CRM STRATEGIC PLAN FOR SHOPPERS STOP

Submitted to: by: Prof Dr. Dindayal Swain Pradhan Faculty: CRM IMI Bhubaneswar Bhubaneswar Submitted

Suman Roll No 22 IMI

Shoppers Stop
The tapestry of history has no point at which you can cut it and leave the design intelligible. The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja g r o u p of companies, one of India's biggest hospitality and real estate players. The Group crossed yet another milestone with its lifestyle venture-Shoppers' Stop. With its immense expertise in the service industry and creditability, Shoppers' Stop today boasts of 27 retail outlets across the country and is planning to spread its wings with futuristic expansion plans to meet the challenges of the retail industry. A benchmark for the Indian retail industry to follow, Shoppers' Stop has progressed from a single brand shop to a Fashion & Lifestyle store for the families. Shoppers' Stop is a household name, known for its superior quality products, services and above all, a complete shopping experience. Shoppers' Stop was the first to redefine shopping experience and creating a niche for itself in the service industry. As India's first specialty chain with outlets in Mumbai, Bangalore, Delhi, Hyderabad, Jaipur and Chennai, Shoppers' Stop offers a complete range of garments and accessories for the entire family. More than 25,000 customers walk into Shoppers Stop every day to feel the experience of shopping. Andheri was the first store to be opened in India. The initiative of this store was taken by B.S.Nagesh at a time when the concept of retail industry was just coming into the market. As on today, the current investors in ShoppersStop are ICICI, IL&FS Investments and Zodiac clothing. Their combined shareholding in Shoppers Stop is 19% while 79% is held by Raheja Group & balance 2% is held by its employees.

Corporate profile:
Vision: To be a global retailer in India & maintain no.1 position in Indian market in
Department Store Category.

Mission:
Nothing but the best To strive & achieve nothing but the best in terms of processes, practices & deliverables.

Values:
The following values help ShoppersStop in achieving its mission & vision: W e shall not take what is not ours T h e Obligation to Dissent (against a viewpoint that is not acceptable) W e shall have an environment conducive to openness W e shall believe in innovation We shall have an environment conducive to development W e shall have the willingness to apologize and/or forgive W e shall respect our customer's rights W e shall be fair.

Management:
B.S. Nagesh (Customer Care associate & Managing Director) Govind Shrikhande (Associate Director & CEO)

Business Partners:
Launched as India's premier retail chain for branded apparel and accessories, Shoppers' Stop has systematically progressed from only branded apparel to private label garments to home furnishings, and finally into books and music - all focused on our customers' lifestyle requirements and aspirations.

In 2000, SSL diversified into Bookstore Retailing by acquiring 51% stake in Crossword which it later increased to 100% in 2005. SSL has also ventured into various categories like cosmetics through MAC, mother and infant care through Mothercare, home solutions through Home Stop, food and beverages (F&B) through Brio and Desi Caf, gaming and entertainment through Timezone, Ladies non-apparel and accessories through its luxury format, Arcelia, and into airport retailing through its 50:50 joint venture (JV) with the Nuance group. SSL also has 19% stake in the hyper-mart format of HyperCity and has plans to increase it by 51% by end of June-2013.

Shopperss Stores sister store are:

Crossword Bookstores
Crossword Bookstores is a chain of largest bookstores in India with 52 branches. Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword is positioned as a lifestyle bookstore with their spacious, well laid out stores which encourage customers ease in browsing through the merchandise of books, music, stationary and toys.

Home Stop
HomeStop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets.

Brio
Brio makes Shoppers Stop Ltd.'s foray into Food and Beverage which was a step towards Franchised coffee bars. Brio the caf bistro is designed provides customers a place to relax, revive and reflect. It has a classic yet sophisticated ambiance. Brio has 20 outlets in select cities. Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed a MoU with Shoppers Stop to run its BRIO outlets.

Desi Cafe
Desi Caf and their operations have been taken over by Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed a MoU with Shoppers Stop to run its Desi Cafe outlets.

Hyper City
HyperCity provides customers a wide variety of range of products for shopping in a large and modern retail environment. It offers a contemporary range of products, sourced from both local and international markets. The product range covers: Foods and Grocery, Home ware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.

M.A.C
M.A.C. and Shoppers Stop Ltd. entered into a nonexclusive retail agreement with cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C. Makeup-Art Cosmetics - the professional brand of choice, is the first brand under the Estee lauder Group of Companies portfolio to enter the Indian retail market. Currently there are 9 M.A.C. stores operating

Arcelia
Arcelia is a new retail concept aiming at the growing accessories and cosmetics segment, with a strong emphasis on experience and indulgence and primarily caters to discerning women shoppers. It retails cosmetics, fragrances, fine jewelry, footwear, handbags.

Mother Care
MotherCare and Shoppers Stop come together to introduce products for infant and toddler care which stocks a variety of products for mother and babies, toddlers and children till eight years of age with the focus being on style, function and safety.

Nuance Group
Nuance G r o u p with Shoppers Stop makes an entry into airport retailing. The alliance is marked with a joint venture with The Nuance Group AG of Switzerland, the worlds leading airport retailer. Shopper's Stop Ltd. is handling the retail operations at the duty free zones in

international terminals. The joint venture company, called Nuance Group (India) Private Limited is operating outlets at the International airports at Bengaluru and Hyderabad.

Hyper City-Argos
HyperCity-Argos and Shoppers Stop, the two retail ventures of K Raheja group had signed a memorandum of understanding with UKs leading retail chain Home Retail group to develop the Argos (retailer) retail format stores in India. Two years later, Shoppers Stop Ltd has informed Bombay Stock Exchange shall wind down and discontinue its catalogue retail operations under the Hypercity-Argos brand.

Timezone
Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in Timezone Entertainment Private Limited which is in the business of setting up and operating Family Entertainment Centers (FECs). It has 5 outlets in Ahmedabad, Hyderabad, Kolkata, and NaviMumbai & Mumbai.

Customer Profile:
Shoppers Stops customers fall between the age group of 16 years to 35 years, the majority of them being families and young couples with a monthly household income above Rs. 20000 and an annual spend of Rs.15000. A large number of Non - Resident Indians visit the shop for cultural clothes in the international environment they are used to which means people from abroad are also interested in shopping in Shoppers stop. Their target customers are upper middle class and upper class.

Customer Rewards:
Shoppers Stops customer loyalty

program is called The First Citizen. The program offers its members an opportunity to collect points and avail of special benefits. Currently, ShoppersStop has a database of over 2.5 lakh members who contribute to nearly 65% of the total sales of

ShoppersStop. They also offer a cobranded credit card with Citibank for their members.

International Affiliations:
Shoppers Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29 experienced retailers from all over the world, which include established stores like Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China), Matahari

(Indonesia), Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is restricted to one member organization per country/region.

Objective of ShoppersStop:
Their main objective is to make their customer satisfy and then profit through sales, employee added after all every organization works to earn money which is possible through good sales and if our customers are not satisfy then it will be difficult for us. So we put our effort on retaining our customers because retaining old customers is more profitable than making new customers. And if we analyze this statement then we come to know that their 65% of their customers are their first citizen customers. Today people goes for variety and shoppers stop is doing that, they offer total 250 brands to their customers which act as their strength and help them retaining as well as making new customers. They believe in producing quality so they offer quality products basically international brands like Louis Phillip, Black Berry, Police, DKNY, Ferrari, etc. ShoppersS t o p aims to position itself as a global retailer. The company intends to bring the worlds best retail technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year

Types of Retail Outlets:

Shoppers Stop is known as multi-Brand retail outlet because of their verity of Products. They offer various products like apparels, Accessories, Toys, Fragrances, Beauty Products, Travelling products, Home Appliances, etc. They offer various products like Apparels, Fragrance & Beauty, Home & Travel, Gift ideas. Under this they have different Categories, Brands and Styles to offer customers. They have many other showrooms of Shoppers Stop in Delhi and NCR, so we can say that they have long chain of retail outlets.

Brands Offered:
Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magpie, 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 mens and womens outerwear are retailed in India exclusively through the chain.

Different brands offered under each category are given as below:

APPARELS
Arrow Louis Philippe Park Avenue Parx Van Heusen Zodiac Stop Caliber Blackberries Scullers Givo Orly Lee Levis Pepe Killer Lee Cooper Wrangler Spykar Life Allen Solly Provogue Wills

Jewellery
Facet Carbon Sparkles Tanishq FQ

Music
Planet M Music World

Pedrini Pyren

Hair Styling
Habibs

Swarovski
Gili Oyzsterbay Estelle

Yamini

Home Dcor

Books
Crossword

Four Seasons Viva Welspun Borosil C o r n i n g Ware

Fragrances
Christian Dior Ysl Davidoff Joop Diesel Lancaster Nicos Calvin Klein Boucheron Police

J'del Pozo Myrurgia Etienne Aiger Xm

Watches
Casio Esprit Fossil Titan

Sunglasses
Ray Ban

Shoes
Lee Cooper Red Tape Picasso Stop Life

Stores
Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name ShoppersStop 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 specialty stores, namely Crossword Bookstores, Mothercare, Brio, Desi Caf, and 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.

Marketing Strategies followed by Shoppers Stop Discounts and brand promotion

ShoppersStop through internet

ShoppersStop basically follows 2 marketing strategies: 1. Guerrilla marketing 2. Interactive marketing

1. Guerrilla marketing is an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing tactics are unexpected and unconventional; consumers are targeted in unexpected places, which can make the idea that's being marketed memorable, generate buzz, and even spread virally. Guerilla Marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, pr stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience. Principles of guerrilla marketing Guerrilla marketing is specifically geared for the small business and entrepreneur. It should be based on human psychology instead of experience, judgment, and guesswork. Instead of money, the primary investments of marketing should be time, energy, and imagination. The primary statistic to measure your business is the amount of profits, not sales. The marketer should also concentrate on how many new relationships are made each month. Create a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse products and services. Instead of concentrating on getting new customers, aim for more referrals, more transactions with existing customers, and larger transactions.

Forget about the competition and concentrate more on cooperating with other businesses. Guerrilla Marketers should always use a combination of marketing methods for a campaign. Use current technology as a tool to empower your business. 2. Interactive marketing is a strategies adopted by then retailers where they allow customers to customize the product as per their preference. This strategy is mainly followed by service industries like hotels but ShoppersStop is able to carve out this facility in a retail store. The concept that has already made a debut at ShoppersStop outlets in Mumbai, allows customers who are referred to as guests to go through various stages of activity in creating their own teddy bear (or other stuffed toy), including choosing a stuffed animal, stuffing it, giving it a heart, stitching, fluffing, naming and dressing it. And though the toys are priced at a premium level ranging between Rs 595 and Rs 1,295 for a stuffed animal and add-ons such as sound chips, clothes and accessories coming at extra cost,the interactive shopping experience also adds on an element of entertainment for young customers and can turn into a family affair as well.

Use of CRM, ERP & SCM at Shoppers Stop: CRM:

Retail chain ShoppersStop Ltd, is eyeing over 50 per cent sales this year from its customer relationship management (CRM) initiatives. The company has also lined up an aggressive expansion plan targeting smaller towns and cities in the country. BS Nagesh, managing director and CEO of ShoppersStop, told FE that the company has given a new direction to its CRM initiatives after it acquired business intelligence software called Business Solutions about eight months ago. The new software helps generate intelligent data from ShoppersStop customer base of about 2, 30,000. The company then collects this data and touches base with customers via direct mailers informing them of all new promotions that is currently on and also updates them about the upcoming events. ShoppersS t o p claims that it has taken its CRM initiatives to a new height and now calls its loyalty Programmes Customer Experience Management. If we find from the data that a customer had bought a pair of trousers, we tell him about a new range of Shirts that we have just brought into our store, says Mr Nagesh.

We are planning to open 35 outlets within the next three years. We have identified 21 new locations including Kanpur, Amritsar, Jalandhar, Ahmedabad and Indore, among others to set up these outlets.

ERP:
ShoppersStop was the first few retailers to use scanners and barcodes and completely computerize its operations. Today it is one of the few stores in India to have retail ERP (Enterprise resource planning) in place, which is the best retail planning system in the world. With the help of the ERP, they are able to open new stores faster and get information about merchandise and customers online, which reduces the time in taking quick decision.

SCM:
Understanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led ShoppersStop to streamline its supply chain. The company has developed process manuals for each part of the logistics chain. These modules include vendor management, Purchase order management, stock receiving systems, purchase verification and inventory buildup, fixing of price and store tags, dispatch of stocks to the retail floor and forwarding of bills for payment. If we talk about various brands then the answer is that they have a direct tie ups with different companies and companies deliver all the needed products to their door-step means deliver all the goods to every shoppers stop showroom. But there are some companies which do not provide them these services so for those they have their own carrier.

Competitors Analysis:
In India, as we analyzed we find only few competitors for ShoppersStop & those are mainly foreign Players and also Individual stores. The name of few competitors is given below: Lifestyle Globus Central Pantaloons Westside Ebony

Situational Analysis:
Situational Analysis includes current organizational mission, current ownership and management alternatives, and current goods/services category. As we have explained above about the mission management alternatives, current products, so now here we have done the SWOT analysis of Shoppers Stop.

Strength
Variety Range

Different Brands
Pioneer Loyal customer Low risk Good financial position Presence across various segments

Parikrama the festival Weakness

Very high prices: They provide international Brands due to which their prices are very high. Less Schemes: They do not offer so many schemes; they offer schemes only on special occasions like Diwali, Independence Day, etc. Less Discounts: They offer less discount in their schemes, they basically offer 10% to 20% Discount Competition from standalone stores Late entry into value retailing Store makeover expenditure

Threats
Government Policies Entrance of New Players High attrition

 Lesser consumer spending Entry of foreign players Unorganized sector Independent stores

Opportunities
Awareness about the brands Quality Youngsters Higher disposable income Collaborate Private levels Tier 2 & tier 3 cities Enter new consumer goods segments

Suggestions for CRM Successful CRM Strategy will:

Help better understand the needs of every individual customer Reduce customer churn - e.g.: lower selling costs Increase leads - e.g.: referrals Increase revenue per customer - e.g.: cross sell, upsell Help deliver a consistent experience every time

Challenges with Customer Interactions

CRM has Changed

Traditional Buying Model

A more Complex Model

CRM STRATEGY CONSIDERATION

PEOPLE
Communicate vision Recognize customer-centric behavior Train staff on Customer Service and customer dispute resolution Make customers front and centre for all key business decisions Measure and report o Surveys (written or face to face) o Social media monitoring o Mystery Shopping o Management involved with Customer

PROCESSES
Lead management Sales Pipeline management o Call back responses Accounts Management o Record account specifics and all account interactions across the organisation o Customer care program o Account Ratings Advocate, Passive, Detractor Service Desk o Case management o Dispute recognition o Social media management Marketing o Leverage technology, individual behaviours and context to drive more personalized marketing and engage prospects and customers

TECHNOLOGY
Implement a CRM System o Use CRM to cement your process o Make CRM central source of truth

Integrate your CRM system o Content Management System (CMS) o E-Commerce platform o Marketing Automation software o Learning Management System o ERP o Accounting software

FROM PRODUCT CENTRIC TO CUSTOMER CENTRIC

CRM ADOPTION CURVE

REFERENCES
www.shoppersstop.com www.angelbroking.com

www.scribd.com www.financialexpress.com

www.economictimes.com http://en.wikipedia.org/wiki/Shoppers_Stop