Presentation on Retail Management of

Shoppers Stop

Name: Roll NoABHISHEK PGFB0902DEEPSHIKHA PGFB0915GARIMA PGFB0917NEERAJ PGFB0926PROMOD PGFB0956

Retail Overview INDIA

• Traditionally retailing in India can be traced to

– The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the consumers

• Era of government support for rural retail

– Indigenous franchise model of store chains run by Khadi & Village Industries Commission

• Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains

• Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches

Cont…

• The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. – For e.g. Food World, Subhiksha and Nilgiris in food and

FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers

• Emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume

• Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid.

• At year end of 2000 the size of the Indian organized retail industry was estimated at Rs. 13,000 crore

Retail Trend in India

• Retailing in India is witnessing a huge revamping exercise

• Rated 5th most attractive emerging retail market

• Estimated to be US$ 200 billion, of which organized retailing makes up 3 percent or US$ 6.4 billion

• Annual growth of department stores is estimated at 24%

• Ranked 2nd in a Global Retail Development Index of 30 developing countries

Retailing formats in India

• Malls

• Specialty Stores

• Departmental stores

• Multi Brand Stores (MBO)

• Hyper marts / Supermarkets

• Convenient Stores

• Discount Stores

Shoppers Stop: Introduction

• The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja group of companies

• 28 retail outlets across the country and is planning to spread its wings with futuristic expansion plans to meet the challenges of the retail industry

• With a Gross Retail Turnover of Rs. 8996 million, Shopper's Stop has become the highest benchmark for the Indian Retail Industry.

• Has progressed from a single brand shop to a Fashion & Lifestyle store for the families.

Cont….

• It is the country's largest chain of Department Stores.

• International and domestic brands across categories such as apparel, accessories, cosmetics, home & kitchenware as also its own exclusive brands

• Home Stop is the first-of-its-kind premium home concept store at Bengaluru, Mumbai and New Delhi, offering a wide range of products

Event of Shoppers Stop

• Shoppers Stop Ltd has been awarded

– “The Emerging Market Retailer of the Year Award“

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

– Shoppers Stop is listed on the BSE

– The only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS)

Cont…

– "Most admired Fashion Retail Destination of the Year“

• Images Fashion Forum - Jan 2009

– Most Admired Retailer of the Year (Customer Relations) – Shoppers Stop.

• IRF 2009 - Sep 2009

– "Best Visual Merchandising"

• VMRD Retail Design Award – July 2009

– "Retailer of the Year - Fashion & Lifestyle"

• Asia Retail Congress - Feb 2009

Shoppers Stop:Corporate Profile

• Vision:

– To be a global retailer in India & maintain no.1 position in Indian market in Department Store Category

• Mission:

– “Nothing but the best”

– To strive & achieve nothing but the best in terms of processes, practices & deliverables

Positioning

EARLIER

Re-Positioning

NOW

Cont…

On April 24, 2008, one of India's oldest retail chains Shopper's Stop Ltd unveiled its new logo as a part of its re-branding strategy.

• In a bid to reposition itself as a 'bridge to luxury' store as opposed to its earlier image of a premium retailer

• Commenting on the change, B.S. Nagesh, Customer Care Associate and Managing Director, Shopper's Stop, said, "Change is essential. Our consumers are changing, their preferences are constantly evolving. They are getting younger. Shopper's Stop came up with several initiatives - it planned to increase per store area from around 40,000-45,000 sq. feet to 75,000-85,000 sq. feet.

S.W.O.T Analysis

• STRENGTH:– Oldest– Financial conditions– loyal customer base of over 782000* First citizen members *

2009 data

• WEEKNESS:– Less number of outlets

• OPPORTUNITY:– Changing taste of young generation– Preferred partners for foreign player

• THREAT:– Competitors like Globus, Lifestyle, Westside.

Trade area analysis

• Primary – Indirapuram, Ghaziabad,

sector 62 - 63, Noida

• Secondary - Sector-58 and 55,

Noida, Vasundhara,

Vaishali, Abhay Khand

• Tertiary – Sector 22, Anand Vihar, Delhi

Target Market and Positioning

• Most of the customer fall between the age group of 16 to 40, majority of them being families and young couples with a monthly household income above Rs 25,000.

• Shopper Stop positions itself as a Global premium Retailer outlet.

• Shoppers’ Stop is positioned as a family store delivering a complete shopping experience.

Product Mix

• 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.

Shoppers Stop: Product Mix

Shoppers Stop: Product Men Apparel

• Indian Terrain

• Allen Solley

• Dockers

• Stop

• Zodiac

• Park Avenue

• Ven Heusen

• Mario Zegoti

• Arrow

•Austin Reed (London)•Louis Philippe• Giovani• Vettorio Fratini•Wills Lifestyle

Shoppers Stop: Product Women wear

• Stop

• Mix n Match

• Haute Curry

• Kashish

• Sanaa

• Biba

• Mufti

• United color of Benetton

• Fem – French Collection

Shoppers Stop: Product

• Cosmetics / Skincare– CHAMBOR– LOREAL– Lakme– Revlon

• Fragrance– ADIDAS– ARAMIS– BVLGARI– CALVIN KLEIN– DAVIDOFF– DKNY

– FERRAGAMO– NAUTICA– RALPH LAUREN,– VERSACE

Shoppers Stop: ProductChildren wear

• Gini N Joni

• Barbie

• Zapp

• Ruff

• Lilliput

• Kanz

Shoppers Stop: Price

• 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

Cont….

• 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, make-up stuff. Their price ranges from Rs 200 to Rs 2000.

BRAND AMBASSDOR

Shoppers Stop: Promotion

• Brand Ambassador “Shahrukh Khan”

• First Citizen Card

• Surprise Sale

• Valentine Sale

• Introduction of events focusing on one category of merchandise at a time like Watch Out for Watches.

Cont…

• Change in Logo from the original oval shape to the new rectangular shape.

• Introduction of the new Shoppers Stop mnemonic – SS.

• Sales promotion is also done with the help of gift vouchers and various festive offers or by giving discounts to the customers

• Feature area (inside & outside mall) are used by displaying banners.

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Shoppers Stop: Place

• It is mostly located in posh locality in the center of the city. Further the easy availability of transport facilitates makes the location really accessible for shopping. Shoppers Stop in Shipra mall is located in the centre of the city and it is surrounded by residential area Shipra sun city, industrial area and it is also convenient to the customers of both Noida and Ghaziabad city.

• In Shipra mall Shoppers Stop is on the first floor at the entry gate, when a customer enters in the mall they will see Shoppers Stop in front of them, so we can say that store occupies that location which is easy visible to the customers and customers can easily go there

Shoppers Stop: 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

Shoppers Stop: Productivity and Quality

• Improving productivity is a requisite in cost management

• Quality as defined by the customer, is essential for a service to differentiate itself from other providers

• SS store has all international brands and all well-to-do, high quality Indian brands

• It is possible for SS to provide best of the quality

Shoppers Stop: 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

Shoppers Stop: Physical Evidence

• Men’s as well as women Apparel stacked in a unique style.

– One type and many sizes together in ascending order

S

M

L

XL

XXL

XS

Shoppers Stop: Physical Evidence

Shoppers Stop: Physical Evidence

Layout

Shoppers Stop: Process

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

• Enables immediate replenishment of stocks at any given outlet.

• ERP package - imported from the US-based company J. D. Armstrong, and is called the JDA package.– ERP package handles– Merchandise management– Warehouse management– Automated replenishment– Sales management

Store design - Exterior & Interior

• Shoppers Stop follows a theme based interior, like a corner is assigned to every brand and that brand put up its product as per its liking.

• The posters and ads for discounts and offers for them are put up there only Exteriors of Shoppers Stop stores are very attractive & eye catchy.

• They put up fresh fashion collections on the dummies on the entrance.

• The exterior appearance of a store silently announces what customers can expect inside.

• Good exterior visual merchandising attracts attention, creates interest and invites the customer into the business

Cont..

• Exterior Store Design

• Shopper’s stop wall are of glasses which covered with posters which displays the various brand available in the store

• At night the building is

brightly lit up. • The focus is largely on the

name plate at the top. There is always someone to greet the customers entering the shop.

• Interior Store design

• Flooring and Ceiling

• Empty space of wall is used by displaying posters on them.

• Graphics and Sign ages

• Lighting

• Music .

• Odor type and density

• Store security

Visual Merchandising

• One can come across campaign graphics in the store with merchandise places near them.

• Mannequins are displayed with accessories to generate impulse purchases.

• Spot lights are also focused on the visual merchandise so as to gain the attention of the customers.

• No rack is kept empty as it may create a negative impression in the minds of the customers

Cont…

• Shopper Stop use theatrical effects to sell its merchandise, this year, the theme is embroidery from the Mughal and Rajput era - clothes and accessories such as bags and shoes across Shoppers' Stop's private labels Kashish, Stop and Haute Curry will be adorned with forms of embroidery such as zardosi, chikankari, kantha, gota, kinari, aari work and kashidakari.

• Merchandise is also arranged according to the season if the season is winter than they will adopt dark to light strategy and if season is summer than they follow light to dark strategy

Space Allocation and Utilization

• Furniture and fixtures-

Goods are effectively displayed on a variety of fixtures such as , tables, Detachable fixtures with smooth edges, grid wall, clothing store fixture, hangers, display cases, jewelry displays, gondola shelves, are there in the store, and manufacturer point- of -purchase display. Display area, Walk Ways and Entries:- .

Shoppers Stop stores have very attractive display areas, in which they put the dummies, accessories & all. They have a broad walkway & doorways. All the merchandise is placed at both 360 degree and 180 degrees.

Cont…

Merchandise

• Shoppers Stop have applied the concept of category management in its day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers.

• Category managers look at sales and margins of each brand in a category.

• Most of the space is used in organizing the products in the store but while organizing the products the convenience of the customers are kept into the mind.

Cont…..

• Empty space is basically divided into Aisles, service areas, and other non-selling areas in order to prevent shrinkages.

• Appropriate aisle space is provided in such a way so the product can be taken out conveniently and the maximum floor space will be use to get maximum per square profitability.

Placement of Merchandize

• The space to merchandise is assigned in such a way so that the maximum impulse can be created in the outside customer.

• Women’s apparels and accessories are placed at the initial of the store because it has been proven that impulse can be very easily created among women.

• Women westerns are placed after the ethnic apparels then men’s wear and accessories comes.

• One thing which is very interesting about the merchandising of brands is that the brand which gives better money to shopper’s stop is got better place in the store.

Packaging

• The Products purchased by the Customers are packed in black colored Recyclable Plastic Bags.

• The previous packets of Shoppers Stop had the previous logo while the new packets which are being widely distributed have the company symbol on it. (SS).

Store Atmospherics:

• 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.

LOYALTY PROGRAM 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