A Presentation

On
Retail Institutions:
A Case Study on Shoppers’ Stop
Presented By:
Shanu Kumar (2009MB0008)
Neha Lohani (2009MB0009)
Punam Raj (2009MB0012)
Puja Taparia (2009MB0034)
Megha Avinaw (2009MB0040)
Retail Institutions
A retail institution is the basic format or structure of a
business. It plays a crucial role as retail institution directly
contact with the consumers.

We examine retail institutions from the following three

perspectives:
Ownership
Store-based strategy mix
Nonstore-based retail strategy mix & nontraditional retailing
Retail Institutions by Ownership:
1.Independent
An independent retailer owns one retail unit.
Ease of entry: Low capital requirements
No or simple licensing provisions
Leads to intense competition

2.Chain
 A chain retailer operates multiple outlets under common
ownership ;engages in some level of centralized purchasing.
Less expensive.
Retail Institutions by Ownership:
3.Franchising
It involves a contractual arrangement between a franchisor
(a manufacturer, wholesaler, or service sponsor) & a retail
franchisee
The contract allows the franchisee to conduct business under
an established name and according to a given pattern of business.
Franchisee pays an initial fee & a monthly % of gross sales for using
exclusive rights to sell goods or services in an area.

4.Leased Department
It is a department in a retail store-usually a department or specialty
store-that is rented to an outside party.
It normally pays a % of its sales.
Retail Institutions by Ownership:

5.Vertical Marketing System

 It consists of all the levels of independently owned businesses
along a channel of distribution.
Goods & services are distributed through one of these systems:
independent, partially integrated & fully integrated
Three levels of firm: manufacturer, wholesaler, retailer

6.Consumer Cooperative
It is a retail firm owned by its customer members.
A group of consumers invests, elects officers, manages
operations, and shares the profits or savings that accrue.
Retail Institutions by Store-based Strategy Mix:
A. Food-Oriented Retailers
1. Convenience Store
 It is typically a well-located, food-oriented retailer that is
open for long hours & carries a moderate number of items.
Average to above average price, ease of shopping.
2. Conventional Supermarket
It is a departmentalized food store with a wide range of
food & related food products; sales of general merchandise
are rather limited.
Retail Institutions by Store-based Strategy Mix:
A. Food-Oriented Retailers
3. Food-based Superstore
 It is larger & more diversified than a conventional
supermarket but usually smaller & less diversified than
a combination store.
4. Combination Store
It unites supermarket & drugstore items or general
merchandise in one facility.
It is located in community shopping center or isolated
site.
Retail Institutions by Store-based Strategy Mix:
A. Food-Oriented Retailers
5. Box (limited-line) store
 It is a food-based discounter that focuses on a small
selection of items, moderate hours of operation, few
services & limited manufacturer brands.
6. Warehouse Store
It is a food-based discounter offering a moderate number
of food items in a no-frills setting.
It concentrates on special purchases of popular brands,
offer little service, posts prices on shelves & locates in
secondary sites.
Retail Institutions by Store-based Strategy Mix:
B. General Merchandising
1. Specialty store
It concentrates on selling one goods or service line, such
as young women’s apparel.
Most popular are apparel, personal care, auto supply,
electronics, toys, books, jewelry etc.
2. Traditional department Store
It is a large retail unit with an extensive variety of goods
& services that is organized into separate departments for
purposes of buying, promotion, customer service & control.
Retail Institutions by Store-based Strategy Mix:
B. General Merchandising
3. Factory Outlet
It is a manufacturer-owned store selling closeouts,
discontinued merchandise, canceled orders and sometimes,
in-season, first-quality merchandise.
It straddles the line between wholesaling & retailing.
4. Variety Store
 It handles a variety of inexpensive & popularly priced
goods & services, such as apparel & accessories,
costume jewelry, candy, toys etc. in the price range.
 There are open displays & few salespeople.
Retail Institutions by Store-based Strategy Mix:
B. General Merchandising

5. Membership Club
 It appeals to price-conscious consumers, who must
be members to shop there.

6. Flea Market
 At a Flea market, many retail vendors sell a range of
products at discount prices in plain surroundings.
Retail Institutions by
Nonstore-based retail Strategy Mix & nontraditional retailing:

1. Direct Marketing
 In Direct marketing, a customer is first exposed to a
good or service through a non-personal medium(direct
mail, TV, radio, magazine, newspaper) & then orders by
mail, phone, or fax-and increasingly by computer.
2. Direct Selling
 It includes both personal contact with consumers in
their homes(and other non-store locations such as
offices) and phone solicitations initiated by a retailer.
 Cosmetics, jewelry, vitamins, household goods &
services, vacuum cleaners, & magazines, newspapers.
Retail Institutions by
Nonstore-based retail Strategy Mix & nontraditional retailing:

3. Vending machines
 A vending machine is a cash or card operated
retailing format that dispenses goods (like
beverages) or services (like games).
 It eliminates the use of sales personnel & allows 24
hour sales placing machines at places wherever
convenient for consumers.
4. E-retailing or World Wide Web
 This is the most prevalent way of retailing via Internet.
Case Study:
Shoppers’ Stop

Started: October 27, 1991

Owner: K. Raheja Group of Companies, India’s biggest
hospitality & real estate player
Sister Stores: Crossword Bookstores, Home Stop, Brio,
Hyper City, Mother Care, Time Zone
Types of Retail outlets: Apparel, Footwear, Jewelry, Toys,
Accessories, Fragrances, Cosmetics
No. of Stores: 35
Marketing strategies
1. Guerilla Marketing
It involves unusual approaches such as intercept encounters in
public places, street giveaways of products, any unconventional
marketing intended to get maximum results
from minimal resources.
2. Interactive Marketing (Customization)
It is a strategies adopted by retailers where they allow
customers to customize the product as per their preference.
Shoppers‘ Stop is able to carve out this facility in a retail store.
The concept that has already made a debut at Shoppers‘ Stop outlets in
Mumbai, allows customers— who are referred to as guests— to go
through various stages of activity in creating their own teddy bear (or
other stuffed toy), including choosing a stuffed animal, stuffing it, giving
it a heart, stitching, fluffing, naming and dressing it.
4 P’s of Shoppers’ Stop
Product:
 Identified the need for and created a suite of brands that reflect styles,
international class and fashion.
 Private brands have been introduced and developed after a careful analysis
of Customer Requirement.
 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 men's and women's outerwear are retailed in India
exclusively through the chain.
4 P’s of Shoppers’ Stop
Price:
Shoppers Stop follows Premium Pricing Strategy that
includes selling of High Quality Products at a High
Price.
Place:
Selecting the location for the store is in the hands of
retailers because before selecting the location they
have to check many factors like walking traffic,
competitor, parking, infrastructure, etc They also have
to decide that they want to buy the site or they will
take it on rent. So after deciding all these things they
reach to the final decision.
4 P’s of Shoppers’ Stop
Promotion
Communication Strategy – Reaching out to the
customers in their own style and language
Denim festival
Customer Care association
First Citizen Card
Surprise sale
Valentine sale
Thank You
any questions
or suggestions
are most welcomed