This file includes exclusive details of Tata Croma. Details are provided as follows. Executive Summary Socio-Economic Importance of TATA CROMA Identifying the Retail Type and its Product categories Key Strategic drivers of the Retail Industry Modern Technologies deployed by TATA CROMA Marketing Mix Strategy by TATA CROMA

1. Universal Business
School
Ronak Nitin Modi
MBA3-1355
Retail visit at Tata Croma

2. Table of Contents
Executive Summary
Socio-Economic Importance of TATA CROMA
Identifying the Retail Type and its Product categories
Key Strategic drivers of the Retail Industry

3. Modern Technologies deployed by TATA CROMA
Marketing Mix Strategy by TATA CROMA
Executive Summary
Tata Croma is India’s first national, large format, specialist retail chain for
consumer durables & electronics. Croma is owned and run by Infiniti Retail
Limited Infiniti Retail – a 100% subsidiary of Tata Sons. Woolworths Ltd is a
company which provides technical support and strategic sourcing facilities from
it’s The first Croma store was launched in Juhu, Mumbai on October 9, 2006.

4. Croma has over 180 brands and 6000 products across eight categories which suit
the profile of the customer. These categories include Mobile Phones, Digital
Cameras, Computers, Laptops, Entertainment, Home Appliance, Kitchen
Appliance, Gaming and Accessories. Presently, there are more than 101 Tata
Croma stores in 25 cities. The stores are spread across the states of Maharashtra,
Gujarat, Delhi, Karnataka, Chandigarh, Andra Pradesh, Tamil Nadu, and Punjab.
It also offers and helps customers to buy their favorite products for their own place
through Croma’s online portal known as ‘www.cromaretail.com’. An authorized
Croma Care Centre provides after sales support for all Croma branded products
24/7.
The Chroma Zip stores is an outlet for portable electronic items and meant for the
mobile consumer. The first Zip store was opened on Jun 22, 2007 at
the Mumbai domestic airport. Croma has also launched its own tablet based
on Android operating system called Croma Tablet. In 2012, Infiniti retail acquired
the Indian retail business of Woolworths for A$35 million, or Rs. 200 crore.
Brand Philosophy
If service wasn't important.
If technology wasn't complex.
If variety wasn't confusing.
We would have no reason to be in business.

5. We help you buy.
POWER OF 49
VISION OF CROMA
The vision of croma is to be the number one in retail in electronics and durables
products in India, through quality products and deliver services. It should imbibe a
world class system to bring in delight to all our associates and the society at large.
MISSION OF CROMA
The mission our enterprise is to provide unique customer satisfaction through
innovation, quality, productivity, human resource development, continuously
striving for excellence with pride in our values and confidence in our approach.

6. “THE OVERALL MISSION OF CROMA IS TO
BE THE FIRST CHOICE OF THE
CUSTOMER”
Socio-Economic Importance of Tata Croma
The urban consumer electronics and durable retail industry is growing at an annual
rate of 7% - 10% and the rural consumer electronics and durable retail industry is
growing annualy by 25%. Croma is one of the leading players in the growing
industry and is also fulfilling the customers needs and wants by providing them
superior products and values.
I have chosen Tata Croma retail store located in Bhayander (West) as it is near to
my home and it is located at the place where majority of the public resides. The
store is surrounded by Mall, College, Coffee Shops, International call center,
Restaurants. Bhayander’s most people spend their precious evening time by
shopping in mall, watching movies in theater, relaxing in coffee shops, Surfing for
electronics and apparials. It is the main area in Bhayander.

7. The total population of Bhayander is around 8,50,000 plus; of which male are 4.8
lakh and females are 3.8 lakh.
Large number of people buys electronic gadgets such as Laptops, Digital camera,
Television, Home Theaters, Mobile phones, Air-conditioner, Refrigerator, Coolers,
Water Purifier, Games(Xbox 360 and playstation)for household from Croma
because:
 Croma provides value for money product.
 Huge variety of products is available under one roof.
 Non-availability of other branded electronics and durables retail outlet.
 Croma has good association with muitinational companies like Nokia,
Motorola, Sony, Blackberry, Voltas, LG, Acer, Apple, Canaon, Panasonic,
Samsung, Micromax, HCL, HP, Intex, Lenovo, Hitachi, Moserbear, Nikon,
Compac, Kodak, Whirlpool, Videocon, UBL, Creative, IFB.

8.  Customer can physically experience the product on shelf.
 Personal assistance is provided by the sales staff
 Training (How to use the product) is provided to the customer by the expert
team of croma.
 People do not prefer travelling to other places when they get the same
product.
Tata Croma has few adjacent retailers with which they have to share traffic.
Therefore it has quite a few advantages which work in its favor.
The advantages are:
 Less Competition
 Low rental cost.
 Huge parking space
 More footfalls
 Comparatively less cost on advertisement
 High customer base
 Sustainable profit margins.
 Cater large number of people.
 Infrastructure development on a large scale.
 Migration of people from different locations because of development of
infrastructure .
 Medium and High income level of people in that area.
The disadvantages are:
 Price is comparatively higher as compared to other local electronics and
durable stores in that particular area.
 More focus is giving to gaming products like Xbox 36 & Playstation, Led
Television, Digital camera, Laptops, Home Theaters, Mobile phones which
are placed on ground floor. But, products placed on the first floor such as

9. Washing Machine, Fridge, Water purifiers, Dryers, Trimmers and others are
giving less importance.
 Late arrival of products at Croma-Bhayander because Croma follows its own
distribution structure. It normally takes 7-10 days to bring products on
shelfs.
 Non-availability of free demos of products such as Xbox, Mobiles, Digital
camera because of unexpected things like Battery dying problem etc.
 Croma donot perform more advertisment.
Consumer Buying behavior towards electronic and
durable products
Consumer durables and electronics are items that provide a flow of services to a
consumer over a period of time. Examples include TVs, household appliances,
audio-visual equipment, furniture etc. The real level of spending on durables has
surged in the last eight years.
The reasons are:
 Falling prices for many durable products.
 Low interest rates which have encouraged people to spend more on “big
ticket items”
 Strong consumer confidence and borrowing levels. The demand for
consumer durables is more income elastic than for non-durables which are
usually staple items in people’s monthly budget.

10. Identifying the Retail Type and its Product
categories
Croma - The Electronics Megastore
Big Box Speciality Retail Store For Consumer Electronics & Durables

11. Product Categories
PRODUCT CATEGORY
Key Strategic drivers of the Retail Industry
With the growing pace in technological advances, educational, changing trends and
hyper competition, it is very difficult for the retailers to survive this competition,
on and off the web. Revolutionary thinking needs to be possessed by the retailers
to thrive in today’s world. There need to be a few changes that have to be made by
the retailer to sustain in this hyper-competitive retail world.
RETAIL TYPE
Croma the electronics megastore is a Big Box retail store for
consumer electronics and durables.

12. They are:

A focused approach to strategic planning. 
Strategic pricing of products
Proper formulation and execution of Business models for different
Outlets.

Advanced marketing skills.

A stronger customer focus. 

Enhanced exposure on the Internet. 


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Some of the few drivers in the electronic and consumer durable
industry which are and can be used by Tata Croma.
 Price Sensitivity:
The consumer electronics and durables industry is highly price sensitive.
The low end models sell due to their volume and low pricing strategy for the
Strategic
drivers
Focused
approach on
Strategic
planning
Advanced
Marketing
skills
Strong
Customer
Focus
Exposure to
Internet

13. lower range consumer. For the medium and upper range customers - brand
name, technology and other features are important to sell.
 Availability of newer variants of a product:
In today’s hyper-competitive business scenario, the consumer have a large
variety of choices in his/her hand. Consumers are looking for new products
which are to be developed and sold according to the consumer’s changing
behaviors, taste and preferences.
 Increase in disposal Income:
With the growing levels of education and growing economics, the net
disposal income is also growing accordingly, thus, the standard of living is
also rising which results in rise of purchasing power.
 Availability of Finance Schemes:
In today’s world, EMI has become very common where consumers pay a
certain amount at the point of purchase and the remaining payments are
spread over a time period depending on the consumer. This gives the
consumer access to expensive products.
 Advertising and Brand Promotion:
The unique style of promoting and advertising for discounts, free gifts and
exchange offers helps Croma distinguish itself from the others.
 Festival Seasons:
Festivals in India are in abundance. During this season, retails come out with
offers and discounts to cash in on the festive mood. This period will always
be one of the most important growth drivers of the consumer electronic and
durables industry.
Modern Technologies deployed by Tata
Croma

14. The evolution of technology within the retail and e-commerce space is shaping
how consumers behave and interact with brands and savvy, smart retailers know
that understanding shoppers’ behavior is a key for success. These retailers realize
they can utilize technology to capitalize on consumer needs and customized
offerings to help significantly increase their bottom lines.
Croma as a retailer follows a lot of modern trends to increase customer satisfaction
and save time on both ends (retailer and customer). The modern technologies
deployed by Croma are given below:
Electronic Point-of-Sale System:

15. An EPOS system is one in which a universal product code (black
and white stripes or barcode) is read by a laser scanner connected
to a computer. On scanning a product, the computer records the
sold items and displays the price of the products to the customer.
Eventually, an itemized bill is generated and given to the customer
as the receipt.
Electronic Data Interchange:
EDI is the electronic exchange of data that takes place between the
retailer’s computer and that of his supplier. The exchange consists
of orders, delivery notices, invoices, returns and sales data. Its
saves the lead time of deliveries and large savings can be made by
the consequent reduction in inventory required. Given below is the
process a business would take have to go through with and without
EDI.
Quick-Response Replenishment Systems:
When EPOS systems are combined with EDI, retailers are in effect
adopting just-in-time replenishment or quick-response (QR)
replenishment methods. Ordering merchandise is not based on
historical but current sales. An advantage that that the QR
Replenishment Systems have is the reduction in stock outs and the
amount of inventory carried. This reduces the cost to the retailer
and improves the service to the customer. The image below shows
a simplified quick-response replenishment system.
CRM
Customer Relationship Management is much healthier than other
retailers. No doubt, being a Tata Sons Ltd. subsidiary, the TCOC (Tata
Code of Conduct) helps them learn the rules of being an employee.
Ethics is the key motto of the TCOC. Procedures about complaints and

16. other queries inside the company are present in the TCOC which help
the employees to work better and pressure free.
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


17. Marketing Mix Strategy applied by Tata
Croma
Product Strategy
A product is seen as an item that satisfies what a consumer demands. It is a
tangible good or an intangible service. Tangible products are those that have an
independent physical existence. Every product is subject to a life-cycle including a
growth phase followed by a maturity phase and finally an eventual period of
decline as sales falls. Marketers must do careful research on how long the life cycle
of the product they are marketing is likely to be and focus their attention on
different challenges that arise as the product move.

18. Place Strategy
It refers to providing the product at a place which is convenient for consumers to
access. Various strategies such as intensive distribution, selective distribution,
exclusive distribution and franchising can be used by the marketer to complement
the other aspects of the marketing mix.

19. Price Strategy
Price is the amount a customer pays for the product. The price is very important as
it determines the company's profit and hence, survival. Adjusting the price has a
profound impact on the marketing strategy, and depending on the price elasticity of
the product, often it will affect the demand and sales as well. The marketer should
set a price that complements the other elements of the marketing mix.
Three basic pricing strategies are: market skimming pricing, market penetration
pricing and neutral pricing.
BUNDLING

20. PROMOTION
All of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements
such as: advertising, public relations, sales organization and sales promotion.
TIME PRICING
FESTIVAL PROMOTION PRICING

21. Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public
relations is where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word-of-mouth is any apparently informal communication about the
product by ordinary individuals, satisfied customers or people specifically engaged
to create word of mouth momentum
BELOW THE LINE PROMOTION

22. ABOVE THE LINE PROMOTION
NEW PROMOTION STRETEGY