></ul><ul><ul><li>Pricing levels </li></ul></ul><ul><ul><li>Promotion policies </li></ul></ul><ul><ul><li>Marketing programs </li></ul></ul><ul><li>Demand Patterns </li></ul><ul><li>Special Demand drivers </li></ul><ul><ul><li>School seasons </li></ul></ul><ul><ul><li>Festivals </li></ul></ul><ul><ul><li>Activities and sights </li></ul></ul><ul><ul><ul><li>Beach towns </li></ul></ul></ul><ul><ul><ul><li>Tourist attraction </li></ul></ul></ul><ul><ul><ul><li>Special events </li></ul></ul></ul><ul><ul><ul><li>Religious holidays </li></ul></ul></ul><ul><li>Climate zone </li></ul><ul><ul><li>Temperature </li></ul></ul><ul><ul><li>Precipitation </li></ul></ul><ul><ul><li>Potential weather events </li></ul></ul><ul><li>Geodemographics and attitudes </li></ul><ul><ul><li>Population density </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Marital Status </li></ul></ul><ul><ul><li>Ethnicity </li></ul></ul><ul><ul><li>Religion </li></ul></ul><ul><ul><li>Lifecycle segment </li></ul></ul><ul><ul><li>Psychographic </li></ul></ul><ul><li>Our Own store (Reliance Retail) Characteristics </li></ul><ul><ul><li>Our market share </li></ul></ul><ul><ul><li>Our store locations </li></ul></ul><ul><ul><ul><li>Location characteristics </li></ul></ul></ul><ul><ul><ul><li>Site quality ratings </li></ul></ul></ul><ul><ul><li>Our store formats </li></ul></ul><ul><ul><ul><li>Sizes </li></ul></ul></ul><ul><ul><ul><li>Design types </li></ul></ul></ul><ul><ul><ul><li>Square footage allocation </li></ul></ul></ul><ul><ul><ul><li>Special fixtures and displays </li></ul></ul></ul><ul><ul><ul><li>Merchandise placements </li></ul></ul></ul><ul><ul><li>Stores of our sister divisions </li></ul></ul>Green – Work finished Yellow – Work in Progress Red – Future work
  4. 4. Localized Offering <ul><li>Branding </li></ul><ul><ul><li>Store (Banner names) </li></ul></ul><ul><ul><li>Product labels </li></ul></ul><ul><ul><ul><li>Vendor Brands </li></ul></ul></ul><ul><ul><ul><li>Private Brands </li></ul></ul></ul><ul><li>Store formats </li></ul><ul><ul><li>Size and layout </li></ul></ul><ul><ul><li>Store design type </li></ul></ul><ul><li>Merchandise space and assortment </li></ul><ul><ul><li>Attributes </li></ul></ul><ul><ul><ul><li>Style and flavor </li></ul></ul></ul><ul><ul><ul><li>Color </li></ul></ul></ul><ul><ul><ul><li>Size </li></ul></ul></ul><ul><ul><ul><li>Good/better/best range </li></ul></ul></ul><ul><ul><ul><li>Pack counts </li></ul></ul></ul><ul><ul><ul><li>Packaging design </li></ul></ul></ul><ul><li>Pricing </li></ul><ul><ul><li>Everyday low vs High Low Policies </li></ul></ul><ul><ul><li>Ranges </li></ul></ul><ul><ul><li>Points </li></ul></ul><ul><li>Promotions </li></ul><ul><ul><li>Types </li></ul></ul><ul><ul><li>Temporary price reduction levels </li></ul></ul><ul><ul><li>In-store displays </li></ul></ul><ul><li>Vendor Policies </li></ul><ul><ul><li>Information sharing </li></ul></ul><ul><ul><li>Expense sharing </li></ul></ul><ul><ul><li>Product collaboration </li></ul></ul><ul><li>Marketing Programs </li></ul><ul><ul><li>Spending levels </li></ul></ul><ul><ul><li>Media Mix </li></ul></ul><ul><ul><li>Major messages </li></ul></ul><ul><li>Store service levels </li></ul><ul><ul><li>Store hours </li></ul></ul><ul><ul><li>Labor quality and schedules </li></ul></ul><ul><ul><li>Delivery policies </li></ul></ul><ul><ul><li>Vendor services </li></ul></ul><ul><ul><li>Direct store delivery </li></ul></ul><ul><ul><li>Replenishment and stocking </li></ul></ul><ul><ul><li>Customer education </li></ul></ul><ul><ul><li>Finance options to customers </li></ul></ul><ul><ul><li>Sales person appearance/ interaction </li></ul></ul><ul><li>Operating Policies </li></ul><ul><ul><li>Inventory levels </li></ul></ul><ul><ul><li>Sourcing strategies </li></ul></ul><ul><ul><li>Shrink controls </li></ul></ul><ul><ul><li>Information sharing </li></ul></ul>
  5. 5. Methodology Adopted <ul><li>Understand the environment </li></ul><ul><ul><li>Is there a sizeable market? </li></ul></ul><ul><ul><li>How far are the customers willing to travel? ( Catchment area) </li></ul></ul><ul><ul><li>What are we going to sell? </li></ul></ul><ul><ul><li>How are they suited to this area? </li></ul></ul><ul><ul><li>Can we do it? </li></ul></ul><ul><li>Identify competition </li></ul><ul><ul><li>What is their strength/ Weakness? What did the customer like about them? </li></ul></ul><ul><ul><li>How and where can we give a better offering to the customer? </li></ul></ul><ul><ul><li>Can we do it differently? </li></ul></ul><ul><li>Identify the right customer </li></ul><ul><ul><li>Segmentation </li></ul></ul><ul><ul><ul><li>Identifiable </li></ul></ul></ul><ul><ul><ul><li>Profitable </li></ul></ul></ul><ul><li>Set up a customer centric store </li></ul><ul><li>Exit the competition </li></ul>
  6. 6. Work done so far 1. Catchment Area 2. Mumbai Environment study 3. Competitive Intelligence 4. Customer Survey in Mumbai
  7. 7. Catchment Area - definition <ul><li>Catchment area (Travel time, Amount spent) </li></ul><ul><ul><li>For Mumbai </li></ul></ul><ul><ul><ul><li>Max Distance willing to travel </li></ul></ul></ul><ul><ul><ul><ul><li>5- 10 Km </li></ul></ul></ul></ul><ul><ul><ul><li>Travel time to reach a store </li></ul></ul></ul><ul><ul><ul><ul><li>< 30 mnts </li></ul></ul></ul></ul><ul><ul><ul><li>Amount spent on travel </li></ul></ul></ul><ul><ul><ul><ul><li>< Rs. 50 per person </li></ul></ul></ul></ul><ul><li>Area increases depending on </li></ul><ul><ul><li>Product Value </li></ul></ul><ul><ul><ul><li>People willing to travel more to buy high valued product </li></ul></ul></ul><ul><ul><li>Store Brand </li></ul></ul><ul><ul><ul><li>People willing to travel more to visit a branded retailer </li></ul></ul></ul><ul><li>Catchment Area changes from city to city depending on </li></ul><ul><ul><li>Mode of transport available </li></ul></ul><ul><ul><li>People in the city </li></ul></ul><ul><ul><li>Value provided by the competitor stores and their location </li></ul></ul>
  8. 8. However, these factors also come in.. <ul><li>When will a store get out of consideration set? </li></ul><ul><li>Bad previous experience </li></ul><ul><li>Inconvenient access </li></ul><ul><li>to the store </li></ul><ul><li>Negative Word of Mouth </li></ul><ul><li>No parking space </li></ul><ul><li>Long waiting time for billing </li></ul><ul><li>Look of the store </li></ul><ul><li>Difficult to get cabs/transport etc. </li></ul><ul><li>Loyal to some other store </li></ul><ul><li>Debit/credit card acceptance </li></ul><ul><li>Number of other </li></ul><ul><li>similar stores nearby (offering a better value) </li></ul><ul><li>Price Perception of the store </li></ul><ul><li>Quality Perceptions of the store </li></ul><ul><li>Product availability perceptions of the store Inconvenient Store timings </li></ul><ul><li>When will a store get into consideration set? </li></ul><ul><li>Store related </li></ul><ul><ul><li>Size of the outlet </li></ul></ul><ul><ul><li>Convenience of Location </li></ul></ul><ul><ul><li>Store timings </li></ul></ul><ul><ul><li>Ambience of the store </li></ul></ul><ul><ul><li>Parking space </li></ul></ul><ul><ul><li>Recreation </li></ul></ul><ul><ul><li>Speciality store </li></ul></ul><ul><ul><li>Company showroom </li></ul></ul><ul><ul><li>Availability of food outlets in the store </li></ul></ul><ul><li>Product related </li></ul><ul><ul><li>Product range (brands availability) </li></ul></ul><ul><ul><li>Exclusive products </li></ul></ul><ul><ul><li>Product experience within the outlet </li></ul></ul><ul><ul><li>Warranty/ Guarantee being offered by the outlet </li></ul></ul><ul><li>Price Related </li></ul><ul><li>Discounts offered </li></ul><ul><li>Promotions offered </li></ul><ul><li>Lowest price </li></ul><ul><li>Finance options </li></ul><ul><li>Perceptions related </li></ul><ul><li>Positive word of mouth </li></ul><ul><li>Product availability perception </li></ul><ul><li>Quality of product perception </li></ul><ul><li>Service Related </li></ul><ul><li>Pre purchase </li></ul><ul><ul><li>Familiar with shop keepers </li></ul></ul><ul><ul><li>Knowledge of the sales person </li></ul></ul><ul><ul><li>Selling ability of the sales person </li></ul></ul><ul><ul><li>Waiting period before being attended to </li></ul></ul><ul><li>Post purchase: </li></ul><ul><ul><li>Prompt delivery of the product </li></ul></ul><ul><ul><li>Installation of the product </li></ul></ul><ul><ul><li>Repairs handling is good </li></ul></ul><ul><ul><li>Efficiency in responding to complaint </li></ul></ul><ul><ul><li>Demonstration of the product at home </li></ul></ul><ul><ul><li>Keeping up the sales assurance like giving </li></ul></ul><ul><ul><li>the discount/ scheme offered </li></ul></ul>
  9. 9. Areas selected <ul><li>NSO must be atleast five stores to cover entire Mumbai market </li></ul><ul><li>A1- The Officer’s Area </li></ul><ul><ul><li>Super Rich Locality </li></ul></ul><ul><ul><li>Office area </li></ul></ul><ul><li>A2 – The Ignored Area </li></ul><ul><ul><li>Above Avg Locality </li></ul></ul><ul><ul><li>Fastest growing area </li></ul></ul><ul><ul><li>A2 is outside catchment area of competitors </li></ul></ul><ul><li>A3 – The Mature Area </li></ul><ul><ul><li>Rich Households Area </li></ul></ul><ul><ul><li>Too much competition </li></ul></ul><ul><li>A4 – The Far Area </li></ul><ul><ul><li>Average Households area </li></ul></ul><ul><ul><li>Far from the main city </li></ul></ul><ul><li>A5 – The New Area </li></ul><ul><ul><li>Below average households area </li></ul></ul><ul><ul><li>Less competition </li></ul></ul><ul><ul><li>Upcoming area </li></ul></ul>A1 A2 A3 A4 A5
  10. 10. Resources <ul><li>Lease/Rental rates classification ( Property rates and rental rates followed same trend) </li></ul><ul><ul><li>For 1 BHK unfurnished </li></ul></ul>Type Rental Range pm in Rs. Super Rich 30,000 > Rich 20,000 – 30,000 Above Avg Households 12,000- 20,000 Average Households 5,000 – 12,000 Ordinary Households 1,000- 5,000
  11. 11. Environment <ul><li>Assumptions: </li></ul><ul><li>Vijay Sales Revenue breakup same as Mumbai market break up for CDIT products ( Revenue breakup figures are approximate and are provided by an experienced salesman at Vijay sales) </li></ul><ul><li>Brand penetration in India is same as that in Mumbai </li></ul><ul><li>Source for brand penetration in India – Hansa Research, Figures for 2005-06 </li></ul>
  12. 12. Demographics Total Mumbai Population = 16,368,000 Mumbai has All India Rank #1 in MPV Unskilled Worker 8.4 Skilled worker 11.1 Petty Trader 5.8 Shop Owner 3.7 Businessman/Industrialist 2 Self Employed Professional 0.7 Clerk/Salesman 6.8 Supervisory Level 2.2 Officer/Executive Junior 2.6 Officer/Executive Middle/Senior 1.5 Not Working 33.9 Student 17.4 Retired 3.8
  13. 13. Communities Hindu Communities <ul><li>Maharastrians </li></ul><ul><li>Gujaratis </li></ul><ul><li>Punjabis </li></ul><ul><li>Marwaris </li></ul><ul><li>South Indians </li></ul><ul><li>UP/Biharites </li></ul>
  14. 14. Environment <ul><li>People live in apartments </li></ul><ul><ul><li>“ Our bathrooms are small – we don’t need large appliances in our bathroom” </li></ul></ul><ul><ul><li>“ Deliver it to me fast. I stay in Navi Mumbai. Sunday is the only holiday for me and Local trains don’t run on sundays most of the time” </li></ul></ul><ul><ul><li>“ When you get bayi (Servant maid) for Rs. 200, why will I need a washing machine?” </li></ul></ul><ul><ul><li>“ Because of this sea, most of our electronic gadgets get spoiled soon” </li></ul></ul><ul><ul><li>“ Without A/C you can’t survive in Mumbai” </li></ul></ul><ul><ul><li>“ Ganesh Chaturdi is our festival” </li></ul></ul><ul><ul><ul><ul><ul><li>(To be continued in the presentation…. ….) </li></ul></ul></ul></ul></ul>
  15. 15. Competitive Intelligence
  16. 16. Competition Intelligence <ul><li>Who are the competitors ? </li></ul><ul><ul><li>Average Store size > 3000 sq. feet </li></ul></ul><ul><ul><li>Multi brand or Single Brand ( At least one of the top 5 in the respective category) </li></ul></ul><ul><ul><li>Multiple stores or Top vendor franchise/ single brand store or a Hypermall (with CDIT products) </li></ul></ul><ul><li>Where are they? </li></ul>
  17. 17. Competition <ul><li>Vijay Sales (12) </li></ul>Sumaria(7) Sony Mony (6 ) Sony World (4) Hyper city Bose (2)
  18. 18. Store Comparisons Research Method: Fixed sum scoring for each parametre. Then avg is taken and rounded off Sampling method: Random non-CDIT team in office Sample size: 25 Store       Reach 30   Store timings 20   Store Size 20   Look/feel of the store (store experience) 20   Space to move 10 Total 100 Products       Categories 15   Depth 20   Width 20   Exclusive deals with vendors 20   Private Labels 10   Latest products/ Unique products 15 Total 100 Price       Offers/discounts 50   Clarity in Pricing strategy 30   Financing 20 Total 100 Customer Service     Receiving the customer 5   Finding customer requirements 15   Product comparisons 15   Assisting the customer/answering queries 15   Delivery 15   Packaging 5   Installation 15   Service Network 10   After sales service 20   CRM intiatives 10 Total 125
  19. 19. Store Comparisons Research Method: Fixed sum scoring for each parametre. Then avg is taken and rounded off Sampling method: Random non-CDIT team in office Sample size: 25 Sales Personnel       Product knowledge 50   Customer friendliness 35   Staff grooming 15 Total 100 Merchandising       Arrangement logic 35   Convenience to the customer 15 Total 50 Localisations       Local Products 20   Local Services 30   Local Promotions 30   Store features localisation 20 Total 100 Marketing       Exchange offers 40   Promotions 30   Advertisements 30 Total 100 Customers       focus on Target segment 100 Total 100 Brand       Store Brand Awareness 50 Grand Score 925
  20. 20. <ul><li>To be supported by </li></ul><ul><li>Footfalls </li></ul><ul><li>Footfall Conversions </li></ul><ul><li>Net Sales </li></ul><ul><li>Gross Margins </li></ul>
  21. 21. <ul><li>Key Strengths </li></ul><ul><ul><li>Wide range of products </li></ul></ul><ul><ul><li>Exclusive deals with few vendors </li></ul></ul><ul><ul><li>Standardized prices for all products in all locations </li></ul></ul><ul><ul><li>Lowest standardized prices </li></ul></ul><ul><ul><li>10 stores – wide reach </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Poor in-store service </li></ul></ul><ul><ul><ul><li>Customers not addressed on entry </li></ul></ul></ul><ul><ul><li>No deals with few vendors like Voltas </li></ul></ul><ul><ul><li>No in-store promotions </li></ul></ul><ul><ul><li>Poor delivery </li></ul></ul><ul><ul><ul><li>In new Mumbai, delivery only on tue and Fri </li></ul></ul></ul><ul><ul><li>Store timings </li></ul></ul><ul><ul><ul><li>10:30 AM to 8:30 PM </li></ul></ul></ul>Wide Range of Products Wide Reach Exclusive deals with vendors In-store service Store timings Delivery
  22. 22. Lessons from Vijay Sales <ul><li>Wide Range of Products </li></ul><ul><ul><li>Have IT products category in the store </li></ul></ul><ul><ul><li>Have wide range of brands in the most visible categories like TV, Music Systems, Refrigerators, Washing machines and A/C </li></ul></ul><ul><li>Wide Reach </li></ul><ul><ul><li>Have at least 5 stores in Mumbai </li></ul></ul><ul><li>Exclusive deals with top Vendors </li></ul><ul><ul><li>Have exclusive product deals with top vendors in each category (e.g: Exclusive Nokia mobile phones in RR stores) </li></ul></ul><ul><li>In-store customer service </li></ul><ul><ul><li>Receive customers when they enter the store (offer water etc.) </li></ul></ul><ul><ul><li>Engage them with (make them use and experience) the products by providing all the relevant information </li></ul></ul><ul><ul><li>Automate information/ product comparisons etc. wherever possible </li></ul></ul><ul><li>Prompt delivery all over Mumbai </li></ul><ul><ul><li>Delivery should be made on the same day even in Navi Mumbai </li></ul></ul><ul><li>Store timings </li></ul><ul><ul><li>Keep the store open till 10:30 PM in certain locations </li></ul></ul>
  23. 23. <ul><li>Key Strengths </li></ul><ul><ul><li>Excellent in-store customer service </li></ul></ul><ul><ul><ul><li>Greeting the customer </li></ul></ul></ul><ul><ul><ul><li>Product comparisons </li></ul></ul></ul><ul><ul><li>Bargaining is possible </li></ul></ul><ul><ul><li>Localizations </li></ul></ul><ul><ul><ul><li>Store timings </li></ul></ul></ul><ul><ul><ul><li>Prices </li></ul></ul></ul><ul><ul><li>Exchange offers </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Lacking in product assortment </li></ul></ul><ul><ul><li>Stores located very close to Vijay sales </li></ul></ul><ul><ul><ul><li>Vijay sales has better product assortment </li></ul></ul></ul><ul><ul><ul><li>Vijay sales offers better prices </li></ul></ul></ul>In-store Customer Service Localizations
  24. 24. Lessons from Sumaria <ul><li>In-store customer service </li></ul><ul><ul><li>Receive the customer </li></ul></ul><ul><ul><li>Understand his requirements </li></ul></ul><ul><ul><li>Automate information/ product comparisons etc. wherever possible </li></ul></ul><ul><ul><li>Engage customers with the products – (make them use it) </li></ul></ul><ul><li>Localizations </li></ul><ul><ul><li>Keep store timings according to locality (e.g: Store in Vashi to be opened till 10 PM) </li></ul></ul><ul><ul><li>Promotions specific to localities should be made </li></ul></ul><ul><ul><ul><li>E.g. Exchange offers in South Mumbai store </li></ul></ul></ul><ul><ul><ul><li>Price discounts in Navi Mumbai store </li></ul></ul></ul>
  25. 25. Sony World <ul><li>Key Strengths </li></ul><ul><ul><li>Store experience </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><ul><li>World cup offers </li></ul></ul></ul><ul><ul><li>Bargaining possibility </li></ul></ul><ul><ul><li>After sales service </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Independent franchise operations </li></ul></ul><ul><ul><ul><li>Competing instead of coordinating </li></ul></ul></ul><ul><ul><li>Lack of sales staff – poor in-store service </li></ul></ul><ul><ul><li>Product range is not easily noticeable </li></ul></ul><ul><ul><li>Prices are not low compared to same products in Vijay sales </li></ul></ul><ul><ul><li>Poor delivery </li></ul></ul>After Sales Service Store Experience Trained Sales Staff
  26. 26. Lessons for Sony World <ul><li>After Sales Service </li></ul><ul><ul><li>Have certified multi-vendor in-store service personnel </li></ul></ul><ul><li>Store Experience </li></ul><ul><ul><li>Have demo rooms for home theatre </li></ul></ul><ul><ul><li>Have place to sit and watch TVs </li></ul></ul><ul><ul><li>Have a sophisticated automated system of comparing products </li></ul></ul>
  27. 27. <ul><li>Key Strengths </li></ul><ul><ul><li>Store experience </li></ul></ul><ul><ul><ul><li>Demonstration rooms etc. </li></ul></ul></ul><ul><ul><li>Hypermarket – widest range of products </li></ul></ul><ul><ul><li>In-store service </li></ul></ul><ul><ul><li>Lowest prices ( can compete with Vijay sales) </li></ul></ul><ul><ul><li>Private brands </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Location </li></ul></ul><ul><ul><ul><li>Very far from city </li></ul></ul></ul><ul><ul><li>Poor delivery </li></ul></ul><ul><ul><ul><li>Delivery from Borivali to Bandra only </li></ul></ul></ul>Private Brands Store Experience Store Reach
  28. 28. Lessons from Hypercity <ul><li>Private Labels </li></ul><ul><ul><li>Have ‘Low price’ private brands in store </li></ul></ul><ul><li>Better accessibility </li></ul><ul><ul><li>Synergy between specialty stores and hypermarket </li></ul></ul><ul><ul><li>Have at least 5 stores in Mumbai </li></ul></ul><ul><li>Store Experience </li></ul><ul><ul><li>Have demo rooms for home theatre </li></ul></ul><ul><ul><li>Have place to sit and watch TVs </li></ul></ul>
  29. 29. The Bose Store <ul><li>Key Strengths </li></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Store experience </li></ul></ul><ul><ul><li>Customer Service </li></ul></ul><ul><ul><ul><li>In-store </li></ul></ul></ul><ul><ul><ul><li>After sales </li></ul></ul></ul><ul><ul><ul><li>CRM </li></ul></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Targeting a niche segment </li></ul></ul>Products Store Experience CRM
  30. 30. Lessons from Bose Store <ul><li>Keep high tech- high end products in a separate section in-store and create an experience zone </li></ul><ul><li>CRM initiatives </li></ul><ul><ul><li>Maintain database of customers </li></ul></ul><ul><ul><li>Upgrade the customers by constantly getting in touch with them </li></ul></ul>
  31. 31. Sony Mony <ul><li>Key Strengths </li></ul><ul><ul><li>Locations </li></ul></ul><ul><ul><ul><li>Accessibility </li></ul></ul></ul><ul><ul><li>No jazz store </li></ul></ul><ul><ul><ul><li>Gives the feeling that it is for middle class ( except for the store in Andheri) </li></ul></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Poor in-store customer service </li></ul></ul><ul><ul><ul><li>Sales force not well trained </li></ul></ul></ul><ul><ul><ul><li>Customers can’t easily identify sales personnel </li></ul></ul></ul><ul><ul><li>Poor store experience </li></ul></ul><ul><ul><li>Poor product range </li></ul></ul>
  32. 32. Price Perception Product Range Price Low High Prices compared for 21’’ TVs. Product range is customer’s perception For Sony World, Prices of 21’’ Sony TVs are compared. Product range for Sony World is just the perception of customers Bose’s product range and prices are just perceptions of customers Sample size = 30 Low High Hypercity Vijay Sales Sumaria Sony Mony Sony World Bose Reliance
  33. 33. Instore Customer Service Perception Product Range In store Customer Service Bose Low High Low High Vijay Sales Sony World Sony Mony Hypercity Sumaria Reliance Sample size = 30
  34. 34. Localizations Perception Localizations Number of Stores in Mumbai Bose Low High Low High Hypercity Sumaria Sony World Sony Mony Vijay Sales Reliance Sample size = 30
  35. 35. Delivery <ul><li>Vijay Sales delivers only on Tuesdays and Fridays in New Mumbai </li></ul><ul><li>Hypercity delivers only in – Bandra to Borivali </li></ul><ul><li>Sumaria takes two days to deliver </li></ul><ul><li>Sony Mony takes two days – no delivery in New Mumbai </li></ul><ul><li>Sony world – doesn’t let other franchises to deliver </li></ul>Time to deliver Area Covered Vijay Sales Sumaria Hypercity Sony Mony Sony World
  36. 36. Segmentation
  37. 37. How does Customer Centricity work? RESOURCES Values, Beliefs, Attitudes, Lifestyle Needs/Wants Effort to satisfy need/Want Merchandise Store Experience + Service Buying Behaviour Expectations from product/store Customer Centricity PERSONALITY Willingness to spend Products already Owned Products willing to buy Demographics
  38. 38. Customer Profile Age Occupation Income Gender Education Family Values/ Attitudes/ Life Style Personality Type <ul><li>What is his Buying Power? </li></ul><ul><li>What is his willingness to Buy? </li></ul><ul><li>What products does he own? </li></ul><ul><li>What Products is he willing to Buy? </li></ul><ul><li>Brand Awareness? </li></ul><ul><li>How does he make his consideration set for the store to visit? </li></ul><ul><li>What is his willingness to buy from a store? </li></ul><ul><li>How will he search and evaluate a store/ product? </li></ul><ul><li>Who influences his decision to buy? </li></ul><ul><li>Expectations from the store? </li></ul><ul><li>Expectations from the sales person? </li></ul><ul><li>After Sales Service Expectation? </li></ul>A Questionnaire was designed based on this
  39. 39. VALS Innovators (A1) Ideals Achievement Self Expression Thinkers (A2) Believers (A3) Achievers (A4) Strivers (A5) Experiencers (A6) Makers (A7) Strugglers (A8) Active consumers – frequent readers of wide variety of publications Express their taste Receptive to new technology,products High Resources High Innovation Low Resources Low Innovation Little interest in image or prestige Mature/ Satisfied and comfortable Actively seek out info in decision making process Conservative and Practical Look for durability, functionality and value in the products that they buy Conservative -Slow to change habits Follow established routine Look for bargains Choose familiar products and established brands Deep commitment to career and family Value consensus, predictability/stability Interested in saving time Many wants and needs – variety of products Follow fashion and fads Spend much of time in socialising Buy on impulse Attend to advertising Concerned about opinions &approval of others Image conscious – emulate purchases of people with greater material wealth Carry credit balances Spend on clothing and personal care Shop for comfort, durability and value Unimpressed by luxuries Suspicious to new ideas/large institutions Brand Loyal Trust advertising Discounts/use coupons
  40. 40. Personality The Perfectionist (P1) The Helper (P2) The Achiever (P3) The Romantic (P4) The Observer (P5) The Questioner (P6) The Adventurer (P7) The Asserter (P8) The Peacemaker (P9) Realistic and principled Live upto expectations of parents/ teachers Take too much responsibility Warm & sensitive to other people’s needs. Relate easily to people and make friends. Suppress real fealings and never say no Energetic and Goal Oriented.Stays informed, knows what is going on. Struggles between wanting to spend time with family and achieve success at work Very sensitive Admire what is noble and beautiful in life Have high aesthetic sense Appreciate creativity Have a need for knowledge.Are introverted, analytical and insightful.Spend a lot of time alone reading, making collections and so on Need reassurance that everything is ok. Faithful to family and friends. A non-connfromsit.Procrastinate because of fear of failure Energetic, Lively and Optimistic. Don’t like to be told what to do.Spontaneous and free spirited Direct and self confident. Courageous, straight forward and honest. Never forgets injuries or insults Attack verbally or physically when provoked Able to relax and have a good time.Non-judgemental, confused about what they really want.Not taken by others seriously. Like to be asked questions to get things clear for themselves
  41. 41. What he does with what he has? What type of person is he? P1 P2 P3 P4 P5 P7 P6 P9 P8 A1 A3 A2 A5 A4 A7 A6 A8 [ Store features + Services expectation ] What Products he buys Pawan Senthil Rakhi Vikram Jain
  42. 42. Examples <ul><li>Pawan’s Psyche (A1-P2,Innovator, Helper) </li></ul><ul><ul><ul><li>Male, 32+, Married </li></ul></ul></ul><ul><ul><ul><li>Rich, Middle management </li></ul></ul></ul><ul><ul><ul><li>Relates easily to people and makes friends </li></ul></ul></ul><ul><ul><li>What he needs? </li></ul></ul><ul><ul><ul><li>Products </li></ul></ul></ul><ul><ul><ul><ul><li>Cutting edge technology products </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Well informed about advances in technology. Prefers brands that will make him the best </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If the benefits are clear to him, he will buy. He is willing to pay a premium </li></ul></ul></ul></ul><ul><ul><ul><li>Services </li></ul></ul></ul><ul><ul><ul><ul><li>He hates wasting time </li></ul></ul></ul></ul><ul><ul><ul><ul><li>He needs end-to-end service in one place </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sales personnel should speak technology </li></ul></ul></ul></ul><ul><ul><ul><li>Store Experience </li></ul></ul></ul><ul><ul><ul><ul><li>His friends should recommend this store. He has a great network of friends </li></ul></ul></ul></ul><ul><ul><ul><ul><li>He should be respected when he enters the store </li></ul></ul></ul></ul><ul><ul><ul><ul><li>He should see the latest technology products everywhere in the store </li></ul></ul></ul></ul><ul><li>Rakhi’s Psyche (A6-P4, Experiencer, Romantic) </li></ul><ul><ul><ul><li>Girl, 26+, Single, Earning </li></ul></ul></ul><ul><ul><ul><li>Fashion Freak </li></ul></ul></ul><ul><ul><ul><li>Buys on Impulse </li></ul></ul></ul><ul><ul><ul><li>Very sensitive </li></ul></ul></ul><ul><ul><li>What she wants? </li></ul></ul><ul><ul><ul><li>Products </li></ul></ul></ul><ul><ul><ul><ul><li>Aesthetically appealing products </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gives importance to looks more than functionality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Latest good looking gadgets – need not be the best </li></ul></ul></ul></ul><ul><ul><ul><li>Services </li></ul></ul></ul><ul><ul><ul><ul><li>Personal attention in store </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Don’t expect afteer sales service. If the product is bad, she will throw it and buy a new one. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sales personnel should be young and energetic </li></ul></ul></ul></ul><ul><ul><ul><li>Store experience </li></ul></ul></ul><ul><ul><ul><ul><li>Store should be located in a posh locality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Store need not be very big but should have good looks </li></ul></ul></ul></ul>
  43. 43. Examples <ul><li>Vikram Jain’s Profile (A2-P8, Thinker-Asserter) </li></ul><ul><ul><ul><li>Male, 35+, Business man </li></ul></ul></ul><ul><ul><ul><li>Upper middle class </li></ul></ul></ul><ul><ul><ul><li>Conservative and Practical </li></ul></ul></ul><ul><ul><ul><li>Courageous and straight forward </li></ul></ul></ul><ul><ul><li>What he wants? </li></ul></ul><ul><ul><ul><li>Products </li></ul></ul></ul><ul><ul><ul><ul><li>Products with durability, functionality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Private brands </li></ul></ul></ul></ul><ul><ul><ul><li>Services </li></ul></ul></ul><ul><ul><ul><ul><li>Never forgets injury or insult </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If anything goes wrong, doesnot hesitate to verbally attack </li></ul></ul></ul></ul><ul><ul><ul><li>Store Experience </li></ul></ul></ul><ul><ul><ul><ul><li>Doesn’t care about how it looks </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Looks for value for money products. Doesn’t trust big stores </li></ul></ul></ul></ul>
  44. 44. Customer Survey South Mumbai Powai Andheri (W) Navi Mumbai
  45. 45. South Mumbai Walkeshwar Malabar Hill Nepean Sea Road Peddar Rd Breach Candy Area Areas covered
  46. 46. Methodology <ul><li>Drawing inference by observing the property and locality (Property Watch) </li></ul><ul><ul><ul><li>Type of cars owned </li></ul></ul></ul><ul><ul><ul><li>Look of apartments/ bunglahs etc. </li></ul></ul></ul><ul><li>Questionnaire/ Discussions with the customers </li></ul><ul><li>Observe/talk to customers entering the competitor store within the catchment area </li></ul><ul><li>Questions asked </li></ul><ul><ul><li>Occupation, Family composition </li></ul></ul><ul><ul><li>What CDIT products do you own? Where did you buy this from? </li></ul></ul><ul><ul><li>How much are you willing to pay for a TV that has all the features that you wish? </li></ul></ul><ul><ul><li>What do you value in the products that you buy? </li></ul></ul><ul><ul><li>Expectations from the store </li></ul></ul><ul><ul><li>Expectations from sales person </li></ul></ul><ul><ul><li>Brand recall for TV/Refrigerator/AC/Washing Machine </li></ul></ul>
  47. 47. Property Watch <ul><li>Walkeshwar </li></ul><ul><ul><li>High class residential area ( Bunglahs and Apartments) </li></ul></ul><ul><ul><li>Fully furnished rented flats ( already have AC/Refrigerator/TV) </li></ul></ul><ul><ul><li>Top range cars (most of them have drivers too) </li></ul></ul><ul><ul><li>Dominated by Maharastrians/ People from Western India </li></ul></ul><ul><ul><li>No shopping areas ( should go to Nepeansea Road) </li></ul></ul><ul><li>Nepeansea Road </li></ul><ul><ul><li>Huge Apartments (10) on either side of the road </li></ul></ul><ul><ul><li>Closest shopping area – Mukesh Chowk ( No consumer durables shop) </li></ul></ul><ul><ul><li>A/C demand estimation near Mukesh Chowk </li></ul></ul><ul><ul><ul><li>In an apartment ( Varsha – S7 B) facing Mukesh Chowk bus stop </li></ul></ul></ul><ul><ul><ul><ul><li>4 rooms*16 floors = 64 rooms </li></ul></ul></ul></ul><ul><ul><ul><ul><li>21 rooms had A/C </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Approximately 68% of the rooms yet to have A/C </li></ul></ul></ul></ul><ul><ul><li>Jain dominated area </li></ul></ul><ul><li>Malabar Hill </li></ul><ul><ul><li>High class large residential area ( Bunglahs and Large Apartments) </li></ul></ul><ul><ul><li>Top range cars </li></ul></ul><ul><ul><li>Christian dominated area ( most of the apartments there have christian names) </li></ul></ul><ul><li>Breach Candy </li></ul><ul><ul><li>Sea facing expensive apartments </li></ul></ul><ul><ul><li>Highly localised AEON stores </li></ul></ul><ul><li>Peddar Road </li></ul><ul><ul><li>Mansions </li></ul></ul><ul><ul><li>Vama stores </li></ul></ul><ul><ul><li>Vijay Sales ads everywhere </li></ul></ul>The Super Rich stay in South Mumbai
  48. 48. Customers <ul><li>SEC A+, Executives, already own TV/Refrigerator/AC/Washing Machines </li></ul><ul><li>Want to buy LCDs/Plasma, high end home theatre systems </li></ul><ul><li>Few don’t have split A/Cs and Window A/Cs ( 68% in Napeansea Rd) </li></ul><ul><li>Top three expectations from the products </li></ul><ul><ul><li>Brand </li></ul></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><li>Want ATM in the store, but don’t expect food court, gaming zone, internet café </li></ul><ul><li>More concerned about looks of the store ( Proper lighting, space to sit are hygiene factors) </li></ul><ul><li>Sales person must demonstrate the features of the product, should respect and give individual attention when in store </li></ul><ul><li>They have their own cars - don’t mind traveling for 30-45 mns to reach the store </li></ul><ul><li>Now going to Opera house (Vijay Sales, Sony Mony) for consumer durables. People bought from Sony World on Warden road </li></ul><ul><li>Top recalled brands – LG & Sony </li></ul>Number of Segments Identified = 1 Name = The Rich Households <ul><li>No. of people met </li></ul><ul><ul><li>Walkeshwar (5) </li></ul></ul><ul><ul><li>Malabar Hill (4) </li></ul></ul><ul><ul><li>Nepean Sea Road (5) </li></ul></ul><ul><ul><li>Peddar Rd (3) </li></ul></ul><ul><ul><li>Breach Candy (4) </li></ul></ul>
  49. 49. Competitors <ul><li>AEON store near Breach Candy </li></ul><ul><ul><li>Good example for customer centric store </li></ul></ul><ul><ul><li>Specialist store for LCD/Plasma, high end home theatre/cinema </li></ul></ul><ul><ul><li>Small store (< 800 sq. feet) </li></ul></ul><ul><ul><li>Great Store Ambience </li></ul></ul><ul><li>Sony World on Wadala Road </li></ul><ul><li>Vijay Sales in Opera House </li></ul><ul><li>Sumaria in Churni Road </li></ul>
  50. 50. Powai Powai Hiranandani IIT Ghatkopar Vikroli Areas Covered
  51. 51. Segments Identified <ul><li>Youngsters </li></ul><ul><ul><li>Age (21-27) yrs, Male/Female </li></ul></ul><ul><ul><li>Students or working in call centres </li></ul></ul><ul><ul><li>Hangout destination ( Hakone Entertainment Centre is their favorite) </li></ul></ul><ul><ul><li>Aware of top brands </li></ul></ul><ul><ul><li>Want I pods/mp3 players and mobile phones </li></ul></ul><ul><ul><li>Parents take their inputs while buying consumer durables </li></ul></ul><ul><ul><li>Live in hostels or in Andheri, Ghatkopar </li></ul></ul><ul><li>The Rich </li></ul><ul><ul><li>Live in Apartments in Hiranandani </li></ul></ul><ul><ul><li>Executives </li></ul></ul><ul><ul><li>Go to Mulund for buying consumer durables </li></ul></ul><ul><li>The Middle Class </li></ul><ul><ul><li>Buy TV and Refrigerators from Maharastra Electronics in Powai or in Ghatkopar </li></ul></ul><ul><ul><li>Want consumer durables with basic features and lowest price </li></ul></ul><ul><li>The IITians </li></ul><ul><ul><li>Currently buying laptops and desktops from single brand (local) vendors </li></ul></ul><ul><ul><li>Want to go to a store, see the products and buy from a store but no store nearby </li></ul></ul>Number of Segments Identified = 4
  52. 52. Andheri Infinity Mall Areas Covered
  53. 53. Flow Based Segmentation (Based on research in Infinity Mall, Andheri (W) )
  54. 54. Objective <ul><li>Segmentation of consumers that enter a mall depending on their flow (movement) in the mall </li></ul><ul><li>To study the impact of mall on a consumer durables store in the mall </li></ul>
  55. 55. Methodology <ul><li>Observe customers from the time they enter to exit the mall </li></ul><ul><ul><li>Group size and demographic profile </li></ul></ul><ul><ul><li>Which all stores do they visit? </li></ul></ul><ul><ul><li>What do they buy? </li></ul></ul><ul><ul><li>How much time do they spend in each store? </li></ul></ul><ul><ul><li>What other things they do apart from visiting the store? </li></ul></ul><ul><li>Interview customers </li></ul><ul><ul><li>Which is your favorite store in the mall? </li></ul></ul><ul><ul><li>Why is that your favourite store in the mall? </li></ul></ul><ul><ul><li>How often you come to the mall? With whom do you come? </li></ul></ul><ul><li>Place : Infinity Mall in Lokhandwala complex, Andheri (W) </li></ul><ul><ul><li>Only mall with a consumer durables store (Vijay Sales) </li></ul></ul><ul><li>Time : 1:00 PM to 4:30 PM </li></ul><ul><li>Day : Monday ( 31 st July) </li></ul>
  56. 56. Customer Flow-Based Segmentation <ul><li>Type 1: Food Bazaaris </li></ul><ul><ul><li>Who? </li></ul></ul><ul><ul><ul><li>Woman ( aged 27 – 35 ) accompanied by her husband and/or children (<15 yrs) </li></ul></ul></ul><ul><ul><li>What do they do after they enter the mall? </li></ul></ul><ul><ul><ul><li>Go straight to Food Bazaar </li></ul></ul></ul><ul><ul><ul><li>Spend on avg 30 to 45 mns in Food Bazaar </li></ul></ul></ul><ul><ul><ul><li>Come out with heavy baggage ( the items that they bought) </li></ul></ul></ul><ul><ul><ul><li>Leave the mall without entering any other store </li></ul></ul></ul><ul><ul><ul><li>Will not go to food court </li></ul></ul></ul><ul><li>Type 2: Quality Entertainment seekers </li></ul><ul><ul><li>Who? </li></ul></ul><ul><ul><ul><li>Usually single or groups of 3 to 5 people of same sex ( all boys or all girls) </li></ul></ul></ul><ul><ul><ul><li>Age ( 18 – 35), Male/Female </li></ul></ul></ul><ul><ul><li>What do they do after they enter the store? </li></ul></ul><ul><ul><ul><li>Favourite store is Landmark </li></ul></ul></ul><ul><ul><ul><li>Land Mark because of books (not music) </li></ul></ul></ul><ul><ul><ul><li>Spend 30-45 mns in Land Mark </li></ul></ul></ul><ul><ul><ul><li>Buy Books and Music CDs </li></ul></ul></ul><ul><ul><ul><li>Eat in the food court </li></ul></ul></ul><ul><ul><ul><li>Sometimes do window shopping ( < 10 mns) </li></ul></ul></ul><ul><ul><ul><li>Likely to visit Consumer Durables store (Vijay Sales) but not likely to buy </li></ul></ul></ul>Number of customer segments Identified = 4
  57. 57. Customer Flow-Based Segmentation <ul><li>Type 3: Time passers </li></ul><ul><ul><li>Who? </li></ul></ul><ul><ul><ul><li>Usually couples or large groups ( > 5) of boys and girls together </li></ul></ul></ul><ul><ul><ul><li>Age 18-27, Single, Students or who started work recently (< 2 yrs) </li></ul></ul></ul><ul><ul><li>What do they do? </li></ul></ul><ul><ul><ul><li>Wait for other friends to join them, till then do window shopping </li></ul></ul></ul><ul><ul><ul><li>Once the entire group arrives, they go to food court and eat </li></ul></ul></ul><ul><ul><ul><li>Do window shopping in footwear and apparel stores </li></ul></ul></ul><ul><ul><ul><li>Definitely visit all the store on discount SALE </li></ul></ul></ul><ul><ul><ul><li>End up buying T shirts or trousers </li></ul></ul></ul><ul><ul><ul><li>Finally go to the movie in the cineplex </li></ul></ul></ul><ul><ul><ul><li>Leave the mall immediately after the movie </li></ul></ul></ul><ul><ul><ul><li>Spend at least 4 hours in the mall </li></ul></ul></ul><ul><ul><ul><li>Like Branded Sports stores like Adidas, Reebok, Nike </li></ul></ul></ul><ul><li>Type 4: Shoppers </li></ul><ul><ul><li>Who? </li></ul></ul><ul><ul><ul><li>Age ( 24- 35), Male/ Female </li></ul></ul></ul><ul><ul><ul><li>Small groups ( < 4) </li></ul></ul></ul><ul><ul><li>What do they do? </li></ul></ul><ul><ul><ul><li>They have a strong purchase intent for a specific product </li></ul></ul></ul><ul><ul><ul><li>Usually go straight to the store that sells Jewelry, Watch or Consumer Durables </li></ul></ul></ul><ul><ul><ul><li>Check out all other stores in the same floor but will not go to any other floors </li></ul></ul></ul>
  58. 58. Vijay Sales in Infinity Mall <ul><li>Footfalls </li></ul><ul><ul><li>Observation time : 3 - 4 PM </li></ul></ul><ul><ul><li>Avg 15 per half an hour </li></ul></ul><ul><ul><li>Conversion : 3 sales in half an hour ( 20% Conversion of footfalls) </li></ul></ul><ul><li>Products sold </li></ul><ul><ul><li>Mostly Mobile phones, DVD players and Microwave ovens </li></ul></ul><ul><ul><ul><li>Individual (usage) products </li></ul></ul></ul><ul><li>Next to public toilets ( helps Vijay sales in getting footfalls) </li></ul><ul><li>A great collection of LCDs/Plasmas and Laptops clearly visible through glass walls – helping largely to get the footfalls </li></ul>
  59. 59. Consumer Durables store in a mall Type When will they enter CDIT Store? What will they buy from CDIT store? Food Bazaaris No , they will not enter If they enter they buy kitchen related products Quality Ent. seekers May enter , if its closer to book/music store DVD player, I pod, Mobile phones Time Passers Will enter , if the LCDs/Plasma TVs or Laptops are visible from outside Speakers, MP3 players, I pod, computer accessories (e.g. mouse) Shoppers Will enter only if they entered the mall with the strong purchase intent for CDIT products or if the store is on the same floor as that of jewelry, watches etc (not footwear and apparels) TV, Refrigerator, Washing Machine, AC
  60. 60. Data
  61. 61. Stores with Zero Footfalls ( 3 to 4 PM) <ul><li>Planet Fashion ( Van Heusen, Louis Phillip, Allen Soly) </li></ul><ul><li>Samsonite </li></ul><ul><li>Cat Walk ( high end footwear shop) </li></ul><ul><li>Reebok </li></ul>
  62. 62. Navi Mumbai Vashi Kopar Khairane
  63. 63. Customer Segments <ul><li>Who are they? </li></ul><ul><ul><li>23- 28 </li></ul></ul><ul><ul><li>Male/Female </li></ul></ul><ul><ul><li>Single and Independent </li></ul></ul><ul><ul><li>New to Mumbai </li></ul></ul><ul><ul><li>Can shop only on weekends </li></ul></ul><ul><ul><li>Lives with friends </li></ul></ul><ul><li>What do they want? </li></ul><ul><ul><li>Products in order of priority </li></ul></ul><ul><ul><ul><li>Mobile Phone </li></ul></ul></ul><ul><ul><ul><li>Refrigerator (<165 L) </li></ul></ul></ul><ul><ul><ul><li>21’’ TV </li></ul></ul></ul><ul><ul><ul><li>Washing Machine </li></ul></ul></ul><ul><ul><li>Seeks for </li></ul></ul><ul><ul><ul><li>Basic Type Products </li></ul></ul></ul><ul><ul><ul><li>Cheapest </li></ul></ul></ul><ul><ul><ul><li>Short term usage </li></ul></ul></ul><ul><li>What kind of store? </li></ul><ul><ul><ul><li>Store closer to house </li></ul></ul></ul><ul><ul><ul><li>Delivery expected on the same day(Weekend) </li></ul></ul></ul><ul><ul><ul><li>Need a quick comparison guidance on features vs Price </li></ul></ul></ul><ul><li>What is their size? </li></ul><ul><ul><li>Assumption: They have first class local train passes from Vashi. They travel in 8:45, 9:15 and 9:45 local trains </li></ul></ul><ul><ul><li>Total No. of people traveling in first class = 450*3 = 1350 </li></ul></ul><ul><ul><li>30% of 1350 are new entrants ( 405) </li></ul></ul>Number of customer segments identified = 1 Name = The New Entrants
  64. 64. Bangalore (Planned from 8 th to 15 th August)
  65. 65. Bangalore catchment area <ul><li>Location: Banashankari Area ( behind Deva Gowda Petrol Bunk) </li></ul><ul><li>Catchment colonies ( within 2 Km radius) </li></ul><ul><ul><li>Banashankari 1 st stage – 5000 houses </li></ul></ul><ul><ul><li>Banashankari 2 nd stage – 3000 houses </li></ul></ul><ul><ul><li>Part of Kumara Swami Layout, ISRO layout – 3000 houses </li></ul></ul><ul><ul><li>Banashankari 3 rd stage, Katriguppa area – 6000 houses </li></ul></ul><ul><ul><li>Padhmanabha Nagar: 4000 houses </li></ul></ul><ul><ul><li>Uttarahalli : 2500 houses </li></ul></ul><ul><li>Property size </li></ul><ul><ul><li>14,000 SFT ( Ground Floor) </li></ul></ul><ul><ul><li>11,000 SFT (First Floor) </li></ul></ul><ul><li>The other retailers in the area </li></ul><ul><ul><li>BIG BAZAAR ( About 1.5 KMs) </li></ul></ul><ul><ul><li>About 10-12 Factory/ seconds garment/ footwear outlets </li></ul></ul>
  66. 66. Best Buy’s customers
  67. 67. Segments <ul><li>Affluent professionals who want the best technology and entertainment experience </li></ul><ul><li>Active younger males who want the latest technology and entertainment </li></ul><ul><li>Family men who want technology to improve their lives—practical adopters of technology and entertainment </li></ul><ul><li>Busy suburban moms who want to enrich their children's lives with technology and entertainment </li></ul><ul><li>Small-business customers who can use Best Buy's products and services to enhance the profitability of their businesses </li></ul>