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Retail management

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Retail management

  1. 1. Gift Shop The Triangle
  2. 2. Agenda The Idea of a Gift Shop– TG Segmentation & Need Gap Analysis The Marketing P’s in Action Store Setup– Format, Layout & Logistics Financials
  3. 3. 33 25 37 5 16-20 yrs 21-24 yrs 25-30 yrs Above 30 yrs Males Females 56% 44% 55 48 63 44 34 81 0 20 40 60 80 100 Gift Items % Preference Q7. What sort of gifts do you normally look for in a gift shop/store? Q8. Who are the people who you normally purchase gifts for? 0 50 100 Family/Relatives GF/BF Casual Friends Professors/Faculty Colleagues 53 61 82 10 32 People Age Groups Gender Demographic Research Data Source: Primary research conducted at Somaiya Vidya Vihar Campus
  4. 4. Age •I am 16+ years old • Young adult SEC •SEC A, B & C •Spends from Pocket Money •Aspirational Values •Always exploring new things •Friendly & approachable •Always updated on Style Personality •Young, Social, On-the-Go •Influenced by Peers •Mix of Trend Setters & Followers •Early adopters & Evolved Users The Core Target Group
  5. 5. Average Ranks Variety of Gifts 2.98 Price 3.86 Discounts 4.22 Ambience 2.13 Location of Store 1.71 Brand Name 1.62 Customer service 6.55 Would it be convenient if a gift shop is in a college campus? Importance of Parameters College campus convenience Rank these parameters in order of importance? Yes 96% No 4% Mean score: Very Likely Quite Likely Not very likely Not at all likely - 2 98 How likely are you to purchase a gift from a store based in a college campus? 3.98 Which of these applies to you when you buy a gift chipping in with someone? Concern of Gifting Likelihood of purchasing a gift % I am normally very concerned about the gift that I am giving to the other person 91 I am slightly concerned about the gift that I am giving to the other person 4 I normally do not have a say & let my friends/other people decide 3 I do not give a damn & just do it for the sake of it 2 Preference Data Source: Primary research conducted at Somaiya Vidya Vihar Campus
  6. 6. Understanding the Consumer “I luv branded stuff… and not just that only”
  7. 7. Leveraging the Need & Void College Teens are always in the mood of Celebrating & creating memories! College days are full of Occasions –B’days, Valentines’ Day, Friendship Day etc..! -Students have the need for unique gifts -Low proximity of close gift shop -Lacks time to select the right gift! Approx 550 Mts & 7 Mins Walking from Campus to nearest Gift Shop!!
  8. 8. • Limited Unique products • Non-perishable for longer shelf-life • Reasonably priced • Variety of Gift Wrapping options • Popular demand: Mugs, Accessories, Teddies, Fancy Stationery & Deos • Surprise Delivery to friends Merchandise Selection Approach
  9. 9. Merchandise Mix Gifts / Consumables % of Stock (research on Demand) Fancy Stationery 45-50% Accessories (Rings, Wallets, Chains, etc.) 20-25% Cards 15-20% Coffee Mugs & Deos 10-15% Stuff Toys Upto 5%
  10. 10. • Centrally located to all colleges • Closer to 2 entrances • Near Maggi house & open- amphi of (eng) college • Behind Race Track & Joggers track • Good Frontage & Shade under the tree • High visibility due to corner position Location Analysis & Store Placement
  11. 11. Promotion & Marketing Strategy 3 Pronged Approach Farming Partnering & Specials Hunting - Word of Mouth - Banners & Standees at College Hangouts - Classroom Promos - eMail to college group IDs - College Events & Shows - Tactical Associations (Mr & Ms Valentine) - Har ek Friend…ko Gift Zaroori hota hai Contest - Sharing is Caring Week - Discounts & Offers - Loyalty Programs - Sales Promos Awareness Induce Demand Drive Sales
  12. 12. Positioning Strategy What are our Services? -Enabling the Gifting Experience -Strategic location What us our USP? -Catering to College Students! -Gifting a Surprise What is our Personality? -Young & Chirpy -We Care! Where do we want to go? -Being the Gifting Destination -eRetailing to Alumni -Presence in other colleges Positioning Quadrangle
  13. 13. • 1 full time Gift Adviser will be responsible for the operations of the store • Age: max. 25 yrs • Attitude & Appearance: Cheerful & Helpful nature, who is concerned about the other person’s expectations • Skills: Basic Craft & Art Knowledge • Qualification: HSC pass • Remuneration: INR 9,000 (max) + Variable • Additional Resource requirement will be evaluated basis work load 1 Owner will always be present at the store Human Resource Planning
  14. 14. Format Designing & Layout Area: 30.8 mts / 325 sq.ft 5.6 mts 2.25 mts Storage Area Door
  15. 15. Supply Chain & Logistics • Purchase from Wholesaler / Manufacturer from Mumbai & Thane districts • 2 days TAT from order placement & return defective stock • Orders will be placed as per stock levels & demand forecast to avoid holding excess stock Vendor Management • Try to achieve Cash on Delivery for better bargains & smoother relations • Treat Vendors as “partners” to achieve a common goal • Partnership model to help cut costs, boost efficiencies & share value Tentative Partners • Handmades based out of Kandivili • Metaplex Industries based out of Jogeshwari • Swisswrap Pvt Ltd based out of Malad Logistics –Supply Chain Management & Vendor Management
  16. 16. Financials Amount in INR GMROL: 130.97; GMROI: 0.47 Cost Sheet Particulars Amount (INR) Current Asset: Deposit to college 100000 Capital Expenditure Store Décor 40000 AC, Computer, Printer & other Electricals 75000 Total Setup Cost 115000 Operating Expenditure (monthly) Salary 9000 Rent to College 20000 Electricity Bill 2500 Misc 1000 Avg Mktn Exp 3500 Total Monthly Cost 36000 Sales Estimate Products Avg Inv. Cost Price Avg Inv Cost Sales Price Monthly Sales Sales (Amt) Cost (Amt) Coffee Mugs / Deos 288 114 32703 175 250 43750 28438 Accessories 575 26 14950 40 500 20000 13000 Stuffed Toys 58 163 9344 250 50 12500 8125 Cards 403 20 7849 30 350 10500 6825 Fancy Stationery 1150 20 22425 30 1000 30000 19500 2473 87271 2150 116750 75888 Variable cost 75887.5 Sales Income 116750 Gross Margin 40862.5 Monthly Operating Profit 4862.50 BEP (in Months) 23.7 BEP (In Years) 2.0

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