retail assignment 2 atul

8/7/2019 Retail Assignment 2 Atul

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RetailManagement

Atul Kumar

08BS0000661

IBS PUNE

Retail Management

Croma Juhu


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Buyers of consumer electronics products face a problem of plenty: hundreds of brands,thousands of products, a mind-boggling range of features. Taking this problem faced byconsumers as a business opportunity Croma was launched by Tatas in India.

About Croma:

Croma is Indias first national large format, retail chain for consumer electronics anddurables. Croma is promoted by Infiniti Retail Ltd, a 100% subsidiary of Tata Sons.Woolworths, one of the worlds leading retailers, provides technical and strategicsourcing support, ensuring that nothing but the best should be offered to the customers.

Croma's first store opened on October 9, 2006 at Juhu in Mumbai, and it's rolling outmany more stores across India. At present there are 34 stores operated in differentparts of India including two Croma stores in Delhi and Mumbai Airport.

Currently Croma is offering 6000 products under eight categories to its customers.These eight categories include Large appliances, Small appliances, Computers, Music,Communications, Gaming, Home entertainment and imaging.

Brand Philosophy:

If service wasn't important.

If technology wasn't complex.

If variety wasn't confusing.

We would have no reason to be in business.

We help you buy (TAG LINE).

About the Juhu Store:

Juhu store was opened on October 9, 2006 and proud to be first Croma store by the

company. The store is spread across 20000 square feet of area which offers beautifuldisplays of the products under its belt. The store provides a truly world class shoppingexperience to its customers.

Shelf after shelf of lush, smooth, clean electronics bathed in sunlight from the largeFrench windows, each one with its own comparative price label adds to the beauty of the store. There are two price tags with each products; large numbers are the price youbuy it at Croma, the smaller ones are the price it retails at otherwise.


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The difference in these numbers can be anything from a few hundred rupees to acouple of thousand. In the case of the Best Buys scattered around the store, you couldeven have Rs 5,000-10,000 left over to drop on one of the 180 brands available at thestore.

The total investment on the store is around Rs 4 crore of which 1.9 crore went intofittings and fixture and Rs 2 crore into product inventory.

Retail Format:

As part of the large chain of stores, this store can be categorized as Chain store withlarge Format. Store offers 6000 products across eight categories in a world-classambience in the store. There are around 50 employees in the store working at differentdesignations.


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Merchandise Assortment:

SKU planning at Croma Store

Products range

Large Appliances: Large Apppliances includes washing machines, air conditioners,refrigerators etc. Major brand under this category are LG, Onida, Godrej, Voltas etc

Small Appliances: It includes microwaves, kitchen appliances, personal care, securityequipments etc. It includes brands such as IFB, Bajaj, Samsung etc.

Home entertainmen t: TVs, music systems, DVD players etc. are included in this.Verious brand offered by the stores are LG, Sansui, Sony, Hitachi, Yamaha etc.


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Computers and peripherals: Desktops, laptops, blank media, cables, accessories,software are included under this category. Compaq, Esys, HCL, Creative, HP, Lenovo,Zenith etc. are popular brand sold in the store.Communication: Mobile phones and accessories, telephones, SIM cards, rechargecards etc. are major products in this category. Various brands being offered are I-Mate,Mobo, Blackberry etc.Music: CDs, VCDs,Dvds are included in this category. These are the products whichcan be categorized as impulse products by the Croma and as a result a large displayspace is provided for it.

Bollywood and Hollywood DVDs, including new Hindi films, old Hindi films, drama,adventure and action, education, suspense, thriller, classic. Plus regional films, musicvideos, television series etc. are sold in this category.

Sony, T-series, Bombino, Eagle, EMI Virgin, EP, Eros, Excel, Gold, Indus, Pen, Rudraa,

SCI, Time, Tips etc. are the brands sold in this category .Imaging equipment: Camcorders, Digital cameras are sold under this category.

Brands under this include Sony, Canon, Samsung, LG, Kodak, Nikkon etc.

Gaming : Gaming Hardware and software are two lines of products sold inn thiscategory. Hardware includes PS2,3, PSP, XBOX 360 Pro,XBOX 360 Core, Razor etc.

Major brands that are sold in this category are Sony, Microsoft, EA sports, GTA, UBISoft, Valve etc.


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Store Layout

TV Section

AS we can see in the picture this section provides LCD and plasma TVs and sofas arearranged in front of TVs so that a complete room experience can be provided to thecustomer.


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Music and DVDs Section with Kiosk

Laptops and Desktops Section


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Theater Room

This room is provided to experience the sound quality of music systems and hometheater.


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Store Exterior :

The exterior of this store has a powerful impact on the store image. Its sign board, its

entrance, windows, lighting all adds to beauty of the store. Store provides a big parkingspace outside and a foot-path with lots of plantaion. The walls of the stores are madefrom the glass to give the store a distictive look and better display.

Atmospherics:

Atmospherics can be described as an environment that stimulates the perceptual and

emotional responses of the customer through

-Visual communication: In this store signs and graphics are put at a height so thatcustomer can read them from distance also which provide a good communication to thecustomer regarding the items in the store The store displays are organized to providecustomer in selecting the right kind of products fitting their present and future usage.


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The sales staff is also trained to understand the customer needs and recommend theright product to the customer

-Lighting : White flood lighting has been used in the store and each and every productlooks like having sun bathing.

-Colors: Walls and floor both are beige in color. It is the same color decided by Topmanagement in all croma stores across India. This color is deliberately chosen very lightshade so that colored light can be used effectively if needed .

-Music: Slow music is always been played in the store and there is separate theater room provided in the store to check the sound quality of music systems and homeheater in the store.

IT System used in the Store:

Every chain store is connected to a central data base via intranet of the organizationnow a days and this retail store at Juhu is not an exception. Retail data are integrated ina central database and are accessible in real time by members of the distributionchannel. Point of Sales (POS) systems at the store level provide the streams of datafrom retail stores. These data are collected and kept in a central database used for dynamic sales analysis and merchandise planning. The decision models for automatedshelf layout, continuous sales analysis, and real-time logistic management areincorporated into the marketing information system (MIS), which can be utilized by storemanagers through an easy-accessed Web-based interface. The WWW is thecommunicators medium used to link the retail headquarters with the distributed retailchain. The central object-oriented database is based on the proposed EXPRESS datamodel and provides a means to manage large amounts of rapidly-changing information.

IT solutions from TCS are used in Croma stores which happens to be sister concern of Infiniti retail as well.

Kiosk implementation in the store:


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An interactive kiosk is powered using streme architecture to switchbetween interactive and broadcast modes.

The kiosk normally works in a broadcast mode. The kiosk doubles up asa digital signage when not in use. The customer can interact with thekiosk to "switch" the kiosk in the interactive mode.

The kiosk is powered using a 19 inch touch screen with an on screenkeyboard. Content on the kiosk is designed for customer education anddisplaying current offers.

Competition Analysis:

Primary Zone:

In the vicinity there is a presence of Sumaria Appliances private ltd. And Vijay Sales inJuhu which provide this store competition in this zone. But both stores are not asfurnished as Croma store. There size is also very less as compare to this store. As we

know Juhu happens to be one of the posh most area in Mumbai which provide a goodcompetitive advantage to Croma.

Red dots in the image shown below indicate the electronic store in near vicinity to thestore in Juhu and Vile-Parle. These specialty stores which carry a single brand providea tough competition to the store.


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Electronics store in Juhu Area (Source: Google Maps )

Swot:

Strengths

Supportive Workforce: They have around 20 store assistant which helps customer selecting right product according to their need.

Strong tata brand name: Store enjoys legacy of strong brand name of tata which is awell trusted brand among all the individuals in the country.

Store Size As the store is spread across 20000 square meter, customer wants to visit astore to see all the products under one roof which is not possible anywhere else in thatarea.

Location As Juhu happens to be posh most area in Mumbai location is just perfect for the store with high purchasing power of the customers in that area.

IT infrastructure Live promos of running offers, internet Kiosk etc. provide an addedadvantage to the store.

Weakness:

High Inventory As the electronics goods industry is very dynamic in nature the storecarries a lot of dead inventory with this.


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Confusion in Mind of Customer: Sometimes customer gets confused after seeing lots of options.

Opportunity:

Growing Size of population: As population is increasing in that area day by day whichprovide a good opporutunity for a retail store like this.

Purchasing Power: Purchasing power of Peoples in this area is very high and they can affordhigh end products such as Robots, Automatic Equipments etc. which this store can sell easily.

Mobile Phones: High end mobile phones for the premium segment could be another opportunity which this store is not capturing at this moment.

Threats:

Online Shopping: Online shopping could be a possible threat to the store

Analysis

According to analysis provided above we can say that store provides a very googoptions to residents in Juhu an a world class ambience. In the area like Juhu with highpurchasing power and most of the residents from the entertainment industry there is agood scope of growth in near future. Further people from entertainment industryprovides a good opportunity because they are the role model for fashion statement for all India, what they use people use that. Lots of customer get attracted to the storebecause celebrities comes there often.

All in all a very good thought of store at Juhu is operating by Croma.


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Refrences

http://retailigence.wordpress.com/tag/croma/

http://www.cromaretail.com

http://india.retailmantra.com/2009/07/tata-croma-to-expand-its-product.html

http://ijsid.wordpress.com

http://in.news.yahoo.com
http://retailigence.wordpress.com/tag/croma/http://www.cromaretail.com/http://india.retailmantra.com/2009/07/tata-croma-to-expand-its-product.htmlhttp://ijsid.wordpress.com/http://in.news.yahoo.com/http://retailigence.wordpress.com/tag/croma/http://www.cromaretail.com/http://india.retailmantra.com/2009/07/tata-croma-to-expand-its-product.htmlhttp://ijsid.wordpress.com/http://in.news.yahoo.com/


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maps.google.co.in

http://streme.tv/case_studies_croma.html

Retail Management By ICFAI University Press

retail assignment 2 atul

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