Shoppers Stop Final

Case Study

CUSTOMER ACQUISITION

&

RETENTIONPrepared & presented by group V

Anay Karkhanis

Arnab Maiti

Madhumita Lata

Sandeep Mankani

Virendra Kumar

Zelda Kolah

Video 1

10th April, 2010

An Introduction

IntroductionVMV

Company Overview

Business Partners

International Affiliations

Journey so Far

Distribution Network

Competition Analysis

Challenges

Strengths & Opportunities

Target Segment

Brand Salience

Marketing Strategies

Marketing Initiatives

Vision

To be a global retailer in India & maintain No. 1 position in Indian Market in the department store category

Mission “Nothing but the best”

ValuesWe will not take what is not oursWe will have an environment conducive to opennessWe will believe in innovationsWe will have an environment conducive to developmentWe will have the willingness to apologize and forgiveWe will respect our customer rightsWe will create an environment of trustWe shall be fairWe will be socially responsible

Introduction

VMVCompany Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand Salience



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

Awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008

Listed on the BSE & NSE

Annual Turnover Rs.508.8 crore

36 stores as of now across 15 cities – new born being Navi Mumbai departmental

COMPANY OVERVIEWIntroduction

VMV

Company OverviewBusiness Partners


Journey so Far



Challenges


Target Segment

Brand Salience



Started of as departmental store and subsequently diversified into specialty businesses represented by a combination of owned and international brands

Crossword Bookstores Lifestyle bookstore encouraging customers ease in browsing through the merchandise of books, music, stationary and toys.

HomeStopPremium home furnishings concept store.

BrioCafé Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its BRIO outlets

Desi CafeDesi Café and their operations have been taken over by Café Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its Desi Café outlets

HyperCityThe product range covers foods and grocery, homeware, home entertainment etc

Business PartnersIntroduction

VMV

Company Overview

Business

PartnersInternational Affiliations

Journey so Far



Challenges


Target Segment

Brand Salience



M.A.C.M.A.C. the professional brand of choice, is the first brand under the Estee lauder Group of Companies portfolio to enter the Indian retail market and Shopper’s Stop Ltd. entered into a non exclusive retail agreement with cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India.

ArceliaArcelia is a new retail concept offering cosmetics, fragrances, fine jewelry, footwear, handbags

MotherCareMotherCare and Shoppers Stop come together to introduce products for infant and toddler care.

Nuance GroupNuance Group the world’s leading airport retailer with Shoppers Stop makes an entry into airport retailing.

HyperCity-Argos

Timezone

Business PartnersIntroduction

VMV

Company Overview

Business

PartnersInternational Affiliations

Journey so Far



Challenges


Target Segment

Brand Salience



International Affiliation - IGDSIntercontinental Group of Departmental Stores (IGDS)Consists of 30 experienced retailers from all over the world, include established stores like Selfridges (England), Karstadt (Germany), etc.

This membership is restricted to one member organization per country/region.

Shoppers Stop is the only Indian retailer to become the member

Introduction

VMV

Company Overview

Business Partners

International AffiliationsJourney so Far



Challenges


Target Segment

Brand Salience



Journey so far….Introduction

VMV

Company Overview

Business Partners


Journey so FarDistribution Network


Challenges


Target Segment

Brand Salience



1991 - 1995 1996 - 2000 2005 onwards2001 - 2005

1991 - First store opened in Andheri for Men’s wear

1992 - Ladies wear introduced

1993 – Children & non-apparel section added

1994 – Loyalty program added

1995 – Entry into Bangalore

1996 – Co-branded credit card with HSBC

1997 – Entry in Hyderabad

1998 – ERP, CRM, SCM, JDE introduced + entry in Jaipur & Delhi

1999 – Chennai + Chembur + acquired Crossword

2000 – Pune + Bandra

2001 – Kandivali Mumbai

2002 – Mulund, Mumbai, Gurgaon , Kolkata

2003 – Malad, Kolkata , bangalore

2004 – Pune, Juhu,bangalore, Ghaziabad

2005 – Lucknow

2005 – Lucknow

2006 – Mothercare F&B outlets Brio ,Desi café, 45% of Timezone

2007 – 50 :50 joint venture with Nuance Group for Airport retailing

2008 – Home retail group of uk ,franchisee and catalogue n internert marketing + Argos

DISTRIBUTION NETWORKIntroduction

VMV

Company Overview

Business Partners


Journey so Far

Distribution NetworkCompetition Analysis

Challenges


Target Segment

Brand Salience




Brand Percentage of respondents

Shoppers Stop 23

Lifestyle 34

Globus 6

Westside 12

Big Bazar 12

Pantaloons 13

Introduction

VMV

Company Overview

Business Partners


Journey so Far


Competition AnalysisChallenges


Target Segment

Brand Salience



Favorite Store


Brand Percentage of respondents

Shoppers Stop 36

Lifestyle 35.3

Globus 4

Westside 7.3

Big Bazar 2

Pantaloons 15.4

Introduction

VMV

Company Overview

Business Partners


Journey so Far


Competition AnalysisChallenges


Target Segment

Brand Salience



Top of mind store

Customer Acquisition & Retention

Challenges faced

Unorganized sectorIn India organized retailing was less than 10% and 8% of people were engaged in organized retailing

Spiraling real estate lease rentals prices due to increase in sales tax

High Employee Attrition rates

Threat of New Entrants

Competitive Rivalry in the Industry

Economic Slowdown

Overcoming the challenges

Attractive incentives for employees to avoid attrition

Targeted the organised retail segment through township planning for nuclear families.

Changed from being a chain of retail stores to emerging as a fashion & lifestyle destination for the growing affluent middle class of India.

ChallengesIntroduction

VMV

Company Overview

Business Partners


Journey so Far



ChallengesStrengths & Opportunities

Target Segment

Brand Salience



Strengths and OpportunitiesStrengthsLoyal Customer Base of approx. 78 lacs First Citizen membersIncreasing Footfalls and Conversion RatesStrong and Well Established Management TeamSystems and Processes

OpportunityGeographical ReachPreferred Partner for Foreign Players Hyper city – An entry into Value Retail

Introduction

VMV

Company Overview

Business Partners


Journey so Far



Challenges

Strengths & OpportunitiesTarget Segment

Brand Salience



India was an emerging market for retail industry vast middle class population and untouched organised sector was key attraction for global giants

Changing lifestyles, growing income and favourable demographic outline

Age Group - 16yrs to 35 yrs age group

Upper & upper middle class

Families and young couple with monthly household expenditure income of Rs. 20,000

Non residents – getting traditional clothes / products in international environment

Target SegmentIntroduction

VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target

SegmentBrand Salience



Brand SalienceExudes class, comfort, convenience where ever it is located.

Concentrates on the location of the stores but also emphasizes on the ambience and service excellence.

Follows premium pricing strategy that includes selling of quality and branded products at competitive price.

Positioned as a family store delivering a complete shopping experience.

Introduction

VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand

SalienceMarketing Strategies


Marketing StrategiesGuerilla Marketing

Unconventional system of promotion relies on time, energy and imaginationConsumers are targeted in unexpected places to create the marketed idea memorable, generate craze and spread virally Video 2_denim.mp4

Interactive MarketingAllows customers to customize the product as per their needs.Adds an element of entertainment for young customers, which turns shopping into a family affair.

Repositioning – new logo, new mantraChange of identity, upgraded its positioning to a “Bridge to luxury, store”New logo has an international look and a timeless appealNew mantra encourages customers to take a step ahead to upgrade oneself to the next level in life.

Introduction

VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand Salience

Marketing StrategiesMarketing Initiatives

Used Integrated Marketing Communication program that is customer-focused and internally consistent to acquire and retain customers

- Print Advertisements

- Media Advertisements - OOH- Social Media Platform

- Twitter - Facebook

Marketing InitiativesIntroduction

VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand Salience



- MerchandisingMerchandising opportunities like the launched Zoozoo merchandise and film merchandise

- Loyalty program – First Citizen One of the India’s most effective loyalty program.18.11 lac members generating a revenue of 65%

-Gift Voucher

-Various Festive Offers

- Torture the denim – media campaign110% footfall across all stores


VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand Salience



http://www.gifts-to-india.com/Page_details.asp?product_id=VCCSUSS101&page_name=shopperstop_giftvoucher_india

http://corporate.shoppersstop.com/ecom/diwali-offer/watches/watches.html

- Trial rooms

- New dress code for employees- Company anthem- Contest

101 – Day Shopping Bonanza

Trip to the seven wonders of the world “Buy & Fly to the Seven Wonders of the world”.

- Shopping bags

- In store radio

- Think green

- Online shopping

- Discounts

- Packaging

- Free parking


VMV

Company Overview

Business Partners


Journey so Far



Challenges


Target Segment

Brand Salience



THANK YOU

A complete reflection of the entire journey of striving continuously for newer market opportunities, newer ways of customer delight.

Being relevant with time.

Innovator for spreading awareness on the contemporary global issues

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Shoppers Stop Final

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