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May 3, 2023Marketing Case Study - RAMMS
A C A S E S T U D Y
Retailing, ADVERTISING, MARKETING & MERCHANDISING Services(RAMMS)
Prepared by-
Chanpreet SinghSachin Sharma
Surabhi KalaSwapnil Soni
DoMS, IISc
Course-Marketing Management
Instructor-Prof. R. Srinivasan
2 May 3, 2023Marketing Case Study - RAMMS
Index
Retail Marketing and Merchandising RAMMS- introduction
RAMMS’ History RAMMS’ Leadership RAMMS ‘Operations RAMMS’ Breakthrough RAMMS’ Clients
RAMMS ‘ Campaign Details of campaign Survey, Analysis and Result
Financial Analysis- Return on Ad Response to Case Issues RAMMS at present References
May 3, 2023Marketing Case Study - RAMMS
4 May 3, 2023Marketing Case Study - RAMMS
Sale of goods and services from individuals or businesses to the end-user Retailers are part of an integrated system called the supply chain A retailer purchases goods or products in large quantities from manufacturers
directly or through a wholesale, and then sells smaller quantities to the consumer for a profit
Retail Marketing
Customer Money Product
B 2 C Business
5
Holistic (integrated marketing) Marketing approachProduct Mix
Supplier’s perspective Consumer’s perspective
ProductTechnology, structure, design, color
SolutionQuality, Utility, application, compatibility
PriceCompetitive pricing, Offers
ValueOpportunity cost
PlaceMarketplace, market space, meta market
AccessEasiness of access, availability of product
PromotionAdvertisement, customer engagement
InformationKnowledge about the product & its features
Retail Marketing and Merchandising
•Retailing and Merchandising have a limited scope but firm connection with overall marketing function of a company.•It deals at the delivery stage of the product to the consumer.
DemandDesign & Productio
nAdvertisemen
tWholesal
e Retailing DeliveryCustomer satisfactio
n
6 May 3, 2023Marketing Case Study - RAMMS
Quick & efficient shopping But longer the stay at shop -> more likely to purchase
Solution- > Make shopping entertaining
Challenge:Customer wants better product at least price, least time and most convenient way
Good News:75% of buying decisions are taken at the time of purchase only
Retail Marketing and Merchandising
7 May 3, 2023Marketing Case Study - RAMMS
Advantages over Media ad Low cost Consumer Focus Precise Target marketing Relative Ease in evaluation
Implementation Steps Analyzing the effect of Merchandising on
consumers’ purchase decision Identifying the participating channels &
their effectiveness Allocating the functions to channels Integrating all the elements of
merchandising & retailing Measure the performance of
merchandising by linking it with trade result Challenge in execution
Cooperation of channel members Comprehension of campaign by
consumers
Retail Marketing and Merchandising
Got it??
8 May 3, 2023Marketing Case Study - RAMMS
RAMMS’ History
Year Milestones1960 Marketing Advertising Associates (MAA) Founded1981 MAA Communications-an independent agency with operations across
South India1991 RAMMS started as subsidiary of MAA Bozzel
1994 RAMMS declared as a Public limited company
Among India's first indigenous advertising agencies
9 May 3, 2023Marketing Case Study - RAMMS
20 year old specialized Shopper Marketing agency A team of retail experts with an intimate knowledge of the
Indian retail market
RAMMS’ Leadership
Name Designation Curriculum Remark
Experience
R. Kannan Chairman IIM, Ahmedabad 42 years
Gautam Chowdhary
President Institute of Chartered Accountants of India
34 years
Krishna Rajan Dy. President Marketing communication specialist
22 years
Presence: Bangalore. Mumbai. Delhi. Kolkata. Chennai. Hyderabad
10 May 3, 2023Marketing Case Study - RAMMS
Shopper Marketing in India is different because of the MULTIPLICITY of channels in India. RAMMS has devised an India specific methodology (DICEM) to create new paradigms in Shopper Marketing across these multiple channels
RAMMS’ Operation
11 May 3, 2023Marketing Case Study - RAMMS
Functions Descriptions
Experiential Store Design
Design of retail environments that deliver joyous shopper experiences
Retail Identity Creation Retail brands, product brands and private labels
Retail Communication Specialized in-store communication targeted at shoppers
Navigation & Way finding
Planning, design and deployment of shopper-led retail signage and way-finding systems
Project Management & Rollouts
Meticulous execution of concepts and designs, from pilot store to national roll outs
Brand Launches End-to-end product launch services from shopper centric launch campaigns to post launch metrics
Events and Promotions Conceptualization and on ground translation of in-store events through trained promoters
Manufacturer –Retailer Collaboration
Creation of platforms for long term retailer-brand collaborations that deliver the ultimate shopper experience
Shopper Research Shopper behaviour studies through observation, shadowing and conversations to derive insights
Planogramming Handling on shelf product presentation of brands and products
RAMMS’ Operation
12 May 3, 2023Marketing Case Study - RAMMS
RAMMS’ Breakthrough
13 May 3, 2023Marketing Case Study - RAMMS
RAMMS’ Clients
14 May 3, 2023Marketing Case Study - RAMMS
RAMMS ‘ Campaign
15 May 3, 2023Marketing Case Study - RAMMS
RAMMS ‘ Campaign Major campaign launched by Bangalore unit
POP (Point of Purchase) displays for Lakme Orchids nail enamels Cariba-cola flavored rum campaign
Place of campaign 1. Spencer, MG Road, Bangalore2. Topaz, Brigade Road, Bangalore
Measurement of effectiveness of merchandising
Survey and Questionnaire comprising 16 questions mostly objective
Target customer for survey Upper and upper middle class
Sample size 30 numbers
Place of campaign 1. DoMS, IISc, Bangalore2. Online- social networking
Measurement of effectiveness of merchandising
Survey and Questionnaire comprising 16 questions mostly objective
Target customer for survey Students and professionals
Sample size 30 numbers
Tools used for analysis Bar Chart, Pie Chart & Regression
Virtual survey (we did)
16 May 3, 2023Marketing Case Study - RAMMS
Q1. What is your objective of coming to the store?
To purchase cosmetics? To do window-shopping? To give company? To check out new arrivals?
RAMMS ‘ Campaign – Survey, Analysis & Results
33%
23%7%
10%
27%To purchaseTo do window-shoppingTo give companyconsumer goodselectronic devices
Inference•A major portion of visitors in stores come for checking out new arrivals
• These possibly will be the future customers for the store
•Number of customers coming to check out new arrivals in case of consumer goods is very less compared to electronic devices
•Hence it can be said that consumer goods are bought with comparatively less ponderation.
17 May 3, 2023Marketing Case Study - RAMMS
Q2. Do you prefer shopping in big departmental stores like this?
Q3. If answer to question 2 is yes, then why do you prefer shopping in these stores?
Yes70%
No30%
Inferences:
•Luxury items such as cosmetics are more appealing to consumer when sold at dedicated large departmental stores.•Convenience & quality faith are major factors of shopping taking place in malls•Merchandising alone can sufficiently influence buying decision
0
2
4
6
8
10
1210
6
34
21
4
0
RAMMS ‘ Campaign – Survey, Analysis & Results
Scope of ‘Merchandising’
18 May 3, 2023Marketing Case Study - RAMMS
Q4. Are you normally pre-decided on what to purchase before you come to store?
Q5. If answer to question 4 is no, then what range of goods do you usually decide after coming to the store?
Yes17%No
83%
•Cosmetics •Household Items
•Crockeries •Hygiene items
•Hard drinks
5
10
58
2
Inferences:
•Majority consumer takes decision at the time of purchase so irrespective of perception of ad, they can be attracted
•FMCG such as Household, hygiene and cosmetic items are more likely to have opportunity to influence consumers’ decision
RAMMS ‘ Campaign – Survey, Analysis & Results
19 May 3, 2023Marketing Case Study - RAMMS
Q6. When you move toward the cosmetics section, what is it that strikes you most?
Q7. Have you seen or come across the newly-launched ads for Lakme Orchids range?
•Salesgirl •Colorful displays •Beautifully done shelves
•Other purchasers
5
15
10
0
Inferences:
•Arrangement and decoration play a cog in wheel role to attract customer
•Less likely customer care about launching of new products but more likely to try & use the new product
RAMMS ‘ Campaign – Survey, Analysis & Results
•Yes33%
•No67%
20 May 3, 2023Marketing Case Study - RAMMS
Q8. If answer to question 7 is Yes, then in what media?
Q9. What is your opinion about ads?
•Newspaper •Magazines •TV(DD) •TV(satellite)
12
6
2
10
•Very good33%
•Good60%
•Fairly Good7%Inferences:
•News paper & TV (urbane region) ads are more likely reach customer
•Mostly ads are liked because of being humorous and tickling
RAMMS ‘ Campaign – Survey, Analysis & Results
21 May 3, 2023Marketing Case Study - RAMMS
RAMMS ‘ Campaign – Survey, Analysis & Results
Citation:
Catchy Taglines always hit the mind,
But
Product /Brand may not
22 May 3, 2023Marketing Case Study - RAMMS
Q10. When you come to the cosmetics section of this store was the ad in your mind?
Q11. What did you like in Lakme Orchids range of displays?
•Very clearly
13%
•Clearly10%
•Just could recall10%
•Could recall af-ter seeing the
displays
67%
•Colour •Movement •Positioning •Try and buy concept
•Nothing in particular
52
8
15
Inferences:
•Planograms & displays act as catalyst to ossifying impact of ads seen by customers
•Major sales take place on the ground of ‘Try & Buy’ whereas positioning & display play fairly good role for customers’ decision making
RAMMS ‘ Campaign – Survey, Analysis & Results
23 May 3, 2023Marketing Case Study - RAMMS
Q12. What is your opinion about the try and buy concept?
Confidence in product quality Enables decision making to buy a new product
Q13. Would you have purchased Lakme Orchids range if there was no try and buy scheme?
•Yes43%
•No57%
Inferences:
• Try & Buy concept is welcomed to widen the customer base in market basically for new products
RAMMS ‘ Campaign – Survey, Analysis & Results
24 May 3, 2023Marketing Case Study - RAMMS
Q14. What in your opinion is the decisive factor in making the purchase?
Q15. If you have not purchased, then please give the reasons thereof
•Advertisement •Store displays •Ads and displays •Salespersons •Try and buy scheme
45
8
4
9
10 8 84
RAMMS ‘ Campaign – Survey, Analysis & Results
Unfortunately, out of scope of ‘Merchandising’
25 May 3, 2023Marketing Case Study - RAMMS
Parameters Score Result
1 2 3 4 5 6 7 8 9 10 100%
Overall convenience 2 6 20 2 83%
Quality of products 4 5 2 9 10 75%
Variety available 2 5 5 6 10 2 78%
Sales people 3 5 7 5 10 85%
Price 1 4 5 6 8 6 41%
Quantity 1 1 2 8 8 10 87%
Spaciousness 1 5 8 9 7 85%
Location of store 1 1 5 18 5 88%
Overall conve-nience
Quality of products
Variety available
Sales people Price Quantity Spaciousness Location of store
83%75% 78% 85%
41%
87% 85% 88%
RAMMS ‘ Campaign – Survey, Analysis & Results
26 May 3, 2023Marketing Case Study - RAMMS
RAMMS ‘ Financial Analysis
(Rs. Lakhs)
Year-1994 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ad Expeses 37.5 39 42.5 42.5 45 42 47.5 47.5 50 52 51 53.5
Sales 240 260 240 270 280 268 280 300 280 295 310 320
Regression AnalysisANOVA
df SS MS F Significance FRegression 1 5374.759 5374.759 34.23068 0.000161Residual 10 1570.158 157.0158Total 11 6944.917
CoefficientsStandard
Error t Stat P-value Lower 95% Upper 95%Intercept 84.63784 33.34589 2.538179 0.029455 10.33857 158.9371Ad Expeses 4.231538 0.723253 5.850699 0.000161 2.620029 5.843047
Y = 84.6 + 4.2 X (Positive correlation)
Return on Lakme Orchid Ad
27 May 3, 2023Marketing Case Study - RAMMS
36 38 40 42 44 46 48 50 52 54 560
50
100
150
200
250
300
350
Ad Expeses Line Fit Plot
Sales
Predicted Sales
Linear (Predicted Sales)
Ad Expeses
Sale
s
36 38 40 42 44 46 48 50 52 54 56
-30-20-10
01020
Ad Expeses Residual Plot
Ad Expeses
Res
idua
ls
No pattern left undefined by Regression model !Regression Model is worth!
InferenceAd Expense Sales
RAMMS ‘ Financial Analysis
28 May 3, 2023Marketing Case Study - RAMMS
Response to Case Issues With the data collected what type of analysis could be adopted to
measure the impact of ‘Lakme Orchids Campaign’?
Survey data:Based on sample data collected through survey bar chart and pie chart helped to
find correlations between effectiveness of various merchandising activities and sales
Financial data:Regression analysis portrays that increase in ad campaign fetches higher sales
revenue
What type of conclusions can be drawn from such an analysis?
Most of the buying decisions are taken on the spot majorly for FMCG products Big departmental stores offering good variety of products with attractive
showcasing under one roof increases perceived value proposition of the product Schemes such as ‘Try & Buy’ complemented with advertisement in Newspapers
& TVs play fairly good role in influencing customers’ buying decision Failure in meeting the sale of the product is mainly attributed to ‘High Prices’
that is out of scope of merchandising
29 May 3, 2023Marketing Case Study - RAMMS
Is it possible to conclude that effectiveness of merchandising is higher if coupled with Ad campaign?
Survey questionnaireQ10. When you come to the cosmetics section of this store was the ad in your
mind?
Response to Case Issues
•Very clearl
y13%
•Clearly10%
•Just could recall10%
•Could re-call after see-ing the dis-play
s67%
Inferences:
• Planograms & displays act as catalyst to ossifying impact of ads seen by customers
• Display of the products in store should be in line with the ads to fetch more sales
30 May 3, 2023Marketing Case Study - RAMMS
What are the possible limitations?
Limitation of data analysis:
1) Limited & Biased sample-Sample data are highly biased as these are collected from limited & niche segment of
customers i.e. Students of IISc and social media that may have common cultural and generation effects
2) Spurious correlation-Regression analysis is done along a considerable period of time; that shows positive correlation
between Sales & Ad but this may have spurious correlation with time as latent variable
Limitation of Merchandising:
1) Limited Scope-It has limited scope up to product display & delivery; doesn’t touch ‘Price’ & ‘Quality’
component that is major decisive factor in buying decision2) Accountability-Increases price of product & hard to measure the ROI
Response to Case Issues
31 May 3, 2023Marketing Case Study - RAMMS
RAMMS at Present Part of the prestigious EBELTOFT group, an international consortium of retail
consultants from 14 countries across the globe
RAMMS is India's only premier retail consultancy firmVideo: Global Retail Innovation Trends - NRF Big Show 2014 session by Ebeltoft Group.mp4
32 May 3, 2023Marketing Case Study - RAMMS
Websites www.indianretailer.com www.ramms.co.in www.maa.co.in www2.ebeltoftgroup.com www.google.co.in www.wikipedia.com
Books Case Studies in Marketing By Prof. R. Srinivasan Marketing Management By Philip Kotler
Tools used Microsoft Encarta (Encyclopedia for offline references) Microsoft Excel (for data analysis & graphs)
References
May 3, 2023Marketing Case Study - RAMMS
Thank you!
He said it….
“Advertising moves people toward goods; merchandising moves goods toward people.” (Morris Hite)