FUNDAMENTALS OF MARKETING

Term Assignment On
“ANALYSIS OF MARKETING ENVIRONMENT”
“SHOPPERS STOP”
POST GRADUATE DIPLOMA IN MANAGEMENT
(Term-I; Batch 2019-21)

Submitted to
PROF. “VINITA SRIVASTAVA”

Submitted by
PUNEET SINGH DHANI
PGFA1939
INDEX
 About the Shoppers Stop
 History, Vision, Mission, Brands offered
 Objective of Shoppers Stop
 Micro Environment
 Macro Environment
 SWOT Analysis
 Conclusion
 “ABOUT

Shoppers Stop was started in 1991 by the K. Raheja group of companies (one of
well known name in the field of hospitality and real estate). The Group achieved
new heights with it’s lifestyle venture- Shoppers Stop. With it’s extensive
expertise in the service industry Shoppers Stop able to open 83 stores in 38
cities around India with accessories, handbags, clothing, shoes, jewellery,
fragrances, cosmetics, health and beauty products etc. Shoppers Stop has set a
benchmark for various retail stores with it’s tremendous growth from one shop
to a Fashion & lifestyle store for the families. Shopper Stop far-famed for it’s
superior quality merchandise and services. you'll realize a most of the
brands beneath one roof I.e. it’s a fashion hub. Shoppers Stop was the
primary to redefine looking expertise and making a distinct segment for
itself within the industry. According to survey 25000 customer visit Shopper
Stop everyday to feel the experience of shopping. The first store started in
Mumbai (Andheri). Current investors in Shoppers Stop are IL&FS Investments,
ICICI and zodiac clothing . Total share of investors is nineteen whereas seventy
nine is control by Raheja cluster and rest a pair of is held by it’s staff.”

HISTORY
“Journey of the Shoppers Stop started Andheri in the year in 1991.The company
opened it’s 22nd store at Noida in May 2007. In 2007, it entered into partnership
with Nuance Group AG and opened stores in Bengaluru and Mumbai Airports.
E-store of Shoppers Stop launched in India in the year in 2008 whereas
Smartphone app in 2016. In June 2018, Chandru L Raheja resigned as the non-
executive chairman after serving two decades. Chandru Raheja succeeded by B
S Nagesh.

Vision
Vision of the Shoppers Stop is to maintain number 1 position in Indian market
in Department Store Category and be a global retailer in India.

Mission
‘Nothing but the best’
As the statement itself says to strive & achieve nothing but the best in terms of
processes, practices & deliverables.”
“Objective of Shoppers Stop
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 analysis 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.
Shoppers Stop aims to position itself as a global retailer. The company intends
to bring the world‘s best retail technology, retail practices and sales to India.
Currently, they are adding 4 to 5 new stores every year.

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

MARKETING ENVIRONMENT”
“Marketing environment refers to the factors and things which affect the
marketing management and stops the company to build a healthy relationship
with customers and stops its growth too.

Different Marketing environments are:

1. Micro Environment
2. Macro Environment

MICRO ENVIRONMENT
The micro environment refers to the factors which are internal part of the
organisations and can be controlled by the organisation. These factors affect the
firm from inside. The micro environment for every firm will be different
depending upon the nature, size, product of business etc.”
Micro factors of Shoppers Stop are:
Customers
The main motive of any company is to earn profit which comes from customers.
Customers are most important part of any organization micro environment.
Organisations develop the product as per needs of customers and work to satisfy
the needs of customer. Shoppers Stop being the retail chain focuses on proper
availability of stock in each and every outlet so that they can fulfil the demand
of consumers.

Suppliers
The source of product is the supplier and in retail business intermediaries play
the role of suppliers and its their task to provide stock in each and every outlet.

Competitors
Shoppers Stop is a part of monopolistic competition market and it has various
competitors. It is a generally said that keep your friends close but your enemies
closer hence competitors are the internal part of micro environment. The
company which is producing close substitute or alternative to our products can
be called as competitors. In India, as we analysed we find only few competitors
for Shoppers Stop & those are mainly foreign players and also Individual stores.
The name of few competitors are Lifestyle, Globus , Central , Pantaloons ,
Westside , Ebony etc.

Employees
Employees first, customer second is the new idea which is now prevailing in
market. It is observed that so much substitutes of goods are available in the
market that consumers have many options but what makes your organization
run are the employees who bound with consumers and help in increasing
customer loyalty. The organizations now are also known by the managers who
run them other than the brand value. Labour is considered as most important
factor of production and in Shoppers Stop employees play an important role in
dealing with customers at shop floor.

Shareholders
Shoppers Stop is a part of Future group which has shareholders who are the
voters in the decision-making process. Hence any of the decisions taken by the
shareholders will affect the company and hence they act as a part of micro
environment to the organisation.

Media
Earlier media was not given so much of importance but now we consider media
as a fourth pillar of democracy. All retail chain stores are providing similar
products so it is important for Shoppers Stop to communicate their products to
their present customers as well as potential consumer.

“MACRO ENVIRONMENT
External factors influence the marketing environment very much and these
factors are also uncontrollable i.e. we can’t control them whereas we have to
manage according to the changes in external factors. The growth of the
company is greatly dependent on these external factors and together they are
known as macro environment.

Macro environment majorly consist of basically 6 forces and in short form it is

known as PESTEL”
 PESTEL ANALYSIS

“POLITICAL FACTORS

The political system refers to the policies of government prevailing in the

country. The political forces effects the organizations very much because they
also wants to have profits so they keep changing the laws that can be a problem
for any firm or organization so they need to cope up with all these changes.

 A stable government creates an encouraging investment climate.

 Govt. policies and regulations.

  Taxation policy-VAT, ST and others.

 Problems regarding taking over freehold and real estate.”

 “Government mitigate restriction on FDI leading to easier import of

foreign consumer goods, thereby leading to transfer selection to the
Indian market place.

 High political stability provides a stable and friendly business

surroundings with sure market growth trends. 

ECONOMIC FACTORS
Economic factors have a significant impact on how an organisation does
business and also how profitable they are. Factors include-economic growth,
interest rates, exchange rates, inflation, disposable income of consumers and
business and so on.

 Increase in GDP Growth rate.

 Inflation, FDI, High employment rate.
 Hike in the percentage contribution of the service sector to GDP.
 The organization should also carefully consider the annual percentage
rate and its influence on borrowing ability and perspective towards
investment. 
 It should study and predict the labour market conditions to
grasp however it will attract proficient staff and leverage their skills to
boost business performance.

SOCIOCULTURE FACTORS
These factors scrutinize the social environment of the
market, and gauge determinants like cultural trends,
demographics, population analytics etc.”

 “High disposable income

 Shift in consumer demographics

 Employment Scenario
 Value Added Customer Services
 Increase in Nuclear families
 Increase in working women’s proposition
 Life style changes
 Shift in Product and service preferences
 Increase in Young population giving the country a demographic
advantage

TECHNOLOGICAL FACTORS
These factors pertain to innovations in technology that may affect the operations
of the industry and the market favorably or unfavorably. This refers to
automation, research and development and the amount of technological
awareness that a market possesses.

 Development in technology for fast billing services.

 Better applications of information technology in the modern retail
industry, like in supply chain management, store management, point of
sale and customer relationship management
 IT Industry- Technological implementation. E.g. : CRM, POS, Analytics,
ERP etc.

 Supply chain mechanism

  The development of information and communication technologies has led
towards the adoption of innovative marketing techniques to enhance
collaboration with customers.”

 “The adoption of new technologies has shortened the lifecycle of new

product development. 

LEGAL FACTORS
The role of government is also very much important in the analysis of macro
environment of any firm because government policies effect the environment of
any firm upto great extent. Legal aspect that affects Shoppers Stop are:
 Consumer law
 Right to product information
 Counterfeiting
 Intellectual Property law

ENVIRONMENTAL FACTORS
The forces of an environment also impact any firm or company up to great
extent. It is very important for the company to get knowledge about
environmental changes and keep themselves prepared for every condition.

 Waste Management: Waste in landfills is reduced

 Carbon footprints
 Adopting economical waste management practices in structure units that
are placed in or close to urban areas is very crucial.
 Weather and climate condition.”
SWOT ANALYSIS

“STRENGTHS
 Strong domestic presence with over 80+ stores across India.
 Loyal customer base with more than 7,50,000 first citizen members.
 Increasing footfalls and conversion rates.
 Strongly established management team and skilled labour force.
 Low risk and sturdy business model.

WEAKNESS
 Poor relationship between various disciplines.
 Follows low risk strategy in business of entering into new segment.
 Lesser promotional strategies on both ATL and BTL level compared to
global leaders.
 High spend on store makeover and interior to ensure a pleasant shopping
experience.

OPPORTUNITIES
 Foreign players see it as a preferred partner to make investment in India.
 Could enter into new geographies nationally.
 New locations and store types offer PRIL opportunities to exploit market
development.
 Can enter into Hypercity- High Retail Value Category.”
“THREATS
 Increasing brand awareness among consumers across all socio-economic
class.
 If unorganized retailers are put together, they are parallel to a large
supermarket with little overheads, high degree of flexibility in
merchandise, display, prices and turnover.
 Due to global slowdown, consumer’s purchase power has reduced for top
high value brands.
 Employee shortage and attribution due to rapid growth in retailing.
 Opening up an economy for free entry of foreign players.”

CONCLUSION
After the analysis of the environmental factors effecting Shoppers Stop many
things are cleared in my mind that there are number of factors which effects
the firm and everything can’t be controlled so we have to be dynamic in
nature and keep updating according to the market environment otherwise it
will be very difficult for the firm or company or industry to survive in this
cut throat competition.

Shoppers Stop still need to work in many areas and grab the various
opportunities at the right time. There are many things which need to be
changed and developed as there are very strong competition in the market if
they will not keep themselves updated so they will lose their customers as
well as market hold. In today’s era there in no scope for mistakes because if
we do something wrong there are many others competitors who will take
advantage and grab those opportunities.

As, in the case of the Shoppers Stop I have seen that how the Micro and
Macro environment strongly influence the strategies of the Shoppers Stop
and can have disastrous effects if they are ignored.

It very important for any firm to understand these forces and try to manage
according to them because survival of the firm is totally dependent on the
way in which they are dealing with the market forces.