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Crossword case study


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Crossword case study

  1. 1. To benchmark national and international bookstorechains with respect to the non-books categoryTo determine the appropriate non-books merchandiserange within a bookstoreTo study feasibility of private labels in the non-bookscategoryTo propose strategies to drive the non-books categorybusiness for Crossword
  2. 2. In-depth Interviews: 8 Males, Quantitative Analysis 7 Females, 2 Employees of through a Strategic Landmark Lucknow, questionnaire. Data Analysis directionEmployees of Odyssey (Trichy), Responses from using SPSS, based on Landmark(Lucknow), Mumbai, Bangalore, Ch Excel the Shopper studies at Landmark ennai, Delhi, Ahmedaba findingsLucknow, Crossword Chennai d, Lucknow
  3. 3. People visit a bookstore with the Most of the promotions, special eventsThrough Primary intention of spending time unlike a etc. are centered on books – Other music store or a gift store categories are generally ignored Research Music/movies section not updated Book lovers do not mind other regularly – No procurement of categories taking up space so long a unavailable CDs on special orders good collection of books is maintained (unlike books) cOKblKELk
  4. 4. Expectations in music section varies Most people felt Indian bookstores Through Primary with the city – City-specific merchandising strategy for should start selling eBook readers like Kindle Research music/movies required Bookstores have unique gift items There is scope to engage the customer compared to gift stores – but most through various activities – coffee customers found these items to be shops, gaming kiosks etc. expensiveBased on these insights, we have segmented the consumers and given recommendations accordingly
  5. 5. Landmark is doing better in ambience, variety & experience to an extent Crossword is preferred for layout, assistance & experience. The only weak aspect is the non-book item options Odyssey has preference for variety of offerings. Most people prefer local bookstores for price and convenienceBased on user preferences of parameters likePrice, Convenience, Variety, Ambience,Experience, Layout, Assistance andOverall customer preference
  6. 6. Not difficult M L e Landmark has more non-product offerings o r Survey results clearly indicate higher percent c c a hof (36%) people feeling that the store is too t a Its ok Croswordcluttered i d Landmark People feel Landmark is more cluttered when n i g scompared to Crossword even though it hasn’t e Difficult to find itemsaffected too much on its store preference But it would become be a deterrent in theamount of purchase made 0 20 40 60 80 Percentage (%) Striking the right balance between the amount of merchandise offered and the store atmosphere is vital
  7. 7. Segment Characteristics Needs/PreferencesYoung  19-23 years – Students  Attractive displayBrowsers  Come with friends (more of a  Recommendation in Books and time-pass visit) Music/Movies required to create  Weekend visitors (more Impulse Purchase frequent)  Prefer better assortment  Don’t care about variety of books
  8. 8. Segment Characteristics Needs/PreferencesFamily  26-40 years – Working  Atmosphere engaging kidsShoppers Population (games/toys/children books)  Income range INR 8-20 lakh  Home décor items,  Come with family – Visit once Men/Women special accessories in a month  Customized family-photo mugs,  Look for variety T-shirts  Better assistance in finding items and good ambience
  9. 9. Segment Characteristics Needs/PreferencesBook  Visit with friends/alone –  Need good collection of booksLovers Visiting for last 6-7 yrs  No disturbance in the book  Income 5-7 lakh – High book section purchase intention  Prefer proper assortment of  Moderately frequent (once/more books in a month)  Ambience to spend time, relax,  Seek non-books only for specific read and choose books requirements
  10. 10. Segment Characteristics Needs/PreferencesValue  23-29 years – Entry-level job  Affordable qualitySeekers positions products/Variety (especially  Price-conscious, Gifts searchers, gifts) Recent visitors  Offers would interest them, Good ambience preferred
  11. 11. Segment Characteristics Needs/PreferencesPremium  35 years and above, Income 15-  Unique collections of lifestyleBuyers 50 lakh products  Less frequent (Visit when time  Home decor, watches, pens, is available) bags, ties, cufflinks etc.  Visit alone, SEC A category
  12. 12. 60-65% of revenues from books and music.Most stores are located in malls.Stocks music, movies, toys, gifts, stationery, games, home décor, perfumes, leather goods,cards among othersCity-specific strategy. Reduced space for books in tier-II citiesStocks watches, sun glasses and other premium lifestyle products in major cities
  13. 13. Positioned as a leisure store Equal importance to book, movies and music, toys and stationeriesBook lovers feel that the staff aren’t properly trained to guide them in their selectionLaunched ‘Toyopia’ – Independent toy store, ‘The eyewear store’ – optical store
  14. 14. Multiple formatsBorders Express, Borders airport stores, Borders Outlet, Calendar stores, mall kiosksPredominantly books, movies/music‘Paper chase’ concession stores for stationery productsUS Stores have Seattle’s Best caféSpecialty calendar divisioneBook readers, audio
  15. 15. Barnes and NobleHuge upscale bookstoresStores contain a Starbucks caféPrivate labels‘Nook’ – eBook reader‘Barnsie’ – a teddy bear‘GameStop’ – Video games and entertainment retailer spun off from Barnes and Noble
  16. 16. Categories eBook reader, Movie posters, Greeting Cards, Home Décor, Bundle related movies/music and books Premium lifestyle products – Branded watches, sun glasses, high-end pens, ties, cufflinks etc.
  17. 17. Toys Increase focus on Board games – Customers associate board games with bookstores Engage the customer – Set up a small play area, Kiosks with jig saw puzzles/board games
  18. 18. Gaming Set up a small gaming area-consumers can try consoles Stock more consoles like Sony PS2/PS3/PSP
  19. 19. Music/Movies Maintain wider range of genres based on local popularity e.g. Rock/Hip Hop/Techno in Metros Organize events around music and movies – Gift merchandise autographed by music/movie artistes
  20. 20. Music/Movies Influence consumers – Display a list of top selling Music & Movie CDs/DVDs each month in books section Extend ‘Crossword Recommends’ to Music – High-end customers prefer buying original music
  21. 21. Music/Movies Maintain Classics in all languages/genres. Better assortment of categories – Most Popular/Latest on top. Reintroduce ‘Juke Box’ – to listen before buying. Add more accessories – Branded Headphones/Mics
  22. 22. Gift Items Unique and exotic gifts; Stock premium, region-specific and traditional gifts
  23. 23. Private Customized Gifts/Mugs/T-shirts with printsLabels (order and pick up later, browse other categories meanwhile) Toys/Home décor/Stationery – Specifically target value seekers
  24. 24. • Interactions with singers, musicians Events • Launch events of independent music labels • Gaming contests in the summer • Rubik’s cube challenge • Package related items togetherBundling • Books, DVDs of movies based on the book, Music CDs, Movie posters
  25. 25. Gaming • Customers can play , try variousCorner consoles and new gamesKiosks • Print pictures on mugs and t-shirts • Get their portrait sketched
  26. 26. • Tables with jigsaw puzzles and board gamesBoard can be placed across the toys and games sectionGames • Kids’ section in stores like Barnes and Noble resemble a kindergarten • Crossword should set-up a small play area in bigger stores Kids’ • Occasional weekend events involving kids should be organizedCorner • Parents will stay in the store for longer duration • This will have a positive impact on the sale of toys
  27. 27. Customized Gifts Gifts Children Book Section Option for Premium Products/ Movies Info Desk cross- New items selling Crossword Music Recommends adopted Games (Music/Movies) books, All Varieties Kiosk Seats Crossword movies Stationery Recommends (Books) and music Promos Coffee Shop Gaming Popular books Best Sellers/ New Arrivals Kids Play Toys Clear Demarcation between Area books and Non-Books Billing Counter Entrance Seats NON-BOOKS BOOKSActivities to engage the customer Prominent distinguishable section for Promos
  28. 28. User perceptionsThe ANOVA test shows significantdifference between the perceptionsamong customers that in Landmark,it is tougher to find items as theyhave too many products compared toCrossword There is not much difference between the user preference levels on the overall store. Thus, even though Landmark has a hindrance with too much product display it hasn’t affected the overall ratings
  29. 29. Distinction between book lovers and general people entering a bookstore • Discriminant analysis was done to find the distinguishable factors between book lovers and others who come to the book store • Non-book preference emerged as the factor (Significant through discriminant function) Implication: People don’t look for non-book items displayed in the store. But most of them don’t mind non-book items displayed unless it is not too disturbing with the exception of a few. This is common across the demographics
  30. 30. Bookstore Customer SegmentationCluster Analysis was done to come up with the segmentation of customers in bookstores.Five cluster solutions was identifiable. Based on these, ‘Looking for entire familyneeds’, ‘Presence of Limited Category’, ‘Difficulty in finding’ were the significantfactors that can be distinguished across clusters along with other demographic variables