market analysis of Croma

Gurminder Singh Pratik Bhambri Atish Bhatia Hitesh Bhatla Ronnie Bhaumik Karan Jaggi

2011008 2011018 2011022 2011023 2011024 2011056

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mall, in small or individual lots for direct consumption by the purchaser

Retailing: An overview

Retailing Worlds largest private industry US$ 6.6 trillion sales annually Indian retailing Largest employer after agriculture - 8%* of population Highest outlet density in world Around 12 mn outlets Still evolving as an industry Long way to go

An overview

Retailing: An overview

An overview

Wal-Mart Topmost global Fortune 500 company(3 Consecutive Years) Annual Sales of over US$ 250 bn Indias two largest retail player turnover around US$ 158 mn (Bata) and US$ 102 mn (Shoppers Stop)

Evolution of Indian retailHistoric/Rural Reach Traditional/Pervasiv e Reach Government Supported Modern Formats/ International

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs MelasSource of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution Shopping Experience/Efficiency

Categories of Indian retail

Indian retail

Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc. Dedicated brand outlets Nike, Reebok, Zodiac etc Multi-brand outlets Vijay Sales, Viveks etc Manufacturers/ Exporters Pantaloons, Bata, Weekender

Classifying Indian retail

Indian retail

Modern Format retailers Supermarkets (Foodworld) Hypermarkets (Big Bazaar) Department Stores (S Stop) Specialty Chains (Ikea) Company Owned Company Operated Traditional Format Retailers Kiranas: Traditional Mom and Pop Stores Kiosks Street Markets Exclusive /Multiple Brand Outlets

Large Indian retailers

Hypermarket

Big Bazaar Giants Shoprite Star Lifestyle Pantaloons Pyramids Shoppers Stop Trent Fame Adlabs Fun Republic Inox PVR

Department store

Indian retailers

Entertainment

Opportunities

Anticipated growth

Market size Current market size is roughly 18,10,000 crore 96% of the 12 Million stores are less than 500 Sq. ft. Forecast Growth rate for the retailing industry is roughly 8.3% for 2003-2008 Sales from large format stores would rise by 24-49%** Formal and modern format retailing would enjoy rapid growth

Growth factors

Growth factors

Growth determining factors Government Policy Infrastructure development GDP growth Employment generation and job creation In several new sunrise industries Implies greater purchasing power

The Indian advantage

India ranked 1st in the Global A.T Kearney Retail Development Index

Advantage India

India

RussiaChina

THE SIZE OF THE OPPORTUNITYProducts Total Retail Organised Organised

Rs. Billion6422 980

RetailRs. Billion 50 185

Retail as %of Total 1 19

Food & Grocery Textiles & Apparel

Jewelry & WatchesConsumer durables Pharmaceuticals Home Solutions

554415 364 351

3043 10 32

510 3 9

Books, Music & GiftsOthers Total

1151159 10360

15111 476

1310 5

Infiniti Retail Ltd.

Tata Teleservic es

Watches

Tata RetailEyewear Jewellery

Trent

1987 o Titan launches exclusive store in Bangalore. 1996 o Tanishq is born as Indias first branded jewellery store in Chennai. o Tata Teleservices launches telecom retail store, Tata Indicom, in Hyderabad. 1997-98 o Trent is born. Tata Group takes plunge into fashion retail. o Acquisition of Littlewoods store in Bangalore, converted into first Westside. 1999 o First Greenfield Westside store opens in Mumbai. 2002 o Group Chairman Ratan Tata for the first time mentions retailing as an emerging opportunity for the group. Tata sees `10,500 crore revenue potential for the group from retail by 2012. 2004 o Trent enters hypermarkets with Star Bazaar in Ahmedabad. 2005 o Trent acquires Landmark, the books and music retailer.

The Retail Journey of TATA Group

2006 o Infiniti Retail, a 100 per cent subsidiary of Tata Sons, is born. o Infiniti forms technical collaboration and sourcing partnership with Woolworths of Australia. o Croma, part of Infiniti Retail, opens first electronics store in Mumbai. 2007 o Trent ties up with Italian apparel retailer Benetton to run and manage the fashion brand, Sisley, in India. o Titan introduces its eye wear range Titan Eye Plus; opens first store in Bangalore. 2008 o Trent signs agreement with Tesco, the worlds third-largest retailer,to tap the latters retail expertise and technical know-how. 2009 o Trent signs a JV with Spains Inditex to develop and promote Zara stores in India. 2010-11 o Group turnover from retail touches `9,544 crore. o Emerges as the second largest multi-format retailer in India in revenue after Future Group. Tata Coffee is expected to launch Starbucks very soon.

First national, specialist retail chain : consumer electronics and durables. Technical and strategic support : Woolworth Promoted by : Infiniti Retail Ltd (100% subsidiary of Tata Sons) 6,000 products, 180 brands, 8 categories, 50 stores

About CROMAOut let Parent group

Specialist Consumer Electronic and durable Retail Chain50 out lets Located in India Infiniti Retail Ltd.

Managing DirectorFounded Head quarter Industry website

Ajit JoshiOctober 9, 2006 Juhu , Mumbai Retail www.cromaretail.com

Tag line

We Help You Buy.

OBJECTIVESFocus : 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.

Market share5% 13% 37% Ezone

CROMA is covering 18% in terms of market share in retail sector of consumer durable and electronic segment. The biggest competitor in this eZONE is capturing 37% of the market.

NEXT

18%

Croma

Reliance digital

NEXT goes with 27% in the market and is been 2nd biggest challenge to be look forward by CROMA.RELIANCE DIGITAL capturing 13% in retailing of electronics segment. OTHERS contributing 5 % to the retail sector.

27%

others

NEW ARRIVALS

IN THE NEAREST CROMA STORE AROUND YOU VERY SOON

CROMA 3D LED TELEVISION

OTHER NEW ARRIVALS IN LINE

MICROMAX ANDROID BASED SMARTPHONES :

Micromax Android phones launched in India on 12th November.Croma would be the first one to Retail the android phones of Micromax in India. Resulting in increasing our product width to a good extent.

Computers & Laptops

Home Communication Entertainment 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

Large Appliances Split Air Conditioner Window Air Conditioner Refrigerators Washing Machines

Small Appliances Dish Washers Dryers Kitchen Appliances Vaccum Cleaners Irons Lightening Personal care

Notebooks Desktops LCD Monitors Printers and Office solutions Storage Media Webcam Input Devices Softwares Networking devices

Above the Line Below the Line Promotional Techniques

TV

Advertisement Radio Advertisement Board Hoardings Brochures and Booklets Gift cards and Coupons Speeches and Trade shows Online contest and Games Sponsor events and Games

Social

Media Activation SUN SET Services E-commerce

CURRENT LOGO

UPCOMING LOGO

CrOmAOLD PUNCH LINE NEW PUNCH LINE

We Help You Buy

Look for all, search for best

PLACE STRATEGY

In Mumbai Locations are... Juhu, Dahisar, Malad, Santacruz Airport, Vashi, CBD Belapur, Bhayandar Mulund Sion

NEW PLACE STRATEGY More Tier 1 Cities and Tier 2 Cities : Tier 1 : Kolkata Chandigarh Ahmadabad Lucknow Dheradhun Bhopal

Tier 2 :

Opening small Croma zip stores basically on the airports. Area of 3000 sq.ft. suitable enough to give a feel of cromas product. With an intent to meet and interact with as many people as they can covering a good market place.

PRICE STRATEGY

Value pricing Promotional pricing Low interest financing Psychological discounting Special event pricing

Differentiated Pricing Time pricing

Bundling

Value for your moneyBest products with most reasonable pricing. Lowest down payments and easy EMIs. Best discounts and offers. Warranties and guarantees to your most likings.

Time Pricing

Festive promotional pricing

Private

label products are usually manufactured by a company and sold under the brand of another company. This is referred to as store brands. They deliver strategic and tactical benefits to a retailer and are emerging to be a strong factor in any successful retail strategy. They comprise nearly 40% of your shopping bags while you shop at retail outlets like Westside, Shoppers Stop, Reliance Fresh, Big Bazaar and so on.

Nearly 40-50% of the store space was dedicated to store brands. These products shared the shelf space with other branded products. These products are not differentiated from the other brands in terms of store space. These products are priced substantially lower than the other brands. The store brands were not limited to a particular category.

After

two years of research and development, Croma the consumer electronics retail chain of the Tata group finally launched its private label Croma in December 2008. The retailer currently sells 30-odd products under the Croma name such as wine coolers, handy vacuum cleaners, bag-less vaccum cleaners, bendable massagers, air-conditioners, irons and vacuum cleaners. It is 10 to 15 per cent cheaper than national brands.

It

has recently launched its own laptops in two variants and sold more than 125 pieces in three weeks. The products are being imported from places like Hong Kong and Shanghai under a partnership with Australia-based Woolworths.

Croma

plans to invest Rs 50 Crores for opening new stores this year. Croma plans to open 100 stores in India by 2012. 'Croma' brand said it will soon start selling products online it is targeting at least 10 per cent of the company's total retail sales from digital medium.

It

is also in the process of setting up a dedicated after sales service facility for consumers, who buy Croma branded private label products. Good quality products at the right price. Exporting the brand to other countries. Share of revenue from the private label will be kept below 20 per cent

BRANDINGBranding is not about getting your target market to choose you over the competition, but it is about getting your prospectus to see you as the only one that provide a solution to their problem.

Delivers the message clearlyConfirms your credibility

Connects your target prospectusMaintain users loyalty

Timing

Lack of demand

location

Financing

Take inventory of your social media arsenalWordPress Blogger LinkedIn Facebook Twitter Flickr Friendfeed YouTube SlideShare

Tips & Contests for FB fans

BRANDING

Youtube an place where fans can find their perfect product by filling in a few details