sm final ppt

8/4/2019 Sm Final Ppt

1/19

INTRODUCTION TO THE SECTOR

The current consumer durable market is worth

US$ 20 billion accounting for 5 per cent of totalretail market.

The market is growing at the rate of 10-12 per

cent. The organized consumer durables market isvalued at US$ 6 billion which is 20 per cent of

organized retail market.

Tata Croma, Vijay Sales, Godrej Lifespace,Viveks, Girias, Reliance Digital, Videocon's Next,

eZone and Electronics Bazaar are the leading

retailers in this space.


2/19

KEY TRENDS AND DEVELOPMENTS

Consumer electronics riding on the path of economic

recovery Technology drives mobile phones, but price still remains

key in this sector

Young consumers look to keep up with the latest fashions in

electronics Continued shift towards organised retail

Strong economy, rising incomes spill into consumer

electronics retail industry

Young urban consumers are the trend setters

Companies capitalising on untapped rural market

Dual-SIMs and touch screen mobile phones make their

mark

The rise and rise of specialist retailers


3/19

SWOT Analysis

Eliminates links in the purchasing chain (direct

manufacturer-retailer-customer chain).

Technology driven (hence less error prone)Consultative selling

Consumer service.

Variety of products under one roof.

Authentic products with Guarantee (some cases)

Pleasant shopping ambience.

Research driven plus competent manpower.

STRENGTHS


4/19

SWOT Analysis

Reluctance of people (Middle and lower class)

Non-availability of huge land spaces at primeslots (especially in the metros)

High overhead and labor costs.

WEAKNESSES


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SWOT Analysis

Lifestyle changes or status consciousness (NRS

Survey)

Ready availability of real estate in smaller towns. Improved sourcing options.

Focus on more quality, variety and easy

availability under one roof.

Increase in disposable income (NRS Survey) Feel and touch shopping.

No foreign competition.

Increasing media exposure to brand.

OPPORTUNITIES


6/19

SWOT Analysis

Roadside bargains.

Other retail outlets (organized and unorganized)

Personal and homely attention at smaller Shops Availability of credit at other retail (unorganized)

outlets.

Competition from unorganized sector.

Government policies.

THREATS


7/19

INTRODUCTION TO TOP TEN RETAIL COMPANIES IN

THE SECTOR

1. Tata- Infinity Croma

2. Vijay Sales

3. Godrej Lifespace

4. Viveks- The Unlimited Shop5. Girias

6. Reliance Digital

7. VideoconNext

8. e-Zone and Electronics Bazaar9. Lotus

10. J.P. Electronics


8/19

Top 10 Online Shopping Stores in India

1. eBay India2. The IT Depot

3. Tradus India

4. 20 North

5. Gadgets.in6. Future Bazaar

7. InfiBeam

8. India Plaza

9. Gadget Guru

10. TechShop


9/19

TOP FIVE SERVICE PRODUCTS IN THE SECTOR

1. Extended Warrantee2. Online Shopping

3. After Sales Service

4. Pre-purchase Demonstration & Testing

5. Accidental Services6. Other Extra Customer Benefits and Services Discount

Free gifts or products

Easy loan provided or Equal Monthly Instalments 24x7 hours customer care service

Lucky Draw or Coupon Scratch


10/19

CUSTOMERS EXPECTATIONS FROM THE SECTOR

S. No. Core Expectations Allied-I Allied-II

1 Value For Money Easy EMI Point Redemption Benefits

2 Durability Home Delivery-E&T Remind of New Schemes

3 After Sale Services Good Ambience Consult in

4 Faithfull /

Trustworthy

Demonstration

5 Availability Faster Checkout

6 CRM Pre-Purchase Trial

7 Customer Care 24x7 Extended W&G

8 Free Accessories


11/19

BUSINESS MODEL (DIMENSIONS OF BUSINESS)

BUSINESS MODELBUSINESS PURPOSE

[WHY DOES IT EXIST?]

ACTIVITIES

[WHAT FUNCTIONS ARE

PERFORMED?]

RESOURCES

[WHAT TANGIBLE AND

INTANGIBLE ASSETS AND

RESOURCES ARE REQUIRED?]

GOVERNANCE

[HOW ARE ACTIVITIES AND

RESOURCES MANAGED?]

BUSINESS SERVICES

[HOW TO PERFORM]


12/19

MARKET SEGMENTATIONS IN THE SECTOR

GEOGRAPHICRegion

City Size

City

Density

North, East, West and South

Population wise like below 50,000; below 100,000;below 1million, below 10 million etc

Trier 1, Trier 2 , Trier 3 and etc

Urban, suburban & rural

DEMOGRAPHIC

AgeGender

Family Size

Family life cycle

Individual life cycleIncome

Occupation

Education

Nationality

Below 5, Between 6-16, above 20, over 60 etcMale & Female

Single, Double, 3, 4, 6, 8, 10

Young Single, young married having children and having

no children, older singles, older married having children

and having no children

Child, Student, Young-Working, RetiredBelow 10000, Between 10000-20000, Between 20000-

50000, Above 50000

Professional, Students, Businessman, Retired person etc

Literate & illiterate

Indian, American, French, German


13/19

MARKET SEGMENTATIONS IN THE SECTOR

PSYCHOGRAPHICSocial class

Lifestyle

Personality

Lower class, Middle class, upper middle, premium

class.

Straights, Swingers, Achievers, Strivers, Survivors.

Compulsive, Gregarious, Pleasing, Ambitious,

Average

BEHAVIOUROccasion

Benefits

User Status

Usage/ Volume

Profit

Loyalty

Attitude

Regular Occasion or Special Occasion

Quality, Service, Economy, Convenience, speed

Nonuser, Ex-user, Potential User, First time user,

Regular user

Medium or heavy usage

High or low volumes

None, Medium Strong, Absolute

Enthusiastic, Positive, Indifferent, Negative,

Hostile etc


14/19

USAGE OF 7 PS IN THE SECTOR

PRODUCT

Home AppliancesConsumer

Electronics

Kitchen

AppliancesDigital Products

Air Conditioners

Air Coolers

Washing Machine

Vacuum Cleaner

Water Heaters

Water Coolers

And many more..

Audio System

Speakers

Home Theatre

Televisions

Personal Care Products

Stabilizers

And many more..

Food Processor

Citrus Juicers

Choppers

Juicer

Toaster

Coffee Makers

And many more..

Cameras

MP3 Players

Computers

Digital Photo Frame

Gaming

Mobile Phones

And many more..


15/19


PRICE

1) Value pricing

2) Promotional pricing

a. Low interest financing

b. Psychological discountingc. Special event pricing

3) Differentiated Pricing

a. Time pricing

4) Bundling


16/19


PLACE

Available at almost all the states in the country.

PROMOTION

Below the line promotion Above the line promotion

PEOPLE

Well trained employees Look very nice and respond to the customers query willingly

Empowered individual who can take decision themselves

Encouraged to think out of the box and implement any strategy

which result into favour of retail store


17/19


PROCESS

Order processing

Database management

Service delivery

Queuing system

Standardisation

PHYSICAL EVIDENCE

world class infrastructure ISO-ISI certificate and Copyright

Retail Outlets provides invoice to customers and they dont

cheat them


18/19

FUTURE OF THE SECTOR

Technology

Consumers

Brick and Mortar Retail

e-Marketing Suppliers

Vision

Future Scenario


19/19

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