Marketing mix - Lifestyle vs Shoppers stop
8 likes11,661 views
Shoppers Stop and Lifestyle are two major retail chains that operate department stores in India, with Shoppers Stop having a premium positioning targeting upper middle and high income customers while Lifestyle has a more youthful and stylish brand image aimed at middle and upper middle income segments. Both chains offer a wide range of apparel, accessories, beauty and home products across multiple own stores and franchise partnerships located primarily in tier 1 and tier 2 cities.
Marketing mix - Lifestyle vs Shoppers stop
- 3. History Promoted by the K Raheja Corp Group (Chandru L Raheja Group) Started in 1991 with its first store in Andheri, Mumbai Has 69 stores across 32 cities in India Headquarters : Mumbai, India Govind S. Shrikhande, (MD & CEO) Shoppers Stop changed its logo and adopted the mantra "Start Something New" Over “289” brands Positioning: wide variety with International quality Source: http://corporate.shoppersstop.com/
- 4. Formerly called as Lifestyle International Pvt. Ltd Part of Dubai based Landmark Group Started in 18 May 1999 Headquarters : Bengaluru, Karnataka Micky Jagtiani, Chairman & CEO 47 stores across the country & presence in 13 countries Over 150 brands & Over 1,000,000 sq ft of retail space in 2014 Positioning: Youthful, Vibrant & Stylish Brand Source: http://www.lifestylegulf.com/about History
- 5. Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx Transition Of Brand Luxury Bridge to Luxury Premium Contemporary Popular Mass Luxury Bridge to Luxury Premium Contemporary Popular Mass 2005 2009 2005 2009
- 7. Shoppers Stop Ltd. Consolidated with SSL SS Department Stores Business 68% Sales Contribution Subsidiary Companies 30% Sales Contribution JV Companies 2 2% Sales Contribution •No of stores: 43 (incld. 2 duty paid airport stores) •GFA: 24.58 lacs sq ft. •Sales for 6 months as of Sep,2011 : Rs 920 Cr •Sales for full year as of March, 2011 : Rs 1676 Cr • No of stores: 8 • GFA: 1.37 lacs sq ft. No of stores: 35 GFA: 0.14 lacs sq ft. •No of stores: 7 •GFA: 0.35 lacs sq ft. •08 – 09 : 8.0 lacs visitors •10 – 11 : 35 lacs visitors SSL Stake 51% • No of stores: 10 • GFA: 10.64 lacs sq ft. • Sales for 6 months as of Sep 2011 : Rs. 369 Cr • Sales for full year as of March 2011 : Rs 597 Cr SSL Stake 100% • No of stores: 84 • Own Stores : 43 • GFA: 2.52 lacs sq ft. SSL Stake 50%•No of stores: 1 •GFA: 0.2 lacs sq ft • No of stores:14 •GFA: 0.97 lacs sq ft. SSL Stake 45% Well diversified portfolio to capture the consumer’s wallet share SHOPPERS STOP FORMATS Source: Shoppers Stop Annual Report 2012-13
- 9. HomeStop: Homestop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets, modular kitchens and health equipment. Home centre stores: is a part of Lifestyle store that houses products such as furniture and home decorative. Sister Stores
- 10. Brio - Brio has 20 outlets in select cities. Café Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its BRIO outlets. Gloria Jean’s Coffee-committed to delivering the ultimate specialty coffee experience. With over 1000 outlets across 39 countries worldwide, Gloria Jean's Coffees is a leading specialty coffee retailer and one of the fastest growing franchise organizations in the world. Gloria Jean's Coffees entered the Indian market in 2008 and is expanding across key cities. Currently the brand has 27 outlets across Mumbai, Bangalore, New Delhi, Gurgaon, Chennai, Hyderabad, Ahmedabad and Pune. Sister Stores
- 11. MotherCare- Mothercare is the largest specialist retailer for infant and toddler care. Shoppers Stop has an exclusive franchise agreement in India with Mothercare , for shop in shops in department store format The Baby Shop- a one- stop concept store for kids of all ages: from newborns and toddlers to tweens and teens up to the age of 16. Babyshop also offers a range of products for mothers and moms-to-be.. Sister Stores
- 12. Private Labels Splash: As a brand Splash believes in constantly being a trend-setter in the region and has successfully created some of the biggest and most popular brand properties/events like the bi-annual fashion shows, the Limited Edition With constant revamping of the marketing portfolio, newer forms of communication are added and channelled to keep the consumer involved. Max: Max is the largest value fashion brand in the Middle East, North Africa and India. A great shopping experience with fashionable products at amazing value, is an assurance from Max fashions. Max's success is driven by its value pricing, clarity in merchandise presentation, market positioning, aggressive market penetration and a strong Management team.
- 13. Private Labels Elliza & Donatein: ready to wear , premium collection of women's corporate wear Vettorio Fratini: in-house premium collection for men's corporate wear Life: Popular youth brand has collection that offers cool designs and funky graphics Kashish: is a classy and elegant brand for today’s women of substance who value their ethnicity and individuality. It offers glamorous Indian wear and accessories that are the perfect way to celebrate Indian women’s sophisticated style. STOP: Formal (Indian & western) Clothing for Men & Women at a low price as compared to other Shoppers Stop Private Labels Acropolis: in-house value priced collection for men's corporate wear
- 15. Store Visit: R City Ghatkopar
- 16. Store visit Shoppers Stop, R- City Ghatkopar Lifestyle, R- City Ghatkopar 2nd Floor entrance (Afternoon- 3pm) Ground floor entrance (Evening- 4:30pm)
- 17. Core Product Offering: Service Positioned themselves to create a suite of branding that reflect styles, international class & fashion Shopper Stop positions itself as a Global premium Retailer outlet & is positioned as a family store delivering a complete shopping experience. Positioned themselves as the Youthful, stylish and vibrant, & created an enjoyable shopping experience Positioning
- 18. Core Product Offering: Service Target Audience Shoppers identified the need for the upper middle class & high class segment Lifestyle identified the need for the Middle class and upper middle class segment
- 19. Apparels Watches Health and Beauty Sunglasses Fashion Accessories Color Cosmetics International Fragrances Premium Fragrance Pens Jewellery Personal Grooming Product Line
- 20. Product Lenghth (for eg.: Apparels) And many more…
- 21. Product Depth Buckle Formal Shirt Cotton Checks Formal Shirt Georgette Tuck Detail Shirt Cotton Stripes Cap Shirt Georgette Pleat Formal Shirt Stripped Formal Shirt
- 22. Merchandise Assortment Style Buckle Formal Shirt Cotton Checks Formal Shirt Georgett e Tuck Detail Shirt Cotton Stripes Cap Shirt Georgett e Pleat Formal Shirt Stripped Formal Shirt Price Levels Rs. 688 Rs. 1399 Rs.688 Rs. 1299 Rs. 688 Rs.1199 Sizes Available Large , Small Small Large, Medium, Small , Extra large Large, Medium , Small , Extra large Large, Small, Extra large Large, Small , Extra large Colours Available Pink and White Blue Steel Baby Pink and Black Off White Purple Products Details Full Sleeved Puff Sleeved shirt Full Sleeved Small Sleeved Full Sleeved Short Sleeved Brand :-Austin Reed Formal Shirts:-
- 23. Pricing Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at a High Price. Dubai-based Landmark Group’s Lifestyle International has positioned itself as a premier shopping destination housing.
- 24. Caters to which segment Shoppers Stop Caters to segment upper- middle class & high class society Lifestyle Caters to segment upper middle class & Middle class society
- 25. PLACE Objective: To make Products available in the Right Place at the Right Time in the Right Quantity. A DISTRIBUTION CHANNEL moves a product from production to consumption PLACE
- 26. STORE WISE LOCATION ACROSS INDIA Total No of Lifestyle Stores: 47 Total No of Shoppers Stop Stores: 69
- 27. 5 1 1 1 1 1 1 Delhi Gurgaon Amritsar Jaipur Ghaziabad Lucknow Noida Delhi Haryana Punjab Rajasthan UP North 4 5 1 Hydrabad Bangalore Chennai AP Karnataka Tamil Nadu South 1 3 1 Durgapur Kolkata Siliguri West Bengal East In North and West Shoppers Stop is entering new cities while in South it is restricting itself to only 3 cities. In East also it is expanding its market slowly. Source: Shoppers Stop Annual Reports, http://corporate.shoppersstop.com/ 1 10 3 1 1 1 Aurangabad Mumbai Pune Bhopal Indore Jaipur Maharashtra MP Rajasthan West
- 28. Approaches in opening of new stores. 75% of Total Sales from Tier I Cities It aims to stick to the top 10 Cities It plans to open more than 80 % of the new Stores in the top 24 Cities 65%-68% of Total Sales from Tier I Cities It aims to diversify its store outlets in Tier 2 cities as well Even it plans to open more than 80 % of the new Stores in the top 24 Cities
- 29. WAREHOUSING • Regional Warehouses – 6 in number ( data as of 2007) • Transportation From Warehouse To Store Is Done By The Distribution Centers(D.C) • The D.C Is Outsourced And The Activity Of Transportation Does Not Require Skilled Labour • Advantages Of Outsourced D.C -- Cost Benefit, Lesser Pilferage By Own Staff, dictate term to the Outsourced Company by Shoppers Stop. • Specialized Expertise of the outsourced Companies • Regional Warehouses – 5 in number ( data as of 2007) • Transportation From Warehouse To Store Is Done By The Distribution Centers(D.C) • The D.C consists of both outsourced as well as internal employees . • Advantages of having Internal D.C – Grater transparency in regularly reviewing stock status and monitoring timely replenishments (from warehouse to the store) along with cost saving
- 30. FLOOR LAYOUT First Floor Ground Floor Second Floor Third Floor
- 31. FLOOR LAYOUT Ground Floor First Floor
- 32. STORE SURVEYED AT FORUM MALL, KOLKATA Store Situated at the entrance of the Mall Promotiona l discount for shawls and beauty products Sales Promotion for Consumer Durables Overall Store display from inside the Mall
- 33. STORE SURVEYED AT PHOENIX MARKET CITY, MUMBAI Store Situated at the Backend of the Mall Sales promotion on display on the Shuttle Stop near the mall Overall Store Display with a large and spacious aisle Inventory management on progress inside the mall
- 34. Types of Promotion First Citizen reward Card for exclusive privileges, benefits and offers. Gift Vouchers to be redeemed inside the store Sale Discount for seasons and Special occasions
- 35. Types of Promotion Gift Vouchers to be redeemed inside the store Sales Discount for off-seasons Inner Circle reward Card for exclusive privileges, benefits and offers.
- 36. Inside the store Promotional Display as Observed Dual Promotions of The First Citizen reward card and Citi Bank through the baggage counter Sales Promotion for Consumer Durables Visual Promotion of Juicer kept near the Screen Sales Promotion on Baggage and Suitcase Inner Circle Counter
- 37. Outside the store Promotional Display as Observed Sales promotion on display on the Shuttle Stop in front of the mall Sales Promotions on display on the entrance of the store. Sales Promotions on display outside the store.
- 38. People
- 39. People > The Most Important Element Of Any Service Or Experience. > The Reputation Of Any Brand Rests In Their People’s Hands. > People Underpin The Customer Relationship Between The Company And The Consumer.
- 40. People
- 41. People-Employees Store visit observations (a) Staff members were well dressed. Guard greeted each customer entering the store. (b) Most of the staff were actively engaged with customers while few were found uninterested and unprofessional. (c ) We observed a sales personnel helping a pregnant lady with her shopping by holding her bag. (a) Staff formally dressed and well groomed. (b) The guard greeted every customer with Namaste . (c ) The staff were helpful and asked for help wherever necessary.
- 42. People Store visit observation If any customers forgot their bag in the baggage counter they give it to the admin office on 3rd floor. Shoppers Stop Customer Care (9:00am to 9:00 pm) One of their USP was the sensor attached to the token given for baggage which prompts customer to collect their bag from the baggage counter. Lifestyle has 24x7 customer care service. Token for baggage with the sensor at Lifestyle
- 44. Packaging Plays important role in promotion campaigns In defining the character of new product Differentiate one brand of product from another brand Defines an overall shopping experience
- 45. Packaging Overall experience (a) Wide Entrance and ample amount of space for the shoppers. (b) Latest songs were played all the time, which gave a pleasant experience while shopping. (c ) There was at least one staff dedicated to one brand and helped the customers throughout shopping. (a) Slightly narrow entrance that Shoppers Stop. (b) Songs played inside the store were little slow and less audible. (c ) Store was brighter than Shoppers Stop because of its white marble and white color theme.
- 46. Packaging Shopping Experience (a) All the sections were well labelled and customers could differentiate between the products on sale and new arrivals. (b) Clothes from the trial rooms were cleared in regular interval. (c) Each brand had a separate wall dedicated to it. (d) Latest offers and discounts were announces on a regular basis through their in house radio. (a) Spacious and clothes were organized more on shelves. (b) Current offers on each products were additionally displayed on the pillars made it more convenient for the customers. (c ) All the brands had there separate display units and well labelled. (d) Staff ensured that customers were well served, which thus enhanced their shopping experience.
- 47. Packaging Cash Counter Experience (a) Wide cash counters. (b) There were 2 staff per counter , one of them handling the billing process, while the other folding cloths into the baggage. (c ) LED TV behind the cash counters showing puzzles and Astrology forecast. (a) Slightly wider cash counter. (b) There were ample no of staff for handling huge footfalls. (c ) LED TV behind the cash counters displaying latest fashion and offers.
- 48. Customer reviews Pre Entry Easier for the customer to locate the store because of Shoppers Stops unique Black and White display and also its easy access from the Mall entrance. Strategic placement of the promotional red dot sale at the entrance itself. Store is located a little inside the Mall, but because of Lifestyle International appeal they experience a good amount of footfall. Not much promotional activity outside the store.
- 49. Customer reviews Shopping There was separate glass cabin for First Citizen customers for addressing their queries and concerns. Trial rooms were bigger and more in number than Lifestyle. Shopping bags available at regular stalls in the mall. There was a corner dedicated to Inner Circle members for their assistance. There were limited trial rooms, because of which customers had to stand in long queues during the sale period. Shopping bags were available only near the entrance.
- 50. Customer reviews Post Shopping Overall shoppers had a good shopping experience. Most of the customers were satisfied with merchandise they purchased. Lifestyle’s international appeal gives it an edge over its competitors. Because of its width, depth and price of merchandise offered, customers were happy to get a 1 stop shop experience.
- 51. CUSTOMER SATISFICATION INDEX (CSI) 60 63 63 81 80 50 55 60 65 70 75 80 85 Jan-06 Aug-06 Nov-07 Feb-09 Apr-10 CSI Customer satisfaction index is calculated based on the following parameters: Merchandising Range and Quality Store Environment Staff Transaction Efficiency Loyalty Programme Schemes Promotions Customer experience in Shoppers Stop wrt the competitor stores There was a significant increase in customer satisfaction from year 2007 to year 2009, although there is a small decrease in customer satisfaction in year 2010 from year 2009. This may be due to increased choices offered to the customers by other stores and hence increasing expectations of the customer Source: Shoppers Stop Annual Report 2010-11
- 52. Physical Evidence “To tangibilize the intangible”
- 53. Soft soothing Music Theme based arrangement Very helpful Sales personnel. Physical Evidence Ambience Good aisle space Wall space well utilized. Display of Vanheusen sport’s new collection. Information of offers on various brands displayed on a wall
- 54. Physical Evidence Free Wi-Fi Signage's wherever necessary. User friendly website Well lit and spacious trial rooms as compared to shoppers stop. Quality of products. Sales personnel dressed in Black. Shoppers stop website gives relevant information regarding the offers, discounts and new collection is a very organized way All the clothes are steam ironed after they are brought back from the changing room, on regular basis.
- 55. Process Procedures, mechanisms and flow of activities which lead to an exchange of value. It includes: 1. Queue time 2. Staff Efficiency 3. System efficiency 4. Interaction with customers 5. Easy exchange and returns
- 56. Process • Store planning according to the display plan. • Range Planning • Inventory Planning • Sample presentation to merchandiser’s •Follow the Planogram for displaying the merchandise.
- 57. Process Enterprise Retail Planning includes: • Manual of Authorities (MOA), which governs decision making authority. • Standard Operating Procedures (SOPs),govern most of the activities including site selection, store planning, store operations, buying and merchandising, distribution and logistics etc. •Business Manager browses through the whole store to check whether merchandise is in place or not as per Planogram.
- 58. Process Auto Replenishment System • Automatically analyses and suggests that a particular stock in a specific quantity, size and color be sent to a particular store. Warehouse Management system • Optimize space in the warehouse. Inward and outward processes Inward Process is done to replenish the stock every day by the Store Manager,Security Head and Inventory Manager. •Outward is done to remove old stock.STL(Stock Transfer List) is verified on any inward and outward.
- 59. Sample Size for Dipstick Study 63% 29% 8% Age Group 15-29 30-44 45-59 0 2 4 6 8 10 12 14 16 18 20 MALE FEMALE GENDERWISECUSTOMERSLIST LIFE STYLE SHOPPERS STOP
- 60. Affordability of the product EXPENSIV E 9% FITS THE BUDGET (Percent age) IN EXPENSIV E 3% LIFE STYLE Pricing EXPENSIVE FIT MY BUDGET IN EXPENSIVE EXPENSIV E 45% FITS THE BUDGET (Percent age) INEXPENS IVE 0% SHOPPERS STOP Pricing EXPENSIVE FIT MY BUDGET IN EXPENSIVE INFERENCE: Customers find Lifestyle to be more Pocket Friendly than Shoppers Stop
- 61. Loyalty Program members 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% LIFESTYLE- Inner Circle SHOPPERS STOP- First Citizen Yes No Whether Members of Loyalty Program INFERENCE: Since shoppers stop has strong promotional activities, the shoppers stop first citizen programme has slightly more members as compared with the inner cirlce
- 62. Awareness about the End of Season Sale INFERENCE: Because of Strong print media campaigns, Shoppers Stop has more awareness amongst the people
- 63. Survey Analysis Not Much of a Help Helpful Very Helpful 5 23 4 3 22 6 LIFESTYLE SHOPPERSTOP Whether Personnel on the floor helpful? INFERENCE: The sales Personnel of Lifestyle were more helpful than that of Shoppers Stop
- 64. Overall Shopping Experience INFERENCE: Customers had a better shopping Experience at Shoppers Stop as compared to Lifestyle
- 65. 47% 37% 16% Average Billing Time (Mins)- LIFESTYLE 5 to 10 10 to 15 15 and above 39% 45% 16% Average Billing Time (Mins)- SHOPPERS STOP 5 to 10 10 to 15 15 and above INFERENCE: Billing time at Shoppers Stop takes less time as compared to Lifestyle because they have more cashiers appointed at the cash counter as compared to Lifestlye
- 66. 28% 60% 12% Frequently Occasionally Rarely INFERENCE: Customers prefer to shop from Shoppers Stop occasionally because of its premium pricing. 34% 46% 20% Frequently Occasionally Rarely How often do you Shop from Shoppers Stop How often do you Shop from Lifestyle
- 67. Most of the respondents are aware of Austin Reed as it is an International Brand exclusively available in Shoppers. At the same time, the respondents are not as aware of Mustang even if it is an International Brand. Stop and Life are the Private Labels that respondents are aware of the most. They haven’t heard about iJeanswear and Mario Zegnoti. 0 10 20 30 40 50 60 70 80 90 100 Which of the following private labels are you aware of?
- 69. AND MANY MORE… Source: http://corporate.shoppersstop.com/corporate/awards-recognitions.aspx
- 70. AWARDS Most Admired Fashion Retail Destination Of The Year At The Images Fashion Awards For Three Consecutive Years 2013, 2012 & 2011 Lifestyle International Pvt. Ltd. Recognized As 42nd Best Workplace In The Country And 2nd Best Company To Work For In The Retail Sector In India By Great Place To Work Institute Survey 2013 Lifestyle International Pvt. Ltd. Recognized For 'Best HR Strategy In Line With Business' At 4th Asia's Best Employer Brand Awards 2013 Images Most Admired Beauty Products Retailer Of The Year: Department Store Chain At Images Beauty & Wellness Awards 2013 Retail Supply Chain Excellence Award – Express Logistics & Supply Chain Conclave & Awards 2012
- 71. Credit rating 15th-Oct-2013 08:28 Source: BSE Shoppers Stop - Credit Rating Shoppers Stop Ltd has informed BSE regarding the credit ratings received from the rating agencies as follows:- 1. Credit Analysis & Research Limited (CARE Ratings) - CARE A (Single A) to the long term facilities and CARE A1 (A One) to the short term facilities of Rs. 578.50 crore (enhanced from Rs. 461.50 crore) - CARE A1 (A One) for Commercial Paper Issue/ Short Term Debt Issue (Series I) aggregating to Rs. 100 crore - CARE A1 (A One) for Commercial Paper Issue / Short Term Debt Issue (Series II) aggregating to Rs. 40 crore - CARE A (Single A) for Non-Convertible Debenture issue amounting to Rs. 100 crore. 2. CRISIL Ltd has assigned “CRISIL A1” for the Rs. 50 crore Commercial rating Paper programme.
- 72. Credit Rating