SHOPPERS STOPCase Study – Marketing ManagementGroup VII

FACTS The case talks about questions that Mr. Govind

Shrikhande, Chief Executive Officer, Shoppers Stop faces in taking variety of new decisions.

Shoppers Stop is one of the large format department stores in terms of retail space.

The CEO while reviewing the brand navigating study saw disengagement with younger customers and saw huge potential in attracting a lot of youth and so wanted to connect them.

At the same time CEO wanted to maintain its business focus (i.e building loyal customer base), and brand identity & existing customers across all age groups.

FACTS India being a developing economy was undergoing a

sudden change in retail industry unlike other nations. Organized retail sales was negligible but were

expected to grow to 10% by 2010 and 20% by 2020

Factors affecting Indian retail were higher standard of living, disposable income, demographics changes, credit facilities, government aid.

Indian Population was forecasted to stay you for atleast two decades thus enjoying demographic dividend.

COMPANY BACKGROUND Company had a strategy to become the No 1 Global

retailer in department stores in India.

Customer Centric management campaign (Festivals & Ethnic wear)

Highly paid front end sales staff (Educated Graduates)

Didn’t pile up goods and purchased it on consignment basis & as and when needed. JIT inventory mechanism to keep low inventory cost.

Company had to change the stock of youth adult apparels as young customers adopted latest buying trends and included mostly Colors, Patterns and Accessories.

ADVANTAGES SS HOLD DUE TO GOVERNMENTAL REGULATIONS & IN COUNTRY FACTORS

India in 2012 opened up the retail sector to supermarket chains – in “multi-brand” retail – allowing foreign direct investment (FDI) of up to 51%.

Now Government allows 100 % foreign direct investment (FDI) under the automatic route in the textile sector, subject to all applicable regulations and laws, which effectively backs the Make in India programme for the textile and garment industry.

Since in wait–and–watch (no immediate opportunities in market) category business is largely regulated by government influence, hence making market entry difficult for a foreign company.

ADVANTAGES SS HOLD DUE TO GOVERNMENTAL REGULATIONS & IN COUNTRY FACTORS

In Country Factors: The increasing migration of people from rural to urban areas have caused rise in income levels that have increased the buying capacity of consumers.

Credit Facility: Due to availability of easy credit, it has become convenient to purchase products.

Demographic Dividend: It would bring additional advantages such as- rise in relative breadwinners, increasing in women work force, declining dependency ratio.

It is expected by 2020 average Indian age will be 29yrs.

SS TARGETED CUSTOMERS(TIME – VALUE – PREMIUM CONSCIOUS)

SS should majorly target “Value-conscious” consumers as well as “Time/Premium Conscious”

Promotional program should be made to create a strong customer base of the target youth crowd.

This segment mainly includes single males for which branded apparels was growing with 30% per annum.

The drawback is consumers may browse around and may not buy.

SS TARGETED CUSTOMERS(TIME – VALUE – PREMIUM

CONSCIOUS) Premium & Time Conscious cannot be

ignored.

Premium Conscious: Consist of 26% of total shoppers which are mainly dominated by “First Citizen” members, these are loyal customers and the visit to stores along with their family and friends.

Time Conscious: Consist of 28% of total shoppers which are looking for good price and hence compare before purchase, if satisfied they will definitely purchase.

SS DEVELOPING ADS & PROMO TO ATTRACT WITHOUT ALIENATING EXISTING CUSTOMERS Create awareness amongst younger people by

using the means of digital media about the latest fashion trends.

Targeting hangout spots, places like colleges, institutes, fares and cafes.

Early Bird Discount: Putting discount offers of 3-5% on new and latest arrivals for the first month to attract youth.

Celebrities & Brand Ambassadors can help for promotion.

SS APPROACH CUSTOMER-CENTRIC

We feel that they should continue with customer-centric approach, because that has generated more revenues over time and it has also helped in creating loyal customers.

It will help them to focus on the early aged youth segment who believe in “Give me choice & I will scrutinize & decide.”

It will attract new customers also keeping existing customers base intact.

Product oriented marketing does have risk of bombarding, if new products are not well understood by people. Hence SS will have to hire professional agencies (Market Research) to advice on specific market requirements, tastes, preferences and other trends that they follow or intend to have.

ALTERNATIVE MEDIA & ITS ADVANTAGES

Best - Internet Marketing & Digital Media - Social Websites, Apps, online selling owned website or established e-commerce seller.

Sales Promotion with Corporate tie up for pre-sale announcements & providing discount coupons for movies and restaurants.

Print Media - Newspapers.

Radio Channels - Local Radio Broadcast of Sales/

Events & Promotions – Youth dominated channels on TV like MTV & Channel V.

THANK YOUSr No

Group Members Names

Roll No.

1 Vinay Jain 1052 Tushar Bhadalkar 1063 Nishad Vichare 1074 Sarthak Gupta 1085 Nikita Luhadiya 1096 Aditya Jagtap 1107 Ketaki Kawale 111