Competition Track project ( Max Retail )


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Competition Track project ( Max Retail )

  1. 1. “Competition Track” For Competitive AdvantageA Case Study on MAX Retail Division(A division of Lifestyle International (P) Ltd)Submitted in partial fulfillment of PGDMPGDM BATCH 2010-12 Submitted By Akash Kumar Jaiswal 1
  2. 2. DeclarationI AKASH KUMAR JAISWAL hereby declare that the project titled“A CASE STUDY ON MAX RETAIL COMPETITIONTRACK “is an original work carriedout under the guidance of PROF.B.JAYAKAR.The report submitted is a bonafide work of my own efforts and has not been submittedto any institute or published before.Signature of the student(AKASH KUMAR JAISWAL)Date:Place: 2
  3. 3. Certificate from the organization 3
  4. 4. Faculty Guide CertificateI Prof. B. JAYAKAR certify Mr. AKASH KUMAR JAISWAL, that thework done and theTraining undertaken by him is genuine to the best of myknowledge and acceptable.SignatureDate-Place- 4
  5. 5. AcknowledgementI owe a great many thanks to a great many people who helped and supported meduring the writing of this book.My deepest thanks to Prof. B. JAYKAR, VISHWA VISHWANI INSTITUTE OFSYSTEMS AND MANAGEMENT, HYDERABADthe Guide of the project for guidingand correcting various documents of mine with attention and care. He has taken pain togo through the project and make necessary correction as and when needed.I express my thanks to theDR. SABYASACHI RATHDIRECTOR ACADEMICS,VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT, HYDERABAD,for extending his support.My deep sense of gratitude to Mr. ANUP RAMTEKE (REGIONAL MARKETINGEXECUTIVE) & MR. K. DURGA PRASAD (AREA HR- AP REGION), MAX RETAILDIVISIONfor support and guidance.Thanks and appreciation to the helpful people at MAX RETAIL DIVISIONHYDERABAD, for their support.I would also thank my Institution and my faculty members without whomthis projectwould have been a distant reality.I also extend my heartfelt thanks to my family and well-wishers.(SIGNATURE)AKASH KUMAR JAISWALRegd. No. 6052PGDM 2010-12VVISMDATE- 20-6-2011PLACE- Hyderabad 5
  6. 6. INDEXChapter. Content PageNo. No.Chapter 1 Introduction 7-10Chapter 2 Industry Profile 11-28 Company Profile 29-46 Literature Review 47-48Chapter 3 Research 49-67 methodologyChapter 4 Data collection 70-85 Analysis&InterpretationChapter 5 Findings 86-89 Recommendations 89 Extra initiative 91-92 Conclusions 93-94bibliography Books/ Articles 95-97 referred Websites referredAnnexure Questionnaire 98-99 6
  7. 7. CHAPTER 1Introduction 7
  8. 8. INTRODUCTION Max is a fashion and footwear retailer in the Value segment. Max retails its own label clothing for men, women and children, as well as footwear and house ware. Max is opening around 100 stores across India, is a division of Lifestyle International Pvt Ltd., which is a part of US $ 1 billion Landmark Group. Landmark group is one of the largest retailers in the Middle East with over 500 stores across 8 countries, directly employing 10,000 people. We have already opened stores in Indore, Ahmedabad, Bangalore, Delhi-Rajouri Garden, Agra, Hyderabad, Lucknow, Mumbai Noida and Delhi - Laxminagar. A good shopping experience and a great value at Max translate into making customers „Look good and Feel good‟ to the maximumThe topic i.e. Competition Track, is all about knowing the competitors of MAX retail in alldimensions.With competitor tracking, we can identify competitors and analyze their sales strategies,their products, and what contracts they win. This functionality includes adding andmaintaining competitor records, and storing competitor documents.Competitor tracking provides the means to disperse competition information to everyonethat deals with an opportunity, so that they can compete in the most effective waypossible to close the sale and maintain the relationship.Competitor tracking helps us to compare your business unit to the competition, includingopportunities lost to and won against competitors.Competitor: Another company who offers competing products and services.Each competitor record can contain detailed information about the competitor, includinga company profile, a SWOT analysis (Strengths, Weaknesses, Opportunities, andThreats), and any relevant sales materials and presentations. In addition, competitorarticles can contain links to relevant information in the marketing encyclopedia.One or many competitors can be associated with any opportunity. By using thisassociation, salespeople give management the ability to track their overall win/lossrecord versus specific competitors, as well as to do further analysis regarding the causeof losses and other outcomes. 8
  9. 9. In this we have to keep track on all the activities related to marketing. Some of therelated activities which I have tracked in my project are given below- 1) Sales figure 2) Promotional events 3) Products and availability 4) Walk ins 5) Area of the stores 6) CRM 7) Current offers 8) SWOT analysis of each competitor. 9) Advantages and disadvantages of various competitors stores in HyderabadIt is said that before looking others or track others we should be clear about our ownprofile. We should be very clear about our marketing strategy and all the aboveactivities mentioned above and then understand the competitors and then analyses ourstatus, where we stand in front of our competitors in all the field of marketing and thenrectify our strategy and then formulate new and the best strategy we can develop sothat we become the zenith in that particular field.We have to analyze the marketing mix i.e. product, price, place & promotion off all thecompetitors separately.We also need to know about the marketing strategy of different competitors. Some ofthe strategy which should be kept in mind are- 1) Channel strategy 2) Product strategy 3) Pricing strategy 4) Advertising strategy 9
  10. 10. Methodology adopted during the Project workFirst of all our research topic was selected. The research topic being “A case study onMax retail Competitor‟s Track”Objective of research- To identify the promotion approach and product image in market. To know the offers to customer and competitor‟s offer given to customer. To know the competitors advantages and disadvantages. To know the competitive status in market. To find out advantages and disadvantages of Max Retail.Extensive literature Survey-The yearly Journals and manuals & project reports provide by our institute were studied.Lots of valuable information regarding real estate industry was collected throughInternet and necessary information regarding company through website of theorganization“Systematic and scientific method of collecting new information calledas researchmethodology.” the research which is doing is an analytical as well as quantitative type ofresearch.DATA COLLECTIONPrimary data: Data which is collected on our own is called primary data.· Personal interaction with company guide.· Discussion with other officials.· Group discussion.· Company‟s policies and circulars.· Questionnaires, Surveys and suggestionsSecondary data: Already existing data is called secondary data. It has been collectedby the following methods:· Company‟s website.· Articles in company‟s internal newsletters/periodicals.· Others sources. 10
  11. 11. Chapter 2Remarkable World of Retail 11
  12. 12. Retail Industry ProfileRetailing including Retail, according to Concise Oxford English Dictionary, is "the sale of all activitiesinvolved in selling goods to the public for use or consumption rather than for resale."goods or services World over, the retail segment has performed exceptionally since itsdirectly to the final consumers for inception in the 20th century. Sample these facts: personal, non- business use  Retail is currently the biggest industry in the world with sales of $7.2 trillion Any organization selling to final  Every 10th billionaire in the world is a retailer. consumers-  25 of the top 50 Fortune 500 companies are in retail. whether it is a manufacture, whole seller, or The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers like the traditional familyretailer – is doing run stores and corner stores. retailing. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 9-10 per cent by the yearConsumers today 2010 bringing in a huge opportunity for prospective new players. can shop for The sector is the largest source of employment after agriculture, and hasgoods & services deep penetration into rural India generating more than 10 per cent ofin a wide variety of India‟s GDP. retail Org. Thebest- known type of retail is the Department store. 12
  13. 13. Modern retail formats have mushroomed in metros and mini-metros, in the last fewyears modern retail has also established its presence in the second rung cities. Thus,exposing the residents of these cities to shopping options, they have never experiencedbefore. It has been forecasted that the share of modern retail will increase from 2 percent currently, to about 15-20 per cent over the next decade.To begin with, retailers today will have to support the large retail infrastructure interms of Malls and Superstores that are being created.The challenge for leading retailers shall therefore shift from diverting demand tocreating demand.With all the modern stores offering convenience in terms of an assortment of products,ambience, service and innovative products, the paradigm shall shift from competing withthe kirana stores to an in-house demand creation. Relevant experiences from consumergoods companies, which have successfully crafted an explosion in demand in theirsectors, through innovation, consumer driven strategies, will be head runner.Times are changing. With the GDP at an all-time high and income levels shootingthrough the roof, the average Indian consumer has never had it so good. The propensityto consume has reached peaks that had never been scaled before. Credit cards areflashed with disdain and shopping baskets are getting bigger all the time. Here aresome factors that indicate the potential of retail in India: 13
  14. 14. Multichannel retailing is all about giving the customer a choice of which shoppingchannel he or she wishes to purchase products through. The most popular shoppingchannels include the stores, Internet and catalogues and telemarked (including mobileshopping).Retailers must provide a seamless multichannel experience for their customers. Forthis, they become the most valuable consumers within a retailers customer base.Multichannel retailing needs to be adopted: Grow market share Increase customer base Offer convenience Achieve cost reductions through economies of scale, supply chain efficiencies, and logistics Improve customer analytics Open new revenue streams by cross-sell & sell ups Reduce cycle time between order and delivery Lower fulfillment cost &Improve demand planningHowever, going multichannel, the retailer should not ignore the critical part: thecustomer. Customers have become more sophisticated and expect a retailer torecognize them. 14
  15. 15. 15
  16. 16. Top 10 Retailers World WideRetailer Home CountryWal-Mart Stores USACarrefour Group FranceThe Home Depot, Inc USAThe Kroger Co. USARoyal Ahold NetherlandsMetro AG GermanyTarget Corporation USAAlbertson’s, Inc. USASears, Roebuck and Co. USAKmart Corporation USA 16
  17. 17. Country/Region Share of Organized RetailingUSA 80%Western 70%EuropeMalaysia 50%Thailand 50%Brazil 40%Argentina 40%Phillippines 35%Indonesia 25%South Korea 15%China 10%THEORY OF RETAIL- ENVIRONMENTAL, CYCLIC, CONFLICT • Theories of retail development can broadly be classified as: 1. Environmental: where a change in retail is attributed to the change in the environment in which the retailers operate. 2. Cyclic- where change follows a pattern and phase can have definite identifiable attributes associated with them. 3. Conflict: where the competition or conflict between two opposite types of retailers, leads to a new format being developed. 17
  18. 18. The Concept of Life Cycle in Retail • Retail organization passes through identifiable stages of innovation, development, maturity and decline. This is commonly termed as the “Retail Life Cycle” • The retail life cycle is a theory about the changes through time of the retailing outlets A. Innovation: • A new organization is born; it improves the convenience or creates other advantages for the final customers, which differ sharply from those offered by other retailers. This is the stage of Innovation. • In Innovation organization have very few competitors. • Because it is new concept, the rate of growth is fairly rapid and the management fine-tunes its strategy through experimentation.At this stage the level of profitability re moderate and this stage can last up to five years,depends on the organization B. Accelerated Growth: • Theretail organization faces rapid increase in sales. • As organization moves to stage two of growth, which is the stage of development, a few competitors emerge. • As company has been in the market for a while it is now in a position to pre-empt the market by establishing a position of leadership. • At this stage since growth is imperative, the investment levels also high as is the profitability. C. Maturity: • The organizational this stages still grows, but competitive pressures are felt acutely from newer forms of retailing that tend to arise. • Thus growth rate tends to decreases. • Gradually as marketers become more competitive and direct competition increases, the rate of growth slows down and profits also start declining. 18
  19. 19. • This is the time when the retail organization needs to rethink its strategy and reposition itself in the market.• A change may occur not only in the format but also in the merchandise mix offered.D. Decline:• The retail organization loses its competitive edge and there is a decline.• At this stage organization needs to decide is it is still going to continue in the market.• The rate of growth is negative, profitability declines further and overheads are high. 19
  20. 20. Evolution of Indian Retail • Traditional Rural Retail Fairs • Traditional Family Run Convenience Stores Traditional Rural Retail FairsTraditional rural retail fairs are a very big attraction to foreign tourists. We have thePushkar fair in Rajasthan which brings in a lot of revenue both from domestic buyersand buyers from abroad. In the Pushkar fair livestock like camels, horses, cows, goats,and sheep are sold as well as bought. A range of exotic items are also available. Thetraditional items here are handmade jewelry and other colorful memorabilia ofRajasthan.Traditional rural retail fairs in India deal in a good number of handcrafts items which arementioned below: • Hand painted wooden chest drawers • Wooden wall brackets • Embossed wooden table • Hand painted chairs in chowki • Wooden corner stand • Wooden Hand painted table • Embossed wooden chairs • Brown wooden stool • Camel bone Jewelry • Metal jewelry • Snake charmer puppets • Handmade candles 20
  21. 21. Traditional Family Run Convenience StoresTraditional family run convenience stores are too well established in India than to bewiped out and besides there is uniqueness in the traditional items that represent thesub-continent. The retail stores in India are essentially dominated by the unorganizedsector or traditional stores. Infact the traditional stores have taken up 98 percent of theIndian retail market. Now stores run by families are primarily food based and the set-upis as Kirana or the corner grocer stores. Basically they provide high service with lowprices. If the stores are not food based then the type of retail items available are local innature.The traditional family run convenience stores can take pride in the fact that the Kirana isthe most common outlet forms for the consumers. The tough competition forconvenience stores is coming from organized retail stores dealing in food items, like: Apna Bazaar Canteen stores Food World Subhiksha Food Bazaar Convenience Stores are open for long hours and is one of the formats of the Indian retail stores that cater to basic needs of the consumer. A good example of such would be Convenio. These stores are found in both residential as well as commercial markets. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. The benefits of family run convenience stores is that they give importance to: Personal touch Facilities of credit 21
  22. 22. Key Strategic Factors in Retailing 22
  23. 23. The key to success is identifying a superior value-promise and who is in a betterposition to do it than retailers? Retailers are the closest to the point of purchase andhave access to a wealth of information on consumer shopping behavior. Retailers havesome unique advantages for managing brands such as continuous and actionabledialogue with consumers, control over brand presentation at point-of-sale, control overshopping environment, display location/adjacencies, and signage. And they have usedthis advantage with tremendous success.The 3 stages of evolution of the trade channel are shown in the exhibit below:Extended Limited Direct Manufacture Manufacture Manufacture / Retailer Depo/CNF Depo/CNF Distributor Retailer Retailer Shopper Shopper Shopper 23
  24. 24. As seen, the role of the intermediary is being diminished gradually, which has obviousimplication of backlash of the trade channel upwards towards the suppliers. This is moresevere in countries such as India, where the channel economics in favors of themiddlemen is still strong enough given the fragmentation of the retail sector. Thereforewhen Food World, the largest grocer inIndia has a “direct supply” contract with over 20% of its key suppliers; it gives rise toconflict of interest with the distribution infrastructure that suppliers have painstakinglybuilt over the years.Thus companies like HLL have evolved a distinct distribution channel altogether (called“Modern Trade”) to service the needs of such large grocers. Even the mom and popstores (known as kirana shops) are affected due to this “unfair” back-end advantageextended by the supplier to its leading accounts (the emerging supermarket chains).The strategies adopted by the retailer to compete with branded goods are illustrated bythe following diagram. Branding the store and following a private label strategy is thekey strategy which helps the retailer to compete with branded products. 24
  25. 25. FORMAL RETAILING SECTOR 1. Typically large retailers 2. Greater enforcement of taxation mechanisms 3. High level of labor usage monitoring 25
  26. 26. CATEGORIIES OF IINDIIAN RETAIILCATEGOR ES OF ND AN RETA L 1. Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc. 26
  27. 27. 2. Dedicated brand outlets Nike, Reebok, Zodiac etc 3. Multi-brand outlets Vijay Sales, Viveksetc 4. Manufacturers/ Exporters Pantaloons, Bata, WeekenderClassifying Indian retail (A) Modern Format retailers 1) Supermarkets (Foodworld) 2) Hypermarkets (Big Bazaar) 3) Department Stores (S Stop) 4) Specialty Chains (Ikea) 5) Company Owned Company Operated (B) Traditional Format Retailers 1) Kiranas: Traditional Mom and Pop Stores 2) Kiosks 27
  28. 28. 3) Street Markets 4) Exclusive /Multiple Brand Outlets (C) C) Large Indian retailersHypermarket 1) Big Bazaar 2) Giants 3) Shoprite 4) StarII Department store 1) Lifestyle 2) Pantaloons 3) Piramyds 4) Shoppers Stop 5) TrentIII Entertainment 1) Fame Adlabs 2) Fun Republic 3) Inox 4) PVR 28
  29. 29. Company ProfileLandmark Group-The Landmark Group was started thirty years ago, with the mission of becoming one ofthe foremost retailers in the Middle East. This, by providing customers with a wide rangeof high quality products at exceptional value. From a single children‟s store set up in1973, in Bahrain, the Group has expanded exponentially and currently operates over500 stores, several concepts & business interests. The Landmark Group today has awidespread presence of over 5 million square feet and a footprint that spans across theMiddle East continent and India. The highlights of the Landmark Group are its product & concept innovation. The entireretail experience revolves around its “Concept” stores, which have been designed andengineered to suit evolving customer needs and Lifestyles. The six major concepts ofLandmark Group are Baby shop, Splash, Shoe Mart, Home Centre, Lifestyle& Max.Apart from these, the group also has „Citymax‟ catering to hospitality sector and „MaxHypermarket‟ under its umbrella.Key Facts35 Years of retail experience.Turnover in excess of US$2.5bn.Total retail space over 10 million sq ft.Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of SaudiArabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt.Operates over 825 stores.Employs 24,000 personnel. 29
  30. 30. Lifestyle International (P) Ltd. incorporated in India in 1999 brings together five conceptsunder one roof – Apparel, Footwear, Kids wear, Health & Beauty, offering a convenientone stop shop for customers. Positioned as a young trendy, young colorful and vibrantstore, Lifestyle offers consumers not just the ease of shopping but also provides for anenjoyable shopping experience. Present across major metros in India, Lifestyle israpidly expanding its footprint in India. Currently there are 15 Lifestyle stores in thecountry.In the year 2005, Lifestyle launched its first specialized, stand-alone home improvementstore – „Home Centre‟ by Lifestyle. Home Centre is a one stop destination for furniture,home décor and soft furnishing that truly represents style, comfort and individuality. Thestores use unique „concept‟ rooms as they display model, to give consumers a practicalidea of how each piece of furniture would look in a particular room.SPAR is the World‟s Largest Food Retail Chain with more than 13600 stores across 33countries and serves over 10 million consumers worldwide everyday.SPAR provides a truly international shopping experience to the Indian consumer bydelivering exceptional service, wide range of products, superior quality & amazingvalue, there by enabling the consumer to have a better quality of life. SPAR is a onestop shopping destination as it meets all the daily needs of a consumer by providinggrocery, fruits & vegetables, meat & fish, wine & spirits, kitchenware, electronics,apparel, health & beauty, furniture & much more, under one roof. SPAR was brought toIndia by Max Hypermarket India Pvt. Ltd. in the year 2007. 30
  31. 31. "bossini" is a widely recognized casual wear brand renowned for its comfortable, easyto mix-and-match, colorful and energetic style, bossini offers a full range of good valuefor money casual wear apparel products, including ladies, mens & kids wear which aredesigned to fit customer needsStarting with just in 1993, the fashion house, Splash – a part of the Dubai – basedLandmark Group, is now a leading retailer in the GCC with headquarters in Dubai and aretail network of 80 Splash stores and 66brand boutiques around the region. Splashshowcases popular in-house collections for men & women such as Ms, Nexus, Maxim,Retro, ZYNC & Scarlet, with international brands such as Maui and Sons and Yishion.Splash is also the exclusive licensee for Lee Cooper and Kappa in the Middle East, aswell as the franchisee for Bossini in Kuwait, Bahrain & Saudi Arabia.Max is a shopping destination for the entire family with a wide range of over 60000options for men, women and children besides footwear and accessories. The brandoffers contemporary fashion apparel with great quality at affordable prices. Launched inthe UAE in 2004, the brand today is the largest value fashion chain in the Middle East.This internationally successful chain was launched in India in 2006 and is wellpositioned to become the leading “value fashion” brand in the country. 31
  32. 32. „The Yellow Chilli‟ is a Fine Dine restaurant, the Brand is endorsed by celebrity ChefSanjeevKapoor. Chef SanjeevKapoor‟s inspiration for his recipes has come from themelting pot of local flavors across India and the world. Experience fine dining andauthentic Indian food that traces back to its origin at „The Yellow Chilli‟.Gloria Jean‟s Coffees is Australia‟s most loved coffee chain. With more than 900 outletsin over 35 countries, Gloria Jeans Coffees is a leading specialty coffee retailer and oneof the fastest growing franchise organization‟s in the world.Gloria Jeans Coffees provides consumers with a wide range of specialty coffeeincluding estate, origins and delicious flavored coffees and a complete menu ofespresso-based beverages such as lattes, cappuccinos, chillers, cocoas and gourmetteas. We also offer a selection of coffee accessories, quality merchandise and giftpacks.At Gloria Jeans Coffees, we are committed to delivering the ultimate coffeeexperience.Polynation - the food court is based on different themes. The décor is detailed toperfection. The lighting is synchronized with the ambience and different seating layouts.Polynation breaks all the rules by replacing the typical food court seating with properrestaurant like seating. Polynation- the Food court, offers a bespoke mix of brandscatering to the city‟s palette. The brands are intelligently chosen from distinct foodconcepts and other popular international and local express brands to complete theoverall family eating experience.Providing wholesome experience to all, Polynation- the food court will be a destinationof choice and not a destination by chance. 32
  33. 33. Max, the largest value fashion retailer in the Middle East offers fashion clothing,footwear, accessories and household products at amazing value, all under one roof.Launched in UAE in May 2004, Max is today the largest value fashion retail chain in theMiddle East. Max caters to the mid-market section of the population. With 114 storesacross UAE, KSA, Jordan, Kuwait, Bahrain, Qatar, Oman, Turkey, Egypt, Yemen &India, MAX plans to expand its network in more potential markets within the Middle East& beyond. With stores that typically measures between 18,000 to 30,000 sq. ft., Maxretails private label clothing for men, women and children as well as footwear andhome. A good shopping experience with fashionable products at great value is anassurance that translates into making customers "Look good, Feel good" with Max.Key FactsEstablished in 2004.75 stores spread across 8 countries.The Largest Value Fashion Chain in the Middle EastProducts designed and developed exclusively for Max, by a large team ofin-house designers and buyers.Key FactsYear of Inception - 2004Origin - UAEStores - 114Retail Space-2.15 million sq. ft. 33
  34. 34. In India stores are located in the following cities:-VISSION AND MISSIONTo create a truly global brand that provides growth opportunities for the company and itsemployees, whilst achieving its goal of becoming the number one value fashion retaileracross the Middle East and India.”MISSION STATEMENT VALUES  Be a market leader in the field of value retailing.  Provide fashionable products at affordable prices.  Be innovative, cost effective and globally competitive.  Exceed our customer‟s expectations. 34
  35. 35. CATEGORY OF RETAILING  Max is a fashion apparel retailing store, it provides “fashion value retailing”.  Max retails private label clothing for men, women and children as well as footwear and home.  Max store promises to be a one-stop shop for latest fashion buys at pocket- friendly prices ranging between Rs. 199-599.A good shopping experience with fashionable products at great value is an assurancethat translates into making customers "Look good, Feel good" with Max.Sales performance- Middle East retail chain Max, part of $ 3.8 Billion Landmark group Expects revenue from Indian operations to double to breach the Rs 400 crore mark by March 2011 It plans to take its total store count to 53 by March 2011, by which time it is targeting a turnover of Rs 430 crore. Max gets one-fourth of its revenue from children wear, he said, noting that it is the only retail chain to thrive on in-house designs, which are sourced from Dubai. It has 120 vendors across India. Max has an average billing of Rs 1,000.Indian turnover accounts for around 9-10 per cent of Max Retail‟s overall revenue, in thenext 3-4 years we can touch 15-18 per cent share from Indian operations alone,” 35
  36. 36. Detailed Organizational ChartTOP MANAGEMENT  Chairman Landmark Group – MickyJagtiani.  CEO Max - HariharanRamanathan  Executive Director - Vasanthkumar  Chief Operating Officer - C.S.Shekar  Head Designer - AmakshiKaul 36
  37. 37. Historical back ground of the Company-  May 2004 marked the beginning of an exciting journey for max. With the launch of the first Max store in United Arab Emirates  By the end of 2009, Max has a network of 100 stores across the Middle East and new markets.  Max currently operates in UAE, Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar, Oman, Turkey, Egypt, Yemen and India.  Operating in India since 2007  Max- a division of Lifestyle International (P) Ltd & a part of the Dubai based Landmark Group was launched in early 2004 in the Middle East. Over the past 5 years it has grown to become the largest value fashion chain in the region. It currently has over 115 stores across the Middle East, Egypt, India, Turkey, Yemen and Palestine. In India, Max has 49 stores across 19 cities covering all metros & tier 2 cities. It has extensive plans to double the stores to 56 stores by 2010-11.  MAX has pioneered the concept of value fashion retailing in the India thereby offering the value conscious customer a choice of variety without compromising on the quality. It offers merchandise which is fashionable & predominantly priced in the range of Rs. 199 to Rs. 599, making it quite affordable. Max sources its merchandise both from India as well as overseas thereby offering contemporary styles inspired by the latest fashion trends across the globe.Future plans of the Company-In Hyderabad, it is going to open 1 new outlet- One in AS Rao Nagar 37
  38. 38. INNOVATIVE RETAIL PRACTICES  LOYALTY PROGRAMS: In keeping with the Group‟s tradition of making every shopping experience even more rewarding and memorable, Landmark Group‟s Loyalty program allows members, to enjoy exclusive benefits and privileges such as reward points and exciting offers. They offer two loyalty cards.  THE INNER CIRCLE  SHUKRAN PRODUCT LINE MAXCLOTHINGS HOME DECORS FOOTWEAR ACCESSORIES 38
  46. 46. Major Competitors- 46
  47. 47. Literature ReviewArticle- 1GEAR UP FOR COMPETITIONAuthor-Manish Chaturvedi, vice president – Indirect Sales, CitiXsys Technologies 1) Indian retailers need to undergo a paradigm shift to align to the current economic reality, escalating capital investments in inventory and increased customer service demands. 2) Such a shift can come only when retailers embrace a fully integrated enterprise-wide application set.Article- 2Competing With Big Box StoresTips for Retail CompetitionAuthor- Shari Waters, Guide 1) It tells that people purchase a higher percentage of their merchandise from the mass merchandisers and consequently a lower percentage from local merchants. 2) The company should emphasize the originality of your inventory as compared to the items offered by the chain store. 47
  48. 48. Article- 3Market Structure and Competition in the Retail Discount IndustryAuthor: TING ZHU, VISHAL SINGH, and MARK D. MANUSZAK 1) The authors examine competition among the three major firms in the retail discount industry—Wal-Mart, Kmart, and Target. 2) They find that Wal-Mart has a large negative effect on the store- level revenues of its rivals and that Target has a somewhat lesser effect, with Kmart trailing behind.Article- 4Retail Industry Information: Overview of Facts, Research, Data & Trivia 2011Author- Barbara Farfan, Guide 1) In this article the author has mainly focused on US Retail Industry and says that an estimated two-thirds of the U.S. gross domestic product (GDP) comes from retail consumption. 2) This article speaks about two type of retail industries- a) Store Retailers b) Non-Store Retailers 48
  49. 49. Chapter 3Research Methodology 49
  50. 50. “Systematic and scientific method of collecting new information called asresearch methodology.” the research which is doing is an analytical as well asquantitative type of research.SampleIn statistics, a sample is a subset of a population.Typically, the population is very large, making a census or a complete enumeration ofall the values in the population impractical or impossible.The sample represents a subset of manageable size. Samples are collected andstatistics are calculated from the samples so that one can make inferences orextrapolations from the sample to the population.This process of collecting information from a sample is referred to as sampling.The best way to avoid a biased or unrepresentative sample is to select a randomsample, also known as a probability sample.A random sample is defined as a sample where each individual member of thepopulation has a known, non-zero chance of being selected as part of the sample. Several types of random samples are simple random samples, systematic samples,stratified random samples, and cluster random samples.A sample that is not random is called a nonrandom sample or a nonprobabilitysample.Some examples of nonrandom samples are convenience samples, judgment samples,purposive samples, quota samples, snowball samples, and quadrature nodes in quasi-Monte Carlo methods. 50
  51. 51. OBJECTIVES OF STUDY To identify the promotion approach and product image in market. To know the offers to customer and competitor‟s offer given to customer. To know the competitors advantages and disadvantages. To know the competitive status in market. To find out advantages and disadvantages of Max Retail.Sampling Design Sampling unit Respondents from Malls Size of sample 100 respondents Sample Method Random Sampling Types of questionnaire Close endedResearch MethodType of DataData type collected for analysis is PRIMARY i.e. data has been observed and recordedby the researchers for the first time to their knowledge.Data collected through journals, newspapers & internet is SECONDARY type. 51
  52. 52. Method of data collectionThis study is a research which utilizes interrogation and observation method for datacollection. Secondary data was obtained from intensive analysis & observation. Theprimary data are those, which are collected afresh and for the first time, and thushappen to be original in character. The secondary data, on the other hand, are thosewhich have already been collected by someone else and which have already beenpassed through the statistical process. Method employed to collect data isQuestionnaire. This is a simple survey conducted by filling in questionnaire from thepeople who visit malls.Collection of Primary Data Personal interaction with company guide. Discussion with other officials. Group discussion. Company’s policies and circulars. Questionnaires, Surveys and suggestions 52
  53. 53. Primary Data collected through Direct Observation Method forCompetitor TrackingCompetitors SWOT Analysis 1) Reliance Trend • Financially sound • Lack of differentiation in • Retail location the product line • Fashion oriented • Acute lack of awareness about the store • Signed with youth icon for promotion • Visual merchandising • CRM • Lack of national and international brands • Quality of merchandise is low STRENGTH WEEKNESS OPPORTUNITY THREAT • It can target II and • Negligible awareness III tier cities of • me-too image to country company • Fresh stock at low • Cut throat price- competition differentiating from others competitors 53
  54. 54. 2) Globus SWOT Analysis• Quality and price • Experience and well• Local distribution educated sales staff network • Staff are not result• Stylish and good oriented-just work looking oriented merchandise • Swapping is very• Healthy supply slow chain STRENGTH WEAKNESS OPPORTUNITY THREAT• Tapping new • Increasing no.of segments MNCs• Rural areas • Low price strategy• Mai include shoes • Cope up with new and sports wear technologies 54
  55. 55. 3) Westside SWOT Analysis• Growing at the • Not much product faster pace range for middle• Brand name of class TATA‟s. • Lack of• Good customer differentiation base. • Poor inventory• Apparels are turns and stock cheaper availability• Attractive promotional STRENGTH WEAKNESS schemes OPPERTUNITY THREATS• Huge untapped • Competition from market organized retail• Urbanization players • Competition from local retailers. 55
  56. 56. 4) Pantaloons SWOT Analysis• Managing • Hiring and Purchase Order. training of• Ease of usage employees• Analysis of complex data • Expensive• Generate Reports• Supports Vendors. STRENGTH WEAKNESS OPPORTUNITY THREATS• Increase the • Retail competitors footfalls with • Price promotional • Promotional events activities.• New Avenues for opening of outlets. 56
  57. 57. Observed Merits and Demerits of Competitors outlet in HyderabadDate- 11-05-2011,Retail outlet- Reliance Trend, Majahab Tank &BegumpetMy Observation- 1) External environment- At the entry of reliance trend, it is displaying an Arc shaped Hording of the latest offer event, i.e., PANT & JEANS MELA (spend Rs 1999 and get free Gift Coupons worth 1000). Parking area is to be concern (very limited) Window merchandising is good but displayed only men‟s wear. Bags keeping place was very small ( around 20-30 bags) 2) Internal environment- The ambiance was really attractive and well organized. Ground floor is women‟s section and 1st Floor is men‟s section. Billing counter was only on the ground floor. Segmentation of merchandise was done properly (displaying the price range or any offers with the concern product type). Templates to guide the customer were to go for their needs was properly displayed and it was hanging on the roof. Visual merchandising was done properly on both the floor. 3) Women’s Section- Contains variety of apparels (suite, suite piece, jeans, tops, kids wear, sari, jewelries, inner wears etc. Women staffs were aged people. No brand wears. Only 2 trail room. Perfume collection was good. Products were mainly marketed by Reliance Trend Ltd. 57
  58. 58. 4) Men’s section- Contains branded apparels like INEXCESS, SCULLERS, PETER ENGLAND, JOHNPLAYER, OXEMBERG, LEVIS, KILLERS, JOCKEY. FIRST CLASS, TEAMSPIRIT, PERFORMAX were the reliance trends marketed brand. Apparels were displayed along with price and any offers. Separate place were given for the respective brands.5) Merits- Vide variety of collection which provides alternatives to customers. Membership Cards having policy of points making (1points per Rs 100 of purchase and can be used at any reliance outlets.) Location is superb. Customer service desk Effective use of visual merchandising. Alteration timing 20-30 minutes. Men‟s employees are more interactive to customers. Ambiance is felt soothing. Bathrooms were very clean and full of fragrance.6) Demerits- Parking area is limited. Bag keepings were also limited. Billing counters on ground floor and not in the men‟s section. No display for bathroom. Aged women in women‟s section. Knowledge gap is present between the employees. No customer service programs. We can gain the points in membership cards but cannot reimburse them in the reliance trends. 58
  59. 59. 13-05-2011Globus Retail Outlet- City Center Mall&Inorbit, HyderabadMerits- Location of store is very good and customer centric too. It had worked hard in Place parameter of Marketing Mix. It has targeted its segment (high class) and provides all the necessities of its customers. Ambiance is soothing. Proper signage utilization is done. Merchandise was very fashionable. Branded merchandise is high in numbers.Demerits- Target segment of customer is very limited. Visual merchandising is not done properly. The accessories are not so good and useless to the customer. Signage for the price of particular segment of the merchandise is not at all displayed. Staffs are untrained. They didn‟t bother what the customer wish to purchase. The transaction in billing process is time taking. No CSD in any of the store of the Globus. The Price of some of the merchandise is very high. Very Low Acquisition Power. 59
  60. 60. 16-05-2011Westside retail- Begumpet&Nampally, HyderabadMerits- Ambiance is really fantastic. It is very neat and clean and very perfect place for the family to shop. The staffs along with the Executives present in the stores are very helpful to the customer. They make the customers to decide as well as to make them buy the products very effectively. Everything in the store is made only for customers. CSD is very effective. The price of merchandise is affordable along with the quality of it. Accessories are very attractive and fashionable.Demerits- Stocks availability is less. As the stores are very big they do not have the blue print of the service. Footwear departments had less stock. Women staffs are less in numbers Very less offers and schemes. Customer membership is chargeable. 60
  61. 61. Date- 12-05-2011Retail outlet- PANTALOON, Begumpet.My observation-Merits - 1) Welcoming the customers was very good. Even the staff of baggage counter and the security guard welcomes the customer by saying good morning. 2) Membership card system was superb as it provided 5 % discount on every Friday and in the birthday month it will provide 50 % discount on your one transaction. 3) Vide variety of collections for both men‟s wear and women‟s wear. Latest trend is being followed. 4) Current offer which is going on is purchase Formal Shirts worth Rs. 2499 and gain Rs. 500 off. 5) CSD is effectively maintained. One of the lady employees came to the customer wished him and ask him for having a membership with the Pantaloons. 6) Ambiance is effectively appealing to the customer. 7) On an average 800 customers visit to the pantaloons per day.Demerits- 1) No parking area. Parking is just on the main road. 2) Knowledge gap is present between the employees in the women‟s section. 3) No billing counters in women‟s section. 4) In visual merchandising same type of products were displayed( the t-shirts of similar design of various size was displayed in large number) 5) In front Shoppers stop is present. 6) No food courts or no enjoyment source in the surrounding which attract the people. 7) No affordable offers for customers. 8) Kids section was just near the entry. 61
  62. 62. Competitor’s offers-Reliance Trends- Purchase for Rs. 1999 and get a gift coupon up to Rs. 1000. Valid from- 15 may to 19 june, 2011 Customer has to purchase for 1999 and they will get 2 gift coupons of 500. And then from 20th june to 10th july,2011and on next purchase of 2000 they will get flat discount of gift coupon. 62
  63. 63. Globus- In City Center Mall Up to 30% off on selected Merchandise. Valid up to 31st may In Inorbit, High Tech. Watch out offer- purchase for Rs. 1499 and get a watch worth Rs 499 for Rss 99. Validity- Not informedPantaloons- Sonekichidiya(SKC) offers- pantaloons is allowing to redeem all the points in the membership cards till 31st August, 2011. Validity- 1st may to 31st may, 2011 They are giving gifts like glass bowl set based on the points the customer have collected. 63
  64. 64. Walk-ins analysisRetails outlet Feb, 2011 March, 2011 April, 2011MAX 83018 79553 95490PANTALOONS 36500 28967 57700RELIANCE TREND 53783 51408 43550GLOBUS 58750 55500 57700 walk-ins 100000 90000 80000 70000 Axis Title 60000 50000 40000 30000 20000 10000 0 MAX PANTALOONS RELIANCE GLOBUS TREND Feb, 2011 83018 36500 53783 58750 March, 2011 79553 28967 51408 55500 April, 2011 95490 57700 43550 57700 64
  65. 65. SALES FIGURE (IN CRORES) ANALYSISRETAIL SALES IN Crs SALES IN Crs SALES IN Crs.OUTLETS ( FEB, 2011) (MARCH, 2011) (APRIL, 2011)MAX 3.01 3.68 4.41PANTALOONS 1.58 1.2 2.55RELIANCE TREND 2.97 2.59 2.14GLOBUS 1.54 1.09 1.13 4.41 3.68 5 2.55 2.14 2.59 4 3.01 2.97 1.13 3 1.2 1.09 1.58 1.54 2 1 0 MAX PANTALOONS RELIANCE TREND GLOBUS SALES IN Crs ( FEB, 2011) SALES IN Crs (MARCH, 2011) SALES IN Crs. (APRIL, 2011) 65
  66. 66. Secondary Data Collection of the Competitors1) Reliance Trends 66
  67. 67. 2) Globus Retail Company Profile• Launched in January 1998, Globus is part of the RajanRaheja group.• The company opened its first store at Indore in 1999, followed by the launch of its second store in Chennai (T-Nagar).• Soon to follow was another store in Chennai located in Adyar.• The flagship store in Mumbai opened on 1st November 2001 followed by a swanky new outlet in New Delhi in South Extension Part-2. 67
  68. 68. 3) Westside Retail Company Profile-• Style, affordable prices, quality these are the factors that have shaped Westside success story in the retail fashion stores business.• Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of Indias largest and fastest growing chains of retail stores.• These include Menswear, Women‟s wear, Kid‟s wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. 68
  69. 69. 4) Pantaloons Company Profile- Headquartered in Mumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000 people , and as of 2010. Industry Retailing Founded India Headquarters Mumbai Area served India Key people Kishore Biyani, (MD & CEO) Products Discount Stores Supercenters Revenue 6,019.00 crore (US$1.34 billion) Parents Future Group Website 69
  70. 70. ` Chapter 4 Data collection/ Analysis &Interpretation 70
  71. 71. Primary data collected through QuestionnaireSampling Design Sampling unit Respondents from Malls Size of sample 100 respondents Sample Method Random Sampling Types of questionnaire Close endedI have selected 11 questions for analysis of ranking of MAX Store withcomparison to its competitors. 1) How frequently you visit the retail stores? 2) Family income of the respondent- 3) Variety of product available in following retail stores- 4) Best price offered by the following stores- 5) Quality of product available in the following retail stores 6) Up-to-date style available in the following retail stores- 7) Best customer‟s service provided by the following retail stores- 8) Best display of merchandise by the following retail stores- 9) Awareness created by internet by the following retail stores- 10) Awareness level created by audio/visual media- 11) Awareness level created by print media- 71
  72. 72. Respondent profile • Sample size is 100 and out of that 67 are male& 33 are female respondent. 100% 33 33% 80% 60% 67 67% 40% 20% 0% Numbers Percentage Male Female • No. of Respondent Age wise Number of Respondent Age-wise 40 Numbers 20 0 18-20 Numbers 21-23 24-26 27-29 18-20 21-23 24-26 27-29 Numbers 21 27 38 14 72
  73. 73. 1) How frequently you visit the retail stores? Time Periods Response Fortnight 18 Monthly 43 Quarterly 26 Half Yearly 13 Yearly 0 How frequently you visit the stores? 0% 13% 18% fortnight 26% Monthly Quarterly Half Yearly 43% YearlyOn the basis of the above respondents the graph shows that out of 100 respondent43 visit retail stores monthly, i.e. 43% or maximum customers‟ visits retail storesmonthly. 73
  74. 74. 2) Family income of the respondent- Income Response 20000- 25000 37 25001- 30000 34 30001- 35000 19 Above 35001 10 Family income of the respondent 10% 37% 19% 20000- 25000 25001- 30000 34% 30001- 35000 Above 35001On the basis of the above respondents, the graph shows that out of 100 responses 37were having family income between Rs. 20000- Rs. 25000. Nearly 34% of the peoplevisiting malls have income ranging between Rs. 20000- Rs. 25000. 74
  75. 75. 3) Variety of product available in following retail stores- Stores Mean rankings Westside 2.02 Max 3.70 Pantaloons 3.08 Reliance 3.57 Globus 3.13 Variety of product 4 3 Ranks 2 1 0 Westside Max Pantaloons Reliance Globus Series 1 2.02 3.7 3.08 3.57 3.13On the basis of above respondent, the graph shows that Max have the best variety ofproduct with average Ranking 3.7 out of 5. 75
  76. 76. 4) Best price offered by the following stores- Stores Mean rankings Westside 2.33 Max 2.97 Pantaloons 3.22 Reliance 2.97 Globus 4.02 Best price 5 4 3 Ranks 2 1 0 Westside Max Pantaloons Reliance Globus On the basis of above respondent, the graph shows that the best price is given by Globus with ranking 4.02 out of 5 76
  77. 77. 5) Quality of product available in the following retail stores Stores Mean rankings Westside 2.88 Max 3.59 Pantaloons 3.56 Reliance 2.03 Globus 2.23 Quality of product 4 3 Ranks 2 1 0 Westside Max Pantaloons Reliance Globus Series 1 2.88 3.59 3.56 2.03 2.23On the basis of above respondent, the graph shows that the best quality of product isdelivered by Max with 3.59 ranks out of 5. 77
  78. 78. 6) Up-to-date style available in the following retail stores- Stores Mean rankings Westside 3.12 Max 2.41 Pantaloons 2.44 Reliance 2.02 Globus 4.06 Up-to-date style 5 4 Ranks 3 2 1 0 Westside Max Pantaloons Reliance Globus Series 1 3.12 2.41 2.44 2.02 4.06 On the basis of above respondent, the graph shows that best up to date style is delivered by Globus with ranking 4.06 out of 5. 78
  79. 79. 7) Best customer‟s service provided by the following retail stores Stores Mean rankings Westside 3.07 Max 3.40 Pantaloons 3.05 Reliance 3.02 Globus 2.27 Best customer’s service 3.5 3 2.5 Ranks 2 1.5 1 0.5 0 Westside Max Pantaloons Reliance Globus Series 1 3.07 3.4 3.05 3.02 2.27On the basis of the respondents, the graph shows that the best customer service isgiven By Max with ranking 3.4 out of 5. 79
  80. 80. 8) Best display of merchandise by the following retail stores- Stores Mean rankings Westside 2.65 Max 3.56 Pantaloons 3.27 Reliance 3.48 Globus 2.49 Best display of merchandise 4 3 Ranks 2 1 0 Westside Max Pantaloons Reliance Globus Series 1 2.65 3.56 3.27 3.48 2.49On the basis of the above respondents, the graph shows that the best display ofmerchandise is done by Max with 3.56 ranks out of 5 80
  81. 81. 9) Awareness created by internet by the following retail stores Stores Mean rankings Westside 3.4 Max 3.65 Pantaloons 3.7 Reliance 3.44 Globus 3.5 Awareness created by internet 3.7 3.6 Ranks 3.5 3.4 3.3 3.2 Westside Max Pantaloons Reliance Globus Series 1 3.4 3.65 3.7 3.44 3.5On the basis of the respondents, the above graph shows that the awareness createdthrough internet is done best by Pantaloons with mean ranks 3.77 81
  82. 82. 10) Awareness level created by audio/visual media- Stores Mean rankings Westside 3.2 Max 3.80 Pantaloons 4.02 Reliance 3.60 Globus 3.2 Awareness level created by audio/visual media 5 4 Ranks 3 2 1 0 Westside Max Pantaloons Reliance Globus Series 1 3.2 3.8 4.02 3.6 3.2 On the basis of respondents, the above graph shows that the awareness created through audio/visual media is best done by Pantaloons with 4.02 ranks. 82
  83. 83. 11) Awareness level created by print media- Stores Mean rankings Westside 3.7 Max 3.4 Pantaloons 3.9 Reliance 3.35 Globus 3.85 Awareness level created by print media 4 3.8 Ranks 3.6 3.4 3.2 3 Westside Max Pantaloons Reliance Globus Series 1 3.7 3.4 3.9 3.35 3.85 On the basis of respondents, the above graph shows that awareness createdthrough print media is best done by Pantaloons. 83
  84. 84. Mean Ranks calculated are given belowstores Westside Max Pantaloons Reliance GlobusParametersVariety of product 2.02 3.70 3.08 3.57 3.13Best price 2.33 2.97 3.22 2.97 4.02Quality of product 2.88 3.59 3.56 2.03 2.23Up-to-date style 3.12 2.41 2.44 2.02 4.06customer’s service 3.07 3.40 3.05 3.02 2.27Best display 2.65 3.56 3.27 3.48 2.49Awareness- internet 3.4 3.65 3.7 3.44 3.5Awareness- audio/visual media 3.2 3.80 4.02 3.60 3.2Awareness- print media 3.7 3.4 3.9 3.35 3.85Average Mean Rank 2.93 3.38 3.36 3.05 3.19 84
  85. 85. Average Mean Ranks 3.38 3.36 3.4 3.3 3.19 3.2 3.05 3.1 3 2.93 2.9 2.8 2.7 Westside Max Pantaloons Reliance Globus Series 1According to above graph Max has the highest rank with 3.38 out of 5 with respect toall the parameters and its best rivalry is Pantaloons with 3.36 ranks out of 5. 85
  86. 86. Chapter 5Findings / Recommendations / Conclusions 86
  87. 87. Findings on the Analysis Basis-1) In retail stores customers coming are in the ratio of 67: 33 (male: female resp.)2) The average family income of these customer ranges between Rs. 20,000- 30,000.3) When considering variety of products availability, Max is best preferred in Comparison to its competitors which are Westside, Pantaloons, Reliance Trend and Globus4) According to my analysis Reliance Trend is competing with Max in variety of product and its availability as customers gave 3.75 ranks out of 5 to Reliance Trend and 3.7 ranks to Max.5) Price is no longer considering as the tools for competitive advantage in today‟s generation rather quality is preferred more.6) When considering Price parameters customer is more happy with the price offered by the Globus as customers have given 4.02 ranks out of 5 to it and 2.97 ranks to Max and thus it is giving competition to max7) Quality is best considered to distinguish yourself with others competitors. Max and Pantaloons are having neck to neck completion on this concern with 3.59 and 3.56 ranks respectively.8) Customers prefer Max cloths more than Pantaloons on the quality point of view.9) Being up-to-date and fashionable has become prerequisite of this generation. Max stands far behind in this respect. 87
  88. 88. 10) Max has raked 2.41 out of 5 whereas Globus is leading with 4.06 Ranks out of 5.11) Globus merchandise is best accepted as up-to-date and fashionable one and thus it is competing with Max in this field of fashion.12) Customers are considered as the blood life of any business in today‟s scenario. Making one customer delight will give us another new customer.13) Max is giving the best customers service and stands first among its competitors scoring 3.4 ranks out of 5. It maintains its CRM (TIC) very effectively and efficiently.14) Max also has a good visual merchandising among its all 4 competitors. Customers have given 3.56 ranks out of 5.15) Max is lagging behind in its promotion in some respects16) Creating awareness through Internet or through Audio/ visual or through Print media is best done by Pantaloons.17) For crating awareness through internet, audio/visual & print media, pantaloons scored 3.7,4.02 & 3.9 ranks respectively out of 518) Customers are aware of all the current offers going in Pantaloons. 88
  89. 89. After all my findings I would like to give SWOT Analysis of Max in Hyderabad • Urbanization • Trained personnel • retail space • No CSD • PROMOTION • Service Gaps • EVENTS AS PER • Display of Hoardings SEASONS • Brands • SCM • Lack of acquisition • Price powers STRENGTH WEAKNESS OPPORTUNITY THREAT • Competitors- locally & • Potential for investment. globally. • E- retailing • Price competition. • Locational advantage. • Competitors superior • Sectors with high growth distribution channel potential. • Promotional events. • Fastest growing formats. • merchandise • Rural retail. 89
  90. 90. My recommendations on the basis of analysis are:  Grant industry status to retail  The merchandise should be up to date and fashionable.  Invest in supply chain infrastructure  It should take steps to convert the footfall in the Retail Stores into sales by offering, “Catchy & Intelligent schemes”.  The attitude of sales force must be helping & communication in formal way.  Proper signage should be used in Max retail store.  Exchange Policies of Max retail store should be properly communicated to customers during Sale.  Accessories like Sunglasses and Bracelets etc. should be attractive and branded.  To solve the problem of alteration on Sunday, Company can provide the home delivery of altered merchandise.  Sizes of the merchandising should be standard.  Sizes of merchandising should be easily visible or one rack can be made for each size of different style.  Advertisement through Prints, Internet and Audio/ visual media should be increase for Max.  Brands should be increase to catch more customers.  Max should undergo extensive promotion to be Zenith among its Competitors. Extra Initiative during my Project 90
  91. 91.  I managed the Promotional Event – “Guess n Win Contest”, in City Center Mall for all the 3 weekends of May, 2011.  I got an opportunity from Max for Inspection of Audio/ Visual Screening of Promotion of Max in PVR, INOX, IMAX and Anand Theater in Hyderabad.  I also managed all amount of Gift Vouchers issued in Max, City Center and tracked for 1 week From 20th May, 2011 to 27th May, 2011 during Summer Delight Offer in Max.  I also got Wonderful opportunity to give the Briefing of the Summer Delight Offer, 2011 to all the sales staff in the City Center, Max store.17-05-20115 best events that can be carried out in Max Retail outlet in the upcoming weeksare- 1) Treasure Hunt- A treasure hunt can be played inside the store in which any object will be hiding in the store only and the participant will have to find out in at least 2 hours and the winner will get assured prize or gift coupon. 2) Happy Hours- Discount for hour and hours, or every 10 minutes get 5 % off in any merchandise. 3) Max Mascot-A mascot can be made which is never done by any of the retail outlet. It will be done only in weekends (Saturday & Sunday). For this buzz marketing can also be done which will give a target impact on the customers. It might become symbol for the Max. Play with the mascot in given period of time and if the customers win he or she will get assured prizes. 91
  92. 92. 4) Ice cream rivalry- it‟s a 2 member in a group activity. In this eyes of both the player will be closed with band and one player will have to take an ice-cream and make the other one to eat without touching here and there on the face and that too in 1 min. The person who does it will become winner and will be awarded gifts. 5) HouseyHousey- A game in which Players mark off numbers on a ticket as they are randomly called out, in order to achieve a winning combination.A typical bingo ticket is shown to the right. It contains twenty-seven spaces, arranged innine columns by three rows. Each row contains five numbers and four blank spaces.Each column contains either one, two, or very rarely three, numbers: The first column contains numbers from 1 to 9, The second column numbers from 10 to 19, The third 20 to 29 and so on up until the last column, which contains numbers from 80 to 90 (the 90 being placed in this column as well). 92
  93. 93. Conclusion-The past 4-5 years have seen increasing activity in retailing. And, various businesshouses have already planned for few investments in the coming 2-3 years. And thoughthe retailers will have to face increasingly demanding customers, and intenselycompetitive rivals, more investments will keep flow in and the share of organized sectorwill grow rapidly.Retailing in India is surely poised for a takeoff and will provide many opportunities bothto existing players as well as new entrants.. The country is witnessing a period of boomin retail trade, mainly on account of a gradual increase in the disposable incomes of themiddle and upper-middle class households. More and more corporate houses includinglarge real estate companies are coming into the retail business, directly or indirectly, inthe form of mall and shopping center builders and managers.New formats like super markets and large discount and department stores have startedinfluencing the traditional looks of bookstores, furnishing stores and chemist shops. Theretail revolution, apart from bringing in sweeping, positive changes in the quality of life inthe metros and bigger towns, is also bringing in slow changes in lifestyle in the smallertowns of India. Increase in literacy, exposure to media, greater availability andpenetration of a variety of consumer goods into the interiors of the country, have allresulted in narrowing down the spending differences between the consumers of largermetros and those of smaller towns. 93
  94. 94. Lastly I want to conclude my project in some points-  The customers are attracting towards shopping malls & retail outlets.  The shopping malls & Max retail outlets are targeting to middle class customers because the purchasing power of this class is rapidly growing as well as the class is also growing.  The young generation is fashion & show-off conscious so Max retail outlets should mainly focus on them.  Most of the family wants to purchase from big showrooms and malls because there are no bargaining system so they have a trust that there is no cheating. Max should make them Delight.  The main strength of most of the retail outlets are providing attractive offers to attract customers.  Other Competitors retail stores are running customer loyalty programs which have increased profits and no. of customers. 94
  95. 95. Chapter 5Bibliography 95
  96. 96. BibliographyBOOKS:-  Marketing Management. ----Kotler& Keller  Research methodology --- PEARSON  Retail management ---Levy &WeitzsMAGZINES:-  Business worlds  Indian retail  Economics of India  India today 96
  97. 97. WEBSITES:-      retail-technology-directory-india-2011?from=embed         Annexure 97
  98. 98. QuestionnaireDear Sir/ Mam,As a part of PGDM course in VishwaVishwani Institute of System and Management, I am doing a projecton competitor tracking of Max Retail. Please give your valuable inputs for this project.Your time and response is really appreciated.Name-………………………………………………………………... Age-……… Gender- M/F 1) How frequently you visit the retail stores? a. Fortnight b. Monthly c. Quarterly d. Half yearly e. Yearly 2) Family income of the respondent- a. 20k to 25k b. 25k to 30k c.30k to 35k d. Above 35000Response your answer between 1 to 5 in the (……..) provided- 3) Variety of product available in following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 4) Best price offered by the following stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 5) Quality of product available in the following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 6) Up-to-date style available in the following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 7) Best customer’s service provided by the following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 8) Best display of merchandise by the following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 9) Awareness created by internet by the following retail stores- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 10) Awareness level created by audio/visual media- a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 11) Awareness level created by print media- 98
  99. 99. a. Westside (…...) b. Max (…….) c. pantaloons (……..) d. reliance (……) e. Globus(……) 99