Project on Croma

By- Ankit Kumar

Ankit Gupta
Anupma Shishodia
Aashima Bhatia
The first Croma store was launched in Juhu , Mumbai on
October 9,2006

Infiniti-retail and WoolWorth India Deal

Infiniti Retail Ltd., will own and run the retail operations in
India, while Woolworths will provide technical support and
strategic sourcing facilities from its global network

Over180 brands and 6000 products to choose from

Plush stores, spread over nearly 20,000 sq feet, with

strategically planned products and category lay outs
 Retail format

It falls under category killer format

It has 2 forms of retail outlets :the regular large format stores & Zip
stores , satellite outlet in airport

Deep
Category Killers Department Stores

(CROMA)

Assortment(Depth)
Speciality Stores Discount Stores

Shallow
Narrow Wide
Product Line (Breadth)
It basically operates discount category killer stores .

It is focussing more on private labelled products to

garner better margins
Elements of Promotional mix:

1) Advertising
2) Public Relations
3) Personal selling
4) Sales Promotion

The recent strategy of promoting there brand is that as

diwali is near, they have introduced certain
discounted coupons and vouchers like
1)  Rs.500 voucher for Diwali Electronic Combos
2) Rs 250 Voucher(on electronic items)
3) Flat 10% Off when you buy online
4) Tradus: 50% Off on Samsung Cameras + Rs. 150
Movie Voucher
and many others.
Promotional tools used by Croma
communications pvt ltd. are:

1) Sponsoring Events
2) Hoardings in
railways and buses
3) Phone calls
4) SMS campaign
5) E-fetes
6) E-Magazines (festive
season)
Brand positioning:
“we help you to make a choice that's just right for
you”
 Friendly, well-trained and knowledgeable store advisors
give sound and personalized advice so that you can make
informed buying decisions about any technology or
consumer electronics product.
One can shop from 6000 products across eight categories
in a world-class ambience.
With the launch of the washing machine, they have cover
almost the entire range of electronic goods.
Croma products are cheaper by 10-15 per cent in
comparison to branded ones and best to their quality
which make trust in customers.
46 private labels which it plans to scale up to 100.
Croma has various products like – fridges up to three
capacities, cloth-dryers, flat-screen TVs, irons, juicers and
mixers, DVD players, vacuum cleaners, coolers and micro-
ovens etc.
Other brands at croma:
Godrej, Haier, Hitachi, LG, Onida, Samsung, Voltas,
O’General, IFB, Seimens, Whirlpoo, Kenstar, Toshiba, G-
Hanz, Panasonic, Gasmate, Bajaj, Black & Deck, Philips,
Optima, Inasla, Morphyrich, Eurkaforb, Usha, Anjali, APC,
Caselogic, HP, Iball, PAQ, Targus, Sony, Acer, Compaq,
HCL, Lemovo, Esys, Creative, Zenith, Viewsonic, AOC,
Canon, Epson, Bit, Dlink, Linksys, Netgear, Bandridge,
Kingston, MX, Altec, Intex, JBL, Logitech, Genius,
Odyssey, Aster, Caselogic, Imation, Iomega, Lacie,
Seagate, Transcend, Westerndig, MoserBaer, Sandisk,
Freecom, Gladiator, Microsoft etc.
•The pricing strategy is based upon affordability.

• Margins are thin as it is a business that runs at low cost of doing business-to-sales.

•It basically operates discount category killer stores .

• On an average a consumer can expect a 10-12% cheaper price for a private labelled
product compared with the same quality branded product .
• Croma operates on strategy ‘We help you buy’.

•The high tech store promises to provide world class service through a team of
highly qualified and trained staff, the best product range in India to choose from
and great prices on a consistent basis.

•  Croma is customer’s friends in the process by understanding their needs and

suggesting and demonstrating all suitable options.

• The central concept in Croma stores is to provide a wide display item, allow touch a
feel experience for customers.

• It also provide customer care and complain lodge facility to its customers
• Croma has presence at many cities in India.

•The distribution strategy used by croma is pull strategy whereby they educate
and assist customers to buy a product rather than force it.
 Merchandising Strategy:
Selecting, pricing, displaying, and advertising items for sale in a retail store.
Key Offerings by CROMA at Ansal Gr.Noida: All Kind of Electronics Products

Products and Services:

Large Appliances: Air Conditioners, Washing Machine, Dishwashers, Dryers,
Refrigerator.
Small Appliances: Microwaves, OTG, Personal Care, Vacuums, Irons, Security,
Power, Lighting, Tools.
Kitchen Appliances: Coffee Makers, Food Preparation, Irons, Kettles, Personal Care,
Toasters, Water, Water Purifiers, juicer, Mixer, Grinder, Blender.
Computer & Accessories: Notebooks, Desktops, LCD Monitor, Printers & Office
Solutions, Networking, PC Audio, Web Cam, Storage Media, Input Devices, Software.

Communications: PDA's, Mobile Phones & Accessories.

Gaming: Gaming Hardware & Software.
Home Entertainment: TV Plasma, TV LCD, Home Theatre, Audio Systems, CTV,
DVD/VCD, Speakers, Audio Portable & Accessories.
Several Brands
Imaging: Offered at
Camcorders CromaCameras.
& Digital in Greater Noida:
Godrej, Haier, Hitachi, LG, Onida, Samsung, Voltas, O’General, IFB, Siemens, Whirlpool, Ken
Toshiba, Panasonic,Philips, Inalsa, Eurkaforb,, Caselogic, HP,Iball, Sony, Acer, Compaq,Dell,
Apple, HCL, Creative, Zenith, Canon, Epson, Bit, Dlink, Linksys, Netgear,Bandridge, Kingston
Intex, Logitech,Ultra, UTV,Paramount, I-Mate, Blackberry,Motorola, Nokia,Sony Ericsson
Threats from Imitation:
Easily imitable due to less government regulation needed.
To open a consumer durable store amount needed is 1 to 4 crores, so anybody can start it and give
local competition .
Less product differentiation
Countering Threats from Imitation
Making itself present in all important cities across india.
 Differentiation is possible as CROMA has its own private brands.
 The sourcing and technical support of wools worth and IT infra structure from TCS has really
upgraded.
 Providing technologies that benefit the customer through low power consumption, and Low service
requirement,
 After sales services.
Threats from Substitution:
 Internet virtual stores like ebay.com
 It can face substitution from other formats of electronics which deal with only one category
(speciality stores)
Countering Threats from substitution:
 Croma can launch its own version of Ecommerce.
 Croma itself can launch its own formats which concentrate on a particular
product category.
Threats from Hold-up:
 Once government allows 100% FDI in muti brand retail, Woolsworth will launch its own electronics
stores and croma will have trouble as its sourcing of products depends on wholly by woolsworth.
 The manufactures of electronics durables can themselves forward integrate to introduce exculsive
showrooms.
Competitor Analysis:-
Factors Reliance Jumbo e-Zone Staples Next CROMA
Digital electronics

Product Range Higher Average Average Medium Average Higher

Price Same Same Same Same Same Same

Offers Occasionally Occasionally Occasionally Occasionally Occasionally Occasionally

Updated product Less Average Average High Less High

After sale services Averge Good Average Average Average Good

Sales Team Trained Trained Trained Trained Trained Trained

Visual Best Better Better Good Good Best
Merchandising
Ambience Best Good Good Average Average Good
Location Best Good Good Good Good Best
Availability High Good Good Average Average High
Retail location Strategy:
For any site selection, there is one Retailing mantra- Location, Location and
Location.
Here we will discuss about Croma Retail Store Location present at Ansal,
Greater Noida:
The location of any retail store is decided on the basis of its surroundings. And
the reason for choosing Ansal as the location is that it is the only shopping mall
in Greater Noida where the most allied people and families used to come over
there and those who are brand oriented.
Mostly the crowed of students come to that place and the students as the youth
and they love to use electronic gadgets which are technologically updated
recently, and croma is the one who fulfils their demands. Another reason for
choosing Croma in Ansal is there is no other competitor of croma at this place.
Therefore retailer was expecting a higher foot fall at the store.
THANK YOU