Comparative Analysis of Modern Formats of Retail Outlets with focus in Products, Services and Related Attributes” (specific to TATA Croma and NEXT Retail)

1. PROJECT
PRESENTED BY PRASHANT DUBEY
DIGITAZE.COM

2. Comparison between
TATA CROMA
NEXT RETAIL
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The two electronic retail giants mentioned in the study are
TATA CROMA & NEXT RETAIL. The study is prepared on
the basis of data’s that has been gathered in defined
stages.

3. ABOUT TATA CROMA
ELECTRONICS CHAIN #1
TATA Croma Retail (formerly known
as Infiniti Retail Limited) is an Indian
retail chain for consumer electronics
and durables. Established in 2006, it
is a 100% subsidiary of TATA Sons
Ltd.
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It offers 6,000 products and 180
brands in eight categories. These
categories
include
Phones, Camera, Computers, Entert
ainment, Home Appliance, Kitchen
Appliance, Gaming and Accessories.

4. ABOUT NEXT RETAIL
ELECTRONICS CHAIN #2
NEXT Retail India Ltd. is India’s
largest electronics retail chain
(number of stores). Incorporated in
2003, it is a 100% subsidiary of
Videocon Industries Ltd. NEXT
specializes in organized retailing of
consumer electronics, small home
appliances.
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It currently operates over 600
showrooms across 25 states of India
with a presence in 300 cities and
towns under the brand name of
“NEXT.”

5. SEGMENTS OF ELECTRONICS MRKT
01. WHITE GOODS
Heavy consumer durables such as air
conditioners, refrigerators, stoves, etc., whic
h used to be painted only in white enamel
finish.
02. BROWN GOODS
Relatively light electronic consumer
durables which are distinct from heavy
consumer durables.
03. CONSUMER ELECTRONICS
Electronic products other than white
goods and brown goods are categorized
in consumer electronic .
PRASHANT DUBEY, DIGITAZE.COM
CONSUMER
ELECTRONIC
S
WHITE
GOOD
S
BROW
N
GOODS

6. CATEGORIZED GOODS
WHITE GOODS
BROWN GOODS
o
Air Conditioner
o
Microwave Ovens
o
TVs
o
Refrigerators
o
Cooking Range
o
Audio & Video System
o
o
Washing Machines
Chimneys
Mixers
o
o
Electronic Accessories
Sewing Machines
o
o
o
Watches & Clocks
o
Grinders
o
Mobile Phones
o
o
Cleaning Equipment
o
o
Electronic Fans
o
o
o
Digital Cameras
Other domestic appliances
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Irons
CONSUMER ELECTRONICS
PCs
DVDs
Camcorders

7. ELECTRONIC RETAIL CHAINS
#1. TATA CROMA
#2. RELIANCE DIGITAL
#3. NEXT RETAIL
#4. DIGIWORLD
#5. GREE DUST
#6. EZONE RETAIL
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8. ELECTRONIC RETAIL CHAINS
#7. VIJAY SALES
#8. LOTUS ELECTRONIC
#10. VIVEKS
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#9. SALES INDIA

9. Number of Stores
700
DIGI WORLD
550
NEXT RETAIL
149
RELIANCE DIGITAL
130
GREEN DUST
92
TATA CROMA
51
VIJAY SALES
47
eZONE
40
VIVEKS
14
LOTUS
550
310
130
92
SALES INDIA
9
700
Next Retail
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DIGI world
Green Dust
TATA Croma
Others

10. STATES WITH STORES
TATA CROMA STORES
ANDHRA PRADESH
9
NEXT RETAIL STORES
14
ANDHRA PRADESH
DELHI
DELHI
GUJARAT
GUJARAT
HARYANA
HARYANA
KARNATAKA
KARNATAKA
MAHARASHTRA
MAHARASHTRA
CHANDIGARH
PUNJAB
PUNJAB
RAJASTHAN
TAMILNADU
TAMILNADU
UTTAR PRADESH
UTTAR PRADESH
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MADHYA PRADESH
KERELA
WEST BENGAL

11. TATA CROMA SWOT ANALYSIS
STRENGTHS
WEAKNESSES
1.
2.
3.
4.
5.
1.
Trusted Brand TATA
Trusted service offered
Strong presence in Indian Market
Attractive promotional offers
Wide reach all over India
2.
Still hasn't been able to reach across
all major cities.
Faces huge competition.
OPPORTUNITIES
THREATS
1.
1.
2.
3.
Opportunity to enter into other
services like hypermarket
Domestic expansion as well as going
global.
More advertising to increase brand
visibility.
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2.
International and domestic players
entering the market.
Continuous improvement in
technology means difficult inventory
management.

12. NEXT RETAIL SWOT ANALYSIS
STRENGTHS
WEAKNESSES
1.
2.
3.
4.
5.
1.
600 showrooms in 25 states.
Skilled staff in terms of technical.
Reliable and well known brand
Competitive pricing strategy
Videocon support
2.
Customer involvement needs to be
increased.
Provision for customer retention
measures are negligible.
OPPORTUNITIES
THREATS
1.
1.
2.
3.
Could upgrade itself by reviewing
customer feedbacks.
Opportunity to increase footfalls.
Enhance in showroom performance.
2.
3.
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Employee retention is big concern in today’s
world.
Customer are very much cautious about
spending on consumer durable category.
Difficult to target all segments of society.

13. STUDY ANALYSIS

14. OBJECTIVES OF STUDY
•
To understand different aspects or the pillars of the modern retail formats.
•
To learn and study the exact difference between the organized and unorganized
formats in electronics retail.
•
To analyze the proper attributes that create difference between the two retail chain
of the same categories.
•
To compare ambiance of two different modern outlets i.e., at Tata Croma and
Reliance Digital as a part of strategy to retain and attract the customers.
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15. RESEARCH OF METHODOLOGY
•
The research was done by taking one to one questionnaire from the customers.
•
The sampling size which has been taken in to consideration is the convenience
sampling.
•
As the sampling was done on the basis of my own convenience.
•
The sample size of the data was 50 for each store.
•
So the total sample size was of 100 customer.
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16. STORE ATTRIBUTES
21 - Different attributes of Stores
EXTERIORS
INTERIORS
INTERIORS
OTHERS
OTHERS
Walls
Walls
Ceilings
Parking Space
Promotional Scheme
Window Dressing
Int. Signboards
Surface / Floor
Security
Mode of Payment
Entrants
Lightings
Sections
Collection Counter
Ex. Signboard
Pathways
Furniture
Employees
Racks
Waiting Lounge
Point of Purchase
The above attributes of the stores have been taken into consideration to compare the two store chains.
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17. ATTRIBUTES EXPLANATION
TATA CROMA:
NEXT RETAIL:
•
In all the attributes mentioned
for the stores TATA Croma
takes care of all the attributes.
•
NEXT Retail lacks to fulfill all the
attributes. The security guard
and waiting lounge is not
available in the showroom.
•
The prices of the goods are
higher Rs. 50-100 as
compared to NEXT Retail.
•
There are no much promotional
scheme offered by the store.
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18. ATTRIBUTES NOT CONSIDERDED
•
I haven’t considered the following attributes of the stores to come on a conclusions:
1. Escalator provision in the store, if the store is at second floor or have two floors.
2. Time taken in the payment procedure of the customer.
3. Latest variants / versions of the product that are kept in the store.
4. Demo of the product is available or not.
5. Time taken to deliver the goods at the location of the customer.
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19. GENDER OF RESPONDENTS
Genders of 100 Respondents
0%
30%
Males
70%
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Females

20. OCCUPATION OF RESPONDENTS
TATA Croma
Next Retail
78%
36%
26%
18%
10%
12%
8%
7%
0%
Business
Service
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Self Employed
0%
Study
Others

21. DURATION OF VISIT
TATA Croma
Next Retail
42%
42%
36%
34%
16%
14%
10%
6%
Last One Month
Last Six Months
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Last One Year
More than 1 year

22. CUSTOMER POSITIVE REPONSES
ATTRIBUTES
TATA CROMA
NEXT RETAIL
COMMENTS
Main Signboard
82%
68%
LOW-SHADE
Exterior Wall
78%
70%
POOR EXTE. BY NEXT
Main Entrance
72%
62%
GOOD ENTRANCE
Floor Surface
64%
56%
-
Interior Wall
58%
44%
NEXT PLAIN WALLS
Lightings
62%
50%
NO FOCUS LIGHTS
Music
62%
56%
-
Waiting lounge
60%
70%
INAPPROPRIATE
Staff behaviour
62%
62%
NEXT RETAIL LEADS
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23. CUSTOMER POSITIVE REPONSES
ATTRIBUTES
TATA CROMA
NEXT RETAIL
COMMENTS
Pathways
66%
54%
BOTH ARE GOOD
Fixtures & Racks
66%
38%
-
Quality of Product
74%
56%
-
Price Fairness
66%
66%
NEXT LEADS IN REAL
Promotional Schemes
66%
68%
CROMA LEADS IN REAL
Parking space
58%
58%
-
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24. FINDINGS OF STUDY
•
The list of questionnaire included 19 questions of different category. All the questions were
compulsory (to be answered).
•
Out of 19 questions TATA Croma leads in most of the attributes, and hence it can be said that
it is much favorable by the customers as compared to the NEXT Retail.
•
Some of the customers that were coming out of the retail outlet were taking part in filling the
questions enthusiastically. They made a perception that answering the question will be some
contest by the retail outlet. But later on I cleared there doubts.
•
The customer were finding difficult to provide the answer of the 20th question. So most of the
customer left the 20th question blank.
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25. SUGGESTIONS GIVEN
•
Tata Croma and NEXT Retail should adopt better marketing strategies so that more customers
can be attracted towards it.
•
The outlet should provide a unique service that is not provided by any other outlet. The service
can be anything which can add a value towards the services of the retail outlet.
•
There is a huge price competition between both the stores but few customers are seen in the
NEXT Retail store as compared to the heavy crowd in TATA Croma. To up come this
issue, NEXT Retail has to change the way they brand their store or else go for a re-branding.
•
NEXT Retail allows their franchisees to keep different range of products as feasible by their
franchise holders which is not good for a retail chain. Similar categories of products should be
kept at all the stores. For Example: NEXT Retail – Prahladnagar don’t stock the mobile
phones & Air conditioners. But the NEXT Retail – Drive-in-Road stocks both of them. This kind
of issue should not be there.
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26. SUGGESTIONS GIVEN
•
More intense research works should be initiated, studying the specific needs and attributes
sorted by the customer for different kinds of product categories.
•
Parking facilities at Croma should be improved so that customer should not face any problem
while searching for the parking area of their vehicles.
•
The NEXT Retail should adopt the strategy of professionalism. I.e. there should be a specific
dress code for all the employees of the store. They should not be in casual dresses.
•
NEXT Retail should train their staff members in efficient and effective way so that they can
convince the customer to buy the products by developing faith in to them.
•
NEXT Retail must have good schemes and promotional offers so that their customers doesn’t
get switch to other electronics retail outlets.
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27. LIMITATIONS FACED
•
The primary data that has been collected by from the responses provided by the customer cannot be
relayed upon. As the accuracy of the responses can’t be determined.
•
The collections of responses were from a single outlet of the whole retail chain. The study was
limited to Ahmedabad, Gujarat only.
•
The project duration was of short period. The analysis done is just a basic analyses and not in the
depth.
•
Lack of professional approach was made, as the customers were in a rush.
•
The sample size is only 100 so the sample may not be representative in true terms.
•
Limitations were also due to the responses of people and owner of the retail stores.
•
Even limitation was due to attitude of the people were not co-operative one, and literacy level to
judge the people was rather been the main limitation faced during the endeavor of the questioner fill
up – data collection.
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28. CONCLUSION MADE
•
Finally, it is important to note that these strategies or the layouts attributes @ Tata Croma and
NEXT Retail, are not dependent on each other; value is function of not just price, quality and
service but can also be enhanced by Personalization and offering a memorable experience.
•
In fact, building relationships with customers can be itself increasing the quality of overall
customer experience and thus the perceived value.
•
But most importantly for winning in this intensely competitive marketplace, it is critical to
understand the target customer's definition of value and make an offer, which not only delights
the customers but also is also difficult for competitors to replicate.
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29. WHAT CROMA CUSTOMERS SAID
One of the best store for
electronic products…
Its warm inside the store..
TATA CROMA’s CUSTOMERS
Any suggestions for better functioning
of store?
•
Need of Active salesmen…
Vidhi
Ashok
Lakhwani
Amara
Khan
PRASHANT DUBEY, DIGITAZE.COM
I received total 19 responses from the
customer of TATA Croma.
•
Most of the suggestions where
positive.
•
The customer didn’t feel comfortable
to provide any comments.

30. WHAT NEXT CUSTOMERS SAID
Very small store… with few
products..
Need to increase number of
counter…
NEXT RETAIL’s CUSTOMERS
Any suggestions for better functioning
of store?
•
Good Store.. I liked it..
Stavan
Rawal
R.A.
Chandroo
Mahiti
Pillai
PRASHANT DUBEY, DIGITAZE.COM
I received total 7 responses from the
customer of NEXT Retail.
•
Most of the suggestions where
negative.
•
The customer didn’t feel comfortable
to provide any comments.

31. THANK YOU FOR YOUR TIME
HOPE THIS TIME MY PROFESSORS WILL GIVE ME GOOD GRADES THAN EALIER.