marketing ramms

May 3, 2023Marketing Case Study - RAMMS

A C A S E S T U D Y

Retailing, ADVERTISING, MARKETING & MERCHANDISING Services(RAMMS)

Prepared by-

Chanpreet SinghSachin Sharma

Surabhi KalaSwapnil Soni

DoMS, IISc

Course-Marketing Management

Instructor-Prof. R. Srinivasan

2 May 3, 2023Marketing Case Study - RAMMS

Index

Retail Marketing and Merchandising RAMMS- introduction

RAMMS’ History RAMMS’ Leadership RAMMS ‘Operations RAMMS’ Breakthrough RAMMS’ Clients

RAMMS ‘ Campaign Details of campaign Survey, Analysis and Result

Financial Analysis- Return on Ad Response to Case Issues RAMMS at present References


Sale of goods and services from individuals or businesses to the end-user Retailers are part of an integrated system called the supply chain A retailer purchases goods or products in large quantities from manufacturers

directly or through a wholesale, and then sells smaller quantities to the consumer for a profit

Retail Marketing

Customer Money Product

B 2 C Business

5

Holistic (integrated marketing) Marketing approachProduct Mix

Supplier’s perspective Consumer’s perspective

ProductTechnology, structure, design, color

SolutionQuality, Utility, application, compatibility

PriceCompetitive pricing, Offers

ValueOpportunity cost

PlaceMarketplace, market space, meta market

AccessEasiness of access, availability of product

PromotionAdvertisement, customer engagement

InformationKnowledge about the product & its features

Retail Marketing and Merchandising

•Retailing and Merchandising have a limited scope but firm connection with overall marketing function of a company.•It deals at the delivery stage of the product to the consumer.

DemandDesign & Productio

nAdvertisemen

tWholesal

e Retailing DeliveryCustomer satisfactio

n


Quick & efficient shopping But longer the stay at shop -> more likely to purchase

Solution- > Make shopping entertaining

Challenge:Customer wants better product at least price, least time and most convenient way

Good News:75% of buying decisions are taken at the time of purchase only



Advantages over Media ad Low cost Consumer Focus Precise Target marketing Relative Ease in evaluation

Implementation Steps Analyzing the effect of Merchandising on

consumers’ purchase decision Identifying the participating channels &

their effectiveness Allocating the functions to channels Integrating all the elements of

merchandising & retailing Measure the performance of

merchandising by linking it with trade result Challenge in execution

Cooperation of channel members Comprehension of campaign by

consumers


Got it??


RAMMS’ History

Year Milestones1960 Marketing Advertising Associates (MAA) Founded1981 MAA Communications-an independent agency with operations across

South India1991 RAMMS started as subsidiary of MAA Bozzel

1994 RAMMS declared as a Public limited company

Among India's first indigenous advertising agencies


20 year old specialized Shopper Marketing agency A team of retail experts with an intimate knowledge of the

Indian retail market

RAMMS’ Leadership

Name Designation Curriculum Remark

Experience

R. Kannan Chairman IIM, Ahmedabad 42 years

Gautam Chowdhary

President Institute of Chartered Accountants of India

34 years

Krishna Rajan Dy. President Marketing communication specialist

22 years

Presence: Bangalore. Mumbai. Delhi. Kolkata. Chennai. Hyderabad


Shopper Marketing in India is different because of the MULTIPLICITY of channels in India. RAMMS has devised an India specific methodology (DICEM) to create new paradigms in Shopper Marketing across these multiple channels

RAMMS’ Operation


Functions Descriptions

Experiential Store Design

Design of retail environments that deliver joyous shopper experiences

Retail Identity Creation Retail brands, product brands and private labels

Retail Communication Specialized in-store communication targeted at shoppers

Navigation & Way finding

Planning, design and deployment of shopper-led retail signage and way-finding systems

Project Management & Rollouts

Meticulous execution of concepts and designs, from pilot store to national roll outs

Brand Launches End-to-end product launch services from shopper centric launch campaigns to post launch metrics

Events and Promotions Conceptualization and on ground translation of in-store events through trained promoters

Manufacturer –Retailer Collaboration

Creation of platforms for long term retailer-brand collaborations that deliver the ultimate shopper experience

Shopper Research Shopper behaviour studies through observation, shadowing and conversations to derive insights

Planogramming Handling on shelf product presentation of brands and products

RAMMS’ Operation


RAMMS’ Breakthrough


RAMMS’ Clients


RAMMS ‘ Campaign


RAMMS ‘ Campaign Major campaign launched by Bangalore unit

POP (Point of Purchase) displays for Lakme Orchids nail enamels Cariba-cola flavored rum campaign

Place of campaign 1. Spencer, MG Road, Bangalore2. Topaz, Brigade Road, Bangalore

Measurement of effectiveness of merchandising

Survey and Questionnaire comprising 16 questions mostly objective

Target customer for survey Upper and upper middle class

Sample size 30 numbers

Place of campaign 1. DoMS, IISc, Bangalore2. Online- social networking

Measurement of effectiveness of merchandising

Survey and Questionnaire comprising 16 questions mostly objective

Target customer for survey Students and professionals

Sample size 30 numbers

Tools used for analysis Bar Chart, Pie Chart & Regression

Virtual survey (we did)


Q1. What is your objective of coming to the store?

To purchase cosmetics? To do window-shopping? To give company? To check out new arrivals?

RAMMS ‘ Campaign – Survey, Analysis & Results

33%

23%7%

10%

27%To purchaseTo do window-shoppingTo give companyconsumer goodselectronic devices

Inference•A major portion of visitors in stores come for checking out new arrivals

• These possibly will be the future customers for the store

•Number of customers coming to check out new arrivals in case of consumer goods is very less compared to electronic devices

•Hence it can be said that consumer goods are bought with comparatively less ponderation.


Q2. Do you prefer shopping in big departmental stores like this?

Q3. If answer to question 2 is yes, then why do you prefer shopping in these stores?

Yes70%

No30%

Inferences:

•Luxury items such as cosmetics are more appealing to consumer when sold at dedicated large departmental stores.•Convenience & quality faith are major factors of shopping taking place in malls•Merchandising alone can sufficiently influence buying decision

0

2

4

6

8

10

1210

6

34

21

4

0


Scope of ‘Merchandising’


Q4. Are you normally pre-decided on what to purchase before you come to store?

Q5. If answer to question 4 is no, then what range of goods do you usually decide after coming to the store?

Yes17%No

83%

•Cosmetics •Household Items

•Crockeries •Hygiene items

•Hard drinks

5

10

58

2

Inferences:

•Majority consumer takes decision at the time of purchase so irrespective of perception of ad, they can be attracted

•FMCG such as Household, hygiene and cosmetic items are more likely to have opportunity to influence consumers’ decision



Q6. When you move toward the cosmetics section, what is it that strikes you most?

Q7. Have you seen or come across the newly-launched ads for Lakme Orchids range?

•Salesgirl •Colorful displays •Beautifully done shelves

•Other purchasers

5

15

10

0

Inferences:

•Arrangement and decoration play a cog in wheel role to attract customer

•Less likely customer care about launching of new products but more likely to try & use the new product


•Yes33%

•No67%


Q8. If answer to question 7 is Yes, then in what media?

Q9. What is your opinion about ads?

•Newspaper •Magazines •TV(DD) •TV(satellite)

12

6

2

10

•Very good33%

•Good60%

•Fairly Good7%Inferences:

•News paper & TV (urbane region) ads are more likely reach customer

•Mostly ads are liked because of being humorous and tickling




Citation:

Catchy Taglines always hit the mind,

But

Product /Brand may not


Q10. When you come to the cosmetics section of this store was the ad in your mind?

Q11. What did you like in Lakme Orchids range of displays?

•Very clearly

13%

•Clearly10%

•Just could recall10%

•Could recall af-ter seeing the

displays

67%

•Colour •Movement •Positioning •Try and buy concept

•Nothing in particular

52

8

15

Inferences:

•Planograms & displays act as catalyst to ossifying impact of ads seen by customers

•Major sales take place on the ground of ‘Try & Buy’ whereas positioning & display play fairly good role for customers’ decision making



Q12. What is your opinion about the try and buy concept?

Confidence in product quality Enables decision making to buy a new product

Q13. Would you have purchased Lakme Orchids range if there was no try and buy scheme?

•Yes43%

•No57%

Inferences:

• Try & Buy concept is welcomed to widen the customer base in market basically for new products



Q14. What in your opinion is the decisive factor in making the purchase?

Q15. If you have not purchased, then please give the reasons thereof

•Advertisement •Store displays •Ads and displays •Salespersons •Try and buy scheme

45

8

4

9

10 8 84


Unfortunately, out of scope of ‘Merchandising’


Parameters Score Result

1 2 3 4 5 6 7 8 9 10 100%

Overall convenience 2 6 20 2 83%

Quality of products 4 5 2 9 10 75%

Variety available 2 5 5 6 10 2 78%

Sales people 3 5 7 5 10 85%

Price 1 4 5 6 8 6 41%

Quantity 1 1 2 8 8 10 87%

Spaciousness 1 5 8 9 7 85%

Location of store 1 1 5 18 5 88%

Overall conve-nience

Quality of products

Variety available

Sales people Price Quantity Spaciousness Location of store

83%75% 78% 85%

41%

87% 85% 88%



RAMMS ‘ Financial Analysis

(Rs. Lakhs)

Year-1994 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ad Expeses 37.5 39 42.5 42.5 45 42 47.5 47.5 50 52 51 53.5

Sales 240 260 240 270 280 268 280 300 280 295 310 320

Regression AnalysisANOVA

df SS MS F Significance FRegression 1 5374.759 5374.759 34.23068 0.000161Residual 10 1570.158 157.0158Total 11 6944.917

CoefficientsStandard

Error t Stat P-value Lower 95% Upper 95%Intercept 84.63784 33.34589 2.538179 0.029455 10.33857 158.9371Ad Expeses 4.231538 0.723253 5.850699 0.000161 2.620029 5.843047

Y = 84.6 + 4.2 X (Positive correlation)

Return on Lakme Orchid Ad


36 38 40 42 44 46 48 50 52 54 560

50

100

150

200

250

300

350

Ad Expeses Line Fit Plot

Sales

Predicted Sales

Linear (Predicted Sales)

Ad Expeses

Sale

s

36 38 40 42 44 46 48 50 52 54 56

-30-20-10

01020

Ad Expeses Residual Plot

Ad Expeses

Res

idua

ls

No pattern left undefined by Regression model !Regression Model is worth!

InferenceAd Expense Sales

RAMMS ‘ Financial Analysis


Response to Case Issues With the data collected what type of analysis could be adopted to

measure the impact of ‘Lakme Orchids Campaign’?

Survey data:Based on sample data collected through survey bar chart and pie chart helped to

find correlations between effectiveness of various merchandising activities and sales

Financial data:Regression analysis portrays that increase in ad campaign fetches higher sales

revenue

What type of conclusions can be drawn from such an analysis?

Most of the buying decisions are taken on the spot majorly for FMCG products Big departmental stores offering good variety of products with attractive

showcasing under one roof increases perceived value proposition of the product Schemes such as ‘Try & Buy’ complemented with advertisement in Newspapers

& TVs play fairly good role in influencing customers’ buying decision Failure in meeting the sale of the product is mainly attributed to ‘High Prices’

that is out of scope of merchandising


Is it possible to conclude that effectiveness of merchandising is higher if coupled with Ad campaign?

Survey questionnaireQ10. When you come to the cosmetics section of this store was the ad in your

mind?

Response to Case Issues

•Very clearl

y13%

•Clearly10%

•Just could recall10%

•Could re-call after see-ing the dis-play

s67%

Inferences:

• Planograms & displays act as catalyst to ossifying impact of ads seen by customers

• Display of the products in store should be in line with the ads to fetch more sales


What are the possible limitations?

Limitation of data analysis:

1) Limited & Biased sample-Sample data are highly biased as these are collected from limited & niche segment of

customers i.e. Students of IISc and social media that may have common cultural and generation effects

2) Spurious correlation-Regression analysis is done along a considerable period of time; that shows positive correlation

between Sales & Ad but this may have spurious correlation with time as latent variable

Limitation of Merchandising:

1) Limited Scope-It has limited scope up to product display & delivery; doesn’t touch ‘Price’ & ‘Quality’

component that is major decisive factor in buying decision2) Accountability-Increases price of product & hard to measure the ROI

Response to Case Issues


RAMMS at Present Part of the prestigious EBELTOFT group, an international consortium of retail

consultants from 14 countries across the globe

RAMMS is India's only premier retail consultancy firmVideo: Global Retail Innovation Trends - NRF Big Show 2014 session by Ebeltoft Group.mp4


Websites www.indianretailer.com www.ramms.co.in www.maa.co.in www2.ebeltoftgroup.com www.google.co.in www.wikipedia.com

Books Case Studies in Marketing By Prof. R. Srinivasan Marketing Management By Philip Kotler

Tools used Microsoft Encarta (Encyclopedia for offline references) Microsoft Excel (for data analysis & graphs)

References

http://populationcommission.nic.in/







Thank you!

He said it….

“Advertising moves people toward goods; merchandising moves goods toward people.” (Morris Hite)

marketing ramms

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