Shoppers Stop Start Something New Jessica Young Emalisa

+ Shoppers Stop “Start Something New” Jessica Young Emalisa Carvalho

+ Agenda n Company Background n 4 P’s (Product, Place, Pricing, Promotion) n SWOT n Recommendations

+ Company Background n Established in 1991 with flagship store in Andheri, Mumbai n Market segment: Lifestyle retailing n In 2010, 30 stores occupying 2 million square feet in 11 cities n 19. 9 million customer base n Won multiple awards in 2014 n Energy Efficiency Award n Best Organizational Leadership Development Program n Best Supply Chain Initiative of the Year

+ Product Apparel – 60% of sales n n Clothing (men, women & children) Footwear Non-Apparel – 40% of sales n Accessories n Fragrances n Fashion jewelry (watches) n Leather products n Cosmetics n Electronic goods n Home products

+ Brands in the store n Private label n n International brands n n STOP, Kashish, LIFE Nike, Reebok, Levis, French Connection, CK jeans, Gas, Tommy Hilfiger, Chanel, Lancome, MAC Challtoub Group (Stars Distribution) is key distributor n Distributes majority of apparel and non-apparel to store n Certain brands deliver directly to store and not through distributor n Brands pay premium for best placement n International brands provide their own displays

+ Store Images

+ Place n Located in organized retail malls n Organized retailing in India is expected to reach US$450 billion by 2015 n Factors impacting organized retail growth n Rise in disposable income n Double income families n Availability of credit n Infrastructure creation n Change in shopping behaviors

+ Pricing Strategy n Premium pricing strategy n Does not offer heavy discounts or sales

+ Promotion n n Target market n Family n “One-stop-shop” n Average 16 – 35 n Monthly household income of Rs 20, 000 Promotions include:

+ Yearly Events n Parikrama n n Men in Vogue n n a festival celebrating Indian tradition and culture which provided a platform for your artisans to showcase their artists and crafts at Shoppers Stop. an event showcasing apparel and accessories for men with offers ranging from gifts to trips to international destinations and discounts with every purchase they make. Wardrobe Exchange n a charity promotion under which customers donate their old garments and accessories and ear discounts on new purchases.

+ Two annual end-of-season sales n Occur in February and August n Maximum of “ 51%” off items n Protects perceived quality of brand

+ Loyalty Program n The First Citizen’s Club n Only 15% of customer base; contributes 75% to revenue n “Choose your own gift” campaign

+ SWOT Analysis Strengths Weaknesses n Branding n Poor store layout n Investing in technology n n Retaining employees Advertisement doesn’t align with brand identity n Poorly positioned towards largest consumer segment of India, 25 -35 years old n Very low shrinkage value n Online shopping experience

+ SWOT Analysis Opportunities n Retail uprising n Growth of middle class n n Threats n Saturated premium retailing market n Poor placement and brand choices n Price perception Increase consumption of branded and luxury goods Median age of India is 25

+ Recommendations n n Company Growth n Expand into the space between premium and luxury retailing n Introduce more luxury brands and services Increase customer base n n Improve promotions towards 25 -35 year olds Increase product offering advertising n TV n Digital

+ Questions?

+ References n Business Standard: Instead of dictating offers, we let the customer choose her own gift”. http: //corporate. shoppersstop. com/uploaded_files/2 d 967 d 1 -8 ee 2. jpg n Business Standard: The New Face of Private Labelshttp: //corporate. shoppersstop. com/uploaded_files/7 c 894 da-13 f 3. pdf