Rishabh.m 1351-r.m.s individual retail visit report

1 | P a g e R I S H A B H M A H E S H W A R I / M B A 3 - 1 3 5 1

INDIVIDUAL RETAIL VISIT REPORT OBSERVATION AND ANALYSIS OF SHOPPERS STOP-INORBIT,

MALAD, MUMBAI

RISHABH MAHESHWARI/MBA3-1351 RETAIL MANAGEMENT STRATEGIC


NAME: Rishabh Maheshwari

STUDENT ID (UBS): 1351

PROGRAMME: Masters of Business

Administration

GROUP: MBA3 Aug ’13-’14

SEMESTER: 3rd Semester

MODULE TITLE: Retail Management strategic

MODULE TUITOR: Prof. Bibhas Basumatary

ASSIGNMENT 1 TITLE: Observations and .

. Analysis of a Retail Store


Brand Philosophy……………………………………………………………………… 4

Socio-Economic Importance of Shoppers Stop, Malad Mumbai…………………… 7

Identifying the Retail Type and its Product/Service Categories………………… 10

Key Strategic Drivers of the industry…………………………..............................14

Modern Technology deployed by Shoppers Stop ……………………………………16

Marketing Mix Strategy applied by Shoppers Stop .................................................... 18

Table of Contents


With an unparalleled assortment of the leading international and national brands in clothing for

men, women, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and decor

products, our stores aim to provide shoppers a truly international shopping destination. At

Shoppers Stop we believe in a world of limitless possibilities. We always Set benchmarks, cross

limits, achieve the impossible and celebrate our successes. Innovation being our key driver, we

have adopted a new philosophy of "Start Something New" to give retail a new dimension.

We endeavor to Start Something New in performance.

Start Something New in products.

Start Something New in customer service.

Start Something New in Life.

Brand Philosophy


About SHOPPERS STOP Ltd.

Shoppers Stop Ltd., a pioneer in modern retailing in India, has been promoted by K

Raheja Corp. Group (Chandru L. Raheja Group), one of the leading groups in the

business of real estate development and hotels in the country.

Shoppers Stop Ltd along with its Subsidiary Company Hyper city Retail (India) Ltd and

Joint Venture Companies Time zone Entertainment Pvt. Ltd and Nuance Group (India)

Pvt. Ltd. operates more than 3.93 million sq. Ft. in the country.

Shoppers Stop and its associate companies are involved in retailing through department

stores, specialty stores, entertainment zones and large hypermarkets.

Management- SHOPPERS STOP Ltd.

Chandru L Raheja Chairman / Chair

Person

B S Nagesh Vice Chairman

Govind Shrikhande Managing Director Ravi C Raheja Director

SHOPPERS STOP: AN OVERVIEW

2013


Shoppers Stop is a leader in the Indian Retail Sector and one of the pioneers in setting up large format

department stores chain in India. The foundation of shoppers stop was laid on October 27th, 1999, by the

K. Raheja group of companies. Being amongst India’s biggest hospitality and retail estate players, the

group crossed yet another milestone with its lifestyle venture – shoppers stop.

Socio-Economic facts of shoppers stop.

Retail thrives in a growing economy, when incomes are on the rise and consumers have great

hopes about the future. When consumer sentiment turns negative due to job losses or a drop in

income, spending is either skipped or postponed.

When spending is postponed, retail is impacted, especially the clothing and accessory categories.

This directly results in a drop in like-for-like sales, impacting profitability and growth. The retail

sector saw the death of several players in this period, and a number of others had to re-strategies

their formats and balance sheets.

We also learnt that it is essential to evaluate businesses. Businesses/formats/stores that are never

going to be profitable need to be closed. Postponing this can only cause more harm. In some

cases the customer may not be ready, or your scale may not support profitability.

Every business has certain fixed variable costs. Some of the costs and factors impacting business

are never going to be in the control of a company. For example, economic growth, oil prices or

stock indices are not in the control of any single company. There is no point in sweating when

these factors become negative.

Identifying the controllable costs, such as energy and employees, and gaining full control over

them helps the business focus its energies on the right metrics. We were able to cut power

consumption costs by more than 25 per cent over a 15-month period.

Another important thing during the slowdown is to communicate. When the sky starts falling,

everybody notices it. But if one communicates steps that are being taken and the rationale behind

them to everyone, fear gets converted into target-oriented objectives. We communicated issues

very clearly across the organisation and had all our stakeholders rallying behind us completely.

Socio-Economic Importance of Shoppers Stop-

In orbit mall Malad, Mumbai


Buying habit of customer in shoppers stop.


SHOPPERS STOP CUSTOMER CLASSIFICATION ON BASE OF SOCIO-ECONOMIC

CLASSIFICATION

Premium-conscious Value-conscious Time-conscious

Percentage of shoppers 26 46 28

Socio-economic

classification

A1 A1&A2 A1

Age group(years) 15-40 15-35 15-40

profile Males and female in almost

equal number; married and

single people in almost equal

numbers

Single males Single males

Shopping habits

Visit with family and friends,

80% are first citizen

Visit with friends and

family most likely

walk-in customers

Visit with friends and

family, 70% are first

citizens

spend high average average

Shopping statements Shopping helps me buy the

latest

I want to buy first and latest

I buy only brands and quality

I do most of shopping

during the sale

I like to browse around

and may not buy

I don't care about

ambience as long as

store is conveniently

located

I like to finish

shopping quickly


Retail type

Shoppers’ Stop is considered as a multi brand retail outlet because of its variety of products

meant for the entire family. The vast and diverse range of products available in Shoppers’ Stop is

rare to find in any of the retail chains of India. Again under this vast range they offer different

categories and style which caters to the need of customers from various economic slabs

Shoppers’ Stop is considered to be a pioneer in departmental one stop shop concept and has

brought retail revolution in India so it understands the customer psyche better than many of its

competitors

Shoppers’ Stop is considered as one stop multi-brand retail outlet providing leading international

and national brands in clothing for men, women and kids, accessories, cosmetics, footwear and

home furnishing.

Identifying the retail type and its

product/service

Types of product


• Jack & Jones, French Connection, CK Jeans, GAS, ESPRIT, Tommy Hilfiger, Mustang & Mango in apparel segment

• Loccitane, Lancome, MAC, Clinique & Estee Lauder in cosmetics • CK, Armani & Gucci in sun glasses • Burberry, Nina Ricci, Diesel & Boss in watches

Types of service

International brands


Guerrilla marketing

Interactive marketing

1. Guerrilla marketing

Is an unconventional system of promotions that relies on time, energy and imagination rather than a big

marketing budget? Typically, guerrilla marketing tactics are unexpected and unconventional; consumers

are targeted in unexpected places, which can make the idea that's being marketed memorable, generate

buzz, and even spread virally. Guerilla Marketing involves unusual approaches such as intercept

encounters in public places, street giveaways of products, PR stunts, any unconventional marketing

intended to get maximum results from minimal resources. More innovative approaches to Guerilla

marketing now utilize cutting-edge mobile digital technologies to really engage the consumer and create a

memorable brand experience. Principles of guerrilla marketing Guerrilla Marketing is specifically geared

for the small business and entrepreneur. It should be based on human psychology instead of experience,

judgment, and guesswork. Instead of money, the primary investments of marketing should be time,

energy, and imagination. The primary statistic to measure your business is the amount of profits, not

sales. The marketer should also concentrate on how many new relationships are made each month. Create

a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse

products and services. Instead of concentrating on getting new customers, aim for more referrals, more

transactions with existing customers, and larger transactions. Forget about the competition and

concentrate more on cooperating with other businesses. Guerrilla Marketers should always use a

combination of marketing methods for a campaign. Use current technology as a tool to empower your

business.

2. Interactive marketing

Is a strategies adopted by then retailers where they allow customers to customize the product as per their

preference. This strategy is mainly followed by service Industries like hotels but Shoppers Stop is able to

carve out this facility in a retail store.

The concept that has already made a debut at Shoppers Stop outlets in Mumbai, allows customers — who

are referred to as guests— to go through various stages of activity in creating their own teddy bear (or

other stuffed toy), including choosing a stuffed animal, stuffing it, giving it a heart, stitching, fluffing,

Key strategic drivers of the industry


naming and dressing it. And though the toys are priced at a premium level ranging between Rs 595 and

Rs 1,295 for stuffed animal and add-ons such as sound chips, clothes and accessories coming at extra cost

3. Market strategies of the industry

• I also start a new concept in the retail industry by setting up trial rooms with day and night

lighting options so that consumers could check how garments would look during the day and in

the night.

• They should educate their employees more about customer relationship managements.

• They should start facilities for customers like shoppers stop gives parking facilities to their gold

members.

• Some retailers have Tie-ups with restaurants, as customer gains points they can also redeem them

at selected restaurants or ice cream bars etc...


Cash Register Express

Cash Register Express (or CRE) is a cost-effective computerized

cash register that keeps your inventory costs down, reduces theft and

makes more money!

CRE is Windows-based POS system exclusively for retail and

video stores.

Broad compatibility

Microsoft Access compatible

QuickBooks compatible

Radio frequency identification, a technology similar in theory to bar code

identification. With RFID, the electromagnetic or electrostatic coupling in the

RF portion of the electromagnetic spectrum is used to transmit signals.

Modern technology deployed by the

Shoppers Stop in its operations

http://cnm.open.ac.uk/projects/rfid/images/logo.gif


Window Displays-

Exclusive windows (closed backdrop with a theme and

seasonal motif Open windows (Without backdrop and

passerby can see interior of store) E.g. Apparel & Related

accessories.

Use of Technology

It is also one of those very few retail chains to have ERP (Enterprise Retail Planning), which is

considered one of the best retail planning system in the world. ERP helps in quick decision making

process. With this Shoppers’ Stop can open new stores faster and can get necessary information about

merchandise and customers online?

Shoppers’ Stop uses a mix of technologies and systems like JDA suite for retail business and SharePoint

portal for their internal and external collaboration. It also uses Microsoft Exchange and Communication

Server for messaging. Technologies like Oracle Financials is used for financial accounting, NetApps'

SAN and NAS technologies for storage consolidation and virtualization, Business Objects for reporting,

blade servers and multi-core servers with VM Ware for application deployment, and Wi-Fi networks in

offices. For stores and distribution centers they use operational activities with Symbol wireless scanners.

Shoppers’ Stop replaced its legacy system in 1998 and selected JDA. JDA solutions ensured consistency

and uniformity of fixtures across all its stores thus enhancing the efficiently and helping the chain grow

profitably as well as ensuring the company’s success — particularly that of its new hypermarket business.

JDA solutions have helped Shoppers’ Stop in many ways:

Optimizing floor space and visualizing the layout prior to construction

Inventory planning improvement through planned and systematic forecasting

Provide a high magnitude of analysis and reporting

Efficiently manage high inventory turns and volumes

Improve the management of metrics, including service and inventory levels

Shoppers’ Stop also insists on the use of PeopleSoft HRMS, business intelligence solutions, e-

learning solutions, customer feedback systems and mobile point-of-sale systems.


How does a retailer inform his customers about the product he has an offer on?

How does he lure them to visit his store and shop?

How does he achieve his sales target?

The answer to all the above questions lie in the retail marketing mix strategy the retailer follows

to pursue his marketing objectives. All these strategies are explained below.

The retail marketing

mix

product

place

price

promotionpeople

customer sevice

Physical evidence

Marketing Mix Strategy applied


Product

General Products: Shoppers’s Stop includes domestic as well as international retail

articles and products

Private Label: Shoppers Stop has also launched their own private labels such as STOP.

Others: In addition to the above, Shoppers Stop also does promotional marketing. E.g.

they launched ZooZoo range and also other similar products have been launched. These

also form the part of the Product as SS.

Services are: - Pre-purchase services include accepting telephone & mail orders,

advertising, window & interior display, fitting rooms, fashion shows.

It provides post purchase service including shipping & delivery, gift wrapping,

adjustments & returns, alteration & tailoring.

It also provides ancillary services including general information , check cashing,

parking, restaurants, repairs, interior decorating, credit etc.

Place

Retail-friendly supply network, connects its locations online all over India.

(http://www.shoppersstop.com/)

Shoppers Stop is Indian largest chain of Superstores with an aggregate acquired area of

Store Size: 1,17,000 sq. feet in Malad – Inorbit Mall

Retail Presentation Area: 56% – 64% of total store size

Shoppers Stop Ltd. Excels in Service quality and the stores of a high class feel which is

different from other multi-brand retail stores.

Shoppers Stop Ltd. Stresses on Class, Comfort, Convenience where ever it is located.

Shoppers Stop Ltd. not only concentrates on the location of the stores but also

emphasizes on the ambience and service excellence.

http://www.shoppersstop.com/


Shoppers Stop is Indian largest chain of Super Stores and has many stores in whole of

India.

Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at

a High Price.

Shoppers stop caters to different segments of the consumers.

Men’s apparel

The range of men’s clothing starts from Rs 500 being the lowest to nearly 6ooo highest.

Women’s apparel

The range of women’s clothing starts from Rs400 to Rs 10000

Men’s accessories like sunglasses, belts, watches, shoes etc. ranges from Rs 1000 to Rs 20000.

Women’s accessories like sunglasses, watches, belts, sandals, earrings etc has the price range of

Rs 2000 to Rs 40000.

In the kids section prices of toys and other accessories ranges from Rs 100 to Rs 5000

In the cosmetics section there are products like deodorants, skincare cosmetic, and make-up stuff.

Their price ranges from Rs 200 to Rs 2000.

Pricing


Types of Pricing

Promotional discounts

Seasonal Pricing

Image Pricing.

Product form Pricing

Psychological Pricing

Product bundling Pricing

Value Pricing.

Promotion

Festive Promotion Campaign “PARIKRAMA” Customers getting opportunity to interact with local

artisans.

Organizes major Promotional Events from time to time e.g. “Fly to Santa Land”, “Gear up for the school”

and “Salwar Kameez Dupatta Exchange” etc.

INHOUSE PROMOTIONS

Peaked during summer, Diwali and Christmas – “Festival of Delights” program.

Promotions based on themes – matching decorations, liver bands and other.

EXTERNAL PROMOTIONS

Advertising on media - Advertising contract

Shoppers Stop offer Gift Vouchers of denomination ranging from Rs 250 to Rs 5000

People

Front-line staff will have a direct impact on perceptions

Grey black uniform to suit with the Shops interiors

Good personality to attract the customers inside the shop

Friendly nature


Customer service

The name "First Citizen" reflects their commitment to offering their customers the ultimate shopping

experience

As a First Citizen, customers shopping experience becomes even more enjoyable with:

• Reward Points for every time you shop at Shoppers Stop.

• Exclusive benefits & privileges

• Exclusive offers ever so often

• Updates on what you can look forward to shop for at Shoppers Stop

• Exclusive cash counters at Shoppers Stop so you can spend more time shopping than waiting in a

line

Physical evidence

Lovely fresh fragrance at entrance

Spacious landing strip

Wall space utilized for mirror and print ads of the brand or the product near

Also utilized it by providing self's and constructing trail room around it

Mirror finish style flooring

Escalators

No stacking bellow knee level

Men’s Apparel stacked in a unique style.

One type and many sizes together in ascending order

39

40

41

42

44


Shoppers Stop: Layout Malad inOrbits Mall

Ground Floor

1st Floor

2nd Floor


TARGETING

RETAIL STRATEGY

On an average stores 30000 pieces of different products.

Merchandise sourced from 250 exporters in Delhi, Mumbai, Bangalore

Centralized buying for all products except cosmetics and perfumes to avoid sales tax

Carries 63 days of stock.

REVENUE MIX (Category Wise Sales (%))

Men’s ready to wear store

Offering expanded to suitings, boys and ladies

Casuals, kids wear, jewellery, fragrances, cosmetics and watches

Rishabh.m 1351-r.m.s individual retail visit report

Business

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