Retail
Chronicles
Monthly Newsletter | Volume 5 | Issue 1 | February 2020
CONTENTS
03
08
12
PUMA: A STORE THAT SPEAKS A ALOT
SENIOR TEAM
How do you push yourself? By setting goals. For PUMA, it's to be the Fastest Sports Brand in the world.
Surabhi Upadhyay | Sachin Ghosh | Sagar Anam | Onkar Joshi | Bharat Gupta
WOODLAND The brand Woodland is owned by Aero Group, the Flagship Company which began its operations in 1960's
BATA: EVERYSTEP. EVERYWHERE India's Favorite footwear brand
16
NIKE: JUST DO IT Sustainable innovation engine for grwoth
is
CONTENT TEAM Abhishek Wakode | Parth Reshamiya | Keerthana Sontam | Yash Jain
DESIGN TEAM Ayush Shah | Pushpak Holani | Ayush Goyal
powerful
EDITING TEAM Ayush Gupta Abhishek Wakode
PUMA A STORE THAT SPEAKS A LOT - PARTH RESHAMIYA PGDM RM
Retail Chronicles | Page 3
February, 2020
Retail stores, a stop where consumers meet the products.As consumers and retailers embrace the digital age, it is time to re-evaluate the true value of the store and the role it plays in supporting wider retail business performance. Puma has understood the importance of retail store experience in a very early stage and designed a store that speaks to the customers. Here is an interview with the Adam Patrick, Puma AG's senior global head of brand management
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Earlier Puma was selling shoes, apparels and so many things, but the store of the Puma was not speaking anything. Executives at Puma brainstormed and came up with the Puma had undertaken the 'Joy of Sports' re-positioning program that scooped Grand Prix honors at the 2011 Jay Chiat Strategy Awards. It now had a playful, fun positioning. Just as it's always been, it was a sneaker you could wear for track-and-field competition. But it was also a shoe you can use for playing darts, shooting, pool, and for so many sports activities.
February, 2020
So the new vision for the store was to be more than just a place that sold shoes; it had to offer a little entertainment. Puma wanted a place where customers could play with each other and interact. The idea, Puma continued, was to reinforce the new image of the brand: "Puma is all about performing, about bringing the best, but still having fun." Patrick's team turned to technology for four in-store executions that made shoppers' experience of the brand more fun. Puma Joy pad No shopper can ignore a wall display of 32 iPads linked together to create what Petrick called "a collaborative immersive brand experience". And Puma's in-store bet is that not many consumers will pass up the opportunity to touch and play.
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Such walls have been installed in Puma stores in Beijing, London, New Delhi, Paris and Santiago (with New York and Barcelona soon to follow). In terms of back-room logistics, a serverbased app called 'Mastermind' tells each iPad what to display. And an iPad-based 'Henchman' enables each digital device to follow orders. That allows the brand to start challenging consumers to interact. Puma started modestly with 'Lining Art', a touchbased program that offers participants a chance to stretch their creative muscles. Then it launched 'Beat Bolt' – an interactive reflex-testing game that challenges players to 'catch' Usain Bolt, the Jamaican Olympic sprint champion and Puma spokesperson – and 'Copy Cat', that asked customers to memorize and repeat a series of images and sounds. "It's an experience that proves the brand"
February, 2020
The Unsmart Phone Puma's second piece of in-store engagement is decidedly lowering down on tech and higher whimsy. The Unsmart Phone is "an old-style phone that sits in our space and has a little detector that detects motions, and rings when people walk up to it." Shoppers who pick up the phone will hear little audio clips that range from football trivia to such offbeat queries as: "Would you rather be a giant hamster or a tiny rhino?" It's there just to give you a smile. It doesn't do anything else. It's very simple, very fun, and incredibly useful for us in our spaces. It's a cheap, tiny little thing that we have done to provide a tiny little injection of the brand into the store and give people a smile. The Peep Show The driving insight behind a series of small, red, eye-level doors in Puma dressing rooms is this: Puma knew if it can get people in retail spaces into our changing rooms, the odds of them [purchasing a product] go up considerably, to as high as 65% to 70%. What's important to Puma is giving them a reason to get into that changing room beyond just trying on some apparel, and to get them to enjoy their time in there experiencing the brand. The Puma does nothing more than give you a little feeling for the core of the brand without having to inform you or educate you. It started with a question, 'How can it create a view into another world?' And this is where the technology brought us." Retail Chronicles | Page 6
February, 2020
Puma Factory Puma Factory is a tablet-based customization engine the brand has been putting in some of its stores and hosting at events. "It is essentially about teaching you how to make shoes when you're sitting there at the tablet," said Petrick. "It enhances the experience by letting you hold the materials. it gives you a very advanced, very high-end experience of the actual materials that are actually in the shoe." Puma's approach to the tablet-creation process, Petrick said, was to keep the experience entertaining – a reflection of the playfulness of the brand – but also to "focus on the beauty of the actual shoe".
Retail Chronicles | Page 7
This is the best way to do social shopping. It's how Puma gets people together. When you see people gathered around a computer screen, it always is a transformative experience, particularly when they're in your space, your store. And it is social shopping because Puma is getting people together to create shoes on a little device with a fun, simple experience." In an era where technology is becoming the important factor for advancement, Puma used the smartest way to use the technology in its own benefit. Puma created a store that speaks.
February, 2020
WOODLAND “TO EMPOWER EXPLORERS EVERYWHERE” - YASH JAIN PGDM RM
Retail Chronicles | Page 8
February, 2020
INTRODUCTION Woodland is the first name you consider when you want to go for a trek or any arduous activity because of its toughness and robust design. This is because it always tries to bring in the product that is comfortable and long-lasting. Its tagline “TO EMPOWER EXPLORERS EVERYWHERE” showcase the strength of the product with the design which is fashionable and robust such that you can wear it any situation.
HISTORY Woodland limited is the multinational footwear, apparel and fashion accessory manufacturer and retailer. It started as a leather shoemaker in 1950 in Quebec,
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Canada whose main work is to export leather shoes to USSR. But after the dissolution of the Soviet Union into various states, it started to look for other opportunities and decided India as a market. Woodland entered in India in 1992 and got the tag of “first hand-stitched leather shoe company” in India. The Indians love the quality of the product as it lasts more than 5 years because of its heavy buff leather and hard rubber sole. After the initial success, it launches shoes in 5 variant color so that they can increase the product portfolio.
February, 2020
PRODUCT PORTFOLIO Earlier in 1992, the company used to cater only the male section of the society but with the advancement of time, it started carrying out female footwear. It also saw clothing as an opportunity and entered in this sector by launching various merchandises. To increase its product portfolio, it also adds clothing accessories and Bluetooth devices which makes its offering more diverse. At present, it offers footwear (core competency), apparels, accessories such as socks, gloves, eye-wears, bottle and mugs and Bluetooth devices.
TECHNOLOGY AND INNOVATION Woodland leverage technology and innovation in making products so that the quality is maintained over a period of time. It uses German Desma's advanced machines Direct Injection Process (DIP) to produce PU/TPU soles. Italian machinery is used for tanning and finishing all the handpicked hides. The ultimate goal is to make a quintessential product which has synergy between design, material and construction.
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February, 2020
ENVIRONMENT CONSONANCE The word “Woodland” itself associates the brand with the environment. It associates itself with the passion for adventure, exploring and preserving the planet by reducing waste and conserving energy. It came up with the Pro-planet which main aim is to minimize the harm to the environment through eco-friendly products such as 100% recycled business cards.
PROMOTION To make its image more firmly in mind of youngsters it roped in Malaika Vaz as a brand ambassador who is a national-level wind-surfer, a certified advanced PADI scuba-diver, horse rider and football player so that they can promote the product through various sports events. They also use a digital medium such as Facebook, Instagram, Twitter, etc to promote their brand.
DISTRIBUTION CHANNEL Currently, the company has more than 600 exclusive brand outlets across the country along with shelf space in 5500 Multi-Brand Outlets with the online presence in all major shopping websites such as amazon, etc with its company website to sell their merchandises.
Retail Chronicles | Page 11
February, 2020
BATA Keerthana Sontam | PGDM RM
Retail Chronicles | Page 12
February, 2020
INDIA’S FAVOURITE FOOTWEAR BRAND All of us had a household ritual before the school started every year to buy new everything new; that included two kinds of shoes, one black shiny shoes, and one white shoe for PT.
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These shoes were mostly bought from “BATA”.Bata was widely popular for their school shoes and even though they sold other footwear, they became popular for their school shoes.
Bata was so popular in India, that even now people think Bata is an Indian brand. But in reality, it is a European Brand.
February, 2020
Introduction Bata Limited is a Czech, multinational footwear and fashion accessory manufacturer and retailer based in Lausanne, Switzerland. It was founded on 24th August 1894 by Tomáš Bata in Moravian town of Zlín, Austria-Hungary (today the Czech Republic).
At present Bata serves more than 1 million customers per day, employing over 30,000 people, operates more than 5,300 shops, manages 23 production facilities and a retail presence in over 70 countries across the five continents. Bata has a strong presence in countries including India where it has been present since 1931..
Bata in India They started making leather shoes and then because of financial difficulties in 1985 they started making canvas shoes instead of leather. During World War I the demand for Bata shoes increased and even after the war when all the shoe brands saw a decrease in sales, Bata saw an increase in sales because of its inexpensive and good quality shoes. Thomas Bata started a special way of pricing his goods which were popularly known as ("baťovská Cena", "Baťa price") where the prices of the products ended in 9, For example, $1.99, $2.99.
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The company started in India with a small operation unit located at Konnagar (near Calcutta) in 1932. In 1934 the foundation for the Bata store in Calcutta was laid. The township is now popularly known as BataNagar. Currently, it has five factories located at Batanagar, (West Bengal), Bataganj, (Bihar), Faridabad (Haryana), Peenya (Karnataka) and Hosur (Tamil Nadu).The company changed its name to Bata India Limited after going public in 1973. Today, Bata India is the largest footwear retailer in India.
February, 2020
Its extensive network of over 1200 stores across India is unmatchable to its competitors. Their stores are present in good locations in all the cities and towns. In addition to the retail stores, Bata operates a non-retail distribution network through its urban wholesale division in large scale catering to the millions of customers through over 30,000 dealers.
In the current market, there are many footwear brands available and thus consumers have a wide range of options to choose from. Bata needs to work hard on its marketing strategy as well as its product range to attract more customers and become the market leader once again.
Bata was popular for its slogan “First to Bata, then to school�, which triggers flashbacks of school days and the white canvas shoes that children wore in decades past. Bata is working hard to change its image from a brand that sells school shoes and shoes for everyone in the family to one that can be trusted for fashionable footwear It roped it Kriti Sanon and Sushant Singh Rajput were roped in to create awareness and bewilderment around the rebranding efforts. #ComeAndBeSurprised and #SurprisinglyBata were used for this campaign to promote the newly launched Red Label collection. Because of its rebranding, Bata has been able to increase its sales by 2-3% and retain a market share of 21.48%. Retail Chronicles | Page 15
February, 2020
By Abhishek Wakode
Retail Chronicles | Page 16
February ,2020
What was once merely a sports shoe company, has today become an epitome of success in the entire retail universe. Founded on January 25, 1964, Nike Inc. was originally named as “Blue Ribbon Sports�. The word Nike comes from the Greek goddess of victory and so is the company in terms of its success. The transition of Nike from a sports shoe brand towards a complete solution for all athletic needs is something that is admired and looked upon by every emerging as well as established brands. Currently, Nike has 54 subsidiaries and is currently the most valuable global apparel brand with the largest market share in almost every country it resides in.
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Nike is successful in many things like manufacturing, supplying-equipment and gears athleisure apparel, etc. but where the company truly excels is its marketing.
Nike works hard and invests heavily in marketing. Nike invests in marketing and this can be seen in its 2014 fiscal report. "...Nike spent $3.031 billion on what they call "Demand Creation." Nike's a little fuzzy on what that means (marketing can be anything from a TV ad buy to a collaboration with a niche shop). According to Matt, it's "Nikespeak for 'Advertising.'" That means that Nike spends about $100 per second on advertising." Nike is spending almost the same amount on marketing that Under Armour makes in sales. February, 2020
This article discusses the importance of marketing that Nike focuses on in 2016, "Nike spent $3.3 billion on marketing in the last year, while Under Armour did $3.96 billion in sales in the last year." Nike promotes its products by having celebrities, professional and college athletes with sponsorship agreements. Nike's first athlete to endorse their products was a Romanian tennis player named Ilie Nastase. Nike also invested in marketing early on in their establishment.
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Currently, Nike focuses on sponsorships, internet marketing, email marketing, and utilized multimedia marketing campaigns. Demographic segmentation is a factor used by Nike to target individuals according to their age, life-cycle stage, gender, occupation, and generation. Although with apparel and sports the market can be broad, for the most part, Nike primarily targets consumers who are between the ages of 15-40. Nike has emotional branding which plays on the idea of heroism (you the consumer being able to find your strength and great-ness). It is noted that they tell stories of the struggle and perseverance of an individual (whether professional or an average-day citizen) that is combating an "internal villain" (thoughts we struggle in our mind - i.e. laziness, self-worth, fears and it ends in victory.
February, 2020
Nike tries to pull on something that resonates with everyone with its slogan "Just do it", a mantra for individuals to claim when they tackle their goals. Nike claims to be socially conscious and invests back into the community. Their website has a section where they talk about helping kids get healthy and active and their passion to help communities and creating global change. Nike is also associated with Product Red which the mission of the agency is to prevent HIV transmission from
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mother to infant. Nike discusses how they try to eliminate the global issue of climate change. They make a statement saying "double the business with half the impact." Nike's vision is "To bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. Nike truly is and always will be an exceptional example of how important marketing is.
February, 2020
Retail Chronicle is a monthly newsletter of Retail Lab, the retail committee of KJ Somiaya Institute of Management Studies and Research, Mumbai. Images used in Retail Chronical are subject to copyright.
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