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AMITY UNIVERSITY

AMITY BUSINESS SCHOOL

PROJECT REPORT

ON

CRM INITIATIVES AT
SHOPPER’S STOP

SUBMITTED BY

S
HINJINI BASU F 21

M
EETA MOHAPATRA F 22

N
ANCY CHOPRA F 23
A
NKIT RAJVANSHI E–

GROUP 9 ; CRM GROUP 4

INTRODUCTION
Shoppers’ Stop is a chain of retail stores in India owned by K. Raheja
Corp. It was established in 1991 and is presently spread across the
nation. Shoppers’ Stop is considered as one stop multi-brand retail
outlet providing leading international and national brands in clothing
for men, women and kids, accessories, cosmetics, footwear and home
furnishing. Two years back in April Shoppers’ Stop changed its logo and
adopted a new logo with a punchy tag line “Start Something New”.

Presently there are 27 stores in 12 cities. Shoppers’ Stop has been


awarded the prestigious “Hall of Fame” and won the “Emerging Market
Retailer” of the year award by World Retail Congress in 2008.
Shoppers’ Stop in early 90’s wanted to establish their brand as a family
departmental store but now it has diversified into speciality bussiness
like Crossword Bookstores, Desi Café, Brio, Mothercare and M.A.C.
Cosmetic Stores.
CRM INITIATIVES AT SHOPPER’S STOP

First Citizen Programme

At Shoppers’ Stop priority is given to customer convenience with


customer friendly signage, alteration desk, customer service desk with
gift wrapping service and off course most importantly the exclusive
First Citizen Members’ lounge to name a few. First Citizen is one of the
very significant loyalty programs of Shoppers’ Stop. First Citizen
program has 1.5 million active members across India. With this
program customers become part of the First Citizen club where they
have to submit an application form along with the application fee of Rs.
150. Membership to regular customers is provided in three stages –
Classic Moments, Silver Age and Golden Glow. The core customer for
First Citizen program fall under the age group of 16 to 40 years.

Benefits come hand in hand with First Citizen program:


• Customers gain reward points each time they shop at Shoppers’
Stop stores or shoppersstop.com
• Exclusive benefits & privileges
• Exclusive offers on purchase
• Updates on various products at Shoppers’ Stop
• Exclusive cash counters which help customers to spend more
time shopping than waiting in a queue

First Citizen Program contributes nearly over 50% of Shoppers’ Stop


sales annually. The rapidly growing First Citizen Program clearly proves
the fact that Shoppers’ Stop has been able to successfully connect with
their customers through their service and special promotional offers
which has converted many of them into loyal customers.

• The program offers its members an opportunity to collect points


and avail of special benefits.
• Currently, Shoppers‘ Stop has a database of over 2.5 lakh
members who contribute to nearly 65% of the total sales of
Shoppers‘ Stop.
• Shoppers’ Stop also introduced a Loyalty program SKIDS
specially for children of First Citizen club members.
They also offer a co-branded credit card with Citibank for their
members

“It is no longer enough to satisfy customers. You must delight them” –


Philip Kotler

In this fast growing and competitive retail market of India, brand


positioning depends a lot on customer loyalty. And Customer loyalty is
the result of well-managed customer retention program.

50% of the Shoppers’ Stop’s sales are drawn from Customer


Relationship Management (CRM) initiatives. It is considered that
Shoppers’ Stop has taken CRM to a new extent and now it’s loyalty
programs are considered as Customer Experience Management.
Use of Technology

The ardent need of new technologies can be understood no better than


Shoppers’ Stop. Shoppers’ Stop is one of those first few retail chains
which introduced the use of scanners and barcodes and also
encouraged the use of fully computerized operations. It is also one of
those very few retail chains to have ERP (Enterprise Retail Planning),
which is considered one of the best retail planning system in the world.
ERP helps in quick decision making process. With this Shoppers’ Stop
can open new stores faster and can get necessary information about
merchandise and customers online.

Shoppers’ Stop uses a mix of technologies and systems like JDA suite
for retail business and SharePoint portal for their internal and external
collaboration. It also uses Microsoft Exchange and Communication
Server for messaging. Technologies like Oracle Financials is used for
financial accounting, NetApps' SAN and NAS technologies for storage
consolidation and virtualization, Business Objects for reporting, blade
servers and multi-core servers with VM Ware for application
deployment, and Wi-Fi networks in offices. For stores and distribution
centers they use operational activities with Symbol wireless scanners.

Shoppers’ Stop replaced its legacy system in 1998 and selected JDA.
JDA solutions ensured consistency and uniformity of fixtures across all
its stores thus enhancing the efficiently and helping the chain grow
profitably as well as ensuring the company’s success — particularly
that of its new hypermarket business. JDA solutions have helped
Shoppers’ Stop in many ways:

• Optimizing floor space and visualizing the layout prior to


construction
• Inventory planning improvement through planned and
systematic forecasting
• Provide a high magnitude of analysis and reporting
• Efficiently manage high inventory turns and volumes
• Improve the management of metrics, including service and
inventory levels

Shoppers’ Stop also insists on the use of PeopleSoft HRMS, business


intelligence solutions, e-learning solutions, customer feedback systems
and mobile point-of-sale systems.

Shoppers’ Stop and Other Retail Chains

Shoppers’ Stop is considered as a multi brand retail outlet because of


its variety of products meant for the entire family. The vast and diverse
range of products available in Shoppers’ Stop is rare to find in any of
the retail chains of India. Again under this vast range they offer
different categories and style which caters to the need of customers
from various economic slabs.

Shoppers’ Stop has converted the concept of retail into an experience,


an indulgence. To gain an insight into the international practice of
customer service and new retail concepts, Shoppers’ Stop became the
member of Inter Continental Group of Departmental Stores (IGDS)
becoming the only Indian member among the 29 other celebrated
retailers of the world.

In India Shoppers’ Stop acted as a launch pad for non-apparel brands


like Walt Disney, Tencel, Clarins and Elizabeth Arden.

Shoppers’ Stop is considered to be a pioneer in departmental one stop


shop concept and has brought retail revolution in India so it
understands the customer psyche better than many of its competitors.

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