Project on consumer Behaviour at Shoppers Stop ltd.

Consumer behavior at Shopper’s stop

A Study Of

“Customer Behavior at Shoppers’ stop”

Submitted in partial fulfillment of the requirements for the award of

The degree of

Master of Business Administration

Submitted to:

Punjab Technical University

Jalandhar

By:

“Shivraj Singh”

“Regd No”

9212400048

Under the guidance of

Prof. Nimbel Vivek, Faculty of IIBS (Bangalore)”

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

BANGALORE – 560 032

2009 – 11

MBA project submitted to PTU (2011) 1


DECLARATION BY Student

I hereby declared that this project titled “ Customer Behavior at

Shoppers’ stop “ , is submitted to the Punjab Technical University as a

partial requirement for the award of Degree of Master of Business

Administration, during the year 2009-2011It is the record of an original

& independent study carried out by me, under the able guidance and

supervision of Pro. Nimble vivek of “International Institute of

Business Studies”, Bangalore. This project report has not been

submitted earlier by me or by anybody else for the award of any other

degree in any University in India or abroad.

Date : Signature of the Student

Place : ( Name of the Student )

Shiveraj Singh



WELCOME TO SHOPPERS STOP



ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of our project work not only to one individual as

this work is integrated effort of all those who concerned with it. I want to owe our thanks to

all those individuals who guided us to move on the track. This report entitled “A study of

India Mart And its Value”. We sincerely express our gratitude and lot of thanks to Prof.

Nimbel Vivek (Faculty Guide) for helping us in completing our project work and making it

a great success. I would like to express our deep sense of gratitude to staff members of

International institute of Business and studies, who introduced us to the subject and under

whose guidance we are able to complete our project. Last but not least, I would thank all our

friends, faculty members and all respondents who rendered their precious time for

contributing their skills and to fill the questionnaire, which made my project more appealing

and attractive.

Date : Signature of the Student

Place : ( Name of the Student )

Shiveraj Singh



Executive Summary

Today, shopping is becoming more a delightful activity, then merely

looking for and buying products or offerings that satisfy one’s wants. The

process of acquiring these products is all the more fascinating to many. With

the retail environment undergoing a huge metamorphosis, a customer now is

more involved in the process of seeing, choosing and selecting what he wants,

and this can be done at his own leisure, space and time.

Initially, shopping was known to be inherently a female activity, but as

the offerings for males has also increased and people demand better lifestyles,

the male shopper also takes care about what is to be bought and after how

much of examination.

Shopper’s Stop, being a family store, caters to all kinds of customers and to

the entire family. The store is frequented by shoppers of various profiles and

ethnic diversities which is a big challenge for the store.

The objective of this project was to do a analysis of Customer Profile of Shoppers’ Stop The survey helped us to know what was going on in the customers mind, a sample was studied to know what kind of products they were looking for, if the products were found, communication through signages and effect of displays, staff approach and views on their shopping experience at Shopper’s Stop.

The survey was done to know :

Customer profiling - Who is buying & Who is not ?

What are Customer Buying Preferences in SSL ?

What are Customer Buying Preferences in mall ?

Catch ment area for Garuda mall.



The methodology used was : Questionnaire , interviews , survey of Garuda

mall & its catch ment area , competitors . The main customers of Shoppers’

Stop are Customers who are in the age group 25 years – 35 years . About 60%

of them are working. The customers of Shoppers’ Stop are modern urban

double income group people who have the purchasing power to spend on

branded wear. The average value purchase that they do is mainly from Rs

1500-3000.

The findings of the survey throws light on the income group of the customers, the frequency of visit etc & customers suggestions & feedback. The second survey is conducted for understanding the customers & their views about product they are looking for and where will they like to shop it from.

Indian fashion consumption is fantastic today and Indian fashion designers are selling costumes at higher average prices than even those of international designers. Bollywood superstars are further seducing the consumers through direct consumption of luxuries of various kinds.

Attitudes have changed. The attitude of people has gone from saving nature to spending nature, from basics to lifestyle. They are spending more on luxury items, design and quality has acquired greater significance and women are really coming out of the closet. Overall u sees women taking lead roles, becoming entrepreneurs and this leading to big changes.



TABLE OF CONTENTS

No. TOPIC PAGE No.

Chapter.1 Introduction 8-9

Chapter.2 Research methodology 10-13

Chapter.3 Review of literature 14-15

Chapter.4 Profile of company 16-57

Chapter.5 Analysis of interpretation of data 58-69

Chapter.6 Summary of findings ,Conclusion& Recommendation 70-76

Chapter.7Bibliography 79

Chapter.8Annexure 80-83



1. Introduction.

RETAIL INDUSTRY

In the Indian retailing industry, food is the most dominating sector and

is growing at a rate of 9% annually. India retail industry is progressing well

and for this to continue retailers as well as the Indian government will have

to make a combined effort. The branded food industry is trying to enter the

India retail industry and convert Indian consumers to branded food. Since at

present 60% of the Indian grocery basket consists of non- branded items.

India retail industry is expanding itself most aggressively; as a result a

great demand for real estate is being created. Indian retailers preferred

means of expansion is to expand to other regions and to increase the

number of their outlets in a city. It is expected that by 2010, India may have

600 new shopping centers.

The Indian retail market, which is the fifth largest retail destination

globally, according to industry estimates is estimated to grow from the US$

330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015.

Simultaneously, modern retail is likely to increase its share in the total retail

market to 22 per cent by 2010.

Continuing the robust growth of the organized retail in India, according

to the Credit Rating and Information Services of India, the industry raked in

US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in 2006-07,

a whopping growth rate of 49.73 per cent.

India retail industry is the largest industry in India, with an employment

of around 8% and contributing to over 10% of the country's GDP. Retail

industry in India is expected to rise 25% yearly being driven by strong

income growth, changing lifestyles, and favorable demographic patterns.



"The story is not about us, but this story is about the people who visit

our stores. This is a proud moment for India."

One of the biggest retail here in India we know is RAHEJA’s SHOPPERS

STOP. Shopper's Stop was founded by K Raheja Corp in October 1991 with

its first store in Mumbai. From being a men's ready to wear store it soon

evolved into a complete family lifestyle store. As of 2008, Shopper's Stop had

1.3 million sq. feet. of retail space spread across 24 stores in 11 cities in India

with a retail turnover of over Rs. 12.07 billion.

Thus here we will know about the company profile, operations and also

about the consumer behavior towards the schemes, discount, etc which are

offered by the store to facilitate customers.



2. Research methodology

Objective of research study

2.1. MARKET ANALYSIS

The research objectives of this project are:-

a). Marketing activities and operational activities are always driven with an aim

of getting sale increased with innovate ideas. Offers are designed in such a manner

that customers are made to go and experience the shopping. Marketing also gives

some offer to increase the bill size, taking in consideration the on going fashion in

vogue.

b). Marketing Strategies targeting the customer: Advertising Strategy –

Understanding the media consumption habits of the customer.

c). understanding the consumer behavior & its implication in business.



2.2. SOURCE OF DATA

a. SURVEY METHOD

Data are usually collected through the use of questionnaires. The data

is collected by mean of simple survey done in the retail store of the

customers.

b. CROSS-SECTIONAL SURVEYS

Cross-sectional surveys are used to gather information on a population at a

single point in time. The customers were surveyed to find out their consumption

behavior for the products in various schemes. A different cross-sectional survey

questionnaire might try to determine the relationship between two factors, like

religiousness of parents and views on Internet filtering.

3.2. SAMPLE SIZE

A sample size of 90 was considered in this project. That is, a total number of

respondents were 90 for survey.



2.3. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEW

Personal interviews are highly susceptible to inadvertent “signaling” to

the respondent. The cumulative effect of several facial expressions is likely

to be felt. By the use of this method the facial expressions tell about how a

customer feels about the product, and his knowledge about the product in

the scheme.

This will let us know following:-

1. The reason could be known that why a product is not liked and what are

shortcomings in the product?

2. The preference for the product of the customer?

3. Who are the frequent customers?

b. PROJECTIVE TECHNIQUES

Projective techniques are used when a consumer may feel embarrassed

to admit to certain opinions, feelings, or preferences. It has been found that

in such cases, people will tend to respond more openly about “someone

else.” Thus, we may ask them to explain reasons why others not buying the

product, or why other customers are not willing to take advantage of the

scheme, or what changes they want should be there for their convenience.

c. OBSERVATION OF CONSUMER



Observation of customers is often a powerful tool. Looking at how

consumers select products may yield insights into how they make decisions

and what they look for. Observing consumers, tells about:-

1. What is he looking in the product?

2. Is he brand loyal?

3. Is he more or less price sensitive?

4. Is he more interested in packaging, manufacturing, etc?

5. Whether his taste has shifted?

Observation may help us determine how much time consumers spend

comparing prices, or whether nutritional labels are being co

3. REVIEW OF LITERATURE

In order to write the literature review chapter component of my dissertation

you need to go through complete four basic stages.



i. Problem formulation stage:

ii. Literature Search:

iii. Data Evaluation:

iv. Analyze and Interpret Findings:

There are a number of key point that should be included in the actual

review of the literature. For example, you should provide an overview of the

subject as well as the theory or issue you are writing about. This area should

already be thoroughly covered in your dissertation and should connect

smoothly to the literature review component.

Introduction to Consumer Behavior: Role of Consumer Behavior in

Marketing, Distinction among consumer, customer, buyer, user and payer.

Framework of Consumer Behavior – Internal Influences, External Influences,

Self-Concept & Life Style and Decision Process. Interdisciplinary subject

encompassing concepts from psychology, sociology, anthropology, micro-

economics and organizational (buying) behavior. Applications of Consumer

Behavior.

Consumer Perception: Perception Process & Involvement, Sensation & Sensory

Thresholds, Sensory Overload & Selective Perception, Use of Gestalt Principles in

Marketing Communications, Common Perceptions of Colors, Interpretation –

Semiotics. Perceived Risk. Marketing Strategies targeting the customer: Advertising

Strategy –Understanding the media consumption habits of the customer.

Consumer Needs & Motivation: Needs & Wants, Latent & Manifest

Motives in a Purchase Situation, Maslow’s Needs & Consumer Behavior, Trio

of Needs Theory, Motivation Theories - Optimum Stimulation, Hedonic

Experiences, maintaining behavioral freedom, avoiding risk, attributing



causality. Motivational Conflict, Motivational Research.

Consumer Attitude Formation & Change: Attitude functions. Tri-

component attitude model, hierarchies of attitude components. Multi-attribute

attitude models. Attitude measurement. Changing consumer attitudes.

Consumer Learning: Applications of behavioral learning theories (classical

conditioning & operant conditioning) and cognitive learning theories (iconic

rote, vicarious/modeling and reasoning/analogy) to consumer behavior.

Consumer in the Market Place: Factors influencing consumer outlet

choice. Shopping orientation & shopping styles. Types of purchases. In-store

influences on purchase. Consumer responses to marketing communications.

Different forms of advertising appeals & consumer behavior.

Post-Purchase Behavior: Satisfaction/dissatisfaction – loyalty/non-

use or complaint behavior. Measuring satisfaction, handling complaints,

achieving customer loyalty. Post-purchase dissonance – causes and

approaches to reducing the same. Disposal alternatives

.

Dark Side of Consumer Behavior: Concerns of marketers and dark

side of consumer behavior (addictions, devious behaviors).

Organizational Consumer Behavior: Organizational buying roles,

buying situations & buying processes. Influences on organizational buying

behavior.

4. COMPANY PROFILE



a. Shoppers stop is ,as the brand calls itself, “the first store in the history of

modern retailing in India.

b. its present in 14 cities in India with multiples store in big metros

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K.

Raheja Corp. group of companies. Being amongst India's biggest hospitality

and real estate players, the Group crossed yet another milestone with its

lifestyle venture - Shoppers' Stop.

From its inception, Shoppers' Stop has progressed from being a single

brand shop to becoming a Fashion & Lifestyle store for the family. Today,

Shoppers' Stop is a household name, known for its superior quality

products, services and above all, for providing a complete shopping

experience.

With an immense amount of expertise and credibility, Shoppers’ Stop has

become the highest benchmark for the Indian retail industry. In fact, the

company’s continuing expansion plans aim to help Shoppers’ Stop meet the

challenges of the retail industry in an even better manner than it does today.

Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the

Emerging Market Retailer of the Year Award", by World Retail Congress at

Barcelona, on April 10, 2008 Shoppers Stop is listed on the BSE. With the

launch of the Navi Mumbai departmental store, Shoppers Stop has 26 stores

in 13 cities in India.

Stores


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Barcelona

http://www.worldretailcongress.com/


Shoppers Stop began by operating a chain of department stores under

the name “Shoppers’ Stop” in India. Currently Shoppers Stop has twenty six

(26) stores across the country and three stores under the name Home Stop.

Shoppers Stop has also begun operating a number of specialty stores,

namely Crossword Bookstores, Mother care, Brio, Dies Café, and Arcelia.

Shoppers Stop retails a range of branded apparel and private label

under the following categories of apparel, footwear, fashion jewellery, leather

products, accessories and home products. These are complemented by cafe,

food, entertainment, personal care and various beauty related services.

In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start

Something New".

Shoppers Stop's sister stores include:

Crossword Bookstores (a specialised book store)

Home Stop (store for furniture and home accessories)

Brio

Hyper city (offers food and grocery, general merchandise and apparel)

Mother Care (offers products for expecting mothers, babies, toddlers and

children)

Nuance Group (manages the outlets at the international airports at Bangalore

and Hyderabad)

Loyalty program


http://www.thenuancegroup.com/

http://corporate.shoppersstop.com/br_mothercare.htm

http://www.hypercityindia.com/

http://corporate.shoppersstop.com/br_cafe_rest.htm

http://en.wikipedia.org/wiki/HomeStop

http://en.wikipedia.org/wiki/Crossword_Bookstores

http://en.wikipedia.org/wiki/Crossword_Bookstores

http://en.wikipedia.org/wiki/HomeStop


Shoppers Stop’s has a loyalty program called First Citizen. They also offer a

co-branded credit card with Citibank for their members. This is a Loyalty

Programme of Shoppers Stop which not only gives the customer Special

Offers, Benefits, & Privileges but also helps them earn points on their

purchases. These points can be redeemed for an equivalent value of

purchases at Shoppers’ Stop

Benefits of being a First Citizen.

First Citizen’s process



Approach.

Co Branded.

Importance of Enrolling

First Citizen’s.

Knowing our customers more closely

Retaining our Loyal Customers.

Helps us identify our big customers.

Helps in updating customers about our

special privileges & benefits

Contribution of First Citizen’s to store sales.

Points Benefits

• Classic Moments member earns 1 Reward point for every 100 Rs spent

at Shoppers’ Stop. i.e. 1%.(on net purchase)

• Silver Edge member earns 1 Reward point for every 50 Rs spent at

Shoppers’ Stop. i.e. 2%.(on net purchase)

• Golden Glow member earns 1 Reward point for every 34 Rs spent at

Shoppers’ Stop. i.e. 3%.(on net purchase)

• Reward Points On Exclusive Brands :

• Stop, Stop Boys

• Kasich, Life

• Austin Reed Acropolis

• I – Jeans Push & Shove

• Mario Zegnoti, Eliza Donate in

• Incense, Vitoria Farina

• Haute Curry, Stop Girls

• Life Junior

Other Benefits

• Card can be used at all the units Of Shoppers’ Stop.

• Free parking* at all the units of Shoppers’ Stop.



• Free Valet Parking.

• Regular updates on all the mega events at Shoppers’ Stop.

Parking charges reimbursable on purchases at Shoppers’ Stop only –for

classic and Silver members Where applicable

Associate Cards.

• Classic Moments can apply for 1 associate card by paying Rs 100.

• Silver Edge can apply for 2 associate cards by paying Rs 100 per card.

• Golden Glow can apply for 3 associate cards.2 complimentary & 1 paid.

(Associates can be – Parents, siblings (brothers & sisters), spouse,

children (18 yrs of age and above)

First Citizen First (short code service) – SMS 56161

• Know your membership related information on your mobile handsets

– Membership Number

– Points

– Offers in Store

– Offers out store (Tie ups-Restaurants, Clubs etc)

– Update your information – Mobile & Email

First Citizen’s Process

Enrolment.

Points Earning

Redeeming Reward Points.

Upgrade & Renewal.

Exits



Shoppers Stop Presence


Classic Moments

Co BrandSilver Edge

Golden Glow

Types Of First Citizen Cards

Silver Edge

Co BrandGolden Glow

Co BrandDebit


• North – 12 stores

• South – 8 stores + 2 airport stores.

• East - 3 stores

• West – 10 stores



COMPANY VISION

“To Be A Global Retailer In India And Maintain Its No. 1 Position In The

Department Store Category.”

COMPANY MISSION STATEMENT

“NOTHING BUT THE BEST”

We Will Provide the “BEST” Value In Terms Of Products And Services And

Adopt “best” Process For Stakeholders, Without Compromise, Thereby

Matching Global Standards Thereby Matching Global Standards Of

Performance.

INTRODUCTION TO SHOPPER’S STOP

SHOPPER’S STOP LTD.(SSL)



Setting up shop in 1991 (October)

with its flagship store in Adhere,

Mumbai, Shoppers’ Stop is a member

of the K. Raheja Corp. of Companies.

Shoppers’ Stop first retail venture by

the K. Raheja Corp. Promoted by Mr.

Chandra L. Raheja, Mr.Ravi C. Raheja

and Mr. Neel C. Raheja, K.Raheja

Corp. have been leaders in the

construction business for over 48

years.

With its wide range of

merchandise, exclusive shop-in-shop

counters of international brands and

world-class customer service, Shoppers’ Stop brought international

standards of shopping to the Indian consumer providing them with a world

class shopping experience.

Today, Shopper’s Stop has acquired the status of a pioneer in organized

retailing in the country. It has a very strong national presence and is also

well connected with the International Retailing scene. It is the only

department store chain in India to be a member of IGDS, “International Group

Of Department Store” where only the best store of each country gets an

opportunity to be a privileged member.

PRODUCT AND SERVICE PROFILE OF THE ORGANISATION

Shoppers’ Stop undertakes image makeover; revamps looks, logo, uniforms,

among others



“Change is essential. Our consumers are changing, their preferences are

constantly evolving. They are getting younger. And so, we have to change

along with them.”

- B S Nagesh, Customer Care Associate & Managing Director

After 17 years of existence K Raheja owned and B. S. Nagesh managed

India’s largest department stores retail chain Shoppers’ Stop has decided to

spend Rs. 20 cr. ($5 million) on image makeover.

In a major revamping exercise, it has changed its logo, baseline,

uniforms, shopping bags, and looks, among others, though, it will not

change its black and white colors. Explaining rationale behind retaining

colors, Govind Shrikhande, CCA & Chief Executive Officer, Shoppers’ Stop,

said, “It is more classical, rich and authoritative, something Shoppers’

customers connect with. Black and white gives us a strong brand recall

value.”

“The simple but classic new logo without the old elliptic ring, which has an

international look and a timeless appeal, carrying the new baseline ‘Start

something

MARKETING STRATEGY



PROCESS FOLLOWED

Segmentation, targeting, and positioning together comprise a three stage

process which Shopper’s stop follows:

a. Determine which kinds of customers exist,

b. Select which ones we are best off trying to serve,

c. Implement our segmentation by optimizing our products/services for that

segment and communicating that we have made the choice to distinguish

ourselves that way.

SEGMENTATION:

Segmentation involves finding out what kinds of consumers with different

needs exist. In the apparel market, for example, some consumers of

Shoppers’ stop demand latest fashion, while others are much more

concerned about comfort and price. In general, it holds true that “You can’t

be all things to all people,” and experience has demonstrated that firms that

specialize in meeting the needs of one group of consumers over another

tend to be more profitable.

Several different kinds of variables can be used for segmentation:-

1. Demographic variables essentially refer to personal statistics such as

income, gender, education, location (rural vs. urban, East vs. West),

ethnicity, and family size. Tommy Hilfiger, for instance, has found the most

of their buyer is associated with elite group thus, you get a different product

in the same cans at the East and West coasts. Facing flat sales of “peter

England” dominated market, a manufacturer came out with this the Madura

f&l a more compact, Taking this a step farther, it is also possible to

segment on lifestyle and values.”

2. Some consumers want to be seen as similar to others, while a different

segment wants to stand apart from the crowd eg; Calvin Klein &

fcuk ,Tommy Hilfiger etc.



3. Another basis for segmentation is behavior. Some consumers are “brand

loyal”—i.e. they tend to stick with their preferred brands even when a

competing one is on sale. Some consumers are “heavy” users while others

are “light” users. For example, research conducted in this project shows

that most costly product of Shoppers ‘stop is bought by 35% of the total

customer that is 80% .—presumably a rather intoxicated group.

4. One can also segment on benefits sought, essentially bypassing

demographic explanatory variables. Some consumers, for example, like the

product of “Black berry” because its more comfortable while others prefer

the brand like Arrow & Allen Solly. Some consumers use cloth to hide the

body while other use it for the status & fashion.

TARGETING:

1. In the next step, we decide to target one or more segments. Our choice

should generally depend on several factors:-

First :- How well are existing segments served by other manufacturers?

It will be more difficult to appeal to a segment that is already well served than

to one whose needs are not currently being served well.

Secondly:- How large is the segment, and how can we expect it to

grow?

Thirdly:- Shoppers stop target to the elite group of people which is

higher income group mainly but in some way it also target to the middle

group as well.

POSITIONING:



Positioning involves implementing our targeting. Shoppers stop has done

there positioning by introducing foreign brand such as FCUK, CK Jens and

Tommy Hilfiger etc.

MARKETING MIX

Main Aspects of Marketing Mix



The easiest way to understand the main aspects of marketing is through its

more famous synonym of "4Ps of Marketing". The classification of four Ps of

marketing includes marketing strategies of product, price, placement and

promotion. The following diagram is helpful in determining the main

ingredients of the four Ps in a marketing mix.

PRODUCT:

In simpler terms, product includes all features and combination of goods

and related services that a company offers to its customers.



Product is the most important aspect of marketing mix for two main

reasons. First, for manufacturers, products are the market expression of the

company's productive capabilities and determine its ability to link with

consumers. So product policy and strategy are of prime importance to an

enterprise, and product decisions dictate the scope and direction of

company activity. Moreover, the market indicators such as profits, sales,

image, market share, reputation and stature are also dependent on them.

Secondly, it is imperative to realize that the product of any organization is

both a component and a determinant of the marketing mix. as the Shopper’s

stop are of high quality & cater to all elite group of people like CALVIN KLEIN

,FCUK,TOMMY HILFIGHER,ALLEN SOLLY etc.

PRICING:

Pricing is basically setting a specific price for a product or service offered. In a

simplistic to the concept of price as the amount of money that customers

have to pay to obtain the product. Setting a price is not something simple.

Normally it has been taken as a general law that a low price will attract more

customers. It is not a valid argument as customers do not respond to price

alone; they respond to value so a lower price does not necessarily mean

expanded sales if the product is not fulfilling the expectation of the

customers

Generally pricing strategy under marketing mix analysis is divided into two

parts: price determination and price administration (ibid).

Price determination is referred to as the processes and activities employed

to arrive at a price for a product including consideration of relative prices of

products within the same line, and differences in price for similar products of

differing grades and qualities.

“ Shopper’s stop follows premium pricing strategy that is selling high quality

products at the higher price”.



PLACE:

Place under marketing mix involves all company activities that make the

product available to the targeted customer while planning placement

strategy under marketing mix analysis. Eg. location of Shoppers’s stop in all

the metros is on premium place in the like Garuda mall in Bangalore .

PROMOTION:

Promotional strategies include all means through which a company

communicates the benefits and values of its products and persuades

targeted customers to buy them . e.g. Shoppers stop communicate to

customers through news paper , fm, hoarding etc.

Limitation of Marketing Mix Analysis (4Ps of Marketing)



Despite the fact that marketing mix analysis is used as a synonym for the 4Ps

of Marketing, it is criticized on the point that it caters seller's view of market

analysis not customers view. To tackle this criticism, attempted to match 4

Ps of marketing with 4 Cs of marketing to address consumer views:

Product – Customer Solution

Price – Customer Cost

Placement – Convenience

Promotion – Communication

4.8. e. RETAIL MIX:

1. Merchandise assortment

The company was looking for a solution that would bring all of its

businesses and processes together. After a comprehensive evaluation of

different options and software companies, the management at Pantaloon

decided to go in for SAP.

Some of the qualities of SAP retail solutions are that it supports product

development, which includes ideation, trend analysis, and collaboration with

partners in the supply chain; sourcing and procurement, which involves

working with manufacturers to fulfill orders according to strategic

merchandising plans and optimize cost, quality, and speed–variables that

must be weighted differently as business needs, buying plans, and market

demand patterns change managing the supply chain, which involves

handling the logistics of moving finished goods from the source into stores

and overseeing global trade and procurement requirements; selling goods

across a variety of channels to customers, which requires marketing and

brand management; managing mark-downs and capturing customer



reactions, analyzing data, and using it to optimize the next phase of the

design process.

2. Place

In the channels of distribution, the physical facilities point of location.

3. Price; premium price

4. Visual merchandising

Visual merchandising supports:-

a. sales

b. retail strategies

c. communicates with customers

d. communicates image

e. supports retailing trends.

Visual merchandising includes:-

1. Interior merchandising

Sufficient visual merchandizing within the store that included danglers,

signage, standees, distribution of pamphlets, which gave details of the offer.

Display, point of purchase, fixture, equipment and furnishings store layout.

Product packaging and labels.



2. Exterior merchandising

With the ramp show in om shanti om movie.

Hoarding in the big metros & staff with announcements about the offer

to make people aware.

Advertising on fm.

Store atmosphere.

RETAIL PROMOTION MIX

1. ADVERTISING:

Advertising is recognized as an indispensable tool of promotion. It has

acquired a lot of significance in the national and international markets.

With the advent of globalization and liberalization its imperativeness in

the Indian retail sector has increased as a result of competitions, latest

technologies, and the rapidly changing consumer lifestyles.

a. Objectives of Advertising:

The fundamental objective of advertising is to sell something –a product,

service. The Major Objectives of advertising are:

1. To promote a new product.

2. To warn the public against imitation of the retailer’s product.

3. To manage competition in the market.

b. Benefits:

1. Advertisement helps in creating awareness among the

customer about the existence, price, and availability of

product.

2. Increases the utility of existing products.

3. It educates customer about new product and their diverse



uses.

c. Types of advertising:

i. Informative Advertising:

Purchases of durable products are generally erratic and often too expensive

to buy, so the retailer spends a huge amount on informative

advertising.

ii. Corporate Advertising:

Its main motive is to build a corporate image. Corporate Advertising builds

up retailer image. It increases goodwill towards the retail

organization

iii. Financial Advertising

1.PROMOTION:

Promotion can be loosely classified as "above the line" and "below the

line" promotion. The promotional activities carried out through mass media

like television, radio, newspaper etc. is above the line promotion. The terms

'below-the-line' promotion or communications refers to forms of non-media

communication, even non-media advertising. Below-the-line promotions are

becoming increasingly important within the communications mix of many

companies, not only those involved in Fmcg products, but also for industrial

goods.



BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (bridge to luxury) promotions are by

exhibitions, sponsorship activities, public relations and sales promotions

like giving freebies with goods, trade discounts given to dealers and

customers, reduced price offers on products, giving coupons which can be

redeemed later etc.

Below the line sales promotions are short-term incentives, largely

aimed at consumers. With the increasing pressure on the marketing team to

achieve communication objectives more efficiently in a limited budget, there

has been a need to find out more effective and cost efficient ways to

communicate with the target markets. This has led to a shift from the regular

media based advertising.

Methods of below the line sales promotion:-

i. Price promotions

Price promotions are also commonly known as" price discounting".

These can be done in two ways:-

1. A discount to the normal selling price of a product, or more of the product

at the normal price.

2. Price promotions however can also have a negative effect by spoiling the

brand reputation or just a temporary sales boost (during the discounts).

ii. Coupons

Coupons are very versatile, way of offering a discount. Following are the

examples of the use of coupons:-

-On a pack to encourage repeat purchase

-In coupon books sent out in newspapers allowing customers to redeem the

coupon at a retailer.

-A cut-out coupon as part of an advert.



The key objective with a coupon promotion is to maximize the

redemption rate – this is the proportion of customers actually using the

coupon. It must be ensured when a company uses coupons that the retailers

must hold sufficient stock to avoid customer disappointment. Use of

coupon promotions is often best for new products or perhaps to encourage

sales of existing products that are slowing down.

iii. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this

the customer gets something extra along with the normal good purchased

eg.1)purchase of 5000/ get the perfume worth 2000.

2)buy three trouser of blackberry & get the gift voucher of 1000 rs.

iv. Competitions and prizes

Shoppers’s stop organize the event on the eve of new year that sing 6 songs of the

same starting word in 2 minutes get the 1000 rs. of gift voucher.

v. Money refunds

Here, a customer receives a money refund after submitting a proof of

purchase to the manufacturer. Customers often view these schemes with

some suspicion – particularly if the method of obtaining a refund looks

unusual.

vi. Frequent user / loyal incentives

Repeat purchases may be stimulated by frequent user incentives.



vii. Point-of-sale displays

A data collection system that electronically receives and stores bar code

information derived from a sales transaction. This could the zip codes for

library users, facilitating the library in determining geographic market are

that users reside in. Most of the big brands are following the suit of BTL

promotion because of rising prices of media based promotion, advertising

clutter and increased impulse purchasing.

BTL promotions are gaining popularity among all big companies nowadays

considering their effectiveness because of the "individual customer

promotion" at a price, which is much lesser than the normal media

promotions.

3. PERSONAL SELLING: Persuasive communication between a

representative of the company and one or more prospective customers,

designed to influence the person's or group's purchase decision.

4. PUBLICITY OF PRODUCT:

Publicity non-personal communication in news story form about an

organization, its products or both, that is transmitted through a mass

medium at no charge.

5. PUBLIC RELATION:

Public relations the planned and sustained effort to establish and maintain

goodwill and mutual understanding between an organization and its target

publics.



6.ATTRIBUTE

Envelope

Something that envelops; a wrapping. A products wrapping affects a lot on

its sale. More customers are attracted if envelope is very attractive.

7. LOGISTICS:

Logistics is the art and science of managing and controlling the flow of

goods , energy, information and other resources like products, services and

people from the source of production to the marketplace. It’s Important to

have professional logistical support logistical. The operating responsibility

of logistics is the geographical repositioning of raw materials, work in

process and finished inventories where required at the lowest cost possible.

8. SUPPLY CHAIN:

Supply chain, is a coordinated system of organizations, people, activities,

information and resources involved in moving a product or service in

physical or virtual manner from supplier to customer. Supply chain activities

transform raw materials and components into a finished product that is

delivered to the end customer.

9. COMPETITORS

Shoppers stop operates in a competitive environment. For each line of

business, they face competition from established national and regional

companies. In the fashion segment, they probably face competition from

pantaloon, Trent and Lifestyle. The hypermarket business is relatively new,

being just about three to four years old in the country. Shoppers stop faces

competition from the likes of RPG (Spencer’s), Trent (Star India Bazaar) .



a. RPG GROUP: Spencer & Company Limited is another

large retail group in the country

withsupermarkets,music stores, and the

beauty and health chain—Health &

Glow.

Food world, operated by Food World

Supermarkets Limited, while Health

&Glow by the RPG Group. It is also

Planning IPO, will have 450-plus Music

World, 50-plus Spencer's Hyper covering

4 mn sq.ft by 2010.

b.future group: Kishore biyani future group is one of the

biggest competitors.

It Operates big bazaar, pantaloon zone



d.RELIANCE

RETAIL:

Investing Rs.30000 cr. ($6.67 billion) in setting up

multiple retail formats with expected sales of

Rs.90,000 cr.-plus ($20 billion) by 2009-10.

e. LIFESTYLE: Investing Rs.400 cr.-plus ($90 mn) in next five years

on Max Hypermarkets & value retail stores, home

and lifestyle centers.

f. PIRAMYD RETAIL: Aiming to occupy 1.75 million sq.ft retail space

through 150 stores in next five years.



MAJOR PROBLEMS

a. Retailing is in a rapid state of change due to speedy technological

developments, changing competitive positions, varying consumer behaviors

as well as their expectations and liberalized regulatory environment. In such

a scenario, information is crucial to plan and control profitable retail

businesses and it can be an important source of competitive advantage so

long as it is affordable and readily available.

b. In west, retail businesses have been the early adopters of Information

Technology (IT). As there is a need to capture accurate information and make

it available not only within the store but send it to warehouse, distributors

and manufacturers in real time to manage the short shelf life of some goods

in grocery sector and costs of inventory, varied DSS tools have been

adopted by organized retailers. VMIs- vendor managed inventory systems,

Scanner, OLAP (online analytical processing), supply chain management

systems, forecasting systems, CRM- customer relationship management

systems, ERP- enterprise resource performance system etc. are the tools

used by organized retailers in developed nations.

c. Most retailers collect and have access to huge amount of data, collected

from day to day operations e.g. customer loyalty data, retail store sales and

merchandise data, demographic projection data etc. Currently retailers are

data rich but information poor. There is a great potential to develop systems.



FUTURE PLANS OF THE ORGANISATION:-

Shoppers' Stop aims to leverage brick and mortar strength news Retail

major Shoppers' Stop Ltd has just launched its virtual store “

shoppersstop.com. The website, apart from selling the usual wares --

apparel, books, gift articles, toys -- will also hawk flowers and furniture, not

stocked by the company's brick and mortar chain due space constraints.

The virtual store will be a boon for people who want to send gifts to their

loved ones living and within and without the city. Expecting sizeable

business from this segment, Shoppers' Stop is tying up with support service

providers to over come the myriad complexities involved in logistics and

back-end operations.

Says the company's general manager “ information systems, Anish Shah,

"We have made arrangements for logistics, payment gateways and call

centers for goods ordered over the website." However, virtual store

transactions will be initially restricted to the cities where the company has its

brick & mortar outlets. Interestingly, the `virtual store' -- a Net-enabled

computer -- will be there in every Shoppers' Stop store, enabling a shopper

to order on the web, specifying the place of delivery after seeing the goods in

the physical store.

Shoppers' Stop, the first retail chain in India to invest on an ERP package, is

again investing heavily on software. This time around, the company is buying

a software package called Arthur Planning, and a data warehousing solution

from JDA, USA from which it bought the ERP package. "Arthur Planning is

useful in measuring the stock position at the store shelf level and for auto

replenishment of the shelves," Mr Shah explains.

That aside, the software package helps in studying sales patterns and

identifying slow moving items and the reasons thereof. According to Mr. B.S.

Nagesh, managing director and chief executive officer, Shoppers' Stop, the

chain enjoys a comfortable stock turnover ratio of six times. The company's



six stores and three warehouses are networked with the corporate office at

Mumbai.

Apart from the virtual shop, Shoppers' Stop is to open its second store in

Mumbai and Hyderabad next month. "This is to increase our catchment

area," reasons Mr Nagesh. Though stores of this kind are termed as

destination stores, in reality people are not willing to travel beyond five

kilometres to shop, he adds.

After registering a turnover of Rs 160 crore for the year 1999-2000, Mr Nagesh

is targeting sales of Rs 270 crore and a net profit of Rs 16.2 crore in the

current fiscal, on an equity capital of Rs 24 crore. The company had privately

raised Rs 60 crore from financial institutions and venture capitalists. As per

the plans on the drawing board, Shoppers' Stop plans to have around 23

stores by the end of 2004, with major cities having multiple retail outlets.

Recently, the company opened its 50,000-sq.ft store in Chennai. Set up at an

outlay of Rs 10 crore, Mr Nagesh expects the Chennai store -- the company's

sixth outlet -- to break even in 18-24 months time. "We expect to clock Rs 30

crore sales in the first year of operations," he remarks.

One of the unique features of the Chennai store is the housing of

Crosswords, the bookstore, and Music World, the music store belonging to

the RPG group. The company has entered into a revenue sharing agreement

with Music World for the purpose. It may be recalled that the Rahejas

acquired 51 per cent equity stake in Crossword store some time back.

According to Mr Nagesh, this format will be implemented in all future stores.

In Mumbai, Shoppers' Stop has tied up with Planet M (of the Times of India

Group) for music retailing.

Responding to the query of why he is not looking at contract management of

stores on a profit sharing basis (similar to the practice in the hotel industry),

thereby saving heavy outlays and achieving faster brand growth, Mr Nagesh

replies, "We are still on the learning curve with lot of things still to be

mastered."



The company's experiment with the franchisee model through its Blues

Bizaar retail chain was not successful. "We were not able to devote sufficient

management time in managing the chain," says Mr. Nagesh. Of the three

Blues Bazaar stores -- two franchisee and one own-shop -- opened in

Mumbai, two have downed their shutters and the remaining one is in the

process closing the operations.

“Shoppers’ Stop to offer easy loan facilities for consumers

Targets existing loyalty card members, credit card holders

Mumbai, Sept. 24 This festival season Shoppers’ Stop is planning to create

lower variants in its credit card-based buying options. Reducing its credit

limits, the retail chain is looking at options that would not necessarily cater

to big-ticket items at its stores.

Mr. Govind Shrikhande, Chief Executive Officer, Shoppers’ Stop, told

Business Line, “We are looking at giving credit at lower values and there

would be new versions and models offered within our credit card facilities

currently available.”

With intentions of increasing consumption at its stores, the retailing chain is

planning to give credit between Rs 5,000 and Rs 10,000 for buying lower

value items.

Having associated with Citibank for its co-branded card for the past three

years, the credit facilities given so far have been restricted to big-ticket buys

such as furniture especially during the festival season. Adds Mr Shrikhande,

“All these years we have been offering credit to buy big-ticket items ranging

from Rs 50,000 to Rs 80,000. But now we are looking at giving easy loans

with lower interest rates.” The interest rates charged for these cheaper loans

would range between 9 and 10 per cent of the principal amount.



5. WORK ASSIGNED BY THE COMPANY

5.1 BUSINESS OBJECTIVE:

To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.

b. Inculcating in their minds the value for money through these

offers.

c. Increasing the average consumption of existing customers.

OPERATINGSCHEME:

a. All Category provided offers well in advance.

b. I.T uploaded the offers one day in advance and rechecked them.

c. V.M also did splendid job by putting the required offer signage’s and

also decorated the store as per the SS3D theme.

d. HR managed the shift time of employee; Snaks were arranged for

thestaff.

e. unit head, rom, DM, ADM-Planned and managed micro analysis of

targets and staff was done by taking department wise meeting.



Understanding of the consumer behavior

Consumer behavior can be the prominent aspect in any business but in retail

sector it is very important because we have to deal with customer every day

& we have to be on the front to sell the product & to get profit for the

company by increasing the bottom line of the company.

To understand the consumer behavior we need to observe

the customer closely & know about them about these:

1)what they want

2)how much they wants to pay for that

3)whom they seek for the information

4)who can influence their decision

5)from where they manage the money

6)how they spend money

7)what location they choose for the purchase

8)are they innovators ,majority,laggard

9)are they satisfied with the product

10) are they getting after sell service that can be very crucial.



BUYING PROCESS

a. NEED RECOGNITION:

The customer first points out the things which he need. His good part of

income is spend on things of his daily requirement.

b. INFORMATION SEARCH:

Before purchasing of a product, customer research internally and externally.

Internally-retrieving information about similar purchase made earlier,

decision about choice criteria, brand included, or advertisement related to the

product. Externally- source such as family, friends, commercial sources, etc.

c. EVALUATION OF ALTERNATIVES:

Before, purchasing customer looks for the alternatives of that product.

Customer goes for good quality in cheapest rate.

d. PURCHASES:

Purchaser many times faces cognitive dissonance which arises due to

uncertainty of making right decision. This is because choice of one product

often means rejection of attractive features of the alternatives.

e. AFTER PURCHASE EVALUATION:

Customer by using the product comes to know about the real value of

product. CONCLUSION:

It should be considered that shoper’s stop targets every class. Thus we

know that different people have different thinking style.

Most of their buying decisions or his behavior depends on his:-



a. PERCEPTION:

Perception is the process by which a customer makes sense of information

that he receives. Therefore, it is to be tried that customer receives the right

information about every product and about its scheme, because a single

error in communication to customer can create confusion to him and he may

not buy the product.

b. LEARNING:

It is the change in the content or organization of long time memory and is a

result of information processing. Thus company should try to hit the

customer’s memory. I.e. Company should have good impression on the

memory of the customer. As this memory acts as a internal information

source in the decision making process.

c. MOTIVATION:

Motivation helps a lot to maintain loyal customers. A customer is loyal only

when he sees any extra benefits. Thus discounts, free gifts, free coupons,

etc such schemes motivate them a lot. Many times, good quality of the

product, reasonable prices, packaging, etc also works as motivational tool.

d. PERSONALITY:

Personality can be of many types as introvert-extrovert, sociable-loner, and

competitive-cooperative. Brand personality is the characterization of brands

as perceived by customers. Brand may be as ‘for young’ like branded jeans

of Levi’s, Lee, ck, etc. that Shoppers stop has got in its portfolio.



CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should be decided on the basis

of loyal customers that are really profitable for company.

The loyal customers are believed to be cost less to serve, they are willing to

pay more than other customers and act as a word- of- mouth promoters for

the company. It is believed that one sure way to earn greater profits is to win

loyalty of customers.

TO GET THE RIGHT POSITIONING DONE OF THE PRODUCT

UNDER SCHEME:

It is the customer’s beliefs about the company’s product being of, say, high

quality, or low price, or durable, etc. Thus it is very necessary that product

should be according to the customers need. It should not be damaged, in

store product should be given open facing. For pack of two the products

were given alternate 4 facing. I.e., one row of single and other row of double.

TO MAINTAIN STOCK ON THE FLOOR:

In retail stores less stock is maintained. This stock on other hand is

sufficient enough to fulfill the demand of that vary product in store.

To know the exact amount to be maintained on floor it is very necessary to

know:-

a. Product facing

b. Capability to maintain stock in warehouse

c. Demand of the product.

d. Profit margin on the product.



TO UPDATE THE PRICES:

Pack of two was the new scheme, so its prices to be get changed on rem for

those products whose prices have changed by the producing company. The

work was to report DM or team leader about the increase in prices and get it

updated on rem so that discount could be given accordingly.

DISCOUNT CRITERION:

a. The discount was given on the scheme of pack of two.

b. The discount was 1/4th on the profit of the retail company.

c. I. e if the company is getting profit of rs10 on a product, whose mrp is 100.

d. Then after discount it is sold at rs97.5 in the store.

INVENTORY CONTROLL:

Since inventory represents cost, managers seek stock minimization. To

always have in stock every conceivable item that a customer might order

would normally be prohibitively expensive for companies marketing many

items.

One solution is to separate items into those that are in high demand and

those that are is slow moving. Two related inventory decisions are knowing

when and how much to order so that stocks are replenished. This is

because there is a lead time between ordering and receiving inventory, and

there should not be stock out as the company is waiting for the order items

to arrive. The more variable the lead time and higher will be the safety or

buffer stock that the company will be required to keep to prevent a stock out.



How to work on bar code tender

labels which shows price of product after giving the discount on that product.

Bar tender is the software by which we use to take out the bar codes.

Process:-

a. To select items according to their EAN numbers Include for export

exit enter.

b. No. of quantity done.

c. now go to next program of print select the items;

ok



5. Analysis of interpretation of data

5.1 SURVEY ANALYSIS

1. Total people surveyed-90

2. Total people who responded well-72

1. Men: 22

2. Women: 30

3. Youngsters: 18

4. Children: 8

5. Old aged: 12

Men

Women

Youngs

Childern

Old age



Result-total people surveyed were 90 & 72 responded well from the majority was of

women.

B.Marital status:-

1. Married: 74 2. Unmarried: 16

Married

Unmarried

Result-from total 90 married were 74 & unmarried were 16.



d. Income group: -

1. 0-10000: 20

2. 10000-20000: 24

3. 20000-30000: 28

4. More than 30000: 18

0

5

10

15

20

25

30

0-10000

10000-20000

20000-30000

more than 30000

No.of Person

Result-most of the people in the survey was having the income 20000-30000.



e. Is your home: -

1. A single family house: 55

2. Two family house: 25

3. Single: 10

Single family house

Two family house

single

Result-55 were the single family house. 25 were the two family house. 10 were the single.



f. Indicate activities/interests which you and/or household

members enjoy on a regular basis:

1. Bicycling/running: 1

2. Dieting: 25

3. Crafts: 5

4. Foreign travel: 15

5. Gourmet/fine food: 45

6. Fashion clothing: 40

7. Bible/devotional reading: 12

8. Physical fitness/exercise: 69

9. Stereo/records and tapes: 14

10. Art/antiques: 8

11. Outdoor gardening: 35

12. Wildlife/environment issues: 40

13. Health foods/vitamins: 70

14. Money making opportunities: 50

15. Book reading: 24

16. Self improvement: 45

17. Watching sports on TV: 40

18. Charities/volunteer work: 16

19. Other: 12



bicycling dieting craft foreign travel fine food fashion clothing

devotional reading physical fitness tapes/records art outdoor gardening wildlife

health foods money making book reading self improvement watching sports charities

others

Result-from the analysis it is clear that most of the people were interested in

health foodsi.e70,physical fitness 69,fashion clothing 40 etc.

CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows that they have interest in

the products either they buy or not. They have good knowledge about the

product they buy.

b. Women are very careful about what they buy but sometimes men tend to

ignore some of the features of product.

c. Women are more attracted and keen to know about the schemes, discounts,

gifts, etc on product.



d. People have multiple life style and people have interest in music, fitness,

health, dieting, health food, vitamin rich products, and fashion clothing.

e. Women, children, youngsters, aged people frequently make visit to stores.

f. People of single family and apartment family are frequent customers.

g. People of middle class and upper middle class are frequent customers and

they spend good amount of their income.

6.2 TREND ANALYSIS

a. how often you used this product before the scheme?

1. Every day: 49

2. More than once a week: 21

3. Once a week: 20

everyday

more than once a week

once a week

Result-from the total 90 people 49 people were there who use the product before

the scheme every day.



b. How often do you use products from this

1. Every day: 55

2. More than once a week: 29

3. Once a week: 6

Every day

Once a week

More than once a week

Result-55 people were using the product every day.

CONCLUSION FROM TREND ANALYSIS

Trend analysis shows that consumption rate of the products was good, as

the products were mainly daily used products. Earlier the rate of using of

product was less in comparison, after the scheme.



CONJOINT ANALYSIS

a. Stores are conveniently located:-

1. Very Strongly Agree: 20

2. Strongly Agree: 28

3. Agree: 27

4. Disagree: 15

very strongly agree

strongly agree agree disagree

0

5

10

15

20

25

30

very strongly agree strongly agree

agree disagree

Result-28 people were strongly agree that stores are conveniently

located.



b. Store atmosphere and decor are appealing:-


2. Agree: 40

3. Disagree: 21

strongly agree

agree

disagree

Result-40 people were strongly agree that atmosphere & décor are

appealing.



c. A good selection of products was present.


2. Agree: 51

3. Disagree: 25

strongly agree

agree

disagree

Result-51 people were strongly agree that the good selection of product was available.



d. (Store) has the lowest prices in the area:-


2. Agree: 45

3. Disagree: 15

Strongly agree

Agree Disagree05

1015202530354045

Strongly agree

Agree

Disagree

No of Person

Result-45 people were strongly agree that store has the lowest price



e. Merchandise sold is of the highest quality:-


2. Agree: 52

3. Disagree: 12

Strongly agree

Agree

disagree

Result-52 people were agree that sold merchandise was of the highest

cateogary.

f. Merchandise displays are attractive:-


2. Agree: 69

3. Disagree: 12



Strongly agree Agree Disagree

0

10

20

30

40

50

60

70

Strongly agree

Agree

Disagree

No.of person

Result -69 people were agree that merchandise displayed were attractive that shows the quality of the store.

h. Overall, I am very satisfied with the store:-


2. Agree: 30

3. Disagree: 5

Strongly agree

agree disagree0

10

20

30

40

50

60

Strongly agree agree

disagreeNo.of Person

Result-55 people were strongly satisfied from the store that shows a positive result.



Findings, Conclusion & Recommendation

Findings

1. it has been found by the research study that the Shoppers’s Stop has a

unique image in the mind of the customer for the superior quality of

product .

2. it has the prestigious brand like; Tommy Hilfiger, Fcuk, Calvin Klein,

Allen -Solly, Van Hausen etc. to which Shoppers’s Stop has provided the

gateway to India.

3. Shoppers’s Stop is one stop solution for all the need of customers.

4. It is the only one organization in India which has got the certificate from

IGDS(intercontinental group of departmental store).

5. It has got the highest numbers of the loyal customers more then 10

lacks in India which give them more then half of their business.

6. In India the retail sector is growing at the rate of 10% every year which is

more then any other country in the world.

7. Hardly there is 8% organized retail sector so there is the unlimited

potential to grow for the retail giants.

CONCLUSION



If this project proves to be of any usefulness to the reader then I will be

very proud of it, that all the hard work done by my faculty and me has been

fruitful.

Above all, I hope to have shown my reader that the answer of their

questions on the working of the company and its marketing strategies which

made it a retail giant and capture the big part of the market. how ever it is

difficult to know about a company but training provided to me helped me a

lot to know the retail store and consumers behavior to a great extent. i came

to know how a consumer reacts to every action made by retail to pursue

them with their promotional and marketing strategies.

This project helped me to clear my else doubts and step over the

boundaries of confusion and queries with reference to retail store and

helped to be more focused and helped me a lot to understand the concepts

in my studies.



Recommendation

Target is placement of all merchandising units across the market in a

month time

Create Identity in a Short Span

Offering a wide range

Reach every nook & corner

Distinct Approach ( Innovative & Differentiated products)

Constant connection through technology

High level of transparancy

Pricepressure from webshops

Changed orientation and purchase behaviour

Shiftyourloyalty!

From Push tool to Pull platform

Producer Retail Consumer

EXPERIENCE SOCIAL RETAILING ORGANISED

SERVICE INFORMED

PRODUCT CONNECTED

Providing social tools and platforms around products and services to

create better informed and better organized buying behavior.

Giving away design

Giving away assortment

Give away marketing



ORGANIZED RETAILING

(i) promote quality employment;

(ii) improve business process practices;

(iii)spur investments in support industries; and

(iv)enable the modernization of the fragmented traditional retail industry.

Modern retail business focuses on maximizing customer footfalls and

capturing rising volume and share of the customer wallet.

While the competition strategy is largely price focused, the model works

by:

(i) improving sourcing efficiencies;

(ii) expanding product assortment;

(iii) differentiating service; and

(iv) enhancing the store ambience. Thus, there are four drivers of

modern retail’s “one-stop shopping model”:price, product, service, and

ambience

The main objective of these studies is to understand how these firms

are:

1. penetrating markets;

2. introducing formats and product categories;

3. operating the end-to-end value chain;

4. pricing industries; and

5. capturing customer footfalls.

It helps to:

1. attain critical prospects;



2. economies of scope in sourcing by accruing costs across stores

BENEFITS OF ORGANIZED RETAILING

PRODUCT MARGIN

Modern retail penetration and consumer adoption in the apparel and clothing

category is the highest.

An organized retailer gets an average of 30 per cent gross margin or above

on MRP across women’s wear, gents’ wear, and kids’ wear on branded

labels. In the case of private labels of store brands, clothing margins are

higher than 60 per cent typically.

In the food and grocery section across hypermarket, supermarket, and

discount store formats, grocery covers around 45 per cent of store space in

FMCG and staple food products.

As regards fresh fruit and vegetables, however the store level penetration is

low compared to other categories for various reasons: (i) high wastage; (ii)

lack of temperature-controlled isles; and (iii) low profit margins in bulk

produce (potatoes, tomatoes, and onions). In addition, the customer

adoption rate is also low in fresh fruit and vegetables because of its daily

need-based requirement and the distance factor.

Nevertheless, fruit and seasonal vegetables are higher profit-margin

produce: fruit sell at 40 per cent margin on the cost price, and seasonal and

exotic vegetables around 30 per cent above the cost price. Across the fruit

and vegetable section, the net profit gain is between 8 per cent and 10 per

cent on an average. As a result, organized retail firms are strategizing

convenience format stores up to 2,000 sq. ft. area in order to penetrate the

local neighborhood markets.



MARKET PENETRATION STRATEGY:-

Large retailers are heading for a pyramidal approach by launching several

small-sized neighborhood convenience stores in tandem with a few large

hypermarket or department store formats. This strategy is beneficial to large

retail firms because they can absorb supply-chain costs across formats.

Further, bulk purchases enable them to squeeze profit margin from

suppliers. However, the local traditional retailers in the nearby locations feel

more intense competition.

The product mix in the hypermarket format is typically 60 per cent food and

40 per cent non-food. The format incorporates a larger share of apparel,

grocery products in staples, and FMCG goods, of which the share of apparel

merchandize is 30 per cent. Fruit and vegetables, mobile phones, alcohol-

based beverages and pharmaceutical electronics and household durable

product categories encompass a much smaller share.

Another dominant format used by modern retailers includes the department

and speciality stores focusing primarily in clothing, cosmetics, artificial

jewelry and watches, and household durables.

The discount and convenience formats largely concentrate on fruit and

vegetables and grocery products.

Gradually, the organized retail value chain would prefer to lean towards the

direct procurement approach in order to reduce the cost of the middleman.

The direct procurement model benefits modern retailers for the following

reasons: (i) maximizing its gains on large volume transactions; (ii)

implementing store brand promotional schemes; and (iii) minimizing the

operational cost.

In the case of apparel, a mix of large and small suppliers supply directly for

private labels.



Currently, the modern retailers work on a commission-based margin with

branded suppliers as opposed to the slotting-fee position where a

manufacturer or supplier gets shelf space by paying a certain fee structure.

By having commission-based direct contract terms with branded suppliers,

retailers are able to arrange various promotional schemes in order to attract

customer footfalls to their stores and secure discounted price on bulk

purchase. This business tactic is particularly disadvantageous to the

traditional retailers because their volume demand is very small and is

primarily on credit payments.

EMPLOYMENT GENERATION:

Finally, but most importantly, the employment generated by organized retail

is building a quality labor class that is gaining vocational training in skilled

and unskilled jobs at the graduate and tenth class level Foreseeing the

demand for trained staff, leading organized retailers are creating their

captive human resources pool through internal training and programmers

and tie-ups with retail management schools.

COMPETITORS STRATEGY:

Pantaloon

It focus on providing the latest fashion on the reasonable price & other

format of it big bazaar focus to the mass category people & provide value

for their money.

Trent Limited Lifestyle & Value

Single- brand strategy: leverages on high margins in private labels, and

targets consumers in socio-economic class B and C.

ITC Choupal Sagar & Choupal Fresh Value

Backward integration through IT-based business model: leverages by

building direct relationship with the supply source, the farmers, to sell as

well as purchase products and services.

Spencer’s Retail Value

The “duck and the duckling” model: by having two- or three- value segment

stores, backed by a cluster of small-sized Fresh, Daily, and



Express stores, to leverage on economies of scale at back-end value chain.

NDDB: Mother Dairy Value

Operates on a co-operative model with the objective of increasing farmers’

welfare. Has a strong presence in Delhi’s NCR region.

Strategically located in residential areas and follows a low-price strategy for

fruit and vegetables. Pantaloon s value

Provide the latest fashion to customers with the competitive price

CONCLUSION



If this project proves to be of any usefulness to the reader then I will be very

proud of it, that all the hard work done by my faculty and me has been

fruitful.

Above all, I hope to have shown my reader that the answer of their questions

on the working of the company and its marketing strategies which made it a

retail giant and capture the big part of the market. how ever it is difficult to

know about a company but training provided to me helped me a lot to know

the retail store and consumers behavior to a great extent. i came to know

how a consumer reacts to every action made by retail to pursue them with

their promotional and marketing strategies.

This project helped me to clear my else doubts and step over the boundaries

of confusion and queries with reference to retail store and helped to be more

focused and helped me a lot to understand the concepts in my studies.



BIBLOGRAPHY

BOOKS:

KOTLER PHILLIP,KELLER KELVIN

Marketing Management, Pataparganj, Delhi, Dorling Kindersley(India)Pvt.Ltd ,

2007,

“74 to 80”, “164 to 170”, “200 to 203”, “205 to 208”,”231 to 236”, “245 to 264”.

KUMAR ARUN AND MEENAKSHI N

Marketing Management, Naraina, New Delhi, Excel Books Pvt. Ltd.,2008, “11 to

14”,”29 to 31”, “70 to 75”, “82 to 98”, “103 to 104”,”112 to 115”, “126 to 128”,

“218 to 229”, “232 to 233”.

INTERNET:

www.managmenteducation.com

www.livemint.com/shoppers-stop-plans-to-open-15-st.

www.financialexpress.com/news/raheja-Group-to-live-off-shopper-stop

www.shoppersstop.com

www.indianretailnews.com


http://www.shoppersstop.com/


ANNEXTURE

SURVEY QUESTIONNAIRES

Dear Customer,

I m the student of INTERNATIONAL INSTITUTE OF BUSINESS STUDIES, is

conducting a study on the consumer behaviour of three retail outlets in

Shopper's Stop . Please fill in the following questionnaire to help us in our

survey.

NAME: OCCUPATION:

AGE: 18-28 28-38 38-48 48-58 58-65

GENDER: Male Female

1) How often do you shop?

Once a week Fortnightly Once a

month

2) Which of the following stores do you shop at?

Big Bazaar Shopper's Stop Marks & Spencer

Others (specify) ____________________________________

3) What do you mostly shop for at the mentioned stores?

Clothing Accessories Groceries



Others (specify) ____________________________________

4) Why do you shop at the above-mentioned store?

5) Rank your preferences for shopping:

Proximity Quality

Brand Price

Store Layout One-stop shopping

6) Does advertising and promotion influence your shopping decisions?

Yes No

7) Which form of promotion do you think is most effective?

Print TV Radio

8) Indicate your satisfaction level based on the following parameters for

the following stores:

Retail Outlet Unsatisfie Satisfied Highly Not Visited



d Satisfied

Big Bazaar

Shopper's Stop

Shopper;s stop

9. Do you prefer branded clothing?

_Yes

_ No

_Sometimes

10. Are you member at the Shopper’s Stop?

_Yes

_No

11. What you look for the most while shopping in Shopper’s

Stop ?

(Rate your preferences)

_Price

_Quality

_Comfort and fitting

_Color

_Fashionable

12 .Low cost , good fitting and comfort , variety in clours, if all are given

for formals despite of brand name , will you like to buy the brand?



_Yes

_No

13.Which brand do you prefer for formals ?

_Austin reed

_Vanheusen

If others please specify ?___________________

14. Why?_________________________-

15. What do you prefer most in this brand ?

_Formal shirts

_Trousers

_Formal Skirts

_Casuals

12.Why ?____________________

16.What influences you to buy this brand ?

_Pricing

_Brand name

_Comfort &Fitting

_Fashionable /Trendy

17 . To what extent you are statisfied with this brand?

_Highly statisifed

_Satisified

_ Neutral

_Dissatisfied



_Highly dissatisfied

18. Suggestions for that particular brand :-

_________________________________________________________

_________________________________________________________

_________________________________________________________

Thank you , dear customer for your precious time and

response.


Project on consumer Behaviour at Shoppers Stop ltd.

Documents

Transcript of Project on consumer Behaviour at Shoppers Stop ltd.