In near future we see e-commerce taking over the retail industry, and thus the need of the hour is to
redesign the customer’s shopping experience in retail outlets by making shopping as comfortable and
automated as possible. Today, customers prefer online shopping due to lot of time saving, lack of
queues and availability of products. Comfort in shopping is a major issue for driving customers away
from retail store to e- commerce. It is expected that India’s e-commerce market will grow from US$ 2.9
billion in 2013 to over US$ 100 billion by 2020.” To enhance customer experience while shopping in
retail store, we have launched “Smart Shop Cart”. Our Company vision and message is “Improving
people’s life with meaningful innovation”.
Industry Analysis
Indian Retail is one of the fastest growing markets in the world due to economic growth. Retail Market
in India to reach USD 1.3 trillion by 2020 from USD 600 Billion in 2015, largely driven by retail
supermarkets. Rising number of tier-2 and tier-3 cities to enhance supermarket space in the country
Supermarkets to total 8,500 by 2016 from 500 in 2006. Modern Trade to grow twice as fast as
Traditional Trade. Modern Trade expected to grow 3 times to $180 billion by 2020 from $60 billion in
2015. Modern Trade projected to grow at almost twice the traditional trade i.e. at 21% . The Modern
Trade includes Super Markets and Hypermarkets which make extensive use of Shopping Carts.
SUPERMARKET
STO R ES I N I N D I A S U P E R M A R K E T STO R E S I N
(NOS.) INDIA (NOS.)
5000 5000
500 500
0 0
FY06 FY2016E FY06 FY2016E
Need Gap Analysis
Customers in supermarkets are faced with lots of problems. On the basis of primary research of around
30 customers we have concluded the following problems faced by them.
1. The most irritating thing while shopping for groceries at super markets is that they are never
able to find the products they want easily.
2. They are always doing mental calculations while shopping because they are not aware of the
total bill until they reach the billing counter. This makes shopping at supermarkets a very
annoying experience for them.
3. It consumes a lot of time. Especially the waiting time at the billing queue. They would rather shift
to online grocery shopping
The Need
As online shopping continues to grow at the expense of store visits, the distinguishing factor in the
future will be on creating unique, brand-defining store experiences that keeps customers coming back.
The Modern Customers demand improved shopping experience and yearns for better services in store.
Customer experience has evolved over time and Retail experience is the utmost need of the modern
customer. Today, Expectations from retailers go beyond just shopping of goods. Thus supermarkets
need to establish their relevance with the customer in the digital age of Online Shopping.
Product
Smart Shop Cart is a shopping cart equipped with smart touch screen panel as the user interface, RFID
readers to track the total basket price, intelligent Bluetooth sensors for in-store product navigation and
QR Scanner for shopping list transfer.
On an average, human beings spend 1.4 hours a day on shopping (survey by US Bureau of Labor). 70% of
customers walk out of the line if the queue is too long according to a survey by Visa .A Smart shopping
trolley is desired by 72% of shoppers and 85% of leading retailers as per an MSI report
Product Features
1. QR Code Scanner for Shopping List
A simple mobile app where the customer makes his shopping list at home, which gets
converted into a QR code.
The Smart Shop Cart will read the QR code and the shopping list will automatically get
loaded on the smart screen touch panel.
2. Shopping Navigation Assistance
The Cart will read the items from the shopping list and navigate the customer to the
desired products through the shortest route.
Customer can add any product/item, not on the list, in between and get directions.
3. RFID reader for product billing
As soon as the customer puts a product in the cart, RFID reader detects the RFID tag and
displays the price, as well as update the bill.
The customer can know his total bill amount while he shops.
Final payment can be made through credit / debit card without queuing at the billing
counter.
4. Product Discount Notifier
All the ongoing discounts shall be displayed on the smart screen touch panel fitted over
the cart while moving across the aisles.
Based on the buying pattern, the customer shall also be prompted for combo offers.
Value Proposition
1. For Customers
Automated Billing in sync with the customer profile and Smart Shop Cart.
Navigation Assistance to find out the location of the product to buy.
Quick and efficient service
Get Sale offers when one walks near the aisles.
Know about complementary products and offers.
No waiting time for billing.
1. For Retailers
Minimal Labor force requirement
Improved Customer Service
Cost Saving
Real Time update of inventory
Ensure Product availability for sale
Send Reports to Retailers for data analysis
Better in-store experience for customer satisfaction
Intelligent segmentations of customers.
Increase Impulse Shopping sales
Targeting
Being the first-movers in the automated retailing industry through Smart Shop Cart, we can target all the
big brands running multiple stores. Post a 3 month product-use period, we shall run a customer
feedback survey in all the stores using our product to gain customer trust and market name. Gradually,
we can expand our market to medium level stores to widen the outreach.
Retail Stores
Supermarkets Hypermarkets
1.Aditya Birla Retail (additional 512 stores) 1. Pantaloon Retail is the leader in this
2.Spencers Daily (134 stores) format with 162 Big Bazaar stores
3.Reliance Fresh(700 stores) 2. HyperCITY (15 stores), Trent, Spencers,
4.REI 6Ten(350 stores) Aditya Birla Retail, and Relaince are other
5.Big Bazaar (240 stores) players
1. Retail Infrastructure: India has emerged as one of the most attractive retail destinations in the
world. The CAGR expected for retail is 13%.
2. Rural Retailing: Rural market, which constitutes nearly 70% of the total population base,
accounts for only 40% of the total consumption. This highlights the huge potential in terms of
consumption boom in the coming years.
3. Indian retail sector likely to witness a CAGR of 12-13 %, worth INR 55 trillion in 2018-19.
Revenue generated from modern retail projected to be INR 5.5 trillion by 2019.
4. Liberalization of the FDI policy in retail sector (51% FDI in multi-brand retail) should provide
impetus to the entry of international multi-brand retailers.
S.W.O.T Analysis
Strengths Weakness
• Provides best in Store Customer • Implementation Costs
Experience • Retailers are uncertain as to how Smart
• Personalized Touch shop Cart will influence buying behavior
• Ease in Shopping • Being Hi-Tech, it may be prone to bugs
• Provide insights for Data Analytics to and glitches.
retailers
• Act as a catalyst for Retail growth
Opportunity Threats
• Increasing number of Modern Retail • Customers who are not tech-friendly
Outlets. might be hesitant in using the Smart
• Large footfalls in supermarkets :More Shop Cart
than one in three (36%) of global • Privacy and Security Issues
population goes to a physical store at • Union’s action to protect worker’s
least once a week(PWC Report) employment
• Resistance to change by existing
Retailers.
Bargaining Power of Suppliers 1. Most of the components used are built in-
house.
2. Large number of suppliers for raw
material.
3. Thus, there is low Bargaining Power of
suppliers.
Marketing Plan
Philips technology is one of the world leaders in technology and innovation, production cost of Smart
Shop Carts would be significantly low. They have a Strong Distribution and Supplier Network. We have
decided to leverage Philips Technology, Manufacturing and Commercial capabilities through outsourcing
production and collaborating with Philips technology.
With rising competition from e commerce, the SMART SHOP CART is an opportunity for retail stores to
regain lost ground by introducing customer centric solutions for shopping convenience. This makes
smart cart an ideal B2B product for Philips to market.
First Mover Existing R&D Innovation and B2B Rebranding Fourth Dimension
Advantage You
Smart trolley Leverage the The smart cart Philips can add Opportunity to
hasn’t been existing R&D would serve as another digital add automation
introduced on human capital another example story about this products to the
large scale yet. within the of how Philips product as a part three main
company to make innovates to make of its B2B verticals of
the product lives simpler. rebranding business
Execution
In-House
• In house tech-expertise at Philips will help in creating the Smart
Productio Shop Cart.
n
• Leverage the Philips brand image in B2B sector and their marketing
Brand prowess to appeal to large retail chains.
Power
Sales and
• After the sale of the product, a warranty period of 1 year during
After which free servicing will be provided.
Sales
Shopping Competitions across various shopping marts across our target cities can be conducted where
customers can compete for the quickest shopping time using a Smart Shop Cart vs an Ordinary shopping
cart.
Identify Touch Awareness Ad Campaigns Launch Sales
points /Promotion
1.Trade Fairs & 1. Sponsor 1.Web Campaign 1.City launch 1.Salesmen would
Electronic Expos shopping and and competitions 2.Theme Launch go to retail
targeting the B2B lifestyle shows 2. Campaign : Experience booths supermarket and
segments 2. Brand calendars “Smart Shopper” 3. Invite all big pitch our product
2. Technology 3. Get reviews retailers like Wal- 2.Product Demos
Shows on written on Mart, Reliance etc. 3.Proactive
Televisions influencers blogs 4.Major Partner enquiry and
3.Magazines, Blogs 4. Product announcement feedback call after
and Websites Reviews on TV with a magazine or every 3 months
4.Online (Gadget shows) a TV show
Communities such 5. Seminars for
as Youtube, influences
Facebook, Twitter
Financial Analysis
Fixed Cost
There is an R&D team dedicated to develop smart trolley and an Engineering services team to work on
enhancements and improvements. Also the cost of manufacturing plant and equipment.
Variable cost
There is a Manufacturing/Production costs which is Rs. 8000 per trolley unit.(including LED screen and
programmable serial interfaces embedded in a microprocessor)
Components(LED Screen,
RFID reader, Touch panel,
Bluetooth Sensors, QR Scanners,
battery) 4000
Trolley 3000
Miscellaneous
(Transport, wages etc.) 1000
Total Variable Cost/unit 8000
Revenue Projections
80
60
40
20
0
2016 2017 2018 2019 2020
-20
Revenue(in Cr) Cost(in Cr) Profit(in Cr)
By the year 2020, the profitability is 20 % . We will Initially we target around 10 metro cities, with each
city having around 30 mega retail stores and requiring 20 smart trolleys per store