INDIAN INSTITUTE OF PLANNING AND

MANAGEMENT



MARKETING STRATEGY FOR A MAJOR FOR RETAIL OUTLET
CROMA

Submitted to
PROF. VK CHABBRA

Submitted by
ADITRAJ JAITLEY - 03
ELSON LOBO - 18
KETAKI DESAI - 24
RAJ PATHAK 44
RALSTON COLLACO - 46
SHILPA SHAH - 53


Focus : understanding
customers need and meeting
them in a delightful manner.

By march 2012 : aiming 75
more megastores across India.

Market Penetration : Also
targeting small cities such as
Chandigarh, Amritsar,
Jalandhar, Mysore, Mangalore.

Commitment : Providing
unmatched shopping
experience.



MARKETING STRATEGY
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 = USP of CROMA

CROMA not only believes in sales but, focuses on it being meaningful
(i.e. to the customers and then to itself)

Every sale in CROMA is after the customer is informed on the technical
aspect, handling details, tips on usage and last best prices.

We help you buy is not only when you walk- in to the store but also felt online
and on their 24*7 customer care help line.



CROMA believes SEGMENTATION is the key strategy of marketing.

The SEGMENTATION OF MARKET applies to various aspects of the market:

oRegions divided geographically
oRegions divided according to presence of competitors
oAreas of importance like Malls and Airports
oCompetition- caters to various segments due to
over 6000 products available

SEGMENTATION OF PRODUCTS - category

SEGMENTATION OF CUSTOMERS- according to age and income level

SEGMENTATION OF MARKETING MIX different mix for different mediums of
sales and marketing.

4ps


RETAIL SCENARIO IN INDIA
The market for consumer durables
is estimated at Rs. 300 billion and
is expected to reach Rs. 500
billion by 2015.

Urban consumer durables market
is growing at 9 to 12 per cent,

While rural market at 30 per cent
annually.


Some high-growth categories
within this segment include mobile
phones, TVs (LEDs) and music
systems (IPODs).


STATS FROM: ASSOCHAM


PRODUCT MIX
Computers &
Laptops
Home
Entertainment
Communication Large Appliances Small Appliances
Notebooks
Desktops
LCD Monitors
Printers and
Office solutions
Storage Media
Webcam
Input Devices
Softwares
Networking
devices



TV Plasma
TV LCD
Home Theatre
Audio System
DVD/VCD
MP3 Players
IPOD Docks
Audio
Accessories


PDAs
Mobiles
Phones
Mobile
Accessories
Fixed Phones
Cordless
Bluetooth

Split Air
Conditioner
Window Air
Conditioner
Refrigerators
Washing
Machines
Dish Washers
Dryers
Kitchen
Appliances
Vaccum
Cleaners
Irons
Lightening
Personal care




OUR MAJOR SELLING PODUCTS
Major Products contributing to
the sales of CROMA :

Colour Televisions

Refrigerators

Air Conditioners

Washing Machine

Others : Kitchen appliances,
Gaming Devices,
Computers & Laptops,
Mobiles & Accessories
Etc.


BRAND AND FEATURES
STRATEGIC PRODUCT
ANALYSIS
New Arrivals at Croma: Microsoft Connected Home
USP OF CROMA AND COMPETITORS




WE HELP YOU BUY
PRICING STRATEGIES
Value Pricing
Promotional Pricing
Differential Pricing
Bundling
Reference Pricing
VALUE PRICING
PROMOTIONAL PRICING
DIFFERENTIAL PRICING-
TIME PRICING
BUNDLING
REFERENCE PRICING
DISTRIBUTION NETWORK
HUB & SPOKE MODEL
PROMOTION STRATEGY
BELOW THE LINE
ABOVE THE LINE
SOCIAL MEDIA ACTIVATION
SUNSET SERVICES
E-COMMERCE
ADVERTISEMENT
TV Advertisement


Radio Advertisement
Board Hoardings
Brochures, Booklets, Trade shows, online
contests and games
BRANDING
Delivers the message clearly

Confirms our credibility

Connects your target Prospectus

Maintain users Loyalty
BRANDING BARRIERS
Lack of
demand
location
financing

SOCIAL MEDIA PRESENCE has
proved to be SUCCESSFUL
STRATEGY in engaging our fans,
followers and converting them into
buyers and sellers
SOCIAL MEDIA ARSENAL
LOGO AND PUNCH LINE
Current logo:

We Help You Buy

Upcoming logo:

Look For All, Search For Best
CrOmA
PRODUCT LIFE CYCLE
Place Strategy
ACHIEVEMENTS
Croma conferred with the 'Most Admired Retailer of the Year' award
at India Retail Forum 2008.

National Brand: Croma is Indias first nationwide Electronic Mega
Store offering a unique shopping experience that is consistent
across the country.



Turnover
Croma retail chain are seeing sales growth of 15% month-on-
month.

The companys turnover is around Rs 1,000 crores and can break
even next year.

Croma is targeting a turnover of Rs 1,700 crores in the current
fiscal, up from Rs 1,021 crores last year

The company will also invest up to Rs 40 crores on store
expansion.

31 per cent of the total revenues from stores comes from
computers and notepads.




Tata Group's Infiniti Retail expects to have over 100 'Croma' stores across
the country in the next three years as it eyes deeper penetration into Tier-II
and Tier-III cities (2010)

The company said it is looking at opening around 22 stores this fiscal and
plans to pump in over Rs 350 crore for the purpose.

The company aims for a turnover of Rs 1500 crore in 2010-11
After Croma won 'Most Admired Retailer 2010 intends to expand its
operations and alter marketing strategies accordingly to the changing
consumers exposure.

Croma is expecting its newly launched private label to contribute 20 per
cent to its total sales consists of products like- mobile air conditioners, foot
massagers, two categories of irons, and three categories of microwaves-
which CROMA claims are 10-15 per cent cheaper than existing brands.





FUTURE PLANS

The idea of having a private label was to increase volume at our stores
which would further help us to negotiate in the Chinese market. With the
commodities price of steel and aluminum going down, production costs of
electronics have also decreased, Joshi informed
Promote Retailigence in the country.
It is even looking at adding newer products to the range very soon.





FUTURE PLANS
CONSUMER DURABLES INDUSTRY

The consumer durables industry can be broadly
classified into two segments: Consumer Electronics and
Consumer Appliances. Consumer Appliances can be further
categorized into Brown Goods and White Goods

The consumer durables market in India was estimated to be around US$ 4.5
billion in 2006-07.

More than 7 million units of consumer durable appliances have been sold in the
year 2006-07.

High-end products such as liquid crystal display (LCD) and plasma display CTV grew by
400 per cent and 150 percent respectively in 200607 following a sharp decline in
prices of these products and this trend is expected to continue.

Mobile phone production in India is expected to grow at Compound Annual Growth
Rate (CAGR) of 28.3 per cent from 31 million units in 2006 to 107 million units in
2011.Production of mobile phones is expected to be a US$13.6 billion industry by 2011.

The market for air-conditioners is divided quite uniformly across customer segments,
with about 45 per cent share for private sector corporates, 20 per cent for domestic
use, 15 per cent each for public sector companies and government use and 5 per cent
for hospitals.

The urban and rural markets in India are growing at an annual rate of 7 to 10 per cent
and 25 per cent respectively

MARKET PLAYERS & MARKET SHARE
NEXT
CROMA
EZONE
RELIANCE DIGITAL
VIJAY SALES
OTHERS
KEY SUCCESS FACTORS
Key success factors will serve an a guide in determining which few potential
strengths, and which few potential weaknesses you actually include in your
lists.
In any business, there are two or three activities which are the primary
determinants of success. If your company is especially good at those
activities and just mediocre at everything else, your company will be
successful.
KSF FOR CROMA

Best pricing of products

Highly trained Staff

Better Finance Options
PORTER FIVE FORCES ANALYSIS

BARGAINING POWER OF SUPPLIERS
Suppliers may refuse to work with the firm, or, e.g., charge excessively high
prices for unique resources.
Presence of substitute inputs.
Strength of distribution channel.
Supplier switching costs.
E.g.- Supplier/Wholesaler of Samsung TV.


BARGAINING POWER OF CUSTOMERS
The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the
customer's sensitivity to price changes.
Buyer volume.
Buyer information availability.
Buyer price sensitivity.





THREAT OF NEW ENTRANTS
Profitable markets that yield high returns will attract new firms. This results
in many new entrants, which eventually will decrease profitability for all firms
in the industry.
The most attractive segment is one in which entry barriers are high and exit
barriers are low. Few new firms can enter and non-performing firms can exit
easily.
Number & Size of competitors.
Time & cost of entry (Capital requirements).
Economies of scale.

THREAT OF SUBSTITUTE PRODUCTS
Threat could be from Competitors on product availability, variants,
quantity, pricing.
Competitors coming up with a product line under their own Brand name.

COMPETITIVE RILALRY WITHIN AN INDUSTRY
For most industries, the intensity of competitive rivalry is the major
determinant of the competitiveness of the industry.
Sustainable competitive advantage through innovation
Competition between online and offline companies.
Level of advertising expense.
Powerful competitive strategy.



BCG ANALYSIS












STARS

High relative market share and high growth rate
Best long-run opportunities for growth & profitability
Substantial investment to maintain or strengthen dominant position

QUESTION MARKS
Low market share compete in high-growth industry
Cash needs are high
Case generation is low
Decision to strengthen (intensive strategies) or divest





CASH COWS

High market share but competition in low-growth industry
Generate cash in excess of their needs
Milked for other purposes
Maintain strong position as long as possible
Product development, concentric diversification
If weakensretrenchment or divestiture
DOGS
Low market share & competition in slow or no growth market
Weak internal & external position
Liquidation, divestiture, retrenchment





Strategic Recommendations
Product Differentiation

Cost based pricing strategy

Brand Promotion
- A TATA Enterprise

Strategic Recommendations
Human Resource Management
- Training
Target Market

Promotional Strategy

Location