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Retail ManagementSubmitted by:Oozema ZafarAlmira Naz ButtShifa Anum NasirFatima KhanSidraImtiaz Super Market4/19/2014Retail Management

Introduction and History4/19/2014Retail ManagementImtiaz Store started in the year 1955 in Bahadurabad, with a very small one room general store. The shop was hardly known by anybody then since it was located in a very narrow lane having very few housesOwned by the Late Haji Hakim Khan, and its a family-owned business. Now owned by his son, Haji Imitiaz Khan.Began gaining attention in 1957 and by year 1973 it became the city's biggest general store serving around 35,000 customers a day.Introduction and History4/19/2014Retail Management In year 1983, it actually converted into a complete supermarket and is now serving more than 72,000 customers per dayTheir vision is to serve as Pakistan's highest selling hypermarketImtiaz Super market presently has three outlets in Karachi; Bahadurabad (also known as Chota Market/Bazaar) Awami Markaz, Shahra-e-faisalNazimabad near board officeDHA Phase 1

RETAIL FORMAT4/19/2014Retail ManagementStore Location: Imtiaz Store is situated in a high-street location with very high customer traffic, large array of retail stores in small sizes having clusters in the same product category It has an advantage with huge (surrounding) spaceEmployee type and density: minimum qualification of the employees is matriculation. Dress code is blue shalwar kameez. Usually 4-5 employees are working in each aisle. 4/19/2014Retail ManagementMerchandise Type and Density: Very dense merchandise. It has approximately 1,000 pieces per sq ft. Huge assortment of all kind of products.Fixture Type and Density: The fixtures at Imtiaz Store include blue plastic racks that carry all items. Number of fixtures per square foot of space at Imtiaz is 40.4/19/2014Retail ManagementVisual Type and Factors: Bright White lights have been used to: propel the customers to buy more, highlight impulse merchandise, help customers to easily inspect and select the items they want to buy.VISUAL MERCHANDISE AND DISPLAY4/19/2014Retail ManagementFreezers and kiosks placed outside the store.Shop displays: Live Displays (used by suppliers), Counter Displays (including bubble gums, chocolates, cigarettes lighters etc.)Proper sections have been maintained for each product category so that consumers conveniently find the products they want.

Space Mix at Imtiaz4/19/2014Retail ManagementThe selling area at Imtiaz Store Structure

The back area includes the godown The 30% non-selling area also includes the aisles and the staircase that leads to the warehouse.

The selling space is further divided in terms of size and location of different groups of merchandise such as staples, convenience and impulse items.

The staple goods constitute about 50% of the store and are placed at the deeper end of the store. Retail Space Management4/19/2014Retail ManagementThe best part of Imtiaz Store is its effective space management

Easy Walkway for Customers- Basic commodities like wheat, rice and other staples are kept in the deeper end of the store, which forces the customer to walk through the entire store

Best technique to make customers buy stuff that is not even on their Shopping list

Haji Imtiaz Khan is very critical about the space management in his store as he believes that, 80 out of 100 customers follow the silent guide that we provide them; if we don't provide the right way to walk, our sales can go down drastically.4/19/2014Retail ManagementImpulse goods are kept at the cash counter

Ice creams and some local chocolates are kept near the cash counter as it not only attracts the kids waiting at the cash counter but also catches the attention of the passers by.

Layout / Circulation Plan4/19/2014Retail ManagementInside Store - Placement of Product catches eyes and enables them to get exposed to entire store offering

Special Lightning and Display Strategy- Cosmetics, Household and chocolates are strategically placed along the aisles which pulls the customer from section to section.

The width of each aisle is planned according to the product type and density and the traffic pattern in that particular area.

The main aisle is 5 ft wide, which then goes into 8 more aisles each for a different product category.

Two entrances4/19/2014Retail ManagementMain store - for kids and women Goes directly towards sweets section and house-hold allow traffic to move easily to destination

The circulation pattern followed by Imtiaz Store is "Grid Circulation".

Here the aisles and fixtures are at right angles to each other.

Floor Space Management4/19/2014Retail ManagementTo make sure that the customers frequently visit Imtiaz

Store and become permanent buyers, the storeowner

The employees work really hard on floor space management.

Gross Margin on Footage4/19/2014Retail ManagementEach month merchandise selling and the customer traffic is checked per square foot in accordance with fixture type per square foot.

The Hot spots constitute the rice and staples area

Cold spots include the household items area but they are working effectively to convert it into a warm spot by adding more variety of merchandise and imported goods.

Merchandising4/19/2014Retail ManagementHierarchyServing more than 70,000 customers per day, Imtiaz Store caters an assortment of more than 35,000 product variations and options. 16b. Buying function4/19/2014Retail ManagementOpen to buy (OTB) plan, which enables them to achieve strategies and benchmark standards of customer deliveries. Forward planning: forecasting sales and end of month (EOM) inventories for specific periods. They pre-plan stock a week in advance and store a week's worth of stock.OTB helps to fix the ideal amount of stock that should be available at the beginning of any month and quantify new merchandise to be received during the month. The purchase of different products is the responsibility of the buying function. The buying function of Imtiaz store is segmented into packaged goods and perishable goods. The function is structured to meet the needs of the store in managing a wide range of products:Fresh Produce, frozen foods, non food items, merchandise/apparel or packaged grocery.4/19/2014Retail ManagementMarkup / Mark downNo special markups at Imtiaz Store as they follow a low price strategy but there are often mark downs on merchandise like biscuits and sweets. Their markdowns are seasonal, like during December, when it's the wedding and Eid season.

d) ShrinkageControl this by keeping a constant manual check on all the employees as well as the customers. Their employees are given special uniforms, which they change while they arrive at work and keep their wallets and other things at the counter. Their uniform has no pockets so it lessens the chances of employee shrinkage as the employee leaves the store after changing his clothes and going through a proper check by the mid-level management of the store.Supply chain management 4/19/2014Retail Management

Supply chain management4/19/2014Retail ManagementImtiaz Store has a very good supply chain management system. It is linked with large number of suppliers not only in Pakistan but also covers few foreign countries. Its major suppliers within Pakistan are:UnileverProcter & GambleNational FoodsAshrafi FlourmillsColgate PalmoliveJodiya Bazaar Merchants

Supply chain managementa. WarehousingImtiaz store has a warehouse within their store, which makes it easy for them to deliver goods whenever their customers want. Normally customers demand goods in bulk.

As compared to other department stores like Agha's, Imtiaz Store has a large warehouse. Their employees perform all the calculations and prepare all the receipts manually and then they use a computer system for calculations and storing records.4/19/2014Retail ManagementSupply chain management4/19/2014Retail ManagementTransportationDue to increased use of distribution centers by Imtiaz Store, the management of outbound transportation from distribution center to store becomes complex. That's why Imtiaz Store does weekly planning to overcome the complexity of transport system. In addition to weekly planning, they have a sophisticated routing and scheduling computer system. This system considers customer service levels, road conditions and transportation operating constraints to develop the most efficient routes possible. As Imtiaz also imports goods, they receive direct shipments from Dubai. They have contracts with reliable transportation companies. The goods are also transported in Imtiaz Store through trucks, depending upon the amount of goods.Supply chain managementReceiving and CheckingImtiaz Store makes payments when they receive goods and in case they do not give payment at the time of receiving goods then they set a future date of payment. Imtiaz Store has assigned certain people to check the orders manually.Their employees perform all the calculations and prepare the receipts manually and then use a computer system for calculations and storing records.

Vendor ManagementImtiaz Store has sophisticated vendor management. They stock a week's worth of stock at the outlet.

4/19/2014Retail ManagementRetail Marketing Strategies4/19/2014Retail Management

a. Brand4/19/2014Retail ManagementImtiaz Store brand - Rice and Spices:Imtiaz Store has been popular for providing excellent quality rice under their brand named 'Ponam' rice. Besides rice, Imtiaz store has also provided spices with its brand name. It has own factories located in Karachi, in Korangi and the Super Highway, and also exports to other countries.b. Store positioning4/19/2014Retail ManagementStore LocationOne of the main reasons for the success of Imtiaz Store is their location.

Located adjacent to other retail outlets like poultry shop, spices shop, thus giving the passing-by pedestrian an opportunity to buy other items.

Spacious outlets at Korangi and Awami markaz

4/19/2014Retail Managementc. Retail Marketing Mix4/19/2014Retail ManagementE-TailingToday Imtiaz Super Market has stepped into the digital world, just so your buying experience does not end when you leave the store.

Now Imtiaz Super Market is able to talk to you, find out what's on your mind, and let you know what it has in store for customers.4/19/2014Retail Managementd. Direct Marketing4/19/2014Retail ManagementImtiaz Store only concentrates on direct marketing through direct mail. It provides a key-differentiating factor to their customers by providing them a detailed form, which mentions all their products and their prices.The customers can easily get the form from their counter and later fill it. The items marked in the form are delivered to their homes with their bills to be paid in cash. This way, the customer feels a sense of ownership and belonging for the store.Research4/19/2014Retail ManagementResearch is carried out at Imtiaz Store for the sake of expanding their business and to test the position of current business running. It tells whether the business is running smoothly or not.Research4/19/2014Retail ManagementObservational research findings4/19/2014Retail ManagementRecommendations4/19/2014Retail ManagementFocus on structure of Bahadurabad main branch to improve its cleanliness and atmosphereAmple parking space must be made available so as to facilitate the increasing number of customersShelving at Awami markaz and main branch should be improved as mishandling affects the product qualityInstall an Air conditioning system at the main branch and maintain the one at awami markaz 4/19/2014Retail ManagementMore cash counters should be added. Add Express counters at the main branch speciallyCounters closed should work atleast in the peak hours or peak days of the month to lessen the traffic and delays More employees should be hired to facilitate customers to take the trolleys to their car Inventory of items which have high sales must be increased so as to reduce customers inconvenience increase the size of the outlet of the main branch where there is too much congestion