Marketing ramms

A C A S E S T U D Y
13 April 2014Marketing Case Study - RAMMS
Retailing, ADVERTISING, MARKETING & MERCHANDISING Services
(RAMMS)
Prepared by-
Chanpreet Singh
Sachin Sharma
Surabhi Kala
Swapnil Soni
DoMS, IISc
Course-
Marketing Management
Instructor-
Prof. R. Srinivasan

2
Index
 Retail Marketing and Merchandising
 RAMMS- introduction
 RAMMS’ History
 RAMMS’ Leadership
 RAMMS ‘Operations
 RAMMS’ Breakthrough
 RAMMS’ Clients
 RAMMS ‘ Campaign
 Details of campaign
 Survey, Analysis and Result
 Financial Analysis- Return on Ad
 Response to Case Issues
 RAMMS at present
 References

4
 Sale of goods and services from individuals or businesses to the end-user
 Retailers are part of an integrated system called the supply chain
 A retailer purchases goods or products in large quantities from manufacturers directly or
through a wholesale, and then sells smaller quantities to the consumer for a profit
Retail Marketing
Customer Money Product
B 2 C Business

5
 Holistic (integrated marketing) Marketing approach
Product Mix
Supplier’s perspective Consumer’s perspective
Product
Technology, structure, design, color
Solution
Quality, Utility, application, compatibility
Price
Competitive pricing, Offers
Value
Opportunity cost
Place
Marketplace, market space, meta market
Access
Easiness of access, availability of product
Promotion
Advertisement, customer engagement
Information
Knowledge about the product & its features
Retail Marketing and Merchandising
•Retailing and Merchandising have a limited scope but firm connection with overall
marketing function of a company.
•It deals at the delivery stage of the product to the consumer.
Demand
Design &
Production
Advertisement Wholesale Retailing Delivery
Customer
satisfaction

6 13 April 2014Marketing Case Study - RAMMS
Quick & efficient shopping But longer the stay at shop -> more likely to purchase
Solution- > Make shopping entertaining
Challenge:
Customer wants better product at least price,
least time and most convenient way
Good News:
75% of buying decisions are taken at the time of
purchase only

7
Advantages over Media ad
 Low cost
 Consumer Focus
 Precise Target marketing
 Relative Ease in evaluation
Implementation Steps
 Analyzing the effect of Merchandising on
consumers’ purchase decision
 Identifying the participating channels &
their effectiveness
 Allocating the functions to channels
 Integrating all the elements of
merchandising & retailing
 Measure the performance of
merchandising by linking it with trade
result
Challenge in execution
 Cooperation of channel members
 Comprehension of campaign by consumers
Got it??

8
RAMMS’ History
Year Milestones
1960 Marketing Advertising Associates (MAA) Founded
1981 MAA Communications-an independent agency with operations across South India
1991 RAMMS started as subsidiary of MAA Bozzel
1994 RAMMS declared as a Public limited company
Among India's first indigenous advertising agencies

9
 20 year old specialized Shopper Marketing agency
 A team of retail experts with an intimate knowledge of the Indian
retail market
RAMMS’ Leadership
Name Designation Curriculum Remark Experience
R. Kannan Chairman IIM, Ahmedabad 42 years
Gautam Chowdhary President Institute of Chartered
Accountants of India
34 years
Krishna Rajan Dy. President Marketing
communication
specialist
22 years
Presence: Bangalore. Mumbai. Delhi. Kolkata. Chennai. Hyderabad

10
 Shopper Marketing in India is different because of the MULTIPLICITY of channels in India.
RAMMS has devised an India specific methodology (DICEM) to create new paradigms in
Shopper Marketing across these multiple channels
RAMMS’ Operation

11
Functions Descriptions
Experiential Store Design Design of retail environments that deliver joyous shopper experiences
Retail Identity Creation Retail brands, product brands and private labels
Retail Communication Specialized in-store communication targeted at shoppers
Navigation & Way finding Planning, design and deployment of shopper-led retail signage and way-
finding systems
Project Management &
Rollouts
Meticulous execution of concepts and designs, from pilot store to
national roll outs
Brand Launches End-to-end product launch services from shopper centric launch
campaigns to post launch metrics
Events and Promotions Conceptualization and on ground translation of in-store events through
trained promoters
Manufacturer –Retailer
Collaboration
Creation of platforms for long term retailer-brand collaborations that
deliver the ultimate shopper experience
Shopper Research Shopper behaviour studies through observation, shadowing and
conversations to derive insights
Planogramming Handling on shelf product presentation of brands and products
RAMMS’ Operation

12
RAMMS’ Breakthrough

13
RAMMS’ Clients

RAMMS ‘ Campaign

15
RAMMS ‘ Campaign
 Major campaign launched by Bangalore unit
 POP (Point of Purchase) displays for Lakme Orchids nail enamels
 Cariba-cola flavored rum campaign
Place of campaign 1. Spencer, MG Road, Bangalore
2. Topaz, Brigade Road, Bangalore
Measurement of effectiveness of merchandising Survey and Questionnaire comprising 16 questions mostly
objective
Target customer for survey Upper and upper middle class
Sample size 30 numbers
Place of campaign 1. DoMS, IISc, Bangalore
2. Online- social networking
Measurement of effectiveness of merchandising Survey and Questionnaire comprising 16 questions mostly
objective
Target customer for survey Students and professionals
Sample size 30 numbers
Tools used for analysis Bar Chart, Pie Chart & Regression
Virtual survey (we did)

16
Q1. What is your objective of coming to the store?
 To purchase cosmetics?
 To do window-shopping?
 To give company?
 To check out new arrivals?
RAMMS ‘ Campaign – Survey, Analysis & Results
33%
23%
7%
10%
27%
37%
To purchase
To do window-
shopping
To give
company
consumer goods
electronic
devices
Inference
•A major portion of visitors in stores come for checking out new arrivals
• These possibly will be the future customers for the store
•Number of customers coming to check out new arrivals in case of consumer goods is very
less compared to electronic devices
•Hence it can be said that consumer goods are bought with comparatively less ponderation.

17
Q2. Do you prefer shopping in big departmental stores like this?
Q3. If answer to question 2 is yes, then why do you prefer shopping in these stores?
Yes
70%
No
30%
Inferences:
•Luxury items such as cosmetics are more appealing to consumer
when sold at dedicated large departmental stores.
•Convenience & quality faith are major factors of shopping taking
place in malls
•Merchandising alone can sufficiently influence buying decision
10
6
3
4
2
1
4
0
0
2
4
6
8
10
12
•Convenience
of all under
one roof
•Better quality •Good variety •Courteous
sales people
•Competitive
pricing
•Abundant
quantity
•Status symbol •Any other
reason
Scope of ‘Merchandising’

18
Q4. Are you normally pre-decided on what to purchase before you come to store?
Q5. If answer to question 4 is no, then what range of goods do you usually decide
after coming to the store?
Yes
17%
No
83%
5
10
5
8
2
•Cosmetics •Household Items •Crockeries •Hygiene items •Hard drinks
Inferences:
•Majority consumer takes decision at the time of purchase
so irrespective of perception of ad, they can be attracted
•FMCG such as Household, hygiene and cosmetic items are
more likely to have opportunity to influence consumers’
decision

19
Q6. When you move toward the cosmetics section, what is it that strikes you most?
Q7. Have you seen or come across the newly-launched ads for Lakme Orchids
range?
5
15
10
0
•Salesgirl •Colorful displays •Beautifully done shelves •Other purchasers
Inferences:
•Arrangement and decoration play a cog in wheel
role to attract customer
•Less likely customer care about launching of
new products but more likely to try & use the new
product
•Yes
33%•No
67%

20
Q8. If answer to question 7 is Yes, then in what media?
Q9. What is your opinion about ads?
12
6
2
10
•Newspaper •Magazines •TV(DD) •TV(satellite)
•Very
good
33%
•Good
60%
•Fairly
Good
7%
Inferences:
•News paper & TV (urbane region) ads are more likely
reach customer
•Mostly ads are liked because of being humorous and
tickling

Citation:
Catchy Taglines
always hit the mind,
But
Product /Brand may
not

22
Q10. When you come to the cosmetics section of this store was the ad in your
mind?
Q11. What did you like in Lakme Orchids range of displays?
•Very
clearly
13%
•Clearly
10%
•Just could
recall
10%
•Could
recall
after
seeing the
displays
67%
5 2
8
15
•Colour •Movement •Positioning •Try and buy concept •Nothing in
particular
Inferences:
•Planograms & displays act as catalyst to ossifying
impact of ads seen by customers
•Major sales take place on the ground of ‘Try & Buy’
whereas positioning & display play fairly good role for
customers’ decision making

23
Q12. What is your opinion about the try and buy concept?
 Confidence in product quality
 Enables decision making to buy a new product
Q13. Would you have purchased Lakme Orchids range if there was no try and buy
scheme?
•Yes
43%
•No
57%
Inferences:
• Try & Buy concept is welcomed to widen the
customer base in market basically for new products

24
Q14. What in your opinion is the decisive factor in making the purchase?
Q15. If you have not purchased, then please give the reasons thereof
4
5
8
4
9
•Advertisement •Store displays •Ads and displays •Salespersons •Try and buy scheme
10
8 8
4
•Highly priced •Limited range of shades •Dissatisfied by previous
usage
•Any other reason
Unfortunately, out of scope of ‘Merchandising’

Parameters
Score Result
1 2 3 4 5 6 7 8 9 10 100%
Overall convenience 2 6 20 2 83%
Quality of products 4 5 2 9 10 75%
Variety available 2 5 5 6 10 2 78%
Sales people 3 5 7 5 10 85%
Price 1 4 5 6 8 6 41%
Quantity 1 1 2 8 8 10 87%
Spaciousness 1 5 8 9 7 85%
Location of store 1 1 5 18 5 88%
83%
75% 78%
85%
41%
87% 85% 88%
Overall
convenience
Quality of
products
Variety
available
Sales people Price Quantity Spaciousness Location of
store

26
RAMMS ‘ Financial Analysis
(Rs. Lakhs)
Year-
1994
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ad
Expeses
37.5 39 42.5 42.5 45 42 47.5 47.5 50 52 51 53.5
Sales 240 260 240 270 280 268 280 300 280 295 310 320
Regression Analysis
ANOVA
df SS MS F Significance F
Regression 1 5374.759 5374.759 34.23068 0.000161
Residual 10 1570.158 157.0158
Total 11 6944.917
Coefficients
Standard
Error t Stat P-value Lower 95% Upper 95%
Intercept 84.63784 33.34589 2.538179 0.029455 10.33857 158.9371
Ad Expeses 4.231538 0.723253 5.850699 0.000161 2.620029 5.843047
Y = 84.6 + 4.2 X (Positive correlation)
Return on Lakme Orchid Ad

0
50
100
150
200
250
300
350
0 10 20 30 40 50 60
Sales
Ad Expeses
Ad Expeses Line Fit Plot
Sales
Predicted Sales
Linear (Predicted Sales)
-30
-20
-10
0
10
20
0 10 20 30 40 50 60
Residuals
Ad Expeses
Ad Expeses Residual Plot
No pattern left undefined by Regression model !
Regression Model is worth!
Inference
Ad Expense Sales
RAMMS ‘ Financial Analysis

28
Response to Case Issues
 With the data collected what type of analysis could be adopted to measure the
impact of ‘Lakme Orchids Campaign’?
Survey data:
Based on sample data collected through survey bar chart and pie chart helped to find
correlations between effectiveness of various merchandising activities and sales
Financial data:
Regression analysis portrays that increase in ad campaign fetches higher sales revenue
 What type of conclusions can be drawn from such an analysis?
 Most of the buying decisions are taken on the spot majorly for FMCG products
 Big departmental stores offering good variety of products with attractive showcasing under
one roof increases perceived value proposition of the product
 Schemes such as ‘Try & Buy’ complemented with advertisement in Newspapers & TVs play
fairly good role in influencing customers’ buying decision
 Failure in meeting the sale of the product is mainly attributed to ‘High Prices’ that is out of
scope of merchandising

29
 Is it possible to conclude that effectiveness of merchandising is higher if
coupled with Ad campaign?
Survey questionnaire
Q10. When you come to the cosmetics section of this store was the ad in your mind?
•Very clearly
13%
•Clearly
10%
•Just could
recall
10%
•Could
recall after
seeing the
displays
67%
Inferences:
• Planograms & displays act as
catalyst to ossifying impact of ads
seen by customers
• Display of the products in store
should be in line with the ads to fetch
more sales

30
 What are the possible limitations?
Limitation of data analysis:
1) Limited & Biased sample-
Sample data are highly biased as these are collected from limited & niche segment of customers i.e. Students
of IISc and social media that may have common cultural and generation effects
2) Spurious correlation-
Regression analysis is done along a considerable period of time; that shows positive correlation between Sales
& Ad but this may have spurious correlation with time as latent variable
Limitation of Merchandising:
1) Limited Scope-
It has limited scope up to product display & delivery; doesn’t touch ‘Price’ & ‘Quality’ component that is major
decisive factor in buying decision
2) Accountability-
Increases price of product & hard to measure the ROI

31
RAMMS at Present
 Part of the prestigious EBELTOFT group, an international consortium of retail consultants
from 14 countries across the globe
RAMMS is India's only premier retail consultancy firm
Video: Global Retail Innovation Trends - NRF Big Show 2014 session by Ebeltoft Group.mp4

Websites
 www.indianretailer.com
 www.ramms.co.in
 www.maa.co.in
 www2.ebeltoftgroup.com
 www.google.co.in
 www.wikipedia.com
Books
 Case Studies in Marketing By Prof. R. Srinivasan
 Marketing Management By Philip Kotler
Tools used
 Microsoft Encarta (Encyclopedia for offline references)
 Microsoft Excel (for data analysis & graphs)
References

Thank you!
He said it….
“Advertising moves people toward goods; merchandising moves goods toward
people.” (Morris Hite)

Marketing ramms

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