advantage of mulund.pdf

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A

Project report on

“Individual Retail Visit ” At

„Croma – Mulund ‟

Submitted by: Saurabh Mhase

Roll no. : 1362

Universal Business School

Karjat


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Table of contents

Sr. No Content Page No.

1. Overview 3

2. Location and Socio-economic study 3

3. Product category analysis 5

4. Electronics industry in India 7

5. Modern technology implemented by Croma 96. Marketing Mix strategy 10


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Overview of Croma store chains:

Croma is an Indian retail chain for consumer electronics and durables. Tata Group company -Infiniti Retail runs Croma stores in India. Infiniti Retail Ltd is a 100% subsidiary of TATASons. Presently, there are a total of 101 Croma stores in 25 cities in India.

Croma – Mulund

a. Location and Socio-economic study:

Demographics of Mulund:

Mulund is a suburb in north-east of Mumbai. It is about 32 Kms away from Mumbai.

Particulars Data as of 2011Population 7,50,000Per capita income $2845

Geographical Significance:

Mulund is half an hour away from the heart of Mumbai. Mulund has easy access tothe Eastern Express Highway and Navi Mumbai through the Mulund- Airoli Bridge . Mulund issurrounded by the foothills of Sanjay Gandhi National Park. So, it has maintained the greeneryaround and it is preferred city to live in.

Social Lifestyle of Mulund:

Mulund is known as "Prince of Suburbs" due to its trendy lifestyle. Mulund is renovating by giving old structures away and building up new infrastructure. Mulund has got two majormalls- R-mall and Nirmal Lifestyle. It has got very good educational institutes and clubs whichadd standard to the lifestyle. The pleasant living conditions and easy access to different parts ofthe city and its outskirts have attracted many new residents.

Socio-Economic importance of Croma in Mulund:

Easy accessibility:Croma store is located near LBS road which is considered to be one of the busiest roads ofMumbai. It is just a minute away from „Check naka bus depot‟ which is a prime location.So, it is accessible to large crowd.

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Large variety of SKUs:Considering the demographics of Mulund, Croma has very good demand for variety ofelectronics items. And Croma serves the customer well with its variety of SKUs.

EMI facilities:Croma has tied-up with Bajaj finserve to provide EMI facilities. So, customers can buy thegoods without concern of immediate payments.

Free home deliveries:Croma provides home deliveries to customers who are not willing to carry the goods withthem back home due to some reason. This service save efforts of the customer and addsvalue to Croma ‟s serving.

Online sales:

Mulund has got large number of young population. Much of the population likes to buythe electronics materials online to save money. Croma provides a solution to this problemand they sell through www.cromaretail.com and they provide on time delivery tocustomers.

Cash-on-delivery system: While purchasing the electronics items online, customers are not willing to paythousands from their credit or debit cards. People prefer to pay a large amount by cash andthey want to touch and feel the product. So, COD is a very strategic approach to targetthese kinds of customers.

Store pick-up facility:There are few people who want to order online but want to pick up the goods from thestore itself. So, certain retailers are providing these services to enhance the userexperience.

Festival season offers:Store runs very good offers on festival seasons. This is an important factor for the peoplewho have mentality to buy in the festival season.

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b. Product category analysis:

Retail type- Specialty Electronics Retailer

Floor space: approx. 9000 sq. feet

Product categories:

Croma deals with following eight categories of electronics products.

1. Phones2. Entertainment3. Home appliances4. Computers5. Kitchen appliances6. Camera

7. Gaming8. Accessories

Major brands at Croma:


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c. Electronics industry in India:

Overview of the industry:

Indian electronics companies had majorly benefited from the economic liberalization policies of the 1980's, including the loosening of restrictions on technology and componentimports, delicensing, foreign investment, and reduction of excise duties. Output from electronics

plants in India grew from Rs1.8 billion in FY 1970 to Rs8.1 billion in FY 1980 and to Rs123 billion in FY 1992. Most of the expansion took place in the production of computers andconsumer electronics. Indian Production of Computer rose from 7,500 units in 1985 to 60,000units in 1988 and to an estimated 200,000 units in 1992. During this period, major advances weremade in the domestic computer industry that led to more sales. Consumer electronics in Indiaaccount for about 30% of total electronics production of the country.

In 1990 the electronic production included 5 million television sets, 6 million radios, 5million tape recorders, 5 million electronic watches, and 140,000 video cassette recorders. TheIndian engineering sector is large and varied and provided around 12 % of India's exports in themid-1990s. Two subsectors, electronics and motor vehicles, are the most dynamic in all thesectors.

Despite the global economic slowdown, growth of Indian electronics industry in 2009 wason par with the previous year at 9.9%, although this was decreased according to the double-digitgrowth achieved in 2006 and 2007. In 2010 output grown by 13.6% and in the medium to long-term India will continue to show strong growth driven by a large, fast growing domestic market,significant foreign investment and an improving regulatory environment. The global electricaland electronics industry has various adjunct sectors. Few of them are Electronic Components,Computer & Telecommunications, Office Equipment, Consumer Electronics as well as IndustrialElectronics.

Market size and growth:

Electronics retail industry is growing at 25% CAGR and expected to grow to $158 billionin 2015. Key strategic drivers of the electronics industry are as follows. Electronic industry is oneof the fastest growing industries in the country and is driven by growth in key sectors such as IT,Consumer Electronics and Telecom. China is a leading competitor electronics market. Chineseelectronics market is worth US$271.97 billion in 2013 and growing more fastly.


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Key strategic drivers of electronics industry:

1. EMI payment system: EMI system has eased down the payment pressure on the customer in economicconditions. Banks are also willing to increase the amount to be lent to the customers.Easy schemes like„0% interest rate ‟ are being launched by retail stores in collaborationwith the banks.

2. Online selling: Previously the electronic goods were sold only through the physical medium. Nowwith the practice of the e-commerce, people are reaching stores online and buyingonline. Thus e-commerce is one of the key driver to the growth of the electronicindustry.

3. Cash-back offers: Cash back offers on the purchase of goods have been very famous in recent years.After purchasing goods with the use of credit card, the customer will get back 5% ofthe amount he swiped through credit card.

4. Easy service support:Every brand is trying to reduce the complexities being faced by the customer for

proper servicing of the product. The retail stores and the brands are working togetherto reduce the complexities. So, customers are taking it in a very positive manner and itis a key strategic driver of the electronic industry.

5. Lowering cost of electronic equipment: New inventions brought in low cost solutions for the technologies. This change in thecost has lowered down the prices of the electronic equipment.


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d. Modern technologies deployed by Croma- Mulund store:

Unique product ID for India:

Croma is using unique ID system for the different products. The ID of product is same all over theIndia. This helps in identifying an item independently; it helps in billing and keeping track of theinventory.

SAP software:Croma has installed centralized SAP software. All over India, Croma has linked the individualstores to have a close look at inventory. A person is able to access the inventory reports of all overthe India Croma stores.

Advantages of SAP:

-

A salesperson can find out exact number of inventory lying in the warehouse.- A salesperson can immediately check out for the inventory of a product to order in urgentdelivery situations.

- Logistics: A product sold and being shipped could also be tracked and inventory is updatedautomatically.

Maintaining the customer database:Croma maintains a unique user database. User ‟s database is accessible to Croma through hismobile number which is used as a primary key.

Advantages:- Customer needs to fill up the personal information for delivery, only once.- Every next time the system will auto fill data after entering the mobile number.- Database saves time to billing and delivery.

Barcode system:Barcode system is used for billing purpose. Rather than typing and entering the prices for the

products, Croma is using barcoding system. Basically the barcode readers will read the barcodesand generate the bills on computers. Barcode system will prevent the unnecessary delay in the

process of billing.

Online selling with COD and Pick-up from store:Croma has online portal to buy the electronics items online. People can always buy online and paythrough COD (Cash-on-delivery) method. Customers can also make use of the pick from storeoption of the portal.


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e. Marketing Mix strategy of Croma:

1. Product: All in one -

All electronic products are under one roof. Customer then saves efforts and time to go todifferent stores and to look for the products. Multi-branded product category-

Products from all different brands are present in the store to offer better variety. Own brand products-

Croma sells products of its own brand in the store. Croma is a mainstream brand and it ismade to make electronic equipment available to low income group of customers.

2. Price:

Affordable price: The price is always set below MRP. And discounts are offered throughout the festivalseasons.

EMI system: The EMI system has lowered down the customer ‟s sensitivity towards prices. Thus, it is acompetitive advantage over the competitors.

3. Place: Huge floor space:

The floor space in Croma is Huge. And so it has not got problem with overcrowdingsituation or long lasting stock.

Prime location: Croma is located in prime area and hence has a competitive advantage of being moreaccessible.

4. Promotions: Traditional media:

Croma is a big chain of stores. Croma affords giving a huge front page advertisement innewspaper or a premium ad in radio.

Digital media: Croma is launching campaigns on digital media, it has got campaigns using GoogleAdwords and other marketing tools.

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