DISCOUNT store vs UPSCALE store

Saravana Stores vs The Shoppers’ Stop

The Stores

Objectives

• What people buy? quality• For how much do they buy? quantity• Do they come regularly/Frequently/rare? • Pricing strategy? Are they price conscious or

Snobbish?• Segmenting• Recommendations

WHAT THEY BUY- THE PRODUCT VARIETY

SARAVANA STORES•Saravana Stores offers wide range of products that ranges from Apparels, Accessories, Food, Furniture, Groceries, Utensils, Textiles, Toys, Electricals & Electronics, Stationary items, Jewellery etc.•Apparels - Casuals, Formals, Jeans, T shirts, Party wear, Under garments, Night wear, Sarees, Silk Sarees, Ladies wear, etc.•Home & Personal Care products - Utensils, Shampoos, Detergents, Soaps, Creams, Plastics, Cookery, etc.•Electrical & Electronics - Mobile phones, TV, Radio, Speakers, Computers, Peripherals, Watches, Hair trimmers, shavers, etc

WHAT THEY BUY- THE PRODUCT VARIETY

SHOPPERS STOPIdentified the need for upper class sophisticated people and created a suite of brands that reflect Styles, International Class and FashionPrivate Brands have been introduced and developed after a careful analysis of Customer Requirement.

FREQUENCY• Saravana Stores• Youth who work in corporate prefer

to shop most of the time whenever they get off.

• A typical family shopping is being found only during the festival days.

• Saravana Stores offers more deals and discounts in the textiles segment to family shoppers during festive days whereas it raises its prices marginally during other days when the young people shop. This affects the frequency.

• Shoppers Stop • Customers come visit the

store at regular intervals because the products are of good quality

• Also SS retains its customers because of the brand loyalty and the quality of service

• Since this is an Up-scale store there is no bulk buying

HOW MUCH- QUANTITY OF THE PRODUCT

SARAVANA STORES• DOWN-SCALE• LESSER QUALITY• LESSER PRICE• BULK

QUANTITIES• FESTIVAL

SHOPPING• WHOLE YEAR

SHOPPING

SHOPPERS STOP• UP-SCALE• HIGHER

QUALITY• HIGHERPRICE• SMALL

QUANTITY• PERIODIC

BUYING BEHAVIOUR

Pricing strategy

Saravana Stores• Low Profit Margin - High

Turn Over• The pricing strategy lies

balanced between penetration pricing and economy pricing but it is more inclined towards penetration pricing

• Value pricing, promotional pricing and Bundling

Shoppers’ Stop• Premium Pricing Strategy• High Profit Margin – Low

turnover• The Upper Middle class will

want to pay a higher value for higher quality product

• A sign of luxury status

STP

Saravana Stores• A typical family shopping

destination• The youth prefer shopping

here whenever they are off• Lower Middle class

Customers’ perception is that they are satisfied with products that have reasonable quality at low prices

The Shoppers’ Stop• Segmenting based on

Income patterns• Aims to build a strong

reputation through services for customers

• A family store with an ultimate shopping experience

SWOT

• Strength– SS– First of its kind, Variety of products at a discounted price – TSS - Loyal Customer base

• Weakness– SS - Lack in quality in both product and service, prices have gone up– TSS - Price. Lower Middle class people can ill afford to buy them

• Opportunity– SS – Market Expansion into other cities and towns – TSS – Preferred Partner for Foreign Players

• Threats– SS – The competitors know the SS weakness very well– TSS – Economic Slowdown

RECOMMENDATIONS for SS• CRM needs to be improved• It needs to build customer loyalty and increase its base for more profit.• Suitable training should be provided to the sales personnel. Lack of proper training and

guidance leaves the employees of Saravana Stores de-motivated.• It needs to boost the morale of the employees.• It needs to concentrate on the branded products also.• The offers should be well explained to the customers to avoid misinterpretation.• Since there is a huge rush in the stores, more waiting chairs and seats can be provided to

comfort the customers. Lack of this leads to many customers desperately sitting on the floor and ease themselves.

• Long waiting queue for billing the products purchased should be minimised. Many customers feel that selecting a product is more easier than billing them. This should be avoided and more billing counters can be added to handle the inflow of the customers.

• Saravana Stores should recognise the needs of the customer rather than offering the available products in store. Proper inventory management is needed.

• It can still concentrate on the quality of the products. Many customers feel that the quality is poor.

• Saravana Stores can enter in other major cities including Salem, Coimbatore, Madurai to gain more profit and market share as it has a strong reputation.

Recommendations for TSS

• Concentrate on the middle class also• There is a threat of losing your customer base.

So Keep in mind of it. • Luxury product width should be increased