group 3 shoppers stop1

8/7/2019 Group 3 Shoppers Stop1

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SHOPPERS STOP LTD.

Positioning strategies adopted by the company for its various stores and its impact

on brand identity.

Contents

COMPANY BACKGROUND .................................................................................... 3


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SWOTANALYSIS ..................................................................................................... 4MARKETINGMIX .................................................................................................... 5TARGETGROUP ...................................................................................................... 8POSITIONINGOFTHE STORES .............................................................................. 9ADVERTISING & PROMOTIONS .......................................................................... 13LOYALTYPROGRAMS ......................................................................................... 18IMPACTOFPOSITIONINGON BRAND IDENTITY ............................................ 20BIBLIOGRAPHY ..................................................................................................... 22


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COMPANY BACKGROUND

Shoppers Stop is promoted by theK

Ra

hejaC

orpG

roup, one of leading pl

ayers in re

al

estate development and hotels. Shoppers Stop has progressed from being a single brand

shop to a family orientated fashion and lifestyle store. Shoppers Stop operates under the

Departmental store format, and was one of the pioneers of the large format stores in

India. Shoppers Stop hass created a new business unit to manage its specialty businesses

like Crossword, Mother care, F&B business and MAC.

They benchmark with global retailers, and strive to enhance their service offering in line

with the emerging global trends. They began by operating a chain of department stores

under the name Shoppers Stop in India. Currently they have twenty four (24) such

stores across the country and three (3) stores under the name HomeStop.Over the

years, they have also begun operating a number of speciality stores, namely Crossword,

Mothercare, Brio, Desi Caf, Arcelia, Stop & Go and MAC. They are also experimenting

with other formats of retailing through their various ventures.


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SWOT ANALYSIS


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MARKETING MIX

PRODUCT

1. General Products : Shoppers Stop includes domestic as well as internation retailarticles and products

2. Private Label:Shopper Stop has also launched their own private labels such asSTOP.

3. Others : In addition to the above,Shopper Stop also does promotionalmarketing.e.g.They launched ZooZoo range and also other similar products have

been launched. These also form the part of the Product as SS.

Private Labels of Shopper Stop


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PLACE

1. Shoppers Stop is Indian largest chain of Super Stores and has many stores inwhole of india

2. Shoppers Stop Ltd. Excels in Service quality and the stores ofa high class feelwhich is different from Big Bazaar or similar stores.

PROMOTION

1. The communication strategy of Shoppers Stop has been to reach out to thecustomers in their own style and language

2. SS uses print as well as OOH media to promote the brand.The brand uses brandambassadors like KareenaKapoor to endorse the brand.

3. The private label STOP is promoted in store through logo and proper placementin the store adjoing similar national brands

4. Associates itself with Local festivals and events

PRICING

y SS has a proper mix of both premium and affordable priced products.The brandsare sold at MRPand lower. The main USP is the choice given to the customer

rather than the Price.

Various Pricing Strategies used by Shoppers Stop are as below:

1. Premium Pricing2. Economy Pricing3. Psychological Pricing


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4. Optional Product Pricing5. Promotional Pricing6. Geographical Pricing7. Value Pricing


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TARGET GROUP

Shopper Stop mainly divides its customers on the basis of 2 main variables

1) Geographic and Demographics : Age,Gender,Income on the basisof geography

2) Psychographics(or behavioral)

Shopper Stop is present in many cities across India so it has to modify itselfaccording to

the geography. Geographical segmentation is very important for SS.

SS mainly targets people with high disposable incomes in Tier 1 Cities like

Mumbai,Delhi etc.

Within Mumbai also their stores are in areas like Juhu,Nirmal Lifestyle Mulund.The

malls and places which are considered to be high class,modern and upmarket.

On basis ofPsychographics, the SS targets people who want a choice of good clothing

and products which are branded, high quality and in the upper price range.


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HomeStop

HomeStop is a format which retails hard and soft furnishing and home accessories. Their

offerings through HomeStop ranges from hard furnishing such as home furniture,

modular kitchens, health equipment and recliners, and soft furnishing such as mattresses,

dra peries, carpets and home accessories such as decorative accessories, kitchen

accessories and appliances,. They are currently three (3) HomeStop, one each in Mumbai,

Bangalore and New Delhi.

Brio and Desi Caf (F & B)

Their foray into Food and Beverages (F & B) began with Brio. Brio has been designed

with the intention of providing a warm and friendly place to relax, revive and reflect. It

currently operates twenty (20) Brio stores. They have started an Indian cuisine concept

under the name ofDesi Caf as another concept to add to the food and beverages

offerings. It currently operates three (3) Desi Caf stores in Mumbai, Lucknow and

Rajouri.

Hypercity

They have a 19% stake in Hyper city Retail (India) Limited, which operates the store

named HyperCity. The store, having an area of approximately 124,500 square feet

offers food and grocery, general merchandise and apparel. Currently, there is one

HyperCity store in operation.

Hypercity Retail (India) Limited has also opened three (3) stores called ExpressCity in

Jaipur and one (1) store in Thane, to experiment with smaller versions of the format.

ExpressCity is a retail format which is similar to a convenience store format primarily

retailing food, grocery and household needs


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Their growth strategy is based on increasing the reach and penetration across the country

by opening new stores and through multiple retailing channels and formats, and

furthering Shoppers Stop as an experiential retail brand through unique national and

international products. They also lookat enhancing their merchandise width by adding

new product categories and services, and strengthen their offerings by adding new brands

and private labels to offera better depth in each category.

They also endeavour to enhance their base of loyal customers through the First Citizen

Programme. They believe that as they grow in size and scale and expand the reach

further, their current economies of scale would be further enhanced. They also continue

to focus on at enhancing their operational efficiencies and human capital, which is critical

in any service driven industry such as retail. They are also investing in other formats by

way of joint ventures, licenses and franchisee arrangements. The following are the

initiatives under such arrangements:

M.A.C.

They have opened M.A.C. stores under a Supply and License Agreement with the

cosmetics majorEstee Lauder. Currently it is operating four (4) MAC store in Mumbai,

Bangalore and Delhi.

Arcelia

Arcelia is a new retail concept aiming at the bridge to luxury segment, with a strong

emphasis on experience and indulgence and is primarily caters to discerning women

shoppers. It primarily retails cosmetics, fragrances, fine jewellery, footwear, handbags

etc. They currently have two (2) stores operational inDelhi and Pune.

Mothercare

Underan exclusive franchisee arrangement by virtue ofaDevelopment Agreement with

Mothercare UKLimited, they have opened Mothercare stores, which market a variety of

products for expecting mothers, babies, toddlers and children, the focus being on style,

function and safety. It currently operates eighteen (18) Mothercare stores; out of which

ten (10) are shop in shop and eight (8) are standalone stores.


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Nuance Group

They have forayed into airport retailing through our joint venture with The Nuance

Group AG, Switzerland. They will handle the retail operations in the domestic terminals

while the joint venture company will handle the operations at the duty free zones in

international terminals. The joint venture company, called Nuance Group (India) Private

Limited, has already bagged contracts to operate outlets at the international airports at

Bangalore and Hyderabad.

Timezone

Timezone marks their foray into entertainment retail. They have acquired a 45% stake in

Timezone Entertainment Private Limited which is in the business of providing family

entertainment centres. It currently operates six (6) outlets in Mumbai, Ahmedabad,

Kolkataand Hyderabad.

HyperCity-Argos

They have ventured into new formats of retailing, namely catalogue stores, call and

collect stores, internet retail website and telephone orders through their subsidiary,

Gateway Multichannel Retail (India) Limited under the name of HyperCity-Argos.

Currently operating five (5) stores at Thane.


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ADVERTISING & PROMOTIONS

Advertising strategy is based on creating a bond with the customerand enhancing their

trust in Shoppers Stop.A

dvertisements thus promote the Shoppers Stop brand

and not

the merchandise, store or the property location. They extensively use promotions and

events to further their relationship with the customers. They have a central marketing

team at service office in Mumbai, supported by representatives at their stores.

Advertising

Being in the retailing business, Shoppers Stop has been a pioneer - and that's not just a

juicy compliment. They were the the first in India (since 1991), they have a fruitful IT

setup, and they have constantly expanded their product line, encouraging even

unconventional tie-ups like Om Shanti Om movie clothing line. They have also pioneered

in developing their B2B sourcing technique. Some online interviews revealed that they

intend to rapidly expand to over 50 stores in 2 years, from the current strength of 22 in

eleven cities.

The original logo now functions as the Raheja group's logo for retail stores. I was

surprised to know about their diverse investments. Apart from Crosswords, they own

other speciality store brands including HomeStop, mothercare, Brio and desicafe'.

Old logo New logo


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The Ad Campaign

The current campaign speaks ofa logo change and a untenable 'Start Something New'

tagline. Such rebranding campaigns communicate an underlying reason for the change,

benefits (ifany) to the consumer. This campaign seems to starkly lack that.

Here's one of the Print Ads

The management of Shoppers Stop have got strong business acumen. The advertisement

of Shoppers Stop directly relate to their target audience in terms of style, classy lookand

wardrobes available. The ad here tries to mix the western influence on the wardrobe

collection in terms of style and class, and still tries to correlate with the Indian culture.

Shopper Stop also advertised its product range by being the official wardrobe partner for

various events and parties. Due to uge demand and craze of such fasionable products,


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such schemes work out well for Shoppers Stop. For eg people adored Deepika

Padukones style in Love Aaj Kal and they could purchase two of her signature kurtas

from the movie at Shoppers Stop!!!

Promotions

Shoppers Stop use promotions as an important part of our marketing tool to reinforce the

brand positioning Feel the experience, while you shop. The promotions are targeted at

enhancing the fun in shopping and providing the customer with a unique shopping

experience and not just on offering discounts and bargains. Their belief is to give more

for same and not same for less.

The companies plan their annual promotions calendar and carry out these promotions

simultaneously across all our stores.

Some of our promotions and events include:

y Parikrama: Festival celebrating Indian tradition and culture, which not onlyserves to bring the consumers closer to culture, but also provides a platform to

promote upcoming artisans from remote and rural areas giving them an

opportunity to showcase theirart and craft at Shoppers Stop.

y Fly to Santaland:Customers shopping upto or more than a predetermined valuewoul be eligible to enter a contest and win a holiday to The SantaVillage in

Finland showcasing apparel and accessories for men with offers ranging from

gifts to trips to international destinations and discounts etc. with every buy that

they make. The event serves to bring men into the stores.

y Wardrobe Exchange: A charity promotion under which customers donate their oldgarments and accessories and earn discounts on new purchases at Shoppers' Stop.

The old garments are donated to Concern IndiaFoundation.


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y Rims And Dials : A festival which solely focuses on watches and sunglassesy Do Your Denim : This event is geared towards bringing out the creativity of

customers to design their own denim jeans

Besides these, they organized several other festivals such as:

y Disney Carnival, in 1993, with official Disney characters from Disney Inc(Mickey, Minnie, Donald and Goofy) participating.

y The Tycoon Tie Festival in 1994, in which the largest tie in the world wasdisplayed and featured in the Guinness Book of World Records.

y Festival of Britain, in 1996 in collaboration with the Government ofGreat Britain.y The Buy and Fly to Seven Wonders of the World, in 2001 which provided

customers an opportunity to win a trip to the Seven Wonders.

They also hold sales at the end of each season (twice a year to mark the end of each

season) wherein they offera range of discounts on our merchandise. These not only help

them clear their inventory, but also bring in larger number of customers into the stores.

First Citizen Programme

Started in A pril 1994, the First Citizen programme is the center of loyal customer

management process. We had 971,537 First Citizens as on December 31, 2008. First

citizens accounted forabout 62% of their sales for the year ended March 31, 2008 and

61% of the sales for the nine months ended December 31, 2008. They have three levels in

First Citizen membership namely Classic Moments, Silver Edge and Golden Glow,

depending on the spend in our stores:

First Citizens receive:

Reward points on their spend in our stores, which can be exchanged for merchandise

Special schemes and promotions available only to First Citizens.

Extended or exclusive shopping hours, especially during festivals

Invitations to select events and celebrations

Home delivery ofalterations.


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Comfort Lounges at select stores.

It is a tradition to invite First Citizens to inaugurate new stores.

First Update from Shoppers Stop

First Update is a complimentary bi-monthly magazine sent to Golden Glow First

Citizens. The articles are written keeping in view the lifestyle preference of the customer

covering various topics such as health, shopping, product specific information, , fashion

trends, new arrivals in store, store updates, contests/offers, entertainment and travel.

First Citizen Co-branded credit cardThey have introduced Co-Branded cards as an extension of the First Citizen programme.

They currently offer (subject to fulfillment of conditions) aFirst Citizen Citibank co

branded card to First Citizens. This card provides additional points over the regular

reward points besides other benefits such as free insurance, offeralerts, EMI schemes,

etc. The reward point system allow the member the flexibility to earn reward points by

shopping at any place of their own choice and still have them redeemed at Shoppers

Stop.


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LOYALTY PROGRAMS

To enhance the shopping experience of customers and offer the ultimate shopping

experience, Shoppers Stop started a loyalty program named First citizen. It is this

emotional connect that they have been a ble to create with our customers through their

service offering and special promotions that has helped them convert many of them into

loyal customers.

A person can become aFirst Citizen club member by submitting an application form. The

club provided membership to the frequent customers in three stages- Classic Moments,

SilverEdge and Golden Glow. The customer gets reward points every time he shops and

these points can later be redeemed for

any item in the Shoppers Stop store.

The

First

Citizen Program membership also entitles the customer to exclusive privileges such as

product previews, priority billing and other special benefits. These benefits are

highlighted as under

They were entitled to various offers at selected departmental stores in othercountries.

The card holders can also earn a point if they used their cards even at places otherthan stoppers stop.

Accident insurance up to Rs. 20,00,000 for first citizen golden glow Citibank cardholders and Rs. 10,00,000 for first citizen silver edge Citibank card holders.

They received invitations to exclusive preview sales, discounts and otherpromotional activities.

All stoppers stop outlets across the country featured Citibank financial centres atwhich the first citizen card holders could avail of the various services offered by

Citibank like loan facility for homes and automobiles.

Shoppers stop also launched a co-branded card named First Citizen Citibank Master

Bankin collaboration with Citibank in 2001. The customer of shoppers stop who joined

the First Citizen club would get the First Citizen CitibankMaster Bank. This was the first


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co-branded card in India. Thus, the First Citizen CitibankCredit Card truly meant more

rewards for the loyal customers of Shoppers Stop.

It also had a loyalty program, calledSKIDS for children ofFirst Citizen Club members

who were of the age group 4 to 14. This is a program offering members an opportunity to

avail ofa variety of special benefits, by amassing points on their purchases, and it also

offers them privileged shopping experiences.

Currently, Shoppers Stop has a database of over 4.5 lakh members who contribute to a

large percentage of the total sales of Shoppers Stop. Incidentally, 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 29 experienced retailers from all over

the world, which include esta blished stores like Selfridges (England), Karstadt

(Germany), Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya (Japan), CK

Tang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is

restricted to one member organization per country/region.

The Key benefits ofaLoyalty Program

The underlying principle of loyalty cards is based on structured marketing efforts that

reward, and therefore encourage, loyal buying behaviour. The various studies on loyalty

behaviour ofa consumer towards a particular store and the key benefits he derives from

any loyalty program are mentioned as under

If the customers seek the benefits from loyalty programs then he/she tends tomake more utilization of such programs.

His/her number of visit to the particular store increases considerably. Purchasing decisions of customers under such loyalty programs is confined and

they visit the companys store when the customer wants to purchase certain items

which are sold in the company.

Customers also tend to involve their family members, friends and others in suchprograms so that they can also enjoy the benefits of the programs and ultimately it

increases the customer base of the company which runs such loyalty programs.


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Since all the time customers get one or more benefits from these programs, sothere is inclination in purchasing of products and services from the same

company.

Other than financial benefits customeralso get the privilege of insurance (in somecases) and make purchase of goods from other stores etc.

Sample Value Table

Monthly Expenses Cost (in Rs.) Reward Points

Shopping at Shoppers Stop 3,000 120

Restaurant/Entertainment 9,000

Grocery 3,000

Travel 5,000 170

Total for the Month 20,000 190

Full Year 190 * 12 = 2,280

* Every Rs. 100 that First Citizen Citibank Golden Glow Card members spend at

Shoppers' Stop will get them 5 Rewards Points and every Rs. 100 that First Citizen

Citibank SilverEdge Card members spend at Shoppers' Stop will get them 4 Rewards

Points. Every Rs. 100 that is spent elsewhere will earn them 1 Rewards Point.

IMPACT OF POSITIONING ON BRAND IDENTITY

BRAND IMAGE BRAND IDENTITY BRANDPOSITION

How the brand isnow perceived

How strategists want thebrand to be perceived

The part of the brand identity and

value proposition to be activelycommunicated to a target audience

The postioning used by Shopper Stop has lead to a strong Brand identity formulation and

hence stronger Brand Image.


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The Shopper Stop has made their positioning in sync with their brand identity through

y Focused on Delivering and Measuring Customer Servicey Training Employees to Deliver Customer Satisfactiony Offering Trust in Price and Quality versus Mom and Popy Private Label Contribution to be Limited to 25%y Product Brand Proliferation

This report gives a perspective of Shopper Stop and its various programs with their

positioning, advertising and positioning.

Due to the repost and specifically the above points we conclude that the impact of their

strong positioning and positive communication of the brand identity,the brand image of

SS has come out be positive and strong.


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BIBLIOGRAPHY

1. www.shoppersstop.com2. www.wikipedia.org/wiki/Shoppers'_Stop3. http://www.indiaretailbiz.com4. http://www.indianrealtynews.com5. http://www.retailangle.com

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