Comparative Study on Shoppers Stop and Westside

Service Marketing:
Services marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-base business is different from marketing a goods-base business. There are several major differences, including: 1. The buyer purchases are intangible 2. The service may be based on the reputation of a single person 3. It's more difficult to compare the quality of similar services 4. The buyer cannot return the service The major difference in the education of services marketing versus regular marketing is that apart from the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicewomen referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. Service Marketing has been relatively gaining ground in the overall spectrum of educational marketing as developed economies move farther away from industrial importance to service oriented economies. Characteristics of a Service: What exactly are the characteristics of a service? How are services different from a product? In fact many organisations do have service elements to the product they sell, for example McDonalds sell physical products i.e. burgers but consumers are also concerned about the quality and speed of service, are staff cheerful and welcoming and do they serve with a smile on their face? There are five characteristics to a service which will be discussed below. 1. Lack of ownership. 2

You cannot own and store a service like you can a product. Services are used or hired for a period of time. For example when buying a ticket to the USA the service lasts maybe 9 hours each way , but consumers want and expect excellent service for that time. Because you can measure the duration of the service consumers become more demanding of it. 2. Intangibility You cannot hold or touch a service unlike a product. In saying that although services are intangible the experience consumers obtain from the service has an impact on how they will perceive it. What do consumers perceive from customer service, the location, and the inner presentation of where they are purchasing the service?. 3. Inseparability Services cannot be separated from the service providers. A product when produced can be taken away from the producer. However a service is produced at or near the point of purchase. Take visiting a restaurant, you order your meal, the waiting and delivery of the meal, the service provided by the waiter/waitress is all apart of the service production process and is inseparable, the staff in a restaurant are as apart of the process as well as the quality of food provided. 4. Perishibility Services last a specific time and cannot be stored like a product for later use. If traveling by train, coach or air the service will only last the duration of the journey. The service is developed and used almost simultaneously. Again because of this time constraint consumers demand more. 5. Heterogeneity It is very difficult to make each service experience identical. If traveling by plane the service quality may differ from the first time you traveled by that airline to the second, because the airhostess is more or less experienced. A concert performed by a group on two nights may differ in slight ways because it is very difficult to standardize every dance move. Generally systems and procedures are put into place to make sure the service provided is consistent all the time, training in service 3

organisations is essential for this, however in saying this there will always be subtle differences. Indian Retail Sector The Indian Retail Sector has undergone rapid transformation by setting scalable and profitable retail models across various categories and formats. Traditional markets are making way for departmental stores, hypermarkets, supermarkets and specialty stores. The modern malls cater to shopping, entertainment and food, all under one roof. It was estimated that India will have over close to 50 million square feet of quality retail space by the end of 2007. The growth in mall space has been over ten fold in four years: from about 2 million square feet in 2002 to 28 million square feet in 2006. The Indian Retail market is estimated to be worth around Rs. 14,100 billion. The organized retail market has increased its share from 3 % in 2004 to around 4 % in 2006 and is valued at Rs. 511 billion. Overview of Retailing in India The Indian Retail market is estimated to be worth around Rs. 14,100 billion. The organized retail market has increased its share from 3 % in 2004 to around 4 % in 2006 and is valued at Rs. 511 billion (source: India Retail Report 2007). Food and grocery is estimated to be the largest single block, but the contribution of the organized sector is at 0.8 %. The clothing, textile and fashion accessories constitute the second largest block where nearly 17.5 % is contributed by the organized sector. Footwear has the highest contribution from organized retail (36 %).

SHOPPERS STOP: 4

Shoppers Stop Ltd., has redefined retail in India, taking it to the next level. From being just the sale of goods to consumers, the company has created a unique aura around retail and turned it into an experience, an indulgence. The pioneer of organized retail in India, Shoppers Stop Ltd., has been instrumental in bringing about a retail revolution in the country and has become the highest benchmark for the industry. With its growth plans firmly in place and undeniable leadership in the field, Shoppers Stop Ltd., is well on its way to raise the bar of performance even higher. Shoppers Stop Ltd. has made this purchase of goods extremely pleasurable. The stores have redefined shopping by making it more than just a transaction. The entire shopping process is the coming together of an amazing array of offerings, warm but unobtrusive service and special privileges and benefits that translate every visit into customer delight. Since its inception in 1991, Shoppers Stop Ltd., which was founded by the K Raheja Corp. Group (Chandru L Raheja Group), one of the leading players in the country in the 5

business of real estate development and hotels, has been offering premium and luxury value for the entire family. Its first store was in Andheri, Mumbai. Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. With the launch of the Navi Mumbai departmental store, Shoppers Stop has 27 stores in 12 cities in India. Shoppers Stop Ltd. has metamorphosed from being a chain of retail stores to emerging as a Fashion & Lifestyle destination, which now includes retail concepts such as bookstores, cafs and high-end lifestyle merchandise for the growing affluent middle class in India. Today, its name is synonymous with superior quality product, services and above all, an international shopping experience. Store: Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name Shoppers Stop in India. Currently Shoppers Stop has twenty seven (27) stores across the country and three stores under the name HomeStop. Shoppers Stop has also begun operating a number of speciality stores, namely Crossword Bookstores, Mothercare, Brio, Desi Caf, Arcelia. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Products:

Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, whos men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India. Marketing: In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New" repositioned to bridge to luxury segment and introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, Dior across the stores. The focus of the reposition was on the service, ambience up gradation and customer connect. * Connect with Youth Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth, up the fashion quotient through merchandising, and create ambience that connects with the mindset. The brand campaign addresses environmentrelated issues in a youthful, tongue-in-cheek manner. Shoppers Stop as a brand active on social media marketing platforms with Facebook and Twitter to connect with this audience. * Merchandising Merchandising opportunities like the launched Zoozoo merchandise and film merchandise with Om Shanti Om and Love Aaj Kal. * Sensorial experience Creating an environment conducive to relax in-between shopping introduced Shoppers Stop Radio that plays youthful music and Cafe Coffee Day was given the management of the Desi Cafe and Brio cafes 7

In order to enhance the level of customer service and gain insight into new and emerging practices followed internationally, Shoppers Stop Ltd. is a member of the Inter Continental Group of Department Stores (IGDS). It is the only Indian member along with 29 other experienced retailers from all over the world. Leveraging expertise, excellence and experience, Shoppers Stop Ltd. has become a benchmark for the Indian retail industry to follow. Continuing expansion plans, presence across several retail formats and international offerings will empower Shoppers Stop Ltd. to meet and exceed the expectations of shoppers at the micro level and the industry at the macro level. The companys flagship business of department stores is manifest in Shoppers Stop. A pioneer of organized retail in India, Shoppers Stop today, is the countrys biggest Department Store Chain. It offers customers an international shopping environment and a world-class shopping experience through its 20 stores in 11 cities. It houses a host of international and domestic brands across categories such as apparel, accessories, cosmetics, home & kitchenware as also its own private brands. Shoppers Stop offers a wide range of brands (more than 400 brands) for the entire family to choose from. Exclusive and established brands share shelf space to offer an array of choices customers across all ages, tastes and occasions.

SWOT OF SHOPPERS STOP: Strengths Variety Range Different Brands Low risk Good financial position Presence across various segments

Weakness Very high prices Less Schemes Less Discounts Competition from standalone stores Threats Government Policies Entrance of New Players High attrition Lesser consumer spending Entry of foreign players Unorganized sector Opportunities Awareness about the brands Quality Youngsters Collaborate Private levels Enter new consumer goods segments.

WESTSIDE

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Style, affordable prices, quality these are the factors that have shaped Westside's success story in the retail fashion stores business. Launched in 1998 in Bangalore, the Westside chain has, ever since, been setting the standards for other fashion retailers to follow. Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's largest and fastest growing chains of retail stores. The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already established 36 Westside departmental stores (measuring 15,000-30,000 square feet each) in Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an ample assortment of products made available at the lowest prices, aptly exemplifying its Chota Budget, Lambi Shopping motto. At present Star Bazaar has 4 stores in 3 cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an eclectic array of products that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy circa 1998 when The Tatas acquired Littlewoods a London based retail chain. This acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently operates Westside). Littlewoods was subsequently renamed Westside. 11

In addition, Trent acquired a 76% stake in Landmark, one of the largest books & music retail chains in the country. Landmark began operations in 1987 with its first store in Chennai with a floor space of 5500 sq. ft.

At present Landmark have 12 big stores , 7 hotel bookstores and 4 Airport stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft in Chennai, Bengaluru, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow, Ahmedabad and Hyderabad. Until 1996, Landmarks product portfolio comprised books, stationery, and greeting cards. It was later that music was added to it. Landmark also sparked the trend of stocking curios, toys and other gift items. What separates Landmark from other stores of its kind is the range and depth of its stock. In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise creating a loyal following. Currently, the company has 36 Westside stores measuring 15,000-30,000 square feet each across 20 cities. With a variety of designs and styles, everything at Westside is exclusively designed and the merchandise ranges from stylized clothes, footwear and accessories for men, women and children to well-cocoordinated table linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling space, prime locations and coffee shops enhance the customers shopping experience. Westside has garnered numerous accolades 12

* Balanced Scorecard Hall of Fame * India Brand Summit Brand Leadership Retail * IFA Visionary of the Year Award, 2002 Mrs. Simone N. Tata * Most Admired Large Format Retail Chain of the Year Lycra Images Fashion Awards 2005 * NDTV Profit Business Leadership Awards 2006 - Retail Category Aiding the community: Light a Diya, Help a Child Purchase a diya and light it at Westside during the Diwali Promotion. Funds collected are donated to NGOs to help bringing smiles to the faces of underprivileged children. Angels Tree Purchase a Silver Star or a Gold Star during Christmas Promotion, and decorate their Angels Tree. The money collected are donated to various NGOs across the country working with underprivileged children.

SWOT OF WESTSIDE: Strengths Growing at the faster pace Brand name of TATAs. Good customer base. Apparels are cheaper Attractive promotional schemes and heavy discounts Location advantage Weakness 13

 Not much product range for middle class Need some concessions from labor laws Lack of differentiation Poor inventory turns and stock availability

Opportunities Huge untapped market Urbanization Threats Competition from organized retail players Competition from local retailers. The following comparative study has been done between Shoppers Stop Ansal Plaza, south extension and Westside Lajpat Nagar. Comparison between Shoppers stop and Westside: The following comparison on shoppers stop and Westside is base on personal perception after having a direct shopping experience in both the retail chains. The following table outlays a few similarities and dissimilarities between the two. Both the retail chain their own in private label brands but Westside is more into promoting and selling its own brand whereas shoppers stop as lot of other brands apart from its own private one. Westside has the following Club west card program An assured return-and-exchange policy reinforces customer confidence in the chain. Another winning Westside idea is Club West, a customer loyalty 14

program launched in May 2001. The 30,000-plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels, home delivery of alterations, and best of all, special shopping hours on the first day of any discount sales event organized by the chain. SERVICES: Pre-purchase services include accepting telephone & mail orders, advertising, window & interior display, fitting rooms, fashion shows. It provides post purchase service including shipping & delivery, gift wrapping, adjustments & returns, alteration & tailoring It also provides ancillary services including general information, check cashing, parking, restaurants, repairs, interior decorating, credit etc. Shoppers stop has a separate exchange counter which is not properly visible which is done purposefully to hide it from the normal customers. The billing counter and the waiting line model in Westside are comparatively slower than in shoppers stop. Hence though being two popular retail chains there are many aspects in which they differ. The difference is basically because their targets are different though the format is the same. Comparative study of Shoppers Stop and Westside according to our observation: Parking Facility: Shoppers Stop has good parking facility in comparison to Westside and also through our survey it can be concluded that customers are happier with the parking facility of Shoppers Stop than Westside. Outside appeal: In terms of outside appeal that is facades windows etc. definitely Westside scores higher than Shoppers Stop. Sales Personnel: Sales personnel of Shoppers Stop seemed more attentive and friendly to us than Westside. 15

Moving Space and arrangements: There is lots of space for moving in Westside in compare to Shoppers Stop. Moving space in Shoppers Stop seemed little congested. But the arrangements seemed more organized in Shoppers Stop than Westside. Different brands had different section for customers convenience whereas in Westside it was not so. Billing counters and trial rooms: There is equal number of billing counters and trial rooms in both the retail shops but the billing system is fast in Shoppers Stop in comparison to Westside. In Westside you have to wait more for payment of bill than in Shoppers Stop. Ease of location of desired category: In Shoppers Stop it is much easier to locate desired category as each category is separated floor wise. The retail layout of Westside is free form layout wherein the fixtures and the aisles are arranged asymmetrically. Merchandise in clustered like the accessories and the women section are clubbed together for ease of shopping There are two main divisions : a)Products household items, gifts etc b)Apparel kids wear, women wear, mens wear etc Whereas in shoppers stop its more organized and arranged. Its not free form but every category is departmentalized like men formal wear has different section and casual wear is different. Range of garment and accessories: Range of garments and accessories are much more in Shoppers Stop than Westside. In Shoppers Stop you can find wide varieties of brands and accessories but Westside deals mainly with their brand that is Westside and accessories are also limited. Products: As mentioned before the product quality in shoppers stop is higher than Westside. The variety and assortment is pretty good in shoppers stop. The range of products available is 16

too good be it apparel or home furnishing or accessories and thats customers drive in especially to shoppers stop and hence it has been able to succeed in standalone stores whereas Westside usually is in a mall. In Store advertisements: In Shoppers Stop frequently you can hear ads and offers through speakers. But this was less in case of Westside. Kids toys: There is more variety of toys in Shoppers Stop than in Westside. Restroom: Each floor of Shoppers Stop contains at least one rest room but that could not spot in Westside, though Westside had sitting arrangements for their customers in each floor which was not there in case of Shoppers Stop. Service Desk: Both Shoppers Stop and Westside have at least one service desk in their retail shops. Comparative Study between Shoppers Stop and Westside on the basis of survey conducted: The result has been concluded on the basis of different rates given by the customers to the services both the retail shops on the scale of 1-10.

Total:
Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside Parking Facility (space) 350 160 Attentive 290 270 Friendliness 280 250 Outside appeal (facades windows etc.) 290 320

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Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

Music 28 26 Billing Counters 32 31 Rest Room 30 26 Ease of location of desired category 34 28 Membership 31 25

Moving Space 27 30 Trial Rooms 32 34 Drinking Facility 29 29

Arrangeme nts 24 22

Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

Range of garment 34 32 Kids Play Area 27 27

Range of acc. 31 25

Stores Shoppers' Stop Westside

Ease of Alter/exchange advertisement 35 25

In store advertisement 26 24

Other facility 27 24

Average:
Stores Shoppers' Stop Westside Parking Facility (space) 7 3.2 Outside appeal (facades windows etc.) 5.8 6.4 Arrangeme nts

Stores

Music

Moving Space

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Shoppers' Stop Westside Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

5.6 5.2 Billing Counters 6.4 6.2 Rest Room 6 5.2 Ease of location of desired category 6.8 5.6 Membership 6.2 5 Ease of Alter/exchange advertisement 7 5

5.4 6 Trial Rooms 6.4 6.8 Drinking Facility 5.8 5.8

4.8 4.4

Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

Range of garment 6.8 6.4 Kids Play Area 5.4 5.4

Range of acc. 6.2 5

Stores Shoppers' Stop Westside

In store advertisement 5.2 4.8

Other facility 5.4 4.8

Percentage:
Stores Shoppers' Stop Westside Stores Shoppers' Stop Parking Facility (space) 0.7 0.32 Attentive 0.58 Friendliness 0.56 Outside appeal (facades windows etc.) 0.58 0.64

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Westside Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

0.54 Music 0.56 0.52 Billing Counters 0.64 0.62 Rest Room 0.6 0.52 Ease of location of desired category 0.68 0.56 Membership 0.62 0.5 Range of garment 0.68 0.64 Kids Play Area Moving Space 0.54 0.6 Trial Rooms

0.5 Arrangements 0.48 0.44

0.64 0.68 Drinking Facility 0.58 0.58

Stores Shoppers' Stop Westside Stores Shoppers' Stop Westside

Range of acc. 0.62 0.5

0.54 0.54

Stores Shoppers' Stop Westside

Ease of Alter/exchange advertisement 0.7 0.5

In store advertisement 0.52 0.48

Other facility 0.54 0.48

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 From the above graph we can say that customers are more satisfied with the parking facility of Shoppers Stop than Westside but they think the outside that is facades windows etc of Westside is more appealing in Westside.

From the above graph we can say that customers find sales personnels of Shoppers Stop more attentive and friendly than sales personnels of Westside.

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 It is clear from the graph that customers find the music and arrangements of Shoppers Stop better than Westside. But according to them Westside has more moving space than Shoppers Stop.

The above graph says that customers are more satisfied with the billing system and counters of Shoppers Stop but they find Westside trial rooms more convenient and good.

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 Ease of location of desired category, range of garment and range of accessories, customers find Shoppers Stop better in these parameters.

Most customers have membership of Shoppers Stop than Westside and according to the survey customers have equal opinion for kids play area in both the retail shops.

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 Customers are more satisfied with the rest rooms of Shoppers Stop than Westside but they have equal opinion for drinking facility in both the shops.

Conclusion: From the above survey we can conclude that in spite of high prices in Shoppers Stop customers find Shoppers Stop ahead in terms of services than Westside. Westside needs to work more in their services to be ahead in the competition market.

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References:

www.wikipedia.org www.shoppersstop.com www.mywestside.com www.scribd.com

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