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To our beloved parents, who always encouraged us to reach


our dreams & believed in our abilities. May God protect &
bless you and grant you all the wishes you have in your life.

To our Professor & Advisor, Dr. Rober Opku: thank you for
your support & encouragement, and for making the lectures
filled with fun & active learning environment, hoping we will
always make you proud "insha Allah".

To our Team: may God bless our wonderful partnership &


may AHRS Consultancy Firm transforms from a dream to a
successful reality "insha Allah".

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...

Products & Services ...

Positioning Of Retail Stores .

Branches ......

Second: External Environment Analysis ....

...

Economical Analysis ......

Indian Retail Market ...

First: Company's History & Background

Demographic Analysis

Third: Internal Environment Analysis ..... 10


Corporate Level Strategy ........ 10
Management ....... 10
Fourth: Swot Analysis ..........

14

Strengths .......... 14
Weaknesses ......... 14
Opportunities ....... 15
Threats .... 15
Challenges ...... 16
Fifth: Marketing Mix .....

17

Price .... 17
Place, Distribution, Channel, Or Intermediary ... 17
Product ....... 18
Promotion ... 19
Physical Evidence ... 20
People ......... 20
Process .... 21

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Case Issues ....

22

Main Problem .......

22

1. What Is The Decision That Govind Shikhande Has To Make


Why Is This Decision Important?

.....

23

2. Why Is The Youth Market An Attractive Opportunity For


Shoppers Stop ..

23

3. What Is The Addressable Audience In The Youth Market

25

4. Does Connecting With The Young Require A Fundamental


Change In Approach ......

31

5. How Should Shoppers Stop Pursue The Youth Market ..

31

6. Should Shoppers Stop Continue To Work With Existing

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Customer Segments? If Yes Why And If No Why .

37

Appendix Brands ...

38

Appendix Business Partners ......

40

Appendix Business Partners ......

43

References ...............................

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....... 1

1.

Group Retail Brand Architecture

2.

International Brand in Shopper's Stop

3.

Shopper's Stop Position in The Retail Market

...

......

4.

Shopper's Stop & Their Partners Branches .......

5.

India's Demographic Profile, 2006

....................

6.

India's Demographic Dividend

......

7.

Emergence of Five Economies

.........

8.

Share of Indian Population In Each Income Bracket

...

9.

Indian Retail - 2007, 2011-12 .... 7

10. Indian Ret Ail Pie 2007 ..............


11. Organized Retail Pie - 2007

...... 8

12. New Entrants to The Retails Market

....

13. Shoppers Stop Financial Performance 2009, 2010, 2011


& 2012 .......... 12
14. Indias Tiered Cities ....... 17
15. Brand Perception Study of Shoppers Stop Compared With
Lifestyle, Pantaloon and Central ...... 22
16. Indias Demographic Profile, 2006
17. Indias Demographic Dividend

..... 23

..... 24

18. Indian Youth Percentage in Tier 1, 2 And Metros

.... 25

19. Conclusion from The Indian Youth as Consumers, 2006

26

20. India's Socio-Economic Classes and Number of Households,


2006 ........... 26
21. The Net Generation's Share of Population, 2006 .. 28
22. Indian Youths as Consumers, 2006

.. 29

23. Net Generations Buying Behavior

.... 30

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First: Company's History & Background


The foundation of Shopper's Stop was laid in October 27, 1991, by the K. Raheja
Corp Group of companies. Being amongst India's biggest hospitality and real estate
players, the Group crossed yet another milestone with its lifestyle venture.

Exhibit (1) Group Retail Brand Architecture

A. Products & Services:


From inception, Shopper's Stop has progressed from being a single brand shop to
becoming a Fashion & Lifestyle store for family.
Today, Shopper's Stop is a household name, known for its superior quality products,
services and above all, for providing a complete shopping experience. Shoppers Stop
is the flagship business of departmental stores in India. They retail a range of
international branded apparel, footwear, perfumes, cosmetics, jewelry, leather products,
accessories, home products, electronics, books, music and toys in their stores. They also
retail their own private label products; these are complemented by cafe, food,
entertainment, personal care and various beauty related services. Promotions and events
are an integral part of their service.
Recently, they successfully introduced a number of international brands, the new
Indian aspire to own such as:

French Connection, CK Jeans, GAS, ESPRIT, Tommy Hilfiger in apparel


segment.
CHANEL, Lancme, MAC, Clinique & Estee Lauder in cosmetics.
CK, Armani, Gucci in sun glasses
CK, Boss in watches

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Exhibit (2) International brand in shopper's stop

With an immense amount of expertise and credibility, Shopper's Stop has become
the highest benchmark for the Indian retails industry. In fact, the companys continuing
expansion plans aim to help Shopper's Stop meet the challenges of the retail industry in
an even better manner than it does today.
B. Positioning of Retail Stores:

Exhibit (3) Shopper's Stop Position in The Retail Market

The transition:
In April 2008 Shopper Stop launched its new Logo after customer research &
feedback. After successfully introduced a number of international brands, all the new
stores provide more superior products & shopping experience to the customers by
addressing customers' needs at different aspects.
C. Branches:
Shopper's Stop is committed to a continues, stable & progressive expansion in store
branches all over the country, since the company opened in 1991 it has grown
significantly & became a huge corporation containing a lot of departments, branches
and has several partners as follows:
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Shoppers Stop: 30 stores

Hypercity: 5 stores

Arcelia: 2 stores

Homestop: 3 stores

Mac: 11 store

Mothercare: 23 store

Crossword: 56 stores

Clinique: 3 stores

Estee Lauder: 3 stores

Exhibit (4) Shopper's Stop & Their Partners Branches

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Second: External Environment Analysis:


A. Demographic Analysis:
India had the second-highest population of all countries in the world. Against the
backdrop of an aging world, however India had the advantage of a large young
population. For example, 35 percent of Indians were younger than 15 years of age, and
70 percent were younger than 35 years of age (see below Exhibit). Because young
customers had a high prosperity to consume, the lucrative consumer base had
positioned India as a promising destination for global retailers.
Age in Years

Brazil

0-14
15-34
35-59
60 and over

29
37
26
8

Russia
India
Percentage of the Population
16
35
26
35
36
23
23
7

China
25
35
30
10

Exhibit (5) India's Demographic Profile, 2006

Demographic Dividend
The population of India was forecast to stay young for the next two decades. The
country was on the cusp of what economists referred to as a demographic dividend.
This rare social phenomenon led to opportunities for economic growth because of a
confluence of factors, such as a decline in the birth rate, an increase in the number of
working adults and a decrease in the dependent population. Demographic dividend
would provide India with a competitive advantage over not only the developed
countries of the world but also emerging economies in Brazil, Russia and China.
Experts widely acknowledged that the Indian economy, could achieve consistent
growth of approximately 9 percent each year for the next two decades.
By increasing the percentage of young people in the population, the demographic
dividend would bring additional benefits: a rise in the relative number of breadwinners,
and increase in the number of women joining the workforce and a decline in the
dependency ratio. Together, these benefits would lead to higher savings. The rate of
savings in India as a percentage of gross domestic product (GDP), was already much
higher than developed countries at 33 percent and would increase further over the next
few decades.

Source: Shoppers Stop Equality Research Report, and B&K securities, February 2007 1

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(Population in Millions)
Age Group in Years
2001
0-4
110.45
5_9
128.31
10_14
124.85
YOUNG POPULATION (15-34)
347.68
35_39
70.57
40_44
55.74
45_49
47.40
55_59
36.58
60_64
27.67
27.52
WORKING POPULATION (15-64)
613.16
65_69
19.81
70_74
14.71
75_79
6.55
80 plus
8.03
Age not stated
2.74
TOTAL POPULATION
1,028.61
Median age of the population (years)
22.51
Working population as % of total population
59.6
Dependent population as % of total population 40.4
Percentage of young population (15-34 years)
33.8
Percentage of population below the age of 35
69.1

2011*
115.58
115.43
120.43
432.38
83.62
74.09
63.51
52.43
41.82
32.58
780.43
24.92
18.74
12.55
8.46
_
1,196.55
25.47
65.2
34.8
36.1
65.5

2021*
110.96
112.69
113.07
465.88
101.85
90.19
80.96
70.58
59.03
47.02
915.51
35.56
25.71
17.53
15.99
_
1,347.02
29.33
68.0
32.0
34.6
59.6

Exhibit (6) India's Demographic Dividend

Projected Population
Note: the government of India conducts the official census once in a decade. The most
recent census was in 2001.2

Source: _ adapted from Youth in India _ Profiles and Programs the Ministry of Statistics and
Program Implementation of the Government of India, October 2006, Table 2(a) Distribution of
population by age and sex, 2001-2021,page 37, www.mospi.gov.in,accessed November 12, 2008.

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B. Economical Analysis:

Exhibit (7) Emergence of Five Economies

Growing Middle Class

India will see further reduction in Poverty and Growth of its Middle Class

Exhibit (8) Share of Indian Population In Each Income Bracket

C. Indian Retail Market:

Even a 1% market share of the Indian Retail pie, will provide a $6 Billion
turnover in 2011-12.
The ICRIER report commissioned by the Government that shows mom pop
stores, co-existing with the big box retailing even in 2011-12.

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The opportunity to setup various retail models (from niche to big box) will
exist in the next few years.
Department stores opportunities will increase due to new malls emerging
but very few anchors.
New brands entering the country give further opportunity for specialized
concepts and department stores.

Exhibit (9) Indian Retail - 2007, 2011-123

Exhibit (10) Indian Ret4Ail Pie - 2007

3
4

Source: ICRIER Report and Central Statistical Organization (CS0)


Source: India Retail Report 2009

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Exhibit (11) Organized Retail Pie - 20075

New Entrants to the Retails Market:

Due to the expected Indian consumption increase; a potential retail opportunity has
been foreseen, hence Indias leading corporate houses entered the retail arena in the past
2 years, and new groups/competitors entered the market into new formats and &
expanded categories such as:

Exhibit (12) New Entrants To The Retails Market

Convenience / Supermarkets : More (Aditya Birla Retail), Fresh (Reliance


Retail) , Easy day (Bharti Wal-Mart Retail), Reliance Hyper

Electronics : Croma, Cellucom, Subiksha Mobiles, Jumbo, Excite

Specialty: Reliance entered into multiple formats across categories

(Reliance footprints, Reliance Jewel, i -store, eye wear, Home, Books etc).
RPG also launched Books & Beyond
M&M retail launched Me & Moms a specialty format for infants & moms to be

Home : @ Home, Housefull, Eternia , Rosebys etc

Apparel Manufacturers / Retailers: Koutons, H&M, People, Collective etc.

Discount store Formats: The Loot, The Grab, Brand Factory etc.

Source: India Retail Report 2009

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Shopping Malls

There has been a spiraling growth in the number of shopping malls in India from
none in year 2000 to nearly 100 malls within five years, most malls Mumbai which has
share of 31% and then Delhi NCR which has share 21% with 360 malls anticipated
across India by 2007 and up to 600 malls by the end of 2009 The growth was fuelled by
rising incomes, greater availability of credit and busier lifestyles

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100 malls are operational in India currently.


54% of expected mall supply in 2008 was deferred to 2009-10, as much as 11million sq ft of expected mall supply in 2008 was deferred to 2009-10.
100 new malls spread over 30 million sq. ft are expected to come up across
India by end of 2010. (Earlier 328 new malls were expected by 2010.)
North zone is expected to see an addition of 14 Mn sq ft. that translates into 45
malls with 24 in the Delhi NCR.
As Malls have been developed by pure property developers everything related to
mall management has been very unprofessional
New breed of malls to have facilities old malls lacked
Many smaller retailers vacating malls due to lack of business viability.
By 2020, country would have some of the best malls, and many failed malls

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Third: Internal Environment Analysis


A. Corporate Level Strategy

Vision

To be a global retailer in India and maintain its No 1 position in the Indian


Market in the Department store category
Driven by this vision, the company's strategy had three elements:
Delivering higher levels of sensory experience by offering fashionable
merchandise, great store layout & ambience, educated staff, food, and events for a
complete shopping experience; contemporizing the product basket to offer premium
value; and sustaining leadership in the department store format through pan-India
presence, efficient processes and excellent service standards.

Mission Statement

Nothing but the Best

Values

That helps us in achieving our mission and vision:

We will not take what is not ours.

The obligation to dissent (against a viewpoint that is not acceptable).

We will have an environment conducive to openness.

We will believe in innovation.

We will have an environment conducive to development.

We will have the willingness to apologize and forgive.

We will respect our customers' rights.

We will create an environment of trust.

We shall be fair.

We will be socially responsible.

B. Management:
The competent & skilled management expertise successfully running the Shopper
Stop under K. Raheja Corp The Promoter Company who is considered a large and
well established real estate developer, with several decades of experience in India with
several achievements:

Expertise across different major real estate formats. Pioneering role in India in
development of concepts such as self-contained townships and modern business
parks

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Ranked as Best Developer in India in 2007 and 2nd in 2008 & 2009 by
Euromoney (Real Estate Awards)
Also ranked 7th amongst real estate developers globally by Euromoney (Real
Estate Awards 2009)

Corporate Governance:
Independent Directors on the Board of the company.
Professionally managed with ownership and management clearly
demarcated.
Standard Operating Procedures (SOPs) for all functions, which are
subject to audit and are continuously improved upon to obtain the best
results.
Internal Audit is done by E&Y and external statutory audit by Deloitte
Haskins & Sells.
High level of disclosure in our Annual Reports
The Institute of Chartered Accountants of India (ICAI) rated our Annual
Report to be the Best Annual Report under manufacturing & trading
category for the year 200506
95%of vendor accounts reconciled.
Policy for disposal of merchandise older than two seasons.
Have an online Disaster Recovery System

Systems:

First retailer in India to implement the state-of-the-art ERP JDA features:

Auto Purchase order upon drop in predetermined minimum levels.


Auto Replenishment (E3)
Arthur Planning (for forecasting)
Warehouse Management System
Perpetual Inventory Control System
B Connect B with vendors
Over 850 vendor partners connected online.
Oracle Financials for accounting
Ramco HRMS for HR requirements.
B Connect C
Online retailing solution from Novator-Canada

Shopper's Stop Financial Performance highlights and results update:

Shopper's Stop Limited (SSL), on a consolidated basis, reported a 23.1% growth in


net sales. The growth was driven mainly by strong Same Store Sales (SSS) growth of
16% during the quarter.

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Key Financials
Y/E March
Net Sales

2009
1,303

2010
1,452

2011 (expected)
1,660

2012 (expected)
2,075

Exhibit (13) Shopper's Stop Financial Performance 2009, 2010, 2011 & 20126

Use of CRM & ERP at Shoppers Stop:

Customer relationship management (CRM):


Shoppers Stop, has significantly increased sales from its customer relationship
management (CRM) initiatives. The new software helps generate intelligent data from
Shopper's Stop customer base of about 230,000. 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.
Shopper's Stop claims that it has taken its CRM initiatives to a new height and now
calls its loyalty programs Customer Experience Management. If they find from the
data that a customer had bought a pair of trousers, they tell him/her about a new range
of shirts that have just been brought into the store.
ERP (Enterprise Resource Planning):
Shopper's Stop was one of 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.

http://www.stockmarketsreview.com/news/shoppers_stop_4qfy2010_performance_highlights_and_resul
ts_update_20100518_7917/

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By utilizing technology & creating a direct tie with UPS, Shopper's Stop led
Dedicated Distribution Centers, across180,000 sq ft, to supply merchandise to
all stores across the country.
No back storage area in any of the stores.
Distribution Center Management is outsourced to and managed independently
by regional service providers
Regional Distribution Centers connected online to the central systems.
Our partners have an online access to their sales at the stores through B Connect
B.

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Supply Chain:

Human Resource Policies:

Strong value system


Absence of Hierarchy
Transparent and caring (outbound trainings & Meets)
Employees are recognized and rewarded (Baby Kangaroo development
program)
Assessment centers to promote internal employee movement
Profit Linked reward scheme & ESOP
IGDS retail learning's shared
5 days week and Flexible work hours
Space for learning, empowerment and decision-making
Shopper's Stop Limited received the Corporate Excellence Award from
Amity Business School.

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Fourth: SWOT Analysis


A. Strengths:
Shopper's Stop has achieved several accomplishments which created a Competitive
Advantage for the store in the Indian Market, such as:
1.

Shopper's Stop is considered the pioneer in several aspects as follows:


First to create a store Brand.
First Retail Loyalty Program.
First co-branded credit card in the country in retail.
First to use the state of the art retail ERP-JDA.
First retailer to go to Business Schools for recruiting fresh talent
First to take graduates for frontline sales staff.
First Indian entry in the prestigious New York Art Directors Guild
awards for the best campaign.
The Training Program created for the front end staff for their training &
growth titled Baby Kangaroo is recognized as one of the top Innovative
HR practices by Delhi Management Association with Erehwon
Innovation Consulting in Nov 2006.

2.

Loyal customer base

3.

Competent management that won several achievement awards

4.

Well designed & established corporate governance, audit, and Human


Resource Policies that are suitable to Shopper's Stop to run the functions
effectively

5.

Strong IT Systems

6.

Adequate Supply Chain management

7.

Low risk and strong business model

8.

Healthy financial position, low gearing

9.

Presence across retail segments, lifestyle, value and specialty retailing

10. The different unique & high quality brands the Corp Group has sole
franchise for in India
A. Weaknesses:
1.

Competition from standalone specialty stores

2.

Late foray into vale retailing with 51% stake in promoter owned company

3.

High spend on store makeovers and interiors to ensure a pleasant shopping


experience

4.

The website is not attractive enough which might affect the online sales it
needs enhancement

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B. Opportunities:
1.

The Indian Economy & Retail Market growth creates opportunities


foreseeable in the present & expected to continue in the future

2.

Increasing Shopping Malls which can be utilized to enter new markets

3.

Easy credit: during the mid 1990s leading commercial banks started
promoting credit cards and with falling or stable interest rates consumer
credit is expected to grow which will increase the individuals' purchasing
power

4.

Growing Middle Class that represent an attractive opportunity to increase


market segment

5.

The Indian Government decision in February 2006 to allow 51% ownership


by a foreign enterprise in local retailers of a "single" brand thus, "multibrand" retailers such as Wal-Mart didnt have easy time establishing a direct
presence which will help limit international competition.

6.

Expected 30% CAGR in organized retail to result in better footfall and


conversion rates

7.

Entry into Tier 2 and Tier 3 cities

8.

Collaboration with foreign players because of a national brand

C. Threats:
1. Potential employee shortage and attrition due to rapid growth in retailing
2. Impact of slowdown in consumer spend to be felt on department stores
3. Opening up of economy for free entry of foreign players i.e. After the
Indian Government decision mentioned above, global apparel could now
enter the India and establish a local business with majority ownership which
could create a threat from potential competition.
4. There are few strong competitors in the market.

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Challenges:

Manpower:
Trained manpower Demand far exceeds supply especially under the
competition of other large & well-established retail stores.
Wage escalation @17% per year in retail.
Malls :
Lack of well planned malls
Delay in mall openings inhibits expansions plans.
High rental costs: Rent has gone up by 3 times in 3 years, almost 12% of
sales.
Govt. regulations: Protectionist policies & multiple tax structures
Logistics: Growing need for superior co-ordination (Technology)
Speed and overwhelming nature of technological change
Infrastructure: Bottle necks
Evolving Consumer:
Reduced attention spans
Low brand association Butterfly Customers
Hi-Lo customers
The changing nature and effectiveness of marketing and advertising
Transparency of product and price information

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Fifth: Marketing Mix:

Price

The main pricing strategy Shopper's Stop use is:

Premium Pricing: it's the main strategy by charging high prices for excellent
quality and exclusive brands.
However, there are other strategies used such as:

Captive Product Pricing: Shopper's Stop has a variety of exclusive products


that has complements like electronics; thus they capture the customer to buy
the complements along with the product.

Product Bundle Pricing: combining several products in the same package


which also serves to move old stock.

Promotional Pricing: Pricing to promote a product (e.g. buy one get one)

Psychological Pricing: This approach is used when the marketer wants the
consumer to respond on an emotional, rather than rational basis. For example
'price point perspective' 99 cents not one dollar.

Place, distribution, channel, or intermediary7

Location:

The stores located all cross India in major and mainstream cities have
population between 1 million to 4 million.

Exhibit (14( Indias Tiered Cities

For more information regarding stores number, please refer to page 3.

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Layout:

Shopper's Stop invested greatly to ensure that the stores' layout has class,
comfort, and convenience; it also emphasized on creating the right ambience and
service excellence.

Channel:

By utilizing technology & creating a direct tie with UPS, Shopper's Stop led
Dedicated Distribution Centers, across 180,000 sq ft, to supply merchandise to all
stores across the country.
Shopper's Stop has developed process manuals for each part of the Supply Chain
including 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.
Also for online shoppers, the store ensured convenience & reliability by offering
the products with shipping to their door step.8

Product

Shoppers Stop offers a mixture of the leading international and national brands
in clothing for men, women, and kids; accessories, fragrances, cosmetics, footwear;
home furnishing & decor products, and services like: do-it-yourself.
Shopper's Stop uses two tools in product strategies:

Three Levels of a Product:

Shopper's Stop aims to achieve customers' satisfaction by offering various


products covering the three parts of the product:
The CORE product which represents the benefit of the product
satisfaction that makes it valuable to the customers
The ACTUAL product which represents the physical product
The AUGMENTED product which represents the added value obtained
from the product such as: after-sales service e.g. the warranty and the 14DAY REFUND OR EXCHANGE policy which can be made online or
through visiting the store.

For more information regarding the Supply Chain Management, please refer to page 13.

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Promotion

Shopper's Stop uses different elements of the promotions mix to deliver a unique
communication campaign such as:

Sales Promotion:

Sales led by special offers such as: "direct price-offs", gift vouchers, Buy
One Get One Free and special merchandise is offered by the store only for the
occasion Diwali, Christmas, New Year, Valentine's Day...etc.

Loyalty Program:

Shopper's Stop started new loyalty program called First Citizen with 3 tiers:
Classic Moments, Silver Edge and Golden Glow. The program gives the
customers the ultimate shopping experience As a First Citizen, customers
shopping experience becomes even more enjoyable with:
a. Exclusive benefits & privileges
b. Updates on what they can look forward to shop for at Shoppers Stop
c. Exclusive cash counters at Shopper's Stop so they can spend more
time shopping than waiting in a line
d. Reward points on all what they spend at Shoppers Stop.
e. Exclusive schemes, benefits and promotions.
f. Extended and exclusive shopping hours - especially during the festive
season.
g. Special previews before the sale periods.
h. Invitations to exclusive events - both in-store as well as those
organized outside the stores.
i. Home delivery of altered merchandise.
j. Exclusive First Citizens lounge at select stores to relax after hectic
shopping.

Festive offers:
a. Organizing Fashion shows to introduce seasonal new line to the
public each season.
b. Organizes major Promotional Events from time to time e.g. Fly to
Santa Land, Gear up for the school and Salwar Kameez Dupatta
Exchange etc.
c. Organizes Local Festivals like Durga Puja in Kolkata, Onam in South
and Dhanteras in North.

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Advertising:
a. Printed advertisements in newspapers& magazines.
b. Television & Cinema
c. Outdoor advertising (such as posters, bus sides).
d. Creating attractive designs that are eyes caching ads by international
photographers.

Trade Fairs and Exhibitions:

Participate in the Indian fashion week.

Public Relations:
a. Reaching out to the customers in their own style and language e.g. the
first Shopper's Stop store in Lucknow was named Tehzeeb.
b. Trained staff to help the customers with whatever they need.

Sponsorship:

After agreement done with the production company that produced the
movie "Karthik", Shopper's Stop lunched exclusive brand "Karthik Calling
Karthik" inspired form the romantic Bollywood movie.

Physical Evidence

The last part from the shopping experience at Shopper's Stop is the Physical
evidence. Like: Shopper's Stop bags "packaging", the website, Paperwork "the bill",
Brochures, products "Furnishings", logo "on the cloths", Shopper's Stop staff uniforms,
Business cards, The building itself "the store".

People

There are two kinds of people as far as the retail marketing mix is concerned:
people to serve (customers) & people that serve (employees).
The customers are the most important element of any experience; and at Shopper's
Stop the staff is the most important element to have the perfect experience. To guaranty
the satisfaction of the customers Shopper's Stop have hired the most excellent talented
employees who makes Shopper's Stop the best retail store in India.
Shopper's Stop management is looking for people who are passionate, adaptable,
self-motivated, team players and who reflect the mission statement. All that associated
with the training courses provided from Shopper's Stop and creative, collaborative
environment. The office has an informal atmosphere characterized by an easy approach,
no doors workplace.

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Moreover, Shopper's Stop has an IT platform called Spandan which allows


employees to freely interact with the top management creating a more open culture and
gives people a chance to voice their opinions and concerns.
Shopper's Stop has started Annual Sports day to create support system provided by the
families to increase the productivity of the employees. Other event called Parichay
which to celebrate the employees families by sharing the success with them, where a
glitzy fashion show and professionally put together entertainment programs which show
case the employees creative talents is organized.

Process:

Shopper's Stop oversees the process from different points of view. First, "customer
focused" means the customer is the center of the process; from the moment he/she
enters the store the employees are ready to assist him/her with all of his/her needs;
starting with picking an outfit, giving advice, and offering different services until the
check point. All that is done immediately at order to deliver the perfect shopping
experience.
Also, the in-store marketing combined with the internet marketing creates another
part of the process where the company ensures the process controls of the entire
Shopper's Stop marketing mix is maintained in the best quality level to achieve higher
profit & market share.

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Case Issues:
Main Problem:
According to the 2006 Brand Navigator Study, Shopper's Stop was perceived as a
"caring brand". This perception seemed to harmonize with the characteristics of its core
customer group, adults aged 25 45. But the study also showed disengagement with
younger customers. The lack of connection was evident in how customers perceived
the three competitors' brand: Lifestyle, Pantaloon, and Central.

Exhibit (15) Brand Perception Study of Shopper's Stop Compared With Lifestyle, Pantaloon
and Central

Govind Shikhande needed to establish a fit between the company's strategic goals
and the necessity to connect with younger consumers. The company's major
competitors were all weighing their options for pursuing the youth market although
none had yet formulated any specific, long-term plans. Shikhande had to ensure that
any attempt on the part of Shopper's Stop to connect with younger consumers would
neither detract from the Shoppers Stop's business focus, dilute its brand identity nor
alienate existing customers.

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1. What is the decision that Govind Shikhande has to make? Why is this decision
important?
The CEO, Govind Shikhande has to set the tone for the company's overall strategy
while keeping in mind the youth market which could be an integral & highly profitable
new part in the future of the company.
This decision is very important because of the many strategic aspects involved in
this decision i.e. the great opportunities the youth market has to offer in the present & in
the future/ long run considering the demographics statistics & forecast not to mention
the significant indications concluded from the external factors analysis in the first part
of this study.
Moreover, Shikhande had seen countless cases where others had failed with this
segment because their targeting efforts had been imprecise hence, there is a risk
involved in this attempt however, and the potential profit justifies the risk!
Further, Shopper's Stop has limited experience catering to the younger generation
and would require a shift in mindset to be able to appeal to this consumer group.
2. Why is the youth market an attractive opportunity for Shoppers Stop?
It was well determined that India now has the second highest population in the
world with 35% younger than 15 years of age , and 70% younger than 35.
Therefore, it was thought that the population of India will stay young for the
next 2 decades and this is what is called the demographic dividend.
By increasing the young population the demographic dividend will bring
benefits by increasing the number of breadwinners, increasing the number of
working woman, and decreasing the dependency ratio. Which will lead higher
saving rates and gross domestic products (GDP) much higher than developed
countries (33%) and expected to increase over the next 2 decades thus,
increasing the purchase power of the targeted youth segment.
Age in Years

Brazil

0-14
15-34
35-59
60 and over

29
37
26
8

Russia
India
Percentage of the Population
16
35
26
35
36
23
23
7

China
25
35
30
10

Exhibit (16) Indias Demographic Profile, 2006 9

(Population in Millions)
Age Group in Years
2001
0-4
110.45
5_9
128.31
10_14
124.85
9

2011*
115.58
115.43
120.43

Source: Shoppers Stop Equality Research Report, and B&K securities, February 2007

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2021*
110.96
112.69
113.07

[Type text]

YOUNG POPULATION (15-34)


35_39
40_44
45_49
55_59
60_64
WORKING POPULATION (15-64)
65_69
70_74
75_79
80 plus
Age not stated
TOTAL POPULATION
Median age of the population (years)
Working population as % of total population
Dependent population as % of total population
Percentage of young population (15-34 years)
Percentage of population below the age of 35

347.68
70.57
55.74
47.40
36.58
27.67
27.52
613.16
19.81
14.71
6.55
8.03
2.74
1,028.61
22.51
59.6
40.4
33.8
69.1

432.38
83.62
74.09
63.51
52.43
41.82
32.58
780.43
24.92
18.74
12.55
8.46
_
1,196.55
25.47
65.2
34.8
36.1
65.5

465.88
101.85
90.19
80.96
70.58
59.03
47.02
915.51
35.56
25.71
17.53
15.99
_
1,347.02
29.33
68.0
32.0
34.6
59.6

Exhibit (17) Indias Demographic Dividend

Projected Population
Note: the government of India conducts the official census once in a decade. The most
recent census was in 2001.10

The youth represents a large portion of population as mentioned above &


according to the statistics shown, moreover according to a study by Ernst &
Young regarding the opportunity in the youth market, it was indicated that the
Dabblers (age group between 13-21) represent a large segment in India (174
million) and their monthly discretionary spend on lifestyle products is INR
4,000 5,000 while the Aspirers segment (age group between 22-28) represent a
large segment in India (174 million) and their monthly discretionary spend on
lifestyle products (metros) is INR 5,000-8,000; which exemplifies an attractive
opportunity due to the potential revenues expected from targeting this segment.

Shopper's Stop major competitors were all weighing their options for pursuing
the youth market although none had yet formulated any specific, long-term
plans therefore, the company has to take the needed action to penetrate this
attractive market & beat the competitors, and obtains competitive advantage.

In addition, by attracting the youth through providing them with the desirable
products & services they aspire to have, and by fulfilling their needs & wants
successfully, on the long-run Shopper's Stop will strive to retain this segment

10

Source: _ adapted from Youth in India _ Profiles and Programs the Ministry of Statistics and
Program Implementation of the Government of India, October 2006, Table 2(a) Distribution of
population by age and sex, 2001-2021,page 37, http:// www.mospi.gov.in,accessed November 12, 2008.

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[Type text]

customers who will become loyal customers when they consistently feel that
their needs are taken care of & met by Shopper's Stop thus, they will remain
loyal as they grow older, especially considering the excellent record of the
company in maintaining their loyal customers' base.
Chronological Age vs. Psychological Age
Age and life cycle can be tricky variables. In some cases, the target market for
products may be the psychologically young. For example, Honda tried to target 21-year
olds with its boxy Element, which company officials described as a "dorm room on
wheels". So many baby boomers were attracted to the car's ads depicting sexy college
kids partying near the car at a beach, however, that the average age of buyers turned out
to be 42! Nostalgia can also play a role. Chrysler had a young target market in mind for
the PT Cruiser, but found that lots of older consumers were reminded of hot rods from
their youth. 11
Consumers have shown more concern about looking younger and adopting a life
style where they can become more active and healthier; this has been further
encouraged & triggered by the media and combined with the natural desire to stay
young therefore, this will create an opportunity to attract older segments who desire to
have the youth apparel.
3. What is the addressable audience in the youth market?
Since Shopper's Stop caters to a premium-end life style products, the company has
to conduct a thorough study to identify the target youth audience that is relevant for
Shopper's Stop by conducting a thorough analysis about the different segments in the
youth market to zero in on the addressable youth segments.
A. Geographic Segmentation:
Segments
Dabblers
Age group
13-21
Segment size (in millions)
-All India
174.o
-In Tier 1 and 2 Metros
17.0

Aspirers
22-28

Thrivers
29-35

129.0
10.3

105.0
12.2

Exhibit (18) Indian Youth Percentage In Tier 1, 2 And Metros

B. Demographic Segmentation:
The below table shows statistics pertaining Indian youth regarding the following
characteristics: Age, lifecycle, Life stage, Income.
Segments
Age group
Segment size
(in millions)
-All India
-In Tier 1
11

Aspirers
22-28

Thrivers
29-35

174.o
17.0

129.0
10.3

105.0
12.2

Marketing Management 12e, Kotler & Keller, page 250

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Dabblers
13-21

[Type text]

and 2 Metros
Consumption -children of
attributes
liberalizing India
-Into their early years
of discretionary
spending
-10% have graduated
and are working
-spend seven hours a
day with friends at a
movie, gym, class or
just hanging out"
where they form
consumption-related
opinions
Monthly
discretionary
spend
on lifestyle
products
(metros)
Subsegments
(Income)
Present in
Tier 1 and
Tier 2
SEC
classification

INR 4,000 5,000

Very
well-todo
3 million

well-todo
7 million

A 1, A2, and B1

-coming of age with


more than 90%
receiving their first
pay check
-60% get married
during this phase
-steady growth in
incomes
-driven by middleclass values
-price-conscious but
also prone to impulse
purchases and a need
for instant
gratification
INR 5,000-8,000

-time is a major
constraint
-A large part of
household expenses is
spent on stores
providing
customization,
relationship-based
service and flexible
hours.
-seek efficiency and
convenience

Very
well-todo
3 million

Very
well-todo
2 million

well-todo
6 million

A 1, A2, and B1

INR 6,000-9,000

well-todo
5 million

A 1 and A 2

Exhibit (19) Conclusion From The Indian Youth As Consumers, 2006.

Socio-economic Class
A1
A2
B1
B2
C
D
E1
E2
R1
R2
R3
R4
TOTAL

Estimated Number of Households (in


millions)
2.2
4.1
5.3
5.3
12.8
14.2
6.7
10.8
5.8
15.9
56.7
67.3
207.1

Exhibit (20) India's Socio-Economic Classes And Number Of Households, 2006.

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[Type text]

The top band of purchasing power in India, Urban A1A2m comprised a little more
than 6 million households. The next band, which would qualify for the "middle-Class
India" label, comprising B1R1B2C, included approximately 30 million households.
These two groups together formed the ABCR 1 target group, the broadest possible
target group for most consumer goods, at approximately 36 million households. The
lower middle-class comprised DE 1R2 at approximately 37 million households.
C. Psychographic Segmentation
Generation: Net Generation
The Indian youth falls under the Net Generation, which is the focus of most youth
marketing initiatives, consisted of those born between January 1997 and December
1997.
The United States and other countries had classified their ongoing demographic
pool into four broad categories: the Baby Boom Generation, Generation X, the Net
Generation and Generation Next. The Baby Boom Generation consisted of those born
between January 1946 and December 1964. Generation X comprised those born
between January 1965 and December 1976. The Net generation, consisted of those born
between January 1977 and December 1997. The most recent generation, born after
January 1998, was called Generation Next8.
Each generation had been exposed to a set of events that characterized its place in
history and varied with each country. For example the Vietnam War was a defining
moment for the Baby Boom Generation in the United States. However some universal
forces shaped the Net Generations outlook in most countries, including India. The
three most common drivers were the rise of the personal computer, the arrival of the
Internet and the availability of digital technologies. These drivers cut across
geographies. In India, the Net Generation had an additional stimulus_ they had had
grown up with the process of economic liberalization begun in early 1980s. The Net
Generation comprised a large share of the population in most economies although its
rate of growth varied with each country. India had topped the list on both indices (see
below Exhibit).
Country

India
China
United States
Brazil
Mexico
Russia
Japan
Germany
France
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27

Population Younger
than Age 25

Percentage of
Population Younger
Than Age 25

593,293
501,558
105,246
87,437
50,986
46,209
31,846
21,655
19,029

52
38
35
47
49
32
25
26
31

Growth in
Population Younger
than Age 25 since
1980
46
(9)
11
22
14
(15)
(27)
(20)
(7)

[Type text]

United Kingdom
Spain
Canada

18,676
11,500
10,004

31
27
31

(10)
(27)
(3)

Exhibit (21) The Net Generation's Share Of Population,2006

Net Geners, as the members of the Net Generation were called, had unique
shopping behaviors, which were common across geographies. Before going to a store
they went online to scrutinize the product they wanted to buy. They were not satisfied
with one-size-fits-all items that could be bought only in certain places and at certain
times: they wanted something that fit them where, when and how they wanted it. They
expected plenty of choices and high-speed service. They believed that fun should be
embedded into the product. They were not easily influenced by commercial advertising
the way that baby boomers were.
Some people, particularly parents and employers, had expressed concerns and
criticisms regarding the general behavior of Net Geners. According to some critics, Net
Geners were shallow and distracted, lacking an ability to focus. They lacked social
skills and had no time for reading, sports or healthy activities. They had no sense of
privacy; instead, freely divulged their personal information online. They regularly
violated intellectual property rights peer-to-peer networks, by sharing anything they
could, such as music, with no respect for the rights of its creators. They were violent
and narcissistic. They had no work ethic and they didnt care.
D. Behavioral Segmentation:
Under this segmentation, the youth consumers are divided into groups on the basis
of their knowledge of, attitude toward, use of, or response to a product. The study made
by Ernest & Young about the opportunity in the youth retail market in India shows the
following characteristics about the youth:
Segments
Age group
Segment size
(in millions)
-All India
-In Tier 1
and 2 Metros
Consumptio
n attributes

Dabblers
13-21

Aspirers
22-28

Thrivers
29-35

174.o
17.0

129.0
10.3

105.0
12.2

-children of
liberalizing India
-Into their early years
of discretionary
spending
-10 percent have
graduated and are
working
-spend seven hours a
day with friends at a
movie, gym, class or

-coming of age with


more than 90 percent
receiving their first
pay check
-60 percent get
married during this
phase
-steady growth in
incomes
-driven by middleclass values

-time is a major
constraint
-A large part of
household expenses
is spent on stores
providing
customization,
relationship-based
service and flexible
hours.
-seek efficiency and

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[Type text]

just hanging out


where they form
consumption-related
opinions
Media/Leisu
re Habits

-quality time at home


limited to
commercial breaks
on sports or music
channels
-although they pay
little attention to
commercials,
dabblers do not forget
witty advertising
INR 4,000 5,000

Monthly
discretionary
spend
on lifestyle
products
(metros)
Largest share Apparel and footwear
of spend
Attitude
A byproduct of
-toward
hanging out with
shopping
friends
-toward
A place for a bite and
malls
to be with friends
SubVery
wellsegments
well-toto-do
(Income)
do
Present in
3 million 7 million
Tier 1 and
Tier 2
SEC
A 1, A2, and B1
classification

-price-conscious but
also prone to impulse
purchases and a need
for instant
gratification
-major time spent in
commuting, leaving
little time for leisure
or shopping on week
days
-tend to splurge,
however , on
weekends- Extensive
users of the Internet

convenience

-TV is the main


source of news and
entertainment
-drawn to prime-time
sitcoms and serials

INR 5,000-8,000

INR 6,000-9,000

Apparel and eating


out
The purpose with
or without friends
Meets all my
shopping needs in
one place
Very
well-towell-todo
do
3 million 6 million

Apparel and healthcare products


A necessity
A good place for my
family to shop

Very
well-todo
2 million

A 1, A2, and B1

well-todo

5
milli
on
A 1 and A 2

Exhibit (22) Indian Youths As Consumers, 200612

Attribute
1 Freedom

12

Underlying
Statement
Give me
choice

Articulation
They value the freedom to be who they are. They
are not overwhelmed by the proliferation of sales
channels, product types and brands. They leverage
technology to cut through the clutter and find the
marketing message that fits their needs. They love
the freedom of choice and the challenge of finding

Source: YouSumerism: Youth in India Opportunity Knocks, Ernst & young India Retail Advisory
Group, 2007, http://www.ey.com/Global/Assets.nsf/Youth_Final/$file/Youth_Final.pdf,accessed April
20, 2009

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[Type text]

2 Customization Make it my
own

3 Scrutiny

Let me
check out

4 Integrity

Do you
deserve my
money?

5 Collaboration

Let us talk.
Let me help

6 Entertainment

Make it
fun

7 Speed

Serve me
now

8 Innovation

Give me the
latest

the perfect fit.


They have grown up receiving the kind of media
they want, when they want it, how they want it and
being able to change media for greater
customization. They want to customize everything
in the world around them_ their desktop, their
website, their ring tone, their screen saver, their
news sources, their entertainment.
They are skeptical, scrutinizing what they see and
read in the media, including the Internet. They turn
to their friends for advice on shopping instead of
trusting company executives or advertisements.
They see through public relations and spin. They
are honest, considerate and abide by their
commitments. Whether they are researching a
future employer or exposing a flawed viral
campaign, Net Geners ensure the companys values
align with their own. Transparency in the form of
gaining access to pertinent information about
companies and their offerings seems natural to
them.
They are great collaborators, both with friends
online and at work. They develop what is called NFluency networks via the internet, especially
through social media channels.
Having fun with the product is as important as
using it. From their experience with video games,
they know there is always more than one way to
achieve a goal. They are less structured. The
interactive experiences they are exposed to help
them both to think outside the box and to be
irreverent.
They are quick on the uptake. Net Geners assume
that companies can respond with the same kind of
simplicity, speed and directness that they respond
with when they exchange instant messages with
their friends.
They want to be current and contemporary with
whatever they buy. Buying the latest is their way of
indulgence and self-gratification.

Exhibit (23) Net Generations Buying Behavior13

From the above statistics of youth market segmentation, it is indicated that the most
attractive & addressable audience in the youth segment is: the Dabblers & Aspirers
because:
13

Source: Adapted from Don Tapscott, Grown up Digital: How the Net Generation Is Changing Your
World, McGrw-Hill, Columbus, Oh, 2009.

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[Type text]

There are 19 million prospected consumers in both segments present in Tier 1 &
Tier 2
The combined segments have Monthly discretionary spend on lifestyle products
INR 4000 8000
Their consumption attributes are very encouraging:
o The Dabblers: 10% of them have graduated & working which means
they'll have more income
o They Dabblers spend 7 hours a day with friends at a movie, gym, class
or just hanging out"! Shopper's Stop could become one of their
"hanging out" destination if it creates the right marketing mix & execute
the right marketing strategy to attract this segment.
o While the Aspirers -coming of age with more than 90% receiving their
first pay check with steady growth in incomes
o 60% of the Aspirers get married during this phase which means
increasing the targeted consumers to include their new family members,
and although they are price-conscious but also prone to impulse
purchases and a need for instant gratification
Their attitude toward shopping are very encouraging:
o The Dabblers: A byproduct of hanging out with friends, hence if
Shopper's Stop attracted this segment to visit & hang out in the store this
will generate sales.
o The Aspirers: they seek to shop in a store that offers all their shopping
needs, and Shopper's Stop has the variety of products to satisfy their
different needs.
4. Does connecting with the young require a fundamental change in approach?
Since the new youth segment has different & unique characteristics than the other
regular customers' segments of Shopper's Stop then, there is a need to change the
approach to become very effective in attracting the new targeted segment.
5. How should Shopper's Stop pursue the youth market?
Shopper's Stop should study the consumer/buying behavior of the targeted
segments, and identify their needs & wants then, build on their internal strengths to
provide the most attractive marketing offering supported by an innovative marketing
campaign.
Shopper's Stop needs to create new categories, unfold new formats, experiment
with new media and advertising vehicles, form new stores structure and rewire the store
to make it more responsive to younger customers.
First: Marketing Mix (4P's):
A. Products:

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Providing merchandise, fashionable styles, and accessories that can serve all
ages of the youth segment coping with the world fashion designs.

[Type text]

It is very important to provide a wide verity of products since "Freedom" &


having a lot of options is one of the main attributes of the targeted segment.

Implementing customization option for the young customers as Customization is


one of their behavior attribute i.e. they want to customize everything in the
world around them such as: their desktop, their website, their ring tone, their
screen saver, their news sources, their entertainment and surely their apparels.

Shopper's Stop should be very innovative when creating new lines or products
for the young consumers as they want to be current and contemporary with
whatever they buy. Buying the latest is their way of indulgence and selfgratification according to their "innovation" behavior attribute.

Conducting Marketing Research to know the needs & wants of the young
consumers through surveying the youth favorite websites such as: Twitter &
Facebook, in addition to recruiting college students as marketing agents in
different Universities to provide live & continuously updated information about
what's hot & what's not!

B. Price:

Create a special line of products with a good quality that is affordable by the
new young segment

Make premium brand names as well as affordable brands.

Study & provide other payment solutions for the young students, for example
starting a loan account for the regular customers with a maximum limit of
purchase that they can repay in reasonable periods.

C. Place:

Youth Oriented Outlets

Shopper's Stop needs to create an ambience that connects


with the youth mindset; one of the youth segment's attribute is
"Entertainment" thus, it is needed to make renovation in
sections of the store to be appealing to the targeted segment
e.g.:

Providing video games lounge.

Creating an attractive & entertaining environment for the youth such as


(computer games, coffee shops, fast food restaurants)

Providing Wi-Fi service all over the department store.

Redecorating the youth section in the store with modern and funky decoration.

Opening a barbershop, a nail care service, a cinema hall, an Ice skating arena,
and a bowling alley.

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[Type text]

In addition, Shopper's Stop can hire young, friendly, and easy going employees who
can provide an excellent service to the targeted youth segment and more! Such as:
helping them to have a makeover & get the best deals available which is also important
to address the other segment's attributes such as: speed & integrity in addition to
Entertainment.
D. Promotion:

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Conducting promotions and offering good prices & special offers for the new
youth segment during special occasions such as: summer vacation, school
season, and sport events.

Sponsoring events that are attractive to the youth such as: sport events, Music
concerts, Movie premieres, annual youth day, and national ceremonies.

Organizing youth Fashion Shows for their own brands.

Offering the young consumers special youth cards, to gain their loyalty, with
exchangeable points (free meal, free computer game card, special discount...etc)

Sponsoring and conducting birthday parties, graduation parties...etc, and


offering special discount & gifts for the loyal customers on their birthday.

Offering free gift wrapping.

Offering summer students jobs and training.

Providing special discount for students (Schools and college).

Providing special offers for excellent & high achieving students (to encourage
academic achievement)

Recruiting college students as marketing agents in different Universities to


create a booth to advertise the new products and to obtain customers' feedback

Posting ads in Universities campus & students' dorm rooms

Create new means of advertisement campaigns to reach the youth segment such
as: advertising through Twitter, Facebook, and other websites that are very
popular & appealing by the youth "this can be made by giving points to the first
citizen customer card in order to attract different websites' owners to post an ad
for Shopper's Stop in their website.

The "green" consumer or lifestyles of health and sustainability consumer


(LOHAS) is a very important psychographic group, even though Green
consumers are hard to define demographically but some studies have shown that
the majority of this group is comprised of Younger individuals who are more
sensitive to environmental issues as they have grown up in a time period in
which such concerns were salient at some level, and are more knowledgeable
about green alternatives.

[Type text]

Therefore, Shopper's Stop has started a new initiative & announced the new
cause of "Think Green". The first event under the "Think Green" campaign is
the cause of the Neem Tree. The exclusive brand "Life" merchandise is now
sold with sachets of Neem seeds to help create awareness and encourage
customers to support the cause. In addition, Shopper's Stop prints advertising
campaign to highlights environmental concerns.
Shopper's Stop will continue to support different events, causes & issues to
fulfill its CSR (Corporate Social Responsibilities) and by that, it shall attract
more customers from the new targeted youth segment, since it will be catering
to the "Collaboration" behavioral attribute, and also attracting other different
segments as well.

Using unique & cool packaging and shopping bags to cater the "Innovation" &
"Entertainment" behavioral attributes of the targeted youth segments, Shopper's
Stop already is using an exciting feature in this matter which is the limited
edition of Shopper's Stop shopping bags. The first in the series are shopping
bags depicting Fashion through Ages like the Audrey Hepburn Breakfast at
Tiffany's look and The John Travolta Saturday Night Fever look however, the
company needs to create new cool designs that appeal to the new targeted youth
segment.

The company has introduced Shopper's Stop Radio, the first of its kind retail
radio format in the country. The Shopper's Stop Radio has two dedicated RJs
(Radio Jockeys) who entertain customers while they shop. The radio plays all
genres of music and also provides important information to customers related to
shopping, since the company is targeting the young, it should revamp the Radio
programs and tailor it to meet the new youth segment desires, for example: the
Radio show can be hosted & presented by a young Indian idol who is an
admired celebrity, it can include special programs about the youth topics &
interests, it can be utilized to share the customers' feedback live; all of which is
to cater the different behavioral attributes of the youth such as: Freedom,
Customization, Integrity, Entertainment, and Innovation.
Celebrity Influence

This is an important tool which is able to influence


Indian consumer buying behavior. In India, celebrities are
being increasingly used in marketing communication by
marketers to lend personality to their products. With the
visual media becoming more popular the use of celebrities
in the TV media has increased. Celebrities create
headlines. Their activities and movements are being closely watched and imitated.
What they endorse sell like hot cakes. It is not surprising therefore that using celebrities
in advertisements has become common practice .
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[Type text]

Consumers like advertisements more if they are admirers of the celebrities in the
advertisements. When a consumer likes the celebrity in the advertisement, he or she is
more likely to accept what the celebrity says about the advertised product and therefore
will develop more positive feelings toward the advertisement and the brand itself.
Famous celebrities are able to attract attention and retain attention by their mere
presence in the advertisements .
In the midst of the advertisement clutter, the advertisements that celebrities endorse
also achieve high recall rates. When people see their favored reference group members
or celebrities in the advertisements, they pay more attention to them .
Celebrities may also help reposition products. Products with sagging sales needs
some boosting and in this Indian celebrities can help by way of the endorsing the
product concerned .
Shopper's Stop believes that shopping today is not confined to need. It is a new
form of entertainment, to fulfill new aspirations and to bring out the new self. Shopper's
Stop revealed its new logo in all fanfare with Mr. Shah Rukh Khan as the guest of
honor.
Since Shopper's Stop is targeting the youth, there is a need to look for other
reference group members or celebrities favored by the youth targeted segment.

Freebies

Young Indian consumer buying behavior might be encouraged by freebies.


Freebies are consumer products given free of charge as gifts to purchases of selected
products above a certain value. TVs, washing machines, refrigerators, and ready to wear
clothes are some of the product categories in which freebies are given to Indian
consumers.
Second: Marketing Strategies:
A. Online Marketing
A study by the Confederation of Indian Industry (CII) and the International Trade
Centre predicts that e-commerce activity in India will rise from US$ 0.10 million in
2000-01 to more than US$ 5.8 billion in 2010-11, of which the business to business
segment will account for US$ 5.41 billion .
Currently, the products Indian consumers are buying through online are greeting
cards, clothes, CDs/VCDs/DVDs, cassettes, books, magazines, medicine and
educational material .
The popular online shops in India include:

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www.ebay.in
www.shopping.rediff.com
www.reliablegreetings.com
www.shopping.expomarkets.com

[Type text]

Shopper's Stop needs to invest more into enhancing the Online Marketing to attract
the young consumers, because the targeted youth segment, Net Generation has three
most common drivers as follows: the rise of the personal computer, the arrival of the
Internet and the availability of digital technologies.
In addition, this strategy is needed to address some of the youth attributes such as:
o "Speed" they want companies who can respond to their requests very quickly
o "Scrutiny" they are skeptical, scrutinizing what they see and read in the media,
including the Internet. They turn to their friends for advice on shopping instead
of trusting company executives or advertisements
o "Integrity" they see through public relations and spin. They are honest,
considerate and abide by their commitments. Whether they are researching a
future employer or exposing a flawed viral campaign, Net Geners ensure the
companys values align with their own. Transparency in the form of gaining
access to pertinent information about companies and their offerings seems
natural to them.
o "Entertainment" Make it fun!
Therefore, Shopper's Stop should enhance the online marketing to attract &
encourage the customers e.g.:
o Creating chat rooms to allow consumers to discuss their opinions & experience
about the merchandise after purchase
o Providing more details about their marketing offering through the website to
allow consumers access all information they need before making the purchase
decision.
o Creating an interactive means where consumers can for example create a makeover image for them via the website by posting their photo on the clothes they
like!
o Utilizing the social marketing platforms Twitter & Facebook.
B. Competitive Strategy:
A good strategist seeks not only to win the hill, but hold on to it.
Do not assume the enemy will not come
But be prepared for his coming
Do not presume he will not attack,
But instead make your own position unassailable.
1. Market Leaders objectives:
Expand the total market by:

Finding new users: through attracting the youth segment.

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[Type text]

Creating new uses such as: restaurants, coffee shops, cinema, opening a
barbershop, a nail care service, , an Ice skating arena, and a bowling
alley.

Encouraging more usage: through effective promotion campaigns as


mentioned in the marketing mix in the previous section.

Protect its current market share by adopting defense strategies such as:
o Mobile Defense

By market broadening and diversification which is what Shopper's Stop


is doing by attracting new segments through providing them with diversified
marketing mix & offerings.
o Preemptive Defense
Detect potential attacks and attack the enemies first, Shopper's Stop is
adopting product or brand proliferation which is a form of pre-emptive
defense.
2. Market Challenger Strategies (Attack Strategies)

Frontal Attack
Through providing quality, price and low cost.

Encirclement attack
Through attacking on fashion, features, user preferences and anything that might
interest the consumer.

Bypass attack

By diversifying into unrelated products or markets neglected by the other strong


competitors
6. Should Shopper's Stop continue to work with existing customer segments? If
yes why and if no why?
Yes definitely to maintain its competitive position in the market & retain the string
loyal customer base it had for many years, it shouldnt sacrifice the great profit &
success it has been achieving in the Indian market. However, that doesnt meant not to
attract & enter new market segments, Shopper's Stop must include the youth as a new
segments in their marketing efforts as mentioned above.14
Shopper's Stop needs to establish a fit between the company's strategic goals and
the necessity to connect with younger consumers while ensuring that attempts to
connect with younger consumers would neither detract from the Shoppers Stop's
business focus, dilute its brand identity nor alienate existing customers.
14

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For farther information see pages 25 to 31.

[Type text]

Brands:
There are Different national and international brands had been introduced to the
consumer by Shopper's Stop offered under each category are given as billow:
A. Apparels:

Wrangler
Spykar
Life
Allen Solly
Provouge
Wills

Scullers
Givo
Orly
Lee
Levice
Pepe
Killer
Lee Cooper

Arrow
Louis Phillipie
Park Avenue Parx
Van Heusen
Zodiac
Stop
Caliber
Blackberries

B. Jewelry:

Oyzsterbay
Sarvoski
Estelle

Tanishq FQ
Swaroski
Gili

Facet
Carbon
Sparkles

C. Music:

Music World

Planet M

D. Home Dcor:

Pedrini
Pyren

Corning Ware

Ysl

Welspun
Borosil

Yamini
Four Seasons
Viva

E. Hair Styling
Habbibs
F. Books
Crossword
G. Fragrances

Davidoff

Christian Dior

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[Type text]

J'del Pozo

Jil Sander

Joop

Myrurgia

Calvin Klein

Diesel

Etienne Aiger

Boucheron

Lancaster

Xm

Police

Nicos

H. Sunglasses
Ray Ban
I. Watches

Fossil

Casio

Titan

Esprit

J. Shoes

Stop

Lee Cooper

Life

Red Tape

Picasso

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[Type text]

Business Partners:
Launched as India's premier retail chain for branded apparel and accessories,
Shoppers' Stop has systematically progressed from only branded apparel to private label
garments to home furnishings, and finally into books and music - all focused on our
customers' lifestyle requirements and aspirations. In 2000, SSL diversified into
Bookstore Retailing by acquiring 51% stake in Crossword which it later increased to
100% in 2005. SSL has also ventured into various categories like cosmetics through
MAC, mother and infant care through Mothercare, home solutions through Home Stop,
food and beverages (F&B) through Brio and Desi Caf, gaming and entertainment
through Timezone, Ladies non-apparel and accessories through its luxury format,
Arcelia, and into airport retailing through its 50:50 joint venture (JV) with the Nuance
group. SSL also has 19% stake in the hyper-mart format of HyperCity and has plans to
increase it by 51% by end of June-2010. Shopperss Stores sister store are:

Crossword Bookstores

Crossword Bookstores is a chain of largest bookstores in India with 52 branches.


Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword is
positioned as a lifestyle bookstore with their spacious, well laid out stores which
encourage customers ease in browsing through the merchandise of books, music,
stationary and toys.

Home Stop

HomeStop is premium home furnishings home concept store, which offers products
in home decor, furniture and accessories, bath accessories, bedroom furnishings,
mattresses, draperies, carpets, modular kitchens and health equipment.

Brio

Brio makes Shoppers Stop Ltd.'s foray into Food and Beverage which was a step
towards franchised coffee bars. Brio the caf bistro is designed provides
customers a place to relax, revive and reflect. It has a classic yet sophisticated
ambiance. Brio has 20 outlets in select cities. Cafe Coffee Day (CCD), the retail
division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with
Shoppers Stop to run its BRIO outlets.

Desi Cafe

Desi Caf and their operations have been taken over by Cafe Coffee Day (CCD),
the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU
with Shoppers Stop to run its Desi Cafe outlets.

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[Type text]

Hyper City

HyperCity provides customers a wide variety of range of products for shopping in a


large and modern retail environment. It offers a contemporary range of products,
sourced from both local and international markets. The product range covers: Foods and
Grocery, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports,
Toys & Fashion.

M.A.C.

M.A.C. and Shoppers Stop Ltd. entered into a non exclusive retail agreement with
cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C.
Makeup-Art Cosmetics - the professional brand of choice, is the first brand under the
Estee lauder Group of Companies portfolio to enter the Indian retail market. Currently
there are 9 M.A.C. stores operating

Arcelia

Arcelia is a new retail concept aiming at the growing accessories and cosmetics
segment, with a strong emphasis on experience and indulgence and primarily caters to
discerning women shoppers. It retails cosmetics, fragrances, fine jewelry, footwear,
handbags.

Mother Care

MotherCare and Shoppers Stop come together to introduce products for infant and
toddler care which stocks a variety of products for mother and babies, toddlers and
children till eight years of age with the focus being on style, function and safety.

Nuance Group

Nuance Group with Shoppers Stop makes an entry into airport retailing. The
alliance is marked with a joint venture with The Nuance Group AG of Switzerland, the
worlds leading airport retailer. Shopper's Stop Ltd. is handling the retail operations at
the duty free zones in international terminals. The joint venture company, called
Nuance Group (India) Private Limited. is operating outlets at the International airports
at Bengaluru and Hyderabad.

Hyper City-Argos

HyperCity-Argos and Shoppers Stop, the two retail ventures of K Raheja group had
signed a memorandum of understanding with UKs leading retail chain Home Retail
group to develop the Argos (retailer) retail format stores in India. Two years later,
Shoppers Stop Ltd has informed Bombay Stock Exchange shall wind down and
discontinue its catalogue retail operations under the Hypercity-Argos brand.

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[Type text]

Time zone

Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in
Timezone Entertainment Private Limited which is in the business of setting up and
operating Family Entertainment Centers (FECs). It has 5 outlets in Ahmedabad,
Hyderabad, Kolkata, Navi Mumbai and Mumbai.

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[Type text]

A. North

New Delhi: Andrew Ganj, Near south extension, Khel Gaon Marg, New
Delhi -110049
Jaipur: Gauravtowers2,plot no 2, Indira palace,MalviyaNagar,Jaipur302017.
Gurgaon: Mgf,MetropolitianmallMehrauli-gurgaonroad, Gurgaon,Haryana.

B. East

Kolkata10/3 Lala Lajpatrai road (Elgin road),Kolkata-700020.

C. West

Andheri (Mumbai): 211-D, S.V. road, Andheri (west), Mumbai-400058.


Chembur(Mumbai): Krushal commercial complex, M.G. Road, nr.
Chembur flyover, Mumbai -400079.
Mulund(Mumbai): Nirmal lifestyle, L.B.S marg, Mulund (w)
Bandra (Mumbai): Suburbia, linking road, Bandra (west), Mumbai 400050.
Kandivili(Mumbai):

41, Naman Plaza,opposite Thatai Bhatia Hall,Shanker lane, S.V.


road,Kandivili (west).
PuneWakdewadi,Mumbai-Pune
411005.

highway,Shivaji

nagar,Pune-

D. South

Bangalore

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Raheja point,17/2 Ashok nagar, Magrath road,Bangalore-560025


ChennaiNo.2 Harrington road,Chetput,Chennai-600031.
HyderabadOpp.
Alladin
Hyderabad -500016.

mansion,1-22-251/1,Begumpet,

[Type text]

A. Websites:
http://en.wikipedia.org/wiki/List_of_shopping_malls_in_India
http://www.citeman.com/874-demographic-segmentation/
http://www.icmrindia.org/business%20Updates/micro%20casestudies/Marketing/MCM
K0039.htm
http://www.sebi.gov.in/dp/shoppersdraft.pdf
http://www.krahejacorp.com/
http://drypen.in/branding/latest-marketing-strategies-followed-by-brands-likeshoppers-stop-and-vodafone.html
http://www.blonnet.com/2003/08/25/stories/2003082500820500.htm
http://ideasmarkit.blogspot.com/2008/05/shoppers-stop-start-something-new.html
www.shopperstop.com
http://www.stockmarketsreview.com/news/shoppers_stop_4qfy2010_performance_highl
ights_and_results_update_20100518_7917/
http://www.stockmarketsreview.com/news/shoppers_stop_4qfy2010_performance_highl
ights_and_results_update_20100518_7917/
http://goindia.about.com/od/shopping/tp/indiaregionalshopping.htm
http://india.mapsofindia.com/travel/treasure-house.html
http://goindia.about.com/od/indiafaq1/f/indiashopping.htm
http://www.reachouthyderabad.com/news/loveaajkal.htm
http://o3.indiatimes.com/envisage/archive/2008/04/29/4916423.aspx
http://www.domainb.com/companies/companies_s/Shoppers_Stop/20080424_shoppers_
stop.html
http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG184.htm
http://www.mplans.com/sample_marketing_plans/
http://www.mplans.com/
http://www.quickmba.com/marketing/plan/
http://www.knowthis.com/principles-of-marketing-tutorials/how-to-write-a-marketingplan/
http://www.morebusiness.com/templates_worksheets/bplans/printpre.brc
http://en.wikipedia.org/wiki/Marketing_plan
http://books.google.com.sa/books?id=mX9sCsIqMf8C&printsec=frontcover&dq=mark
eting+plan&source=bl&ots=ugYp2N9UjV&sig=n2dDUy77ll8rcff3i93sksYS6fg&hl=ar
&ei=3TX5S5vgGpSmOMTWgZUM&sa=X&oi=book_result&ct=result&resnum=8&ve
d=0CDUQ6AEwBw#v=onepage&q&f=false
http://saleraja.com/bangalore/shoppers-stop-the-winter-wear-exchange-offer
http://www.business-standard.com/india/news/pantaloon-shoppers-stop-see-brightyear-ahead/393861/
http://online.wsj.com/article/SB10001424052748704655004575113003717247456.html
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[Type text]

http://www.slideshare.net/jas.bhatia/shoppers-stop
http://www.thehindubusinessline.com/2007/09/25/stories/2007092551760500.htm
http://www.scribd.com/doc/19375583/Final-Report-on-Shoppers-Stop
http://www.scribd.com/doc/16223950/Shopper-Stop
http://www.walkerinfo.com/knowledge-center/walker-library/article.asp?id=628
http://www.foolonahill.com/adcosmo.html
http://www.mckinsey.com/mgi/publications/india_consumer_market/index.asp
http://www.indicus.net/Products/Home.aspx
http://www.naukrihub.com/india/retail/
http://www.naukrihub.com/india/retail/top-companies/
http://www.shoppersstop.com/index.jsp.vr
http://www.10best.com/New_Delhi,India/search.html?___p=1&search=shopper+stop
http://www.indiaretailbiz.com/blog/?s=shopper+stop
http://www.flickr.com/photos/teemus/3297663920/
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=6071
297
http://www.luxottica.it/en/media/news/archive/news_30.html
http://www.imagesfashion.com/NewsDetails.aspx?Ntype=1&id=88
http://indiwo.in.com/india/news/apparel-beautyfashion/celebrate-the-indianness-inyou/52082/1
http://saleraja.com/new-delhi/apparel/shopper-stop-upto-51-off
http://biztech2.in.com/india/casestudies/storage-solution-apps/unified-storage-solutionhelps-shoppers-stop-to-scale-rapidly/28141/0
http://www.afaqs.com/perl/news/interviews/index.html?id=303
http://www.indiaretailing.com/Ads.aspx?week=3&mon=4&year=2010
www.marketingteacher.com
http://www.youtube.com
http://www.squidoo.com/shoppersstop
http://corporate.shoppersstop.com/uploaded_files/aaffc29-4cde.pdf
http://marketingteacher.com/Lessonstore.htm#marketing_strategy
http://youthdevelopment.suite101.com/article.cfm/advertising_to_teens
http://www.influxinsights.com/blog/article/1061/advertising-works-for-uk-retailermarks-and-spencer.html
http://www.adbrands.net/uk/marksandspencer_uk.htm
http://www.guardian.co.uk/media/2006/nov/06/retail.mondaymediasection
http://www.fashionunited.co.uk/news/archive/debenhams1.htm
http://www.brandrepublic.com/News/946443/VIDEO-Debenhams-returns-TVadvertising-today/
http://www.adbrands.net/uk/debenhams_uk.htm
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[Type text]

http://adworldupdate.wordpress.com/category/indian-advertising-agencies/
http://www.americanretailsupply.com/
http://www.allbusiness.com/sales/selling-techniques-strategic-selling/4353607-1.html
http://www.namct.com/retailoutlets/
http://www.bizmove.com/general/m6h5.htm
http://www.businesspundit.com/in-store-retail-advertising-causes-as-many-woes-aswows/
http://adage.com/century/campaigns.html
http://adworldupdate.wordpress.com/2010/04/23/top-100-ad-campaigns/
http://www.frankwbaker.com/topcenturyads.htm
http://www.uwsn.org/sup.php?id=513
http://findarticles.com/p/news-articles/arizona-capitoltimes/mi_8079/is_20100427/100-campaign-ads-feature-arizona/ai_n53401100/
http://www.mediaupdate.co.za/default.aspx?IDStory=19810
http://www.irisnation.com/irisnews/uk_europe/iris-creative-work-in-2009/
http://www.fastcompany.com/blog/shawn-graham/mutual-attraction/careers-creativeinteractivity-and-other-musts-attract-young-tal
http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm
http://www.japanesestudies.org.uk/discussionpapers/2008/Lim.html
http://www.icograda.org/
http://ezinearticles.com/?Tips-on-Creative-Campaign-Ideas&id=3205061
http://www.selfserviceworld.com/article_4367_291_64.php
http://www.350.org/about/blogs/creating-creative-campaign-uk-climate-camp
http://www.blueoregon.com/2010/04/campaign-ads-get-creative/
http://www.creativeshowcase.net/
http://www.percept.com.au/advertising/wellbeing_franchise_creative.html
http://brettmacfarlane.typepad.com/lemon/2010/01/version10--starthtml0000000105-endhtml0000008268--startfragment0000002300--endfragment0000008232.html
http://adsoftheworld.com/
http://www.specialtyretailexpert.com/2009/05/01/creative-shop-local-campaign-todrive-mothers-and-fathers-day-sales/
http://www.arnoldcreative.com/html/portfolio.html
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=471
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[Type text]

http://www.creativecoalitioncampaign.org.uk/index.php?page=news
http://findarticles.com/p/articles/mi_m0FNP/is_7_40/ai_73181766/
http://www.dry.uk.com/
http://www.dmnews.com/nike-targets-youth-with-social-campaign/article/130294/
http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=16633&Title=How_bra
nds_can_target_young_consumers_through_social_media
http://www.utalkmarketing.com/
http://about.officemax.com/html/officemax_commitments.shtml
http://advertising.microsoft.com/ad-network/audience/young-adults
http://www.youthxchange.net/main/b262_advertising_youth-b.asp
http://youthdevelopment.suite101.com/article.cfm/advertising_to_teens
http://www.mobilemarketer.com/cms/news/advertising/1597.html
http://www.imediaconnection.com/content/15532.asp
http://www.jstor.org/pss/20207841
http://goquit.com/target_youth.htm
http://www.adexchanger.com/publishers/break-media/
http://www.youngcompany.com/
http://www.billboardadvertisingreport.com/advertisingonradio.php
http://www.marketingcharts.com/television/tv-still-most-effective-for-brands-targetingyouth-8974/
http://www.frankwbaker.com/foodprintads.htm
http://corporate.shoppersstop.com/uploaded_files/31c59e2-10e8.pdf
http://www.scribd.com/doc/19523087/Shoppers-Stop
http://www.thesource4ym.com/teenlingo/index.asp

B. Books, Researches, and Articles:


1. Citigroup Global Markets, Equity Research, Retailing - Department Stores (Citi),
29 January 2008
2. Fashion Retail Management: Profile of Major Retailer, a study prepared by: Ajay
KumarBhavik Gandhi, Prachi Jain, Sameera Baig, Soumya Mishra
3. Procurement for Departmental Stores, a study prepared by: Dnyaneshwari N,
Majid Khatib, Wasim Tolkar
4. Final Report on Shoppers Stop, a study prepared by: Saumya Gupta Srusti
Shrestha Panda, October 2009
5. Shoppers Stop brief study, prepared by: Akhil Agarwal
6. Procurement for Departmental Stores, a study on Shoppers Stop & Akbarallys
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7. Shoppers Stop: Building a Retail Brand, a study prepared by Indermohan Singh


8. Shopper Marketing 3.0: Unleashing the Next Wave of Value, GMA Sales
Committee
9. The Green Consumer, the Australian Center for Retail Studies, prepared by
Carla Ferraro, April 2009.
10. Marketing Management 12e, Philip Kotler & Kevin Lane Keller
11. Indian Consumers, Business of Retail, Devangshu Dutta

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