Project on Marketing Plan1[1]

8/14/2019 Project on Marketing Plan1[1]

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Project on Marketing Plan Of Shoppers Stop Ltd

Submitted By :-

Submitted to: -


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Index

1. The Vision & Mission Statement of the Company.

2. Background of the category/brand

2.1 Market Growth Rate

2.2 Volume and Value Rates

2.3 Zone wise break up of Sales

2.4 Main Market contributing 80% to Sales/Value

2.5 Product wise sales, value, volume

2.6 Fastest selling products and where we stand (Matrix Form will be

better)

2.7 Seasonality if any2.8 Key Success Factors in the line of Business

3. SWOT Analysis of the category/brand

4. Market forecast- volume & value wise

5. Competition Analysis

6. Marketing Objectives-short term and medium term

7. Marketing Strategy overall including Brand Positioning including

Assumptions

8. Product objectives and strategy

9. Distribution Objectives and strategy10. Promotion Objectives and strategy

11. Pricing Objectives and strategy

12. Marketing Control and matrices for evaluation-what frequency, by

whom?


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13. Responsibility distribution within the organization for meeting major

objectives

14. Profit and Loss Account

15. Executive Summary


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1. The Vision & Mission Statement of Shoppers Stop Ltd

India is flourishing market for Retail sector. People today are more

interested in investing their money in the IPOs of this business. Shoppers Stop Ltd

established its first store in Andheri (Mumbai) in the year 1991 is considered as one of

the pioneers in the business. Currently it operates stores in Bangalore, Hyderabad,

Lucknow, Gaziabad, Jaipur, Delhi, Chennai, Mumbai, Pune, Gurgaon, Kolkata and

Noida.

The Company has a mission statement and a vision statement to achieve

its long-term goals.

The Vision Statement and Mission Statement of Shoppers Stop Ltd.

The Vision statementof Shoppers Stop Ltd is To be a global retailer in

India and maintain its No.1 position in the Indian market in the Department Store

category.

TheMission Statement of Shoppers Stop Ltd is Nothing but the Best.

They believe in recruiting the best staff, the best technology, and the best service levels

for the customers.

Shoppers Stop wants to be a global retailer and also at the same time

wants to maintain the No.1 position that it has acquired during all these years. This is its

long-term vision. Now how to achieve this there is a mission statement, which says

Nothing but the Best. This signifies that the management believes in selecting the best

lot of staff & best technology, so as to provide the best & quick possible service to the

customers.

The punch line of the Shoppers Stop along with the logo says Shopping,

and Beyond which signifies that Shoppers Stop gives you much more than mere

shopping. Shopping today can be done at every other shop or store, then why the


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customers have to come to Shoppers Stop to purchase which are available at local

markets and that too at quiet cheap rates. The customers come to Shoppers Stop to feel

the experience, the ambience, the space that they get, the variety they get and so on.

Shoppers Stop Ltd has acquired this image in the minds of the customers

since its establishment only due to its quick and prompt service levels that their staff

provides to their customers.

To achieve this vision and to accomplish this mission, Shoppers Stop also

has certain values they abide and which help them in achieving ourmission and vision.

1) We shall not take what is not ours.

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

3) We shall have an environment conducive to openness.

4) We shall believe in innovation.

5) We shall have an environment conducive to development.

6) We shall have the willingness to apologize and/or forgive.

7) We shall respect our customers' rights.

8) The value of trust.9) We shall be fair.


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2. Background of the category/brand

Shoppers' StopLtd. is a chain of retail stores in India owned by K Rajeha Corp. It was

started in 1991 for its first store in Andheri in Mumbai on S.V. Road. Currently itoperates stores in Bangalore, Hyderabad, Lucknow, Gaziabad, Jaipur, Delhi, Chennai,

Mumbai (Andheri, Juhu, Malad, Bandra, Chembur, Kandivli, Mulund), Pune, Gurgaon,

Kolkata and Noida.

Shoppers Stop (Andheri)

The Positioning Of Shoppers Stop Ltd.

Shoppers Stop is positioned as a family store delivering a complete shopping experiencedefined by its mission, vision and values. It is basically positioned as a youth store in the

market.The customers of Shoppers Stop Ltd. fall between the age group of 16 years to35 years, the majority of them being families and young couples with a monthly

household income above Rs. 20000 and an annual spend of Rs. 15000.

The other formats of K Raheja groups (owners of Shoppers Stop)

The K Raheja group has also entered into other formats of retailing apart from

Departmental Stores (Shoppers Stop Ltd). They have taken over a specialty store named

Crossword which is a known book retailer in India.


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CROSSWORD

It has also inaugurated an exclusive Home Collection Store, which is called Home

Stop. Its kind of premium home concept store from Rahejas is the destination to

transform the dream house into a reality. Presently in Bangalore & Mumbai spread

over 30000 sq.ft each, HOME STOP offers a choicest range of home products to

give house that unique look and feel which an individual always wants.

HOME STOP

It has also opened a Hypermarket called HyperCITY. HyperCITY hasevery thing

Available at one place from all the categories like food products, garments, furniture,

groceries, crockery, and other daily usage products for a human being. Spread across

around 120000 sq.ft, it caters to all income groups.
http://images.google.co.in/imgres?imgurl=http://www.retailyatra.com/Images/44947_SS-homestoppic.jpg&imgrefurl=http://www.retailyatra.com/PageSummary.asp%3FCat_Id%3D1%26SubCat_ID%3D44&h=480&w=640&sz=16&hl=en&start=2&um=1&tbnid=If06DUuw1r-H_M:&tbnh=103&tbnw=137&prev=/images%3Fq%3DHomeStop%26ndsp%3D18%26svnum%3D10%26um%3D1%26hl%3Den%26sa%3DN


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HyperCITY (Malad)

Rahejas also own a mall called In Orbit Mall which is a mall spread across more

than 225000 sq.ft has Shoppers Stop, with its closest competitors Lifestyles and also

some exclusive brand outlets along with Fame Adlabs and the food court.

In Orbit Mall

2.1: Market Growth Rate

The overall market as per the financial year ended 2006-07 is growing at 30% where

as Shoppers Stop Ltd has only grown by 21% approx, which is far below the market

growth rate. The company is expanding at an alarming rate to overcome this. There

are around 22 outlets in different cities of India today. This is also because, Shoppers

Stop is not marketing its in-house brands as it should be, whereas the other national

brands are going on advertising their respective brands in their campaign

successfully. If Shoppers Stop takes part in active advertising of its in-house brands


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2.3 Zone wise Sales Break-up

Shoppers Stop Ltd has divided the whole territory of India into 4 major zones

West Zone,

North Zone,

South Zone and

East Zone

Zone Sales % Zonewise

(in Millions)

West 3329 37%

North 2249 25%

South 2789 31%

East 630 7%

Total 8997

Zone Wise Sales

We

No

So

Ea

2.4 Main markets contributing to 80% of Sales Value


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2.5 Product wise Sales, Value, Volume


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As said earlier, the Sales per square feet have increased by 5% over last year and

currently is at Rs.7, 973. It is calculated on the built up area leaving the aisle and other

movement areas of the customer.

Sale per square feet comparisons for the last 5 years.

Year Sales per sq/ft

2002-03 6328

2003-04 6898

2004-05 6903

2005-06 7576

2006-07 7973

Sales per sq/ft

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2002-03 2003-04 2004-05 2005-06 2006-07

Year

Sales

persq/f

Sales per sq

Source : Annual Report (SSL) 2006-07

3. SWOT Analysis


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Strengths

1)Service Levels: Shoppers Stop Ltd has always set high standards in services offeredby the staff to the Customers. The Customers are treated as Kings in the true sense. Even

the competitors have the merchandise that is present in Shoppers Stop Ltd, then what is

the reason for customers coming back to Shoppers Stop repeatedly? The reason is warm

ambience & high service levels that is offered by Shoppers Stop. Its the service that has

made the difference.

2) Loyalty Programme: The First Citizens is a loyalty club of Shoppers Stop.Its the

first citizens due to whom the store is on an expansion spree. These first citizens have

made Shoppers Stop realize that they can deliver any service on time. The First Citizens

are the real force behind the Shoppers Stop. Today Shoppers Stop has approx 8,00,000

first citizens all over the country.

3) Technology: Shoppers Stop had mplemented a new technology called JDA Retail

ERP (JD Armstrong is one of the best billing and backend technology used all over the

world) since the year 1999. The company believes that, investments in systems and

technology offer the company the vital edge to compete with the competitors, and also

control the performance year after year for the company.

4) Process: The Company has made a process guide called Standard Operating

Procedure. Every store according to the company is supposed to follow certain

procedures or process very strongly in order to maintain similarity between the stores.

The processes in the book are not rigid but are flexible. If a store head feels that a

particular process can not be used or implemented in his store, he can inform the process

team head and not follow the same. Similarly if the store head feels that there is a need to

include such and such process in the guide then he/she can also talk to the process team

head and implement the same.


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5) The Supply Chain Management of Shoppers Stop Ltd: The Supply chain

Management of Shoppers Stop Ltd has also come a long way. During the initial stages of

the company, the managers had to order for the stocks and then the distribution center

would send the merchandise which is the fast mover. But today the scenario has changed

completely largely due to systems and technology adopted by Shoppers Stop Ltd. Stocks

consists of SKUs (Stock Keeping Unit) numbers. Every item has different SKU. Once the

particular item is sold at Delhi Store, and the cashier punches the SKU in the system it

automatically reflects in the Distribution Center system as sold item. So then it can be

replenished as soon as possible.

Weakness

1) Attrition Rate: In India only approximately 3 per cent of Retail is organized despite

of that Retail is Indias largest industry which is expected to a whooping growth of

around 10 per cent in 2010, accounting for over 10 per cent of the countrys GDP and

around eight per cent of the employment.In a very short span of time, India has gained a

lot of popularity in the field of retail sector. Every day there are new companies entering

into the market looking at the growth prospects. Every new entrant requires certain

experienced employees to run in the market. Shoppers Stop has lost a good number of

such experienced employees in last 5-6 years.

2) Risk Taking: The Company believes in taking calculated risks, hence they are

expanding at a slower rate as compared to the competitors. Pantaloons (Mr. Kishor

Biyani) believes in risk taking, this is a reason why he is expanding at an alarming rate.

But the management in Shoppers Stop has always tried to play slow and safe game with

minimum risk factor involved.

3)Delay in store opening:Now the company has realized that expansion will be the key

if at all it wants to stay in business. It has announced to open 30 more big budget stores

all over the country excluding 22 stores currently operating in different corners of India.


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But the issue now is that it has tied up with various malls, and will have to wait until the

mall starts operating.

4) Stores opened very near to each other: The Company in expansion spree has bought

out or rented land wherever possible. For instance Kandivali Store was doing reasonably

good business until and unless Malad In orbit Store opened. The distance to be covered is

merely 10-20 minutes. In Malad, the store is spread across 65000 sq.ft. Obviously it has a

lot more variety in each and every category as compared to Kandivali. As a result the

Kandivali store customer entry has dropped drastically and so has the business.

5) High Rents paid by Company: The real estateprices have really shot up in the past

decade, as a result of which the company has to pay a heavy rent on the leased property.

As a result of this the company takes relatively longer time in doing a break-even for the

store. This may be a big cause of concern for the company in the time to come.

Opportunities

1) Expansion Plans: The Company is present in 22 different locations as of now

including smaller cities as well as metropolitan cities. The company has announced that

in the near future they are planning to open 30 more stores in the country. The expansion

plans are looking very ambitious and very good for the companys growth prospects. This

will also increase the coverage spread for the company through out the country.

2) Other Formats: In the mean while the company has also launched other formats like

Hyper CITY which is a hyper market catering to all classes of customers, it has taken over

CROSSWORD the mega book store or the specialty store for the readers, music lovers and

movie buffs. The product portfolio comprises of books, stationery, Audio CDs, VCDs and

DVDs. It has its own shopping Mall called In Orbit Mall. It has started a new Home

Collection store as a complete home solution store which offers designs and style, quality

and convenience which is called HOME STOP. Its kind of premium home concept store

from Rahejas is the destination to transform the dream house into a reality. Presently in


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Market Forecast

The retail market is growing at an alarming rate year after year, to match up with the

same the company needs aggressive advertising campaign. Last year when the industry

had grown by approx 30%, the company had just grown by 21% which cannot be called

as a satisfactory result. The company will have to constantly monitor its conversion rate

(converting customers into buyers) and cash memo size (per person purchase). Both these

components are very vital and needs to increase to see better sales happening.

5. Competition Analysis


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The Major competitors for Shoppers Stop are Pantaloons, Lifestyles and Westside (to a

certain extent). Let us see the market share for each of the store in the departmental store

category. Pantaloons have the largest market share with approx 41%. Shoppers Stop Ltd.

is the follower with approx 32%. Then comes Lifestyle Stores with around 17% and then

follows the West side stores of Trent (TATAs) with approx 9% to 10% of market share.

Market Share Grap

0% 10% 20% 30% 40% 50%

Pantaloons

Shoppers' Stop

Lifestyle

Westside

Stores

% Shar

Seri

6) Marketing Objectives-Short term and Medium term

Short Term Marketing objectives


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Short term market objectives for the company as of now is to increase the

a) Conversion rate (converting customers into buyers)

b) Cash memo size (per person purchase)

c) Sales per square feet.

These three things are very important for the growth of bottom line (profits) year after

year. These three things are also essential and prove to be decisive factor to achieve

break even point for each and every store opened in the country. The question arises

how to do it? The answer is

1) Select the best front end staff through rigorous recruitment process.

2) Get in the best quality and priced merchandise for the customers.

3) Get in the best managers to see that every thing is managed properly in the store.

4) Do a cost cutting wherever necessary.

5) Provide perfect training programs before introducing the front end staff to the

floor from time to time.

6) Attach the new coming CCAs to Old timers who have spent some time on the

floor for practical training (Mentor & Mentee).

7) Put your best performing associates in the best performing sections

8) To enroll as many first citizens as possible, as these are the customers who would

remain loyal to us for a long time to come.

9) To promote more and more in house brands, as the margins achieved in in-house

brands are mush higher as compared to national brands, besides the national

brands are already advertised by their own companies.

10) Increase the visibility of the in-house brands in a tremendous way by displaying

only the in-house brands on focal points and high points and giving them the

space visible from all corners of the store.

The above given ideas are some of the solutions for increasing the conversion rate,

cash memo size, and also the sales per square feet.


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Medium Term Market objectives

Medium term objectives are to overtake the lead in retail sector from Pantaloons,

which is going to be difficult if the above three components i.e. the conversion rate,

cash memo size and the sales per square feet consistently. The market share for

pantaloons today is approx. 41%. The market share of Shoppers Stop in comparison

to this is approx 32%, to take over the differential market share i.e. 9% is going to be

the medium term market objectives for Shoppers Stop Ltd. Capture the market

through the strengths of our own company and the weaknesses of the competitive

company. Also Expansion is to be seen as Medium term market objectives.

7) Marketing Strategy overall including Brand Positioning

including Assumptions


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Documents

Project on Marketing Plan1[1]