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To benchmark national and international bookstore
chains with respect to the non-books category

To determine the appropriate non-books merchandise
range within a bookstore

To study feasibility of private labels in the non-books
category

To propose strategies to drive the non-books category
business for Crossword
In-depth Interviews: 8 Males,    Quantitative Analysis
  7 Females, 2 Employees of             through a                         Strategic
     Landmark Lucknow,               questionnaire.       Data Analysis   direction
Employees of Odyssey (Trichy),      Responses from         using SPSS,    based on
    Landmark(Lucknow),           Mumbai, Bangalore, Ch        Excel          the
 Shopper studies at Landmark     ennai, Delhi, Ahmedaba                   findings
Lucknow, Crossword Chennai             d, Lucknow
People visit a bookstore with the        Most of the promotions, special events
Through Primary




                    intention of spending time unlike a      etc. are centered on books – Other
                    music store or a gift store              categories are generally ignored
   Research




                                                             Music/movies section not updated
                    Book lovers do not mind other            regularly – No procurement of
                    categories taking up space so long a     unavailable CDs on special orders
                    good collection of books is maintained   (unlike books)



                  http://www.youtube.com/watch?v=em
                               cOKblKELk
Expectations in music section varies
                                                            Most people felt Indian bookstores
   Through Primary




                     with the city – City-specific
                     merchandising strategy for             should start selling eBook readers like
                                                            Kindle
      Research




                     music/movies required


                     Bookstores have unique gift items
                                                            There is scope to engage the customer
                     compared to gift stores – but most
                                                            through various activities – coffee
                     customers found these items to be
                                                            shops, gaming kiosks etc.
                     expensive

Based on these insights, we have segmented the consumers and given recommendations accordingly
Landmark is doing better in ambience,
                    variety & experience to an extent


                    Crossword is preferred for layout, assistance
                    & experience. The only weak aspect is the
                    non-book item options


                    Odyssey has preference for variety of
                    offerings. Most people prefer local
                    bookstores for price and convenience


Based on user preferences of parameters like
Price, Convenience, Variety, Ambience,
Experience, Layout, Assistance and
Overall customer preference
Not difficult
                                                          M
                                                      L   e
 Landmark has more non-product offerings              o   r
 Survey results clearly indicate higher percent      c   c
                                                      a   h
of (36%) people feeling that the store is too         t   a
                                                                     Its ok                                     Crosword
cluttered                                             i   d                                                     Landmark

 People feel Landmark is more cluttered when         n   i
                                                      g   s
compared to Crossword even though it hasn’t               e
                                                   Difficult to find items
affected too much on its store preference
 But it would become be a deterrent in the
amount of purchase made                                                       0   20         40       60   80
                                                                                       Percentage (%)

   Striking the right balance between the amount of merchandise offered and the store
                                   atmosphere is vital
Segment Characteristics                   Needs/Preferences
Young     19-23 years – Students          Attractive display
Browsers  Come with friends (more of a    Recommendation in Books and
           time-pass visit)                 Music/Movies required to create
          Weekend visitors (more           Impulse Purchase
           frequent)                       Prefer better assortment
          Don’t care about variety of
           books
Segment Characteristics                    Needs/Preferences
Family    26-40 years – Working            Atmosphere engaging kids
Shoppers   Population                        (games/toys/children books)
          Income range INR 8-20 lakh       Home décor items,
          Come with family – Visit once     Men/Women special accessories
           in a month                       Customized family-photo mugs,
          Look for variety                  T-shirts
                                            Better assistance in finding
                                             items and good ambience
Segment Characteristics                      Needs/Preferences
Book     Visit with friends/alone –          Need good collection of books
Lovers    Visiting for last 6-7 yrs           No disturbance in the book
         Income 5-7 lakh – High book          section
          purchase intention                  Prefer proper assortment of
         Moderately frequent (once/more       books
          in a month)                         Ambience to spend time, relax,
         Seek non-books only for specific     read and choose books
          requirements
Segment Characteristics                     Needs/Preferences
Value    23-29 years – Entry-level job      Affordable quality
Seekers   positions                           products/Variety (especially
         Price-conscious, Gifts searchers,   gifts)
          Recent visitors                    Offers would interest them,
                                              Good ambience preferred
Segment Characteristics                  Needs/Preferences
Premium  35 years and above, Income 15-  Unique collections of lifestyle
Buyers    50 lakh                          products
         Less frequent (Visit when time  Home decor, watches, pens,
          is available)                    bags, ties, cufflinks etc.
         Visit alone, SEC A category
60-65% of revenues from books and music.
Most stores are located in malls.
Stocks music, movies, toys, gifts, stationery, games, home décor, perfumes, leather goods,
cards among others
City-specific strategy. Reduced space for books in tier-II cities
Stocks watches, sun glasses and other premium lifestyle products in major cities
Positioned as a leisure store
 Equal importance to book, movies and music, toys and stationeries
Book lovers feel that the staff aren’t properly trained to guide them in their selection
Launched ‘Toyopia’ – Independent toy store, ‘The eyewear store’ – optical store
Multiple formats
Borders Express, Borders airport stores, Borders Outlet, Calendar stores, mall kiosks
Predominantly books, movies/music
‘Paper chase’ concession stores for stationery products
US Stores have Seattle’s Best café
Specialty calendar division
eBook readers, audio
Barnes and Noble
Huge upscale bookstores
Stores contain a Starbucks café
Private labels
‘Nook’ – eBook reader
‘Barnsie’ – a teddy bear
‘GameStop’ – Video games and entertainment retailer spun off from Barnes and Noble
Categories eBook reader, Movie posters, Greeting
            Cards, Home Décor, Bundle related
            movies/music and books
           Premium lifestyle products – Branded
            watches, sun glasses, high-end pens, ties,
            cufflinks etc.
Toys   Increase focus on Board games – Customers
        associate board games with bookstores
       Engage the customer – Set up a small play
        area, Kiosks with jig saw puzzles/board
        games
Gaming Set up a small gaming area-consumers can try
        consoles
       Stock more consoles like Sony PS2/PS3/PSP
Music/Movies Maintain wider range of genres based on
              local popularity e.g. Rock/Hip
              Hop/Techno in Metros
             Organize events around music and
              movies – Gift merchandise autographed
              by music/movie artistes
Music/Movies Influence consumers – Display a list of
              top selling Music & Movie CDs/DVDs
              each month in books section
             Extend ‘Crossword Recommends’ to
              Music – High-end customers prefer
              buying original music
Music/Movies Maintain Classics in all
              languages/genres. Better assortment of
              categories – Most Popular/Latest on top.
             Reintroduce ‘Juke Box’ – to listen before
              buying. Add more accessories – Branded
              Headphones/Mics
Gift Items Unique and exotic gifts; Stock premium,
            region-specific and traditional gifts
Private   Customized Gifts/Mugs/T-shirts with prints
Labels     (order and pick up later, browse other
           categories meanwhile)
          Toys/Home décor/Stationery – Specifically
           target value seekers
•   Interactions with singers, musicians
 Events    •   Launch events of independent music labels
           •   Gaming contests in the summer
           •   Rubik’s cube challenge
           • Package related items together
Bundling   • Books, DVDs of movies based on the book,
             Music CDs, Movie posters
Gaming   • Customers can play , try various
Corner     consoles and new games


Kiosks
         • Print pictures on mugs and t-shirts
         • Get their portrait sketched
• Tables with jigsaw puzzles and board games
Board      can be placed across the toys and games section
Games

         • Kids’ section in stores like Barnes and Noble resemble a
           kindergarten
         • Crossword should set-up a small play area in bigger stores
 Kids’   • Occasional weekend events involving kids should be organized
Corner
         • Parents will stay in the store for longer duration
         • This will have a positive impact on the sale of toys
Customized Gifts                  Gifts                       Children Book Section
                                                                                                                             Option for
                   Premium
                   Products/                     Movies                   Info Desk
                                                                                                                               cross-
                   New items                                                                                                   selling
                                                                                  Crossword
                                                  Music                          Recommends                                   adopted
                   Games                                                        (Music/Movies)                                 books,
                                                                                                           All Varieties
                   Kiosk            Seats
                                                                                 Crossword                                    movies
                                                 Stationery                     Recommends
                                                                                  (Books)
                                                                                                                             and music
                                                                   Promos
                   Coffee Shop
                                             Gaming
                                                                              Popular books              Best Sellers/ New
                                                                                                              Arrivals
                    Kids
                    Play                         Toys                                                    Clear Demarcation between
                    Area                                                                                   books and Non-Books
                               Billing Counter                 Entrance                          Seats



                                 NON-BOOKS                                                 BOOKS


Activities to engage the customer                             Prominent distinguishable section
                                                              for Promos
User perceptions



The ANOVA test shows significant
difference between the perceptions
among customers that in Landmark,
it is tougher to find items as they
have too many products compared to
Crossword



                                      There is not much difference
                                      between the user preference
                                      levels on the overall store. Thus,
                                      even though Landmark has a
                                      hindrance with too much product
                                      display it hasn’t affected the
                                      overall ratings
Distinction between book lovers and general people
                entering a bookstore

              • Discriminant analysis was done to
              find the distinguishable factors
              between book lovers and others who
              come to the book store
              • Non-book preference emerged as the
              factor (Significant through
              discriminant function)

              Implication:
              People don’t look for non-book items
              displayed in the store. But most of
              them don’t mind non-book items
              displayed unless it is not too
              disturbing with the exception of a
              few. This is common across the
              demographics
Bookstore Customer Segmentation




Cluster Analysis was done to come up with the segmentation of customers in bookstores.
Five cluster solutions was identifiable. Based on these, ‘Looking for entire family
needs’, ‘Presence of Limited Category’, ‘Difficulty in finding’ were the significant
factors that can be distinguished across clusters along with other demographic variables

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Crossword case study

  • 1.
  • 2. To benchmark national and international bookstore chains with respect to the non-books category To determine the appropriate non-books merchandise range within a bookstore To study feasibility of private labels in the non-books category To propose strategies to drive the non-books category business for Crossword
  • 3. In-depth Interviews: 8 Males, Quantitative Analysis 7 Females, 2 Employees of through a Strategic Landmark Lucknow, questionnaire. Data Analysis direction Employees of Odyssey (Trichy), Responses from using SPSS, based on Landmark(Lucknow), Mumbai, Bangalore, Ch Excel the Shopper studies at Landmark ennai, Delhi, Ahmedaba findings Lucknow, Crossword Chennai d, Lucknow
  • 4. People visit a bookstore with the Most of the promotions, special events Through Primary intention of spending time unlike a etc. are centered on books – Other music store or a gift store categories are generally ignored Research Music/movies section not updated Book lovers do not mind other regularly – No procurement of categories taking up space so long a unavailable CDs on special orders good collection of books is maintained (unlike books) http://www.youtube.com/watch?v=em cOKblKELk
  • 5. Expectations in music section varies Most people felt Indian bookstores Through Primary with the city – City-specific merchandising strategy for should start selling eBook readers like Kindle Research music/movies required Bookstores have unique gift items There is scope to engage the customer compared to gift stores – but most through various activities – coffee customers found these items to be shops, gaming kiosks etc. expensive Based on these insights, we have segmented the consumers and given recommendations accordingly
  • 6. Landmark is doing better in ambience, variety & experience to an extent Crossword is preferred for layout, assistance & experience. The only weak aspect is the non-book item options Odyssey has preference for variety of offerings. Most people prefer local bookstores for price and convenience Based on user preferences of parameters like Price, Convenience, Variety, Ambience, Experience, Layout, Assistance and Overall customer preference
  • 7. Not difficult M L e Landmark has more non-product offerings o r  Survey results clearly indicate higher percent c c a h of (36%) people feeling that the store is too t a Its ok Crosword cluttered i d Landmark  People feel Landmark is more cluttered when n i g s compared to Crossword even though it hasn’t e Difficult to find items affected too much on its store preference  But it would become be a deterrent in the amount of purchase made 0 20 40 60 80 Percentage (%) Striking the right balance between the amount of merchandise offered and the store atmosphere is vital
  • 8. Segment Characteristics Needs/Preferences Young  19-23 years – Students  Attractive display Browsers  Come with friends (more of a  Recommendation in Books and time-pass visit) Music/Movies required to create  Weekend visitors (more Impulse Purchase frequent)  Prefer better assortment  Don’t care about variety of books
  • 9. Segment Characteristics Needs/Preferences Family  26-40 years – Working  Atmosphere engaging kids Shoppers Population (games/toys/children books)  Income range INR 8-20 lakh  Home décor items,  Come with family – Visit once Men/Women special accessories in a month  Customized family-photo mugs,  Look for variety T-shirts  Better assistance in finding items and good ambience
  • 10. Segment Characteristics Needs/Preferences Book  Visit with friends/alone –  Need good collection of books Lovers Visiting for last 6-7 yrs  No disturbance in the book  Income 5-7 lakh – High book section purchase intention  Prefer proper assortment of  Moderately frequent (once/more books in a month)  Ambience to spend time, relax,  Seek non-books only for specific read and choose books requirements
  • 11. Segment Characteristics Needs/Preferences Value  23-29 years – Entry-level job  Affordable quality Seekers positions products/Variety (especially  Price-conscious, Gifts searchers, gifts) Recent visitors  Offers would interest them, Good ambience preferred
  • 12. Segment Characteristics Needs/Preferences Premium  35 years and above, Income 15-  Unique collections of lifestyle Buyers 50 lakh products  Less frequent (Visit when time  Home decor, watches, pens, is available) bags, ties, cufflinks etc.  Visit alone, SEC A category
  • 13. 60-65% of revenues from books and music. Most stores are located in malls. Stocks music, movies, toys, gifts, stationery, games, home décor, perfumes, leather goods, cards among others City-specific strategy. Reduced space for books in tier-II cities Stocks watches, sun glasses and other premium lifestyle products in major cities
  • 14. Positioned as a leisure store  Equal importance to book, movies and music, toys and stationeries Book lovers feel that the staff aren’t properly trained to guide them in their selection Launched ‘Toyopia’ – Independent toy store, ‘The eyewear store’ – optical store
  • 15. Multiple formats Borders Express, Borders airport stores, Borders Outlet, Calendar stores, mall kiosks Predominantly books, movies/music ‘Paper chase’ concession stores for stationery products US Stores have Seattle’s Best café Specialty calendar division eBook readers, audio
  • 16. Barnes and Noble Huge upscale bookstores Stores contain a Starbucks café Private labels ‘Nook’ – eBook reader ‘Barnsie’ – a teddy bear ‘GameStop’ – Video games and entertainment retailer spun off from Barnes and Noble
  • 17. Categories eBook reader, Movie posters, Greeting Cards, Home Décor, Bundle related movies/music and books Premium lifestyle products – Branded watches, sun glasses, high-end pens, ties, cufflinks etc.
  • 18. Toys Increase focus on Board games – Customers associate board games with bookstores Engage the customer – Set up a small play area, Kiosks with jig saw puzzles/board games
  • 19. Gaming Set up a small gaming area-consumers can try consoles Stock more consoles like Sony PS2/PS3/PSP
  • 20. Music/Movies Maintain wider range of genres based on local popularity e.g. Rock/Hip Hop/Techno in Metros Organize events around music and movies – Gift merchandise autographed by music/movie artistes
  • 21. Music/Movies Influence consumers – Display a list of top selling Music & Movie CDs/DVDs each month in books section Extend ‘Crossword Recommends’ to Music – High-end customers prefer buying original music
  • 22. Music/Movies Maintain Classics in all languages/genres. Better assortment of categories – Most Popular/Latest on top. Reintroduce ‘Juke Box’ – to listen before buying. Add more accessories – Branded Headphones/Mics
  • 23. Gift Items Unique and exotic gifts; Stock premium, region-specific and traditional gifts
  • 24. Private Customized Gifts/Mugs/T-shirts with prints Labels (order and pick up later, browse other categories meanwhile) Toys/Home décor/Stationery – Specifically target value seekers
  • 25. Interactions with singers, musicians Events • Launch events of independent music labels • Gaming contests in the summer • Rubik’s cube challenge • Package related items together Bundling • Books, DVDs of movies based on the book, Music CDs, Movie posters
  • 26. Gaming • Customers can play , try various Corner consoles and new games Kiosks • Print pictures on mugs and t-shirts • Get their portrait sketched
  • 27. • Tables with jigsaw puzzles and board games Board can be placed across the toys and games section Games • Kids’ section in stores like Barnes and Noble resemble a kindergarten • Crossword should set-up a small play area in bigger stores Kids’ • Occasional weekend events involving kids should be organized Corner • Parents will stay in the store for longer duration • This will have a positive impact on the sale of toys
  • 28. Customized Gifts Gifts Children Book Section Option for Premium Products/ Movies Info Desk cross- New items selling Crossword Music Recommends adopted Games (Music/Movies) books, All Varieties Kiosk Seats Crossword movies Stationery Recommends (Books) and music Promos Coffee Shop Gaming Popular books Best Sellers/ New Arrivals Kids Play Toys Clear Demarcation between Area books and Non-Books Billing Counter Entrance Seats NON-BOOKS BOOKS Activities to engage the customer Prominent distinguishable section for Promos
  • 29. User perceptions The ANOVA test shows significant difference between the perceptions among customers that in Landmark, it is tougher to find items as they have too many products compared to Crossword There is not much difference between the user preference levels on the overall store. Thus, even though Landmark has a hindrance with too much product display it hasn’t affected the overall ratings
  • 30. Distinction between book lovers and general people entering a bookstore • Discriminant analysis was done to find the distinguishable factors between book lovers and others who come to the book store • Non-book preference emerged as the factor (Significant through discriminant function) Implication: People don’t look for non-book items displayed in the store. But most of them don’t mind non-book items displayed unless it is not too disturbing with the exception of a few. This is common across the demographics
  • 31. Bookstore Customer Segmentation Cluster Analysis was done to come up with the segmentation of customers in bookstores. Five cluster solutions was identifiable. Based on these, ‘Looking for entire family needs’, ‘Presence of Limited Category’, ‘Difficulty in finding’ were the significant factors that can be distinguished across clusters along with other demographic variables