AMARA BAZAAR – TEAM WHISTLERS (NMIMS) TIRTHANKAR BEHERA ROHIT SHAWPlan for Amara Bazaar’s foray into Raipur
SWOT Analysis of RK Mall STRENGTHS WEAKNESSES• Located close to target consumer • No Hypermarket present in the mall • Middle class present in Bhilai and • Less number of branded shops compared Durg to other established malls • Residential area around the mall • Young crowd from colleges nearby• A well established mall since 5 years• Presence of multiplex as well as game zone for children which can draw in families• Can expand with more number of • Presence of more established malls in branded shops Raipur at better locations like City Centre• Can increase footfall by improving and Majento the ambience• Can decorate the mall during festive seasons to attract more people OPPORTUNITIES THREATS
SWOT Analysis of Mosaic Mall STRENGTHS WEAKNESSES• First mover advantage in Naya Raipur • Located far away from the main Raipur• Presence of popular brands like city Pantaloon and Fun Republic in future • Will take considerable time for a shop to• Proposed as the biggest mall in Raipur breakeven• Tap customers from upcoming • Uncertainty regarding completion time of residential areas which is currently upcoming projects in the area under construction OPPORTUNITIES THREATS
Choice of Location using Factor Rating Method Weighted Factor Scores RK Mosaic Factor Factor Factor RK Mall Mosaic Mall Mall Weight Factor Scores (1-5 scale) Proximity to Target Market 1.35 0.9 Proximity to Target 4.5 3 0.3 market Customer parking 0.1125 0.12 Customer parking 3.75 4 0.03 Traffic Congestion 0.12 0.16 Traffic Congestion 3 4 0.04 Competition 0.3 0.4 Competition 3 4 0.1 Labor supply 0.32 0.24 Labor supply 4 3 0.08 Sourcing 0.4 0.3 Sourcing 4 3 0.1 Location Cost (Rent,Utility 0.4 0.45 Location Cost bills,etc) 4 4.5 0.1(Rent,Utility bills,etc) Community Attitude 0.2 0.15 Community Attitude 4 3 0.05 Transportation facilities 0.4 0.2 Transportation Plot Size 0.2 0.225 4 2 0.1 facilities Special Consideration Plot Size 4 4.5 0.05 (Crime rate,Police 0.2 0.15Special Consideration Security,etc) (Crime rate, Police 4 3 0.05 Totals 4.0025 3.295 Security,etc) Best Total Score 4.0025 Total 1 Best Location RK MallLooking at the SWOT analysis of RK mall and Mosaic mall as well as theresults of the Factor rating method , Amara Bazaar should be set up at RK Mall.
Store Format Hypermarket Supermarket Supercenter Medium, around Very High, around 100,000 Space Required High, around 50,000 sq ft 20,000 sq ft sq ft Stock availability High Low Very High Low to High Range of High Medium (Depending upon what it products sells) Medium , only High as these are treated Medium , since it is spread Convenience groceries are as “one stop shop” over a large area available Location Cost High Medium Very HighDue to space constraint, it is very difficult to open a Supercenter in RaipurAlso RK mall is located near some of the educational hubs and students aremore interested in buying electronic items like phones, laptops and computeraccessories. So it will be better to open a hypermarket.
Merchandising Strategy Features of High assortment and Features of High variety and fewer fewer variety assortments Satisfaction level high to find products of different Freedom of choice in the same product category category Provides information to assist in developing one’s Low regret if the product turns out to be bad preferencesFlexibility for consumers who are certain about their Flexibility for consumers who are uncertain about preferences and tastes their preferences and tastes Higher chance that a consumer will find a product Higher chance that a consumer will find the best matching his/her ideal point product High Variety Less Assortment Initially provide a variety of choices to the consumerStrategy for Identify Consumer Behavior and Buying Preferences Amara Analyse the buying behavior of consumers to identify the fast selling and in demand products Bazaar Employ a combination of both the strategies Keep high assortment of fast selling products + lesser SKUs for a variety of products
Merchandising Strategy Bottom-up Assortment Planning: Inputs from POS data and store-SKU level demand data have to travel from the stores upwards to make an effective assortment plan. Understand Customer: Identify customer- buying patterns and shopping behaviour. Customer shopping basket and loyalty data can help in achieving this target. Personalized offers and Coupons: Make “The right offer to the right customer” e.g. offer on a baby shampoo for a young mother, dog food discounts for pet owners or on organic food for a health conscious person
Merchandising Strategy Assortment Localization: Use a variety of localization strategies to give shoppers the feeling that a store is “their” store and that it understands their specific needs closely. Cross-channel Synergies in Merchandising : There has to be a cross-channel uniformity between the merchandise across channels. Price Optimization: In some segments like grocery retail where price elasticity is high, even a margin percentage difference in pricing can lead to major difference in sales volumes.
Proposed Layout Assumption: Amara Bazaar will be spread across two floors. The Ground floor is for groceries and related items as it will be easy for customers to take heavy loads of grocery to the parking area. Dairy and Bakery complementary goods Ground Floor Grocery high traffic and frozen foods high margin Natural foods high demand and frozen foods high margin Toys to attract children and children based purchases ATM to promote express counters and outside people Cappuccino bar and indoor/outdoor eating area for mobile queue Impulse items near queue space to increase more impulse buying
Proposed LayoutThe first floor is for clothes, electronics, apparels, personal groomingitems, furniture and home linen products First Floor Flexibility in layout Allowance for browsing and wandering freely Increased impulse purchases Visual appeal Clearance items for more impulse buying Changing rooms near apparels for
Manpower and Shift PlanOrganizational Chart Store manager Floor manager Inventory Procurement Manpower IT Manager manager manager Cashier Front end job – Back end job Multi Tasking – Customer – Able to perform Supervisor interacting Supply chain both activities management front and back Customer Security staff end jobsservice associatesCleaning staff Workers for unpacking Manpower Requirement Matrix Weekdays 10 AM – 6 Weekdays 4 PM – Weekends 10 AM – Weekends 4 PM – PM 12 PM 6 PM 12 PM (Less Customers) (High Customers) (High Customers) (Highest Customers) Customer Low High Medium High interacting Activities Supply chain High Low High Medium management Multi Low Medium High High Tasking
Manpower RequirementFront end job: Customer Back end job – Supply Multi Taskinginteracting chain management (28) (25)Activities ( 97) • Inventory manager : 5• Store manager : 2 • IT executives : 3 •Multitaskers: 25• Admin. & commercial staff : 5 • Procurement manager : 5• Supervisor : 5 • Workers for unpacking : 15• Customer service associates : 50• Cashier : 15• Security staff (including parking):10 Total no of employees: 150• Cleaning staff : 10
Queuing System Multiple Queue Single Queue Multiple Single Queue Single Multiple Server Server Server Advantages Advantages Advantages ->Fairness – Supply of ->Fairness – Supply of->Possible to segment service provided to service provided tocustomers based on customer who queued customer who queuedservice needs first first->Space available is ->Reduces possibilityequally distributed of customers abandoning the line Disadvantages Disadvantages Disadvantages ->Normally the->Person arriving earlier length of the queue ->Large waiting time forfor billing runs the risk of is larger. So people consumersbeing serviced after theperson arriving later. perceive it will take more time
Example comparing MQMS andSQMSMultiple Queue Single QueueMultiple Server Multiple Server Service Service Service Service Service Service Time = Time = Time = Time = Time = Time = 3min 4min 3min 3min 4min 3min Counter 1 Counter 2 Counter 3 Counter 1 Counter 2 Counter 3 Cust 1 Cust 2 Cust 3 Cust 1 Cust 2 Cust 3 3 min 4 min 3 min Time takenTime taken 3 min 4 min 3 min Cust 4 Cust 6 Cust 5 Cust 4 Cust 5 Cust 6 3 min 4 min 3 min Time takenTime taken 3 min 4 min 3 min Cust 7 Cust 9 Cust 8 Cust 7 Cust 8 Cust 9 3 min 4 min 3 min Time takenTime taken 3 min 4 min 3 min Cust 10 Cust 11 3 min 3 min Time taken Cust 10 Cust 11 Cust 12 Cust 12Time taken 3 min 4 min 3 min 3 min Time takenTotal time 15 min 12 min 12 min Total time 12 min 16 min 12 min taken taken
Proposed Queuing System forAmara BazaarSingle Queue Multiple Server model should be used as it provides the followingadvantages -:• The total processing time for all customers is lesser• Customers are serviced in the order in which they arrive• The average waiting time as well as the variance in average waiting time is lesser• Separate queues can be maintained for Express counters ( for less than 10 items)• Merchandise displays along the single queue provides an opportunity to capture a shoppers impulse purchase earlier in the queue• Queue busting processes – Hand held scanners and Mobile Queue
Strategy for Amara Bazaarto be aNational brand