This presentation captures Furtados, at Alpha One Mall in Ahmedabad. The format of this store, consumer insights, and consumer buying behaviour have been analysed in this presentation.

1. URBAN RETAIL STUDIES

2. Organised Retail SectorUnorganised Retail Sector Source: KPMG, 2015
Indian Retail Industry Urban Retail In India
Modern Trade Numbers That Count
• India has high market potential, low
economic and political risk
• Ranks 11th in terms of market potential
• Net retail sales are quite significant among
emerging and developing nations
• Vast middle class is driving retail in India
• India is the world’s fifth largest global
destination in the retail space
• Rising need for consumer goods have made
more people invest in the Indian retail space
• Modern trade can be observed in the form of
shopping centres and multi-stories malls
• As of 2014, penetration of modern trade is
19%
• One-fifth of Indian shoppers regularly shop at
modern trade stores.
• Retail industry accounts for 10% of
India’s GDP
• It accounts for 8% of India’s employment
• By 2018, the Indian retail sector is likely
to grow at a CAGR of 13 per cent

3. Established in 1865, Furtados is
India’s leading online store for
musical instruments, printed sheet
music, music books and music
accessories. It is India’s leading
retail music brand with over 20
physical stores across the country.
We visited the Furtados store in
Alpha One Mall, Vastrapur.

4. Window Advertising Space
Low MRP Products; Accessories
and Care
High MRP; Attractive Products
Impulse Purchases, Care Products,
Mid Range MRP
Branding of Products
Billing Counter
Product Accessories
Product Accessories
Mid to High MRP Products
Niche Products; Mid to High
MRP
Niche Products; Drum Sets,
Cajons, Udu’s, Djembe’s, etc
Complementary Products
Low to High MRP
High MRP, Attractive
Low to High MRP;
Low to High MRP;
Product Accessories
High Quality Ad On Window
Entrance

5. Low to Mid Range Products High End Products
Accessories Accessories
Amplifiers; Fender, Vox, Line 6; Rs. 8,000-30,000
Acoustic; Fender, Cort, Granada; Rs. 5,000-20,000
Electric; Fender, Cort, GB; Rs. 10,000-25,000
Amplifiers; Fender, Vox, Line 6; Rs. 40,000-2,50,000+
Acoustic; Fender, Taylor, Gibson; Rs. 20,000-70,000+
Electric; Fender, Gibson, PRS; Rs. 25,000-1,50,000+
Acoustic; Kawai, Steinway, Yamaha; Rs. 25,000-
1,50,000+
Acoustic; Pearl, Sonor, Yamaha; Rs. 25,000-1,50,000+
Electric; Casio, Yamaha; Rs. 10,000-30,000
Picks, Strings, Cables, Pedals, Tuners: Rs. 10-10,000 Sticks, Cymbals, Heads, Pedals: Rs. 1,000-90,000

6. ADVERTISING
• Since Furtados is an old brand with high brand recall for
people in the music industry, who are the target
consumers for them
• They don’t have television or newspaper advertisements
• In Store advertisements include banners, posters and
danglers
• Other forms of advertising include distribution of
pamphlets to music schools and teacher – artist support.

7. MARKETING
• Marketing is done exclusively through
sponsor ships and tie ups
• Furtados sponsors competitions like
MTV launch pad by providing gear like
drum kits, amps, and pianos
• Furtados has tie ups with shows like
MTV Coke Studio and MTV Unplugged
• They also rely on word of mouth
marketing.

8. CUSTOMER BASE
• Targets musicians and those
who are interested in learning
to play a musical instrument
• Customers who entered the
store could be classified into
three types:
 Those who came, looked
around the store and left
 Those who came, tried
various instruments,
engaged with the products
and then made a purchase
 Connoisseurs of music
who knew exactly what
they wanted and made a
purchase
• 40% of the customers are first
time learners

9. SHOPPER BEHAVIOUR
• All the instruments on display can be
tried
• There is high engagement
• The products aren’t attached to wires
that limit the space of engagement. No
demo pieces in the store means that
what you see and feel is what you get.
• Beginners and experienced users we
witnessed, both tried the instruments.
• They browsed all the other instruments
• They purchased associated accessories.
For example, a shopper who bought a
guitar, also bought a guitar strap and
strings.

10. CONSUMER INSIGHTS
• Life-Span: The life-span of an
instrument will be a lot longer than
that of its accessories. People would
make repeat purchases for music
instrument accessories like strings,
picks, string cleaners etc., at regular
intervals.
• Buying patterns: On weekends the
sales were mostly made to college-
going students and on weekdays,
families used to come to make the
purchase.
• Trial: Every customer would try the
product, irrespective of the fact
whether they buy it or not.

11. DISTRIBUTOR NETWORK
• Most musical instruments sold are
imported
• Mumbai is the base point for all
imports. From here they are shipped
straight to one of the stores
• In some cases instruments are shipped
from Goa
• There is no third party involvement
• For Gibson guitars, Furtados is the only
licensed distributor in India

12. SALES, DEALS AND DISCOUNTS
• Some sales are made on MRP, but according to the store
manager, Shalin Christian, 8/10 consumers ask for discounts
• Since prices of certain products like acoustic pianos can go up to
INR 3,50,000, there are tie ups with banks for various EMI
schemes

13. CONSUMER LIFECYCLE
Amateur buyer  Low-value investment in one product category 
Customer invests in accessories and care  High-value investment in the
same product category  Customer invests in accessories and care

14. THANK YOU
Aditya N Banerjee
Brand Management,
Section B