Tata Croma- Bhayander (MUMBAI) Retail Visit Report
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
- 2014 Bhavesh M. Bhansali MBA3-1313 [RETAIL VISIT REPORT] TATA CROMA
- 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
- 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.
- 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
- 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.
- 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.
- 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)
- 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. RetailType 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
- 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
- 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.
- 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
- 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.
- 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:
- 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.
- 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
- 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.