Tata Croma eCommerce GTM (Go-to-market)

TATAthaiya
❖ Janmejay Dave
❖ Pratik Dave
❖ Khyati Dattani
❖ Akshay Kohli
CROMA RETAIL

SWOT Analysis of CROMA
Strengths
1. Trusted Brand TATA and first large format
specialist in retail chain for consumer
durables
2. Excellent variety of products
3. Trusted service offered
4. Strong presence in Indian consumer
durable market in major Tier 1 cities
5. Attractive promotional offers for bulk
buying
Weakness
1. Fewer stores compared to competitors
2. Unsatisfactory and sloppy customer
redressed system
3. Weak presence in Tier 2 cities
4. Very poor presence on social media
5. Sale through e-commerce limited to
only few cities
Opportunities
1. Huge market for consumer durables info
tech (CDIT)
2. Expansion to more number of Tier 1 and
Tier 2 cities
3. Increasing sales through e-commerce
4. Decreasing prices of electronics and
increasing purchasing power of consumers
5. Opportunity to enter into other services
like hypermarket
Threats
1. Strong price competitiveness in
electronics industry
2. Stiff competition from competitors
3. High inflation rate discouraging local
buyers
4. Continuous improvement in technology
means difficult inventory management
5. International and domestic players
entering the market.
Key Advantages:
1. Trust for TATAS
2. Wide product range to choose from
3. Trusted Service post purchases
4. Excellent presence in major Tier 1 cities
Key Drawbacks:
1. Comparatively higher prices compared to online players
2. Lack of holistic buying experience
3. Dissatisfactory user experience of the mobile app
4. Weak presence in Tier-2 cities

Determining optimum strategy
Target User
Base
Internet
Penetration &
projections
Online v/s
offline buying
Competitor
Analysis
Leading offline
competitor
analysis
Leading online
Competitor
Analysis
Product
Analysis
Customer
Segmentation&
mode
Volume Analysis
INITIATIVE
FOCUS
&
POSITIONING

TABLE OF CONTENTS
TARGET USER BASE: INTERNET PENETRATION AND ONLINE BUYING IN INDIA
STATE OF CONSUMER RETAIL AND GROWTH OF E-COMMERCE IN INDIA
SWOT ANALYSIS OF RETAIL SPACE
COMPETITOR ANALYSIS: ONLINE AND OFFLINE COMPETITORS
PRODUCT ANALYSIS: PRODUCT/BUYER SEGMENTATION
CROMA BIG BANG STRATEGY: SHORT TO LONG TERM INITIATIVES
CROMA BIG BANG INITIATIVES (1 TO 5)
FINANCIALS

Internet Penetration & Projections
2012 2013 2014 2015 2016 2017 2018
Internet Penetration(% of total population
in India)
Internet Penetration(% of total population in India)
• Internet penetration in India is
only 23.01 % as on 2015 and it
will reach to 32.85 % in 2018.
• Steep rise in online penetration
from 295 million users(2015) to
437 million (2018)

Internet Penetration & Projections12.58%
17.04%
19.19%
23.01%
25.91%
29.18%
32.85%
2.88%
4.00%
4.68%
5.98%
7.00%
8.17%
9.53%
2012 2013 2014 2015 2016 2017 2018
Internet User vs Online Buyers
Internet Users (% of total population) Digital Buyers(% of total population
• Digital Buyers: 5.98% of total
population of India.
• Rest just use internet to review
products.
• Besides a large customer base
may not use internet.
76.8
119.7
0
50
100
150
200
2015 2018
Digital Buyers
Digital Buyers

State of Consumer Retail
India set to become
fifth larges consumer
durables market in the
world.
India is one of the
largest growing
electronics market in
the world.
India will reach to fifth
from twelfth in the
consumer durable
market by 2025.
By 2020, the electronics
market of India is
expected to increase to
USD 400 billion from
USD 69.6 billion in 2012.

Growth Of E-commerce
•Electronics has about 34% market
share in the e-commerce retail
market.
3 2
34
30
15
10
6
Retail Market Share %
Healthcare
Baby Products
Electronics
Apparels and
Accessories
Books
•E-commerce Retail is estimated to
grow at a CAGR of 60% YOY from $6
billion in 2015 to $ 40 billion in 2019.
•At present Croma generates Rs. 1.5-
2 Crore revenue per week from
cromaretail.com
6 9.6
15.3
24.5
40
16
25
39
62.5
100
0
50
100
150
2015 2016 2017 2018 2019
e-Commerce Retail e-commerce

▪In 2013, out of 800 million
transactions, 53% were made
using debit/credit cards- others
Cash On Delivery - high reliance
▪7 out of 10 customers will shop
from mobile in 2016

SWOT Analysis of Retail Space - Bricks and Mortar
Strengths
1. Large number of offline buyers
2. Customer can feel and experience the
product
3 Better rapport with customer ;
4 higher possibilities of re business from
same customers
Weakness
1. Difficult to reach across all major cities
which might be potential market
2. Investment hassles and high additional
maintenance/operational costs
3. Despite being a strong player in India,
faces market share competition from
international and unorganized market
Opportunities
1. Domestic expansion can help to capture
the large offline market
2. Large opportunities in service , demo and
resell market
3. Store enhancement for better customer
experience
4. Using latest technology can help analysing
customer buying pattern
5. Giving end to end customer experience
from helping them to buy
Threats
1. Indian customer is price sensitive and
aware of market price
2. Difficult to compete with ecommerce
vendors like Flipkart , Snapdeal

SWOT Analysis of Retail Space - e-Commerce
Strengths
1. Increasing access to Internet & mobile
phones
2. Increasing purchasing power of aspiring
working class
3. Increase in organised Retail
4. Faster reach
5. Better Delivery SCM
Weakness
1. Only 18% of online users are buyers
2.Lack of better Buyer Experience
3. High Dependence on COD
4. No Look and Feel of the product
5. Less Volumes in High Margin Product
6.Product Cannot be experienced pre-sale
7. Low Average Order Value
Opportunities
1. Better Analytics and technology
2. Increasing Online Spending
3. Better Online payment options
4.Customer Centric approach & Social Media
Threats
1. Strong price competitiveness
2. Heavy Losses and low profit margins
3. Dis loyal Customers
4. Disruptive Technologies
5.Huge Unorganized Retail Sector

Croma’s Competitors
Offline Competitors Online Competitors
NEXT
RELIANCE DIGITAL
DIGI WORLD
E ZONE
VIJAY SALES
SALES INDIA
GREEN DUST
FLIPKART
AMAZON
E BAY
SNAPDEAL

Offline Competitors
• The top offline
competitor selected on
the basis of the major
initiatives taken in the
past 1 year
• The fastest adaptation
to the changing market
environment
• Most relevant and
dominant strategy
formulation
Offline Competitors Statistics

Offline Competitors
>800 cr revenue
>Group promoter
Videocon merges
operations to
improve
efficiency
>3044 cr
estimated
revenue
>Adopts omni
channel strategy
>Focus on
customer
experience,
installation and
service support
through its
inhouse service
network,
Reliance resQ, to
wow online
customers
>500 cr
estimated
revenue
>Group promoter
Videocon merges
operations with
Next & Planet M
to improve
efficiency
>Owned and
operated by
Reverse
Logistics Corp.
>Refurbished
goods retailer
>Launches B2B
e auction
platform in
2014
>2023 cr
revenue
>Followed the
lot of chain
stores & opened
its online store
>Local retail
store chain also
forays into an
online platform

• Promoted by Future Group, having significant
prominence in Indian Retail
• Group’s Net income of 1000 cr (approx.)
• Investing 100 cr in Omni Channel strategy &
tie up with specialist (hybris)
• Tie ups with Amazon to boost sales
• Management’s focus to tap into its core strength
and presence in the retail sector
• Future plans to trickle the model to other brands
(i.e Big Bazaar
E Zone Retail Omni Channel Strategy
Drivers
Assumptions
Current Strategy
Capabilities
Offline Competitors
• Long term presence in the retail sector
• Possibilities to harness the inter-brand connections
& know-how
• Exploiting multi sector presence to boost cross-
selling

Online Competitors
• The top online
competitor selected on
the basis of market
penetration and user
base
• The fastest adaptation
to the changing market
environment
• Most innovative and
majority initiatives taken
for aggressive expansion
Online Competitors Trends
Offline Competitors

1
• User base of
more than 22
million registered
users
• Gross
merchandise
value of $4 billion
• Valued at $11
billion
• Backed by US
investment
behemoth Tiger
Global
Management
2
• Registered User
base of more
than 25 million
• Tie ups with
Croma for
bilateral
benefits
• Ratan Tata
invested in the
venture
• Has Raised
approximately
$700 million
recently
3
• New Entrant in the
market with
Amazon Backing of
$2 billion
• Fastest growth in
the last 2 years
among competitors
• Expertise in
technology and
Data Analytics,
supported by
Amazon USA
• Only Global player
in the market
Online Competitors

• First mover Advantage; backed by fresh
funding and bright IPO prospects.
• Market leader in users and revenues
• Large number of sellers
• More funding to scale up reach and increase
user base; investing in better online user
experience
• Robust and diversified marketing strategy
• Heavy Discounts and Low prices
• Focus on increasing user base in the B2C market
• Focus on mobile as the main driver for growth
Flipkart scaling up its e-marketplace
Drivers
Assumptions
Current Strategy
Capabilities
Online Competitors
• Biggest User base and growing
• Fresh funding, High valuation & IPO porspects
• Heavy investments in warehouses and resources
• Heavy Relience on Cash on Delivery (50%)
• Huge losses due to a price sensitive market
• Focus on Apparels and Merchandising-High Margin

Product/ Buyer Segmentation
33
27
31
23
0% 20% 40% 60% 80% 100%
India
Brazil
China
USA
Online Spend as % of disposable Income
% of disposable Rest
Average Household
Income
$6393 in 2010 to
$18448 in 2020
Urbanization 31% in 2015 to
40% in 2020

Hybrid Model for maximum leverage
Strengths &
opportunities
of Physical
Stores
Flexibility
& reach of
Online
Selling
Multi-
channel
Selling
✓Farther reach
✓Better customer
insights on account
of expanded user
base
✓More sales in
more places
✓Possibilities to
leverage multiple
feedback channels
✓Faster response
time to changing
trends
Benefits

TOP 5 INITIATIVES
EXPERIENCE STORE
B2B FOCUS
M-COMMERCE AND CRM/ ERP
RETAIL FOCUS
GREEN DUST TIE-UPS

Create e -account of
customer using given
token.
Customer Entering the store
will be given a token When customer likes a product ;
she will swipe her electronic
token to record her preference
During exit the customer deposits the token.
She will be asked for her contact details for
further communications.
Customer can manage all her affairs( Wish
list , orders, new purchase ) via app/
website
Experience Store
During the experience customer will
be asked to download croma mobile
application using free croma Wi-Fi
Benefits
1. Converting offline customer to online customer
2. Better customer relationship; Continuous customer
connect
3. Better data gathering
4. Better customer preference gathering

B2B Focus
B2B retail in India is right now worth $300 billion, which will expand to $700 billion by 2020.
Need for a CDIT focused B2B e-commerce platform.
Why B2B CDIT?Why B2B? Benefits of B2B B2B Competitors
• 90% of global retail
is B2B
• Higher volumes
• Longer
relationships with
customer
• After sales service
contracts
• No restriction for
FDI in B2B in India
• 100 Tata Group
Companies
• Tata values and
Brand
• Strong after sales
services and online-
offline presence
• Lack of CDIT focus
in B2B
• Better
understanding of
customer, Products
• Better prices as
compared to
competitors
• Long terms
revenues and
better profit
realization
• WalMart
• Amazon
• IndiaMart
• Alibaba

B2B Focus
Helping Corporate
sell more of their
products to their
customers
Bundling of
products and
catalogue visibility
Provide a platform
for online
inventory
management of
the purchase to
Businesses, esp
SMEs
SMEs and Business
are largely brand
insensitive.
Croma’s private
label products can
be sold to them
Collaborations with Real estates,
Hotels , Restaurants , IT , University
etc.
TATA Housing :
• Bundle CDIT packages with the
sale of Tata Value homes
• Range of Bundle packages
(Refrigerators, TV, Washing
Machines, Microwaves etc. )
• Better Discounts for Tata Value
Home Buyers
• Tata Value home Buyers will get
a Croma Lifetime Card
Corporate Focus

B2B Focus
• Croma retail should have a Platform for
Buying CDIT Goods
• Visiting Corporate/SME customers should
be allowed to make an account or submit a
query
• “We help you buy” – short welcome
questionnaire to gauge the needs of the
buyer.
• Specific Catalogues
• Bundle offers
• Bundles can be bought online instantly and
for other queries Croma will schedule call
back.
• Post-Sales online Inventory management of
products
• Online reminders for AMC, renewals,
Returns, repair, all end-to-end issues
related to products complete CRM.
Corporate Customer Approach

M-Commerce and CRM/ERP
Vendor
Database
User
Database
Sales
Estimation
Analyzing
User’s
buying
pattern
Reporting
Statistics
Inventory
Purchase
Finance
Warranty
Tracking
• Tracking of buying patterns
using analytics
• User can check warranty of
purchased products
• Enhanced user experience
• User can extend service /
warranty period online
• Corporate customers can resell
their products via croma
• Inventory management, vendor
management
• We can provide better SCM for
customer

M-Commerce and CRM/ERP
Customer had a wishlist saved
on her mobile app.
She gets an additional
offer on her mobile app
to save on e-wallet She reaches the store to take demo of
her wish list; at this time croma has her
wish list & prepares a personalized offer
for the customer
Giving customer
some loyalty points to
generate re business
Store manager can review
user profile and give
multiple options and offer
to her ; manager can
locate the next possible
store if it does not
available in his store &
deliver her the requested
product.

Retail Focus
Collaborate with
small local CDIT
stores to get closer
to customers
Make Stores Croma
Certified stores
leveraging the
Croma Brand
Utilize stores for
after sales services
and online buying
kiosks
Provide on the
move Store pick up
or delivery
The nearest store
or manufacturer
contacts customer
for immediate
delivery
The mobile
app offers nearest
pickup options on
the map
On the move
mobile customer
opts for Deliver
NOW
Utilizing the
Croma Certified
Store Network,
Croma can
Offer
Tap the Local Store Advantage
On the move immediate product delivery
It’s all about Convenience!!!

Retail Focus
Customer
Analysis
• Personalized offers based on buying patterns of the user
• Mobile notification and bundle offers based on customer’s
purchase power
Social
Analysis
• Social media integration to understand user’s likes, hobbies etc.
• Reminders before a week of Birthdays and anniversary
• Links to product demo videos and product social media pages
Loyalty
Bonus
• After cumulative purchase of 10,000 Rs. , Customer gets a free
gift
• After cumulative purchase you will get discounts
Online Checkout options
Faster Cheaper

GreenDust tie-up
GreenDust Product Lifecycle
Value add-in
Center
Warehouse
Online Sales
Franchisee
Customers
Returned
Refurbshied

GreenDust tie-up
Opportunities Enablers Impact
• Product 25 – 30%
Discount
• Can increase
higher sales from
tier 2 – 3 cities
• 60% repeat buyers
on greendust
• OEMs sells to
greendust through
revenue sharing
and Outright
purchase models
at 40-80% discount
• TATA brand behind
greendust for used
product in
corporates
• 4-6% stock returns
from customers
• Reselling done
with TATA labelling
under croma
certified store
• Opportunities
valued at ~ INR 75K
Cr.

CROMA Strategy
Immediate < 1 year Short Term ( 1 to 3 years) Long Term (3 to 5 years)
Integrating with other initiative
channels to provide complete
multi-channel shopping
experience
Integration
Identify
demo stores
with token
system in
place for
sampling
purpose
Analyzing
trends and
gathering
insights
from
sample
stores
Extending number of experience
stores/kiosks
Initiative 1:
Experience
Store

CROMA Strategy
Locate all
businesses in
vicinity using
CROMA
CLOUD &
Google maps
integration
Organizing
special demo
events at
corporate
centers/B-
Parks to entice
Customers
Providing businesses with
special corporate accounts
& explain benefits of
engaging with TATA brand
Integration of
CROMA CLOUD
with business
customer’s
ERP
Converting
corporate
employees
into retail
buyers
experience
Initiative 2:
B2B Focus

CROMA Strategy
experience
Initiative 3:
m-Commerce
Re-
inventin
g the
app to
support
CROMA-
CLOUD
Developing features like
Cultivating a
mobile app user
database to
determine
loyalty targets
Device
personalized
offers based
on customer
loyalty and
volume
purchases
Promotions

CROMA Strategy
Integrating with other
initiative channels to
provide complete multi-
channel shopping
experience
Initiative 4:
Retail Focus
Collaboration
with local
stores in Tier
1 & 2 cities to
get better
reachability
Cumulative
purchase offers
& loyalty points
on using app,
social media
promotion
Local store tie-
ups to have
Croma-
Certified Stores
for better
service
Providing on
the move
pick up &
delivery
options from
customer’s
account
Social media integration &
monitoring
Nearest Croma
certified store
locator

CROMA Strategy
experience
Initiative 5:
Corporate discard
& defective resell
Corporate discard reselling
on own site /tie up’s site
Tie ups with refurbished
equipment reseller
Greendust
Replacement
policies and
delivery
models

49
Assumptions: (Normal)
Year of implementation: 2015-16
Sales Growth by 15% on Strategy
Implementation and considering
Retail growth
Projected Sales increase of 30%
for Year 2 as per Annual report
Cost of sales increasing by 5%
Operating Expenses increasing
by 5%
Assumptions: (Boom)
Sales Growth by 20%
Assumptions: (Recession)
Sales Growth by 5%
Financial Projections

Financial Projection
50
33000
37950
43643
50189
57717
66374
-10 717 4941 9617
16094
23054
-20000
0
20000
40000
60000
80000
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
InMillionRupees
Financial Year
Revenue
Operating Profit
0
20000
40000
60000
80000
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
RevenueinMiiilionRs
Year
Revenue Normal
(15%)
Revenue Recession
(5%)

Tata Croma eCommerce GTM (Go-to-market)

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