E-Promotional Stratergies in Select Retail Outlet

e-Promotional strategies in the selected Retail Outlets_____________

e-PROMOTIONAL STRATEGIES IN SELECT RETAIL OUTLETS IN BANGALORE

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY BY Gaurav Sharma (Reg no: 05XQCM6025) Under the guidance and supervision Of

Dr. K.V.Prabhakar Senior Professor M P Birla Institute of Management Bangalore

M P BIRLA INSTITUTE OF MANAGEMENT (Associate Bharatiya Vidya Bhavan) BANGALORE MAY 2007

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e-Promotional strategies in the selected Retail Outlets_____________

DECLARATION

I hereby declare that this dissertation entitled “e-Promotional Strategies in the select Retail Outlets in Bangalore” is the result of my own research work carried out under the guidance and supervision of Dr. K.V. Prabhakar, MPBIM Bangalore.

I also declare that this dissertation has not been submitted earlier to any Institute/Organization for the award of any degree or diploma.

Place: Bangalore Date: (Gaurav Sharma)

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e-Promotional strategies in the selected Retail Outlets_____________

CERTIFICATE

I hereby certify that this dissertation entitled “e-Promotional Strategies in the select Retail Outlets in Bangalore” has been prepared by Gaurav Sharma under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M.P.Birla Institute of Management, Bangalore.

Place: Bangalore Date:

(Dr. Nagesh S Malavalli) Principal

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e-Promotional strategies in the selected Retail Outlets_____________

CERTIFICATE

I hereby certify that this dissertation entitled “e-Promotional Strategies in the select Retail Outlets in Bangalore” is the result of research work carried out by Gaurav Sharma under my guidance and supervision.

Place: Bangalore Date:

(Dr. K V Prabhakar) Guide

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e-Promotional strategies in the selected Retail Outlets_____________

ACKNOWLEDGEMENT

I extremely thankful to all those who have shared their views, opinions, ideas and experiences with me in carrying out this research work. I am particularly indebted to Dr.K.V.Prabhakar, Senior Professor, M P Birla Institute of Management, Bangalore for his guidance.

I extend grateful thanks to Dr. Nagesh.S.Malavalli, Principal, M P Birla Institute of Management, Bangalore for having provided me with the necessary academic support.

(Gaurav

Sharma)

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e-Promotional strategies in the selected Retail Outlets_____________

EXECUTIVE SUMMARY

The most important objectives of this study is to find out what appropriate e-promotional strategies should be adopted by selected Retail units to reach more customers and increase sales. To analyze the current promotion strategies of selected group of Retail units, to identify appropriate e-promotion strategies this will provide its customers with the different shopping experience, to recommend a roadmap for implementation of e-promotion strategies.

The main problem was that what appropriate e-promotional strategies should be adopted by this selected group of Retail units to reach more customers and increase sales. The main objective of the study was to recommend a roadmap for implementation of e-promotion strategies. To analyze the current promotion strategies of Shoppers Stop.

The major findings of this Research highlight customer expectations from this Retail malls and their views about the e-Promotional strategies followed by this selected Retail units. How effective is this promotional strategies and how useful it is for the customers.

To eliminate the problems which comes in terms of blocking companies to reach their customers through e-Promotions and to improve the effectiveness there are many recommendation provided for this retail units, which would help them to know their customer views, customer expectations and come up with the better strategies by keeping this criteria in to mind before they plan for particular strategy.

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TABLE OF CONTENT
PARTICULARS INDUSTRY PROFILE Retail Industry PROMISING SECTOR PROFILE OF SELECT RETAIL OUTLETS IN BANGALORE Garden city’s mall Bangalore City Highlights Shoppers Stop The Forum Mall Bangalore Central Globus Westside e-PROMOTIONAL STRATEGIES e-PROMOTION STRATEGIES OF SELECT RETAIL OUTLETS Shoppers Stop(First Citizen Club) Globus(Privilege Club) Westside(Club West) PROFILE OF RESPONDENTS Problem Statement Research Objective Research Design Research Limitations DATA ANALYSIS AND INTERPRETATIONS MAJOR RESEARCH FINDINGS RECOMMENDATIONS ANNEXURE: Select Bibliography; Questionnaire and Directions for further research DIRECTION FOR FURTHER RESEARCH
21 25 29 32 33 33 33 33 34-55 56 58 59 65 8 8 9 11 13 14 16 19 1 5

PAGE NUMBER

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LIST OF TABLE AND GRAPHS
PARTICULARS Total annual household income Categories of products which the respondents purchase Retail stores where the respondents purchase their requirements Mode of purchase of the products Mode of purchase during the past six months Quantum of spending on the purchase Preferred stores for making purchases Reasons for their preference Online purchase Sales promotion schemes of these retail units Type of promotional schemes the respondents are aware of Awareness of online promotions Preference towards e-Promotions The reasons for favoring e-Promotion Reasons for not preferring e-Promotion The level of awareness of online promotions The ranking of effectiveness of online promotional activities(Rating 1 least significant and 5 highly significant) The loyalty programs of any retail outlet Membership of any retailing club Respondents' preference on any particular retail club Satisfaction level of respondents with the activities of the retail clubs in which they sought membership PAGE NO.
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

FIGURE NO.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

50 51 52 53

17 18 19 20

54

21

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INDUSTRY PROFILE THE RETAIL INDUSTRY
India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually.

Modern retail in India could be worth US$ 175-200 billion by 2016. With the economy booming, competition in the marketplace is fierce. According to 'Retail in India Getting Organized to Drive Growth', a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 5 per cent compounded annual growth rate and expected revenues of US$ 320 billion in 2007. Rising incomes, increasing consumerism in urban areas and an upswing in rural consumption will fuel this growth to around 7-8 per cent.

KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion. .

Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is to increase the number of their outlets in a city, and also expand to other regions, revealed the Jones Lang LaSalle third annual Retailer Sentiment Survey-Asia. Deutsche Bank's research report on 'Building up India' says India's burgeoning middle class will drive up nominal retail sales through 2010 by 10 per cent per annum. The country may have 600 new shopping centres by 2010. ________________________________________________________________________ M.P. Birla Institute of Management

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Food retail
Food dominates the shopping basket in India. The US$ 6.1 billion Indian foods industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda for modern trade formats. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items, the branded food industry is homing in on converting Indian consumers to branded food.

The mobile revolution
The retail market for mobile phones -- handset, airtime and accessories -- is already a US$ 16.7 billion business, growing at over 20 per cent per year. In comparison, the consumer electronics and appliance market is worth US$ 5.6 billion, with a growth rate that is half of the mobile market.

Kids’ retail
When it comes to Indian children, retailers are busy bonding--and branding: • • • • • Mona Lisa, the Versace of kids is coming to India. Global lifestyle brand Nautica is bringing Nautica Kids. International brand Zapp tied up with Raymond to foray into kids' apparel. Disney launched exclusive chains which stock character-based stationery. Pantaloon's joint venture with Gini & Jony will set up a retail chain to market

kids' apparel. • Swiss kids wear brand Milou is collaborating with Tirupur-based Sreeja

Hosieries. • Turner International India Pvt Ltd. will launch Cartoon Network Townsville and

Planet POGO--two theme parks designed around its channels--in the National Capital Region.

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e-Promotional strategies in the selected Retail Outlets_____________ • Sahara One Television has also signed a Memorandum of Understanding to

source content from Spacetoon Media Group, Middle East's largest kids' entertainment brand for animation and live action content. Leading the kids' retail revolution is the apparel business, which accounts for almost 80 per cent of the revenue, with kids' clothing in India following international fashion trends. According to research firm KSA Technopak, the branded segment comprises US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion. Industry experts say kids' retailing will touch annual growth of 30-35 per cent. Toys, stationary, sportswear, outerwear, tailored clothing, eyewear, watches, fragrance, footwear, theme parks, TV channels… the segment is growing rapidly at 10 per cent per annum. Margins are in the range of 20-25 per cent (for dealers and distributors), while companies enjoy an average gross margin of about 10 per cent.

Agricultural retail
Agriculture across India is heralding the country's second Green Revolution. 14 states, including Maharashtra, Punjab, Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing Committee (APMC) act this year, along the lines of the Model APMC Act, '02, which allows farmers to sell their produce directly to buyers offering them the best price. Agricultural sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services related to agro and allied sectors are open to 100 per cent FDI through the automatic route. • For its e-Choupal scheme, ITC built internet kiosks in rural villages so farmers

can access latest information on weather, current market prices, foods-in-demand, etc. • With a US$ 5.6 billion, multi-year investment in agriculture and retail, Reliance

Retail will establish links with farms on several thousand acres in Punjab, West Bengal and Maharashtra.

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e-Promotional strategies in the selected Retail Outlets_____________ • Field Fresh, planning to become India's first large-scale exporter of produce, will

annually pay farmers over US$ 30,000 to lease land for vegetables, to hire tractors and to pay their workers. • Besides a five-year program with the Punjab government to provide several

hundred farmers with four million sweet-orange trees for its Tropicana juices by 2008, PepsiCo--with agriculture exports worth US$ 40 million--also introduced farmers to high-yielding basmati rice, mangoes, potatoes, chilies, peanuts, and barley for its FritoLay snacks. • Export potential and a rapidly growing domestic demand for reliable produce

from new supermarket chains is driving change. With 77 per cent of India's population relying on agriculture for a living, improved efficiency and new markets can benefit a large number of people.

International retailers
• The Australian government's National Food Industry Strategy and Austrade

initiated a test marketing food retail in India wherein 12 major Australian food producers have tied up with India-based distributor AB Mauri to sell their products directly at retail outlets. • The largest-ever 150-member British business delegation in India committed

investments in the areas of food processing, agri retail and manufacturing. It is also likely to press for the liberalization of sectors like financial & legal services and retail. • US-based home delivery and logistics company, Specialized Transportation Inc,

will enter the Indian market through a strategic alliance with Patel Retail, a subsidiary of Patel Integrated Logistics. • Among other big international players, Wal-Mart has announced its plans for

India in partnership with Bharti, Tesco is sure to try again, and Carrefour too might finally find the right partner.

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Retail reform
The Government regulations allow 100 per cent FDI in cash and carry through automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators. Now, the Government also proposes further liberalization in the retail sector allowing 51 per cent FDI in consumer electronics and sports goods.

The retail road ahead
The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated at only US$ 8 billion. However, the opportunity is huge--by 2010, organized retail is expected to grow to US$ 22 billion. With the growth of organized retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.

INDIAN RETAIL INDUSTRY - A PROMISING FUTURE FOR THE INVESTMENTS

Retail industry in India is greatly fragmented comparing to the developed and other developing countries. This presents enormous prospective for the structured retail industry to flourish throughout the country, as the market for the final product is huge. Retail industry is largely led by private companies. The distribution for fast-moving consumer products includes many layers like carrying and forwarding agencies, distributors, wholesalers, stockiest and retailers.

The Indian retail environment has attained $ 210bn quiche, witnessing a strong development pace of five percent per year (according to a latest survey by Price Waterhouse Coopers). As per the estimation 200 malls, presenting additional 50mn sq ft of retail space will be ready in next two years. Existing retail space in 160 malls is nearly 32mn sq ft.Organized retailing now accounts for three percent out of the total retailing, ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ however is predicted to extend to 10 percent by the year 2010. In other means, organized Indian retail sector would triple its share of the total market within the coming four years, generating new 8mn jobs, in addition to the 21mn jobs that are already created by retail sector. As per the estimate, the current retail business witnesses more than 12mn retail outlets, which include all shapes and formats.

The analysts foresee bright future of the retail sector. A huge number of shopping malls, nearly 100, have come up in the recent past, generating 20mn sq ft. retail space, extending more space of about 12mn sq ft to it. Nearly 60 malls are on the verge of completion and may be operational by the end of current financial year. A forecasted number of nearly 200 malls, in a move to make additional 50mn sq ft of retail space, will be completed within the next two years.

According to analysis by KSA Technopak, India has lowest per capita retail space accessible around the globe. The study depicts that India require generating at least 110mn sq ft of additional retail space a year for many years, only to meet the demand generated on account of a continued GDP growth rate of nearly 6 percent. Hitherto, the Central Government as well as State Governments and local municipals have failed to match steps with drag on the economy of an incompetent retail sector. This space crisis is leading to a condition, in which prime locations demand extremely high rates.

To make India's emerging retail market open to foreign direct investment (FDI) has been on the Government agenda since long time. A number of transformations and practices were being done, but the sources disclosed that the policy, which is under finalization is such that FDI in the retail market would lead towards the rear connections of manufacturing and production and not only set aside to open of retail stores of global and imported brands.

The global retail giants like Wal-Mart, Gap, Tesco, Versace, K-Mart/SEARS, Carrefour, ZARA, FCUK, Fendi, NEXT, Mother Care, lKEA, Trussardi, DKNY and Debenhams have made plans to march in the Indian market. ESPRIT, GUESS, Chanel, Mango and ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ many other global marked their presence in India by implementing licensing and franchisee agreements. The global retailers on the line of control, awaiting the green signal from Govt to enter Indian retail market. However, the current scenario has encouraged Indian players to speed up retail expansion and fresh retail ventures.

Companies like Shoppers’ Stop, Trent, Reliance, Lifestyle, Tanishq, Crossroads, Akbarallys' and Tanishq already have planned to invest over Rs 5,000cr. Trent is on the edge to take both its brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers' Stop has recently geared up for expansion of present ones and to add 11 new stores including two hypermarkets. Also, Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8 months. After demerger, Reliance Industries Ltd (RIL) is substantially getting ready to enter in field of retailing. RIL is poised to emerge as the single largest player in this sector. On the other hand, Tescos, Wal-Marts or Safeways ultimately enter in the country.

So finally, Shoppers' Stops, Westsides, Pantaloons and Westsides in coming years have will face stiff competition. More than the Tescos and Wal-Marts, Reliance, Godreg and Tata are likely to attain reach to the country's interiors.

At the same time, several apparel exporters are keen to get opportunities in retail sector. Gokaldas Images, OC, TCNS, Gokaldas Exports and Celebrity Fashions are some of the exporters who already have expanded into retail sector with triumph.

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PROFILE OF SELECT RETAIL OUTLETS IN BANGALORE Garden city’s mall
With its first few malls receiving a warm welcome, Bangalore seems to be competing with Mumbai and Delhi to become a mall city. With the city’s youth spending more and more time in malls, a new stereotype of ‘mall rats’ is fast emerging in Bangalore. ‘Ground-Floor Opportunities for Retail in India,’ a report by Jullia Hanna, Associate Editor, Harvard Business School, has some interesting sound bytes from leading Indian retailers. Kishore Biyani, Chief Knowledge Officer, Pantaloon Retail advises mall owners to refrain from copying western models as Indian consumers have a preference pattern that is far different from consumers in the West. According to him, Indian mall owners should adopt a flexible model that captures the value chain and allows them to evolve with the customer. From a sector perspective, mall specialty stores that sell goods such as toys or watches should do well. Neel Raheja, Executive Director, Shoppers’ Stop, estimated that although about 200 malls will be built in India, only 10 per cent of these would be successful. According to him, the weather would play a crucial role, with shopping indoors being viewed as an attractive prospect in the monsoons.

Bangalore City Highlights
• • • • • • • • • • •

5th largest city in India. Fast Track growth spurred by IT sector/BT sectors. Dynamic multinational and corporate presence. Increase in government spending in infrastructure. Among the fastest growing cities of Asia. Supports an internationally connected garment industry. Industry base for the largest apparel park in Asia. Increase in population over the years. Sizeable numbers with ample disposable incomes. Young, trendy, fashion conscious, upwardly mobile. Highest concentration of software professionals in the world.

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• • • •

Diverse, cosmopolitan canvas. Growing NRI resettlement and plough back. Currently on the threshold of retail revolution. Transitions in consumer behavior and buying patterns.

A positive upward swing in economic scenario.

SHOPPERS' STOP

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja Corp. group of companies. Being amongst India's biggest hospitality and real estate players, the Group crossed yet another milestone with its lifestyle venture - Shoppers' Stop. From its inception, Shoppers' Stop has progressed from being a single brand shop to becoming a Fashion & Lifestyle store for the family. Today, Shoppers' Stop is a household name, known for its superior quality products, services and above all, for providing a complete shopping experience. With an immense amount of expertise and credibility, Shoppers’ Stop has become the highest benchmark for the Indian retail industry. In fact, the company’s continuing expansion plans aim to help Shoppers’ Stop meet the challenges of the retail industry in an even better manner than it does today.

Vision
To be a global retailer in India and maintain its No. 1 position in the Indian market in the Department Store category.

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Values
The following are the values that help us in achieving our mission and vision: We shall not take what is not ours. The Obligation to dissent (against a viewpoint that is not acceptable). We shall have an environment conducive to openness. We shall believe in innovation. We shall have an environment conducive to development. We shall have the willingness to apologize and/or forgive. We shall respect our customers' rights. The value of trust. We shall be fair.

Accomplishment
Shoppers' Stop in the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental stores (IGDS). The IGDS consists of 30 experienced retailers from all over the world, which include established stores like Selfridges (England), Karstadt (Germany), Shanghai No.1 (China) , Manor (Switzerland), to name a few. Shoppers' Stop won "The most admired Appeared Retailer of the year 2000" Award at the Images Fashion Awards. Mr. B.S. Nagesh won the "Annual Award for Excellence as Top CEO for 2001" at the Institute of Marketing Management. Mr. Nagesh was also nominated for the Ernst & Young "Entrepreneur of the year 2000" Award.

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THE FORUM (SHOPPING MALL)
Close your eyes for a moment and imagine a shopaholic's paradise - a shopper's dream 650,000 sq.ft. Of futuristically designed shopping space, offering a multi-brand bonanza with top global levels, wooing and attracting the shopper... open your eyes and you have The Forum, one of the largest shopping malls in the country, developed and brought to Bangalore by Prestige.

The Forum is a place one can go to for almost anything one wants to buy. The mall has everything from shoes to exercise equipment, from home furnishings to electronic goods, from books to video games! The crowd puller Landmark which houses everything from soft toys to office stationery to CDs is a prime example of the complete experience that The Forum provides to its visitors. One can indulge one's taste buds at Transit, KFC, Pizza Hut or the forever crowded Mac Donald's the first one in the South. The transit, in fact, provides Bangaloreans with a never before experience. With its huge food court and eclectic cuisines, it can cater to almost every taste bud in the world!

Global brands like Westside, Soch, Isis, Mustard, Weekender, Provogue and Benetton succeed in bringing contemporary world fashions to Bangalore and its beautiful people. The master builders also deserve the credit for being the first ones to bring the world renowned brand of Tommy Hilfiger to South India.

The Forum houses a multiplex, PVR, with 11 screens showing the latest movies - all this with stadium seating, wall-to-wall screens and mind blowing sound. This is an accomplishment the Prestige team is truly proud of. The building management systems, close circuit security, computerized parking management systems, ATM machines, 100% generator backup, centralized air conditioning and line-in-music completes the loop, to offer a world-class 'view of the future' ambience. The popularity of this mall is such that almost all the celebrities who visit the city of Bangalore make it a point to drop in here.

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e-Promotional strategies in the selected Retail Outlets_____________ Egged on by the runaway success of The Forum, which has become a landmark in the city, the Prestige Group has plans of opening up another Forum at the site of their much awaited new township, the Prestige Shantiniketan. We are also planning to build the Forum Value Mall in Whitefield.

Features
• • • • • • • • • • • • • • • • • • • • • • • • •

350,000 Sq.ft. of people spread 300,000 Sq.ft. of parking Dual Entrance Shoppertainment - Ground + 4 Floors Parking: Basement, Surface + multi-level parking Each parking level has direct access to respective floors. Premium Finishes Centrally Air-conditioned 100% generator backup Wide walk ways Valet parking Visitor comfort zones on each floor State of the art vertical transportation Uniform visibility Staff comfort zones Over 800 car parks Intelligent Parking System Facilities Management System Floor to ceiling height of 3.9 m Flat slab construction Information Kiosks Tele-connectivity Specific parking for autos and tour buses Piped music Round the clock security

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BANGALORE CENTRAL
Pantaloon Retail (India) Ltd has pulled off yet another unique concept in the country’s organized retailing book. Christened 'Central', it is being described as “India’s first seamless mall” – sans partitions or walls that separate one brand ‘outlet’ or ‘counter’ from another. Or, as Anupam Bansal, director, Liberty Group, says, “It’s like running a shop of your own without the four walls.” So, if novelty is a criteria, then all roads in Bangalore would currently seem to lead to its brimming and bustling hub, MG Road, where the six-storied structures situated.

Just having opened its doors, Bangalore Central houses over 300 brands across categories that include apparel, footwear, accessories, music and books. This is apart from a coffee shop, a food court, a supermarket (Pantaloon’s Food Bazaar), a fine dining restaurant, a pub and a discotheque. The mall has a section demarcated for services such as travel, finance, investment, insurance, concert/cinema ticket booking and bill payment. There is also a 'Central Square' area for product launches, impromptu events, displays, shows and art exhibitions. Among other innovations is India’s first live 'Radio Central' – an in-house radio station. The total area occupied by Bangalore Central is 120,000 square feet.

Shop, eat and celebrate!
That also happens to be the tagline of Bangalore Central as well as, in the words of Kishore Biyani, managing director, Pantaloon Retail, “the spirit that symbolizes affluent India.” He expounds, “Bangalore Central is based on the concept of a ‘seamless mall’, with the objective to provide world-class retail experience to customers and brands. Pantaloons have always been the pioneers in the retail market and with Central we are hoping to create new benchmarks in mall management.”

Pantaloons have plans to extend the Central concept to other cities including Hyderabad, Pune and Gurgaon. Meanwhile, Bangalore will continue to enjoy the unique distinction!

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GLOBUS

The Company:
Strong, Competitive, Innovative, Adaptive

History:

Launched in January 1998, Globus is a part of the Rajan Raheja group. The company opened its first store in 1999 at Indore followed by the launch of its second store in Chennai (T-Nagar). Soon to follow was another in Chennai located in Adyar. The flagship store in Mumbai was opened on 1st November 2001 followed by a swanky new outlet in New Delhi in South Extension Part-2.

The sixth & seventh stores are in Bangalore in Koramangala & Richmond Road respectively. The Eighth store in Ghaziabad at Shipra Mall followed by the ninth, tenth and eleventh in Kalaghoda, Mumbai, Thane and Ghaziabad, twelfth store at Kanpur and thirteenth store in Ahmedabad Globus recently launched its fourteenth store in Lucknow.Soon to open in Varanasi, Hyderabad and Noida.

Mission:

•

Achieve customer delight by offering quality products and services through a

process of continuous innovation and adaptation. • Build a dynamic team of committed and passionate employees through sustained

learning and grooming. • • Develop mutually beneficial relationships with our business partners. Employ cost-effective processes and thereby create a strong organization.

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Infrastructure:

Globus Stores Pvt. Ltd. was formed to contribute in the revolution sweeping the retail industry. Globus promises to bring about a perceptible change in the way apparel and lifestyle retailing has been carried so far. Towards this end, modern international technology has been brought in and heavy investments have been made in investing and acquiring the best, tried and tested processes and procedures of operation.

• • • • • •

Research & Design Production & Merchandising Marketing & Brand Development Service Human resources Administering policies & procedures

Future:

Globus combines state of art international information technology, the highest quality human resources and sustained financial commitment to realize the long term vision. We are rapidly expanding and the target is to have an additional 100 fashion stores by the end of 2008.

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WESTSIDE

Introduction
Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's largest and fastest growing chains of retail stores. The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already established 26 Westside departmental stores (measuring 15,000 - 30,000 square feet each) in Mumbai, Bangalore, Hyderabad, Jaipur, Chennai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Kolkata, Nagpur, Indore, Ahmedabad, Lucknow, Surat & Mysore. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing. Trent ventured into the hypermarket business in 2004 with Star India Bazaar, providing an ample assortment of products made available at the lowest prices, aptly exemplifying its ‘Chota Budget, Lambi Shopping’ motto. Star India Bazaar, presently has one 50,000 square feet store in Ahmedabad and plans to extend its presence across all major metros. This store offers customers an eclectic array of products that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items at the most

affordable prices. Star India Bazaar also includes a large range of fashionable in-house garments for men, women and children, exclusively available at the store.

In addition, Trent recently acquired a 76% stake in Landmark, one of the largest books & music retail chains in the country. Landmark began operations in 1987 with its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark has 7 stores, varying in ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each in Bangalore, Gurgaon, Mumbai and Vadodara. Until 1996, Landmark’s product portfolio comprised books, stationery, greeting cards. It was later that music was added to it. Landmark also sparked the trend of stocking curios, toys, music, CDs and other gift items. What separates Landmark from other stores of its kind is the range and depth of its stock.

The Westside Story…
This story began circa 1998 when The Tatas acquired Littlewoods – a London based retail chain. This acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently operates Westside). Littlewoods was subsequently renamed Westside.

In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise creating a loyal following. Currently, the company has 26 Westside stores measuring 15,000-30,000 square feet each across 18 cities. With a variety of designs and styles, everything at Westside is exclusively designed and the merchandise ranges from stylized clothes, footwear and accessories for men, women and children to well-cocoordinated table linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling space, prime locations and coffee shops enhance the customers’ shopping experience.

Westside has garnered numerous accolades • • • • • Balanced Scorecard Hall of Fame India Brand Summit – Brand Leadership Retail IFA Visionary of the Year Award, 2002 – Mrs. Simone N. Tata Most Admired Large Format Retail Chain of the Year - Lycra Images Fashion Awards 2005 NDTV Profit Business Leadership Awards 2006 - Retail Category

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e-Promotional strategies in the selected Retail Outlets_____________

At Westside our mission is to be regarded by our customers as the most relevant retailer in the country.

In order to achieve this goal, we shall develop a comprehensive understanding of their needs, strive to win their confidence, and offer them best-in-class products and services at affordable prices.

We shall always be in the forefront of fashion and services by anticipating and exceeding the expectations of our customers.

Our leadership will be the product of our styling, quality and service consciousness. We will continue to scale new heights of excellence through teamwork, in an atmosphere that encourages creativity and innovativeness.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

e-PROMOTION STRATEGIES e-promotion, or electronic promotion, is one of the fastest growing and effective forms of advertising. e-promotion has many forms dependent upon your target audience; this could be anything from e -mail based marketing through to e-business cards. e-promotion reaches your clients in a cost effective and interactive manner in comparison with traditional methods. Thousands of e-mails or e-business cards can be delivered to clients for a fraction of the cost of postal promotion.

We can also handle more traditional forms of advertising, utilizing radio, television and press advertising to promote web sites, products, events and such like.

Promoting products and service online is concerned with a number of issues. Having a recognizable domain name is first stage towards e-promotion. Organizations such as egg.com have successfully positioned the brand on the online world as an online bank. Most organizations today have some form of webpage used in most if not all advertisements. Placing banner advertisements on other WebPages is a common form of e-promotion. Banner ads must be placed where potential customers browse. Web public relations (WPR) are another approach to promoting online. News worthy stories based on product or service launches can be placed on the companies’ webpage, or WPR articles sent to review sites for consumers to read. Hopefully this form of online promotion will pull the consumer in. Direct email is a popular and common form of e-promotions, although slowly becoming the most hated my many consumers. Organizations can send e-leaflets to hundreds and thousands of respondents, hoping a small percentage will reply. The problem is that for every 100 emails sent the response rate will be 1-2. Direct emailing is also known as SPAM which stands for Sending Persistent Annoying email. (SPAM). To summaries e-promotion includes: • Banner promotions • Web public relations (WPR) • E-leaflets • Having a domain name. ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ The e-marketing mix must work together and support each other if the company is to have a successful online marketing strategy.

Why E-Promotion??
E-Promotion, simply will increase the targeted traffic of the website, as well as enhance the long-term reputation of the company’s online presence.

A successful website, and indeed a successful online strategy, is one that is correctly researched, planned, implemented, managed and analyzed.

Popular practices of e-Promotion
Flash enabled pop-up windows Hot links Sweepstakes

Basis for e-promotion
Existing clientele base Tie-ups with search engines Tie-ups with popular websites to enable the pop- up windows

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

e-PROMOTION STRATEGIES OF SELECTED RETAIL OUTLETS e-PROMOTION (SHOPPERS STOP)
Shoppers’ Stop has consistently focused on the great shopping experience to reinforce the brand position – Feel the experience, while you shop – to drive traffic to its outlets. The communication has used stark, black and white images, defying and challenging the wisdom of conventional advertising. Shoppers’ Stop, in its true tradition of conducting innovative promotions has been doing ‘Parikrama’ – a festival celebrating Indian tradition and culture – over the years. It’s an event which has been conducted with a new theme every year. The themes range from ’50 years of Independence’ and ‘Bollywood’ to ‘Treasures of India’ and ‘Mela’ amongst others. Parikrama not only serves to bring the customers closer to their culture, but also provides a platform to promote upcoming artisans from remote and rural areas giving them an opportunity to showcase their art and craft at Shoppers’ Stop. Shoppers’ Stop conducted the ‘The Buy and Fly to Seven Wonders’ promotion in 2001. This was a highly successful promotion, which still enjoys a very high recall. The promotion was conducted on a mega scale in which customers had an opportunity to win a trip to the Seven Wonders. The entire store was awash with visuals, activities that created a feel similar to the seven wonders. Shoppers’ Stops’ First Citizen Programme is at the centre of its customer management process. The programme, which offers a host of benefits – from redeemable purchase points to special invitations and sales previews – has over 230,000 members. Currently, First Citizens contribute to over 50% of sales of the chain (March 2004). The First Citizen programme runs a series of successful marketing initiatives that generate tremendous response. A small example is that of 2002, when Shoppers’ Stop celebrated founders’ day at its store in Andheri by mailing special bar-coded invitations to selected First Citizen members to collect their free gift, with no obligation to buy. 500 people bought merchandise worth over Rs. 2.8 million, an unprecedented response. ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

Brand Values
Shoppers’ Stop has set itself a mission to be ‘nothing but the best’, committing to provide the best value in terms of products and services and to adopt ‘best’ processes for all stakeholders and match global standards of performance. It has also instituted a Service Vision statement for the chain that reads.

Besides caring for its employees and customers, Shoppers’ Stop makes a conscious effort to contribute to society at large. Shoppers’ Stop supports CRY – Child Relief and You – on an ongoing basis including Children’s Day Specials held at Shoppers' Stop. Recently, the company, in association with CRY, launched eco-friendly bags, donating part proceeds from its sale to CRY supported projects. Shoppers’ Stop also conducts regular ‘exchanges’ for its customers, donating old garments to Concern India Foundation. To sum up, Shoppers’ Stop recognizes the need to manage their business in a way that attempts to balance the interests of all stakeholders.

FIRST CITIZEN CLUB

Shopping at Shoppers' Stop becomes rewarding for you when you are a First Citizen at Shoppers' Stop. The name "First Citizen" reflects our commitment to offering you the ultimate shopping experience.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ As a First Citizen, your shopping experience becomes even more enjoyable with reward points and exclusive benefits and privileges, all of which are provided to you by the First Citizen Program. • Reward Points for every time you shop at Shoppers' Stop. • Exclusive offers ever so often. • Updates on what you can look forward to shop for at Shoppers' Stop. • Exclusive cash counters at Shoppers' Stop so you can spend more time rather than waiting in a line. • And a host of other benefits. shopping

As a First Citizen of Shoppers' Stop, you stand to gain in any of its three membership categories, i.e. enjoy Classic Moments, flash your Silver Edge, or revel in a Golden Glow.

Benefit at Glance Benefits
First Citizenship

Classic Moments
Rs. 150 -

Silver Edge
-

Golden Glow

First Citizen Points (on net purchase) Extra Reward Points on Stop!, Life and Kashish Program Partners Reward Points Associate Card Regular Updates Free parking* Reserved Parking* Valet Parking* Exclusive Cash Counters

1 Reward point for every Rs. 100 purchased 0.25% Yes (Rs. 100) Yes Yes# Yes Yes

1 Reward point for every Rs. 50 purchased 1% 0.50% Yes (Upto 2 : Rs. 100) Yes Yes#

1 Reward point for every Rs. 34 purchased 2% 1% 2 Free (3rd: Rs 100) Yes Yes Yes

.Yes

Yes Exclusive Golden Glow

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ Yes Home Delivery of Alterations* Exclusive Previews – Merchandise & sale Free First Update Out-store Offers Yes Yes Yes Yes Yes Yes Cash Counter Yes Yes

In-store Offers Yes Yes Yes Exclusive In-Store and Outstore Offers Yes Conditions apply. Subject to availability. # Parking charges reimbursable against purchases at Shoppers' Stop only

Shoppers Stop Provides “First Citizen First” SMS service where in the members of this Club can SMS to 6161 for any kind of First Citizen related information. Can even get updated about the latest events, special preview and all other First Citizen Privileges on Mobile phone.

First Update
First Update is an exclusive bi-monthly magazine for Shoppers' Stop First Citizens. As the name suggests, this magazine gives you that exclusive buzz on what's happening in and around Shoppers' Stop. For your comments and suggestions on First Update, write to us at [e-mail]

Feed Back/Suggestions
It is our constant endeavor at Shoppers' Stop to provide you with a wonderful shopping experience every time you visit any of our stores, and for that, we need your comments and valuable suggestions. Send your feedback and suggestions to us at [e-mail]

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

PRIVILEGE CLUB: (GLOBUS) Introduction:

Gone are the days of points on cards where one did not have a clue as to what his current benefits are of what the points meant. Instant gratification has brought in the concept of the Privilege Club which is the best way to ensure 100% card to benefit ratio. The Globus Privilege Club card is a 1st of its kind in India. Members are immediately rewarded for purchases at any of their stores, in addition to a host of other privileges such as exclusive tie ups, promotion and special shopping hours. To each individual needs vary. This is why Globus offers you 2 different card categories, each with it own benefits designed to suit your needs, so take your pick.

Privilege Card:

Purchase of merchandise over Rs. 2000/- get you the most sought after card. These purchases can be spread across the first 3 months of the first purchase at Globus.

Privilege Card Benefits
• Invites to events arranged specially for you. • New product launches privileges, opportunity to be amongst the privileged few to not only see, but also buy new products before the launch. • Exclusively shopping hours - special hours during festive seasons and other occasions giving you the freedom to shop at your leisure. • Exclusive offers on national / multinational brands and services available at Globus. • Special tie ups - avail of discounts offers and privileges at other leading outlets from time to time. ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

Automatic Membership Renewal:

Your membership would be automatically renewed at the end of the validity period subject to your purchasing the qualifying amount for renewal. Our Temporary Card is also available on purchase of merchandise valued at Rs. 500/- . This card can be upgraded to a Globus Silver Card on completion of purchases worth Rs. 2000/-. For those in a hurry the Globus Privilege Card can be obtained across the counter on a down payment of Rs. 150/- only.

Gold Card Make a distinctive statement about yourself:
Buy worth Rs. 15000/- or more in a single year and Globus opens its doors for you with the Globus Gold Card.

Free home delivery of altered merchandise:
In case of alteration of garments, the same will be delivered at your doorstep. Just give us your measurements we shall deliver.

Reserved car parking:
Just drive up to a Globus store when you feel the need to shop and be rest assured of parking space.

Special counters:
Since we value your patronage & time we make it short and quick for you at our special counters.

Birthday and Anniversary greetings:
Since you are special to us, your prized dates are valued by us. Just see what’s in store for you on such occasions. ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

Special movie shows:
On certain occasions and for blockbuster movies, we reserve our theatre in Mumbai exclusively for our valued patrons like you.

Complimentary soft drinks:
Every time you visit and shop at our Bandra store, yes every time, you get 2 cafeteria coupons free.

Automatic membership renewal:
Your membership would be automatically renewed at the end of the validity period, subject to your purchasing the qualifying amount for renewal.

Special Preview:
Exclusive previews of our seasonal collections.

Silver Card Benefits
• For purchase of Rs. 5000/- and Rs. 10,000/- you get to choose from a range of gifts like Designer Mugs, Bracelet watch, Nylon Sling bag, Holiday vouchers etc. • And for Rs. 15000/- you get the Globus Gold Card Membership with some real cool surprise gifts. • Amazing discounts at various outlets and youth hangouts in many cities. (Refer to privilege booklet)

Card Usage Norms
• Validate your card by signing on the reverse as soon as it is received. • Usage of the card indicates acceptance of terms and conditions of the Globus Club Membership. • Flash your card for availing of benefits at Globus or our programming partners.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ • Globus Cards are not Credit Cards and remain the property of Globus at all times and must be produced/ returned on request. • All rights to ownership and usage of the Card rest with Globus. Report loss of Card at our Customer Service Desk. Duplicate Cards will be issued at a nominal cost of Rs100/• Inform of any change in your address/ telephone numbers/e-mail at the Customer Service Desk.

Conditions
• Membership is open to individuals above 18 years of age. • In case the applicant fails to achieve the required purchases within the validity period, the total purchases will not be carried forward to the next period. • Globus reserved the right to refuse membership to any applicant without assigning any reason. • Usage of the Globus Cards indicates the acceptance of all the terms and conditions, which are subject to revision from time to time by Globus. • Globus Cards are non-transferable and can be used only by the member whose signature appears on the signature panel on the reverse of the card. • Any Globus employee has the right to verify member’s signature and to ascertain the identity of the member. Benefits may be refused and the card be taken back if a non-member is found using the card. • Globus reserves the right to revise the terms and conditions as well as the rules and regulations of this programme without prior notice. • Benefits available through programme partners may change from time to time or be withdrawn without prior intimation. Globus will not be responsible for any liabilities arising from such situations or from use of such offers. It is advisable to check with out programme partners, validity of the scheme prior to participating in the same. • Globus reserves the right to use the membership data for the purpose of marketing or communication for enhancement of the programme. • Any disputes arising under this programme are subject to Mumbai Jurisdiction. ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

GLOBUS GIFT VOUCHERS
Globus Gift zone Gifting is made simple here. Pick one of our flexible denomination gift vouchers to someone dear. When you give someone Globus Gift Vouchers you give them exactly what they'd like. When it comes to birthdays, anniversaries and special celebrations, there's one gift that's guaranteed to please...

Globus Gift Vouchers are redeemable against any purchase made in store. Common denominations are Rs.51, 101, 201, 501, 1001 & Rs.2001.

However, you can decide on your own denomination. Just contact our customer service desk and give the most thoughtful gift of all.

CLUB WEST (WESTSIDE)

At Westside, we have always believed in providing our customers with the finest shopping experience. Now, we've made shopping with us a rewarding experience too! Introducing CLUBWEST an extraordinary rewards program designed exclusively for Westside regulars like you.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ CLUBWEST is a two-tier program, which comprises Clubwest Classic and Clubwest Gold.

A purchase of Rs 2000 on the same day entitles you to a complimentary membership into Clubwest Classic. Alternately, you can enroll by paying a nominal one-time fee of Rs 150.

A purchase of Rs 5000 on the same day entitles you to a complimentary membership into Clubwest Gold. •

Earn points every time you shop at Westside. These points can be exchanged against subsequent purchases made in the store.

• • •

A dedicated Clubwest desk for a member's assistance at each of the stores. Exclusive shopping hours only for members during sales. Unprecedented access to a host of privileges and services through our exclusive tie-ups from time to time.

•

Advance intimation of all in-store promotions and special offers through direct mailers.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

•

Special discounts on dining at select restaurants round the year.

Westside even has their Newsletter every month which helps them keep in touch with their Customers to keep them updated. • • • • You get lots of useful info/tips about the hottest styles and the latest trends. You'll get to know how Westside products can enhance your personal style. You can win free shopping vouchers, Westside gift hampers and more! You will be updated on offers, events and other exciting stuff brought to you by Westside.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

PROFILE OF THE RESPONDENTS.

The Research was limited to Retail outlets of Bangalore city. Under which visit to some selected outlets of these Retail stores for the purpose of collecting data from customers of these stores related to the Research topic which is e-Promotional activities run by these outlets, about their strategy and effectiveness of this Promotional activities.

49% of the respondents owned a credit card and the other half did not posses a credit card.

22% of the respondents were self employed / professionals followed by 21% of the housewives were both traditional and evolved 19% of the salaried / clerks / Junior executives/students.

The Respondent, which I interacted with, most of them fall under the Income (annual) Group of Rs.250000-500000 Lakhs Category (42%). Rs.100000-250000 Lakhs (28%), Rs.500000-750000 Lakhs (21%), Rs.750000-1000000 lakhs (9%).

There is a brand loyalty among the in store customers of shoppers stop.

The age group of customers entering shopping mall is between 21-35 years.

The sampling method involved in this research was Random sampling method. The Respondents were randomly picked from the population. Among the Responded for this particular Research involves Housewives, Bachelors, Students, And Senior citizens Etc. were the key people in this particular activity, which played a very important role in the collection of data based on Research objectives.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

PROBLEM STATEMENT
What appropriate e-promotional strategies should be adopted by Shoppers' Stop to reach more customers and increase sales?

RESEARCH OBJECTIVES
• • To analyze the current promotion strategies of Shoppers Stop. To identify appropriate e-promotion strategies this will provide its customers with the different shopping experience. • To recommend a roadmap for implementation of e-promotion strategies.

RESEARCH DESIGN
This research is company-specific and highly qualitative in nature. It involves the 'build up' exercise in e-Promotion. We sought to generate data through a structured questionnaire blended with personal interactions with the key personnel of Shoppers' Stop and also with the select customers. We contacted 100 customers, selected on the basis of stratified random sampling method. The data so generated are given qualitative treatment, using rating scales; and inferences have been drawn accordingly.

RESEARCH LIMITATIONS
• This research investigation is company-specific and is confined to one geographical area and to a limited sample size; the problem of generalization is obvious. • Time and resource constraints.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

DATA ANALYSIS AND INTERPRETATIONS
1. Total annual household income.

1-2.5 2.5-5 5-7.5 7.5-10 Total Respondents
Source: Field Investigation

28 42 21 9 100

Income of Respondents 45 40 35 30 25 20 15 10 5 0 No. of Respondents

42 28 21 9 1-2.5 2.5-5 5-7.5 7.5-10

Income (In Lakh Rs.) FIGURE NO.1

Inference:
It is found from the survey that most of the respondents fall under the Income Group of Rs.250000-500000 Lakh Category(42%). Rs.100000-250000 Lakh(28%), Rs.500000750000 Lakh(21%), Rs.750000-1000000 lakhs(9%).

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

2. Categories of products which the respondents purchase.

Apparels and Footwear Chocolates and Food items Books and CD's Personal care Total Respondents

48 26 14 12 100

Source: Field Investigation
Categories of products purchased

12%

Apparels and Footwear 48% Chocolates and Food items Books and CD's Personal care

14%

26%

FIGURE NO.2

Inference:
When interacted with the respondents it is found that the stuffs which are typically purchased by them are mainly- Apparel, Footwear, Personal Care, Chocolates, Food items, kitchen ware, Cosmetics, Grocery, Books, Cd’s etc. Most of the respondents visit these Malls or Retail stores to purchase Apparels, which being the most sought-after product followed by footwear and others.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

3. Retail stores where the respondents purchase their requirements

Shoppers Stop Big Baazar Foodworld Westside Forum Mall Globus Bangalore Central Total respondents

14 22 19 8 17 9 11 100

Source: Field Investigation

Bangalore Central Globus Forum Mall Westside Foodworld Big Baazar Shoppers Stop 0 5 10 8 9

11

17

19 22 14 15 20 25

Figure No.3

Inference:
Most of the respondents showed their interest in visiting Organized Retail Stores rather than going for Small Stores (Mom-n-Pop stores).for buying their requirements. Most of them generally like to visit retail chains to make their purchase, such as Shoppers Stop, Big Bazaar, Food world, Fabmall, Westside, Forum Mall, Bangalore Central, Globus Etc. They prefer these organized retail stores because they can get everything under one roof.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

4. Mode of purchase of the products Direct Online Others Total Respondents 84 14 2 100

Source: Field Investigation
Mode of Purchase
90 80 70 60 50 40 30 20 10 -

No.of Respondents

84

14 Direct Online Medium of Purchase

2 Others

Figure no.4

Inference:
The response by the respondents can clearly be seen by this graph which indicates that the most preferred mode of purchase is direct which holds around 84% of the purchase made and purchase online gets only 14% of it.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

5. Mode of purchase during the past six months

Direct Online Others Total Respondents

89 10 1 100

Source: Field Investigation Mode of Last 6 Month Purchase No. of Respondents 100 80 60 40 20 1 Direct Online Others Medium of Purchase Figure no.5 10 89

Inference:
Purchase made during the last 6 months also shows that the direct purchase accounts for 89% and on line purchase 10%

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

6. Quantum of spending on the purchase

Below 1000 1000-2000 2000-3000 Above 3000 Total Respondents

11 29 16 44 100

Source: Field Investigation
Spending on Each time Purchase
50 No.of Respondents 40 30 20 29 10 11 0 Below 1000 1000-2000 2000-3000 Above 3000 Spending(in Rs.) 16 44

Figure no.6

Inference:
Total expenses made by the respondents show that each time they visit these stores they do not have fixed amount of spending but response from the graph shows that most of them spend more than 3000 every time they visits these stores and rest of them arebelow 1000(11%), 1000-2000(29%), 2000-3000(16%).

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

7. Preferred stores for making purchases

Big Baazar Foodworld Forum Mall Shoppers Stop Bangalore Central Others Total respondents

22 19 17 14 11 17 100

Source: Field Investigation
25 20 15 Series1 10 5 0
Ba az ar Fo od wo r ld Fo ru m Sh M al op l pe Ba rs ng St op al or e Ce nt ra l O th er s

Bi

g

FIGURE NO.7

Inference:
When asked the respondents about their preference towards a particular store, most of them showed their interest towards going to Big Bazaar, Food World, Forum, Shoppers Stop, Bangalore Central Etc.( Big Bazaar being the most preferred followed by rest of them).

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

8. Reasons for their preference: Ambience Product line Variety Better pricing Promotional offers Others Total respondents 31 21 18 15 9 6 100

Source: Field Investigation

Reasons for preference

6% 9% 31% 15%

Ambience Product line Variety Better pricing Promotional offers Others

18%

21%

FIGURE NO.8

Inference:
The reasons stated by them for their preference of particular stores are good ambience, nice product line, variety, better pricing, comfort, promotional offers, membership services (good ambience being the most important tool for them to decide up on a particular store). ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

9. Online purchase

Yes No Total

14 86 100

Source: Field Investigation

Response for Online Purchasing

Yes 14% Yes No No 86%

Figure no.9

Inference:
Most of the respondents do not make online purchase. The percentage of respondents who make online purchase is as low as 14%.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

10. Sales promotion schemes of these retail units

Yes No Total

89 11 100

Source: Field Investigation Aware of the Sales Promotion schemes of these Retail units

No 11% Yes No Yes 89% Figure no.10

Inference:
When its comes to awareness of the promotional schemes of these retail units, the data shows that 89% of respondents are aware of one or the other promotional schemes provided by these retail stores.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

11. Type of promotional schemes the respondents are aware of:

Free Samples Discount/ Offer Coupons Contests & Sweepstakes Refunds & Rebates Bonus Packs Discounts Price Deals Frequency Programs Guarantees Others
Source: Field Investigation
90 80 70 60 50 40 30 20 10 83 61 50 44 50 39 67

61 83 50 44 50 67 39 22 61 6

61

22 6

Inference:
There are around 10 different schemes provided in the Questionnaire and most of the respondents are aware of one or more of the schemes of these retail stores. The level of awareness is more in respect of discounts offer/coupons (83%) and is far less in respect of frequency programs (22%)

________________________________________________________________________ M.P. Birla Institute of Management

Fr ee co Sa un t/ m Co O pl ffe nt es es rC ts ou & po Sw ns ee Re ps fu ta nd ke s s & R eb at Bo es nu s Pa ck s Di sc ou nt Pr s Fr ice eq ue D ea nc ls y Pr og ra m G s ua ra nt ee s O th er s

Di s

Figure no.11

e-Promotional strategies in the selected Retail Outlets_____________

12. Awareness of online promotions: Yes No Total 53 47 100

Source: Field Investigation

Awareness of Online Promotions

No 47% Yes 53%

Yes No

Figure no.12

Inference:
The awareness level of people about the online promotional schemes shows that around 53% of people stated that they are aware of these promotional schemes and rest 43% are not aware of them. There is lack of awareness among most of the people about this kind of promotional activities, but there are very good chances of its increasing the awareness level.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

13. Preference towards e-Promotions:

Yes No Total

42 58 100

Source: Field Investigation Preference of e-Promotion

Yes 42% No 58%

Yes No

Figure no.13

Inference:
Regarding the preference of the respondents towards e-Promotion, the data clearly indicates that 42% of them prefer e-Promotion and 58% of them do not prefer it for different reasons. These reasons are covered in the subsequent data base

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

14. The reasons for favoring e-Promotion

More accessible Latest offering Better reach Total respondents

43 31 26 100

Source: Field Investigation
Reasons for favoring e-Promotions
43 31 26

45 40 35 30 No.of 25 Responden 20 ts 15 10 5 0

More accessible

Latest offering

Better reach

FIGURE NO.14

Inference: The reasons given by the respondents for their preference towards ePromotional activities are: the e-Promotion activities more accessible; provide the online buyers with the latest offers; can access from everywhere even while traveling and reaches customers any how through their mail box.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

15. Reasons for not preferring e-Promotion

Touch and Feel effect Unwanted Pop ups Total respondents

67

33

100

Source: Field Investigation
Reasons for not favoring e-Promotions

Unwanted Pop ups

33

Touch and Feel effect 0 20 40 60

67

80

No.of Respondents

FIGURE NO.15

Inference:
The reasons given by the respondents for not favoring the e-Promotion are: lack of touch and feel experience, presence of unwanted pop ups at the time when they check mails and block them.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

16. The level of awareness of online promotions:

Not aware Partially Aware Fully Aware Total

6 72 22 100

Source: Field Investigation
Level of Awareness of Online Promotions
80 70 60 50 40 30 20 10 0

No.of Responses

72

22 6 Not aware Partially Aware Fully Aware

Awareness

Figure no.16

Inference:
The data shows that around 6% of the respondents are not aware of online promotions; 72% are partially aware and 22% of them are fully aware about online promotions.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

17. The ranking of effectiveness of online promotional activities: (Rating 1 least significant and 5 highly significant) 1 2 3 4 5 Total respondents 11 10 53 21 5 100

Source: Field Investigation
Effectiveness of Online Promotional activities
60

No.of Respondents

50 40 30 20 10 0 1 2 3 4 11 21 10 5 5 53

Rating Scale

Figure no.17

Inference:
The data indicates that 53% of the respondents rated 3 on the scale of 1 to 5. We can infer that the respondents feel that the effectiveness of online promotional activities is neither highly significant nor least significan

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

18. The loyalty programs of any retail outlet:

Yes No Total

74 26 100

Source: Field Investigation Awareness about the Loyalty Programs of any Retail outlet

No 26% Yes No Yes 74%

Figure no.18

Inference:
. The data indicates that around 74% of the respondents are aware of these loyalty programs. We can infer that there is a need for instituting loyalty programs for online buyers.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

19. Membership of any retailing club

Yes No Total

26 74 100

Source: Field Investigation Membership of any Promo club in this Retail Units

Yes 26% Yes No No 74%

Figure no.19

Inference:
The data depicts that not many of the respondents are members of the Retail Clubs. Only about 26% of the respondents are members of the Retailing Clubs. This justifies the fact there is a need for establishing exclusive online retailing clubs.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

20. Respondents' preference on any particular retail club:

First Citizen membership Frequent flyer club Subhiksha card Total respondents
Source: Field Investigation

54 27 19 100

Preffered Retail clubs

60 50 40 No.of respondent 30 s 20 10 0

54

27 19

First Citizen membership

Frequent flyer club

Subhiksha card

FIGURE NO.20

Inference: Around 23% of the respondents stated that they are members of Shoppers
Stop’s First Citizen Club Membership, Jet Airways frequent Flyer Club, and Subhiksha Card

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e-Promotional strategies in the selected Retail Outlets_____________

21. Satisfaction level of respondents with the activities of the retail clubs in which they sought membership

Yes No Total

50 50 100

Source: Field Investigation Level of Satisfaction with the activities of this club

Yes

50%

No

Yes 50%

No

Figure no.21

Inference:
The data indicates that the respondents are undecided about this issue: they are neither satisfied nor dissatisfied with the activities of the retail clubs

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e-Promotional strategies in the selected Retail Outlets_____________

22. Recommendations of the respondents for enhancing the utility of e-Promotions:
The respondents provided very valuable inputs from their side for enhancing the utility of e-Promotions and are quite useful towards implementation and improvement of ePromotional activities. Some prominent among them are: • • • • • • • • • • The activities of loyalty clubs must be communicated more effectively to customers. Attractive promotional schemes need to be developed. e-Bay - Try things that they promote and the way they do it.. That’s one of the best places I love to try e-promotions... The trust factor should be increased as there are lots of misleading misgivings/flaws in e-Biz. Be creative in ads. Give loyalty programs, customer first remember this. Companies should send mails which have the customer s name on it. Not just say dear sir/madam. Customer’s prefers intimacy. Make the e-Promotional schemes more attractive, more customized, more personalized. Keep on updating the new e-promotional schemes E-Promotional activities must have such attributes as Fast access...Quick links… More info... On-line contest can be a powerful tool to increase the awareness of e-Promotional activities.

: ________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

MAJOR RESEARCH FINDINGS
• It is found from the survey most of the respondents fall under the Income Group of 250000-500000 Lakh Category (42%). It is also found that the stuffs which

they buy are mainly- Apparel, Footwear, Personal Care, Chocolates, Food items, Kitchen ware, Cosmetics, Grocery, Books, CD’s etc. Majority of the respondents visit this Malls or Retail stores to purchase Apparels, which being the most sought-after product in the malls, followed by footwear •

For their Purchasing requirements, most of them showed their interest in visiting Organized Retail Stores (rather than going for Small Stores (Mom-and-Pop stores), such as Shoppers Stop, Big Bazaar, Food world, Fabmall, Westside, Forum Mall, Bangalore Central, Globus Etc. Customers shopping at random shopping malls and also their frequencies of shopping is once a week.

•

The most preferred mode of purchase is direct which holds around 84% of the purchases made. Total expenses made by most of the respondents for their one time purchase when they visit the retail units is Rs. 3000 and above. Most of them showed their interest towards going to Big Bazaar, Food World, Forum, Shoppers Stop, Bangalore Central Etc.( Big Bazaar being the most preferred followed by rest of them).

•

The reasons stated by them for their preference towards particular stores are: nice product line, variety, better pricing, comfort, good ambience, promotional offers, membership services (Product line being the most important tool for them to decide up on a particular store)

•

The research shows that the online purchasing is as low as 14% of purchases made, mainly for the security concerns. But when it comes to awareness part of ePromotional activities carried out by the Retailers, the awareness for them is as

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________ high as 89%. There are around 10 different promotional schemes provided in the Questionnaire and most of the respondents are aware of atleast one or more of the schemes of these retail Units. •

The preference of the respondents towards e-Promotion is not very high (42%). The reasons given by the respondents, who generally likes e-Promotional activities are- it’s more accessible, provide with latest offers, can access from everywhere even while traveling. On the other hand the reasons given by them for not favoring e-Promotions are, they want the touch and feel experience, they do not like unwanted pop ups at the time they check mails and block them.

•

The level of awareness among people about the Online Promotion shows that 72% are partially aware. About Loyalty Programs of these retail outlets, around 74% of them are aware of these programs. But only about 26% of the respondents took membership in any of these Clubs. They are mainly Shoppers Stop’s First Citizen Club Membership and some respondents took membership in Jet Airways frequent Flyer Club, Subhiksha Card etc. The respondents are neither satisfied nor dissatisfied with the promotional activities run by these Clubs.

________________________________________________________________________ M.P. Birla Institute of Management

e-Promotional strategies in the selected Retail Outlets_____________

RECOMMENDATIONS

A European customer knows exactly what he/she wants and walks up to the shelf and picks up the product whereas an Indian customer likes to feel and touch the product. This is the major problem faced by the marketing strategists to any particular and effective e-Promotion strategy. They have to take into account many things before they plan any strategy concerning e-Promotional activities.

The recommendations made by the respondents to bolster up the utility of ePromotions are worth pondering and we are sincerely prompted to endorse them to the retailers embarking on introducing e-Promotions. (Contra chapter on Data Analysis & Inference) However, based on the personal interactions with the experts in the field as well as with our respondents, we make the following specific benchmarks:

Internet advertising E-mail promotions Direct e-mail marketing Electronic newsletters Mobile marketing

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e-Promotional strategies in the selected Retail Outlets_____________

ANNEXURE
1. SELECT BIBLIOGRAPHY

(a) Books:

1. "e-Marketing: Improving Marketing effectiveness in the Digital World 2. By Malcom McDonald and Hugh Wilson, Cranfield University, Pearson Education Publications, 2000. 3. "e-Marketing" ICFAI Publications, 2006 4. 'Retailing' by Roger Cox and Paul Brittain. Pearson Education Publications, Fifth 5. Edition, 2006 6. 'Retail Management--A Strategic Approach' by Barry Berman and Joel R Evans, 7. Pearson Education Publications, Ninth Edition, 2006 5. 'Retailing in India' Edited, ICFAI Publications, 2006 6. 'Retailing: General' by Standard & Poor's Surveys 2002 7. ' Retailing Specialty' by Standard & Poor's Survey 2002 8. 'Selection of Retail Locations' by Richard L Nelson, F W Dodge Publications, 8. New York, 2000 9. 'Retailing on the Move: An Era of Change' by Thelma Snuggs, Black Collegian Publications 2000 10. 'Marketing: Real People, Real Choices' by Michael R Solomon and Elnora W Staurt, Pearson Education Publications, Third Edition, 2006 (Chapter on Retailing) 11. 'Marketing' By Evans and Burman, Wiley Eastern Publications (Bizantra) 2006 (Chapter on Retailing)

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e-Promotional strategies in the selected Retail Outlets_____________

(b) Journals and Magazines:
• • • • • • • • • • • • • Journal of Retailing Journal of Marketing Retail Biz Journal of Marketing Research Harvard Business Review Marketing Mastermind Strategist (Business Standard) Brand Equity (Economic Times) Catalyst (Business Line) Fortune Business World 4 PS Pitch

© Websites: • www.Wikipedia.com • www.Shoppersstop.com • www.globusindia.com • www.mywestside.com • www.forumexperience.com • www.zoomerang.com

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e-Promotional strategies in the selected Retail Outlets_____________

2. QUESTIONNAIRE

e-PROMOTION STRATEGIES IN SELECT GROUP OF RETAIL UNITS IN BANGALORE

I am a student of M P Birla Institute of Management, Bangalore pursuing MBA Program. I am carrying out a research investigation on e-Promotion strategies in select group of retail units in Bangalore. In this connection, I need some information. Listed below are some questions. I request you kindly to give your responses to them. I sincerely assure that your responses will be kept strictly confidential and will be used only for academic purpose. Mr. Gaurav Sharma

1. Name: Age: Profession:

2. Please indicate your total annual household income ______________________ 3. Please state the categories of product which you purchase: _______________________ 4. Where do you generally make your purchase from? ______________________

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e-Promotional strategies in the selected Retail Outlets_____________

5. Mode of purchase of the products? A. Direct B. Online 6. In past 6 months how did you make your purchase? C. Direct D. Online 7. How much do you spend? ____________________________________________________ 8. Which are the preferred stores you make your purchases? ____________________________________________________ 9. Why? Please state the reasons ____________________________________________________ 10. Do you make online purchase? A. Yes B. No 11. Are you aware of the sales promotion schemes of these retail A. Yes B. No 12. If your answer is yes, please tick the appropriate item(s) below: (a) Sampling (b) Couponing (c) Premium offers (d) Contests & Sweepstakes (e) Refunds & Rebates (f) Bonus packs (g) Discounts: (h)Price Deals (i) Frequency programs (j) Guarantees units?

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e-Promotional strategies in the selected Retail Outlets_____________

13. Are you aware of online promotions? A. Yes B. No 14. Do you prefer e-promotion? A. Yes B. No 15. Why do you favor e-promotion? Please state the reasons

16. If you do not favor e-promotion, please state the reasons

17. Please state your level of awareness of online promotions 1) Not aware 2) Partially aware 3) Highly aware 18. How much do you rate the effectiveness of online promotional activities? Please mark 1 to be the least and 5 to be highly effective. 1( ) 2( ) 3( ) 4( ) 5( )

19. Are you aware about the Loyalty programs of these Retail Outlets? A. Yes B. No 20. Are you a member of any club? A. Yes B. No 21. If yes, which one?

22. Are you happy with the activities of this club? A. Yes B. No
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e-Promotional strategies in the selected Retail Outlets_____________

23. Please give your recommendations for enhancing the utility of e-Promotions. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

THANK YOU SPARING YOUR VALUABLE TIME IN GIVING THE RESPONSES

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e-Promotional strategies in the selected Retail Outlets_____________

3. DIRECTIONS FOR FURTHER RESEARCH:
• • • • • • Customer Perceptions/Expectations of e-Promotions in Retail Units Customer Satisfaction Survey of e-Promotions by using the Multi-Attribute Analysis Centripetal and Centrifugal Effects of e-Promotions in Retail Units. Micro-planning of e-Promotions Scheme at Retail Units Integration of e-Promotion with other Marketing Mix Elements in Retail Units Aggressive e-Promotion Activities as a Power Tool of Non-Price Competition --------X------

________________________________________________________________________ M.P. Birla Institute of Management