Case study on retail management with question.pptx

case study on retail management

1. Case study Godrej & Boyce’s Retail Outlets

2. The Company The company Godrej & Boyce is a name already existing in the market since the 1970’s. It already had 31 showrooms attached to its branches across the country, although most of these were in a dilapidated condition, having being built long back, with no specific division looking after them. However, there were changes occurring with the concept of retailing chain stores gaining acceptance among consumers. The retail speciality outlets have originated and grown at a fast pace in southern cities like Chennai, Bangalore and Hyderabad. Moreover, there are certain factors such as rising incomes, changing lifestyles, and urbanisation which indicate the high growth potential of this segment. This has prompted corporates such as Godrej to cash in on such opportunities.

3. So in an attempt to shrug off its staid and traditional image, in April 2003, the Godrej Retailing Division came into existence primarily to bring all the company run showrooms under one division and showcase them as ‘The New Face of Godrej. The Godrej retailing division is the speciality retail stores (or showrooms) which display an entire range of its products including refrigerators, washing machines, air-conditioners, home and office furniture, locks and security equipment. Thus the company products are showcased ii, a new light and contemporary way which in turn has revamped its image. To date, the transformed retailing showrooms are at Chandigarh, Noida , Delhi, Calcutta, Mumbai, Pune , Ahmedabad , Indore, Bhopal, Chennai, Bangalore, Secunderabad , Vizag and Trivandrum.

4. In-Store Modifications In order to project a younger and more contemporary face of Godrej, the company had to undertake an exercise of the transformation of its image and a face lift in real earnest. For this purpose the services of Manu Mansheet , a Delhi based Visual Merchandiser has been taken in order to spruce up the outlets. In the outlets, stone walls were replaced by marble granite tiles, tube lights and forbidding wooden panels have given way to bright colours and modern designs. Manu Mansheet has tried to create an in-store design and ambience which conveys an inviting family atmosphere, encouraging customers to experience the products in a natural setting. Within the stores special corners were done up, props such as lamps, frames and paintings were used to recreate a real life setting and provide inspiration and ideas for customers on how to do up their houses. The end result is bright and friendly showrooms displaying a wide array of Godrej products whose price ranges from ` 100 for locks to ` 80,000— 90,000 for a high-end sofa set targeted at both the middle class and upper class segments

5. The end result of the in-store modifications is the transformation of the company image. Earlier, Godrej was always associated with locks and steel cupboards. Not many people were aware that the company was also into selling high-end home furniture and modular kitchens. Hence, through the new retail outlets customers got to see Godrej’s entire collection under one roof and also its ability to offer an extensive line of designs catering to various tastes of the customers.

6. Company’s Performance In the last two years, Godrej and Boyce’s retailing division already has set up 34 showrooms across India sprawling over 90,000 square feet in 20 towns. On the systems front, the showrooms have been connected to the company’s main computer system for online processing of customer orders. The retailing division today has a turnover of (for the year ended March 2005), ` 42 crore and plans to reach Ps. 100 crore mark in the coming three years. This ` 42 crore is an increase of 42 percent over the previous year.

7. Based on customer feedback and the popular demand for bedspreads and other props used in the store for decorative purposes led the company to have a collaboration with Portico to supply bed lines and a bag manufacturers to retail beanbags in their outlets.

8. Future Challenges and Programmes This year the retailing division plans to open at east 10 new showrooms across the country. The main thrust being in high potential places like Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Pune . Other smaller towns like Bhubaneshwar , Ranchi and the likes are also on the agenda.

9. Now established as a strong player in the home furniture category, Godrej and’ Boyce’s retailing division is continuously launching a slew of new products in the range of sofas, beds, bedroom sets, dining sets, study tables and cupboards from its showrooms In the future, apart from Portico, the company also hopes to partner with numerous other suppliers and retail a full range of lifestyle home products which are not manufactured1 by Godrej. Says B,N. Doongaji , VP, Godrej and Boyce. “We want to offer as man products as we can, so that our stores become a one stop shop for customers looking for a complete home solution”.

10. The company plans to open 16 more showrooms in the next two years, thus increase in the number to 50. Even. the existing showrooms are being given a face life by recruiting new staff and training them at selling skills and customer relationship. Further, the company plans to invest ` 5 crore to give these showrooms a more modern colourful and lively ambience—all to make it a pleasurable buying experience for the customer

11. The challenge before Godrej and Boyce’s retailing division will be to consistent, deliver customer satisfaction and enhanced value on—store ambience, pleasant customer interaction and proper systems support to facilitate timely delivery and installation Next year the company is targeting a growth of 50 per cent and a turnover of ` 63 crore .

12. Questions 1. There are international furniture retailers like Style Spa etc. who have set up stores in India, what steps could be taken by Godrej and Boyce to beat competition? 2. Can you suggest various promotional measures which can be used to penetrate smaller cities where there is more spending power with people aspiring to be like their urban cousins?