Professional Documents
Culture Documents
Batch 2019-21
Submitted by:
Group 3 – RM Batch 2
3 Merchandize
4 Store Layout
6 Customer Accompaniment
10 Competitor Analysis
11 Gap Analysis
12 Pricing Policy
14 Catchment Area
15 Planogram
1. ABOUT THE COMPANY
Croma was launched in 2006, and at that time it was the first one-of-its-kind large format
specialist retail store in India selling multi-brand digital gadgets and catering to home electronic
needs of people. There are a total of over 200 brands in 170 Croma stores in 32 cities in India
that are catering to over 10 million customers, and these stores are run by Infiniti Retail, a wholly
owned subsidiary of Tata Sons, the holding company of the Tata Group.
Since its launch, Croma has successfully expanded its business into Croma Zip Stores, Croma
Kiosks as well as an online platform. Its Zip stores are around 1,000 - 2,000 sq. ft. in size,
whereas the full format stores are usually spread across 10,000 sq. ft. For its store location, the
company generally prefers malls over high streets in the market owing to the availability of
larger area and catchment which consists mostly of affluent people. However, for its Zip stores,
which comes under the pick and go category, Croma prefers to have an airport location. Most of
their stores are in major Indian cities, however, over the past few years the company has opened
up more stores in Tier 2 and Tier 3 cities.
The company gives its customers a seamless ‘omni-channel’ shopping experience by uniting the
varying customer touch-points i.e. a full-fledged Croma Store and the Online Electronics Shop,
i.e. the website. By using Croma’s omni-channel services, a customer can order their favourite
electronics online and pick it up from the nearest store. There is a virtual aisle feature on its
website too and by using this, customers can place their order of the gadget which is not
available at the store; but available online and get it delivered to their doorstep. There is also an
option of express shipping feature which allows the customers to get the product delivered to
their doorstep within 3 hours.
Croma has over 6000 products, which includes digital gadgets like Mobile Phones, Laptops,
Tablets or Entertainment Solutions like Televisions, Sound Bars & Home Theatres or Cameras &
Accessories for photography enthusiasts or Home Appliances like Air Conditioners,
Refrigerators, Washing Machines or Cooking & Kitchen Appliances like Air Fryers, Soup
Makers, Cooktops, Dishwashers. In 2008, Croma launched its own label products which includes
almost 500+ products. Croma also offers Croma Privileges to its customers i.e. a Gift Card
solution that gives customers the freedom of choice, with Gift Cards and e-Gift Vouchers.
Croma also provides its customers the option of multiple payment gateways so that they can
choose to pay via their preferred payment option. A customer could choose from any payment
mode like credit or debit cards, payment wallets and cash-on-delivery. Croma also allows its
customers to avail of various Easy EMI options on cards. Additionally, Croma encourages
purchase of Extended Warranty among its customers, an insurance that safeguards their product
against any future mishaps. Croma also offers its customers an Assured Lifetime Service, an
assurance of after sales service – which can be simply availed by walking into the nearest Croma
store or calling up their customer care number.
In 2018, the company launched its 2,000 sq. ft stores called Gadgets of Desire, which is a
premium retail store hosting a curated range of innovative products for its digital savvy and
gadget-loving customers. The best part about these stores is that it can also function as service
centres.
2. CROMA EMPLOYEES AND BRAND STAFF
3. MERCHANDIZE
Mobile Accessories Mobile covers, Adapter, Data cable, Smart High to Low
watch, Power-bank
Refrigerator:
Single door 13
Double door 50
Side by side 8
- Samsung, LG, Voltas, Liebherr
AC:
Window AC 28
Split AC 45
- Hitachi, Samsung, LG, Voltas, Croma, O
General, Daikin
Air purifier 20
- Philips, Blue Star, Honeywell, Voltas,
Aquaguard, Diason
RO 25
- Pure It, Aquaguard, Kent, LG, Havells,
LivPure
Average time spent by prospective customers in the store with an intent of purchase is a
prominent Key Performance Indicator in organized retail industry. It indicates promising
opportunities to increase purchase volume & value. Researchers suggest, with every 1% increase
in browsing time, there is corresponding increase of 1.3% in sales. Retailers employ dwell time
metrics to capitalize store’s maximum potential.
Implications of prolonged dwell time can be both positive & negative. The customers are either
captivated by the assortment of merchandise available at the store or they fixated on purchase of
target products which restrict the purchase of additional products until the primary purpose is
fulfilled.
Observational Study
Customer Dwell Time (in minutes) for 25 respondents at Croma across various departments
Observations suggest that customer dwell time differed for respondents across departments of
merchandise based on perception of product value in terms of instrumental & terminal
performance. Customer dwell time was observed to peak with merchandise involving higher
involvement, for example, Laptops, Television Sets, Home-Theatres, etc. While lower
involvement products with repeat purchases such as Mobile Phones, Speakers, Juicers, etc.
observed lower dwell time.
6. CUSTOMER ACCOMPANIMENT
Observational Study
Cu
stomer Accompaniment for 25 respondents at Croma across various departments
Observations suggest that customer accompaniment varied across departments for respondents
based on individual or shared instrumental use of the product. For example, for products
involving distributed or shared product usage like Television Sets, Washing Machine,
Microwave, etc. were purchased while accompanied by family or friends. Also, high monetary &
perceived value could be attributed to the pattern of observed accompaniment. Whereas products
of individual usage such as Mobile Phones, Headphones, etc. were purchased in solitary fashion.
Knowledge of product features & specifications was observed to be a deciding factor for
accompaniment with functional products such as Laptops, Refrigerators, etc.
Common elements of in-store assistance include greetings at the entrance, ease & convenience of
product location, aiding decision-making with provision of product knowledge & suggestion of
alternatives. Sales assistance is also expected to drive the customers to a hassle-free expedited
checkout. It is also observed to help with maintenance of controlled & sales-conducive
environments in the store during rush hours. Immediate gratification of customer queries and
personalized attention can be ensured with adequate in-store sales staff.
Observational Study
Per
centage of Reliance of 23 respondents on various categories of Sales Assistance
Observation suggests majority of respondents marked opinions & suggestions of In-store Sales
Assistance reliable. Whereas a minority of respondents affirmed with reliability of brand specific
sales personnel at the store. It may be attributed to the perception of provision of unbiased
suggestions by in-store personnel as opposed to brand personnel promoting products.
Impulse purchases, which are unplanned and based on terminal performance of the product can
be milked by the retailer with provision of better external environment. It includes store
atmospherics such as ambience, lighting, sales assistance, store layout, etc.
Observational Study
Perc
entage Preference of 25 respondents for modes of Information Search - Electronic Merchandise
Observation suggests majority of respondents employed Online Portals for information search of
electronic appliances which was followed by positive word of mouth of acquaintances. Retailers
can incorporate advertising promotional schemes & discounts on frequently traversed media to
drive traffic and increase conversion rates.
Purchase Decision-making Time (in minutes) for 25 respondents at Croma for various
departments
Observations suggest that purchase decision making time differed for respondents based on the
functional importance of purchase. It was observed that prolonged decision making, if not
intervened by the store personnel, may result in unsuccessful conversion of sales. Customers
engage with extensive decision-making for high ticket & high value items. Retailers can provide
in-store assistance to drive sales towards conversion.
Retail market space in India is plagued with multiple players employing competitive pricing,
promotions, discounts & offers. Within such an aggressive environment, Accessory assistance
provided by retailers act as distinguishing grounds and differentiating factors. Wide assortment
of merchandise, multiple SKUs, extension of credit, assurance of replacement, etc. Retailers
must distinguish service offerings into buckets of value add and non-value add activities and
identify activities, despite being non-value add, are necessary for sales.
Observational Study
Per
centage Preference of 25 respondents for Accessory Services by Electronic Specialty Store
Observation suggests the majority of respondents demanded accessory services that ensured
warranty or guarantee cover for electronic merchandise sold at the specialty store like Croma.
Followed by which, Installation services, exchange service & scrap buy were preferred by
customers to aid the usage and disposal of electronic items. Majority of respondents preferred
availability of home-delivery services for heavy and spatially large merchandise. Significant
minority of respondents preferred presence of in-store finance desk to assess credit and
instalment options available.
Percentage Preference of 25 respondents for an In-Store Finance desk at Electronic Specialty
Store
Further assessing the minority, 52% of respondents suggested use of a Finance desk for purchase
of high-ticket items such as Television Sets, Refrigerators, Washing Machine, Laptops, etc.
Within the competitive space of electronic retail, prevalence of zero-down payment, monthly
instalment schemes are significant. Hence, retailers must ensure availability of several accessory
services to deliver maximum value to customers.
1. Vijay Sales - It is an Indian electronics retail chain, which was founded in 1967 as a small
TV showroom. Today, it is one of the leading chains of retailers with more than 100 stores
and 3500+ products to choose from. It is a subsidiary of TMC Electronics, which is a
privately held company. It caters to customers of all budgets and preferences. The company
provides free shipping for all the products and also an option where customers can make
purchases in easy EMIs.
Following observations were made via an online survey with the customers from Croma and
Reliance digital:
The corresponding scores on each attribute is arranged from the highest positive gap in the
attribute to the highest negative gap in the attribute.
Croma introduces merchandise with promotional pricing (festive) agenda, offering products at
10-15% discount on economy as well as premium products. Along with promotions, to battle
predation threats posed by players in the Indian Market such as Vijay Sales, Reliance Digital,
etc. it undertakes competitive pricing strategy alongside. Prices are kept relevant to the market
with an aim to penetrate the market and develop a loyal customer base.
Croma, as a retail organization focuses on increasing volume of sales to achieve higher revenues.
Value pricing strategy is incorporated with listing of products with high demand at low down
payments and pocket-friendly equated monthly Installments (EMIs).
Dynamic Pricing strategy is applied to leverage the surge of demand related to merchandising
trending in the market. For example, Game of Phones launched to reap profits through sale of
multiple phone brands under one shelter.
Bundling serves fruitfully to the consumer as well as Croma as a retailer. Higher value is offered
as customers get the bundled product for free or lowered price points. At the same time, retailers
compensate for the lost profits for products with least demand on coupling with products with
comparatively higher demand.
13. PROMOTION EMPLOYED BY CROMA (INFINITI RETAIL)
BTL promotions are offered in the form of discount coupons, cash-back offers, exchange offers.
Gifting and other bundling promotions are employed to stay relevant among competitors during
festive seasons such as Holi, Diwali, and other national holidays. ATL promotions are offered in
the form of advertisements on print, audio, visual and digital media.
Croma brands itself promotes the essence of its retail service as ‘We help you buy’. Examples of
some attractive brand promotions by Croma include ‘Extended Warranty – Smile Club’ targeted
towards extension of product life warranties, ‘Bak 2 Skool’ targeted towards student specific
electronics.
Involvement of prominent personalities such as Vidya Balan, Sanjeev Kapoor with the retailer
boosts its brand equity. Prompt customer assistance through telephonic conversations was
improved with introduction of ‘Sunset’ service which aimed at provision of physical assistance
on requests registered prior to 12 noon.
Croma has developed a strong hold over Indian retail market with its omni-channel strategy, with
intense focus on its online presence. Social media activation attempts, sale of mass-reach
products such as gift cards, sponsorships, etc. have further promoted the retailer.
14. CATCHMENT AREA
Inference:
2 entrances make it easy for customer to enter the store.
The store has a very well defined and clean arrangement for its product assortment
Each Assortment has its own dedicated displays to assess the look and feel of the product
The inside storage room appears to be well placed out of the reach of customers
The store provides for easy flow of customer among its product assortment there by
enabling customers to see and try products
Billing counter is strategically placed at the back end to enable customers into hedonic
purchase after checking out or try out few products they might have missed.