Pioneer in the modern retailing in India Promoted by K Raheja Corp 1 st store opened in 1991 in Mumbai. By 2006 it had 20 stores across 10 cities most of which were located in the Tier 1 cities. Shopper stop had a target to extend his footprint into the country’s Tier 2 and Tier 3 cities. Company had partnered with more than 200 brands both local and global for distribution in India. Active private label program which contributed to 23% of its overall revenue

Vision: “being India’s No. 1 global retailer in the Department Store Category” Enjoyed first mover advantage late entrants experimenting with diff formats. Wide product assortment from apparels(men women and children) to non apparels(watches, jewelery, cosmetics, perfumes, personal accessories)

Shopper Stop Umbrella Shopper’s stop: departmental store Crossword Bookstores : Bookstores in India with 83 branches. HomeStop : Premium home furnishings home concept store, HomeStop MotherCare: Maternity infant and child care store HyperCity : Big box retail store (Foods and Grocery, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.) HyperCity

Few Brands

Conservative retailer- its risk aversion attitude was due to its “as needed” procurement strategy. Shopper stop have strong back end systems providing real time information to managers which gave it a competitive advantage over its rivals. It has become a prefered partner for global brands seeking to do business

Strategy Focus: - single format which led to better operational metrics and higher profitabilty Positioning: premium lifestyle department store Offerings were standardized scope for customization was very limited. “Do it yourself program” Perception:- Perceived as a “caring” brand, core customer group of adults aged 25 to 45 Disengagement with younger customers. Competing brands Lifestyle, Pantaloons & Central described as “fashionable”, “trendy”, “flashy”, “modern”, “sporty” and “lively”

4Ps: Product: Wide product assortment from apparels(men women and children) to non apparels(watches, jewelery, cosmetics, perfumes, personal accessories). Includes international as well as many private label brands Price:Premium Pricing strategy that involves selling high quality products at high prices

Place: 50 stores in 20 cities across the country Mostly has its presence in the Tier1 cities of India Promotions: Festive promotion campaign ”PARIKRAMA” customers getting an opportunity to meet the artists. Organizes many promotional programs from time to time like “Fly to Santa Land”, “Gear up for the school”, “Salwar kameez and duppata exchange” etc.. Organizes local festivals like Durga puja in Kolkata, Onam in kerela, Dhanteras in North.

Strategy Marketing Campaign: - customer centric rather than the conventional product based campaign Promotions aligned to the seasonal fashion helped to drive footfalls at a compound rate of 16% and maintain a conversion rate of about 27%

Market Segmentation Usage Based: Loyalty program “First Citizen” to reward frequent buyers. Source of competitive edge as it provided a solid customer base Membership growing at % Majority revenue i.e 65% of net revenue came from the Members of loyalty program as they spend approximately twice the amount spent by other users. Demographic profile of First Citizen members: 75% age group 70% married 30% independent working women 90% belonged to SEC A classification majority are high network individuals

Analysis: – Since a loyal customer base is already formed, can target competitor's customers now – Loyal customers should be encouraged to do word-of- mouth publicity – With India's middle class growing, young population on a rise and Dabblers (17 million in Teir 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 B1 classification customers as well

Geographic segmentation No. Of CitiesPopulation Tier 1Major Cities8>4 million Tier 2Mainstream Cities26>1 million Tier 3Climbers33>500,000 Tier 4Small Town5094

SS has 16 out of 20 outlets in Tier 1 cities Need to expand into Teir 2 as well, because substantial numbers of Sec – A, B classification customers can be found here as well 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

Demographic Segmentation SegmentsDabblersAspirersThrivers Age Group13-21 Yrs21-28Yrs29-35 Yrs Population -In Tier 1 & million 17.0 million millions 10.3 million millions 12.2 milliom Largest Share of SpendApparel & footwear Apparel & eating out Apparel & health-care products Monthly DiscretionaryINR INR INR

As of 2005, 52% of Indian population was under the age of 25 But, the “caring” image of SS is associated with older adults Need to target Dabblers and Aspirers as well. As Aspirers look for eating out – Desi Cafe, now run by Cafe Coffee Day was a good way to attract them This works for Dabblers as well, as they look for “A place for a bite and to be with friends” But need to divide the Cafe from main apparel store, as not to displease the loyal customers

Psychographic Segmentation Shopper’s Stop catered to high end customers and views itself as a bridge to luxury.

Targeting Market specialization: It concentrates on serving many needs of a particular customer group

Positioning Positioned itself as a Global Premium Retailer outlet Also as a family store delivering a complete shopping experience

Print Ads

Outdoor Hoardings

Sales Promotion Gift vouchers Various Festive offers POP Material

Gift vouchers

POP Displays

Publicity and PR Brand Ambassador Special events Public affair activities

Brand Ambassador Shah Rukh Khan is the brand ambassador for all the mega events. He is the perfect image for shoppers stop because bothdominate their respective industries