You are on page 1of 20

A SUMMER TRAINING REPORT

ON
CATCHMENT ANALYSIS AND CUSTOMER
SATISFACTION STUDY OF SHOPPERS STOP

ACKNOWLEDGEMENT

I am highly indebted , for his generous support and help, which encouraged me to do the
work. I am indebted to him, for his personal and professional interest in moulding me to
my present personality.
I am also thankful to the staff members of Shoppers Stop for their valuable help.
This acknowledgement would be incomplete without a word of thanks to my friends for
extending their co-operation and all the respondents of my survey.

2

19 Findings and Interpretation(Catchment Analysis)…………..22 Finding and Interpretation(Customer Satisfaction Study)….15 Research Methodology (Catchment Analysis)…………………19 Research Methodology (Customer Satisfaction Study).8 SWOT…………………………………………………………….……43 3 .3 Objectives of the study……………………………………….30 Recommendations…………………………………………….....…….4 Industry Profile……………………………………………….…...42 Bibliography…………………………………………………..5 Company Profile………………………………………………….INDEX Introduction……………………………………………………..…....…...

Catchment analysis involves studying the demographics like lifestyles. This helps the organization to focus most of their marketing efforts to these segments or catchments. By requesting customers to fill up questionnaires.  Identify the extent to which Shoppers Stop reaches its customers’ satisfaction level on various parameters. income levels.Introduction Catchment Analysis : Catchment Analysis is analyzing the areas and the customer profiles from attractive segments. the organization can identify if it is reaching the customers expectations and how the customer perceives its services/products. Customers Satisfaction Study: Customer Satisfaction Study helps in knowing the attitude of the customer towards the products/service of the organization. 4 . Objectives of the Study: The main objective of the study is to  Identify the attractive segments/Catchments of Shoppers Stop. age. social status.  Study in detail those segments/Catchments. Customer Satisfaction is achieved when the company manages to reach the customers expectation and the customer get value for money. genders etc.

Jubilant Group and Raheja too are investing huge capital in this sector. Bharti. one of the major challenges is investment to enable it to maintain the current growth momentum over the next five years. Coupled with this. It will see an investment of over Rs 20. Another factor which has fuelled the rapid growth of the retail sector is the growing income as seen in a study by the National Council of Applied Economic Research (NCAER) which stated that the very rich with annual income of over Rs 2. Managing Director. most of them owning small mom and pop outlets though large corporates like Reliance. Total private consumer spending has touched about Rs 18.000 have increased to 6.000 has grown from a million to 90. As Harve Clec'h." The visit of world's top retailers to this country and American retailer Wal-Mart's tie-up with leading Indian company.00. The forecast is the consumer spending will cross Rs 1.000 crore in another three years. Pantaloon.619 crore with the organized retail sector getting Rs 15.Industry Profile: With a rapidly growing middle class and Indian consumer being the youngest in the world.90. General Manager.2 million households while the consuming class with annual income in the range of Rs 45. said of the scope for retail in India "there is a lot of opportunity in this sector for us since demand of the potential consumers are not being met under the existing facilities. are indicators of the shape that the retail sector would be taking in the coming years. Carrefour India Project. With the annual growth of the organized retail sector expected to be around 36 per cent.802 crore of this spend. But. what is interesting is that most of the growth in the retail space is estimated to come from more than 1. Indian retail scene is undergoing a rapid change. Clearly.9 million households. Carrefour and Metro who too are equally keen on coming to this country.15. ITC. Tata.96. A positive indication in this direction came with top 5 .000 to Rs 215. the scene couldn't have been any brighter than this for the retail sector which is in a buoyant mood. Carrefour India and Gerard Freiszmuth.000 crore by 2010 in quality retail space across the country. All these developments have led to the rapid growth of the retail sector in the country which has 15 million retailers.000 tier-II towns and major rural hubs. several leading Indian groups are going for tie-ups with world's leading retailers like Wal-Mart.

nearly double of what is faced by their counterparts in the West and this means a loss of about Rs 9. A typical centre caters to agricultural land of about 50. Currently the chain is successfully running its business through 33 stores in five rural locations in North India. This leads to frauds such as cashier fraud. The Hariyali Kisaan Bazaar is a pioneering micro level effort. they tend to become more adventurous. the three years from 2004 to 2006 saw immense growth from Rs 28. With nearly 55 per cent of the total retail market being in rural India.000 crore in 2004 to Rs 35. who are into retail business announcing grandiose plans for investment. It is estimated that loss from shrinkage accounts for nearly three to four per cent of an Indian chain's turnover. So.7 per cent respectively during this same period. Internal shrinkages are also on the rise." said Gibson G. Keeping this in view.corporate like shoppers stop. "The top line of these companies will see huge highs and the sales volumes will constantly increase as all of them are on an expansion mode. this is a tremendous growth sector. Though government has put on hold Foreign Direct Investment (FDI) in the retail sector.3 per cent and 47.500 crore in 2006.000 farmers across India.600 crore in 2005 and Rs 47. it is little wonder that those in the business are keen on investing on shrinkage control mechanisms. There was still further good news for the retail sector as according to data brought out by Reserve Bank of India (RBI Bulletin. With growth also comes its problems and though organized retail maybe growing rapidly. Vedamani. Godrej Aadhars and ITC Choupal Sagar have branched off into the rural areas as also Tata Kisan Sansars and Naya Yug Bazaars. According to available figures on the growth of organized retail. IT solutions and training employees. companies like DCM. Currently the Indian retail market is estimated at US$300 billion. Retailers Association of India. sales of private limited companies in the wholesale and retail trade registered a growth of 11. observers feel that the retailers would devise their own methods to bring in the necessary funds.000 to 70. future group etc.000 acres and impacts on nearly 15. This of course is no where near growth rates of companies like Pantaloons and Trent at 72. January 2008). and almost half of this is at present in rural India. DCM Hariyali Kisan Bazaars. which is creating a farreaching positive impact in bringing a qualitative change and revolutionizing the farming sector in the country.000 crore. Godrej and ITC have begun focusing in the rural areas.8 per cent during 2005-06. sensors. such as installing RFIDS. 6 . Chief Executive Officer. "Since employees know the business process. while that of another leading retailer Shoppers' Stop rose by 40 per cent. The sales of Pantaloons during 2006-07 jumped by around 90 per cent. it is also now faced with the problem of fraud and shop lifting.

Raheja Corp group of companies. During the decade of the 90’s when air-conditioning. emphasis on lighting and superior customer service were considered a luxury." Ebony Retail Holdings CEO Lalit Kumar said with the company's annual budget on shrinkage control now being Rs 50 lakh. merchandise and prices. This may not lead to loss of inventory but the chain looses out to valuable advertising revenue." said IBM India business solutions executive (Retail) Sridhar Harihara Subramanian. The idea is to develop internal peer pressure among the employees. In 1991.stealing products or cutting manual bills which are not recorded. retail chains have now begun investing on employee training. Shoppers Stop catered to the aspirational needs and lifestyle requirements of the Indian consumers of today who were well-traveled. when retail in India was about shelf space. Shrinkage has an exponential effect on the bottom-line since the inventory costs are already accounted for in the books. 7 . one of the largest players in the country in the real estate development and hotel businesses. to increase their emotional attachment and ownership with the store. Shoppers Stop incorporated them as hygiene factors. well-read and a true global citizen. Faced by these problems. Another major problem being faced by the retailer is the practice of Shop-dropping where a local trader poses as customers and drop pamphlets or other promotional matter in the retailer's merchandise. "We share with them inventory figures about a particular category and the loss from any shrinkage. Shoppers Stop redefined every aspect of the shopping experience and offered the Indian consumer an international shopping experience. Company Profile: Shoppers Stop was incorporated in 1991 by the K. Shoppers Stop has many First’s to its credits such as:  First to create a store brand.

1 position in the Indian Market in the Department Store Category.  First to open its stores on Sunday’s.  First to launch a co-branded credit card in retail in the country.  We will have an environment for innovation. JDA is the software name which is used for inventory and merchandise management. 8 .  We will have an environment for development.  The obligation to dissent.  First Indian entry in the prestigious New York Art Directors Guild Awards for best campaign.  First to implement the state of the art retail ERP (enterprise resource planning) solution –JDA.  We will have an environment conducive to openness. VISION To be a Global Retailer in India and Maintain No. MISSION Shoppers Stop’s Mission Statement "NOTHING BUT THE BEST" VALUES OF SHOPPERS STOP  We will not take what is not ours.  We will have the willingness to apologize and forgive.  First retailers to go to B-schools for recruiting fresh talent. First to create a retail loyalty program.

20000 and an annual spend of Rs. Mr. Mr.e. retire by rotation at the ensuing Annual General Meeting and being eligible. Directors: In accordance with the provision of the Companies Act. 2008. who has been appointed as an Executive Director and CEO of the Company for a period of 3 years w. 2009. offer themselves for re-appointment. July 29. was appointed as an Additional Director on the Board of the Company with effect from 16 June.  We will create an environment of trust. Shahzaad Dalal. Nirvik Singh. subject to necessary approval of the Shareholders of the Company. Govind Shrikhande. B. We will respect our customer’s rights. 2006.f. Mr. Directors of the Company.  We will be socially responsible. 1956 signifying his intention to propose tie appointment of Mr. Nagesh and Mr.  We will be fair. POSITIONING Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its mission.15000.S. as a Director of the Company. 1956 and Articles of Association of the Company. A brief resume.e. vision and values. Nirvik Singh. the majority of them being families and young couples with a monthly household income above Rs. They fall between the age group of 16 years to 35 years. A 9 . is proposed to be re-appointed as an Executive Director and CEO of the Company for further period of three years w. The Company has received a notice in writing from a member of the Company under Section 257 of the Companies Act. July 29.f. expertise and details of other directorship and committee membership thereof of these directors are given in the explanatory statement annexed to the Notice convening the Eleventh Annual General Meeting Customer Profile Shoppers’ Stop’s core customers represent a strong SEC A skew.

Life .Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to. Acquisitions The Organization. Color Plus. The IGDS consists of 29 experienced retailers from all over the world. which include established stores like Selfridges (England). along with ICICI ventures also acquired the reputed bookstore. Karstadt (Germany). Kashish. Services like Dial-a-book. Shoppers’ Stop caters to every lifestyle need. This membership is restricted to one member organization per country/region. Shanghai No. Zodiac to cosmetic brands like Lakme. Range of merchandise… The stores offer a complete range of apparel and lifestyle accessories for the entire family. Matahari (Indonesia). Customer Rewards – The First Citizen Shoppers’ Stop’s customer loyalty program is called The First Citizen. Vettorio Fratini and DIY. International Affiliations Shoppers’ Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). stationery and toys. From apparel brands like Provogue. Levi’s. Crossword currently has 18 Stores. Arrow. Chambor. Fax-a-book and Email-a-book enable customers to shop from their homes. Currently. which offers the widest range of books along with CD-ROM. Shoppers’ Stop was among the first few retailers to use scanners 10 . 1 (China). The merchandise at Shoppers’ Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill. Manor (Switzerland) and Lamcy Plaza (Dubai). Scullers. Le Teint Ricci etc. Their motto: “We are responsible for the goods we sell”..large number of Non . Shoppers’ Stop has a database of over 12 lakh members who contribute to nearly 50% of the total sales of Shoppers’ Stop. C K Tang (Singapore). “Crossword”. music. Takashimaya (Japan). The IT Backbone Realizing the role of IT way back in 1991. Shoppers' Stop retails its own line of clothing namely Stop. The program offers its members an opportunity to collect points and avail of innumerable special benefits. in 2000.

Future Plans Shoppers’ Stop aims to position itself as a global retailer. With the help of the ERP. has led Shoppers’ Stop to streamline its supply chain. Today it is one of the few stores in India to have retail ERP in place. generation and fixing of price and store tags. from India Book House in partnership with ICICI Trusteeship Services Limited (A/c ICICI Emerging Sectors Fund). Implemented JDA Retail ERP (a global leader in retail ERP packages).  In 2000.  In 1994. open new stores faster and get information about merchandise and customers online.  In 1999. one of India's leading book retailing chain. they are able to replicate stores. purchase verification and inventory buildup. The company has developed process manuals for each part of the logistics chain. These modules include vendor management. purchase order management. 11 . Supply Chain Management Understanding the importance of distribution and logistics in ensuring the merchandise is available on the shop floors.  In 2001. Implemented Warehousing Module of JDA. they are adding 4 to 5 new stores every year. Currently. stock receiving systems. retail practices and sales to India. The company intends to bring the world’s best retail technology. Placed equity with external investors to raise Rs 600 mn  Acquired Crossword. dispatch of stocks to the retail floor and forwarding of bills for payment.and barcodes and completely computerize its operations. Auto Replenishment and Auto Purchase Order system and business to business connectivity and Profit Linked Reward System (PLRS) introduced (for all the employees). First Citizen Club loyalty card launched. which is now being integrated with Oracle Financials and the Arthur Planning System. the best retail planning system in the world. ACHIEVEMENTS OF SHOPPERS STOP AWARDS AND RECOGNITION: shoppers stop has been conferred with the following awards and recognitions during the following years. which reduces the turnaround time in taking quick decision.

 Received Top retailer 2004 India Bronze award given by Retail  Shoppers stop got the 'Retail Destination of the Year' at the Image Fashion Forum  In the year 2007 shoppers stop got the 'Most Admired Retailer of the Year' for technology applications at Image Retail Award.848 sq ft Received Super brand status for 2003 and 2004 Received Images Retail award for the most favored retail destination of the year . 'Departmental Store of the year' at Star Retailer Award.  Shopper stop got the 'Advertisement Campaign of the year' CMAI APEX Awards.  Shoppers stop got ‘the Emerging Market Retailer of the Year Award. In 2003. 2004 Received the Organization With Innovative HR Practices award at the HR Excellence Awards organized by MidDay.  In 2007 shoppers stop Signed a 50:50 Joint Venture with the Nuance Group for Airport Retailing Signed an MOU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing  Shoppers stop Awarded by Images retailer of India in 2008. Received various industry awards from CMAI (including Best Retailer of the Year) and from Nasscom (Best IT Practice in Retail Category) and also Signed Austin Reed license for men's outerwear for India exclusively. Big Break & Daks . at World Retail Congress. Spain. Barcelona.  In 2004 taking total retail area to 752.November 2004. 12 .September.

first citizen contributes more than 50% in the total sale of the company. Shoppers stop benchmarked their compensation and benefits through consultants. Company had over 12. and working 247.) to bridge them. which helps their employees to access them whenever required helping company achieve consistency in their decision making process across the chain. with the best in the industry to pay their associates accordingly.00. company also have a Manual of Authority. Company’s SOPS are available on its Intranet. 2008.000 square feet handling over 400.SWOT ANALYSIS OF SHOPPERS STOP STRENGTHS: * First Citizens:Shoppers stop First citizen members have been a driving force behind the growth of the Company. outlining the framework of financial and legal decision making authority at all levels in the Company. job rotation etc.000 First Citizen members as on 30th sep. 13 . new stores to their day to day operations. right from planning and setting up of. * Strong distribution and logistics network and supply chain:Shoppers stop have created a strong distribution and logistics network. First Citizens will continue to drive the company’s growth by increased average expenditure in their stores which will be aided by targeted promotional activities. * Strong focus on Systems & Processes:Shoppers stop have a strong focus on systems and processes. right up to the Customer Care Associate & MD and the Customer Care Associate & CEO.e. * Enhancing the human capital:Shoppers stop periodically assess their CCAs across all levels through assessment centers to identify competency gaps and use development inputs (i. shoppers stop have been able to capture its learning’s over the years and use them to create Standard Operating Procedures ('SOPS') for each of its activities. with their four Distribution Centers covering more than 300.000 SKUs per year. training.

Shoppers stop has lost some management personnel and tried to stem the rise of attrition at the front end.(the act of accomplishing the aim) I believe the key risk to the company’s growth is execution risk. Nagesh. With continued focus on service Company's stores continue to post increasing footfalls and conversion rates despite the mushrooming of shopping malls. and strong business growth.* Strong understanding of the real estate business:Shoppers stop benefit from their Promoters' association with the real estate business and their relationships with developers. * Employee retention:Modern retail is a new industry in India. Price is not essentially a differentiator for the shoppers stop. an increase in retail rentals. 14 . which is only now gaining growth momentum because of the entry of new companies. I believe that the CEOs of each business under the guidance of the MD will be the key to successful execution and expansion. and the case is no different for the Company. * High retail lease rentals:Rent is one of the largest components in a retail business' fixed costs. Managing Director. And low rentals due to long lease contracts. * WEAKNESS (Risks and Concerns): - * Execution: . This is the differentiation that shoppers stop continues to bank on. Competition for reasonably experienced personnel has led to poaching between retailers. Customers were drawn by the shopping experience. headed by B. * Delay in store delivery:Majority of the new stores planned are in malls and any delays in the construction of the malls will delay the shoppers stop’s retail expansion plan. I think that Company believes that this problem will persist until the industry reaches a steady growth phase. hypermarkets and specialty stores.S. * Management Strength:Shoppers stop has a strong and well-established management team. Shoppers stop has a strong execution team and I believe it has the capability to execute varied retail formats. Company imparts special training to its employees to ensure that service is not compromised on. * Shopping Experience:Shoppers stop pioneered the departmental store format in the Indian market when the Indian consumer was deprived of choice. shopping experience is. which have helped shoppers stop to acquire preferred properties at competitive rates. Strong economic growth in the past three years in India has led to a boom in real estate prices and with it.

I believe that the scope for hypermarkets in India is immense. * Preferred partner for foreign players:Shoppers stop believes that by virtue of its presence across all lifestyle categories in the departmental format. airport retailing by tying up with The Naance Group AG of Switzerland. Home Stop which retails hard and soft furnishings. OPPORTUNITIES: - * Geographical reach:Shoppers stop continues to increase its Pan-India footprint. which retails high end non apparel arid accessories for ladies. Renovated stores also go through a gestation cycle before they ramp up to original performance levels. which is a high growth segment by acquiring a 19% stake in Hypercity. in its constant endeavor to capture wallet share. But the Best' to its customers y shoppers stop needs to renovate its older stores. has diversified into multiple formats viz. Crossword for books.* Store renovations:In its constant attempt to deliver 'Nothing. The Company has plans to increase the number of departmental stores to 41 in the next 3 years. and Arcelia. In addition the company will also continue to expand its various other formats. it's strong brand value and its presence in the books and music segment. THREATS:- 15 . The store run by Hypercity has shown very impressive performance in the year gone by. Chief amongst these levies is Service Tax on lease rentals. and F&B formats comprising Brio and Desi Cafe. etc. * Government levies:Retail is currently not viewed as an industry in India. These renovations have a substantial impact on cash flows. it is best placed to bring in international brands into the country. music and stationery. * Hypercity:An entry into mixed retail Company has entered the hypermarket segment. * Format diversification: Shoppers stop. there by enriching the product bouquet for its customers and in turn increasing opportunities to product diversification and profit enhancement. Hence there are certain levies on the business which are proving to be a very large burden as there are no modes for the industry to recover or pass on these levies.

16 . Research Methodology: Catchment Analysis: For Catchment analysis I relied on my customer satisfaction survey to know the places from where Shoppers Stop gets most of its customers. I collected data about whether the area is a residential area or a commercial area or a combination of both. location. Company expects many new entrants thus sharpening competition. If it was a commercial area. ambiance. product quality. service by employees. The patrons were asked about their opinions on parameters like on parameters like layout. They can be contacted by Shoppers Stop for carrying out promotional activities in those localities about any offers or sale. I made a tabular questioner asking the patrons to fill in the option they thought suited the question best according to them. product variety. price. ease of reaching the store. If it was a residential area what is the social status of people staying in those localities. brand variety. Then by inquiring about the flat rates in those areas I came to a rough estimate of the social class of people of that area. And also the contact details of secretaries or managers of those localities. I then collected data about competition for Shoppers Stop in that particular area and also other data like restaurants and other entertainment sources. what kind of offices do those places include. * Competitive rivalry in the industry:There is intense rivalry among leading national retailers for new locations and quality real estate. billing etc. Customer Satisfaction Survey: For customer satisfaction survey. (If possible I inquire about their work details.* Threat of new entrants:With India becoming an attractive retail market and the gradual increase in foreign participation in the sector. But getting this kind of information if tough as no one wants to share these kinds of information). signage. I collected data from a few areas and intend to cover more areas. * Economic slowdown:Retail is the 'last mile' and the impact of economic slowdown will be seeing a direct manifestation in lowered consumer spend.

Questionnaire: Age Group Below 18 yrs 18-25 yrs 25-35yrs 35-45 yrs Above 45 yrs How would you rate your shopping experience at Shoppers Stop? Excellent Very Good good Average Poor How would you rate the quality of products? Excellent Very Good Good Average Poor How would you rate the product display? Excellent Very Good Good Average Poor How would you rate the variety of product range? Excellent Very Good Good Average Poor How would you rate the variety of brands available? Excellent Very Good Good Average Poor How would you rate the pricing? Affordable Decent Average Expensive Very Expensive How would you rate the shopping convenience? 17 .

Cleanliness) Excellent Very Good Good Average Poor How would you rate the employee service? (Courteous. This leads to delay and frustration for waiting customers. But Shoppers Stop scores less in pricing and billing process. the number of cashiers is inadequate to ensure smooth billing. ease of finding what you need etc) Excellent Very Good Good Average Poor How would you rate the ambience? ( Lighting. shopping convenience and overall experience with about 80% of the customers showing more than satisfactory delivery by shoppers stop.(Signage. effective) Excellent Very Good Good Average Poor How would you rate the billing process? Excellent Very Good Good Average Poor Location: Summary: The survey shows that most of the customers are below the age of 35 and a small percent of people are middle aged. music. During evenings in the weekdays and weekends. Environment. ambience. product quality. space to move. helpful. brand variety. 18 . employee service. product merchandising. Shoppers Stop manages to score well in parameter like products variety.

RECCOMENDATIONS:  During weekdays.  Shoppers Stop can have a short duration of discount sales exclusively for First Citizen members to encourage more customers to enroll for first citizen membership. and extra billing counter can be set up to handle long queues. Shoppers Stop can have fewer cashiers in the mornings and afternoons and more cashiers in the evenings  During weekends. BIBLIOGRAPGY: 19 . in the peak hours.  Shoppers Stop can bring up at least one expensive brand to cater to customers with lower budgets.

Marketing management – Philip Kotler Grey Armstrong Services Marketing . Zeithaml Mary Jo Bitner (Tata McGraw Hill) Marketing Research .Valarie A.Aditya Pandit Charles Brown 20 .