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Case study #1
Josephine D. Garces
Marketing Management
pioneered modern retailing when they opened an 2800 square foot store in Mumbai.
Their operations had grown continuously with 20 stores across 10 cities by the year 2006.
For more than a decade Shopper Stop’s succeeded and gained higher profit from their
“FOCUSED” strategy.
II. Case Facts:
Strengths:
- Established brand (Brand Equity is so high) SHOPPPER STOP – A VERY
CARING BRAND
- Widely accepted customer loyalty program
- Very strong back-end system (very good supply-chain management)
- Very good financial status
- Customers shop in groups (with family or friends)
Weaknesses:
- There is no concrete program for the company’s expansion
- The company is very conservative
- Limited age group of the company’s current market (Capturing only the thrivers’
market)
Opportunities
- Changing market trends
- Consumers were becoming rich, youthful and aspirational
- Changing demographics
- Unsuccessful attempts of competitors to capture young markets
- Increasing purchasing power of Indian market
Threats
- Retail formats, which were commonplace in the developed markets of Europe
- Shopper Stop must adapt to the changing market trends: young population is
booming.
- Indicators for spending brought about by upward migration of income and other
business from the young market. Hence it would be good that part of the expansion
belong to Sec A urban, customers who have the capacity to buy and normally
shop in group. (The group will always be composed of: parent – who has the
may be used as a tool in devising the appropriate strategy in winning the new
market.
3. The company could always retain its BRAND EQUITY while it tries to expand its
current market segment. The company could keep its image of being a “CARING”
and “ASPIRATIONAL” brand that caters to the high-end consumers and a brand that
customers is to:
- Add product lines fit for the younger market.
- Understand the behavior of the NET GENERATION
- Study the approach of the new brands that enters the Indian market which maybe
WORTH taking if it’s within the context of CALCULATED RISK. The expansion
would also include more inventories which the company is very conservative about
but they can always adopt the WIDE BUT SHALLOW CONCEPT (wide array of
products/styles/brands in few quantities). Given the situation that Shopper Stop has a
very strong back-end support in terms of providing accurate data and information the
company would be able strategize on how to go about the new plans and programs.
As John Maxwell has said in his book “Sometimes you win, sometimes you learn”
life will be difficult for those who refuse to learn and embrace changes, therefore as
the CEO, he must open his mind and lead the company in facing challenges and
embracing changes.