Business, Marketing, Strategy

The ABCD of Tata Croma’s newly-wed offer

I recently went to a Tata Croma showroom in Mumbai and found a few package deals that are on offer. The ones that stood out for me were those that were aimed at the newly-weds. TataCroma-newlywedsThough the name suggests an offering for people who have just been married, it covers mostly everyone who is setting up a new home. These might be newly formed nuclear families that are moving out of their joint family existence (may be to a new city) or a couple of bachelors that would be now be sharing an apartment or anyone who is leasing/buying a new house and does not have the essential electronic items every house requires.

There are three package deals, the names of which according to me should be – Basic (Rs 25,000/-), Essentials (Rs 50,000/-) and Esteem (Rs 1,00,000/-). The price one saves in the Esteem package is ~Rs 23,000/- .

The appeal of the offer is 4-fold.

Affordability: At Rs 25,000/- if one is able to get a television, a refrigerator, a washing machine and a few more items, it can be considered a bargain. One would save at least 10-15%% in the package deal as compared to buying individual items. Croma is sometimes considered to be more expensive for individual items than some local electronic item outlets. Even taking that premium into consideration, the saving is around 5-10%. In the Basic and Essentials categories, there are mostly items that are required in homes and not things that would be forced on to a customer because it is a package deal.

Brand: The products in the offering belong to brands that are well recognized in the respective categories and are the latest offerings from that particular brand. Some of the items belong to Croma’s private labels. There are no options provided to choose from different brands for various items. So, the customer would have to compromise on that aspect, but the offering ensures that it is not something they would not be able to live with.

Convenience: Moving in itself can be a big hassle. Finding a place to live, especially in cities like Mumbai, is a big project in itself and once a place is found, one does not want to be bothered too much about furnishing the place. What better than having a one-stop shop for all your electronics’ needs? And to add to it, a packaged offering just to suit your purpose. This added convenience aspect is an important part of the offer.

Durability: With electronic items, one is very much concerned about the time period for which it is ensured to be in a good condition. Consumer think of these as products which would stay with them for anywhere between 3-7 years or even more. All products come with warranty (of different time periods) and Croma store can be contacted in case of any product failures.

With the ABCD taken care of, the customer need not think too much (subject to money availability). Tatas are now looking at your whole living experience in an affordable manner – from affordable housing to affordable transportation (Tata Nano) to affordable electronics. What next?

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5 thoughts on “The ABCD of Tata Croma’s newly-wed offer

  1. Umesh Dhingra says:

    I only hope that the items covered under the diff schemes are not the ones where in the old models are being spaced out and therefore some quantity discount.
    Infact here in delhi I have seen quite a few offers from similar electronics mall stores wherein NOT the latest models of LCD tv were being sold under certain schemes.

  2. kaushik says:

    Croma now in Kolkata too – http://www.telegraphindia.com/1090903/jsp/business/story_11444980.jsp

    Croma stores have two formats — the megastores spread over an area of up to 20,000 square feet and a smaller version — called Croma Zip stores — that focuses on digital categories such as television sets, computers and mobiles.

    Croma launched operations in October 2006 and expects to touch a turnover of Rs 1,000 crore by the end of the current fiscal. In 2008, the chain posted a turnover of Rs 657 crore. It hopes to have 52 stores by March 31, 2010, from 31 now. Infiniti envisages Croma to become a 100-store chain with a turnover of Rs 3,000 crore by 2012.

    Besides focusing on the topline, the retailer also expects to be profitable shortly. “We expect to break even in the next fiscal,” said Infiniti Retail chairman R.K. Krishna Kumar.

    Croma’s range of private label products which may be cheaper by 10 to 15 per cent in certain categories compared with Korean brands include products such as wine coolers, split air conditioners, blenders, kettles, laptops and vacuum cleaners.

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