Santosh Retail Assignment

8/8/2019 Santosh Retail Assignment

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MEGA MART

RETAIL MANAGEMENT ASSIGNMENT

Submitted by

B.Santosh Raj,

09141.

Executive summary:

Mega Mart entered into retail clothing sector because Arvind Mills is known for its

quality products in apparels. Mega Mart gets its stock from Arvind Mills, Bangalore. However

retailing is emerging as a sunrise industry in India and is presently largest employer after

agriculture. Some economists say that retailing is one of the pillars of the economy in India, and

some say it is the gold mine of Indian economy.

Mega Mart Retail ltd is a Lal Bhai group enterprise. It is Indias leading retailer that

operates in multiple formats. It is headed by Lal Bhai and his sons Srikanth and Charan. The

company operates across 70 cities in India and employees over 2500 people.

The motive is to study to know the market potential at Mega Mart miyapur Hyderabad

with reference to other apparel outlets.

1) Industry Chosen: Mega Mart Retail Store Miyapur (convenience store). Retail industry is

divided in to organized and unorganized sectors. Over 10 million outlets operate in the country

and only 5% of them being larger than 600 sq. ft in size. Organized retailing in India is projected

to grow at a rate of 25-30% p.a., is estimated to grow from the US $ 300 billion I 2007 to US $


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327 billion by 2010 and Us $ 537 billion by 2015.Indian retail sector is growing very fast with so

many new players are coming in this growing organized sector and trying to attract customers by

giving attractive offers and offering competitive prices etc

Retailing is emerging as a sunrise industry in India and is presently largest employer after

agriculture. Some economists say that retailing is one of the pillars of the economy in India, and

some say it is the gold mine of Indian economy.

2) Retail Format:

This Miyapur Mega Mart comes under Mega Mart small format because it just located in an area

of 5000 sq. feet. It sell 25 brands namely Wrangler, Lee, Levis, Colt, Flying Machine, Pepe

Jeans etc.

AravindRetail Ltd

MegamartBig Format

MegamartSmall Format

MEGA MART SMALL FORMAT MEGA MART BIG FORMAT

2000 6000 sq. feet 35000 -65000 sq. feet

25 private brands 200 private brands

Limited product category Wide range of product category


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3) Location Analysis:

A. The Mega Mart branch at Miyapur is located on the main road which is the centre of

various apartments and enclaves; basically it is around a residential area. Located to

satisfy the needs of that area people.

B. It had some commercial firms besides likey Road facing highly visible.

y Athidi restaurant beside it.

y Sangamitra school opposite to it.

y Hyderabad house besides

y Andhra bank besides

y Sharekhan Ltd just opposite,

y A few Tiffin centers opposite to the store,

y Many kirana stores and pharmacy stores surounding it.

Thus it can attract a variety of customers to its store.

C. At a distance of less than one kilometer or so it had no competitors.

D. The store was easily visible by almost all passing buy as it was near the Miyapur circle. It

had certain apartments being constructed besides. Thus it was in gist located at a very

posh developing area where the living standard of the people is high. The size of the store

is around 3000sq ft. and it had approximately 10 employees (including part time

employees).

4) Understanding the shoppers:

The store is located near the main road which connects commercial as well as residential

colonies nearby which has a high demand potential for consumer goods which are branded,

reasonable cost and reliable. Here most of the families are working families they dont have time

to purchase products they walk in to the store and pickup what they want and go away. It had

working people visiting, family, most of them had a high standard of living. Mega Mart store

provides an enjoyable convenient shopping environment in very own neighborhood.

To understand the shoppers they follow GUEST

G Great the customer

U Understand his need

E Explain features & benefits


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S Suggest additional product

T Thank the customer

5) Category Management:

It involves managing product categories as business units and customizing them [on a store by

store basis] to satisfy customer needs. Kids Wear, Mens Wear, Womens Wear, Sports Wear,

Luggage counter, Youth Wear, Casual Wear, Accessories etc. all the items are placed

accordingly to space available. Mega Mart involves managing product categories as business

units and customizing them [on a store by store basis] to satisfy customer needs.


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6) Supply Chain Management: It has an efficient supply chain system, because it has

network all over India. It saves and decreases it costs with efficient supply chain system. Having

large number of stores is also one the reason for efficient supply chain system.

Mega mart main branch is in Bangalore. Main branch receives the stock from Arvind mills.Every Mega Mart store uses online software which tracks the opening stock and closing stock.

Based on the sales, the will get the stock from main branch where the stock is stored. If any

branch wants stock they can also keep order. Generally every branch will get the stock once in a

week.

7) Store layout and design:Mega Mart has Grid layout.Due to place constraints they fallow this type of layout and design system.

1.B

ack room:

In Mega Mart the store room /back room are at the backside of the storewhere all the excess stock will be stored there.

2. Aisles: The aisles here are not large to accommodate peak crowd. One/two customers

with their tally can pass through the Aisles.

3. Billing Counters: space at the billing counter is maintained enough so that many

customers will come for billing at a time and thus this reduces the confusion. And billing

counter is at entrance so customers can go easily.

4. Shrinkage Prevention: As there would be no old/excess stock there are very less

chances for store shrinkage in Mega Mart, because they always keep stock update.

5. Merchandise design: All the racks are make sure to fill up with the products very soon

after they are finished and products of same category are made available to the customers

at certain location and thus helping the customers in their purchase.


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8) Pricing Strategy Followed:

Mega Mart is a discount Store it follows one pricing policy. They will give discount up to 50%

on MRP and add 4% VAT tax on MRP. In Mega Mart we will get discounts every day. We can

find special discounts on festival days and week ends.

When the stock is not moving out from the store or if the management is unable to sell

any particular product then they keep offers like buy 1 get 2 free, 50 % off, buy 1 get 1etc.


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9)Technology Used:Mega Mart store use online technology through which they can know

availability of stock. It uses bar code scanner. After inquiring the employees they said that they

used customized technology called JDS Software

10) Customer service offered:

The sales men present at this retail outlet are fairly good at serving the customers. Credit cardfacility is available. There are grievances at the billing counters. Delay in billing and errors in thebilling are the most important issues faced by the customers in most of this retail outlet. Theprimary reason may be insufficient training for the employees at the billing counter. The serviceat the billing counter is significantly slow. Free home delivery of products and taking customerfeedback.

CONCLUSION

Mega Mart store is opened in Miypur in the year 2007 and it is giving good competition to its

competitors like Koutons, Chermas, Big Bazar and other local retail outlets. In the near future, it

plans to open many stores in Hyderabad and some stores in other pats of A.P. Many more

competitors have entered the market and many are about to enter the market, making Mega Mart

journey even tougher. Hence, Mega Marts has to take some important steps to overcome its


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problem areas and implement the suggestions before the existing and new retailers grab the

opportunity making Mega Marts existence even more challenging.

Mega Mart should do market research on their customers to know what exactly they are

expecting from the store. By doing research they can improve more to improve their market

share. They need to train their employees more to make them aware about all the products,

company and industry. So, they can satisfy the customers easily. Mega mart have to use its space

more productively.

Santosh Retail Assignment

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