Rishabh.m 1351-r.m.s individual retail visit report


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Rishabh.m 1351-r.m.s individual retail visit report

  2. 2. 2 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 NAME: Rishabh Maheshwari STUDENT ID (UBS): 1351 PROGRAMME: Masters of Business Administration GROUP: MBA3 Aug ’13-’14 SEMESTER: 3rd Semester MODULE TITLE: Retail Management strategic MODULE TUITOR: Prof. Bibhas Basumatary ASSIGNMENT 1 TITLE: Observations and . . Analysis of a Retail Store
  3. 3. 3 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Brand Philosophy……………………………………………………………………… 4 Socio-Economic Importance of Shoppers Stop, Malad Mumbai…………………… 7 Identifying the Retail Type and its Product/Service Categories………………… 10 Key Strategic Drivers of the industry…………………………..............................14 Modern Technology deployed by Shoppers Stop ……………………………………16 Marketing Mix Strategy applied by Shoppers Stop ....................................................18 Table of Contents
  4. 4. 4 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 With an unparalleled assortment of the leading international and national brands in clothing for men, women, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and decor products, our stores aim to provide shoppers a truly international shopping destination. At Shoppers Stop we believe in a world of limitless possibilities. We always Set benchmarks, cross limits, achieve the impossible and celebrate our successes. Innovation being our key driver, we have adopted a new philosophy of "Start Something New" to give retail a new dimension. We endeavor to Start Something New in performance. Start Something New in products. Start Something New in customer service. Start Something New in Life. Brand Philosophy
  5. 5. 5 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 About SHOPPERS STOP Ltd.  Shoppers Stop Ltd., a pioneer in modern retailing in India, has been promoted by K Raheja Corp. Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate development and hotels in the country.  Shoppers Stop Ltd along with its Subsidiary Company Hyper city Retail (India) Ltd and Joint Venture Companies Time zone Entertainment Pvt. Ltd and Nuance Group (India) Pvt. Ltd. operates more than 3.93 million sq. Ft. in the country.  Shoppers Stop and its associate companies are involved in retailing through department stores, specialty stores, entertainment zones and large hypermarkets. Management- SHOPPERS STOP Ltd. Chandru L Raheja Chairman / Chair Person B S Nagesh Vice Chairman Govind Shrikhande Managing Director Ravi C Raheja Director SHOPPERS STOP:AN OVERVIEW 2013
  6. 6. 6 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1
  7. 7. 7 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Shoppers Stop is a leader in the Indian Retail Sector and one of the pioneers in setting up large format department stores chain in India. The foundation of shoppers stop was laid on October 27th , 1999, by the K. Raheja group of companies. Being amongst India’s biggest hospitality and retail estate players, the group crossed yet another milestone with its lifestyle venture – shoppers stop. Socio-Economic facts of shoppers stop.  Retail thrives in a growing economy, when incomes are on the rise and consumers have great hopes about the future. When consumer sentiment turns negative due to job losses or a drop in income, spending is either skipped or postponed.  When spending is postponed, retail is impacted, especially the clothing and accessory categories. This directly results in a drop in like-for-like sales, impacting profitability and growth. The retail sector saw the death of several players in this period, and a number of others had to re-strategies their formats and balance sheets.  We also learnt that it is essential to evaluate businesses. Businesses/formats/stores that are never going to be profitable need to be closed. Postponing this can only cause more harm. In some cases the customer may not be ready, or your scale may not support profitability.  Every business has certain fixed variable costs. Some of the costs and factors impacting business are never going to be in the control of a company. For example, economic growth, oil prices or stock indices are not in the control of any single company. There is no point in sweating when these factors become negative.  Identifying the controllable costs, such as energy and employees, and gaining full control over them helps the business focus its energies on the right metrics. We were able to cut power consumption costs by more than 25 per cent over a 15-month period.  Another important thing during the slowdown is to communicate. When the sky starts falling, everybody notices it. But if one communicates steps that are being taken and the rationale behind them to everyone, fear gets converted into target-oriented objectives. We communicated issues very clearly across the organisation and had all our stakeholders rallying behind us completely. Socio-Economic Importance of Shoppers Stop- In orbit mall Malad, Mumbai
  8. 8. 8 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  Buying habit of customer in shoppers stop.
  9. 9. 9 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 SHOPPERS STOP CUSTOMER CLASSIFICATION ON BASE OF SOCIO-ECONOMIC CLASSIFICATION Premium-conscious Value-conscious Time-conscious Percentage of shoppers 26 46 28 Socio-economic classification A1 A1&A2 A1 Age group(years) 15-40 15-35 15-40 profile Males and female in almost equal number; married and single people in almost equal numbers Single males Single males Shopping habits Visit with family and friends, 80% are first citizen Visit with friends and family most likely walk-in customers Visit with friends and family, 70% are first citizens spend high average average Shopping statements Shopping helps me buy the latest I want to buy first and latest I buy only brands and quality I do most of shopping during the sale I like to browse around and may not buy I don't care about ambience as long as store is conveniently located I like to finish shopping quickly
  10. 10. 10 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Retail type Shoppers’ Stop is considered as a multi brand retail outlet because of its variety of products meant for the entire family. The vast and diverse range of products available in Shoppers’ Stop is rare to find in any of the retail chains of India. Again under this vast range they offer different categories and style which caters to the need of customers from various economic slabs Shoppers’ Stop is considered to be a pioneer in departmental one stop shop concept and has brought retail revolution in India so it understands the customer psyche better than many of its competitors Shoppers’ Stop is considered as one stop multi-brand retail outlet providing leading international and national brands in clothing for men, women and kids, accessories, cosmetics, footwear and home furnishing. Identifying the retail type and its product/service Types of product
  11. 11. 11 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1
  12. 12. 12 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1
  13. 13. 13 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 • Jack & Jones, French Connection, CK Jeans, GAS, ESPRIT, Tommy Hilfiger, Mustang & Mango in apparel segment • Loccitane, Lancome, MAC, Clinique & Estee Lauder in cosmetics • CK, Armani & Gucci in sun glasses • Burberry, Nina Ricci, Diesel & Boss in watches Types of service International brands
  14. 14. 14 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  Guerrilla marketing  Interactive marketing 1. Guerrilla marketing Is an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget? Typically, guerrilla marketing tactics are unexpected and unconventional; consumers are targeted in unexpected places, which can make the idea that's being marketed memorable, generate buzz, and even spread virally. Guerilla Marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerilla marketing now utilize cutting-edge mobile digital technologies to really engage the consumer and create a memorable brand experience. Principles of guerrilla marketing Guerrilla Marketing is specifically geared for the small business and entrepreneur. It should be based on human psychology instead of experience, judgment, and guesswork. Instead of money, the primary investments of marketing should be time, energy, and imagination. The primary statistic to measure your business is the amount of profits, not sales. The marketer should also concentrate on how many new relationships are made each month. Create a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse products and services. Instead of concentrating on getting new customers, aim for more referrals, more transactions with existing customers, and larger transactions. Forget about the competition and concentrate more on cooperating with other businesses. Guerrilla Marketers should always use a combination of marketing methods for a campaign. Use current technology as a tool to empower your business. 2. Interactive marketing Is a strategies adopted by then retailers where they allow customers to customize the product as per their preference. This strategy is mainly followed by service Industries like hotels but Shoppers Stop is able to carve out this facility in a retail store. The concept that has already made a debut at Shoppers Stop outlets in Mumbai, allows customers — who are referred to as guests— to go through various stages of activity in creating their own teddy bear (or other stuffed toy), including choosing a stuffed animal, stuffing it, giving it a heart, stitching, fluffing, Key strategic drivers of the industry
  15. 15. 15 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 naming and dressing it. And though the toys are priced at a premium level ranging between Rs 595 and Rs 1,295 for stuffed animal and add-ons such as sound chips, clothes and accessories coming at extra cost 3. Market strategies of the industry • I also start a new concept in the retail industry by setting up trial rooms with day and night lighting options so that consumers could check how garments would look during the day and in the night. • They should educate their employees more about customer relationship managements. • They should start facilities for customers like shoppers stop gives parking facilities to their gold members. • Some retailers have Tie-ups with restaurants, as customer gains points they can also redeem them at selected restaurants or ice cream bars etc...
  16. 16. 16 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  Cash Register Express Cash Register Express (or CRE) is a cost-effective computerized cash register that keeps your inventory costs down, reduces theft and makes more money! CRE is Windows-based POS system exclusively for retail and video stores.  Broad compatibility Microsoft Access compatible QuickBooks compatible  Radio frequency identification, a technology similar in theory to bar code identification. With RFID, the electromagnetic or electrostatic coupling in the RF portion of the electromagnetic spectrum is used to transmit signals. Modern technology deployed by the Shoppers Stop in its operations
  17. 17. 17 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  Window Displays- Exclusive windows (closed backdrop with a theme and seasonal motif Open windows (Without backdrop and passerby can see interior of store) E.g. Apparel & Related accessories.  Use of Technology It is also one of those very few retail chains to have ERP (Enterprise Retail Planning), which is considered one of the best retail planning system in the world. ERP helps in quick decision making process. With this Shoppers’ Stop can open new stores faster and can get necessary information about merchandise and customers online? Shoppers’ Stop uses a mix of technologies and systems like JDA suite for retail business and SharePoint portal for their internal and external collaboration. It also uses Microsoft Exchange and Communication Server for messaging. Technologies like Oracle Financials is used for financial accounting, NetApps' SAN and NAS technologies for storage consolidation and virtualization, Business Objects for reporting, blade servers and multi-core servers with VM Ware for application deployment, and Wi-Fi networks in offices. For stores and distribution centers they use operational activities with Symbol wireless scanners. Shoppers’ Stop replaced its legacy system in 1998 and selected JDA. JDA solutions ensured consistency and uniformity of fixtures across all its stores thus enhancing the efficiently and helping the chain grow profitably as well as ensuring the company’s success — particularly that of its new hypermarket business. JDA solutions have helped Shoppers’ Stop in many ways:  Optimizing floor space and visualizing the layout prior to construction  Inventory planning improvement through planned and systematic forecasting  Provide a high magnitude of analysis and reporting  Efficiently manage high inventory turns and volumes  Improve the management of metrics, including service and inventory levels Shoppers’ Stop also insists on the use of PeopleSoft HRMS, business intelligence solutions, e- learning solutions, customer feedback systems and mobile point-of-sale systems.
  18. 18. 18 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  How does a retailer inform his customers about the product he has an offer on?  How does he lure them to visit his store and shop?  How does he achieve his sales target? The answer to all the above questions lie in the retail marketing mix strategy the retailer follows to pursue his marketing objectives. All these strategies are explained below. The retail marketing mix product place price promotionpeople customer sevice Physical evidence Marketing Mix Strategy applied
  19. 19. 19 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Product  General Products: Shoppers’s Stop includes domestic as well as international retail articles and products  Private Label: Shoppers Stop has also launched their own private labels such as STOP.  Others: In addition to the above, Shoppers Stop also does promotional marketing. E.g. they launched ZooZoo range and also other similar products have been launched. These also form the part of the Product as SS.  Services are: - Pre-purchase services include accepting telephone & mail orders, advertising, window & interior display, fitting rooms, fashion shows.  It provides post purchase service including shipping & delivery, gift wrapping, adjustments & returns, alteration & tailoring.  It also provides ancillary services including general information , check cashing, parking, restaurants, repairs, interior decorating, credit etc. Place  Retail-friendly supply network, connects its locations online all over India. (http://www.shoppersstop.com/)  Shoppers Stop is Indian largest chain of Superstores with an aggregate acquired area of Store Size: 1,17,000 sq. feet in Malad – Inorbit Mall  Retail Presentation Area: 56% – 64% of total store size  Shoppers Stop Ltd. Excels in Service quality and the stores of a high class feel which is different from other multi-brand retail stores.  Shoppers Stop Ltd. Stresses on 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.
  20. 20. 20 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1  Shoppers Stop is Indian largest chain of Super Stores and has many stores in whole of India.  Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at a High Price.  Shoppers stop caters to different segments of the consumers.  Men’s apparel The range of men’s clothing starts from Rs 500 being the lowest to nearly 6ooo highest.  Women’s apparel The range of women’s clothing starts from Rs400 to Rs 10000  Men’s accessories like sunglasses, belts, watches, shoes etc. ranges from Rs 1000 to Rs 20000.  Women’s accessories like sunglasses, watches, belts, sandals, earrings etc has the price range of Rs 2000 to Rs 40000.  In the kids section prices of toys and other accessories ranges from Rs 100 to Rs 5000  In the cosmetics section there are products like deodorants, skincare cosmetic, and make-up stuff. Their price ranges from Rs 200 to Rs 2000. Pricing
  21. 21. 21 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Types of Pricing  Promotional discounts  Seasonal Pricing  Image Pricing.  Product form Pricing  Psychological Pricing  Product bundling Pricing  Value Pricing. Promotion 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. INHOUSE PROMOTIONS  Peaked during summer, Diwali and Christmas – “Festival of Delights” program.  Promotions based on themes – matching decorations, liver bands and other. EXTERNAL PROMOTIONS  Advertising on media - Advertising contract  Shoppers Stop offer Gift Vouchers of denomination ranging from Rs 250 to Rs 5000 People  Front-line staff will have a direct impact on perceptions  Grey black uniform to suit with the Shops interiors  Good personality to attract the customers inside the shop  Friendly nature
  22. 22. 22 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Customer service The name "First Citizen" reflects their commitment to offering their customers the 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 Physical evidence  Lovely fresh fragrance at entrance  Spacious landing strip  Wall space utilized for mirror and print ads of the brand or the product near  Also utilized it by providing self's and constructing trail room around it  Mirror finish style flooring  Escalators  No stacking bellow knee level  Men’s Apparel stacked in a unique style.  One type and many sizes together in ascending order 39 40 41 42 44
  23. 23. 23 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 Shoppers Stop: Layout Malad inOrbits Mall Ground Floor 1st Floor 2nd Floor
  24. 24. 24 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1 TARGETING RETAIL STRATEGY  On an average stores 30000 pieces of different products.  Merchandise sourced from 250 exporters in Delhi, Mumbai, Bangalore  Centralized buying for all products except cosmetics and perfumes to avoid sales tax  Carries 63 days of stock. REVENUE MIX (Category Wise Sales (%)) Men’s ready to wear store Offering expanded to suitings, boys and ladies Casuals, kids wear, jewellery, fragrances, cosmetics and watches