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MBA3- AICTE MEGHA MALVIYA

SHOPPERS

STOP

INDIVIDUAL RETAIL VISIT

REPORT

1

Executive summary 2

Brief introduction 3

Socio economic importance of shoppers stop

in kalayan

5

Identifying the retail type and its products 7

Strategic drivers of the industry 13

Marketing mix of the brand shoppers stop 17

Technology deployed by shoppers stop 22

TABLE OF CONTENTS

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Executive summary

“To understand the man you must first walk

into his moccasin”

In a same way whether you want to be a retailer or a customer you

need to know both aspect of a retail store.

Stores are the market leader in the field of Retailing. These stores

have been very successful in its strategy .Organized stores have made

sure that it makes its consumers move up the product chain by

introducing same products to the new customers. Mostly respondents

prefer Branded Product, of which some buy products due to their

brand name, fewer of them makes purchase once in a month.

Retailers era is something which has huge impact on the generation y

and have also targeted the generation x effectively.

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Shoppers Stop is one of the leading retail stores in India. It began by operating a chain of department stores under the name “Shoppers’ Stop” in India and has 67 stores across the country. Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai 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.

Shoppers stop in metro mall (kalyan) Shoppers Stop brings to Kalyan an unprecedented bridge-to-luxury shopping experience spread over 38,000 sq. ft. across two distinct levels -Being a house of premium national and international brands, the store is a one-stop shop for the most chic and desirable brands

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such as United Colors of Benetton, Being Human, AND, Austin Reed, US Polo, Celio among others. In addition to these, Shoppers Stop offers a wide variety of merchandise across categories under its exclusive brands Stop, Kashish, Life, Haute Curry, Elliza Donatein, inSense’, iJeanswear, Mario Zegnoti, and Vettorio Fratini.

Look at the new store of shoppers stop

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Socio economic importance of

shoppers stop in kalyan Shoppers stop is one of the largest departmental chains in India and

has newly come up with an outlet at kalyan. The most important

aspect is, it is bought there due to emergence of demand of the brand.

As earlier there were no outlet in that particular area, the traffic of

customers had to travel to nearby stations, which was time consuming

and hectic for customers. Thus the advantages of shoppers stop at

kalyan are as follows:

Customers don’t have to travel all the way from kalyan to thane

or nearby stations.

Increases the traffic as people near to kalyan station will also

visit shoppers stop

Does not have any other niche market targeting brand.

Customers save energy as well as maintains there frugality.

Greater quality products than the other brands available there.

As shoppers stop is located in metro mall, it is the largest mall of

that area so moreover it will attract traffic.

Easy parking of vehicles in the mall

As every coin has two sides, similarly there are a few but

disadvantages of shoppers stop:

Availability of pantaloons in the same mall

Reduction in traffic from the nearby stations of kalyan

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Attracting initial customers may be difficult

Requires huge cost for promotions and advertisements

Mall tax has to be paid

Customers will not compromise with the quality as there are

other brands available, they may switch any time

Socio –economic impact of shoppers stop has led to various changes

as they have come up with the new concept in the retail industry by

setting up trial rooms with day and night light options so that

consumers could see how garments would look during the day and in

the night.

Customer Profile:

Shoppers’ Stop’s core customers represent a strong SEC A skew. They

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 ethnic clothes in

the international environment they are accustomed to.

Customer satisfaction index is calculated based on the following

parameters: There was a significant increase in Merchandising Range

and Quality customer satisfaction from year 2012 Store Environment

to year 2014, although there is a small Staff decrease in customer

satisfaction in Transaction Efficiency year 2013 from year 2012,

Loyalty Program, This may be due to increased choices Schemes

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offered to the customers by other Promotions stores and hence

increasing Customer experience in Shoppers Stop with the

expectations of the customer competitor.

Retail sector growth-

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Retail type of Shoppers Stop and its Products & or Service category. Shoppers stop is a 3rd largest multi-brand chain of departmental store.

A department store is a retail establishment with a building open to the public

which offers a wide range of consumer goods such as clothing, housewares,

furniture and appliances.

It typically offers a choice of multiple merchandise lines, at variable price points,

in different product categories known as "departments," hence the name.

Department stores usually sell products including:

Clothing furniture home

appliances

toys cosmetics

gardening toiletries sporting

goods

do it yourself paint and

hardware

Additionally select other lines of products such as food, books, jewelry,

electronics, stationery, photographic equipment and baby and pet needs.

Certain department stores are further classified as discount stores. Big-box

stores and hypermarkets have become a modern equivalent to historical

department stores. Department stores have a supermarket-type central

customer checkout area near the front of the store, or alternatively, sales

counters within each department. Department stores are usually part of a retail

chain of many stores situated around a country or several countries. Some may

be independent retailers, existing entirely independent or as licensed dealers

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Essential of a departmental store

Situated in prime location

Offers wide variety of goods

Provides quality goods at competitive price

Single management

Facilitates shopping under one roof

Fulfills the needs of most families- affluent and upper/middle class

Operates by appointing experts

Sells goods strictly on cash basis

Incurs high operational cost

Products and Brands at

shoppers stop

Menswear

Women’s wear

Kids wear

Home & travel

Fragrances/cosmetics/accessorie

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International

brands

Jack & jones, French connection, CK jeans, GAS, Espirit, Tommy Hilfiger, mustang & mango in apparel segment.

Loccitane, Lancome, MAC, Clinique & Estee lauder in cosmetics.

CK, Armani & Gucci in sunglasses

Burberry, Nina, Ricci, Diesel & Boss in watches

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PRIVATE LABELS

•Stop- Men’s formal/casual/ethnic/women’s western/ethnic, kid’s

casual/ethnic

•Kashish – Men’s & women’s ethnic

•Life- Men’s & women’s Fashion

•Vettorio Fratini- Premium formal& semi-formal men’s wear

•Haute curry- fusion wears for women

•Elliza Donatein- corporate womenswear

•Ijeans wear- Men’s denim

Brand portfolio

Apparels Jewelry Music Fragrance Home decor Sunglasses

Arrow Facet Planet m Christian dior yamini Ray-ban

Louis phillipe Carbon Music world Ysl Four seasons Watches

Park avenue

parx

Sparkles David off Viva Cassio

Van heusen Tanishq Shoes Joop Welspun Espirit

Zodiac Swaroski Lee cooper Diesel Borosil Titan

Stop Gilli Red tape Lancaster Corning ware Fossil

Caliber Oyzsterbay Piccasso Nicos Pedrini Books

Blackberry Estelle Stop Jil sander Pyren Crossword

Scullers Life Calvein klain Hairstyling

givo Apparel Boucheron Habbibs

orly Wrangler Police

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lee Spyker J’del pozo

levis Life Myrurgia

pepe Allen solly Etienne aiger

killer Provouge Xm

Lee cooper Wills

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Key strategic drivers of the

industry Customer Relationship Management

With the increase in retail industry, the companies should have the ability to

have constant accurate access of every individual customer to enable

predictable buying behavior, even before you sell your product it is very

important to build relationship, or we can say in today’s world relationship with

customer is more important than product or service thus customer satisfaction

will cement competitive capability.

Strategic talent management

How can retailers stay on the path to high performance as they battle the two-

headed beast of economic decline and a shortage of top talent? In the midst of a

recession and a decline in consumer wealth and spending, retailers are focused

on the short term: getting customers into stores and online to drive sales while

looking to cut costs. Companies need a holistic approach—a way to translate

business strategy into the specific talent programs needed to optimize execution

of that strategy.

Service factor

Given the time and effort that is invested by retailers to attract customers into

their stores, it is amazing how so many retailers pay little attention to customer

service. It is common to visit a retail store and see half-filled shopping carts

abandoned by shoppers who were tired of waiting for their turn at the check-

out, or to see shoppers looking for a particular item they wanted to purchase

but could not find a service provider to assist them in locating the item or

provide the information they need to ensure it is right item. But those retailers

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who do provide great customer service distinguish themselves from their

competitors, and therefore add significant value to their offering.

Being Innovative

Retailers are more and more experimenting with their store formats.

Additionally, they are effectively designing and managing the various strategic

levels to enhance the overall customer shopping experience. The problem with

being known as innovative retailer is that it can only remain innovative as long

as customer feels the innovation is fresh and exciting. Retail stores were once

thought of as being an innovative retail format. Thus, innovative retailers must

continuously implement new ideas or else their customer will began to view

them as “old hat”

Price sensitivity

Estimating the effect of price changes on demand is an essential task for

retailers. Consumer behavior with respect to price should be checked taking into

considerations threshold asymmetry, incorporates consumer heterogeneity and

weekly aggregated brand-level data. Consumers are price sensitive if they don’t

find the product worth they may switch any time to other brands

Navigating the future landscape for retail and town centers

Through initiatives to enable localities to have the tools and knowledge they

need to develop and deliver their strategies and activities. Retailers must join

key players across Government and industry to explore and promote the

opportunities and benefits for retail and town centers from advances in

multichannel retail and the digital world.

Festive flavor

India is a country of festival, where people respect their festivals and prefer

wearing new clothes and spend moreover to decorate their places. Thus it is

greatest growth factor for fashion retail specially and the ones involved in home

décor items to.

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Advertising & promotions

One of the best way to attract consumers is to make such ads that

could enlighten the customers, advertising and promotions are among

the key drivers if consumer likes your product they will definitely come

to the purchase point and shoppers stop have a great hold on ads,

promotions- hoardings etc.

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Variety of products

Consumers always look for variety of products. They will never go

for the same type of product every time they do shopping, and

shoppers stop is one among them who have huge variety in their

products and brands as well.

Rise in income

In today’s scenario as the families are growing the incomes are also

growing. Indians are big time shoppers; they love spending money

on apparels, footwear’s etc. Indian women’s specially now prefer to

buy branded clothes for their children and spend money on it.

Thus in order to be market leader retailers

Need to know their strength, weakness opportunities and

threats

They need to know their competitors strategy

They should also have delighting products in varieties and

should also have large number of brands

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Marketing Mix strategy applied by shoppers stop to attain competitive advantage

Identified the need for and created a suite of brands that reflect styles, international class and fashion. Private brands have been introduced and developed after a careful analysis of customer requirement such as stop, kashish, life, vettorio fratini, haute curry, elliza donatein, ijeans wear.

Product

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Shoppers stop follows premium pricing strategy that includes selling of high quality products at high price.

Pricing

Promotion The communication strategy of Shopper’s Stop has been to reach out to the customers in their own style and language. For eg. First shoppers stop in Lucknow was named “tehzeeb”

SS uses print as well as OOH media to promote the brand. The brand uses brand ambassadors like Kareena Kapoor, Soha ali khan to endorse the brand.

The private label STOP is promoted in store through logo and proper placement in

the store adjoin similar national brands Associates itself with Local festivals and events Organizes major promotional events such as ‘Fly to santa land’, ‘ Gear up for the school’ etc.

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Andheri kalyan bandra chembur juhu mulund Ghatkoper Thane Navi

mumbai

Shivaji nagar

Korega-on

Nagar road

Pacific mall

latur aurangabad Alpha.g ahmadabad

surat Alembic road- vadodar

Brand ambassadors

Place Shoppers stop is largest chain of Indian departmental stores with 67 stores in Indian states.

Exudes class comfort, convince wherever it is located. It not only concentrates on the location but also the ambience

and service excellence.

And at many more places throughout India with 67 total outlets

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Competitive Advantage

Stores ambience & layout. Variety of international products and personal brands. Add on facilities and service. Preference to loyal customers. Shopping experience & ease.

Shoppers Stop’s has a loyalty program called First Citizen. They also offer a co-branded credit card with Citibank called the First Citizen Citibank Titanium Credit Card for their members.

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Modern technology deployed by shoppers stop in its operations

S-A-S It provided the shoppers stop with a business analytics framework for reporting and analytics using SAS Enterprise BI Server and SAS Enterprise Miner. "The scalability of the solution lets them analyze over three years of customer data, in multiple formats, which is extremely valuable in understanding churn and share-of-wallet. “This is a first-of-a-kind analytical solution for the retail industry in India.

Shopper's Stop has one of the largest installed bases of AutoCAD software, because the chain uses CAD technologies to craft, draw and plan its multiple stores as they roll them out.

The enterprise is also at an early stage of deploying a solution to optimization store-to-floor space ratio, called Intactix, it's going to help the store managers visualize how to stock shelves using optimal sales and margin expectations.

They rolled out replenishment applications for hypermarkets called E3, which helps HyperCITY analyze inventory trends, helping the enterprise refill its shelves faster at lower costs, forecast better, and address the critical element of product availability.

iScan - this handheld barcode scanning device lets customers scan their merchandize as they take them off shelves. It is also put to multiple use by bundling it with different apps. The same hardware doubles as stock-taking solution for inventory or a receiving solution at warehouses.

Deployed JDA-MMS and JDA-WinDSS, core merchandizing, store PoS application and ERP in 1998, m

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Electronic point of purchase system- It is one of the most unique systems which are time savvy. Through this they just scan the item easily.

Time-to-intelligence has been significantly reduced in areas such as customer segmentation, inventory and vendor management, market basket analysis, store and sales performance analysis and assortment planning.

Focused on leveraging investment and upgrading and revamping existing technology.

Deploying warehouse automation application along with multipurpose handheld devices to enhance efficiency in supply chain.

Deployed Microsoft for reliable communication platform.

Setting up a disaster recovery program or plan for recovery systems.