DR. CAMIL BULCKE PATH, RANCHI

__________________________________________________________________________

A project report

On

Group- Prof. A.R .Bodra

Aman Manish Lakra 07 Nishant Sinha 25 HOD, Marketing

Saurabh Sagar 32 Sumedha Sonal 53 XISS, Ranchi

Prateek Anand Singh 60

[Department of Marketing] Prof. Subhajit Bhattacharya

We express our sincere gratitude to Mr. A. R. BODRA HOD Marketing, XISS

for providing us an opportunity to work on this project. We are very

grateful for their constant support and guidance throughout the duration

of this project. We also express my sincere thanks to MR. ATUL MINOCHA,

the owner SHOPPERS' MART, Ranchi for providing us vital information

which results in successful completion of this project. The project provides

us the fundamental and practical knowledge and idea of how a retail shop

works.

We also like to thanks Prof. SUBHAJIT BHATTACHARYA for his continues

support and guidance.

Thank you

Regards,

Aman Manish Lakra 07 NishantSinha 25 SaurabhSagar 32 SumedhaSonal 53 PrateekAnand Singh 60 (Marketing, XISS, 2011-13)

Sel. No. TOPIC PAGE No.

01 About the retail outlet 01

02 Logistics model of SHOPPERS MART 01

03 Order booking process 01

04 Logistics model (Flow chart) 02

05 Shopper’s Mart Business model 03

06 Generation of profits 03

07 Monthly Expenditure 03

08 Strategy – Branding, Promotion, Marketing 04

09 Competition 04

10 Customer Relationship Management (CRM) 04

Shoppers' Mart is a retail outlet in Ranchi with a wide range of men’s, women’s and

children’s apparel, sportswear, denim, and a range of licensed products such as

accessories, fragrances and footwear. It is located at Roshpa Tower, Main Road, Ranchi.

Mr. Atul Minocha is the owner of the store. All the departments are handled by the

Head Sales assigned for every department.

Shoppers' Mart does not manufacture any product; they procure them from all over the

country. Some of the major places from where the products are procured are Delhi,

Mumbai, Kolkata and Bangalore.

Shoppers' Mart does its inventory management through software called Ginesys. Once

there is a shortage of any product, an individual from the store goes to the place from

where he has to procure the products. Agents are available to provide the product on

behalf of company and they act as a bridge between the retailer and the supplier. These

agents are known as commission agents and they earn around 1% on every transaction.

Once the order is booked the supplier arranges for the products to be shipped.

Shoppers' Mart only uses road transport. The order takes around 2 to 5 days to be

delivered the outlet. All the products are insured by the suppliers. They have an in house

go down for the storage of shipments. Some of the Logistics agencies that Shoppers'

Mart has a tag up with are:

DELHI - PATEL LOGISTICS

KOLKATA - BR LOGISTICS

BANGALORE - PATEL LOGISTICS

MUMBAI - TRIED LOGISTICS

Suppliers give 15 to 20 days for the payment to be made to them.

01

Bargaining with suppliers depends upon the personal terms that the retail outlet has

with them. If the retailer is giving discount of 20% they go with 10% contribution of

each. Some of the major suppliers are:

ADITYA BIRLA GROUP

ARVIND MILLS

MADURA GARMENTS

IMPLICATION OF VARIOUS TAXES

Put this in a table

TAX RATES

Central Sales tax 1%

VAT 5%.

MUMBAI

BANGALORE

AGENT

DELHI

TRANSPORTATION

TRANSPORTATION

End

Consumer

02

MULTI BRAND RETAIL OUTLET

The basic model of the store is of a complete family store. Shoppers' Mart is a six years

old outlet. The outlet is of the same fraternity as Ved Textiles and Apparels. It has a sole

purpose of serving the whole family with a wide range of Branded and Non Branded

apparels and accessories. It has different sections for Men, Women and Children. There

are Head Sales for all the sections. The store hires in sales men of minimal qualifications

because of which they have a very high attrition rate. All the sales men report to the

Head Sales of their respective departments. The whole essence of the business lies in

the procurement of products from different suppliers and from different places so that

the customers get all the choices under one roof. Some of the major brands are Allen

Solly, Peter England, John Players, Van Heusen and Park Avenue.

STORE LAYOUT

The floor size of the store is 18000 sq. feet. The different sections are:

MEN Apparels - Clothing (Branded and Non Branded).

Accessories - Wallet, Belts and Watches.

WOMEN Apparels - Clothing (Indian, Ethnic and Western)

Accessories - Watches, Cosmetics, Footwear.

CHILDREN Apparels and Footwear.

The store has two floors out of which the Ground floor has Accessories (for men and

women), Cosmetics, Footwear, Sarees.

The first floor has Menswear, Ladieswear and Kidswear.

03

Since its inception six years back the outlet has doubled its turnover. The outlet was

started with keeping in mind the demands of the whole family. With time the store has

increased its range of products. The major revenue is generated through the Men's

section. The sales volume increases at the time of sale/festive season. Every year

thetarget is to at least reach the last year's revenue level. The store also helps the

suppliers in stock clearance. At these times they even get discounts up to 50% from the

suppliers. For the store, concept of sale is a kind of festival. The margin of the retail store

is approximately 25%, exclusive of VAT (i.e. 5%).

The monthly expenditure of the shop is 7 to 8 lakhs which includes all the expenses

including the expenses of procurement of the products, rent, and electricity etc.

Shoppers' Mart has a very strong relationship with the suppliers, agents, logistics

agencies. They share their value apart from paying money to them. The store believes in

a mutual relationship of trust with the stakeholders. The sales team are trained well and

get rewards according to the targets they meet. Shoppers' Mart tries its level best to

give their customers best of the products at best of the prices. The store also gives

equal importance to the suppliers and the consumers so that there is no biasness.

The preferred source for advertising is newspapers, radio and hoardings. Newspapers are

used as a medium for spontaneous sales information to the customers. The popularity of

the newspaper in Ranchi acts as decision making factor for giving the advertisements.

Although newspaper is a very costly medium of advertisement. Hoardings are used for

long term branding. Most importantly the store depends majorly on the spread of

positive word of mouth through the customers. They believe in developing a positive

04

image in their consumer's mind. They have a trust on the customer base they have. They

measure the impact of the promotional activities on a weekly basis

in terms of revenue generated and foot falls.

Six year back when the shop was opened there were not much big competitors. With

time big competitors like Big Shop, Kolkata bazaar, and Reliance trends came in the

market. These players are not much of a threat as Shoppers' Mart has its own customer

relationship which is very strong. This is also justified by the fact they have doubled their

revenues in six years. Moreover the store is a member of VastraVikretaSangh which takes

care of the interests of the retail outlets in the city. Whatever decisions that the fellow

retailers make is on common consensus. This is a way through which Shoppers' Mart

sustains in the market.

SURVIVAL STRATEGY

In future the store plans to bring in more brands and aspires to develop its customer

database. The store also plans to promote the brand to other cities as well. They are very

much aware that new entrants are going to enter into the market but they trust on their

existing customer base which is very loyal to them. Through efficient customer service

they would also manage the after sales service to woo more customers. Through

customer probing we came to know that the customers get personalized attention from

the sales people and the floor managers. This makes the customers feel good about

shopping in Shopper's Mart. We also asked if the customers refer the store to their

friends and relatives, and we got a positive response. This personalized service gives the

store an edge.

05

Shoppers' Mart believes in true customer satisfaction. They constantly strive for

personalized service being provided to the consumers. The sales team is trained

properly for this. They do not leave a stone unturned and always give personal attention

to the customers. They have a comprehensive database of 2000 customers. They keep a

personalized record of the frequently visiting customers. They do this through a form

which they ask their customers to fill up. They also have a membership card through

which regular customers avail special offers. The central idea for the store is 'Everything

for the family' and they achieve their motto by delivering personalized customer

satisfaction.

06