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    Westside (1) Westside (1) Presentation Transcript

    • Explore endless possibilities with Westside
    • Background
      Trent is the retail arm of Tata Group founded in 1998 by Ms. Simone Tata.
      Currently operate in three store formats
      Westside
      Star Bazaar
      Landmark
    • Background
      In 1997 Tata sold Lakme to HLL for Rs. 2 bn.
      In 1998 Tata’s acquire Littlewoods Retail store and renamed it as Trent Ltd.
      Littlewoods retail stores renamed as Westside.
    • Number of Stores
    • Findings
      • Store owned brands and other brands ratio 30:70
      • MR conducted to understand customer behavior to enhance customer loyalty
      • 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
    • Westside model
      Free from layout/boutique layout – fixtures and aisles arranged as symmetrically
      Merchandise displayed at 2 levels on same floor
      Merchandise in separate clusters e.g.. Women's wear and accessories clubbed together for convenience
      2 main divisions
      Apparel- men’s wear ,women's wear, lingerie, kids wear
      Product- household gifts, other accessories
    • Promotion and Marketing
      Signed Yuvraj Singh, as its celebrity endorser
      Westside launch marketing campaign on print and television media with budget of Rs. 200 million
      8% of revenue is spent on marketing and promotion
    • Sourcing and stocks
      Each store on avg stored 30000 SKU’s of different products
      Merchandise sourced from 250 exporters from Delhi , Mumbai and Bangalore
      Centralized buying for all products except cosmetics and perfumes to avoid sales tax
      Carried 63 days of stock days
    • 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
    • Apparel
      Westside merchandise - India’s best known fashion designers
      Wendell Rdericks
      Anita Dongre
      Krishna Mehta
      Monisha Bajaj
      Mona Pali
    • Division
      Women Wear
      Western formals, casuals and ethnic wear
      Range had great depth
      Designer clothing introduction
      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
    • Cont.
      Mens Wear
      Formals,casuals,ethnic ,sports wear,part wear
      Latest styles
      Household
      Towels,bathroom sets etc
      Well coordinated,allowed mix n match
      New introductions each week
    • Cont.
      Gift Section
      Diyas , terracotta pots ,urns
      Range of furniture
      Utility
      In wrought iron and rope : magzine racks , stools , etc
    • “ Fashion at affordable pricing”
      Focus on 2 parameters – style and affordability
      Total advertising spend 8% of sales
    • In-house Promotions
      Peaked during summer ,Diwali and Christmas – “Festival of Delights “ program
      Promotions based on themes – matching decorations , liver brands and other attractions
    • External Promotions
      Advertising on media – model fleur xavier for advertising contract
    • We’ve learned that it is absolutely essential to listen to customer-what they want in terms of style and price,and to understand the demographic of it all-Simone Tata
      • Conducted research to better serve customers
      • Focus on customer Feedback
      • Trust in customers reflected confidence in products
      • Loyalty Program :Clubwest
    • Question1.
      Advantage
      High margin on own brands
      Control over manufacturers, quality and distribution
      High quality raw material and designing
      No intermediary – High margin
    • Question 1
      Disadvantage
      Heavy investment in brand building
      Poor economies of scale
      Customer perception
    • Q2. Discuss the westside model in detail?
      Answer
      Free from layout/boutique layout – fixtures and aisles arranged as symmetrically
      Merchandise displayed at 2 levels on same floor
      Merchandise in separate clusters eg. Womens wear and accessories clubbed together for convenience
      2 main divisions
      Apparel- menswear,womenswear,lingerie.kids wear
      Product-houehold,gifts, other accessories
    • Customer Feedback : Information about customer preferences, Repeat customer.
      Heavy advertisement leads to brand awareness and sale of products
    • Q3. While the retail clothing industry is predominately unorganized, competition between organized retail is still acute, with many Indian business houses evolving and international players showing interest. Analyze the competition in retail clothing and lifestyle products industry with special reference to Westside. What strategies would you recommend for Westside to position itself effectively against the competition?
    • Main competitor
    • Westside should focus on
      High Quality and stylish in house clothing brands.
      Good customer service.
      Location of store .
      Promotional schemes and discounts.
    • Q4.
      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
      A study on food and grocery retail market by KSA technopak , food retail sales make up for 63 % 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
    • 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 cloths
    • Presented By:
      AkhilKashyap
      PriyankaRawat
      Robin Bansal