ACTIVITY BASED REPORT

On

“PROTOTYPE DESIGNING”

Title:-“ Improving the In-Store Shopping Experience with a

Smart Shopping Assistant”

Report to be Submitted for fulfillment of the requirement for the subject of

Design Thinking (K24MB16)

MASTER OF BUSINESS ADMINISTRATION-I SEM

Under the Supervision of Submitted by

Dr. Suman Rani Team- 11A
Assistant Professor
KIET School of Management
KIET Group of Institutions, Ghaziabad.

Year 2024-25
KIET Group of Institutions, Delhi-NCR, Ghaziabad
KIET School of Management
th
13 KM stone, Ghaziabad- Meerut Road, Ghaziabad-201206(U.P)
 TEAM DETAILS
TEAM NO.- 11A

SI. NO. NAME OF THE STUDENT UNIVERSITY ROLL

NO.

1. Chitra Sharma 202410115100060

2. Deepanshu Nagar 202410115100061

3. Deepanshu Royal 202410115100062

4. Deepanshu Tyagi 202410115100063

5. Dhruval Barolia 202410115100064

 TABLE OF CONTENTS

SI. NO. PARTICULARS PAGE NO.

1. INTRODUCTION OF THE 1-2

TOPIC

2. PROBLEM STATEMENT 3

3. THE SOLUTION: SMART 4

SHOPPING ASSISTANT APP

4. HOW IT WORKS 5

5. BENEFITS TO SHOPPERS 6

6. BENEFITS TO RETAILERS 6-7

7. BUSINESS MODEL 7

8. COMPETITIVE ADVANTAGE 7-8

9. CONCLUSION 8

10. REFERENCES 9
1. INTRODUCTION

The retail industry is undergoing a significant transformation due to the rapid growth of
online shopping platforms such as Amazon and Flipkart. While these platforms offer a
convenient and personalized shopping experience from the comfort of home, they lack the
tangible, sensory experience that physical stores provide. However, many physical stores
still struggle with outdated technology, inefficient customer engagement, and lack of
personalization, which has led to a decline in foot traffic and consumer loyalty. This report
proposes a solution—a Smart Shopping Assistant App—designed to bridge the gap
between traditional brick-and-mortar stores and the digital capabilities of online shopping
platforms.

By integrating in-store beacons, real-time data analytics, and AI-driven product

recommendations, the Smart Shopping Assistant app will create a more personalized,
efficient, and enjoyable shopping experience for consumers while providing retailers with
valuable insights into customer behavior. Many shoppers today face common challenges
when shopping in physical stores:

 Lack of personalization: Retailers often fail to offer tailored promotions or product

recommendations based on the shopper’s individual preferences or past behavior.
 Inefficient store layouts: Navigating large, crowded stores can be time-consuming
and frustrating, particularly when it’s hard to find products or understand where
they are located in the store.
 Real-time inventory issues: It can be disappointing to find that the item you were
looking for is out of stock, especially after spending time searching for it.
 Long checkout lines: Time-consuming checkouts diminish the overall shopping
experience, making consumers turn to the convenience of online shopping instead.

As a result, traditional retail stores are under pressure to modernize and enhance the
customer experience to compete with e-commerce giants. The opportunity lies in
leveraging technology to improve the in-store experience, making it more convenient,
personalized, and engaging for shoppers.

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This is where the Smart Shopping Assistant app comes into play. The proposed solution
aims to integrate digital tools into the in-store shopping experience, enhancing it by
offering personalized promotions, real-time inventory updates, location-based guidance,
and AI-driven product recommendations. By using store beacons, artificial intelligence
(AI), and seamless payment systems, this app could effectively bridge the gap between the
convenience of online shopping and the sensory experience of shopping in a physical
store.

The goal of the proposed system is to transform the traditional retail environment into a
smart, interactive space, enabling retailers to deliver a modern, personalized shopping
experience that can compete with the digital-first experiences that consumers have come
to expect.

In this report, we explore the challenges facing traditional retailers, the potential of digital
technologies to enhance in-store shopping, and the business model behind the Smart
Shopping Assistant App, which aims to offer a seamless, personalized, and efficient
shopping experience that benefits both consumers and retailers.

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2. PROBLEM STATEMENT

Despite the rise of online platforms like Amazon and Flipkart, many shoppers continue to
prefer in-store shopping for reasons such as:

 Tactile experience: The ability to physically touch and feel products.

 Instant gratification: Immediate access to products without waiting for delivery.
 Social interaction: The enjoyment of browsing and shopping with friends or
family.

However, traditional brick-and-mortar stores face several significant challenges:

 Lack of personalization: One of the biggest issues with the in-store shopping
experience is the lack of personalization. In online shopping, platforms use
sophisticated algorithms to track user behavior, offer tailored product
recommendations, and send personalized promotions based on past purchases and
browsing patterns.
 Crowded and inefficient layouts Another challenge in physical retail is the store
layout. Many stores, especially large ones, can become disorganized or
overcrowded, making it difficult for customers to navigate and find the products
they are looking for. In the absence of real-time guidance, shoppers may end up
spending significant time walking through aisles or searching for specific items,
only to find that the product is out of stock or located in a different section of the
store.
 Inventory management issues: Real-time inventory updates are often lacking in
physical stores, which means that customers are not always informed about
product availability until they visit the store, leading to dissatisfaction and wasted
time.
 Competitive pressures from e-commerce: Retailers find it increasingly difficult
to compete with online platforms that offer convenience and personalized
experiences.

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3. THE SOLUTION: SMART SHOPPING ASSISTANT APP

The Smart Shopping Assistant App offers a solution to the challenges faced by both
shoppers and retailers by combining the strengths of physical retail with the benefits of
digital innovation. By utilizing store beacons, AI-powered personalization, and real-
time data integration, the app enhances the in-store shopping journey, creating a seamless
and engaging experience for shoppers.

Key Features of the Smart Shopping Assistant App:

 Personalized Promotions: The app uses customer data to send tailored

promotions and discounts based on the shopper's preferences, past purchases, and
in-store activity.
 Product Recommendations: Leveraging AI, the app offers personalized product
suggestions, helping shoppers discover products they may not have otherwise
noticed.
 Real-Time Inventory Updates: The app provides instant updates on product
availability, preventing the frustration of discovering that an item is out of stock
after spending time searching for it.
 In-Store Navigation: By utilizing location-based services through store beacons,
the app can guide shoppers to specific sections, products, or promotions within the
store.
 Seamless Checkout: Shoppers can complete their purchase quickly through
integrated mobile payment systems, reducing wait times at the checkout counter.

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4. HOW IT WORKS

The Smart Shopping Assistant app operates using a combination of location-based

services, machine learning, and cloud-based analytics to create a personalized in-store
experience for shoppers. Here's how it works:

1. Store Beacons: Small Bluetooth devices installed throughout the store detect the
shopper’s location and send relevant notifications and product recommendations
directly to the shopper’s smartphone. These beacons allow the app to provide real-
time location tracking and product suggestions based on proximity to certain store
sections or products.
2. App Integration: Shoppers download the Smart Shopping Assistant app,
customize their preferences, and enable location-based notifications. The app
tracks their in-store activity to learn their preferences over time.
3. AI-Powered Personalization: The app uses machine learning algorithms to
analyze data such as previous purchases, browsing history, and product
interactions. Based on this information, the app tailors promotions,
recommendations, and discounts to suit the individual shopper's tastes.
4. Seamless Integration with Store Systems: The app integrates with the store’s
existing point-of-sale (POS) and inventory management systems. This ensures that
customers receive real-time updates on stock levels and product availability,
helping them avoid the frustration of finding an item out of stock.
5. Mobile Checkout: The app allows shoppers to pay using mobile wallets (e.g.,
Apple Pay, Google Pay) or store-specific mobile payment systems, enabling a
frictionless checkout process.

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5. BENEFITS TO SHOPPERS

The Smart Shopping Assistant app offers a range of benefits to consumers, addressing
many of the common pain points of traditional in-store shopping:

 Personalized Experience: Shoppers receive tailored promotions, discounts, and

recommendations that match their preferences and past shopping behavior, making
each shopping trip feel unique.
 Time-Saving: The app's navigation feature helps shoppers find products quickly,
minimizing the time spent wandering through aisles or searching for items.
 Convenience: Real-time stock updates allow shoppers to easily check product
availability, avoiding the disappointment of discovering that an item is out of stock
after spending time searching for it.
 Exclusive Offers: Shoppers gain access to special in-store promotions, flash sales,
and rewards that are available only through the app.
 Instant Gratification: With the app’s mobile payment system, shoppers can avoid
long queues and complete their purchases quickly, bringing the immediacy of e-
commerce to the physical store.

6. BENEFITS TO RETAILERS

Retailers also stand to benefit from the Smart Shopping Assistant app in several ways:

 Increased Sales and Conversions: Personalized promotions and targeted

recommendations drive sales by enticing customers with offers they are more
likely to redeem.
 Enhanced Customer Loyalty: By providing a personalized, enjoyable shopping
experience, the app encourages repeat visits and greater customer loyalty.
 Valuable Customer Insights: Retailers gain valuable insights into customer
preferences, behaviors, and shopping patterns, which can be used to optimize
product offerings, store layouts, and marketing strategies.

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  Operational Efficiency: The app helps retailers manage inventory more efficiently
by providing real-time data on stock levels and customer demand. It can also help
optimize store layouts based on customer flow and preferences.
 Competitive Advantage: By offering a more engaging, personalized in-store
experience, retailers can compete with e-commerce giants and attract customers
who prefer the tactile aspects of shopping but want the convenience of digital
tools.

7. BUSINESS MODEL

The business model for the Smart Shopping Assistant app includes multiple revenue
streams to support its development and growth:

 Retailer Subscriptions: Retailers pay a subscription fee to access the app’s

advanced analytics, product recommendation engine, and promotional tools.
 Commission on Sales: The app earns a commission on sales generated through
promotions, discounts, and recommendations delivered via the app.
 Freemium Model for Shoppers: The app is free for shoppers to download and
use, with optional in-app purchases for premium features, such as advanced AI-
powered recommendations or VIP offers.
 Data Monetization: Retailers can purchase aggregated, anonymized consumer
data from the app to improve their marketing strategies and product offerings.

8. COMPETITIVE ADVANTAGE

The Smart Shopping Assistant app offers several unique advantages over both traditional
retail experiences and online platforms:

 Bridges the Gap Between Physical and Digital: Unlike Amazon and Flipkart,
which operate solely in the digital realm, this app enhances the physical shopping
experience with real-time digital tools and personalized engagement.
 Tailored Shopping Experience: While online platforms offer personalized
recommendations based on browsing history, this app provides hyper-local

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 personalization that considers both the shopper's digital preferences and in-store
activity.
 Enhancing the In-Store Experience: This solution keeps the tactile and social
aspects of in-store shopping while adding the convenience and personalization of
digital tools, something that purely online platforms cannot offer.

9. CONCLUSION

The in-store shopping experience, despite its long-standing presence in the retail industry,
is facing significant challenges in the modern retail landscape. With the rise of online
shopping platforms like Amazon and Flipkart, traditional physical stores struggle to meet
the expectations of today’s consumers. Issues such as lack of personalization, inefficient
store layouts, stock availability concerns, and long checkout lines have made the in-store
experience less appealing to shoppers.

However, there is a clear opportunity to bridge the gap between physical and digital
retail by integrating modern technology. A Smart Shopping Assistant App, which
utilizes location-based services, AI-driven recommendations, and real-time inventory
management, can transform the in-store shopping experience into something more
personalized, efficient, and engaging.

By addressing these pain points, retailers can enhance customer satisfaction, improve
operational efficiency, and regain competitiveness with online shopping platforms.
Embracing these technological solutions not only benefits customers by providing them
with a seamless, modern shopping experience, but it also enables retailers to create a more
personalized and responsive environment that drives sales and loyalty.

In conclusion, adopting such smart solutions can significantly improve the in-store
shopping experience, helping physical stores evolve in line with consumer expectations
and ensuring their continued relevance in the digital age.

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10. REFERENCES

 KPMG (2020). The Future of Retail: A Digital Revolution

 Discusses the need for physical stores to integrate digital technologies for
personalization and improved customer experience.

 https://home.kpmg/xx/en/home/insights/2020/02/future-of-retail.html

 McKinsey & Company (2021). The State of Retail 2021: Embracing the New Normal

 Highlights the shift in consumer expectations and how retailers must adopt AI and
real-time data for competitive advantage.

 https://www.mckinsey.com/industries/retail/our-insights/the-state-of-retail-2021-
embracing-the-new-normal

 PwC (2020). Consumer Intelligence Series: Retail's New Reality

 Explores the growing demand for personalized and seamless in-store shopping
experiences.

 https://www.pwc.com/gx/en/industries/consumer-markets/consumer-intelligence-
series-retail.html

 Harvard Business Review (2018). How to Create a Personalized Shopping

Experience in a Brick-and-Mortar Store

 Focuses on creating personalized shopping experiences in physical stores using

digital tools.
 https://hbr.org/2018/12/how-to-create-a-personalized-shopping-experience-in-a-
brick-and-mortar-store

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