The Marketing mix of Croma analyses the 4Ps of Croma, including the Product, Price, Place, and Promotions. A subsidiary company of Tata Sons established Croma titled Infiniti Retail Limited. It is of Indian origin and is associated with the electronic retail industry. Croma is a retail chain dealing in durables and consumer electronics. The company was founded in 2006 and changed the concept of a retail market in India. It faces competition from several rival companies and some of them are as follows-
- Next Retail India
- Reliance Digital
- Vijay Sales
About Croma
- Type: Consumer electronics retailer
- Industry: Retail
- Founded: 2006
- Founders: Rakesh Jhunjhunwala and Ajit Joshi
- Headquarters: Mumbai, India
- Area served: India
- Current CEO: Avijit Mitra
- Number of employees: Over 10,000
- Major products: Consumer electronics, including televisions, refrigerators, washing machines, air conditioners, smartphones, laptops, and tablets.
Table of Contents
Croma Product Strategy
Croma, a retail chain of the Tata Group, specializes in consumer electronics, new products, and accessories.
The new Product Mix of Croma in 2023 is as follows (Source).
- Communication: This includes mobile phones, cordless phones, power banks, accessories, and memory cards.
- Computing: They offer laptops, tablets, personal computers, speakers, network components, storage, software, printers, and various computer accessories.
- Entertainment: This category comprises televisions, home theatre systems, audio systems, headphones, earphones, game consoles, DVD players, and accessories.
- Home Appliances: Croma has a variety of home appliances, such as washing machines, air purifiers, water purifiers, dishwashers, vacuum cleaners, and garment care products.
- Photography: The range includes cameras, lenses, digital photo frames, memory cards, accessories, binoculars, and educational kits.
- Kitchen Appliances: They offer food processors, microwaves, ovens, stoves, cooktops, coffee makers, toasters, sandwich makers, steamers, cookers, and cleaners.
- Comfort: This includes air conditioners, refrigerators, fans, lighting products, electrical appliances, irons, geysers, room heaters, and coolers.
- Grooming and Wellness: The products range from hair care and grooming products for both men and women to fitness equipment, lifestyle products, and massagers.
Croma’s online website also regularly offers deals on various products like refrigerators, washing machines, water geysers, mobile phones, printers, and televisions. These deals include product discounts from brands such as Apple, Samsung, HP, and Vivo.
Croma’s distribution and marketing strategy includes over a hundred stores across various Indian cities and an online platform. They emphasize customer service, offer in-store and online shopping experiences, and provide after-sales support through Croma Care Centers.
Croma Place Strategy
Croma brand has become a trendy brand name and has successfully expanded its retail chain to include Croma Kiosks, Croma Zip Stores, and an online store. Croma stores are efficiently run by its owner, Infiniti Retail, through its headquarters base in Mumbai, India. The brand has ventured into the consumer market through its network, spread over twenty-five cities and one retail outlet. In Maharashtra, one can find a Croma outlet in towns like Aurangabad, Kolhapur, Nasik, Pune, and Mumbai, and in Gujarat, these are located in Vadodara, Surat, Rajkot, and Ahmedabad. Some other important cities to have Croma outlets are Hyderabad in Telangana, Chennai in Tamil Nadu, Chandigarh, Amritsar, Bangalore, Delhi, and Mysore. The online store of this brand occupies 11% of the e-commerce Indian industry.
Here’s the place strategy of Croma.
Croma’s distribution channel includes direct selling, and it has well-trained and knowledgeable staff to offer personalized and sound advice to all its customers. Online Croma store outlets have proved to be a boon for customers as they can go through every desired item and choose without traveling to a store.
- Wide Retail Presence: Croma has expanded its retail chain significantly, including Croma Kiosks, Croma Zip Stores, and an online store, covering over 100 locations across 25 cities in India. This broad presence makes it accessible to a large customer base.
- Strategic Location in Major Cities: Croma stores are strategically located in major Indian cities like Mumbai, Delhi, Bangalore, Chennai, and Hyderabad, ensuring visibility and accessibility in key urban markets.
- Presence in Convenient Locations: The stores are often found in popular shopping malls and prime locations within cities, making them convenient for customers to visit while engaged in other shopping or leisure activities.
- Online Store for Wider Reach: Croma’s online store complements its physical presence, allowing customers to browse and purchase products from the comfort of their homes. This online platform accounts for a significant portion of their sales.
- Targeted Store Formats: Croma has diversified its store formats to cater to customer needs. Croma Zip stores in airports target travelers, and larger flagship stores in malls offer a wide range of products.
Croma Pricing Strategy
Croma store outlets have been endearing to provide a wide merchandise range that will meet every individual’s personal requirements and budget. The company has kept its pricing policy reasonable so that it will be able to penetrate consumer markets and create a loyal base of its own. It periodically provides discounts and incentives and several attractive offers on bulk buying as these increase sales. Croma has put its onus on larger sales volume as it realizes it will create more significant revenues. Discount pricing policy and its penetration pricing policy have helped the brand become one of India’s most sought-after retail stores.
Croma’s pricing strategy is critical to its market positioning, customer services, and competitive edge in the consumer electronics and retail sectors. Here’s a breakdown of the strategy:
- Competitive Pricing: Croma follows a competitive pricing strategy, ensuring its prices align with or slightly better than its competitors. This approach helps attract price-sensitive customers while maintaining a perception of value.
- Promotional and Discount Pricing: The brand regularly employs promotional pricing strategies, offering discounts and deals, especially during festive seasons and special sale events. This approach not only drives footfall but also boosts sales volume.
- Price Penetration: Initially, Croma adopted a penetration pricing strategy to establish itself in the market. Offering products at lower prices attracted a large customer base and built brand loyalty.
- Value-based Pricing: Croma’s association with the Tata group adds to its brand value, enabling it to adopt a value-based pricing strategy for certain premium products. This approach relies on the customer’s perceived value of the brand and its products.
- Bulk Purchase Discounts: The company provides attractive discounts for bulk purchases, catering to individual bulk buyers and corporate clients. This strategy not only increases sales volumes but also fosters long-term customer relationships.
Croma Promotion Strategy
The company has been determined to make Croma a brand name associated with trust and reliability. To do so, it has undertaken several schemes that would benefit its customers. It has opened a call center that provides information and helps customers 24*7. Croma has been making conscious efforts to provide a hassle-free and easy shopping experience, and for this, they have appointed trained employees who offer every kind of help. It has received the Most Admired Retailer trophy from the Indian Retail Forum for six consecutive years. 2014, the December Online Shopping Festival was organized, and Croma participated in its promotional activity.
Discounts and incentives were offered to customers by its website to create brand awareness. Croma is a one-stop store that offers numerous unique and essential products, and its commercials and advertisements give all its brands free publicity. It is a win-win situation for Croma and other brands.
Some Recent Video ads and Print ads for Croma are:
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