Departmental store mkt project grade 12

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TOPIC “Visited a departmental store/ retail shop or consumer co-operative store located nearby to study and report on the functioning of the store or shop”

Transcript of Departmental store mkt project grade 12

TOPIC

– “Visited a departmental store/ retail shop or

consumer co-operative store located nearby to

study and report on the functioning of the store or

shop”

INDEX1. CERTIFICATE

2. ACKNOWLEDGEMENT

3. TOPIC

4. INDEX

5. FOUNDER PICTURE

6. INTRODUCTION ON THE STORE

7. PROFILE

8. HISTOY OF THE FOUNDER

9. HISTORY ON THE STORE

10. VISION

11. NETWORK

12. HIERARCHY

13. GROWTH PROFILE

14. FUNCTIONING OF THE STORE

15. PRODUCT MIX -1

16. PRODUCT MIX -2

17. PRODUCT MIX - 3

18. PRICE MIX - 1

19. PRICE MIX - 2

20. PRICING METHODS USED-1

21. PRICING METHODS USED-2

22. HIGH AND LOW END PRODUCTS

23. PICTURES OF BILL

24. PLACE MIX

25. BRANCHES

26. SUPPLIERS

27. PURCHASE PROCEEDURE

28. PURCHASE ORDER FORM

29. STOCK

30. WAREHOUSE & STORAGE

31. PROMOTION MIX

32. ADVERTISEMENT

33. SALES PROMOTION

34. PERSONAL SELLING

35. PROMOTIONS & SIGNAGES

36. PICTURES OF PROMOTIONAL MATERIALS

37. MAJOR COMPETITORS

38. CARREFOUR

39. WESTZONE

40. BAQER MOHEBI

41. EVENTS HOSTED/SPONSORED

42. AL MAYA 30TH ANNIVERSARY

43. RAMADAN CAMPAIGN

44. AWARD OF EXCELLENCE

45. ENVIRONMENTAL CONCERNS HANDLED

46. CASE STUDY- PROBLEM

47. CASE STUDY- SOLUTION

48. SWOT ANALYSIS

49. PICTURE WITH THE MANAGER

50. CONCLUSION

51. BIBLIOGRAPHY

AL MAYA

Founder and Chairman Mr.

L.K.Pagarani

Introduction on the

store

History on the founder

– In 1982, LK Pagarani founded the Al Maya Group with one grocery store

in Ajman, UAE. Initially focusing on the food business, Al Maya Group has

gradually diversified into retail, distribution, restaurants and poultry farms.

– CitiMart, Jesco, Maya’s and the flagship Al Maya Supermarkets and Al Maya

Hypermarkets are the most well-known brands of the conglomerate.

– In 2013, Al Maya was awarded super brand status by the Superbrands Council,

the world's largest independent brand arbiter.

– Mr. LK Pagarani is ranked 21st according to Forbes Middle East in the category:

Top Indian Business Leaders in the Arab World.

PROFILE

– Al Maya Group, headquartered in Dubai, UAE, is a

diversified company established in 1982 by our

Founder and Chairman Mr. L.K.Pagarani.

– It is with his vision and leadership that Al Maya

Group successfully completes 34 years in 2016.

– The Group's core business' consist of Distribution of

Food and Non-Food products, Supermarkets,

Lifestyle Retail (Borders & Paperchase) and

Franchising (BHS & Mom and Me).

History On The Store

– What started as a humble one store enterprise in 1982 in Ajman, today, with the support of over 30

self-owned supermarkets in prime locations, a fleet of over 300 vehicles, and a state-of-the-art

distribution facility that covers over a million square feet, enjoys over 97% market coverage, ranging

from small groceries to large hypermarkets.

– Keeping convenience as a main focus, the Group’s flagship supermarkets included free home delivery

and 24-hour service which at the time, was not provided by any other retailer.

– As the supermarket business continued to flourish, fresh ideas were born in the minds of the

management. Thus the Central Warehouse Distribution depot under the auspices of the Al Maya

Trading Group was established in 1991.

– Using modern warehouse management systems, streamlined logistics and a professional, dedicated

and highly experienced staff, the Al Maya Group has established itself as the industry leader in

reliability and efficiency.

Vision

– Al Maya will strive to be the preferred partner for

global brands in the region and offer to our patrons

world-class products that advocate wellbeing

amidst the society we do business.

– Al Maya will nurture the professional aspirations of

our people and continue to evolve upon the same

ethos and values instilled in the organisation by our

Founder & Chairman Mr. L.K.Pagarani, lovingly

called Dada.

Network

– Headquartered in the UAE, the Al Maya

Group has strengthened its regional presence

across Oman, Bahrain, Kuwait and Qatar over

the past two decades.

– Besides this the group has also been

fortifying its global identity with stores in

India and the United Kingdom.

Founder and Chairman – Mr.

L.K. Pagarani

CEO – Mr. Deepak Pagarani

CFO - Sudeep Trehan

General Manager–Admin and

Finance-Ghanshyam

Lahori

COO - Bejoy Thomas Pulickel

Purchase Manager –Ravindran Pookattil

Group Personnel Manager –

Manish Sharma

Sales/Retail Manager–

Maldeen Key

IT Manager –Bharat Korwani

Brand Manager – Kailash Bhagnari

Group Director – Kamal Vachani

Hierarchy:

1982 -Established stand-alone

supermarket in Ajman, U.A.E.

1985 - Acquired the prestigious British Home Stores (Bhs) franchise for the

Northern Emirates.

Sep 6, 2005 -Invested Dh40 million in an expansion

involving the setting up of eight new supermarkets and

two fashion retail stores.

Oct 10, 2006 -Franchise deal between Borders Inc.,

a subsidiary of Borders Group, and Dubai-based retailer Al Maya Group.

May 4, 2012 - Top Indian Fast-moving consumer goods (FMCG) brands

launched by the Al Maya Group at Al Maya

Supermarkets/Hypermarket, Dubai.

August 2014 - Al Maya has announced that it has opened its fourth store in Abu Dhabi.

December 2014 -UAE-based Al Maya has

announced that it is aiming to increase its imports of products,

specifically in fresh, from Jordan.

7 October 2015- Al Maya Distribution

has been appointed the exclusive

distributor for all American Kitchen

products.

27 Feb 2016 –Opened brand new

store at Dubai Sports City, Dubai.

PRODUCT MIX

Product Mix

Fruits and Vegetables

Garments Butchery Bakery

Electronics Kitchenware Stationery Rice (own brand)

Product Mix

Cosmetics Fishery Toys Confectionery

Dairy Products Accessories Travel Bags Home Appliances

Product Mix

Frozen Food Footwear Greeting Cards Crockery

Home Decor Pulses Baby Care Fresh Flowers

PRICE MIX

Price of different product categories

Price of different product categories

– Competition based pricing:

– Al Maya mostly uses this pricing strategy. The price will be either equal to less than their

competitors like West Zone Supermarket, Carrefour, etc.

– Zone pricing method:

– Al Maya uses different prices on the basis of the location of their store/zones. Customers

in high-income regions, for example Jumeirah, the price is higher than their store in Al

Satwa. This helps Al Maya to tailor the prices found at different stores to maximize

profits across regions.

Pricing Method Used:-

Al Maya also provides Loyalty Discounts to customers using Mashreq bank.

Products With High End Prices

And Low End Prices

Products with high end prices

– Electronics

– Home appliances

– Kitchenware (branded)

– Branded watches and

clocks

– Branded footwear and

clothing

Products with low end prices

– Almost all products

like:

– Food products

– Toiletries

– Home décor, etc.

PLACE MIX

BRANCHES:

– The Al Maya group has 45 stores situated in U.A.E .

– Dubai has a total of 32 stores

– There a total of 6 stores in Abu Dhabi.

– In Sharjah and Ajman, there are 4 and 3 stores each.

– Every store has the same promotion techniques, product ranges, prices and placing of products.

– Every branch has a branch manager and the other department heads follow him. (purchase manager, sales manager)

– Every Al Maya store ensures customers convenience, reach and satisfaction.

DUBAIPlace Store name

Dubai Al Maya Hypermarket -Lamcy

Al Diyafah Al Maya Mart

Satwa Al Maya Mart

Al Barsha Al Maya Supermarket

Al Mankhool Road, Bur Dubai Al Maya Supermarket

Al Muraqqabat, Deira Al Maya Supermarket

Al Reef Mall Al Maya Supermarket

Al Sadaf, JBR Al Maya Supermarket

Boulevard 8, Downtown Al Maya Supermarket

Bur Dubai Al Maya Supermarket

Clover Bay Tower, Business Bay Al Maya Supermarket

Deira Al Maya Supermarket

Dream tower, Dubai Marina Al Maya Hypermarket

Liberty House, DIFC Al Maya Supermarket

Al Jazira Street Al Maya

Financial Centre Road Al Maya Supermarket

Place Store name

Mamzar Al Maya Supermarket

Marina Promenade, Dubai Al Maya Supermarket

Murooj Rotana Al Maya Supermarket

Ritaj Community, DIP Al Maya Supermarket

Shams, JBR Al Maya Supermarket

Silicon Oasis Gate 1 Al Maya Supermarket

JBR Bahar Al Maya Supermarket

Bur Dubai Citimart

Arabian Ranches Daily Gourmet

JBR Murjan Daily Gourmet

Deira Jesco

Hamriya Jesco

Al Qusais Al Maya Supermarket

Dubai sports city Al Maya Supermarket

Satwa Al Maya Departmental Store

Satwa Extra Al Maya

AJMAN, SHARJAH AND ABU DHABI

Place Store name

Al Bader Street Al Maya Supermarket

Al Shaali Tower Al Maya Supermarket

RAK Road Al Maya Supermarket

Place Store name

Al Falah Village 3 Al Maya Supermarket

Al falah Village 4 Al Maya Supermarket

Al Reem Island Al Maya Supermarket

Citi Mall Al Dhafra Al Maya Supermarket

Tourist Club Al Maya Supermarket

Al Dhafra Extra Al Maya

Place Store name

Al Nahda Al Maya Supermarket

Rolla Al Maya Supermarket

Sharjah Jesco

Sharjah Al Maya

SUPPLIERS– Al Maya Group enjoys prestigious partnerships with key brands like English knitwear giants Byford

London, Fruit of the Loom, Levis, Shock Absorber, Dim Scholl, Dollar and the footwear brand Relaxo. Theses are the main suppliers for garments, footwear, legwear products etc. of their brands.

– Other suppliers include:

a)Al Seer Group – They have ISO 22000 and HACCP certifications and have a wide portfolio of strong brands in categories of food, non-food, frozen, stationery and beverage.b)National Marketing & Trading Co LLC - For Foodstuff & Agents Spices, Medical Items & Cosmetics.c)Arabian Oasis – Provide food and beverages.d)T.Choithram – Supplies food items like Rainbow, Kimball, Fruitella, Weetabix and Seasons Harvest.e)MARS Gulf - A leading FMCG sales and distribution business of Galaxy®, Mars®, Bounty®, M&M's®, Twix®, Uncle Bens®, Pedigree®, and Whiskas®.f)Al Rashideen Trading Co. – Suppliers of Tobacco and Cigarettes.g)Sea Fam and Sea Top – These are the daily suppliers for fish. The orders are given at night and fresh fish is supplied every morning.h)Fruits and Vegetables Suppliers – Fruits and vegetable from different places like Thailand, Srilanka, India, Philippines etc. are imported on Wednesdays.

SUPPLIERS

PURCHASE PROCEDURE:The purchase procedure of Al Maya departmental store consists of five steps which are as follows:

– Purchasing requisition - It is a formal request initiated by the store keeper or a specific department to the purchasing department for the purchase of specific items.

– Tenders or quotation - After receiving purchasing requisition, the purchasing department finds the best source to purchase the material from. Invitations for tender in a prescribed form are sent to prospective suppliers incase they don’t have a contract with the supplier yet. If they do, they proceed to step 3.

– Purchase order - The purchase order is a contractual agreement with the supplier for the supply of materials. It is prepared in five copies. The purchase order prepared is sent to the supplier.

– Receiving and inspecting materials - The receiving department performs the function of unloading and receiving of materials dispatched by the suppliers. It verifies the quantity and condition of materials and sends back the goods that are not as per requirement.

– Checking and passing of bills for payment - When the invoices are received from the supplier, they are verified and sent to the accounting department to make the payment to the supplier. Payment will be made according to the terms specified in the contract of each supplier.

PURCHASE

ORDER FORM

STOCK : How does Al Maya maintain stock?

– Al Maya maintains the stock of their shop through the below ways:

a) Theft control. Without an inventory system, it's impossible to know if you're being

ripped off by customers or employees until it's too late

b) Customer service. You can avoid running out of stock and can determine if an item's in

stock and locate it more readily if you keep track. You can also locate out-of-stock

items, their prices, and manufacturers.

c) Financial management. Inventory systems help you keep track of how you're doing. It

makes little sense to go for an entire year without knowing the status of your stock.

d) Product tracking. You can track specific items and weed out low sellers with sales or

markdowns.

Theft Control Product Tracking

Customer Service Financial Management

Warehouse and Storages

– Located at 'Dubai Investment Park-II', Al Maya has a brand new Warehousing set-up

of about 80,000 sqft. having facilities to store and make the distribution of all the

goods smoothly and promptly. They have modern equipments for smooth movement

within the storage facilities and the goods inwards & outwards are handled by well

experienced skilled labours & supervised by professional staff who have excelled in

this field.

– The Central Warehouse is located in Al Quoz Industrial Area 3, Dubai, Near United

Precast Concrete Dubai LLC.

– The goods which are replaced frequently on the shelf, include Dairy products, Fruits

and vegetables, Fishery and butchery, Soaps and detergents.

PROMOTION

MIX

PROMOTION– Customers will always find discounted and sale products in Al Maya.

– Al Maya has allotted certain areas in the store where through-out the

year products are put on promotions.

– Majority of the promotional items are displayed near the entrance, to

catch the customers eyes.

– Big promotional offers are conducted in the festival times like Christmas,

Eid, Ramadan, Vishu, Easter, Diwali, National Day, etc.

– In the fruits and vegetable section, huge promotion and fests are

organized like Mango Mania, each country’s fruit/vegetable during its

national day and so on.

– Products which relate to the occasion are displayed on sale. For example,

customers walking in before re-opening of schools will witness ‘Back to

School’ promotion offering variety of stationery items and school bags

for students.

ADVERTISING:– Al Maya usually uses Print Media for advertising.

– Their offers and new arrivals are given in all the leading newspapers, magazines.

– Flyers and brochures are made available at the doorstep of every house in a particular residential area.

– They use little to no Visual Media advertising.

SALES PROMOTIONS OFFERED:– Al Maya usually sales promotion methods very frequently.

– This is done in order to never lose out customers.

– Clearance sale, bundle offers, discounts up to 75%, half pay back, etc. are the most commonly used methods.

– These offers are always advertised everywhere.

PERSONAL SELLING:

– The employees are well trained and even experienced.

– They communicate to the customers with a lot of ease.

– The costumers feel comfortable and do not hesitate to ask them about any queries.

– There is a separate counter for customer service too.

Promotions and Signage's

– Pyramidal Structures for Discounts

– Red promotion flags hanging from ceiling

– Red ground demarcation for promotion areas

– Gondolas at the end of aisles aware stacked high

with items on promotion

– Signage for directions and products clearly

mentioned on boards suspended from ceiling.

PICTURES OF PROMOTIONAL MATERIAL

PICTURES OF PROMOTIONAL MATERIAL

MAJOR

COMPETITORS:1. Carrefour

2. West Zone Supermarket

3. Baqer Mohebi

CARREFOUR

– Carrefour, one of the largest French hypermarket chains in the world was introduced to the Middle East

and North Africa (MENA) market in 1995 by Majid Al Futtaim, the leading shopping mall, retail and

leisure pioneer across MENA.

– Carrefour has become the most dynamic, fast-moving and exciting hypermarket chain in the region and

shared its growth with more than 21,000 employees from more than 68 nationalities in 12 countries,

providing shoppers with variety and value-for-money.

– Carrefour ensures customer satisfaction and everyday convenience while offering unbeatable value for

money with a vast array of more than 100,000 products.

– Carrefour currently operates over 55 hypermarkets and over 50 supermarkets and one web store in 12

countries across the MENA region and will extend to include 38 countries in the Middle East, Central

Asia, Africa and Russia.

WEST ZONE

– West Zone Group was incorporated in 2005 and has progressed formidably to become one

of the top rated corporate house in the UAE.

– All the West Zone employees are specifically trained to give the customers an experience

that they deserve.

– Their key facts:

– 35 locations and growing

– Over 1,500 employees

– Around 500,000 sq. ft. retail area

– Over 5,000 global brands stocked

– 70% products are imported

– Baqer Mohebi Enterprises is one of the foremost specialists in the UAE for the distribution and

marketing of consumer goods, both food and non-food. We currently serve over 6000 clients from over

40 multi-national premium brands. We also operate a number of retail stores.

– Key benefits are that the matrix organizational structure ensures efficient sales management, trade

marketing initiatives, in-store merchandising and direct distribution without diluting the

category/brand focus across market segments.

– They cover 100% of numeric and weighted distribution in Modern, Traditional and Wholesale Trade

and in Direct Distribution, 80%.

– They leverage multi-product and multi-country status to reduce operational hurdles and to drive

negotiations, thereby gaining greater market share/control at the lowest possible cost.

Events Hosted and Sponsored/

Awards Won

– Al Maya Group sponsors and participates in various events like

U.A.E National Day, Mother’s Day, Ramadhan Kareem, Eid,

Christmas etc.

– They make sure to include and involve their customers in such

events.

– One such event as the Al Maya 30th Anniversary.

– The Al Maya Group also has received various awards for their

excellence in retailing and other qualities.

– These awards make Al Maya more trustworthy and responsible.

Al Maya 30th Anniversary

April 29, 2012 :Al Maya Group celebrates carnival

To mark 30 years of operations in the region

As part of the 30th anniversary celebrations, the Al Maya Group has announced that it is starting ‘the Al Maya Birthday Carnival’ from May 1. Customers have a chance to win one of three brand new Mini Coopers during the birthday carnival on a single purchase of Dh100 at any of the 60 plus Al Maya owned stores within the UAE including Al Maya, Al Maya mart, Citimart, Shop n Save supermarkets in Dubai, Al Ain City Centre, Borders, Mom & Me, Paperchase and BHS (Dubai and northern emirates).

Ramadan Campaign

– 11 Jun 2015 : As a part of our Ramadan campaign, Al

Maya will be offering a price lock for 135 basic Food

and FMCG products across the UAE

– Al Maya has announced a Ramadan budget of almost

Dhs.1.2 million, offering discounts and subsidized

pricing for more than 150 products during the Holy

Month of Ramadan.

– Al Maya Group has also pledged Dhs.100,000/- to Dubai

Cares and various other local charitable organizations

as part of its charitable initiatives.

Al Maya Group awarded the “Award of Excellence” for

excellent business partnership

– March 10, 2013: Al Maya Group announced that it has been awarded the “Award of Excellence” for excellent business partnership by Sun Mark Limited, UK.

– The award was presented by Ian Gibbons MBE, Deputy Consul General & Director of UK Trade & Investment, British Embassy, Dubai, to Kamal Vachani, Group Director, Al Maya Group.

– “We are indeed honoured to have been awarded ‘Award of Excellence’ which was presented to us by Mr. Ian Gibbons. We will make all efforts to boost business relationship with British companies,” said Vachani.

ENVIRONMENTAL

CONCERNS HANDLED

– Al Maya departmental store doesn’t have any particular handling of environmental concerns. They have plastic bags that are made according to the rules laid down to them and ensure proper waste management. They keep the stores clean and tidy at all times.

– Al Maya group as a whole or other brands of Al Maya group do handle environment concerns like the WEEE Directive by Paperchase and the paper recycling campaign held at Gems Our Own English High School, Dubai.

– The Al Maya Group pursues a proactive approach towards the protection of the environment.

CASE STUDY: PROBLEM:

HIGHER OPERATING COSTS:

– Al Maya has many departments dealing in different lines of products, since it aims at selling everything under one roof. Such a large retail organization always required a large amount of capital to keep the business running as the cost of running a departmental store was very high.

– Since it was centrally located at places of increasing demand the rent for the building was very high. Furthermore Al Maya also offered personal services and facilities like Free Home delivery, spent more on advertising, held regular promotions and gave a high salary to skilled and hardworking employees. All these expenses increased the overhead expenses of Al Maya.

CASE STUDY: SOLUTION:

– The high overhead expenses that Al Maya had to undertake were reduced by following the Economies Of Scale and by cutting down a little on frequent promotions when this problem aroused.

– By producing a huge number of goods they were able to reduce the per unit cost and could therefore harvest more profits. They were also very careful in spending on advertising during this period and focused more on keeping expenses low.

– Salary peaks were dismissed and an acceptable pay scale was adopted. Thus Al Maya was able to overcome the problem of huge overhead expenses.

STRENGTH1. Private label sale – own products (maya’s)

2. Economies of scale - The company can share its fixed costs over many products,

which makes Al Maya one of the cheapest places to shop.

WEAKNESS

1. 1. Poor inventory control

2. 2. Staff – Lack of knowledge about

products

3. 3. Parking

OPPORTUNITY1. Large untapped market in the United Arab

Emirates.

2. Reduce operating cost.

THREAT1. With other competitive stores opening in

Dubai market, market share is reducing.

2. Fierce competition

SWOT ANALYSIS

CONCLUSION– A spacious departmental store which offers a wide variety of products from all

over the world. Having various departments with signage's and various choices

for products, Al Maya is a good choice for daily shopping.

– The store promises customers with quality products at a lesser price. Providing

parking space and counter to leave shopping bags while inside the store add to

the convenience that the customers desire.

– Even though the store is sometimes unorganized (when new supplies are

brought in), the large isles allows the customers to move around easily, even

during rush times. Al Maya employees are present in all corners of the store to

lend assistance to any customer whenever possible.

– The Al Maya group can however focus more on environmental concerns as it is

important to give back to the environment what one takes. Overall, a customer

has a good and pleasant time shopping at Al Maya Departmental store.

– The store’s tagline “ONE MAN'S DREAM, TODAY AN ASPIRATION FOR MANY” is

indeed fitting for Al Maya because of its achievements in Retailing.

Bibliography

– http://www.almaya.ae/offers-news/news-details.aspx?id=46

– http://www.almaya.ae/offers-news/news-details.aspx?id=37

– http://retailanalysis.igd.com/Hub.aspx?id=13&tid=1&rid=2637

– http://gulfnews.com/business/sectors/markets/al-maya-group-plans-

expansion-1.299911

– https://www.zawya.com/story/Al_Maya_Group_participates_in_Gulfood

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– MS OFFICE