World of Titan

Abstract

This study focuses on analyzing retail stores of Titan present across India. The objective is to classify the 200 stores of South India for ease of merchandizing. This report starts with the secondary analysis and followed by descriptive statistics. Insights related to sales across the stores are driven on the analysis from monthly, quarterly and yearly sales data. The stores are spread across Tier -1, Tier – 2 and Tier – 3 cities at 42%, 34% and 24% respectively. Clustering technique is used to group stores under various clusters. Sales data is taken and analyzed for each month and across four quarters. Through hierarchical clustering, 4 clusters are identified to be optimum. Using non-hierarchical technique the stores are classified into these 4 clusters. These 4 clusters are classified as Elite, High-end, Medium-range and low-end stores based on the sales across different brand. Many a times, stores that are classified under one cluster during one period switch to other clusters in upcoming period. Suitable algorithm is used to normalize such variations and recommendations are proposed accordingly. The ‘THSR’ store in Hosur, a Tier-3 city which has registered the highest gross sales is classified under ’Elite’. Among High-end stores category, Tier-1 cities dominate with 7 stores from Bangalore and 3 stores from Chennai. One more interesting observation from this high-end store category is that no store from Hyderabad, a Tier-1 city is classified under this category. Also medium-range stores is dominated by Tier-1 cities with more than 60% of stores from 3 cities. The 4th cluster is the ‘low-end’ store which is equally distributed across all cities and towns. Since people’s purchasing behavior is changing, the revenue is expected to increase in the upcoming period. Also the stores have to be exactly in the catchment areas where it will yield maximum revenue as few ‘low-end’ stores are from Tier-1 cities too. This cluster has many stores from towns which have been opened in the last few months which is clearly a differentiator in sales revenue. Thus the report elaborates the categorization of each cluster and the factors associated with the formation of clusters.