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Shopper Experience
Marketing
K J S O M A I Y A I N S T I T U T E O F
M A N A G E M E N T S T U D I E S
& R E S E A R C H , M U M B A I
1 / 1 / 2 0 1 3
Tamanna Godara15| Sudeep
Malik 24| Harshal Sawant 38|
Siddharth Shah 42| Ritesh
Sharma 45|
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Contents
1. Overview of Consumer Durables Market
1.2 Key Categories of Consumer Durables
1.3 Notable Trends in Consumer Durables Sector
2. About The Retailer- Tata Croma
3. Shopper Experience Marketing in Home Entertainment
category
3.1 Shopper Segments
3.2 Marketing Initiatives
3.3 Stakeholders Role Defined
3.4 Financials
3.5 Integrated Marketing Activity Planning
3.6 Measuring Success
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Policy support
100 per cent FDI allowed in the electronics hardware-manufacturing sector under the
automatic route; Approval of 51 per cent in multi-brand would further fuel the growth in this
sector
Duty relaxation, schemes such as EPCG, EHTP to provide tax sops
National Electronic policy (2012) to boost investment in the sector
1.2 Key Categories of Consumer Durables
The Indian consumer durable segment can be segmented into three groups:
White Goods Brown Goods Consumer Electronics
Air Conditioners Microwave Ovens TVs
Refrigerators Cooking Range Audio & Video Systems
Washing Machines Chimneys Electronic Accessories
Sewing Machines Mixers PCs
Watches & Clocks Grinders Mobile Phones
Cleaning Equipments Electronic Fans Digital Cameras & Cam-coders
Other domestic appliances Irons DVDs
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Consumer Electronics Key Products:
Colour TVs (CTVs)
CTVs are the largest contributors to this segmentMarket size was estimated at 23.0 million units in 2012
Introduction of HDTVs is set to drive demand growth from affluent consumers
Liquid crystal displays (LCDs)
LCD sales in India is expected to touch 9.9 million units in 2012
The price decline due to relatively low import duty on LCD panels, higher penetration
levels, and the introduction of small entry-size models are key growth drivers in the segment
Digital video discs (DVDs)The Indian DVD market accounted for 4.0 million units sold in 2011
The organised market has a share of 80 per cent in the total market
Direct-to-home (DTH)
The set-top box (STB) market is growing rapidly, due to the expansion of DTH and
introduction of the conditional access system (CAS) in metros
The DTH market was worth USD2.2 billion in FY12; the subscriber base reached 44 million
from 23 million during 2010-12, subscriber base is expected to reach 200 million by 2018
,thereby making India the one of the worlds largest DTH market
1.3 Notable Trends in Consumer Durables Sector
Increasing presence of organised retail
The Indian retail market is currently worth USD516 billion and is likely to expand at a
CAGR of 18.8 per cent to USD866 billion by 2015
The penetration of modern retail is 12.0 per cent in consumer durables segment
The sector is witnessing the emergence of modern durable retail chains and e-retailers like
Tata Croma, Reliance Digital, E zone
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Expansion into new segments
Companies are expanding their product portfolio to include products like high-definition
televisions (HDTVs), tablets and smart phones, etc, demand for which are rising with
consumers income, easy availability of credit and wide use of online sales
Increased affordability of products
Advancement in technology and higher competition are driving price reductions across
various consumer durable product segments such as computers, mobile phones, refrigerators
and TVs
Focus on energy-efficient and environment-friendly products
Leading companies have introduced star-rated, energy-efficient ACs and refrigerators
Companies also plan to increase the use of environment -friendly components and reduce e-
waste by promoting product recycling
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2. About The Retailer- Tata Croma
Company Profile:
TATA Croma is the nation's first large format specialist retail chain for consumer electronics
and durables with successful expansion into Croma Zip stores, Croma Kiosks and the latest
online vertical, www.cromaretail.com. Croma has been launched by Infiniti Retail Limited, a
100% subsidiary of Tata Sons. It efficiently and successfully runs Croma's retail operations in
India.
The Croma chain of stores offers, in different cities of India, a wide range of consumer
electronics products across categories and brands. The stores are spread over 12,000 to
20,000 sq ft and have more than 6,000 products and 180 brands in eight categories: home
entertainment, small appliances, white goods, computers, communication, and music,
imaging and gaming software. Their own label by the name of Croma is well recognized for
offering innovative and unique products.
Ecommerce is their 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.
The company, headquartered in Mumbai, had a technical and sourcing agreement with
Australian retail giant Woolworths until October, 2011 when they parted. Under the
arrangement Infiniti Retail owns and runs retail operations in India while Woolworths
provides technical support and strategic sourcing facilities through its global network.
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Company Snapshot:
About Specialist Consumer Electronic and Durable Retail Chain.
Stores 90 Stores Pan India.Parent Group Infinity Retail Ltd
Managing Director Ajit Joshi
Founded October 9t , 2006.
Head Quarter Mumbai
Industry Retail
Tag Line We Help You Buy
1st Store Juhu, Mumbai
Support Office Contact Infiniti Retail
Unit no. 202, 2nd floor, Akruti Centre PointNext to Marol Telephone Exchange
MIDC, Seepz, Andheri (East)
Mumbai 400 093
India
Phone: +91 (22) 6761 3600 Fax: +91 (22) 6710 1903
Website:www.cromaretail.com
Tata Croma is operating in two formats, the Megastore and the Zip store. The Zip stores are
found in airports mostly. Megastores are large format stores, the store size ranges from 15000
20000sq.ft, theses are well planned and designed for world class in store experiences and
backed by robust after sales service. The stores are in Mumbai, Pune, Bangalore, Chennai,
Aurangabad, Delhi NCR, Hyderabad, Punjab and Gujarat. The stores in Mumbai ranges from
15000-22000 sq. ft in area, in Bangalore the size is 22.000 sq. ft. the Croma Zip stores has
size ranges of 25006000 sq. ft.
There are total 90 stores across the nation including both megastore and the zip format. There
are 6 Zip stores; 1 at Santacruz airport, Vashi and Fort in Mumbai, 1 in Delhi airport, 1 in T3
Domestic airline and T3 international airline.
Table 01
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Lines of Business :
All the categories mentioned below are the range of products offered to customers at Croma
outlets across the nation:
Computers& Laptops
HomeEntertainment
Communication LargeAppliances
SmallAppliances
Notebooks TV Plasma PDAsSplit AirConditioner
KitchenAppliances
Desktops TV LCD Mobiles PhonesWindow AirConditioner
VacuumCleaners
LCD
MonitorsHome Theatre
Mobile
AccessoriesRefrigerators Irons
Printers and
Office
solutions
Audio System Fixed PhonesWashing
Machines
Lightening
Storage
MediaDVD/VCD Cordless Dish Washers
Personal
care
Webcam MP3 Players Bluetooth Dryers
InputDevices
IPOD Docks
3. Shopper Experience Marketing
Unleashing the Next Wave of Value
Shopper marketing continues to be one of the fastest growing and most promising areas for
marketing investment, accounting for approximately 5 to 10 percent of total advertising and
promotions spending, based on Booz & Company client experience. To sustain this rapid
growth and fulfill the promise of shopping marketing, however, CPG manufacturers and
retailers must evolve beyond a siloed, tactical approach to shopper marketing and manage it
as a strategic capability that is better integrated with other demand-generation activities.
Table 2
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Shopper marketings potential is rooted in its focus on gathering insights about consumers
when they are in shopping mode and applying these insights to influence their purchase
decisions. From the at-home research conducted by shoppers to the mobile devices that
provide the nexus between the home and the store to the shelf, shopper marketing offers a
means of influencing shoppers along every point on the path to purchaseand in the process,
building brand equity and driving sales lift.
At Home
Paid media (e.g., television, magazines, online)
Relationship marketing (e.g., e-mail, text messaging)
Product placement
Search before you buy (e.g., coupons, manufacturer websites, online reviews)
Social media
On The Go
Mobile (e.g., apps)
Out-of-home (e.g., billboards, street furniture)
Product placement
Alternative out-of-home (e.g., gas pump advertising) Interactive vending
Inside The Store
Signage on shelf
In-store coupons
Video displays
Interactive Media (e.g., shopping carts, scanning devices, kiosks)
Sampling Programs
Displays (e.g., end caps)
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The Home Entertainment category of Samsung inside the Croma store
3.1 The Various Shopper Segments
Browser
Bargain Seeker
Variety Seeker
Authoritative
Budget Conscious
Consultative
Discount Seeker
Infrequent
Inquirer
Indecisive
Individualistic
Price conscious
Brand Conscious
Quality Conscious
Out of these segments we have majorly focused on 3 segments
Browser : Young 15-25age bracket, college/office goers, SEC B & C, Enjoy
shopping
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Involved: Young & Old, 25-45+ age bracket, SEC A, willing to pay for quality and
brand
Budget Conscious: SEC B & C, is budget driven, can substitute brand and quality,
looks for deals
3.2 Marketing Initiative suggested
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1. Experience RoomBuild an Experience Room to allow shoppers step in and enjoy the latest offering
from SamsungTVs, Home Theater System and make customers go.
2. Happy Holidays Campaign!Let The Televisions Bring The Holiday Season to Life!!
3. The Next Couch King Campaigna. ONE: If you are sitting at our Samsung Couch at this particular hour of day,
b. TWO: Spot the advertisement playing and
c. THREE: Answer a question,
You stand to win the Samsung 32 LED TV or Samsung Smartphone .
4. Tweet in 140 secs!!Tweet 5 Models Of Samsung Television Under #IPL2014 And 5 Lucky Winners
Stand A Chance To Win Two Tickets to IPL 2014
5. The Samsung Bucket List!Come to our Samsung Bucket List Booth!
Buy any 2 or more Samsung products and win exciting experiences.
6. Come|Touch|Play|Experiencea. Gaming ExperienceTwo Tvs Placed Side By Side And Play The Game Of
Your Choice!
b. Motion Sensor Stand In Front Of Samsung Tv, Swipe Your Hand & See
What Happens..!
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3.3 Stakeholders Role Defined
CromaRetailer
SamsungBrand
Employees/Staff
Shoppers/Customers
3.4 Financial Case and Budget Allocation
Marketing Activities Budget
Experience Room Installation 50,000
Couch King Campaign 4 weeks (Jan) 72000
Tweet in 140 Secs (Feb-March) 10,000
Camera & Software Setup Cost (JanFeb) 3,000
Total 135,000
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3.5 Integrated Marketing Activity Planning
There are four primary integrated programs.
A. InStore Programming (promotions, displays)
B. Traditional Media (radio, print, direct)
C. Existing Media (Twitter, Facebook, Blogs, Website)
D. Loyalty Program
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Flowchart of Activities
Media Exposure of Croma & Samsung
Print Ads
OOH
TVCs
In Store Promotions
Displays
Sales Staff
Announce
ments
Danglers &
Promotions
Customer
Customer
visits
store
Engagement of Retailer &
Brand
Exposure to
Samsung Brand
via Marketing
Activities
Customer
Behaviour inside
store
Engagement of Brand, Sales staff
& Shopper
Engagement of Sales Staff
& Retailer
Shopper Enrolls for Loyalty
Program
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3.6 Measuring Success
Brand develops win-win programs with retailers to deliver long term & sustainable
business agenda.
Brands Goal:
To increase unit sell or value sell
Retailers Goal:
Increase same store sales
Increase ticket size
Thus need to measure success from both point of view
Short Term Measures
Eye tracking studies
Video images
Search Coils
Number of Footfalls/week
Calculate % increase in number of footfalls due to promotional activities over
last years same selling period.
Calculate avg. YoY growth in number of footfalls.
Difference between above two will give number of footfalls that brand has
actually achieved because of promotional activities.
Sales per sq. ft.
Conversion ratio
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Number of items sold/week
Long Term Measures
Loyalty Card
Analyzing frequency of purchase
Analyzing purchasing pattern
Shoppers Share of wallet
Spend On Brand / Total spend on category
Surveys
To analyze behavioral pattern for customers
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Figure 1
Typically, Shopper Marketing measurement falls into three buckets and can be short term or
longer term (Figure 1). There is a parallelto consumers and brands, where short-term
behaviour is measured in units and sales, whereas attitudes towards brands are formed and
measured in the longer term.Alongside all the consumer behavioural and attitudinal data,
market shares, penetration etc, which marketing teams have traditionally measured, a
complementary set of shopper data points are now available to those who want to measure
their shopper programmes. There is more data available now that retailers have vast amounts
of transaction data through electronic point-of sale systems and loyalty cards.
Shopper Marketing activities generate new types of data, beyond macro-marketing data and it
needs fresh analytical skills. Linked closely to shopper programme objectives, Shopper
Marketing success can be assessed with both short-term and long-term benefits. In the short
term, shopper data relates to one of the following, either units sold, percentage uplift in sales
or behaviour data, which measures changes in how shoppers behave. In the longer term,
shopper attitudes and perceptions can be monitored.
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common with the brand, as they seek to deliver greater satisfaction to their shoppers.
Increasingly, larger organisations have Shopper Marketing teams, who devise programmes in
conjunction with retailers and their retail account teams. The shopper marketer would define
the initial shopper objectives, both short-term and longer-term aligned with the brands
larger objectives. Often such shopper teams are quite lean and do not have the resources to do
large-scale data analytics independently. In the spirit of integrated marketing, the shopper
analytical capability can rest anywhere within the data and analytics teams. They can
integrate shopper thinking and success criteria into their analytics set, as this requires a
somewhat different focus, using different kinds of data. Rather than be divisive here, it pays
dividends to build capabilities of the overall data team to take on board shopper metrics and
data sources.