0601045 study of stores management & analysis of customer feedback

A

PROJECT REPORT

ON

“STUDY OF STORES MANAGEMENT &“STUDY OF STORES MANAGEMENT &

ANALYSIS OF CUSTOMER FEEDBACK”ANALYSIS OF CUSTOMER FEEDBACK”

FORT. CHOITHTRAM & SONS L.L.C. U.A.E. (DUBAI)

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT

OF COURSE

MASTER IN BUSINESS ADMINISTRATION(SESSION 2006-2008)

Through

VISHWAKARMA INSTITUTE OF MANAGEMENT

UNIVERSITY OF PUNE

Submitted byRAHUL S. SONAWANE

Project Guide

PROF. SUNIL D. DOKE

A

PROJECT REPORT

ON

“Study of Stores Management & Analysis of Customer“Study of Stores Management & Analysis of Customer

Feedback”Feedback”

For

T. Choithtram & Sons L.L.C. U.A.E. (Dubai)

Submitted in the Partial Fulfillment of the Requirement

Of Course

Master in Business Administration(SESSION 2006-2008)

Through

Vshwakarma Institute of Management

University of Pune

2

Submitted byRAHUL S. SONAWANE

Project Guide

PROF. SUNIL D. DOKE

BRACT’s

Vishwakarma Institute of Management

( Approved by AICTE, New Delhi and Affiliated to University of Pune )

S. No. 3 & 4, Kondhawa Budruk, Pune-411 048. Ph.: 26932800/26932900, Fax : 26932700, Mail: [email protected], www.vim.ac.in

To Whomsoever It May Concern

This is to certify that Mr. Rahul S. Sonawane is a

bonafide student of our institute. He has successfully carried

out his summer project on title as “Study of Stores

Management & Analysis of Customer Feedback” at T.

Choithram & Sons L.L.C. Dubai (U.A.E.) This is original

study of Mr. Rahul S. Sonawane and important sources of data

used by him have been acknowledged in his report.

3

http://www.vim.ac.in/

mailto:[email protected]

The report is submitted in partial fulfilment of two years

full time course of Masters in Business Administration 2006-

2008 as per the rule.

Prof. Sunil D. Doke. Dr.Sharad L. Joshi

(Project Guide) (Director)

4

ACKNOWLEDGEMENT

The project is very much indebted towards Prof.

Yuvraj Lahoti & Mr. Kiyas Mohammad who agreed to guide

me in my endeavor to finish my project. He was in fact the force

behind me to make the project with ease. I wish to express my

5

deep sense of gratitude towards him for motivating and

supporting me.

I would also like to thank to entire TCS Team for

nice co-operation and help especially to All Stores managers of

TCS & Staff who taught me a lot about Stores management.

Whenever I went to them for help they assisted me. In short I

would like to thank entire TCS authority who gave me the

opportunity to Project with them.

And I can not forget the support from my college, my

college director Dr. Sharad L. Joshi, my faculties, my project

guide Prof. Sunil D. Doke and from pool of friends. Whenever I

needed support from them, they were ready for help.

Thanks to All

Rahul Suresh Sonawane

M.B.A.(Marketing)

6

DECLARATION

I, Rahul Suresh Sonawane, hereby declare

that the project work entitled “Stores Managemetnt & Analysis

of Customer feedback” is an authentic and original work carried

by me at T. Choithram & Sons L.L.C. Dubai (U.A.E.) under

the kind guidance of Mr. Kiyas Mohammad (Team

Manager,TCS) for partial fulfillment of 2 years full time MBA

degree course from VISHWAKARMA INSTITUTE OF

MANAGEMENT, UNIVERSITY OF PUNE, PUNE. And this

has not been submitted any where else.

Rahul Suresh Sonawane

M.B.A.(marketing)

7

Table of Contents

Chapter No. Title Page No.

1 Executive Summery 8

2Introduction 14

3Retail Trends in U.A.E. 17

4Company Profile 22

5Objectives 27

6Research Methodology 29

7 Analysis 36

8 Findings 57

9 Recommendations 60

10 Conclusion70

11 SWOT Analysis 74

12 Bibliography 77

8

13 Annexure 79

14 Terms & Abbreviations 88

15 Photos of TCS 90

EXECUTIVE

SUMMERY

9

PROJECT EXECUTIVE SUMMERY

Proposed Title of Research:-

“Study of Stores Management & Customer feedback Analysis”

at T. Choithram & Sons LLC Dubai, U.A.E. with special

emphasis on building strong Store Image”

Introduction:-

In this study I tried to learn all factors which contributes

for building Store Image, with the help of T.Choithram & Sons

LLC. A premium Retailer in UAE. Data were collected through

visiting more than 20 supermarket stores of Choithram.

The research was developed on following components as

Stores Administration, Display, Layout, Space allocation,

category management, HR policies, Inventory handling,

Promotions activities.

10

The retail food industry has been undergoing major changes as a

result adoption of proper stores management is launched by

supermarkets industry in 1993. The total stores management

involves all factors which responsible for build a stores image

like inventory management, space management, category

management, customer service and all other like this.

Retailers encounter many problems Retailers encounter

many problems as they attempt to upgrade their systems. A major

obstacle is the effort required, particularly for staff training and in

developing new procedures, as the organization prepares to

switch over to the new system. Another is the lack of awareness

of the various options available to retail organizations as they

seek to improve the efficiency and effectiveness of their

inventory management and control procedures. There is a lack of

understanding of the costs and benefits of these options, and of

what needs to be done to move to the next level of sophistication.

Objectives:-

To know Retail Trends and its implementation in

Supermarket

To study factors of stores management &

administration in

detail

To study the effectiveness of all store management

factors and

its impact on stores efficiency.

To study the pattern of stores layout and its

significance.

11

To study space allocation and its importance in

retailing.

Study Contents:-

I Studied Stores Administration, Space Allocation,

Category Management, Inventory, Promotional Activities, HR

Policies and all other factors which affects Stores Image.

Research Methodology:-

A)Primary Data Source:-

Questionnaire, Interviews

B)Secondary Data Source:-

Books, Journals etc.

And collected data is analyzed with simple statistical tools

and interpreted with graphical explorations.

Research Design:-

The stores visit carried out for collection of data. As

I have noted above, the data pertain to all factors of Stores

Management. The survey were on Interview basis with

employees of Choithram Supermarket. Observations were

recorded for said research in store.

12

Questionnaire is designed to obtain information about

Supermarket . The information collected through stores visit

assumed accurate, for analysis.

Data Analysis:-

Initially data sorted in accordance with store visit and

designed questionnaire then data was analyzed on the basis of

questionnaire feedback which includes various aspects of Stores

management and observation from stores visit.

The adoption of Stores Management by T. Choithram &

Sons Supermarket is explained in this study. Data is collected

through questionnaire distributed among selected supermarket of

T. Choithram & Sons. The research instrument was developed to

collect the data on following components to study stores

operations Information Systems, ordering receiving, Inventory

Management, Stores Administration, Space Management,

Category Management, HR policies, Customer Service, Pricing

Strategies. Findings are presented through following distinct

perspective in short.

1. LOCATION: - Stores Location affects entire

operation which often tries to meet need of customer. However

13

T.Choithram & Sons has its stores in different locations in U.A.E.

in accordance they adopted the pricing policy and product line.

2. STORES CHAIN: - T. Choithram & Sons has large

chain size in U.A.E. presently they are operating 30 stores every

store is differed by its size which affects Stores layout, Space

allocation, Product display, operations.

3. MANAGEMENT: - Management is suppose to be a life

blood of every business more the efficient management more will

be the effective results. T. Choithram & Sons followed sound

management practice. They have proper coordination between

employees, communication by top level management with its

employees.

4. SPACE ALLOCATION: - Space Management crucial

role in Stores Management. Every stores manager has taken care

of shelves management, products are properly placed full

utilization of floor space is there. Some store has specific grid

layout section boys itself decides on display of product on

shelves.

5. INVENTORY MANAGEMENT: - For Direct Stores

Delivery (DSD) product order is generated with vendor with

approval from stores manager. All DSD & Non-DSD product is

verified by visual count. In case of Non-DSD products sometimes

vendor comes to stores and supplies products. For Non-DSD

14

products T. Choithram & Sons has its own centralized warehouse

for which store Back office personal is responsible. Generally

daily consumables are order from local suppliers rest inventory

lies in warehouse.

6.INFORMATION SYSTEM: - T.Choithram & Sons has

proper MIS in their operation it has good system support by

which all Choithram super market chain is connected with central

warehouse for purchase order all check out counters are

computerized system also provides support for

accounting ,payroll etc.

7. PRICING AND PROMOTIONS: - The prices of all

product is decide by head office. Every product has price tag fix

on it with barcode strategy for pricing use in Choithram is

Psychological. prices are comparatively high in Choithram .

Another thing is prices vary by location of stores. Special

displays provided by Vendors, self-made displays, and gift

voucher such activities are undertake for promotions. Objective

behind display of product is to create demand and to build stores

image.

8. HR POLICIES: - T.Choithram & Sons adopt Training

& Development program only for its management personnel. 5

rating scale performance appraisal system is used in Choithram.

TCS provide Insurance, Med claim faciloities to its employees for

their safety.

15

9. CUSTOMER SERVICE: - According to T.Choithram

& Sons customer service plays vital role in whole stores

management. TCS offers home delivery of goods in selected

stores, consumer credit system, and acceptance of Credit cards.

TCS tries to retain its customer by way of keeping customer

feedback forms at every checkout counter. TCS provides Value,

Quality and Price to its customer.

INTRODUCTION

16

The Stores industry is changing, as like new information

technologies, new business practices and new retail strategies are

developed. The result from this the research can serve as a

baseline for future research monitoring for adoption of

innovations and assessing there impact on productivity and

profitability. Choithrams Stores appear to be a smaller but more

productive than other competitors.

The retail food industry has been undergoing major changes

as a result adoption of proper stores management is launched by

supermarkets industry in 1993. The total stores management

involves all factors which responsible for build a stores image

like inventory management, space management, category

management, customer service and all other like this.

17

Retailers encounter many problems Retailers encounter

many problems as they attempt to upgrade their systems. A major

obstacle is the effort required, particularly for staff training and in

developing new procedures, as the organization prepares to

switch over to the new system. Another is the lack of awareness

of the various options available to retail organizations as they

seek to improve the efficiency and effectiveness of their

inventory management and control procedures. There is a lack of

understanding of the costs and benefits of these options, and of

what needs to be done to move to the next level of sophistication.

The study strongly suggests that there is a need for training

retailers on inventory management issues. Further research needs

to be conducted to understand and document the practices,

problems, and needs of different segments of the retail and

wholesale sector.

Training material needs to be developed which, through case

histories of successful (and failed) implementations of inventory

management and control systems, illustrates the options available

to retailers for improving their operations. Given the size of the

retail sector in the economy (third largest sector contributing Rs.

196 billion to the national GDP and employing 3.7 million), and

the predominantly small size of retail establishments (less than

2% of the 347,000 retail establishments in urban Pakistan

employed over 4 individuals), the impact of improved inventory

management systems can be wide-ranging and significant.

The main motive of doing this research was to get the

feedback from the Stores Manager, analyzing it and finding the

18

weak areas in which Choithram is and overcome the weaknesses

to give a better Stores Management practisec to maintain the

existing customers & future prospects. This company aims to

target these customer groups & offer innovative & convenient

service that will fulfill their needs fast and efficiently.

The survey has been done of 7 Choithram Stores on

various factors such as variety, quality, service, promotions,

offers and many more. The sample size was 1 questionnaire (per

store).

This study aims at creating and analyzing Stores Image

among the all supermarkets located through out UAE. and service

offered to customers by Choithram and Sons L.L.C. Dubai

19

RETAIL TREND

IN U.A.E.

20

The Changing Face Of Retail

Liberalization of the economy in the nineties and the entry

of large players in the retail business have brought the retail

industry into spotlight. Big players and national retail chains are

changing the rules of the game, in spite of their meager share in

the overall retail trade. Organized retailing though still in an

embryonic stage has huge growth potential.

In organized retailing, the retailer is no longer just a last

mile distributor. He is an important source of information related

to customer behavior and also gives the customer a memorable

shopping experience. Experiential marketing is becoming the

paradigm of organized retailing and this has further raised the

significance of the retailer in the business value chain.

India has seen a rise in the number of malls in the last few

years. Today India has 37 malls in Mumbai, 10 in Hyderabad, 15

in Bangalore. Approximately 220 malls in the whole of India by

end 2005 is what is the estimate of various agencies involved in

assessing the future of commercial property development in

India. The real estate sector is booming thanks to the low interest

regime for home loans. The other factor that is providing a fillip

to the development of real estate is the boom in commercial

property development, especially the retail property sector.

Moreover, with the convergence of the retailing,

entertainment and the tourism industries, retail property in India

has taken to mega mall development to suit the needs of all the

three sectors in a single location. Throughout the past decade,

21

malls appeared on the retailing scene as the locus of retailing

activity in major Indian cities in the central business district,

which was populated by well-known department stores. But as

the suburban population grew, many local shopping areas in

suburbs transformed into regional shopping destinations.

In a few cities, specialized developers purchased large

blocks of the central city land and then offered it on a lease basis

to department stores and other stores at differential rents. The

displacement of the central business districts in major Indian

cities by the suburban mall phenomenon was clearly hastened by

the increase in automobile ownership, an enhanced urban road

network, and growing suburban markets. Malls represent a set of

co-located retail outlets in a large area with lots of amenities. In

the retail sector, mall development must be a planned, as this

would help in attracting the right tenant mix. A typical mall has

one or more anchor store and a diversity of smaller stores.

The development of a mall should also be planned in

anticipation of the increased footfalls. Understanding of the retail

environment becomes crucial for mall developers as well as for

the potential tenants while investing in malls.

Retail Facts of U.A.E.

'Dubai is already known as the shopping center of the Middle

East, and in years to come it will be known as the shopping mall

of the world,' said Ole Milan, Managing Director of Landsteinar

GCC - a company that specializes in providing retail software

solutions.

22

'In the future, companies specializing in everything from retail

software and mannequins to cleaning firms and interior

decorators will also benefit from the trickle-down affect.'

Additionally, new retail developments will contribute to rising

tourism numbers to the emirate, says Milan. Coinciding with the

400 percent increase in retail space in 2010, the emirate is

preparing to welcome around 15 million tourists by the end of

that year

If Dubai does manage to boast more than 20 million square

feet of shopping space by 2010 then there is no doubt that it will

be an even bigger tourist attraction than it already is.' retailers to

access and run the software from a hand held computer, allowing

employees away from their desk to be kept informed with

relevant and updated business information.

Conceptualization of Retail Middle East is a direct result

to meet the needs of the market for the entire region. It will be

the sourcing forum for retailers and franchise chains looking

acquire cutting-edge concepts and store design for both new and

old stores. This event will encompass everything from lighting,

hanging rails, POS, mannequins to shop fitting equipment and

services, visual merchandising, signage, P-O-P as well as retail

information technology – all in one convenient location to serve

as a fertile sourcing ground for retailers, while serving as a

23

platform for group showcases from the USA and other

international companies. Exhibitors would also include

woodworking machinery manufacturers and franchisors

interested in international expansion.

To cater to the fast changing needs of the retailers, Retail

Middle East is planned to become an annual event. There is no

doubt that the local retail industry needs a platform that occurs on

a frequent enough basis to keep up with the momentum of

evolving trends as well as remain connected with developments

in the industry in international markets..

Retailers and shoppers alike are yearning for new concepts

in the retail scene. To become successful in this region

watchwords to a new market entrant would be time, effort and

resources starting with a personal relationship.

US companies interested in gaining entry into this market should

contact the U.S. Commercial Service located in Dubai who have

arranged a special package for all participating companies within

the US pavilion at Retail Middle East including a discounted

price for the show floor.

Retail Middle East (RME) has the support of US

associations – Point of Purchase Advertising International

(POPAI), and the National Association of Store Fixture

Manufacturers (NASFM) as well as by EHI-EuroHandelsinstitut

(The International Retail Network) from Germany. Companies

24

from Italy, UK, Australia, Malaysia, Jordan, Lebanon etc., have

already signed on to participate at RME.

To learn about this market, contact the trade specialist

([email protected]) at the US Commercial Service in

the UAE who has the lead for this industry.

25

COMPANY

PROFILE

26

COMPANY PROFILE

Company founded in 1944 in Sierra Leone and arrived in

the United Arab Emirates in 1974.

The deep-rooted T. Choithram and Sons, focused on one

remarkable vision, the aggressive diversification and

geographical expansion, which led the company to UAE.

Within a short period, the company is acknowledge today

as the largest chain of the Supermarket group in the Emirates,

with twenty four Supermarkets and five Department Stores at

prime locations spread over the seven Emirates of the UAE.

The company has grown to become on the most popular

chain in the UAE and today represent over sixty multinational

27

companies in the Emirates, which are handled by several

specialized divisions.

With the experience of over 60 years of marketing branded

consumer products, the Company´s infraestructure, extensive

knowledge of the market and the support of dedicated

employees numbering over 1500, all come together in a very

effective marketing-mix to offer their principals the best

distribution network and support in the UAE.

The Company´s popular chain of Supermarkets &

Department Stores, conveniently located, leend important and

significant support for brands and agancy lines, through prime

products displayss, facilities for below-the-line marketing

activities, test launching of promotional offers and even to

conduct valuable consumer surveys to help formulating sound

and effective brand development strategies.

The Company´s well established Catering Division,

services, apart from the regularly awarded government

tenders, over two hundred major institutional clients:

\

– AIRLINES

– RESTAURANTS

– CLUBS

– SCHOOLS

– PETROL STATIONS

– KIOSKS AND SO ON ….

28

The novelty division handles agency lines from over

twenty-one countries, supplying to the wholesale and retail

outlets in the UAE, with new products innovations in

novelties, fashionwear, children´sgarments,toys, household

appliances, domestic products, etc.

“ With the Company´s expertise

warehouse facilities, distribution

centres and fleet of delivey vehicles,

prompt products availability is

ensured even in the remotest outlets

in the country ”

MARKET CHARACTERISTICS

DUBAI is the business hub of Middle East, is throbbing with

multidimensional activities and is undergoing thanks to the vision

and foresightedness of the country´s leadership, tremendous

growth, which is evidenced by the fact that a country until 3 years

29

ago with a population of 2,5 – 3 million in now accommodating

and catering for 5 million people.

“ It´s envisaged that the growth will rise to 10 million by

the year 2010 ”

With the increase in growth, all spheres of business are

growing proportinately. Today Dubai can boost about having

the highest number of the most modern Supermarkets and

Hypermarkets, allowing consumers most comfortable

enviroment to do their shopping, from groceries to electronics

to apparels to most of their requirements, All from under one

roof. Shopping in these malls and super markets is as much an

entertainment as a shopping exercise.

CHOITHRAM take the pride of being among such

Supermarkets with highest degree of popularity with the local

Arabs,Asians and the Western Expats offering it’s long range

of quality products at very competitive prices.

The Produce section of Choithram is one of the busiest.

Fruit sourced from any where in the world by important

importers such as Fresh Fruits, Abbar O Zainy, Sharbatly,

Iffco are always available with us.

30

In fact, we are in process of commencing our own import

program and in doing so we will be more than happy to source

Argentinian Oranges, Lemons, Pears, Apples and Stone fruit.

The Produce section of Choithram is one of the busiest.

Fruit sourced from any where in the world by important

importers such as Fresh Fruits, Abbar O Zainy, Sharbatly,

Iffco are always available with us.

In fact, They are in process of commencing our own

import program and in doing so They will be more than

happy to source Argentinian Oranges, Lemons, Pears,

Apples and Stone fruit.

31

OBJECTIVES

32

The study was designed and conducted to accomplish the

following objectives:

Broad Overview of StudyIn this project the emphasis will be on various Retailing

operations followed by Choithram Supermarkets. The topics

pertaining to our project would be as follows:

Stores Management

1. Location

2. Stores Chain

3. Management

4. Space Allocation

5. Inventory Management

6. Information System

7. HR Policies

8. Pricing and promotions

9. Customer Service

Objectives:-

33

To know Retail Trends and its implementation in

Supermarket

To study factors of stores management &

administration in

detail

To study the effectiveness of all store management

factors and

its impact on stores efficiency.

To study the pattern of stores layout and its

significance.

To study space allocation and its importance in

retailing.

34

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Meaning of research

Research in common parlance refers to a search for

knowledge. One can also define research as a scientific and

systematic search for pertinent information on a specific topic.

In fact, research is an art of scientific investigation. The

advanced learner’s dictionary of current English lays down the

35

meaning of research as “a careful investigation or inquiry

specially through search for new facts in any branch of

knowledge”.

Objective

The purpose of research is to discover answers to questions

through the application of scientific procedures. Though each

research study has its own scientific purpose, we may think of

research objectives as falling into a number of following

groups:

To gain familiarity with a phenomenon or to achieve

new insights.

To portray accurately the characteristics of a particular

individual, situation or a group.

To determine the frequency with which something

occurs or with which it is associated with something

else.

To test a hypothesis of a casual relationship between

variables.

Research methodology

36

Research methodology is a way to systematically solve a

research problem. It may be understood as a science of studying

how research is done scientifically. In it we study various steps

that are generally adopted by a researcher in studying his research

problem along with logic behind them.

Research process

Before embarking on the details of research methodology

and techniques, it seems appropriate to present a brief overview

of the research process. Research process consists of series of

actions or steps necessary to effectively carry out research and the

desired sequencing of these steps.

Formulating the research problem

Extensive literature survey

Development of working hypothesis

Preparing the research design

Determining the research design

37

Deliberate sampling

Simple random sampling

Systematic sampling

Stratified sampling

Collecting the data

By observation

Through personal interview

Through telephone interviews

By questionnaires

Execution of the project

Analysis of data

Hypothesis-testing

Generalization and interpretation

Preparation of the report

38

Types of research

Descriptive research

Analytical research

Applied research

Fundamental research

Quantitative research

Qualitative research

Conceptual research

Empirical research

The above mentioned are the various types of research

which a researcher can apply in order to achieve one’s desired

objective. Therefore to achieve the objectives of my research I

have used descriptive research.

This is based on proper research design to meet the objectives of

the study.

39

Research Methodology:-

A)Primary Data Source:-

Questionnaire, Interviews

B)Secondary Data Source:-

Books, Journals etc.

And collected data will be analyzed with simple statistical tools

and will be interpreted with graphical explorations.

Research Design:-The stores visit will be carried out for collection of

data. As I have noted above, the data will pertain to all factors of

Stores Management. The survey will be on Interview basis with

employees of Choithram Supermarket. Observations will be

recorded for said research in store.

Questionnaire is designed to obtain information about

Supermarket . The information collected through stores visit will

be assumed accurate, for analysis.

Data Analysis:-Initially data will be sorted in accordance with store

visit and designed questionnaire then data will be analyzed on the

basis of questionnaire feedback which includes various aspects of

Stores management and observation from stores visit.

DATA COLLECTION

40

The project was to check feasibility of the services offered

by Choithram using primary data. The primary data was obtained

through observation, direct communication with the people and

filling up of questionnaires, also enormous help was obtained

from Choithram, branch members, crew, staff and colleagues

working there.

The data collection tool that I have used is Questionnaire. I

have selected questionnaire as a data collection tool primarily

because of descriptive nature of sampling & secondly it was the

most suitable tool that could help in achieving all the objectives

of the study & to do the analysis deeply and effectively.

41

ANALYSIS

Stores Management Based Analysis

42

Average Daily Sales

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Location of Stores

Sal

es in

AE

D

Al Karama Al Jumeirah Greens

Greens Community Al Rais Al Safa Park

Bich Road

This is all about the average company sales according to its

locations from above interpretation we come to know that highest

sales is of jumeirah area as its located in some remote area and

don’t have any option for consumers residing near to this area as

TCS providing the best services.

43

Services

Offer

Al

Karama

Al

Jumeirah Greens

Greens

Community

Al

Rais

Al

Safa

Park

Bich

Road

. ATM NO YES NO NO NO NO YES

. Bakery NO YES YES YES YES YES YES

. Bank debit

card payments YES YES YES YES YES YES YES

. Credit Card

payments YES YES YES YES YES YES YES

. Branded

Fast-food NO YES YES YES NO YES YES

. Event

Tickets YES YES YES YES YES YES YES

Services offered by Stores

44

% DSD Prducts Vs % Non-DSD Products

DSD Products, 60

Non-DSD Products, 40

DSD Products Non-DSD Products

DSD refers to Direct Stores Delivery Products and Non-

DSD refers to Non-Direct Stores Delivery Products as these

are only two types which TCS avails in its store we come to

know DSD forms major portion as its have direct contact

with suppliers who used to deliver product which are not in

stock products are generally delivered on daily basis

especially products like Dairy which are perishable in its

nature and forms the major proportion in stores products.

45

Layout Used by TCS

Grid, 56.30%Pigly Wigly,

32.60%

Free Flow, 10.10%

Grid Pigly Wigly Free Flow

Scientifically stores have various types of Layout which

ultimately influence cost and space allocation for the stores

accordingly TCS implemented the Stores Layout in its stores.

46

Decision on Product Pricing

Head Quarters

Stores Manager

Head Quarters Stores Manager

Its said that in TCS the pricing strategies related to products

are decided by headquarters in some exception management

gave right on decide on price of products which is shown

from above diagram.

47

Types of Promotions at TCS

Special displays provided by vendors Self-made Displays

In Stores Coupons News Paper ads

Others

In marketing we learn various channels of promotions but

what I observed in TCS is different the more emphasis is

given for self-made displays which results in less cost on

promotional activities.

48

How promotiom conducted at various stores

44

26 25

32

38

262325

3129

38

2724

19

2 49

1 26

1

24

18

29 2823

32

26

05

101520253035404550

Location of Stores

Wei

ghta

ge

Self-made Displays In Stores Coupons News Paper ads Others

This is how promotional activities are conducted at TCS

which obviously depends on location types of customer

having particular stores and products to be available at each

store.

49

Objective behind Special Displays

Stores ImageCreating Demand

Stores Image Creating Demand

Expert says that they made special displays in stores because

of building stores image and to create demand for product as

its plays very vital role in whole stores management

according to experts both have equal importance and it

should be.

50

Decisoin on Product Shelve Allocation

Head Quarters

Stores Manager

Shelve Boy

Head Quarters Stores Manager Shelve Boy

Most of the time the product placement ion shelves is decide

by shelve boys itself as they know products section as they

everyday used to do there duty besides this special products

placement decide by either stores manager or by approval of

headquarters.

51

How Products Verified on Delivery

75

65

80

6570

85

75

2025

15

2520

1015

510

510 10

510

0

10

20

30

40

50

60

70

80

90

Al Karama Al Jumeirah Greens GreensCommunity

Al Rais Al Safa Park Bich Road

Location

Perc

enta

ge

Visual Count Sample Count Other

Every firm has its own methodology of verification of

product quality, quantity TCS follows most of the times

visual count method as this method finds TCS convenient to

them though it consumes cost and time.

52

How Supplier Paid

7075

8085

70

85

75

2520

1510

20

1015

5 5 5 510

510

0

10

20

30

40

50

60

70

80

90



Location

perc

entag

e

Cheque Cash EFT

53

Customer Feedback Analysis

How Often Do You Shop at TCS

43

5448

59

3834

39

2723

32

20 22 25

151813 12

7

15 16109

5 37

129

63 5 5 713

710

0

10

20

30

40

50

60

70

Location

Ou

t o

f 10

0

Weelky Forthnightly Monthly Qurtely Daily

As compared all the TCS Greens Community has the highest no. Of

customers who shop weekly and Safa Park location has the lowest

54

Quality of Product

5661

6560

6358 59

32 31 3237

3035

39

107

3 3 5 722 1 0 0 2 0 0

0

10

20

30

40

50

60

70



Locations

Out o

f 100

Excellent Good Average Poor

On an average in every store the quality of the products was

good. 65% of the customers in Greens said that they find the quality of

the products excellent

55

Difficulty Across Purchasing The Products

22 1912

8

25

17 16

78 8188

92

75

83 84

0

10

20

30

40

50

60

70

80

90

100


Al Rais Al SafaPark

Bich Road

Locations

Out

of 1

00

Yes No

On an average in every store the customers did not came any

difficulty while purchasing or billing time. But in Al Rais there were

25% customers who said that they came across difficulty.

56

Do you wish any products to be added in store

4249

36

2225

29

20

58

51

64

7875

71

80

0

10

20

30

40

50

60

70

80

90



Location

Out o

f 100

Yes No

On an average in every store the customers did not want any

products to be added but in Al Karama there were 42% customers who

said that they need some products to be added in the store.

57

Was The Stores Clean

86

99 100 100

85

98 99

14

1 0 0

15

2 10

20

40

60

80

100

120


Al Rais Al SafaPark

Bich Road

Location

Out o

f 100

Yes No

As compared all the stores every customer said that the store

was clean. But in Al Rais 15% customers said that the store was not

clean.

58

Was the parking space provided to you appropriate

56

38

88 85

35

98

69

44

62

12 15

65

2

31

0

20

40

60

80

100

120


Al Rais Al SafaPark

Bich Road

Location

Out o

f 100

Yes No

As compared the entire stores, in Al Rais there were 65%

customers who said that they did not faced any parking problems. But

in Safa Park there were 98% people who said that there were parking

problems

59

How was the overall appearance of the Staff

26

32

4944

36

5045

52

60

45

39

30

3640

20

7 6

13

29

13 11

2 1 04 5

14

0

10

20

30

40

50

60

70



Location

Out

of 1

00

Exellent Good Average Poor

As compared all the stores, the overall appearance of the crew

members like (hair, dressing, body language, communication skill)

was good.

60

Were the Signages are appropriate?

7685 82

95

8488

96

14 15 18

5

1612

4

0

20

40

60

80

100

120


Al Rais Al SafaPark

Bich Road

Location

Out

of 1

00

Yes No

As compared all the stores, the Signage’s which were put on for

the guidance of the customers were appropriate and informative.

61

How was the visibility and shelf space arrangement of the store?

4447

42 4036

39

55

3936

4035

4247

40

15 17 16

22 22

13

52 0 2 3

0 1 00

10

20

30

40

50

60



Location

Out

of 1

00

Exellent Good Average Poor

In every store the visibility and shelf space arrangement was

good.

62

FINDINGS

63

Findings

From the analysis of the data I collected during the study I

present following

Findings:

Awareness level about TCS among the existing customers

is high but the conversion rate is low.

Customers think that the variety and the quality of products

in the store were not good.

At TCS Jumeirah 2.1 the customers faced parking

problems.

The offers given to the customers are repeated every time.

Minimum percent of customers came to know about the

offers through Tele-calling.

Most of the customers have come to know about the offers

through News papers and Flyers but less amount of

customers have came to know through Tele-calling.

Satisfaction level of existing customers is satisfactory,

however for the future prospects more changes and efforts

have to be taken.

64

There is a huge potential of TCS as they have the maximum

branches in U.A.E. as compared with others.

The supply chain management is Satisfactory, which results

in products are in stock.

Most of the customers said that they wanted to add

vegetables & fruits counter in the store.

TCS presently having some of the promotional activities

but its not that much effective.

TCS having good personnel still they can improve on it as

they providing the T&D only to top level employees if we

look from closer its very essential thing that to give boost to

its bottom level employees also.

Motivational factor is totally absent in TCS

In some of the TCS stores it is observed that products are

not properly placed on the shelve.

Sanitation facility to customers and staff is seems to be

very poor.

TCS lacking its communication with its existing suppliers.

TCS is among old supermarket chain in U.A.E. thus some

of its stores seems to be very shabby

65

RECOMMENDATIONS

66

RECOMMENDATIONS BASED ON LOCATION OF

STORES

AL KARAMA

Targeted Segment:- Middle Class & Some Higher

Middle class customer tend to be have shop in this stores

this stores needs marketing strategy in respect of pricing

strategy which must have reasonable.

67

Product Mix:- Availability of product range in this

stores must have in sufficient quantity by which customers

gets satisfied.

Price Mix:-Psychological pricing strategy must be

implement specially in this stores as purchasing power of

customer are less comparatively.

Promotion Mix:- a promotional activities which observed

in stores is satisfactory.

Utilities:- stores having large customers from Philippine

region accordingly they must provided with the food of

there culture by which they are able to maintain its

customers.

JUMEIRAH

Targeted Segment: - Higher Middle class & High Profile

foreign customers whose income is tend to be generally

high. This segment needs pampering as a strategic

approach. So they need spacious parking lot, food facility,

recreational facilities, children’s amusement and day care

crèche facility.

68

Product Mix: - Product range in this store must be kept

and variety must be avail as per demand of customer.

Price Mix:-Premium pricing strategy must be

implementing in this stores.

Promotion:- A Sound promotional activities must be

undertake and tell calling facility must implement as a

channel of promotion to aware customers about offers n

new products.

Utilities: - This location facing the perking problem thus

management must take some action on it to have a proper

parking facility.

GREENS

69

Targeted Segment:- Stores Located in the Commercial

are basically large working professional used to shop here

in this stores in accordance with that management should

have marketing approach

Product Mix:- Its recommended in this stores that daily

general consumable product shuld be added to high extend

by which flow of working professional can be maintained.

Price Mix:- Premium pricing strategy must be implement

in this store.

Promotion Mix:- Various promotional schemes like which

encourages for impulse buying must implement as the customer

is used to buy a products what he want and doed not go for

other products thus there mus exist impulse buying.

Utilities:- Stores must provided a more enough parking lot

to those customers who generally from outside as this

costomer has to pay for parking.

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GREENS COMMUNITY

Targeted Segment:- This stores located in so far from

city as its name indicates its in a community whuch belongs

to high class people who generally does not aware about

prices but about quality of product accordingly

management have to plan its marketing strategy.

Product Mix:- a large product range must avail in this

store in addition with quality. The availability of branded

food products is satisfactory but management should add

more brands to its existing product line.

Price mix:- prices of the product observed in this stores is

comparatively high as they should be but its recommended

price of product must be quote in accordance with its

quality.

Promotion Mix:- customers in this stores don’t have any

influence of promotional activity as income is high what

they need is satisfaction through product the here

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management have the chances to have savings on its

promotional cost.

Utilities:- This stores needs pampering is marketing

strategy so they need spacious parking lot, food facility,

recreational facilities children’s entertainment.

AL RAIS

Targeted Segment:- Known as main branch as head

office also located in this stores. The main thing is thus

stores located in the heart of the city. Customer from lower

and middele income group used to shop in this stores.

Product Mix:- product range what found in this stores

was satisfactory no need to change its existing product line

and range at this branch has got good Indian food section

which is attracts more Indians towards stores.

Price Mix:- Prices of product found in this stores was not

that much affordable to a typical customer who used to

buys from this store so company management need to thing

72

on the pricing strategy and must improve the existing

pricing structure of the product.

Promotion Mix:- Various promotional schemes like which

encourages for impulse buying must implement as the customer

is used to buy a products what he want and doed not go for

other products thus there mus exist impulse buying.

Utilities:- No question of utilities to be provided arise here

as the stores itself located in a center market place. The

important thing about this stores is it opens 24hrs.

AL SAFA PARK

Targeted Segment:- Stores located in area like Sheikh

Zayad road which suppose to be rich location thus stores

having high profile customer base.intersting thing about

this stores is that next to this stores the union arab govt.

own stores is located though company management said

that they don’t have any influence on its customer because

customer targeted for this stores is foreign customer who is

from Europe.

73

Product Mix:- Stores is though very much aware about of

its product range then also management needs to revise its

product line in bakery products and cosmetics products.

Price Mix:- Customers thinks about quality of product and

not considers the price thus management must have

premium pricing policy.





promotional cost.



recreational facilities children’s entertainment.

BEECH ROAD

Targeted Segment:- This stores located in so far from

city as its name indicates its in a community whuch belongs

to high class people who generally does not aware about

74

prices but about quality of product accordingly

management have to plan its marketing strategy.

Product Mix:- a large product range must avail in this

store in addition with quality. The availability of branded

food products is satisfactory but management should add

more brands to its existing product line.

Price mix:- prices of the product observed in this stores is

comparatively high as they should be but its recommended

price of product must be quote in accordance with its

quality.





promotional cost.



recreational facilities children’s entertainment

75

Further analysis of the data I collected during the study

I present in following manner.

Recommendations:

At all the TCS the customers said that the products to be

added were vegetables & fruits.

At TCS in Some areas faced parking problems.

Customers think that the variety and the quality of products

in the store sometimes was not good.

More Promoters should be there with which the customers

will be able to know the offers.

The offers given to the customers are repeated everytime.

There should be new offers everytime.

Tele-calling should be done to the customers to inform

them about the new offers.

76

More focus should be given on the advertisements of TCS

Hoardings should be put up in the key areas of the city.

SMS should be given to the customers about the new offers.

More promotions to be made to attract new customers

In-store buzz should also be conducted at each TCS

TCS must focus on improving its present work force by

providing the proper T&D program by recognized

consultant to have a compete with its existing competitors.

For increasing employees interest toward there work its

very important to increase moral of TCS by providing

motivation to them.

In TCS there must exist a proper product placement

techniques upon the shelve by which it is beneficial to staff

as well for customers to navigate products easily

77

TCS must take immediate action on its sanitation facility to

its customers as well staff.

Renovation must take place at some of the TCS Stores

More customers should be converted into TCS Customers.

78

CONCLUSION

CONCLUSION

The core objective of TCS is to focus the middle class

people in U.A.E. as 45% of Local population is middle class. To

survive in the competitive market TCS should thing about for

taking initiative in retail Industry. Stores Management has a great

79

role to achieve the target. Through better Inventory Management

we can produce right amount of product, in right time, in right

price, according to the customer need & desire.

Today’s retail industry is booming. Due to the

availability of varied products and their multiple stock units

(SKUs), inventory management, and replenishment becomes a

complex job to perform. Different Supply-chain strategies

(pull/push) are required for different types of products. Proper use

of mathematical models, process optimization tools and industry

best practices also required for continuous improvement and

operational excellence like just-in time (JIT), Quick response

(QR), efficient customer response (ECR), and continuous

replenishment plans such as Vender management inventory

(VMI).

The major benefit in implementing these programs

include reduced inventories and stock-outs, fresher product and

80

quicker, more nimble supply chain which in turn decreases many

indirect costs such as damages, aged inventory and insolences, as

well as administration expenses.

Though TCS Retail limited has implemented advance

technology like SAP, RXL etc, lacking in well trained handling

unit spoil it. If you can’t match the physical inventory there is no

use of such type of technology. There was no optimum order

quantity set so there was problem of excess of inventory. Excess

of inventory means loss in business. The inventories were lying

here and there, not in their assigned areas. Prime cause of it was

excess of inventories and unskilled/untrained workforce. There

was no analysis like A-B-C. It is lack of professionalism indeed.

They used to place the inventories according to their merchandise

category, but it was very difficult to find out the exact location of

inventories, because there was no location identifier system there.

They didn’t use to any standard formulae to find out the exact

81

reorder point though it was based on sales. FIFO (first in first out)

was not follow properly and hence no of inventories became

obsolescence/out of demand. That was cause of loss in business.

Bin Card was not maintained properly. The maximum and

minimum levels of inventories were also not mentioned on bin

card. Working condition/environment was not so enthusiastic.

There was no proper arrangement of fooding for workforce.

There was wide scope of improvement in supplying the basic

needs like fooding, drinking water etc. to the workforce. It was

very difficult to work in hot atmosphere in warehouse. There was

no proper allocation of work within workforce. They are lacking

in proper utilization of workforce. There was no proper utilization

of non-trading item. The power/energy was also misused. That

was cause of greater inventory carrying cost. And in short I can

conclude that they were missing in keep head towards 5 R’s

(Right Source, Right Quantity, Right Quality, Right Price, and

82

Right Time) somewhere which is called very basic of inventory

management which boost all factors of stores.

SWOT

ANALYSIS

83

SWOT ANALYSIS

STRENGTH

Limited competition.

Good reputation of the company (T. Choithram & Sons.)

Quality of service.

Highly cooperative and efficient staff & crew members.

Exclusive Products.

84

Use of modern technology like credit card billing & loyalty

progrramme.

Wide range of products to suit all customer segments.

Maximum number of branches (Approx.27)

WEAKNESS

Target customer base very small.

No presence in semi urban sector.

Promotional campaigns are nearly absent.

Less advertising efforts.

At Some times products are out of stock.

Weak supply chain management.

Offers are repeated commonly.

OPPORTUNITIES

Can build a strong distribution network to trap the

untouched market.

Customer education will improve the customer base.

Increasing awareness will result in increase in customer

base.

None of the supermarkets have 27 branches in U.A.E..

85

No of competitor’s is increasing very fast, especially In

Dubai.

By making some good promotional efforts TCS can gain

more number of customers who will be loyal.

THREATS

Competition with big giants like LuLu, Spinys, Al Madina

Super market Etc.

Challenges posed by other retailers in the market.

Customer may shift to other supermarket.

Lower customer base may hinder prompt service.

86

BIBLIOGRAPHY

87

Bibliography

Research Methodology, methods and techniques by

C.R.Kothari-2nd

edition.

TCS Brochures & Flyers.

Web Search Engine

88

ANNEXURE

89

“Study of Stores Management at T. Choithram & Sons

LLC Dubai, U.A.E. with special emphasis on building

strong Store Image”

Questionnaire

CHARACTERISTICS OF TYPICAL STORES

1. Number of Corporate Stores______

2. Hours open______

3. Stores Selling area (sq.ft.)______

4. Backroom area (sq.ft)______

5. Backroom office (sq.ft.______

6. No. of Suppliers______

a) DSD______

b) Non-DSD______

7. Number of Deliveries per week

a) Distribution Warehouse _______

b) Primary Suppliers _______

8. Average weekly Sales____________

90

9. Which of the following Products/Services do you

offer in a Store?

Yes

No

a. ATM

b. Bakery

c. Bank debit card payments

d. Credit Card payments

e. Branded Fast-food

f. Event Tickets

10. In a Store What products are DSD

a. Bakery items

b. Candy

c. Canned food

d. Carbonated Soft drinks

e. Cigarettes

f. Chips and Snacks

g. Dairy

11. Does a Store have Computer Support? Yes

No

If yes, what capabilities does it provide?

Yes No

a. Accounting

91

b. Ordering

c. Payroll

d. Network

e. Other_____

12.Does Stores Scan merchandise at check outs? Yes

No

If yes, what reports do you generate from scanner

data

a. Movements of Items Yes No

b. Sales Yes No

c. Other____

SHELVE SPACE ALLOCATION

1. If you have a multiple stores, do they have a

standardized Layout?

Yes No

If yes, which

layout____________________________________

If No, What is job title of person who decides on the

Layout for a Store?

92

____________________________________________________

___

2. Do you use Planograms for Shelve space allocation?

Yes No

NON-DSD PRODUCTS

1.For Non-DSD products, who approves individual items for

sale in stores?

Headquarters Store manager

Other

2. For Non-DSD products, who decides the shelve space

allocation?


Other

3. For Non-DSD products, who decides the arrangement of

items on shelves?

93


Other

DSD PRODUCTS

1. Who generates orders for DSD products?

DSD vendor with Stores Manager Approval

DSD vendor without Stores Manager Approval

Stores Manager

Other___________

2. How are DSD orders verified for accuracy upon

delivery?

Visual Count

Sample Count

Not Verified

Other___________

3. How DSD Supplier Paid?

Cheque

Cash

EFT

Other______

PRICING AND PROMOTIONS

94

1. Who determines prices of products sold in the stores?

Headquarters

Stores Manager

Other______

2. Do you have shelves Tags for Non-DSD Products?

Yes No

If yes, who provide shelves

tags__________________________?

3. Which phrase best describes your Company?

Prices are the same in all Stores

Prices are vary in each Stores

Prices are same for Stores grouped by Size/Location

Other______________________________

4. What kind of Promotions are used in a Stores?

Special displays provided by vendors

Self-made Displays

In Stores Coupons

News Paper ads

Others

5. What is the objectives behind Display of merchandize

Creating demand Both

Other Stores image

95

T. Choithram & Sons L.L.C.(Dubai)

Dear Customer, In an effort to serve you better, we request you to fill in

the following questionnaire.

1. How often do you shop at TCS?

(Weekly / fortnightly / monthly / quarterly / half

yearly)

2. How do you find the quality of the products?

(Excellent / good / average /

poor)

3. How did you find the variety of products?


poor)

4. Did you come across any difficulty while purchasing or

billing?

(yes/no)

Reason: _________________________________________

_________________________________________.

96

QUESTIONNAIRE

5. Do you wish any products to be added in our store?

(yes/no)

Which: __________________________________________

6. Was the store clean?

(yes/no)

7. Was the parking space provided to you appropriate?

(yes/no)

8. How was the overall appearance of the crew members?

(Hair, dressing, body language, communication

skill)


poor)

9. Were the signage’s informative? (yes/no)

10. How was the visibility and shelf space arrangement of the

store?


poor)

11. How did you come to know about the offers?

(Flyers / mouth publicity / news paper / Tele-

calling)

Other:

_____________________________________________.

97

12. Any other observations:

________________________________________________

________________________________________________

________________________________________________

___.

13. Any other suggestions:

________________________________________________

________________________________________________

________________________________________________

___

14. Personal information:

Name: __________________________________________.

Age: ________. Sex: (Male / Female)

Address:

___________________________________________

___________________________________________.

Contact no. : ________________. Mobile:

_______________.

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TERMS

&

ABBREVIATION

S

1. TCS:- T. Choithram & Sons

2. L.L.C.:- Limited Liability Company

3. U.A.E.:- United Arab Emirates

4. DSD Products:- Direct Stores Delivery

5. Non-DSD Products:- Non Direct Stores Delivery

6. Al Karama, Al Jumeirah, Greens, Gresns Community, Al

Rais, Al Safa park, Beech Road:- These are the names of

Area and Location where TCS having its stores

100

PHOTOS OF

TCS

102

0601045 study of stores management & analysis of customer feedback

Business

Transcript of 0601045 study of stores management & analysis of customer feedback