Shopper Experience Marketing

8/13/2019 Shopper Experience Marketing

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Shopper Experience

Marketing

K J S O M A I Y A I N S T I T U T E O F

M A N A G E M E N T S T U D I E S

& R E S E A R C H , M U M B A I

1 / 1 / 2 0 1 3

Tamanna Godara15| Sudeep

Malik 24| Harshal Sawant 38|

Siddharth Shah 42| Ritesh

Sharma 45|


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Contents

1. Overview of Consumer Durables Market

1.2 Key Categories of Consumer Durables

1.3 Notable Trends in Consumer Durables Sector

2. About The Retailer- Tata Croma

3. Shopper Experience Marketing in Home Entertainment

category

3.1 Shopper Segments

3.2 Marketing Initiatives

3.3 Stakeholders Role Defined

3.4 Financials

3.5 Integrated Marketing Activity Planning

3.6 Measuring Success


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Policy support

100 per cent FDI allowed in the electronics hardware-manufacturing sector under the

automatic route; Approval of 51 per cent in multi-brand would further fuel the growth in this

sector

Duty relaxation, schemes such as EPCG, EHTP to provide tax sops

National Electronic policy (2012) to boost investment in the sector

1.2 Key Categories of Consumer Durables

The Indian consumer durable segment can be segmented into three groups:

White Goods Brown Goods Consumer Electronics

Air Conditioners Microwave Ovens TVs

Refrigerators Cooking Range Audio & Video Systems

Washing Machines Chimneys Electronic Accessories

Sewing Machines Mixers PCs

Watches & Clocks Grinders Mobile Phones

Cleaning Equipments Electronic Fans Digital Cameras & Cam-coders

Other domestic appliances Irons DVDs


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Consumer Electronics Key Products:

Colour TVs (CTVs)

CTVs are the largest contributors to this segmentMarket size was estimated at 23.0 million units in 2012

Introduction of HDTVs is set to drive demand growth from affluent consumers

Liquid crystal displays (LCDs)

LCD sales in India is expected to touch 9.9 million units in 2012

The price decline due to relatively low import duty on LCD panels, higher penetration

levels, and the introduction of small entry-size models are key growth drivers in the segment

Digital video discs (DVDs)The Indian DVD market accounted for 4.0 million units sold in 2011

The organised market has a share of 80 per cent in the total market

Direct-to-home (DTH)

The set-top box (STB) market is growing rapidly, due to the expansion of DTH and

introduction of the conditional access system (CAS) in metros

The DTH market was worth USD2.2 billion in FY12; the subscriber base reached 44 million

from 23 million during 2010-12, subscriber base is expected to reach 200 million by 2018

,thereby making India the one of the worlds largest DTH market

1.3 Notable Trends in Consumer Durables Sector

Increasing presence of organised retail

The Indian retail market is currently worth USD516 billion and is likely to expand at a

CAGR of 18.8 per cent to USD866 billion by 2015

The penetration of modern retail is 12.0 per cent in consumer durables segment

The sector is witnessing the emergence of modern durable retail chains and e-retailers like

Tata Croma, Reliance Digital, E zone


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Expansion into new segments

Companies are expanding their product portfolio to include products like high-definition

televisions (HDTVs), tablets and smart phones, etc, demand for which are rising with

consumers income, easy availability of credit and wide use of online sales

Increased affordability of products

Advancement in technology and higher competition are driving price reductions across

various consumer durable product segments such as computers, mobile phones, refrigerators

and TVs

Focus on energy-efficient and environment-friendly products

Leading companies have introduced star-rated, energy-efficient ACs and refrigerators

Companies also plan to increase the use of environment -friendly components and reduce e-

waste by promoting product recycling


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2. About The Retailer- Tata Croma

Company Profile:

TATA Croma is the nation's first large format specialist retail chain for consumer electronics

and durables with successful expansion into Croma Zip stores, Croma Kiosks and the latest

online vertical, www.cromaretail.com. Croma has been launched by Infiniti Retail Limited, a

100% subsidiary of Tata Sons. It efficiently and successfully runs Croma's retail operations in

India.

The Croma chain of stores offers, in different cities of India, a wide range of consumer

electronics products across categories and brands. The stores are spread over 12,000 to

20,000 sq ft and have more than 6,000 products and 180 brands in eight categories: home

entertainment, small appliances, white goods, computers, communication, and music,

imaging and gaming software. Their own label by the name of Croma is well recognized for

offering innovative and unique products.

Ecommerce is their latest venture to achieve yet another important goal, which is to bring

customer the best shopping experience on the go & reach every door step in the nation.

The company, headquartered in Mumbai, had a technical and sourcing agreement with

Australian retail giant Woolworths until October, 2011 when they parted. Under the

arrangement Infiniti Retail owns and runs retail operations in India while Woolworths

provides technical support and strategic sourcing facilities through its global network.


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Company Snapshot:

About Specialist Consumer Electronic and Durable Retail Chain.

Stores 90 Stores Pan India.Parent Group Infinity Retail Ltd

Managing Director Ajit Joshi

Founded October 9t , 2006.

Head Quarter Mumbai

Industry Retail

Tag Line We Help You Buy

1st Store Juhu, Mumbai

Support Office Contact Infiniti Retail

Unit no. 202, 2nd floor, Akruti Centre PointNext to Marol Telephone Exchange

MIDC, Seepz, Andheri (East)

Mumbai 400 093

India

Phone: +91 (22) 6761 3600 Fax: +91 (22) 6710 1903

Website:www.cromaretail.com

Tata Croma is operating in two formats, the Megastore and the Zip store. The Zip stores are

found in airports mostly. Megastores are large format stores, the store size ranges from 15000

20000sq.ft, theses are well planned and designed for world class in store experiences and

backed by robust after sales service. The stores are in Mumbai, Pune, Bangalore, Chennai,

Aurangabad, Delhi NCR, Hyderabad, Punjab and Gujarat. The stores in Mumbai ranges from

15000-22000 sq. ft in area, in Bangalore the size is 22.000 sq. ft. the Croma Zip stores has

size ranges of 25006000 sq. ft.

There are total 90 stores across the nation including both megastore and the zip format. There

are 6 Zip stores; 1 at Santacruz airport, Vashi and Fort in Mumbai, 1 in Delhi airport, 1 in T3

Domestic airline and T3 international airline.

Table 01
http://www.cromaretail.com/http://www.cromaretail.com/http://www.cromaretail.com/http://www.cromaretail.com/


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Lines of Business :

All the categories mentioned below are the range of products offered to customers at Croma

outlets across the nation:

Computers& Laptops

HomeEntertainment

Communication LargeAppliances

SmallAppliances

Notebooks TV Plasma PDAsSplit AirConditioner

KitchenAppliances

Desktops TV LCD Mobiles PhonesWindow AirConditioner

VacuumCleaners

LCD

MonitorsHome Theatre

Mobile

AccessoriesRefrigerators Irons

Printers and

Office

solutions

Audio System Fixed PhonesWashing

Machines

Lightening

Storage

MediaDVD/VCD Cordless Dish Washers

Personal

care

Webcam MP3 Players Bluetooth Dryers

InputDevices

IPOD Docks

3. Shopper Experience Marketing

Unleashing the Next Wave of Value

Shopper marketing continues to be one of the fastest growing and most promising areas for

marketing investment, accounting for approximately 5 to 10 percent of total advertising and

promotions spending, based on Booz & Company client experience. To sustain this rapid

growth and fulfill the promise of shopping marketing, however, CPG manufacturers and

retailers must evolve beyond a siloed, tactical approach to shopper marketing and manage it

as a strategic capability that is better integrated with other demand-generation activities.

Table 2


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Shopper marketings potential is rooted in its focus on gathering insights about consumers

when they are in shopping mode and applying these insights to influence their purchase

decisions. From the at-home research conducted by shoppers to the mobile devices that

provide the nexus between the home and the store to the shelf, shopper marketing offers a

means of influencing shoppers along every point on the path to purchaseand in the process,

building brand equity and driving sales lift.

At Home

Paid media (e.g., television, magazines, online)

Relationship marketing (e.g., e-mail, text messaging)

Product placement

Search before you buy (e.g., coupons, manufacturer websites, online reviews)

Social media

On The Go

Mobile (e.g., apps)

Out-of-home (e.g., billboards, street furniture)

Product placement

Alternative out-of-home (e.g., gas pump advertising) Interactive vending

Inside The Store

Signage on shelf

In-store coupons

Video displays

Interactive Media (e.g., shopping carts, scanning devices, kiosks)

Sampling Programs

Displays (e.g., end caps)


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The Home Entertainment category of Samsung inside the Croma store

3.1 The Various Shopper Segments

Browser

Bargain Seeker

Variety Seeker

Authoritative

Budget Conscious

Consultative

Discount Seeker

Infrequent

Inquirer

Indecisive

Individualistic

Price conscious

Brand Conscious

Quality Conscious

Out of these segments we have majorly focused on 3 segments

Browser : Young 15-25age bracket, college/office goers, SEC B & C, Enjoy

shopping


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Involved: Young & Old, 25-45+ age bracket, SEC A, willing to pay for quality and

brand

Budget Conscious: SEC B & C, is budget driven, can substitute brand and quality,

looks for deals

3.2 Marketing Initiative suggested


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1. Experience RoomBuild an Experience Room to allow shoppers step in and enjoy the latest offering

from SamsungTVs, Home Theater System and make customers go.

2. Happy Holidays Campaign!Let The Televisions Bring The Holiday Season to Life!!

3. The Next Couch King Campaigna. ONE: If you are sitting at our Samsung Couch at this particular hour of day,

b. TWO: Spot the advertisement playing and

c. THREE: Answer a question,

You stand to win the Samsung 32 LED TV or Samsung Smartphone .

4. Tweet in 140 secs!!Tweet 5 Models Of Samsung Television Under #IPL2014 And 5 Lucky Winners

Stand A Chance To Win Two Tickets to IPL 2014

5. The Samsung Bucket List!Come to our Samsung Bucket List Booth!

Buy any 2 or more Samsung products and win exciting experiences.

6. Come|Touch|Play|Experiencea. Gaming ExperienceTwo Tvs Placed Side By Side And Play The Game Of

Your Choice!

b. Motion Sensor Stand In Front Of Samsung Tv, Swipe Your Hand & See

What Happens..!


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3.3 Stakeholders Role Defined

CromaRetailer

SamsungBrand

Employees/Staff

Shoppers/Customers

3.4 Financial Case and Budget Allocation

Marketing Activities Budget

Experience Room Installation 50,000

Couch King Campaign 4 weeks (Jan) 72000

Tweet in 140 Secs (Feb-March) 10,000

Camera & Software Setup Cost (JanFeb) 3,000

Total 135,000


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3.5 Integrated Marketing Activity Planning

There are four primary integrated programs.

A. InStore Programming (promotions, displays)

B. Traditional Media (radio, print, direct)

C. Existing Media (Twitter, Facebook, Blogs, Website)

D. Loyalty Program


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Flowchart of Activities

Media Exposure of Croma & Samsung

Print Ads

OOH

TVCs

In Store Promotions

Displays

Sales Staff

Announce

ments

Danglers &

Promotions

Customer

Customer

visits

store

Engagement of Retailer &

Brand

Exposure to

Samsung Brand

via Marketing

Activities

Customer

Behaviour inside

store

Engagement of Brand, Sales staff

& Shopper

Engagement of Sales Staff

& Retailer

Shopper Enrolls for Loyalty

Program


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3.6 Measuring Success

Brand develops win-win programs with retailers to deliver long term & sustainable

business agenda.

Brands Goal:

To increase unit sell or value sell

Retailers Goal:

Increase same store sales

Increase ticket size

Thus need to measure success from both point of view

Short Term Measures

Eye tracking studies

Video images

Search Coils

Number of Footfalls/week

Calculate % increase in number of footfalls due to promotional activities over

last years same selling period.

Calculate avg. YoY growth in number of footfalls.

Difference between above two will give number of footfalls that brand has

actually achieved because of promotional activities.

Sales per sq. ft.

Conversion ratio


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Number of items sold/week

Long Term Measures

Loyalty Card

Analyzing frequency of purchase

Analyzing purchasing pattern

Shoppers Share of wallet

Spend On Brand / Total spend on category

Surveys

To analyze behavioral pattern for customers


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Figure 1

Typically, Shopper Marketing measurement falls into three buckets and can be short term or

longer term (Figure 1). There is a parallelto consumers and brands, where short-term

behaviour is measured in units and sales, whereas attitudes towards brands are formed and

measured in the longer term.Alongside all the consumer behavioural and attitudinal data,

market shares, penetration etc, which marketing teams have traditionally measured, a

complementary set of shopper data points are now available to those who want to measure

their shopper programmes. There is more data available now that retailers have vast amounts

of transaction data through electronic point-of sale systems and loyalty cards.

Shopper Marketing activities generate new types of data, beyond macro-marketing data and it

needs fresh analytical skills. Linked closely to shopper programme objectives, Shopper

Marketing success can be assessed with both short-term and long-term benefits. In the short

term, shopper data relates to one of the following, either units sold, percentage uplift in sales

or behaviour data, which measures changes in how shoppers behave. In the longer term,

shopper attitudes and perceptions can be monitored.


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common with the brand, as they seek to deliver greater satisfaction to their shoppers.

Increasingly, larger organisations have Shopper Marketing teams, who devise programmes in

conjunction with retailers and their retail account teams. The shopper marketer would define

the initial shopper objectives, both short-term and longer-term aligned with the brands

larger objectives. Often such shopper teams are quite lean and do not have the resources to do

large-scale data analytics independently. In the spirit of integrated marketing, the shopper

analytical capability can rest anywhere within the data and analytics teams. They can

integrate shopper thinking and success criteria into their analytics set, as this requires a

somewhat different focus, using different kinds of data. Rather than be divisive here, it pays

dividends to build capabilities of the overall data team to take on board shopper metrics and

data sources.

Shopper Experience Marketing

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