Shoppers' mart


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Shoppers' mart

  1. 1. DR. CAMIL BULCKE PATH, RANCHI__________________________________________________________________________ A project report OnGroup- Prof. A.R .BodraAman Manish Lakra 07 Nishant Sinha 25 HOD, MarketingSaurabh Sagar 32 Sumedha Sonal 53 XISS, RanchiPrateek Anand Singh 60[Department of Marketing] Prof. Subhajit Bhattacharya
  2. 2. We express our sincere gratitude to Mr. A. R. BODRA HOD Marketing, XISSfor providing us an opportunity to work on this project. We are verygrateful for their constant support and guidance throughout the durationof this project. We also express my sincere thanks to MR. ATUL MINOCHA,the owner SHOPPERS MART, Ranchi for providing us vital informationwhich results in successful completion of this project. The project providesus the fundamental and practical knowledge and idea of how a retail shopworks.We also like to thanks Prof. SUBHAJIT BHATTACHARYA for his continuessupport and guidance.Thank youRegards,Aman Manish Lakra 07NishantSinha 25SaurabhSagar 32SumedhaSonal 53PrateekAnand Singh 60(Marketing, XISS, 2011-13)
  3. 3. 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
  4. 4. Shoppers Mart is a retail outlet in Ranchi with a wide range of men’s, women’s andchildren’s apparel, sportswear, denim, and a range of licensed products such asaccessories, 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 theHead Sales assigned for every department.Shoppers Mart does not manufacture any product; they procure them from all over thecountry. 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. Oncethere is a shortage of any product, an individual from the store goes to the place fromwhere he has to procure the products. Agents are available to provide the product onbehalf of company and they act as a bridge between the retailer and the supplier. Theseagents 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 bedelivered the outlet. All the products are insured by the suppliers. They have an in housego down for the storage of shipments. Some of the Logistics agencies that ShoppersMart has a tag up with are:DELHI - PATEL LOGISTICSKOLKATA - BR LOGISTICSBANGALORE - PATEL LOGISTICSMUMBAI - TRIED LOGISTICSSuppliers give 15 to 20 days for the payment to be made to them. 01
  5. 5. Bargaining with suppliers depends upon the personal terms that the retail outlet haswith them. If the retailer is giving discount of 20% they go with 10% contribution ofeach. Some of the major suppliers are:ADITYA BIRLA GROUPARVIND MILLSMADURA GARMENTS DELHI TRANSPORTATION MUMBAI End AGENT Consumer TRANSPORTATION BANGALOREIMPLICATION OF VARIOUS TAXESPut this in a table TAX RATES Central Sales tax 1% VAT 5%. 02
  6. 6. MULTI BRAND RETAIL OUTLETThe basic model of the store is of a complete family store. Shoppers Mart is a six yearsold outlet. The outlet is of the same fraternity as Ved Textiles and Apparels. It has a solepurpose of serving the whole family with a wide range of Branded and Non Brandedapparels and accessories. It has different sections for Men, Women and Children. Thereare Head Sales for all the sections. The store hires in sales men of minimal qualificationsbecause of which they have a very high attrition rate. All the sales men report to theHead Sales of their respective departments. The whole essence of the business lies inthe procurement of products from different suppliers and from different places so thatthe customers get all the choices under one roof. Some of the major brands are AllenSolly, Peter England, John Players, Van Heusen and Park Avenue.STORE LAYOUTThe 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 andwomen), Cosmetics, Footwear, Sarees.The first floor has Menswear, Ladieswear and Kidswear. 03
  7. 7. Since its inception six years back the outlet has doubled its turnover. The outlet wasstarted with keeping in mind the demands of the whole family. With time the store hasincreased its range of products. The major revenue is generated through the Menssection. The sales volume increases at the time of sale/festive season. Every yearthetarget is to at least reach the last years revenue level. The store also helps thesuppliers in stock clearance. At these times they even get discounts up to 50% from thesuppliers. For the store, concept of sale is a kind of festival. The margin of the retail storeis approximately 25%, exclusive of VAT (i.e. 5%).The monthly expenditure of the shop is 7 to 8 lakhs which includes all the expensesincluding the expenses of procurement of the products, rent, and electricity etc.Shoppers Mart has a very strong relationship with the suppliers, agents, logisticsagencies. They share their value apart from paying money to them. The store believes ina mutual relationship of trust with the stakeholders. The sales team are trained well andget rewards according to the targets they meet. Shoppers Mart tries its level best togive their customers best of the products at best of the prices. The store also givesequal importance to the suppliers and the consumers so that there is no biasness.The preferred source for advertising is newspapers, radio and hoardings. Newspapers areused as a medium for spontaneous sales information to the customers. The popularity ofthe newspaper in Ranchi acts as decision making factor for giving the advertisements.Although newspaper is a very costly medium of advertisement. Hoardings are used forlong term branding. Most importantly the store depends majorly on the spread ofpositive word of mouth through the customers. They believe in developing a positive 04
  8. 8. image in their consumers mind. They have a trust on the customer base they have. Theymeasure the impact of the promotional activities on a weekly basisin terms of revenue generated and foot falls.Six year back when the shop was opened there were not much big competitors. Withtime big competitors like Big Shop, Kolkata bazaar, and Reliance trends came in themarket. These players are not much of a threat as Shoppers Mart has its own customerrelationship which is very strong. This is also justified by the fact they have doubled theirrevenues in six years. Moreover the store is a member of VastraVikretaSangh which takescare of the interests of the retail outlets in the city. Whatever decisions that the fellowretailers make is on common consensus. This is a way through which Shoppers Martsustains in the market.SURVIVAL STRATEGYIn future the store plans to bring in more brands and aspires to develop its customerdatabase. The store also plans to promote the brand to other cities as well. They are verymuch aware that new entrants are going to enter into the market but they trust on theirexisting customer base which is very loyal to them. Through efficient customer servicethey would also manage the after sales service to woo more customers. Throughcustomer probing we came to know that the customers get personalized attention fromthe sales people and the floor managers. This makes the customers feel good aboutshopping in Shoppers Mart. We also asked if the customers refer the store to theirfriends and relatives, and we got a positive response. This personalized service gives thestore an edge. 05
  9. 9. Shoppers Mart believes in true customer satisfaction. They constantly strive forpersonalized service being provided to the consumers. The sales team is trainedproperly for this. They do not leave a stone unturned and always give personal attentionto the customers. They have a comprehensive database of 2000 customers. They keep apersonalized record of the frequently visiting customers. They do this through a formwhich they ask their customers to fill up. They also have a membership card throughwhich regular customers avail special offers. The central idea for the store is Everythingfor the family and they achieve their motto by delivering personalized customersatisfaction. 06