The document discusses segmenting customers of bookstores based on a survey. It identifies 5 key customer segments: 1) young browsers, 2) family shoppers, 3) book lovers, 4) value seekers, and 5) premium buyers. Each segment has distinct characteristics, needs, and preferences. The document recommends strategies for bookstores to better cater to each segment, such as creating specialized sections, holding events, and bundling related products. It also discusses optimizing the layout and merchandise to improve the customer experience.

2. To benchmark national and international bookstore
chains with respect to the non-books category
To determine the appropriate non-books merchandise
range within a bookstore
To study feasibility of private labels in the non-books
category
To propose strategies to drive the non-books category
business for Crossword

3. In-depth Interviews: 8 Males, Quantitative Analysis
7 Females, 2 Employees of through a Strategic
Landmark Lucknow, questionnaire. Data Analysis direction
Employees of Odyssey (Trichy), Responses from using SPSS, based on
Landmark(Lucknow), Mumbai, Bangalore, Ch Excel the
Shopper studies at Landmark ennai, Delhi, Ahmedaba findings
Lucknow, Crossword Chennai d, Lucknow

4. People visit a bookstore with the Most of the promotions, special events
Through 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)
http://www.youtube.com/watch?v=em
cOKblKELk

5. 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.
expensive
Based on these insights, we have segmented the consumers and given recommendations accordingly

6. 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 convenience
Based on user preferences of parameters like
Price, Convenience, Variety, Ambience,
Experience, Layout, Assistance and
Overall customer preference

7. Not difficult
M
L e
Landmark has more non-product offerings o r
 Survey results clearly indicate higher percent c c
a h
of (36%) people feeling that the store is too t a
Its ok Crosword
cluttered i d Landmark
 People feel Landmark is more cluttered when n i
g s
compared to Crossword even though it hasn’t e
Difficult to find items
affected too much on its store preference
 But it would become be a deterrent in the
amount 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

8. Segment Characteristics Needs/Preferences
Young  19-23 years – Students  Attractive display
Browsers  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

9. Segment Characteristics Needs/Preferences
Family  26-40 years – Working  Atmosphere engaging kids
Shoppers 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

10. Segment Characteristics Needs/Preferences
Book  Visit with friends/alone –  Need good collection of books
Lovers 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

11. Segment Characteristics Needs/Preferences
Value  23-29 years – Entry-level job  Affordable quality
Seekers positions products/Variety (especially
 Price-conscious, Gifts searchers, gifts)
Recent visitors  Offers would interest them,
Good ambience preferred

12. Segment Characteristics Needs/Preferences
Premium  35 years and above, Income 15-  Unique collections of lifestyle
Buyers 50 lakh products
 Less frequent (Visit when time  Home decor, watches, pens,
is available) bags, ties, cufflinks etc.
 Visit alone, SEC A category

13. 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

14. 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

15. 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

16. 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

17. 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.

18. 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

19. Gaming Set up a small gaming area-consumers can try
consoles
Stock more consoles like Sony PS2/PS3/PSP

20. 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

21. 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

22. 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

23. Gift Items Unique and exotic gifts; Stock premium,
region-specific and traditional gifts

24. Private Customized Gifts/Mugs/T-shirts with prints
Labels (order and pick up later, browse other
categories meanwhile)
Toys/Home décor/Stationery – Specifically
target value seekers

25. • Interactions with singers, musicians
Events • Launch events of independent music labels
• Gaming contests in the summer
• Rubik’s cube challenge
• Package related items together
Bundling • Books, DVDs of movies based on the book,
Music CDs, Movie posters

26. Gaming • Customers can play , try various
Corner consoles and new games
Kiosks
• Print pictures on mugs and t-shirts
• Get their portrait sketched

27. • Tables with jigsaw puzzles and board games
Board can be placed across the toys and games section
Games
• 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 organized
Corner
• Parents will stay in the store for longer duration
• This will have a positive impact on the sale of toys

28. 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 BOOKS
Activities to engage the customer Prominent distinguishable section
for Promos

29. User perceptions
The ANOVA test shows significant
difference between the perceptions
among customers that in Landmark,
it is tougher to find items as they
have too many products compared to
Crossword
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

30. 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

31. Bookstore Customer Segmentation
Cluster Analysis was done to come up with the segmentation of customers in bookstores.
Five cluster solutions was identifiable. Based on these, ‘Looking for entire family
needs’, ‘Presence of Limited Category’, ‘Difficulty in finding’ were the significant
factors that can be distinguished across clusters along with other demographic variables