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San Beda College 1

GRADUATE SCHOOL OF BUSINESS

Case study #1

SHOPPERS STOP – TARGETING THE YOUNG

Josephine D. Garces

Marketing Management

Professor Ringo M. Gamboa

March 15, 2014

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GRADUATE SCHOOL OF BUSINESS

I. Introduction and Background


Shopper Stop is a well-established department store in India. Year 1991 when they

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

and North America, were appearing simultaneously in India


III.Key Problems
1. How to meet the company’s current target: 39 stores across 22 cities by 2008.
2. The disengagement with the younger customer based on the study presented.
3. Maintaining the current image of the company to its established customer base.
IV. Proposed solutions / Recommendations
1. Use the current strengths of the company to make way for the expansion with careful

analysis and considerations of the opportunities and threats as well.

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GRADUATE SCHOOL OF BUSINESS

- 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

factors (easy credit) is evident.


2. The changing demographics of India shows that there is a big opportunity of making

business from the young market. Hence it would be good that part of the expansion

of the company would also include expansion of its customer base.


- Shopper Stop must take advantage of the current profile of their customers: They

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

capacity to buy, children – the buying influencers / dictators)


- Competitors’ previous unsuccessful attempts in capturing the younger market

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

serves as a bridge to luxury. What the company needs to do to engage younger

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

their direct competitors in their market expansion program.


V. Conclusion
The opportunities to grow the business in terms of structure and profit will easily be

realized if expansion of market will be considered. It may be a risk but it is a RISK

WORTH taking if it’s within the context of CALCULATED RISK. The expansion

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GRADUATE SCHOOL OF BUSINESS

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.

“That In All Things God May Be Glorified”