the black box theorists-iim bad mom me - mahindra retail - arpit shah v5

Mom & Me – Mahindra Retail

The Black Box Theorists

Mom & Me – Mahindra Retail

Campus Champions –

Indian Institute of Management, Ahmedabad

Final Round Presentation to GMB Members

24th November 2009, Mumbai

Currently MoM n Me is positioned as a

one stop shop for mother and child…

…which may not be sufficient in

certain locations

Ahmedabad Pune

Req

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Bangalore

Delhi

Mumbai

Average Annual Customer spend

Req

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City Ahmedabad Bangalore Delhi Mumbai Pune

Required Customer spend 25400 4800 11400 6000 21694

Store Size and

LocationLocation

Customer Value Big Store Small Store

Assortment (Variety)

Time taken for purchase

in store

Conveyance time to store

We should go for big stores in each city,

with 1-2 stores per city

Not Critical in this format

In store experience

Destination Store

Brand Awareness

…as the overall experience and assortment are more important in our format

Stand-alone should be preferred in

place of malls

�Destination Store

�Low Rentals�Low Rentals

Improving Instore

ExperienceExperience

The Rubber Band Theory for store

format

…the Rubber Band Theory contd.

Discouraging Risky Practices

Instore Experience -The missing piece

The piece that completes the puzzle

Baby Food Cafes

New Brand Trials

Ready to serve Foods

Few Adult Snacks

And Drinks

Increasing Margins

Mother’s Apparel

Kids Apparel

Kids Footwear

Brand vs Private Label Strategy

Mother’s Wellness

Baby’s Wellness

Toys and Games

Travel and Safety

Footfalls

Online Opportunities

Online Sales will not reach 100 cr

Rs. 10000/sqft/annum X 70,000 sqft =

70 Crores (Optimistic projections)

Product Compatibility

Targeted Advertising is Frugal Advertising

Targeted Advertising is Frugal Advertising

Website – The loudest mouth

Death of Brand Pages = Death of the Brand

Death of Brand Pages = Death of the Brand

What your competitors have and you do not:

Forums and Blogs

Technology for Online footfall wars

Store StaffStore Staff

Profile of store staff to provide unique

customer experience…..

Adjacent Opportunities

Private Lines

Distributors for International Brands

Tie up with Indian Brands

Target segment Overlap – Sec A, A1

Perfumes Perfumes

- Highest sales/sq ft

World’s biggest brands – Not available in

India

Baby Room Solutions Services –If you didn’t know, we currently sell every single piece in this picture separately.

Areas of Concern – Ahmedabad, Pune

Big Stores – 1 to 2 per city

In-store ExperienceIncreasing Margins

Private Labels Footfalls

E-commerce difficult

Online MarketingStore StaffAdjacent Opportunities

Pune

Stand Alone Stores, not in mallsEvangelism

For those parents who see an astronaut

in their little kid….

Thank You!

AppendixAppendix

There are two broad strategies for Revenue

Expansion

Sh

are

of

wal

let

Broaden Target

Incr

ease

S

ervi

ce

Offe

rings

• Increase repeat clientele

• Improve instore experience

•Additional Services

• Beauty Salon

• Masseurs

Customer Base

Broaden TargetMarket

• Young upwardly mobile career women

• Women’s apparel

• Fashion accessories

•Young teens

• Toys

• Chocolates

Delayed Differentiation can reduce Costs

in the Travel and Safety Category

Customer

ImportReorder

Quality VarietyDelayed Differentiation

Customer

Import

Quality andVariety Reorder

Europe India

Current Sourcing Strategy

Category and Merchandising Strategy

Category Roles

Preferred

• Mothercare Products

• Mattel products

Destination

• Imported Strollers

•International Branded

•Maternity Wear

•Kids Play area

Category Roles

Seasonal

• Winter wear

• Rainy season wear

Convenience

• Cerelac

• Baby oil

• Baby Cream

...attracting and retaining the right talent

G o i n g u p t h e l a d d e r

A u t o m a t i n g m u n d a n e j o b s

C o m p e n s a t i o n