shoppers stop - segmentation_059

8/6/2019 Shoppers Stop - Segmentation_059

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Vikash Kumar

11PGDM059

Targetting and

Sementation


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SHOPPERS STOP - VISION

To be a global retailer in India and maintain its No.1 position in theIndian market in the Department Store category

Values that help in achieving our mission and vision:

y We will not takewhat is not ours.

y The obligation to dissent (against a viewpoint that is not acceptable).y We will have an environment conducive to openness.

y We will believe in innovation.

y We will have an environment conducive to development.

y We will have thewillingness to apologise and forgive.

yWe will respect our customers' rights.

y Wewill create an environment of trust.

y We shall be fair.

y We will be socially responsible.


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SHOPPERS STOP Inception and Now

y Pioneered modern retailing in India opening first store in

Mumbai in 1991 (2,800 square feet) by K. Raheja Corp.

y By 2011, 41 stores in 18 cities, total retail space of 1850,000

square feet, 24 in the Tier 1 cities

y Targeted to cover 25 cities with 50 stores by March 2012,

total retail are: 2.5 million square feet, extending in Tier 2 &

Tier 3 cities


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SHOPPERS STOP Product Offeringy Partnered with 200 brands, local & global

y Activeprivate label: In 2011, 23.3% overall sales growth andapproximately 31.4% gross profit margins

y A preferred partner for global brands seeking to do business in India

y Market leader in branded ready-to-wear category for mens clothing

y Western clothing for women remained a niche market

y Indian women preferred cloth, cut and finish to be unique. Typicalready-to-wear was not favoured

y For young adults fashion quotient was high. Most likely to featurecolours, patterns and designs that were the latest in vogue

y Young adults were high customers of accessories. Preferred to have thebest brands of fashion accessories, such as sunglasses, shoes and handbags

y In 2010, it launched a Start something Newprogram to providecustomized service


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SHOPPERS STOP A Typical Store

Metropolitan Mall - Gurgaon


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SHOPPERS STOP

First Citizen Program


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SHOPPERS STOP

Customer Satisfaction


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SHOPPERS STOP

Cumulative Growth


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SHOPPERS STOP Present Scenarioy Customer centric marketing campaign as opposed to conventional product

based campaign

y Strong back-end systems providing real-time information to managers,achieving operating metrics often considered benchmark for Indian retail.

y 65% (2006) of front-end staff compromised university graduated with higher

than averagepayy Wary of risks of inventory pile-up and low inventory turns

y Loyal customer base

Brand Perception:

y Perceived as a caring brand, core customer group of adults aged 25 to 45

y Disengagement with younger customers. Competing brands Lifestyle,Pantaloons & Central described as fashionable, trendy, flashy, modern,sporty and lively.


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SHOPPERS STOP

Emerging Segments (User Based)

Usage Based:

y Loyalty program First Citizen to reward frequent buyers

y Membership is growing

y Members spend approximately twice the amount spent by other users

y

90% belonged to Sec A classification of the Indian urban customery Approaching 5% of total customers, 65% of net revenue came from

them

y Analysis:y Since a loyal customer base is already formed, can target competitor's customers now

y Loyal customers should be encouraged to do word-of-mouth publicity

y With India's middle class growing, young population on a rise and Dabblers (17 million inTeir 1 & 2 (2006))& Aspirers(10.3 million in Teir 1 & 2 (2006)) spending Rs. 4,000 8,000 per month on Lifestyle Products in metros, SS should try to enroll more of B1classification customers as well


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SHOPPERS STOP

Emerging Segments (Geographically)


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SHOPPERS STOP Emerging Segments (Geographically)

No. Of Cities Population

Tier1 Major Cities 8 >4 million

Tier 2 Mainstream Cities 26 >1 million

Tier 3 Climbers 33 >500,000

Tier 4 Small Town 5094

y SS has 28 out of 41 outlets in Tier 1 cities

y Need to expand into Tier 2 as well, because substantial numbers of Sec A, B classification customers can be found here as well

y As SS prides on operating efficiency, would be better to move one step

at a time, rather than target both Tier 2 & 3 at the same time


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SHOPPERS STOP

Emerging Segments (Age)

Age:

y As of 2010, 51% of Indian population was under the age of 25

y But, the caring image of SS is associated with adults > 35 years

y

Need to target Dabblers and Aspirers as well.y As Aspirers look for eating out Desi Cafe, now run by Cafe

Coffee Day was a good way to attract them

y This works for Dabblers as well, as they look for A place for a bite

and to bewith friendsegments Dabblers Aspirers hrivers

Age Group 13-21Yrs 21-28Yrs 29-35Yrs

Population

-In Tier 1 & 2

174.0 million

17.0 million

129.0 millions

10.3 million

105.0 millions

12.2 milliom

Largest Share of Spend Apparel &

footwear

Apparel & eating

out

Apparel & health-care

roducts

Monthly Discretionary INR 4000-5000 INR 5000-8000 INR 6000-9000

shoppers stop - segmentation_059

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