A Project Study Report

8/7/2019 A Project Study Report

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A PROJECT STUDY REPORT

ON TRAINING UNDERTAKEN ATSHOPPERS STOP

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENT

SUBMITTED TO:- SUBMITTED BY:-

MS. GEETI MAM


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ACKNOWLEDGEMENT

The report what I have presented is not the made outcome of my labor alone.

There are dozens of hands buttressed me all through the programme it doesnt

go without thanking all of those who constantly keep me on the move.

I would like to give heartily thanks to International School of Informatics &

Management (IIIM) and the Faculty, who have given us an opportunity to learn

something practical apart from books.


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Table of content

Chapter 1. Present Indian retail scenario

y Current scenario

y Formats of retailing in India

y Malls in India

y Challenges of Retailing in India

Chapter 2. Scope of Indian retail Market

Chapter 3. Strategic Planning in retailing

Chapter 4. Introduction of retail unit

y General Introduction

Mission

Vision

Values

y Specific Introduction

Chapter 5. Departmentalization of shoppers stop

Chapter 6. Retail location strategy

Chapter 7. Retail marketing mix

y Pricing mix

y Promotion mix

y Product mix

Chapter 8. Retail customer type

Chapter 9. Supply chain management


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Chapter 10. Use of IT in the store

Chapter 11. Customer relationship management strategy

Chapter 12. Major competitors

Chapter 13. Observation and suggestion

Chapter 14. Biblography


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Ch. 1- Present Indian retail scenario

Retail is clearly the sector that is poised to show the highest growth in the next

five years. The sector is set for a revolution, as both the present players and

new entrants are gearing up to explore the market. This sector contributes

10% of India's GDP and the current growth rate is 8.5%. The present size of the

organized retailing sector is approximately 3% and is expected to grow to 25-

30% by the year 2010. There are about 300 new malls, 1500 supermarkets and

325 departmental stores currently under construction. Many players are

coming up with huge investments, due to which the present 12 million mom-

and-pop shops and kirana stores fear losing their business. Most predictions

say that the sector might reach to US$ 400-600 billion by the year 2010. Global

retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others

are ready to enter the retail markets. The rising demand of branded products

and increase in purchasing power have lured these companies to enter the

market.

Modern retail development in India is focused on the following cities:

West

y Mumbai

y Pune

y Ahmedabad

North

y Delhi and the National Capital Region

South


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y Chennai

y

Banglore

y Hyderabad

East

y Kolkata

Leading Indian retailer Bata India Ltd, Big Bazaar, Crossword, Ebony Retail

Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music

World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop,

Subhiksha, Titan Industries, Trent and the new entrants penetrating the

market soon will include Reliance Retail Ltd, Wal -Mart Stores, Carrefour,

Tesco, Boots Group, etc.

y Current scenario

A glimpse of the International Retail

y One of the world's largest industries exceeding US$ 9 trillion

y 47 global fortune companies & 25 of Asia's top 200 companies are

retailers

y Dominated by developed countries

y US, EU & Japan constitute 80% of world retail sales.

y Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

USA - 85%

Taiwan - 81%


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Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India - 3%

Key trends

The existing players like Big Bazaar, Shoppers' Stop, Piramyd are

expanding to smaller towns and cities. Many other business houses are

planning to enter the retail sector either on their own or through

partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are

going to enter the market soon. Even rural areas will provide a huge

opportunity to be explored.

Estimates and Predictions

y The industry is estimated to be more than US$ 400 billion by a study of

McKinsey.

y The Economist Intelligence Unit (EIU) estimates the retail market in India

to increase to US$608.9 billion in 2009 from US$394 billion in2005.

y A KPMG report says that the organized retail would grow at a higher rate

than GDP in the next five years.

y The retail sector would generate employment for more than 2.5 million

people by the year 2010, says an analysis by Ma Foi Management

Consultants Ltd.


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Benefits of FDI in Retail Sector

y Higher competition would lead to higher quality in products and

services.

y Better lifestyle as better products would be introduced.

y Exports would increase due to greater sourcing of major players.

y Investment in whole supply chain would increase.

y Technology would be upgraded in terms of logistics, production, and

distribution channels.

y The markets of the sector would flourish and develop.

y Employment would increase and skills & manpower will develop.

y A strong retailing sector would promote tourism.

y Economies of scale would help lower consumer prices and increase the

purchasing power of the consumer.

y In the long term it will be beneficial in the up-gradation of agriculture

and small scale & medium scale industries.

y Formats of retailing in India

Popular Formats

Hypermarts

Large supermarkets, typically (3,500 - 5,000 sq. ft)

Mini supermarkets, typically (1,000 - 2,000 sq. ft)

Convenience store, typically (7,50 - 1,000 sq. ft)


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Discount/shopping list grocer

Traditional retailers trying to reinvent by introducing self-service formats as

well as value-added services such as credit, free home delivery etc.

The Indian retail sector can be broadly classified into:

a) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector.

Traditional types of retailers, who operate small single-outlet businesses

mainly

using family labour, dominate this sector .In comparison, super markets

account for a small proportion of food sales in India. However the growth rate

of super market sales has being significant in recent years because greater

numbers of higher income Indians prefer to shop at super markets due to

higher standards of hygiene and attractive ambience.

b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health

and beauty products .Here also small, single-outlet retailers dominate the

market .However in recent years, a few retail chains specializing in these

products have come into the market. Although these retail chains account for

only a small share of the total market , their business is expected to grow

significantly in the future due to the growing quality consciousness of buyers

for these products .

c) CLOTHING & FOOTWEAR


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Numerous clothing and footwear shops in shopping centers and markets

operate all over India. Traditional outlets stock a limited range of cheap and

popular items; in contrast, modern clothing and footwear stores have modern

products and attractive displays to lure customers. However, with rapid

urbanization, and changing patterns of consumer tastes and preferences, it is

unlikely that the traditional outlets will survive the test of time.

d) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market,

very few large and modern retailers have established specialized stores for

these

products. However there is considerable potential for the entry or expansion

of

specialized retail chains in the country.

e) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number offoreign

companies during the post liberalization period. A greater variety of consumer

electronic items and household appliances became available to the Indian

customer. Intense competition among companies to sell their brands provided

a strong impetus to the growth for retailers doing business in this sector.

f) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have

encouraged consumer expenditure on leisure and personal goods in the

country.


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There are specialized retailers for each category of products (books, music

products, etc.) in this sector. Another prominent feature of this sector is

popularity of franchising agreements between established manufacturers and

retailers.

y Malls In India

Over the last 2-3 years, the Indian consumer market has seen a significant

growth in the number of modern-day shopping centers, popularly known as

malls. There is an increased demand for quality retail space from a varied

segment of large-format retailers and brands, which include food and apparel

chains, consumer durables and multiplex operators. Shopping-centre

development has attracted real-estate developers and corporate houses across

cities in India. As a result, from just 3 malls in 2000, India is all set to have over

220 malls by 2005. Today, the expected demand for quality retail space in 2006

is estimated to be around 40 million square feet. While previously it was the

large, organised retailers with their modern, up-market outlets, and direct

consumer interface- who had been a key factor driving the growth of organised

retail in the country, now it is the malls which are playing the role.

Factors such as availability of physical space, population densities, city

planning, and socio-economic parameters have driven the Indian market to

evolve, to a certain extent, its own definition of a mall. For example, while a

mall in USA is 400,000 to 1 million sq.ft. in size, an Indian version can be

anywhere between 80,000 sq.ft. and 500,000 sq.ft. By 2005, total mall space in

the 6 cities ofMumbai, Bangalore, Hyderabad, Chennai, Kolkata, and National

Capital Region (Delhi, Noida, Gurgaon) is expected to increase to over 21.1


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million sq. ft. Compared to other big cities, Kolkata and Hyderabad are

relatively new entrants in the mall segment, but are witnessing quick growth.

Smaller cities like Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh

and Indore, are also expected to see a formidable growth in the growth of

malls in the near future. But malls in India need to have a clear positioning

through the development of differential product assortment and differential

pricing, in order to compete effectively in a growing mall market.

Segmentation in malls, like up-market malls, mid-market malls, etc. , proper

planning, correct identification of needs, quality products at lower prices, the

right store mix, and the right timing, would ensure the success of the mall

revolution in India.

y Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly

flourishing industry, retailing needs to cross the following hurdles:

Automatic approval is not allowed for foreign investment in retail.

Regulations restricting real estate purchases, and cumbersome local laws.

Taxation, which favours small retail businesses.

Absence of developed supply chain and integrated IT management.

Lack of trained work force.


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Low skill level for retailing management.

Intrinsic complexity of retailing rapid price changes, constant threat of

product

obsolescence and low margins.

The retailers in India have to learn both the art and science of retailing by

closely following how retailers in other parts of the world are organizing,

managing, and coping up with new challenges in an ever-changing

marketplace. Indian retailers must use innovative retail formats to enhance

shopping experience, and try to understand the regional variations in

consumer attitudes to retailing. Retail marketing efforts have to improve in the

country - advertising, promotions, and campaigns to attract customers;

building loyalty by identifying regular shoppers and offering benefits to them;

efficiently managing high-value customers; and monitoring customer needs

constantly, are some of the aspects which Indian retailers need to focus upon

on a more pro-active basis.

Despite the presence of the basic ingredients required for growth of the retailindustry in India, it still faces substantial hurdles that will retard and inhibit its

growth in the future. One of the key impediments is the lack ofFDI status. This

has largely limited capital investments in supply chain infrastructure, which is a

key for development and growth of food retailing and has also constrained

access to world-class retail practices. Multiplicity and complexity of taxes, lack

of proper infrastructure and relatively high cost of real estate are the other

impediments to the growth of retailing. While the industry and the

government are trying to remove many of these hurdles, some of the

roadblocks will remain and will continue to affect the smooth growth of this

industry. Fitch believes that while the market share of organised retail will


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grow and become significant in the next decade, this growth would, however,

not be at the same rapid pace as in other emerging markets. Organised

retailing in India is gaining wider acceptance. The development of the

organised retail sector, during the last decade, has begun to change the face

of retailing, especially, in the major metros of the country. Experiences in the

developed and developing countries prove that performance of organised

retail is strongly linked to the performance of the economy as a whole. This is

mainly on account of the reach and penetration of this business and its

scientific approach in dealing with customers and their needs. In spite of the

positive prospects of this industry, Indian retailing faces some major hurdles

(see Table 1), which have stymied its growth. Early signs of organized retail

were visible even in the 1970s when Nilgiris (food), Viveks (consumer durables)

and Nallis (sarees) started their operations. However, as a result of the

roadblocks (mentioned in Table 1), the industry remained in a rudimentary

stage. While these retailers gave the necessary ambience to customers, little

effort was made to introduce world-class customer care practices and improve

operating efficiencies. Moreover, most of these modern developments wererestricted to south India, which is still regarded as a Mecca of Indian Retail.

Ch. 2- Scope of Indian retail market

The scope of the Indian retail market is immense for this sector is poised for

the highest growth in the next 5 years. The India retail industry contributes

10% of the countries GDP and its current growth rate is 8.5%. In the Indian

retail market the scope for growth can be seen from the fact that it is expected

to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.


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The organized retailing sector in India is only 3% and is expected to rise to 25-

30% by the year 2010. There are under construction at present around 325

departmental stores, 300 new malls, and 1500 supermarkets. This proves that

there is a tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in

the consumers behavior. For the new generation have preference towards

luxury commodities which have been due to the strong increase in income,

changing lifestyle, and demographic patterns which are favorable.

The scope of the Indian retail market have been seen by many retail giants and

thats the reason that many new players are entering the India retail industry.

The major Indian retailers are:

y Pantaloons Retail India Ltd

y Shoppers Stop

y Bata India Ltd

y Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail

giants are also entering the Indian retail market. They are :

y Tesco

y Metro AG


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y Wal- Mart

The scope for growth in the Indian retail market is seen mainly in the

following cities:

y Mumbai

y Delhi

y Pune

y Ahmedabad

y Bangalore

y Hyderabad

y Kolkata

The scope of the Indian retail market is very vast. And for it to reach its full

potential the government and the Indian retailers will have to make a

determined effort.

Ch. 3-Strategic planning in retailing:

The retail strategy can be defined as a clear and definite plan that the retailer

outlines to tap the market and build a long-term relationship with the

consumers. A retail strategy is fundamental to the existence of the retail

organization. It helps the organization, it purpose and hoe the retailer will face

various challenges in the environment and marketplace.

Steps in the process if strategic planning in retail:

Define the business mission


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T mission st t ment is a statement of t e long term purpose of t e

organization.It describes whatthe retailer wishes to accomplish in the markets

in which itchooses to compete.It highlights the following elements:


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y The products and services that will be offered.

y The customers who will be served.

y The geographic areas that organization chooses to operate in.

y The manner in which the firm intends to compete in its chosen markets.

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Situation audit is an analysis of the opportunities and threats in the retail

environment and the strengths and weaknesses ofthe retail business relative

to its competitors. In situation analysis one conduct a research on following

factors:

M2

rk3 4 5 2 6 4

ors

Size, growth, seasonality, and Business Cycles

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Barriers to entry, bargaining power of vendors, and competitive rivalry

B 2 rr 9 3 rs 3 @ 4 r A - institute conditions in a retail market that make it difficult

for other firms to enter the market, such as scale economics, customer loyalty,

and the ability for great locations.

S6 2 B 3 3 6 o @ o 7 9 6 s- are cost advantages due to a retailers size.

B 2 r C 2 9 @ 9 @ C 8 ow 3 r of v 3 @ D ors- Markets are less attractive when only a few

vendors control the merchandise sold in it. In these situations, vendors have

the opportunityto dictate prices other terms (like delivery dates), reducingthe

retailers profits.

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2 Br

A- defines the frequency and intensity of reactions to

actions undertaken by competitors. When rivalry is high, price wars erupt,

employee raids occur, advertising and promotions expenses increase, and


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profit potential falls. Conditions that may lead to rivalries are: large number of

competitors that are all about the same size, slow growth, high fixed costs, and

a lack of perceived differences between competing retailers.

Environmental Factors

Technology, economic, regulatory, and social

Strengths and weaknesses analysis

It indicates how well the business can seize opportunities and avoid harm from

threats in the environment.

Step 3. Identify strategic plan:

In this step the retailer consider the various alternatives available for tapping

the market. Igor Ansoff presented a matrix, which looked at growth

opportunities by focusing on the firms present and potential products in the

existing and new markets. This matrix, which is popularly known as Ansoffs

Matrix, helps us understand the options available to a retailer. These

alternatives available to the retailer are:

Existing New Retail formats


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Step 4. Evaluate the plan:

This determines the retailers potential to establish a sustainable competitive

advantage and reap long-term profits from the opportunities being evaluated.

Retailer must focus on opportunities that utilize its strengths and its

competitive advantage

Step 5. Establish specific obE

ectives:

Objectives are a translation of the mission statement into operational terms.

They indicate the results to be achieved. The purpose of setting objectives is to

give direction and set standards for the measurement of performance.

Existing Market penetration:

y Increase the

market size

y Increase the

customers

y Increase the

purchase

frequency

Market development

/Expansion

y New market

segments with

existing format

y New customer

base

New Retail format

development

y New format with

existing

customers

Diversification

y New retail

formats directed

at new market

segments

Market segments

Formatted: Font: 16 pt, Bold, Italic, Underlin


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Management normally sets both long-term and short-term objectives. One-or

two-year time frames for achieving specific targets are short-term. Long-term

objectives are less specific than short-term targets and reflect the strategic

dimensions of the firm. Good objectives are measurable, are specific to time

and indicate the priorities for the organization. Main organizational objectives

are:

Market performance objectives: Sales Objectives - Volume or growth

goals are often seen

Customer Traffic Objectives - Get new people into the store through

promotions, sales, special services

Customer Loyalty - Get customers for life. The sale is the beginning of

customer contact not the end

Market Share - sales goals stated in terms of share of market in

comparison to local competitors

Retail Image - Re-identifying the target market and the future growth

potential (e.g. Sears)

Vendor relations - increase sales through better coordination withvendors

Financial performance: objectivesTargeted Returns - Ratio of calculated

net income to sales (ROS) or to total assets (ROA) or to equity (ROE)

Earnings per share - Important consideration for publicly traded retail

firms

Stockholder dividends

Labor productivity - Sales per employee is a common retail

measurement

Space productivity - Sales per square foot of space (or per square foot of

selling space) is another common measurement


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Merchandise productivity - Inventory turnover goals

Personal objectives: Self-Gratification - Owners, managers, andemployees will probably choose working in a retail environment they

enjoy

Status and Respect - Managing a store or being an employee of the

month adds to individuals status and self -respect

Power and authority - Retail employment usually provides for more

responsibility than factory employment

Societal objectives: Social responsibilities are becoming more important

The amount of social responsibility that comes from a true concern for

society (e.g. Ben & Jerrys) versus the amount that is triggered by the

desire for positive publicity and promotion (Drug store health fairs) is

unknown

Societal concerns often are at the expense of financial objectives.

Step 6. Develop a retail miF

:

This is to develop a retail mix for each opportunity in which an investment will

be made and control and evaluate performance

Step 7. Evaluate performance and make adG

ustments:

This step is to evaluate the results of the strategy and implementation

program. If the retailer is meeting or exceeding the objectives, changes arent

needed.


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Ch. 4 - Introduction of the retail unit:

General Introduction

The foundation of shoppers stop was laid

on October 27,1991 by the K. RaheH

a Crop.

group of companies . Being amongst Indias

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 being a single brand shop to becoming a fashion & lifestyle

store for the family. Today, Shoppers Stop is household name, known for its


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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

companys 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 is the only retailer from India to become a member of the

prestigious Intercontinental Group of Departmental Stores (IGDS). The IGDS

consists of 30 experienced retailers from all over the world, which include

established stores like Selfridges(England), Karstadt(Germany), Shanghai

No.1(China), Manor(Switzerland), to name a few.

With an unparalleled assortment of the leading international and national

brands in clothing for men, and kids; accessories, fragrances, cosmetics,

footwear; home furnishing and dcor products, their aim is to provide

shoppers a truly international shopping destination.

Experienced professional management; supported by world-class systems and

practices; and a talented pool of associates with a shared passion for making

every shopper visit a memorable one, has helped Shoppers Stop to grow from

single store in 1991 to the largest chain of Department Stores in India today.

Their unending pursuit to benchmark themselves with the best in the world is

testified by the fact that Shoppers Stop is the only Indian member of the

Intercontinental Group of Departmental Stores, which has the likes of

Selfridges(U.K.), Karstadt(Germany), Marks & Spencer (UK),

Matahari(Indonesia), Myers Grace Bros.(Australia) and Rustans(Philippines)

among its members.


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ACCOMPLISHMENTS OF SHOPPERS STOP

Shoppers Stop Ltd has been awarded:-

y The EmergingMarket Retailer of the Year Award

y World Retail Congress at Barcelona, on April 10,2008

y Shoppers Stop is listed on the BSE

y The only retailer from India to become a member of the prestigious

IntercontinentalGroup of Departmental Stores (IGDS)

y "Most admired Fashion Retail Destination of the Year

y Images Fashion Forum - Jan 2009

y Most Admired Retailer of the Year(Customer Relations)

y Shoppers Stop.IRF2009 - Sep 2009

y "BestVisualMerchandising"

y VMRD Retail Design Award ,July 2009

y "Retailer of the Year - Fashion &Lifestyle"

y

Asia Retail Congress - Feb 2009

VISION

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

Market In The Department Stores Category,


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MISSION

NOTHING BUT THEBEST

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

Adopt best Process For Stakeholders, Without Compromise, Thereby

Matching Global Standards Of Performance.

VALUES

We will not take what is not ours

The obligations to dissent

We will have an environment conducive to openness

We will have an environment for innovation

We will have an environment for development

We will have a willingness to apologize and forgive

We will respect our customers rights

We will create an environment of trust

We will be fair

We will be socially responsible


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Introduction of specific retail unit:

The retail units of shoppers stop in jaipur

are in two places:

1. Triton mall, jhotwara

2. Gaurav Tower, Malviya

nagar

The location which is selected for the

project study is Shopper stop in malviya

nagar at Gaurav tower.

It has two floors, ground floor and the first floor. At the ground floor thedisplayed items are:

Girls apparel

Cosmetics (Lakme products only)

Fragrance

Gift ideas (fashion jewellery, pens, watches etc. )

Leather items (belts, wallets etc.)

And at the first floor they have:

Boys apparel

Girls and boys footwear

Toys

Luggage, travel bags, hand bags, school bags. Laptop bags etc.)


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The cash counter is available on both the floors for the convenience of the

customers so that they dont have to go from one floor to another for payment.

Ch. 6 Departmentalization

Shoppers Stop is known as multi-Brand retail outlet because of their verity of

Products. They offer various products like apparels, Accessories, Toys,

Fragrances, Beauty Products, Travelling products, Home Appliances, etc. They

offer various products like Apparels, Fragrance & Beauty, Home & Travel, Gift

ideas. Under this they have different Categories, Brands and Styles to offer

customers. They have many other showrooms of Shoppers Stop in Delhi and

NCR, so we can say that they have long chain of retail outlets. They also offer

online purchasing which means that they are using new technology to increase

their sales.

Brands Offered:

Shoppers Stop retails products of domestic and

international brands such as Louis Philippe,

Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle,

Magppie, Nike, Reebok, LEGO, and Mattel.

Shoppers Stop retails merchandise under its

own labels, such as STOP, Kashish, LIFE and


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Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for

Austin Reed (London), an international brand, whos mens and womens

outerwear are retailed in India exclusively through the chain.

Different brands offered under each category are given as billow:

APPARELS

Arrow Louis Phillipie

Park Avenue Parx Van Heusen

Zodiac Stop

Caliber Blackberries

Scullers Givo

Orly Lee

Levice Pepe

Killer Lee Cooper

Wrangler Spykar

Life Allen Solly

Provouge Wills

Jewellery MusicEstelle Planet M

Sarvoski Music World

Oyzsterbay

Facet

Carbon

Sparkles

Tanishq FQ

Swaroski

Gili


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Home Dcor Hair Styling

Yamini Habbibs

Four Seasons

Viva Books

WelspunCrossword

Borosil

Corning Ware

Pedrini

Pyren

Watches Sunglasses

Casio Ray Ban

Esprit

Fossil

Titan

ShoesLee Cooper

Red Tape

Picasso

Stop

Life


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Fragrances

Christian Dior Jil Sander

Ysl Calvin Klein

Davidoff Boucheron

Joop Police

Diesel Myrurgia

Lancaster Etienne Aiger

Nicos Xm

J'del Pozo

Ch 7. - Retail location strategies:


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selecting the location for the store is in the hands of retailers because before

selecting the location they have to check many factors like walking traffic,

competitor, parking infrastructure etc. they also have to decide that they want

to buy the site or they will take it on rent. So after deciding all these things

they reach to the final decision. In jaipur after evaluating all the above things

they select two places:

1. Triton mall, jhotwara

2. Gaurav tower, malviya nagar

The retail location which we select for the survey is Shoppers stop at Malviya

nagar. The factors considered for location selection are:

1. it is a centralized location which cover the consumers ofMalviya Nagar,

Jawahar Nagar, mansarover etc. areas so people reside there come to

GT to shop.

2. Huge availability of transport like taxi, buses etc.

3. Facility of free and ample parking increased the number of footfalls in

GT .

4. Clientage for shoppers stop prefer to shop in malls and convince store

rather than an individual store so a store in mall is good than an

individual shop.

Ch. 8 Retail marketing mi


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Ch. 9 Retail customer type

Shoppers Stops customers fall between the age group of 16 years to 35 years,

the majority of them being families and young couples with a monthly

household income above Rs. 20000 and an annual spend of Rs.15000. A large

number of Non - Resident Indians visit the shop for cultural clothes in the

international environment they are used to which means people from abroad

are also interested in shopping in Shoppers stop. Their target customers are

upper middle class and upper class.

The category which I have chosen for the project is JEWELLERY. It offered a

variety of fashionable as well as gold and diamond Jewellery. The brands

offered are TANISHQ, GILI, etc.

In that particular store two types of jewellery are available :-

y Fine jewellery

y Artificial and fashion jewellery

fine jewellery

y Rings

y Pendents

y Earings

y Bracelets


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y Nose pin

In this particular type the brands it offered are ASMI, GILI, TANISHQ.

2.artificial and fashion jewellery

y Sets

y Earings

y Pendents

y Bracelets

y Chains and necklaces

y Bangles

ZAVERI PEARLS, TRIBAL ZONE, AARYA 24KT are the brands offered in this

particular store.

Customer Rewards:

Shoppers Stops customer loyalty program is called The First Citizen. The

program offers its members an opportunity to collect points and avail of

special benefits. Currently, Shoppers Stop has a database of over 2.5 lakh

members who contribute to nearly 65% of the total sales of Shoppers Stop.

They also offer a co-branded credit card with Citibank for their members.


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Ch. 10 - Supply chain management:

Understanding the importance of distribution and logistics in ensuring that

merchandise is available on the shop floors has led Shoppers Stop to

streamline its supply chain. The company has developed process manuals for

each part of the logistics chain. These modules include vendor management,

purchase order management, stock receiving systems, purchase verification

and inventory buildup, fixing of price and store tags, dispatch of stocks to the

retail floor and forwarding of bills for payment. If we talk about various brands

then the answer is that they have a direct tie ups with different companies and

companies deliver all the needed products to their door-step means deliver all

the goods to every shoppers stop showroom. But there are some companies

which do not provide them these services so for those they have their own

carrier.

Shoppers stop has around 400 vendors. Their distribution is very sound and

impressive. Distribution becomes even easier with their new online system.

Their online supply network is based on ERP(Enterprise Resource

Planning).Shoppers Stop was the first few retailers to use scanners and

barcodes and completely computerize its operations. Today it is one of the few

stores in India to have retail ERP (Enterprise resource planning) in place, which

is the best retail planning system in the world. With the help of the ERP, they

are able to open new stores faster and get information about merchandise and

customers online, which reduces the time in taking quick decision. Only right

type of product is brought to the stores. The online system of distribution

helps in warehouse management as well which also decreases its maintenance

cost and warehousing cost. This all increases the availability of products on

right time and right place.


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Merchandising is received once a day from local store & twice a week from

outstation store.

Ch. 11 - Use of IT in the store:

Shoppers Stop was the first few retailers to use scanners and barcodes and

completely computerize its operations. Today it is one of the few stores in

India to have retail ERP (Enterprise resource planning) in place, which is the

best retail planning system in the world. With the help of the ERP, they are

able to open new stores faster and get information about merchandise and

customers online, which reduces the time in taking quick decision.

Shoppers stop has been awarded as best IT user by NASSCOM.

It also got USAT connectivity in 1999.But it suffered losses in 2001 because of

its IT system failure. It focuses on the organizational restructuring program.

Now it had moved its services to leased line services


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Ch. 12 - CRM (customer relationship management)

Strategies:

Retail chain Shoppers Stop Ltd, is eyeing over 50 per cent sales this year from

its customer relationship management (CRM) initiatives. The company has also

lined up an aggressive expansion plan targeting smaller towns and cities in the

country. BS Nagesh, managing director and CEO of Shoppers Stop, told FE that

the company has given a new direction to its CRM initiatives after it acquired a

business intelligence software calledBusiness Solutions about eight months

ago. The new software helps generate intelligent data from Shoppers Stop

customer base of about 2,30,000. The company then collects this data and

touches base with customers via direct mailers informing them of all new

promotions that is currently on and also updates them about the upcoming

events. Shoppers Stop claims that it has taken its CRM initiatives to a new

height and now calls its loyalty programmes Customer Experience

Management. If we find from the data that a customer had bought a pair of

trousers, we tell him about a new range of shirts that we have just brought

into our store, says Mr Nagesh. We are planning to open 35 outlets within

the next three years. We have identified 21 new locations including Kanpur,

Amritsar, Jalandhar, Ahmedabad and Indore, among others to set up these

outlets,Mr Nagesh said.


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.

Ch. 13 - Ma or competitors of Shoppers stop:

In India competitors for Shoppers Stop are mainly foreign players and also

Individual stores. The name of few competitors is given below:

Lifestyle

Globus

Central

Pantaloons

Westside

Ebony

Shoppers stop at malviya nagar major competitors for womens apperals is:

y

Big shoppersy Local shops ofGT bazaar

y Levis

y koutons

SWOT ANALYSIS

Strength

y Variety

y Range

y Different Brands

y Pioneer


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y Loyal customer

y

Low risk

y Good financial position

y Presence across various segments

y Parikrama the festival

Weakness

y Very high prices: They provide international Brands due to which their

prices are very high.

y Less Schemes: They do not offer so much schemes, they offer schemes

only on special occasions like Diwali, Independence Day, etc.

y Less Discounts : They offer less discount in their schemes, they

basically offer 10% to 20% discount

y Competition from standalone stores

y Late entry into value retailing

y Store makeover expenditure

Opportunities

y Awareness about the brands

y Quality

y Youngsters

y Higher disposable income

y Collaborate

y Private levels

y Tier 2 & tier 3 cities

y Enter new consumer goods segments


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Threats

y

Government Policies

y Entrance of New Players

y High attrition

y Lesser consumer spending

y Entry of foreign players

y Unorganized sector

y Independent stores

Ch. Observations and suggestions

1. A complete shoping solution for the one who is brand savvy.

2. They should introduce low rate brands which will attract the middle class

customers as the major competitors of women apparels there is local GT

shops where one can get fashionable cloth at lower price

3. It should use aggressive medium of advertisement to gain more attention

of customers

4. It should introduce products of home and dcor.


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Chapter14Bibliography

Reference Books

o Marketing Management: Philip Kotler

o Advertising and Sales: Promotion Belch and Belch

o Retail Management: Bajaj and Srivastav

JOURNALS AND MAGAZINES

Business World

Business Today

Websites

www.wikipedia.com

www.timesofindia.com

www.shoppers-stop.com

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