A PROJECT STUDY REPORT

ON TRAINING UNDERTAKEN AT
SHOPPER’S STOP

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENT

SUBMITTED TO:- SUBMITTED BY:-

MS. GEETI MAM

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 ACKNOWLEDGEMENT

The report what I have presented is not the made outcome of my labor alone.
There are dozens of hands buttressed me all through the programme it doesn’t
go without thanking all of those who constantly keep me on the move.

I would like to give heartily thanks to International School of Informatics &

Management (IIIM) and the Faculty, who have given us an opportunity to learn
something practical apart from books.

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Table of content
Chapter 1. Present Indian retail scenario
 Current scenario
 Formats of retailing in India
 Malls in India
 Challenges of Retailing in India

Chapter 2. Scope of Indian retail Market

Chapter 3. Strategic Planning in retailing
Chapter 4. Introduction of retail unit
 General Introduction
 Mission
 Vision
 Values
 Specific Introduction

Chapter 5. Departmentalization of shopper’s stop

Chapter 6. Retail location strategy
Chapter 7. Retail marketing mix
 Pricing mix
 Promotion mix
 Product mix

Chapter 8. Retail customer type

Chapter 9. Supply chain management

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Chapter 10. Use of IT in the store

Chapter 11. Customer relationship management strategy

Chapter 12. Major competitors

Chapter 13. Observation and suggestion

Chapter 14. Biblography

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Ch. 1- Present Indian retail scenario

Retail is clearly the sector that is poised to show the highest growth in the next
five years. The sector is set for a revolution, as both the present players and
new entrants are gearing up to explore the market. This sector contributes
10% of India's GDP and the current growth rate is 8.5%. The present size of the
organized retailing sector is approximately 3% and is expected to grow to 25-
30% by the year 2010. There are about 300 new malls, 1500 supermarkets and
325 departmental stores currently under construction. Many players are
coming up with huge investments, due to which the present 12 million mom-
and-pop shops and kirana stores fear losing their business. Most predictions
say that the sector might reach to US$ 400-600 billion by the year 2010. Global
retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others
are ready to enter the retail markets. The rising demand of branded products
and increase in purchasing power have lured these companies to enter the
market.

Modern retail development in India is focused on the following cities:

West

 Mumbai
 Pune
 Ahmedabad

North

 Delhi and the National Capital Region

South

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  Chennai
 Banglore
 Hyderabad

East

 Kolkata

Leading Indian retailer Bata India Ltd, Big Bazaar, Crossword, Ebony Retail
Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music
World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop,
Subhiksha, Titan Industries, Trent and the new entrants penetrating the
market soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour,
Tesco, Boots Group, etc.

 Current scenario

A glimpse of the International Retail

 One of the world's largest industries exceeding US$ 9 trillion

 47 global fortune companies & 25 of Asia's top 200 companies are
retailers
 Dominated by developed countries
 US, EU & Japan constitute 80% of world retail sales.
 Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

USA - 85%
Taiwan - 81%
Malaysia - 55%
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 Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%

Key trends
The existing players like Big Bazaar, Shoppers' Stop, Piramyd are
expanding to smaller towns and cities. Many other business houses are
planning to enter the retail sector either on their own or through
partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are
going to enter the market soon. Even rural areas will provide a huge
opportunity to be explored.

Estimates and Predictions

 The industry is estimated to be more than US$ 400 billion by a study of

McKinsey.
 The Economist Intelligence Unit (EIU) estimates the retail market in India
to increase to US$608.9 billion in 2009 from US$394 billion in2005.
 A KPMG report says that the organized retail would grow at a higher rate
than GDP in the next five years.
 The retail sector would generate employment for more than 2.5 million
people by the year 2010, says an analysis by Ma Foi Management
Consultants Ltd.

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Benefits of FDI in Retail Sector

 Higher competition would lead to higher quality in products and

services.
 Better lifestyle as better products would be introduced.
 Exports would increase due to greater sourcing of major players.
 Investment in whole supply chain would increase.
 Technology would be upgraded in terms of logistics, production, and
distribution channels.
 The markets of the sector would flourish and develop.
 Employment would increase and skills & manpower will develop.
 A strong retailing sector would promote tourism.
 Economies of scale would help lower consumer prices and increase the
purchasing power of the consumer.
 In the long term it will be beneficial in the up-gradation of agriculture
and small scale & medium scale industries.

 Formats of retailing in India

Popular Formats
• Hypermarts
• Large supermarkets, typically (3,500 - 5,000 sq. ft)
• Mini supermarkets, typically (1,000 - 2,000 sq. ft)
• Convenience store, typically (7,50 - 1,000 sq. ft)
• Discount/shopping list grocer

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• Traditional retailers trying to reinvent by introducing self-service formats as
well as value-added services such as credit, free home delivery etc.

The Indian retail sector can be broadly classified into:

a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector.
Traditional types of retailers, who operate small single-outlet businesses
mainly
using family labour, dominate this sector .In comparison, super markets
account for a small proportion of food sales in India. However the growth rate
of super market sales has being significant in recent years because greater
numbers of higher income Indians prefer to shop at super markets due to
higher standards of hygiene and attractive ambience.

b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health
and beauty products .Here also small, single-outlet retailers dominate the
market .However in recent years, a few retail chains specializing in these
products have come into the market. Although these retail chains account for
only a small share of the total market , their business is expected to grow
significantly in the future due to the growing quality consciousness of buyers
for these products .

c) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets
operate all over India. Traditional outlets stock a limited range of cheap and

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popular items; in contrast, modern clothing and footwear stores have modern
products and attractive displays to lure customers. However, with rapid
urbanization, and changing patterns of consumer tastes and preferences, it is
unlikely that the traditional outlets will survive the test of time.

d) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market,
very few large and modern retailers have established specialized stores for
these
products. However there is considerable potential for the entry or expansion
of
specialized retail chains in the country.

e) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of
foreign
companies during the post liberalization period. A greater variety of consumer
electronic items and household appliances became available to the Indian
customer. Intense competition among companies to sell their brands provided
a strong impetus to the growth for retailers doing business in this sector.

f) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have
encouraged consumer expenditure on leisure and personal goods in the
country.
There are specialized retailers for each category of products (books, music
products, etc.) in this sector. Another prominent feature of this sector is

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popularity of franchising agreements between established manufacturers and
retailers.

 Malls In India
Over the last 2-3 years, the Indian consumer market has seen a significant
growth in the number of modern-day shopping centers, popularly known as
‘malls’. There is an increased demand for quality retail space from a varied
segment of large-format retailers and brands, which include food and apparel
chains, consumer durables and multiplex operators. Shopping-centre
development has attracted real-estate developers and corporate houses across
cities in India. As a result, from just 3 malls in 2000, India is all set to have over
220 malls by 2005. Today, the expected demand for quality retail space in 2006
is estimated to be around 40 million square feet. While previously it was the
large, organised retailers – with their modern, up-market outlets, and direct
consumer interface- who had been a key factor driving the growth of
organised retail in the country, now it is the malls which are playing the role.

Factors such as availability of physical space, population densities, city

planning, and socio-economic parameters have driven the Indian market to
evolve, to a certain extent, its own definition of a ‘mall’. For example, while a
mall in USA is 400,000 to 1 million [Link]. in size, an Indian version can be
anywhere between 80,000 [Link]. and 500,000 [Link]. By 2005, total mall space in
the 6 cities of Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, and National
Capital Region (Delhi, Noida, Gurgaon) is expected to increase to over 21.1
million sq. ft. Compared to other big cities, Kolkata and Hyderabad are
relatively new entrants in the mall segment, but are witnessing quick growth.

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Smaller cities like Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh
and Indore, are also expected to see a formidable growth in the growth of
malls in the near future. But malls in India need to have a clear positioning
through the development of differential product assortment and differential
pricing, in order to compete effectively in a growing mall market.
Segmentation in malls, like up-market malls, mid-market malls, etc. , proper
planning, correct identification of needs, quality products at lower prices, the
right store mix, and the right timing, would ensure the success of the ‘mall
revolution’ in India.

 Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly
flourishing industry, retailing needs to cross the following hurdles:
• Automatic approval is not allowed for foreign investment in retail.
• Regulations restricting real estate purchases, and cumbersome local laws.
• Taxation, which favours small retail businesses.
• Absence of developed supply chain and integrated IT management.
• Lack of trained work force.
• Low skill level for retailing management.

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• Intrinsic complexity of retailing – rapid price changes, constant threat of
product
obsolescence and low margins.

The retailers in India have to learn both the art and science of retailing by
closely following how retailers in other parts of the world are organizing,
managing, and coping up with new challenges in an ever-changing
marketplace. Indian retailers must use innovative retail formats to enhance
shopping experience, and try to understand the regional variations in
consumer attitudes to retailing. Retail marketing efforts have to improve in the
country - advertising, promotions, and campaigns to attract customers;
building loyalty by identifying regular shoppers and offering benefits to them;
efficiently managing high-value customers; and monitoring customer needs
constantly, are some of the aspects which Indian retailers need to focus upon
on a more pro-active basis.
Despite the presence of the basic ingredients required for growth of the retail
industry in India, it still faces substantial hurdles that will retard and inhibit its
growth in the future. One of the key impediments is the lack of FDI status. This
has largely limited capital investments in supply chain infrastructure, which is a
key for development and growth of food retailing and has also constrained
access to world-class retail practices. Multiplicity and complexity of taxes, lack
of proper infrastructure and relatively high cost of real estate are the other
impediments to the growth of retailing. While the industry and the
government are trying to remove many of these hurdles, some of the
roadblocks will remain and will continue to affect the smooth growth of this
industry. Fitch believes that while the market share of organised retail will
grow and become significant in the next decade, this growth would, however,

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not be at the same rapid pace as in other emerging markets. Organised
retailing in India is gaining wider acceptance. The development of the
organised retail sector, during the last decade, has begun to change the face
of retailing, especially, in the major metros of the country. Experiences in the
developed and developing countries prove that performance of organised
retail is strongly linked to the performance of the economy as a whole. This is
mainly on account of the reach and penetration of this business and its
scientific approach in dealing with customers and their needs. In spite of the
positive prospects of this industry, Indian retailing faces some major hurdles
(see Table 1), which have stymied its growth. Early signs of organized retail
were visible even in the 1970s when Nilgiris (food), Viveks (consumer durables)
and Nallis (sarees) started their operations. However, as a result of the
roadblocks (mentioned in Table 1), the industry remained in a rudimentary
stage. While these retailers gave the necessary ambience to customers, little
effort was made to introduce world-class customer care practices and improve
operating efficiencies. Moreover, most of these modern developments were
restricted to south India, which is still regarded as a ‘Mecca of Indian Retail’.

Ch. 2- Scope of Indian retail market

The scope of the Indian retail market is immense for this sector is poised for
the highest growth in the next 5 years. The India retail industry contributes
10% of the countries GDP and its current growth rate is 8.5%. In the Indian
retail market the scope for growth can be seen from the fact that it is expected
to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.

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The organized retailing sector in India is only 3% and is expected to rise to 25-
30% by the year 2010. There are under construction at present around 325
departmental stores, 300 new malls, and 1500 supermarkets. This proves that
there is a tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in
the consumers behavior. For the new generation have preference towards
luxury commodities which have been due to the strong increase in income,
changing lifestyle, and demographic patterns which are favorable.

The scope of the Indian retail market have been seen by many retail giants and
thats the reason that many new players are entering the India retail industry.
The major Indian retailers are:

 Pantaloons Retail India Ltd

 Shoppers Stop
 Bata India Ltd
 Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail
giants are also entering the Indian retail market. They are :

 Tesco
 Metro AG
 Wal- Mart

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The scope for growth in the Indian retail market is seen mainly in the
following cities:

 Mumbai
 Delhi
 Pune
 Ahmedabad
 Bangalore
 Hyderabad
 Kolkata

The scope of the Indian retail market is very vast. And for it to reach its full
potential the government and the Indian retailers will have to make a
determined effort.

Ch. 3- Strategic planning in retailing:

The retail strategy can be defined as a clear and definite plan that the retailer
outlines to tap the market and build a long-term relationship with the
consumers. A retail strategy is fundamental to the existence of the retail
organization. It helps the organization, it purpose and hoe the retailer will face
various challenges in the environment and marketplace.

Steps in the process if strategic planning in retail:

Define the business mission

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Conduct the situation audit

Identify strategic plan

Evaluate the plan

Establish specific objectives

Develop the retail mix

Evaluate the performance and make adjustments

Step 1. Define the business mission

The mission statement is a statement of the long-term purpose of the

organization. It describes what the retailer wishes to accomplish in the markets
in which it chooses to compete. It highlights the following elements:

 The products and services that will be offered.

 The customers who will be served.
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  The geographic areas that organization chooses to operate in.
 The manner in which the firm intends to compete in its chosen markets.

Step 2. Conduct the situation audit:

Situation audit is an analysis of the opportunities and threats in the retail

environment and the strengths and weaknesses of the retail business relative
to its competitors. In situation analysis one conduct a research on following
factors:

Market Factors

Size, growth, seasonality, and Business Cycles

Competitive Factors

Barriers to entry, bargaining power of vendors, and competitive rivalry

Barriers entry- institute conditions in a retail market that make it difficult for
other firms to enter the market, such as scale economics, customer loyalty,
and the ability for great locations.
Scale economics- are cost advantages due to a retailer’s size.
Bargaining power of vendors- Markets are less attractive when only a few
vendors control the merchandise sold in it. In these situations, vendors have
the opportunity to dictate prices other terms (like delivery dates), reducing the
retailer’s profits.
Competitive Rivalry- defines the frequency and intensity of reactions to
actions undertaken by competitors. When rivalry is high, price wars erupt,
employee raids occur, advertising and promotions expenses increase, and
profit potential falls. Conditions that may lead to rivalries are: large number of

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competitors that are all about the same size, slow growth, high fixed costs, and
a lack of perceived differences between competing retailers.

Environmental Factors

Technology, economic, regulatory, and social

Strengths and weaknesses analysis

It indicates how well the business can seize opportunities and avoid harm from
threats in the environment.

Step 3. Identify strategic plan:

In this step the retailer consider the various alternatives available for tapping
the market. Igor Ansoff presented a matrix, which looked at growth
opportunities by focusing on the firm’s present and potential products in the
existing and new markets. This matrix, which is popularly known as Ansoff’s
Matrix, helps us understand the options available to a retailer. These
alternatives available to the retailer are:

Existing New Retail formats

Existing Market penetration: Market development
/Expansion
 Increase the
market size  New market
 Increase the segments with
customers existing format
 Increase the  New customer
purchase base

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 frequency
New Retail format Diversification
development
 New retail
 New format with formats directed
existing at new market
customers segments
Market segments

Step 4. Evaluate the plan:

This determines the retailer’s potential to establish a sustainable competitive

advantage and reap long-term profits from the opportunities being evaluated.
Retailer must focus on opportunities that utilize its strengths and its
competitive advantage

Step 5. Establish specific objectives:

Objectives are a translation of the mission statement into operational terms.
They indicate the results to be achieved. The purpose of setting objectives is to
give direction and set standards for the measurement of performance.
Management normally sets both long-term and short-term objectives. One-or
two-year time frames for achieving specific targets are short-term. Long-term
objectives are less specific than short-term targets and reflect the strategic
dimensions of the firm. Good objectives are measurable, are specific to time
and indicate the priorities for the organization. Main organizational objectives
are:

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• Market performance objectives: Sales Objectives - Volume or growth
goals are often seen

• Customer Traffic Objectives - Get new people into the store through
promotions, sales, special services

• Customer Loyalty - Get customers for life. The sale is the beginning of
customer contact not the end

• Market Share - sales goals stated in terms of share of market in

comparison to local competitors

• Retail Image - Re-identifying the target market and the future growth
potential (e.g. Sears)

• Vendor relations - increase sales through better coordination with

vendors

• Financial performance: objectivesTargeted Returns - Ratio of calculated

net income to sales (ROS) or to total assets (ROA) or to equity (ROE)

• Earnings per share - Important consideration for publicly traded retail

firms

• Stockholder dividends

• Labor productivity - Sales per employee is a common retail

measurement

• Space productivity - Sales per square foot of space (or per square foot of
selling space) is another common measurement

• Merchandise productivity - Inventory turnover goals

• Personal objectives: Self-Gratification - Owners, managers, and

employees will probably choose working in a retail environment they
enjoy

• Status and Respect - Managing a store or being an employee of the

month adds to individuals status and self-respect

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 • Power and authority - Retail employment usually provides for more
responsibility than factory employment

• Societal objectives: Social responsibilities are becoming more important

• The amount of social responsibility that comes from a true concern for
society (e.g. Ben & Jerry’s) versus the amount that is triggered by the
desire for positive publicity and promotion (Drug store health fairs) is
unknown

• Societal concerns often are at the expense of financial objectives.

Step 6. Develop a retail mix:

This is to develop a retail mix for each opportunity in which an investment will
be made and control and evaluate performance

Step 7. Evaluate performance and make adjustments:

This step is to evaluate the results of the strategy and implementation

program. If the retailer is meeting or exceeding the objectives, changes aren’t
needed.

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Ch. 4 - Introduction of the retail unit:
General Introduction

The foundation of shopper’s stop was laid

on October 27,1991 by the K. Raheja Crop.
group of companies. Being amongst India’s
biggest hospitality and real estate players,
the group crossed yet another milestone
with its lifestyle venture- Shopper’s stop.
From its inception, shopper’s stop has progressed being a single brand shop to
becoming a fashion & lifestyle store for the family. Today, Shopper’s Stop is
household name, known for its superior quality products, services and above
all, for providing a complete shopping experience.

With an immense amount of expertise and credibility, Shopper’s Stop has

become the highest benchmark for the Indian retail industry. In fact, the
company’s continuing expansion plans aim to help shoppers’ stop meet the
challenges of the retail industry in an even better manner than it does today.
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Shopper’s stop is the only retailer from India to become a member of the
prestigious Intercontinental Group of Departmental Stores (IGDS). The IGDS
consists of 30 experienced retailers from all over the world, which include
established stores like Selfridges(England), Karstadt(Germany), Shanghai
No.1(China), Manor(Switzerland), to name a few.

With an unparalleled assortment of the leading international and national

brands in clothing for men, and kids; accessories, fragrances, cosmetics,
footwear; home furnishing and décor products, their aim is to provide
shoppers a truly international shopping destination.

Experienced professional management; supported by world-class systems and

practices; and a talented pool of associates with a shared passion for making
every shopper visit a memorable one, has helped Shoppers Stop to grow from
single store in 1991 to the largest chain of Department Stores in India today.

Their unending pursuit to benchmark themselves with the best in the world is
testified by the fact that Shoppers Stop is the only Indian member of the
“Intercontinental Group of Departmental Stores”, which has the likes of
Selfridges(U.K.), Karstadt(Germany), Marks & Spencer (UK),
Matahari(Indonesia), Myers Grace Bros.(Australia) and Rustan’s(Philippines)
among its members.

ACCOMPLISHMENTS OF SHOPPER’S 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
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  The only retailer from India to become a member of the prestigious
Intercontinental Group of Departmental Stores (IGDS)
 "Most admired Fashion Retail Destination of theYear
 Images Fashion Forum - Jan 2009
 Most Admired Retailer of the Year(Customer Relations)
 Shoppers [Link] 2009 - Sep 2009
 "Best Visual Merchandising"
 VMRD Retail Design Award ,July 2009
 "Retailer of the Year - Fashion &Lifestyle"
 Asia Retail Congress - Feb 2009

VISION

“To Be A Global Retailer In India And Maintain Its No.1 Position In The Indian
Market In The Department Stores Category,”

MISSION

“NOTHING BUT THEBEST”

“We Will Provide the “BEST” Value In Terms Of Products And Services And
Adopt “best” Process For Stakeholders, Without Compromise, Thereby
Matching Global Standards Of Performance.

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VALUES

“We will not take what is not ours”

“The obligations to dissent”
“We will have an environment conducive to openness”
“We will have an environment for innovation”
“We will have an environment for development”
“We will have a willingness to apologize and forgive”
“We will respect our customers’ rights”
“We will create an environment of trust”
“We will be fair”
“We will be socially responsible”

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Introduction of specific retail unit:

The retail units of shopper’s stop in jaipur

are in two places:

1. Triton mall, jhotwara

2. Gaurav Tower, Malviya
nagar

The location which is selected for the

project study is Shopper stop in malviya
nagar at Gaurav tower.

It has two floors, ground floor and the first floor. At the ground floor the
displayed items are:

 Girls’ apparel
 Cosmetics (Lakme products only)
 Fragrance
 Gift ideas (fashion jewellery, pens, watches etc. )
 Leather items (belts, wallets etc.)

And at the first floor they have:

 Boys’ apparel
 Girls and boys footwear
 Toys
 Luggage, travel bags, hand bags, school bags. Laptop bags etc.)

The cash counter is available on both the floors for the convenience of the
customers so that they don’t have to go from one floor to another for payment.

Ch. 6 – Departmentalization
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Shopper‘s Stop is known as multi-Brand retail outlet because of their verity of
Products. They offer various products like apparels, Accessories, Toys,
Fragrances, Beauty Products, Travelling products, Home Appliances, etc. They
offer various products like Apparels, Fragrance & Beauty, Home & Travel, Gift
ideas. Under this they have different Categories, Brands and Styles to offer
customers. They have many other showrooms of Shopper‘s Stop in Delhi and
NCR, so we can say that they have long chain of retail outlets. They also offer
online purchasing which means that they are using new technology to increase
their sales.

Brands Offered:

Shoppers Stop retails products of domestic and

international brands such as Louis Philippe,
Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle,
Magppie, Nike, Reebok, LEGO, and Mattel.
Shoppers Stop retails merchandise under its
own labels, such as STOP, Kashish, LIFE and
Vettorio Fratini, Elliza Donatein, Acropolis etc.
The company also licensees for Austin Reed
(London), an international brand, who‘s mens‘ and
womens‘ outerwear are retailed in India exclusively
through the chain.

Different brands offered under each category are given as billow:

APPARELS

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Arrow Louis Phillipie
Park Avenue Parx Van Heusen
Zodiac Stop
Caliber Blackberries
Scullers Givo
Orly Lee
Levice Pepe
Killer Lee Cooper
Wrangler Spykar
Life Allen Solly
Provouge Wills

Jewellery Music
Estelle Planet M
Sarvoski Music World
Oyzsterbay
Facet
Carbon
Sparkles
Tanishq FQ
Swaroski
Gili

Home Décor Hair Styling

Yamini Habbibs
Four Seasons
Viva Books
WelspunCrossword
Borosil
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Corning Ware
Pedrini
Pyren

Watches Sunglasses
Casio Ray Ban
Esprit
Fossil
Titan

Shoes
Lee Cooper
Red Tape
Picasso
Stop
Life

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Fragrances
Christian Dior Jil Sander
Ysl Calvin Klein
Davidoff Boucheron
Joop Police
Diesel Myrurgia
Lancaster Etienne Aiger
Nicos Xm
J'del Pozo

Ch 7. - Retail location strategies:

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selecting the location for the store is in the hands of retailers because before
selecting the location they have to check many factors like walking traffic,
competitor, parking infrastructure etc. they also have to decide that they want
to buy the site or they will take it on rent. So after deciding all these things
they reach to the final decision. In jaipur after evaluating all the above things
they select two places:

1. Triton mall, jhotwara

2. Gaurav tower, malviya nagar

The retail location which we select for the survey is Shopper’s stop at Malviya
nagar. The factors considered for location selection are:

1. it is a centralized location which cover the consumers of Malviya Nagar,

Jawahar Nagar, mansarover etc. areas so people reside there come to
GT to shop.
2. Huge availability of transport like taxi, buses etc.
3. Facility of free and ample parking increased the number of footfalls in
GT .
4. Clientage for shopper’s stop prefer to shop in malls and convince store
rather than an individual store so a store in mall is good than an
individual shop.

Ch. 8 – Retail marketing mix

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Ch. 9 – Retail customer type
Shoppers‘ Stop‘s customers fall between the age group of 16 years to 35 years,
the majority of them being families and young couples with a monthly
household income above Rs. 20000 and an annual spend of Rs.15000. A large
number of Non - Resident Indians visit the shop for cultural clothes in the
international environment they are used to which means people from abroad
are also interested in shopping in Shopper‘s stop. Their target customers are
upper middle class and upper class.

The category which I have chosen for the project is JEWELLERY. It offered a
variety of fashionable as well as gold and diamond Jewellery. The brands
offered are TANISHQ, GILI, etc.
In that particular store two types of jewellery are available :-
 Fine jewellery
 Artificial and fashion jewellery

fine jewellery
 Rings
 Pendents
 Earings
 Bracelets

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  Nose pin
In this particular type the brands it offered are ASMI, GILI, TANISHQ.
[Link] and fashion jewellery
 Sets
 Earings
 Pendents
 Bracelets
 Chains and necklaces
 Bangles
ZAVERI PEARLS, TRIBAL ZONE, AARYA 24KT are the brands offered in this
particular store.

Customer Rewards:
Shoppers Stop‘s customer loyalty program is called The First Citizen. The
program offers its members an opportunity to collect points and avail of
special benefits. Currently, Shoppers‘ Stop has a database of over 2.5 lakh
members who contribute to nearly 65% of the total sales of Shoppers‘ Stop.
They also offer a co-branded credit card with Citibank for their members.

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Ch. 10 - Supply chain management:
Understanding the importance of distribution and logistics in ensuring that
merchandise is available on the shop floors has led Shoppers‘ Stop to
streamline its supply chain. The company has developed process manuals for
each part of the logistics chain. These modules include vendor management,
purchase order management, stock receiving systems, purchase verification
and inventory buildup, fixing of price and store tags, dispatch of stocks to the
retail floor and forwarding of bills for payment. If we talk about various brands
then the answer is that they have a direct tie ups with different companies and
companies deliver all the needed products to their door-step means deliver all
the goods to every shopper‘s stop showroom. But there are some companies
which do not provide them these services so for those they have their own
carrier.

Shopper’s stop has around 400 vendors. Their distribution is very sound and
impressive. Distribution becomes even easier with their new online system.

Their online supply network is based on ERP(Enterprise Resource

Planning).Shoppers‘ Stop was the first few retailers to use scanners and
barcodes and completely computerize its operations. Today it is one of the few
stores in India to have retail ERP (Enterprise resource planning) in place, which
is the best retail planning system in the world. With the help of the ERP, they
are able to open new stores faster and get information about merchandise and
customers online, which reduces the time in taking quick decision. Only right
type of product is brought to the stores. The online system of distribution
helps in warehouse management as well which also decreases its maintenance
cost and warehousing cost. This all increases the availability of products on
right time and right place.

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Merchandising is received once a day from local store & twice a week from
outstation store.

Ch. 11 - Use of IT in the store:

Shoppers‘ Stop was the first few retailers to use scanners and barcodes and
completely computerize its operations. Today it is one of the few stores in
India to have retail ERP (Enterprise resource planning) in place, which is the
best retail planning system in the world. With the help of the ERP, they are
able to open new stores faster and get information about merchandise and
customers online, which reduces the time in taking quick decision.

Shopper’s stop has been awarded as best IT user by NASSCOM.

It also got USAT connectivity in [Link] it suffered losses in 2001 because of

its IT system failure. It focuses on the organizational restructuring program.
Now it had moved its services to leased line services

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Ch. 12 - CRM (customer relationship management)
Strategies:

Retail chain Shoppers‘ Stop Ltd, is eyeing over 50 per cent sales this year from
its customer relationship management (CRM) initiatives. The company has also
lined up an aggressive expansion plan targeting smaller towns and cities in the
country. BS Nagesh, managing director and CEO of Shoppers‘ Stop, told FE that
the company has given a new direction to its CRM initiatives after it acquired a
business intelligence software called ‗Business Solutions‘ about eight months
ago. The new software helps generate intelligent data from Shoppers‘ Stop
customer base of about 2,30,000. The company then collects this data and
touches base with customers via direct mailers informing them of all new
promotions that is currently on and also updates them about the upcoming
events. Shoppers‘ Stop claims that it has taken its CRM initiatives to a new
height and now calls it‘s loyalty programmes Customer Experience
Management. ―If we find from the data that a customer had bought a pair of
trousers, we tell him about a new range of shirts that we have just brought
into our store,‖ says Mr Nagesh. ―We are planning to open 35 outlets within
the next three years. We have identified 21 new locations including Kanpur,
Amritsar, Jalandhar, Ahmedabad and Indore, among others to set up these
outlets,‖ Mr Nagesh said.

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.

Ch. 13 - Major competitors of Shopper’s stop:

In India competitors for Shopper’s Stop are mainly foreign players and also
Individual stores. The name of few competitors is given below:
Lifestyle

Globus

Central

Pantaloons

Westside

Ebony
Shopper’s stop at malviya nagar major competitors for women’s apperals is:
 Big shoppers’
 Local shops of GT bazaar
 Levis’
 koutons

SWOT ANALYSIS
Strength

 Variety
 Range
 Different Brands
 Pioneer

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  Loyal customer
 Low risk
 Good financial position
 Presence across various segments
 Parikrama the festival

Weakness
 Very high prices: They provide international Brands due to which their
prices are very high.
 Less Schemes: They do not offer so much schemes, they offer schemes
only on special occasions like Diwali, Independence Day, etc.
 Less Discounts : They offer less discount in their schemes, they
basically offer 10% to 20% discount
 Competition from standalone stores
 Late entry into value retailing
 Store makeover expenditure

Opportunities
 Awareness about the brands
 Quality
 Youngsters
 Higher disposable income
 Collaborate
 Private levels
 Tier 2 & tier 3 cities
 Enter new consumer goods segments

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Threats
 Government Policies
 Entrance of New Players
 High attrition
 Lesser consumer spending
 Entry of foreign players
 Unorganized sector
 Independent stores

Ch. – Observations and suggestions

1. A complete shoping solution for the one who is brand savvy.
2. They should introduce low rate brands which will attract the middle class
customers as the major competitors of women apparels there is local GT
shops where one can get fashionable cloth at lower price
3. It should use aggressive medium of advertisement to gain more attention
of customers
4. It should introduce products of home and décor.

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Chapter14Bibliography

Reference Books
o Marketing Management: Philip Kotler

o Advertising and Sales: Promotion Belch and Belch

o Retail Management:  Bajaj and Srivastav

JOURNALS AND MAGAZINES 

Business World

Business Today

Websites
[Link]

[Link]

[Link]

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