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Group 2 - Retail Business Plan
Group 2 - Retail Business Plan
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Group 2
India is one of the rapidly expanding pet care markets in the world. There is growth in all categories, such
as pet food, pet pharmaceuticals, grooming, toys and accessories. The principal factor of this growth is
urbanization, rise in nuclear families, changing notion towards pets and pet owners. It is expected that by
2020, the pet care market will expand by more than 25 per cent and will lead to expansion in the business,
opportunities and perhaps a better future of Pet Care utilities in India . India is home to a $347 million pet
care market as of now and emerging as one of the biggest markets in coming years.
Market Growth:
It is expected that by 2022 , the Pet care market in India will grow by 14% annually to become a $490
million (₹33000 million) market.
Also, by 2022 Pet food market alone is projected to cross $310 million mark (₹20000 million) .
Among the pet food care market – the Dog food sub segment is expected to continue its dominance as the
largest revenue generator followed by cat and fish food sub segments.
Market Trends:
The Indian pet market was valued at USD 334.3 million and a projected growth at a CAGR of 13.9% during
the forecast period (2019-2024). Therefore, rising apprehension for pet health and nutrition is acting as a
principal factor behind the development of the market.
COMPANY OVERVIEW
Shopper’s stop is a pioneer in the department store Industry and is owned by the “Raheja corp.
group”.
Established in 1991 and headquartered in Mumbai with approximately 87 stores in 44 cities in
the country . As per the current situation it is among the leading retailers who have catered to
meet varying needs of the customers like its counterparts “Mark & Spencers”, “Lifestyle”, “Big
Bazaar” and “D-Mart”.
Shoppers Stop sells clothing, accessories, handbags, shoes, health and beauty products,
cosmetics, home décor and home furnishing products.
Pet-care Industry is one of the upcoming and soon to be fast emerging market has so far been
an untapped affair. Although there are many competitors serving this need, their expertise is
quite varied and their locations are scattered across the town. Shopper’s stop is a premium
choice for consumers has an already established brand image where one can find all the
utilities they require, will generate a platform where it can resell the various pet care products
form the geographically scattered vendors providing a one stop solution for all its customers
and thus offering a unique value proposition.
VISION
To be an inspirational and trusted brand, transforming customer's lives through fashion and
delightful shopping experience every time and to be industry representatives of premium quality
pet products
MISSION
To provide the customer with one stop solution for their pets, by ensuring optimum customer
service and 100% authentic products.
VALUES
Pet care industry is expanding and changing in a global presence. It is because of the growth of
pet population, trends inspired by pet humanization as well as the evolving demand of pet care in
emerging markets. It is expected that in India, by 2020, the pet care market will expand by more
than 25 per cent and will lead to expansion in the business, opportunities and perhaps a better
future of Pet Care utilities in India thus leading to a growth in all categories, such as pet food, pet
pharmaceuticals, grooming, toys and accessories.
BUSINESS OBJECTIVES
• To cater to the untapped market of miscellaneous pet care products.
• To educate and raise awareness about pet and animal care.
To generate enough traction so as to increase footfalls at the one stop solution
Department store for all customer needs
TEAM
The team is headed by CEO Mr. Venugopal G. Nair.
There are 14000 employees currently working at Shoppers Stop
Shoppers Stop believes in hiring young, talented and innovative people
MARKET ANALYSIS
Brand Image: They have always believed in the world of limitless possibilities.
Their innovation and being able to tackle the day to day change in technology has always been
on top of the list. Due to their strong presence in the retail business, they have created a strong
benchmark to other sets of retailers in the business. The company has been successful in keeping
its brand differentiated and valued with a strong history and superior quality
Market Presence: Shoppers stop has a very strong presence with 83 stores at 38 cities in India.
They also have reached to their customer through newly revamped online stores, where the
customer can access their products online. Through the Omnichannel strategy, they have reached
to millions of customers across length and breadth of the country. They not only have the online
presence from their own site but also has partnered with Amazon to provide with the complete
online experience to their customer. It also plans to extend 4 to 5 stores every year.
One-stop shop: The retail department store provides with a lot of variety of products. It is a one-
stop shop for multiple categories of products from apparel to cosmetics to home décor products.
It offers more than 400 of the finest international and national brands across the categories. They
have 400+ international brands partnership with (Desigual, Wrong, RS by Rocky Star, Femina
Flaunt, Love Generation). It has products available for men women and kids which make the
store more familiar to all the kinds of people while increasing its popularity.
Loyalty programme: Shoppers stop loyalty program which is also known as First Citizen has
always been talked in the market. The company loyalty program is among the oldest in the
industry over 4.4 million customers driving 72 percent of its sales. The chain has more than 8.8
million fans on Facebook and 12,7900 in Twitter. It also expects to bring 25 to 30 percent of
annual sales. Loyalty program has helped a lot in building strong brand presence in the mind of
customers.
Promotional strategies: Promotional strategies of shoppers stop have been through campaign
and television advertisements, whereas its competitor like the future group has adopted ATL and
BTL form of advertisements. The promotional strategies of Shoppers stop are mostly done
through ATL with the low focus on the BTL form of promotional strategies. For example-
sponsorship, in-store advertisements etc whereas Future group advertisements and its campaign
are mostly in the form of print media, radio, and major television channels and in the social
media. It also has several portals and own official sites.
Low risk strategy: Shoppers stop follows a low-risk strategy where the company is growing
very steady. Though being a pioneer in the retail industry its strategy and innovation is growing
at a very slow pace. The Omnichannel strategy was introduced in 2018 where another competitor
has gone a long way. The Amazon tie-up was introduced in 2018 which could have been done
way earlier. It follows a very low risk-taking strategy which might be a very slow process for
growth to the company.
Technology: Shoppers stop has always been known for introducing new technology in the retail
sector it is their constant endeavour to experiment and deploy new technology solutions to create
a pleasant shopping experience for customers. The initiative made recently are Click and collect
and ship from the nearest store explored the multi-channel experience into the stores, the
personal program is offered to the stores wherein the associates are empowered through mobile
devices for customer interaction. Technology can bring up some innovation in the future where
the customer can have a better experience with the stores to build and strengthen the brand
image.
Private label brand: The increasing number of private label brands has created chaos in the
retail industry. Profit of most of the other retail stores is obtained from their own private label
brand. Shoppers stop that also has its own brand is facing a downfall in its private brands. They
have hired a head of design for its in-house brands but have always been a threat with increasing
of private brands and their share of profit with other merchandise.
Discounts and offers: One of the major challenges that Shoppers Stop, and other brick-and-
mortar retailers face is increasing pressure from e-commerce rivals that offer significant
discounts to shoppers. The discounts and offers have the biggest impact on the shoppers.
Discounts and offers to create more attention to the customers and India also being the price
sensitive country discounts and offers plays the major role in the attraction of the products,
where shoppers stop has lacked in giving a huge number of discounts to their customer online
and is a threat to the business operating its business Phydigital.
Competitive Analysis
Shoppers’ Stop Ltd, the 18-year-old retail chain promoted by K Raheja Corp, is plans to
expand over the next three years to catch up with competition.
Though the company was among the first movers in the country’s organised retail
market, it has about 1.9 million (sq. ft of retail space today. It is considered a slow mover
compared to competitors such as Kishore Biyani’s Pantaloon Retail, which has over 10
million sq. ft of space, or Reliance Retail, which has over 950 stores covering 4 million
sq. ft. Aditya Birla Retail has 700 stores with over 2 million sq. ft space. Both Reliance
and Aditya Birla started operations in 2006.
Shoppers’ Stop plans to add 1 million sq. ft over the next three years, the highest addition
in the company’s history. Currently it has 29 department stores and five Hyper city
outlets, apart from Crossword bookstore, and specialty store MAC, among others.
Gross turnover during the period grew 15 per cent to Rs 427.4 crore. During the
slowdown, retailers had either closed several loss-making stores or put expansion on the
backburner to save cash. Shoppers’ Stop, too, pulled out from unviable ventures. It closed
a couple of Crosswords and airport retail store Stop & Go in Mumbai. It pulled out of a
catalogue retailing venture with UK’s Argos Group and moved out from food business. It
also made UK’s Mothercare store a shop-in-shops instead of a standalone property.
CUSTOMER SEGMENTATION
Pet owners/ pet lovers can be of varied age groups. They all have different reasons of
owning a pet henceforth it will not be fair to segment this market based on the
psychographic or age factors.
TARGET MARKET As per our targeted segment analysis, the middle aged female baby
boomers constitute the largest and most affluent sub-segment of the pet product market in
general and of dog owners. This company will try to channelize and streamline their efforts such
that it can target to the needs to this sector with the best of it’s ability. Further split of the target
market as per age is as follows.
Marketing By
MARKETING PLAN
Product : Our brand Re-tail will be rolling out it is offerings in various phases. In our first
phase we have an initial roll out plan of 16 products which are some of the most demanded pet
care products in the industry. Unfortunately, the current vendors matching these needs are a few
and offer expensive range of items. From Inflatable collars to protect your pet from injuries to
Self-dispensing feeders, we have them all. It is a one stop solution for all your pet care needs.
Place: The store website will be e-commerce ready, albeit not all products will be available
online. Rather, we will sell online the top 20% of products that have historically been the best
sellers, because that is the most efficient to manage and will benefit our customers the most.
Apart from e-commerce, we plan to open stores in malls, hypermarkets, and superstores, among
other places. We'll also devise solutions that involve providing pet food delivery to your home.
Our retail store's primary target audience will be residents of tier 1 cities such as Delhi, Mumbai,
Bangalore, and Pune.
Promotion : A great way to market your pet shop is through the internet. We will advertise our
store through following channels:
Blogs: Start a pet blog to determine customer needs and educate them about your
products and services.
Business listing sites: Include your pet shop on business listing sites to gain exposure.
Social media: Use social media to find out about the latest trends, such as National Dog
Day or Love Your Pet Day, and use these dates as an opportunity to spread the word
about your business.
E-mail newsletters: Create a monthly newsletter that can be emailed to customers. Your
newsletter can include various sections such as existing and new products and services, as
well as special events, holidays, and sales
Business Cards And Brochures :We will design attractive business cards and brochures
to promote our store and place the unique logo of our store in them.
Suppliers
Low High
Low
Production
In a retail business like that of spencer, we do not produce, we only resell. Spencer’s store list
our various brands with different kinds of utilities up for sale, hence it is a collaborative space
and not a production powerhouse. As a part of modern day retail forecasting, we will be using
AI driven assisted techniques to assess the demand. The Demand forecasting can be done in both
Qualitative and Quantitative forms. Some of the methodologies used will be:
The Qualitative forecasting methods will help in understanding the consumer behavior so that
appropriate products can be listed as per the customer preference. The idea is to construct an
OGIVE that will analyze the various SKU’s being offered at Specner’s.
Those generating higher volumes will have to be promoted and those generating lower returns
need to be dropped off the shelf. This will constantly provide an opportunity for Business
partners to innovate.
The Quantitative methods would directly relate to the
demand forecasting during a sales season. Techniques
such as regression and exponential smoothening using
AI driven software will help in understanding the
interdependence of various factors on the consumer
behavior whereas techniques such as Time series
analysis will help in accurately predicting/forecasting
the seasonality in the business.
Facilities
We plan on owning multiple retail spaces across Tier-1 cities of India preferrably those states
with maximum contribution to the GDP of the country. Since owning a pet is a growing trend
among the upper middle class of the country, so as per the demographical analysis as well as
strategic planning we plan on having the facilities across those regions which have the maximum
Number of affluent buyers.
Equipment
Some of the technology that will be used in Retail stores across the nation are:
High performance Computers Que Management system Store navigation & Layout
devices
Inventory
A 9 step approach towards ensuring efficient inventory will be followed:
FINANCIAL PLAN
Shoppers Stop
Financials.xlsx