Westside Model

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Westside Model

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

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