tata croma- bhayander (mumbai) retail visit report

16
2014 Bhavesh M. Bhansali MBA3-1313 [RETAIL VISIT REPORT] TATA CROMA

Upload: bhavesh-bhansali

Post on 23-Aug-2014

6.881 views

Category:

Retail


14 download

DESCRIPTION

An excellent report on Tata Croma- Bhayander (MUMBAI) Retail visit. Tata croma is one of the leading specialty store of Electronics and Consumer durables. Presently, there are total of 101 Tata Croma stores in 25 cities in India. It offers its customers over 6000 plus products across eight categories

TRANSCRIPT

Page 1: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

2014

Bhavesh M. Bhansali

MBA3-1313

[RETAIL VISIT REPORT]

TATA CROMA

Page 2: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 1

Table of Contents

Executive Summary………………………………………….2

Socio-Economic Importance of Tata Croma………………...4

Identifying the Retail Type and its Product categories………7

Key Strategic drivers of the Retail Industry………………...10

Modern Technologies deployed by Tata Croma…………….12

Marketing Mix Strategy applied by Tata Croma……………14

Page 3: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 2

Executive Summary

Launched in October 2006, Tata Croma is an Indian retail chain for consumer

electronics and durables. Tata Group of company’s Infiniti Retail runs Tata Croma

stores in India. Infiniti Retail Ltd is a 100% subsidiary of TATA Sons. Presently,

there are total of 101 Tata Croma stores in 25 cities in India. It offers its customers

over 6000 plus products across eight categories in a world-class ambience and its

offerings are growing every day. These categories include Phones, Camera,

Computers, Entertainment, Home Appliance, Kitchen Appliance, Gaming and

Accessories. At Croma, their endeavor has always been fulfilling every electronic

requirement by helping customers choose the best product, as per their needs.

Croma's efficient, well-trained and knowledgeable store advisors are completely

equipped to offer sound and personalized advice for helping a customer and

receive the best value for money. It also offers and helps customers to buy their

favorite products for their own place through Croma’s online portal known as

‘www.cromaretail.com’. An authorized Croma Care Centre provides after sales

support for all Croma branded products 24/7.

Page 4: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 3

Brand Philosophy

If service wasn't important

If technology wasn't complex

If variety wasn't confusing

We would have no reason to be in business

We help you buy.

“Croma is passionate about combining technology and world-class retailing to

give customers an extensive assortment of their favorite products. We invite you to

enjoy great-quality merchandise, knowledgeable service and a pleasant shopping

experience.”

BY: TATA CROMA

Page 5: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 4

Socio-Economic Importance of Tata Croma

With the fast growing Consumer Electronics and durables Retail Industry, Tata

Croma is one of the leading players to cope up with the growing Industry and

fulfilling the customer’s needs and wants by giving superior value.

I have chosen Tata Croma located in Bhayander (West) as it is located at the place

where Bhayander’s most people spend their evening for shopping, for enjoyment,

people come there for coffee and finally for relaxing. It is also the main area in

Bhayander having various other outlets such as Bata, Reliance fresh, D-Mart, Big

Bazar and even Maxus Mall in located behind Tata Croma. So the traffic is always

at its top.

The total population of Bhayander is around 8,15,000 plus; of which male and

female are 4,34,000 and 3,81,000 approx.( 2011, Census data) excluding the

nearby suburbs which also constitute a large number of population. Enough

number of them buys their electronic and durable products for households from

Croma (as per my knowledge and understanding because I lived there for almost

22 years) because:

Non-availability of other branded electronics and durables retail outlet.

Attachment with the brand.

Thought process that Croma will serve them in better way.

Value for Money

People don’t want to travel to other places when they are getting the same

product at their place with little difference in price.

Tata Croma-Bhayander has no adjacent retailers with which they have to share

traffic. Therefore it has quite a few advantages which work in its favor.

The advantages are:

No Competition by Specialty stores in close proximity.

Low rental cost.

Huge parking space availability.

Page 6: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 5

Huge traffic of people.

Pleasant ambience of the location.

One stop electronics and durables store in 12-15km radius.

Infrastructure development on a large scale.

Migration of people from different locations to this location because of

development.

Medium and High income level of people in that specific area.

The disadvantage from which Croma-Bhayander suffers is quite less in numbers.

They are:

Bit high in price as compared to other local electronics and durable stores.

More focus of promoting products through window display is giving to

gaming products, Led TVs and digital products. Washing Machines, Fridges

and others are giving less importance for advertising.

Late arrival of products at Croma-Bhayander because Croma follows its own

distribution structure which makes delay in delivery at Croma- Bhayander.

Non-availability of free demos of products such as Xbox, Mobiles, etc…

because of unexpected things like Battery dying problem, etc…

Consumer Buying behavior towards electronic and

durable products

Consumer durables and electronics are items that provide a flow of services to a

consumer over a period of time. Examples include TVs, household appliances,

audio-visual equipment, furniture etc. The real level of spending on durables has

surged in the last eight years.

Page 7: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 6

The reasons are:

Falling prices for many durable products.

Low interest rates which have encouraged people to spend more on “big

ticket items”

Strong consumer confidence and borrowing levels. The demand for

consumer durables is more income elastic than for non-durables which are

usually staple items in people’s monthly budget.

(Source: www.scribd .com)

Page 8: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 7

Identifying the Retail Type and its Product

categories

The whole retail industry is categorized into different types of retail

Categories/Type.

Ret

ail T

ype

Big Box stores Wal-Mart

Departmental stores

Shopper's Stop

Discount Stores Subhiksha

Variety Stores Max

Super markets D-Mart

Hyper markets Big Bazar

Specialty Big box stores

Tata Croma

General merchandise stores

Pantaloons

General stores Local Kiranas

Page 9: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 8

The above red shade shows that Tata Croma falls under the Category of Specialty

Big Box store as it deals only in electronics and consumer durable products. They

offer it in a way which makes them special. Most of the specialty stores use a self-

service approach but Croma on the other hand has customer assistance as well.

Tata Croma serves its customers with 6000 plus different types of products in

different categories such as Small appliances, Digital products, Entertainment

products, Large appliances, Music and Movies, Computers and peripherals and

even with In-house products.

The detailed product categories are given in the diagram below

Page 10: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 9

Services

Ecommerce is the latest venture to achieve yet another important goal, which is to

bring customer the best shopping experience on the go & reach every door step in

the nation. With www.cromaretail.com, customers can now explore, browse and

purchase from the finest and the most varied range of electronic products in the

comfort of your home. Well-structured product information, great deals and swift

home delivery service are prioritizing for customer's satisfying shopping

experience.

Page 11: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 10

Key Strategic drivers of the Retail Industry

With the growing pace in technological advances, educational, changing trends and

hyper competition, it is very difficult for the retailers to survive this competition,

on and off the web. Revolutionary thinking needs to be possessed by the retailers

to thrive in today’s world. There need to be a few changes that have to be made by

the retailer to sustain in this hyper-competitive retail world.

They are:

A focused approach to strategic planning.

1. Strategic pricing of products

2. Proper formulation and execution of Business models for different

outlets

Advanced marketing skills.

A stronger customer focus.

Enhanced exposure on the Internet.

Chart for Strategic Key drivers

Strategic drivers

Focused approach on Strategic

planning

Advanced Marketing skills

Strong Customer Focus

Exposure to Internet

Page 12: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 11

Some of the few drivers in the electronic and consumer durable industry

which are and can be used by Tata Croma.

Price Sensitivity:

The consumer electronics and durables industry is highly price sensitive.

The low end models sell due to their volume and low pricing strategy for the

lower range consumer. For the medium and upper range customers - brand

name, technology and other features are important to sell.

Availability of newer variants of a product:

In today’s hyper-competitive business scenario, the consumer have a large

variety of choices in his/her hand. Consumers are looking for new products

which are to be developed and sold according to the consumer’s changing

behaviors, taste and preferences.

Increase in disposal Income:

With the growing levels of education and growing economics, the net

disposal income is also growing accordingly, thus, the standard of living is

also rising which results in rise of purchasing power.

Availability of Finance Schemes:

In today’s world, EMI has become very common where consumers pay a

certain amount at the point of purchase and the remaining payments are

spread over a time period depending on the consumer. This gives the

consumer access to expensive products.

Advertising and Brand Promotion:

The unique style of promoting and advertising for discounts, free gifts and

exchange offers helps Croma distinguish itself from the others.

Festival Seasons:

Festivals in India are in abundance. During this season, retails come out with

offers and discounts to cash in on the festive mood. This period will always

be one of the most important growth drivers of the consumer electronic and

durables industry.

Page 13: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 12

Modern Technologies deployed by Tata Croma

The evolution of technology within the retail and e-commerce space is shaping

how consumers behave and interact with brands and savvy, smart retailers know

that understanding shoppers’ behavior is a key for success. These retailers realize

they can utilize technology to capitalize on consumer needs and customized

offerings to help significantly increase their bottom lines.

Croma as a retailer follows a lot of modern trends to increase customer satisfaction

and save time on both ends (retailer and customer). The modern technologies

deployed by Croma are given below:

Page 14: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 13

Electronic Point-of-Sale System:

An EPOS system is one in which a universal product code (black and white

stripes or barcode) is read by a laser scanner connected to a computer. On

scanning a product, the computer records the sold items and displays the

price of the products to the customer. Eventually, an itemized bill is

generated and given to the customer as the receipt.

Electronic Funds Transfer at Point-of-Sale:

An EFTPOS system is one which facilitates cashless payments by the

customers. An EFTPOS terminal is connected to the retail store on one end

and the other end to multiple banks and credit card companies. This system

enables a customer to use credit and debit cards for their purchases. It is

convenient for the customer as it is quicker and less open to fraud. The

retailer is happy as he receives his payment in his account immediately.

Electronic Data Interchange:

EDI is the electronic exchange of data that takes place between the retailer’s

computer and that of his supplier. The exchange consists of orders, delivery

notices, invoices, returns and sales data. Its saves the lead time of deliveries

and large savings can be made by the consequent reduction in inventory

required. Given below is the process a business would take have to go

through with and without EDI.

Quick-Response Replenishment Systems:

When EPOS systems are combined with EDI, retailers are in effect adopting

just-in-time replenishment or quick-response (QR) replenishment methods.

Ordering merchandise is not based on historical but current sales. An

advantage that that the QR Replenishment Systems have is the reduction in

stock outs and the amount of inventory carried. This reduces the cost to the

retailer and improves the service to the customer. The image below shows a

simplified quick-response replenishment system.

Page 15: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 14

Marketing Mix Strategy applied by Tata

Croma

Product:

A product is the most important factor of marketing mix strategy for any company

or brand. Tata Croma-Bhayander serves the customers with almost around 6000

plus electronic and consumer durable products. Its product portfolio includes only

electronic and consumer durables, but with a variety of these product categories. It

Retail Marketing Mix

Product

Price

Place

Promotion

Page 16: Tata Croma- Bhayander (MUMBAI) Retail Visit Report

Individual Retail visit report April 18, 2014

RETAIL MANAGEMENT SYSTEM BHAVESH M. BHANSALI Page 15

serves its consumers with excellent brands akin Dell, HP, Apple, Sony in

computers, Godrej, LG, Haier and many more in appliances, Samsung, Nokia,

Motorola, Micromax, Apple, HTC, Blackberry in Mobiles, Nikon and Canon in

Cameras, etc… It also serves its customers with accessories such as Scandisk

Pendrive, Boss speakers, etc… In today’s world, customer is very choosy about

what to buy, thus stocking such a large stock gives Croma an edge.

Price:

Pricing is an integral part of the retail marketing mix. The customer profile and the

target audience decide the price policy of the retailer. Croma-Bhayander sells their

merchandise at the market price or less. Regular discounts and cash back schemes

are provided by Croma. If a customer compares the price of a product with another

store and is found cheaper, Croma reduces the price to match the other store with

the consent of the manager. Croma knows that if they don’t reduce the price, they

will lose a customer.

Place:

Tata Croma-Bhayander has the biggest advantage of location. It is a unique

location where Croma-Bhayander is located because of pleasant environment,

place for shopping, full with crowd, thus, companies are dying to open their stores

at that particular location. Place is most important in marketing mix because if

your store is at an unpleasant place with no traffic, you are dead.

Promotion:

Tata Croma-Bhayander creates a communication strategy with their target

audience in such a way which keeps them informed about various offers and

schemes. Posters and hoarding around the area (Bhayander), sign boards to the

store, delivery vans with Croma branding, multiple advertisements in different

types of media and many more promotional strategies are used by Croma.