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The following Case study sheds Light on how Reliance Retail uses concept of Visual Merchandising and how it influences and Impacts the customer Buying Pattern and Problems associated with it.
Retail Merchandising Strategy for Fashion MerchandiseVISHWA VARUN
Research provides a basic understanding of the merchandising concept to underline the relevance of merchandise planning in a retail organization. To provide information on merchandise grouping, defining the concept of merchandise hierarchy. It explains what is meant by merchandise buying and replenishment planning.
This research also covers the planning and carrying out of buying and selling activities including the responsibilities of buyers. It follows the flows of merchandise from arrival in the store to purchase by the customers. Today, stores use aggressive merchandising techniques for men’s and children clothing too. Fashion influence has also spread to all other areas of retailing from cosmetics and home furnishings to cookware.
Every area of merchandising responsibility needs planning and organization to make it function properly and to ensure successful buying and selling. Merchandising responsibilities are usually divided between two chains of command .The buying line has responsibility for merchandise content and assortment; the store line is the liaison between the merchandise organization and customers. The buying line works behind the scenes; the store line interface with customers on a daily basis. The goal is to sell merchandise.
The merchandise managers and buyers of the buying line must do all the planning and other activities necessary to bring the right merchandise in to the store at the right time to satisfy the store customers.
Supply chain management - Retail Industry (MBA)Dinesh Pal
In this PPT, We have used all concepts of Supply chain management. Very Unique terminologies are being used in the SCM field.
Only for academic purpose.
Case study on Visual Merchandising in Reliance Retail- By Raghav KulkarniRaghav kulkarni
The following Case study sheds Light on how Reliance Retail uses concept of Visual Merchandising and how it influences and Impacts the customer Buying Pattern and Problems associated with it.
Retail Merchandising Strategy for Fashion MerchandiseVISHWA VARUN
Research provides a basic understanding of the merchandising concept to underline the relevance of merchandise planning in a retail organization. To provide information on merchandise grouping, defining the concept of merchandise hierarchy. It explains what is meant by merchandise buying and replenishment planning.
This research also covers the planning and carrying out of buying and selling activities including the responsibilities of buyers. It follows the flows of merchandise from arrival in the store to purchase by the customers. Today, stores use aggressive merchandising techniques for men’s and children clothing too. Fashion influence has also spread to all other areas of retailing from cosmetics and home furnishings to cookware.
Every area of merchandising responsibility needs planning and organization to make it function properly and to ensure successful buying and selling. Merchandising responsibilities are usually divided between two chains of command .The buying line has responsibility for merchandise content and assortment; the store line is the liaison between the merchandise organization and customers. The buying line works behind the scenes; the store line interface with customers on a daily basis. The goal is to sell merchandise.
The merchandise managers and buyers of the buying line must do all the planning and other activities necessary to bring the right merchandise in to the store at the right time to satisfy the store customers.
Supply chain management - Retail Industry (MBA)Dinesh Pal
In this PPT, We have used all concepts of Supply chain management. Very Unique terminologies are being used in the SCM field.
Only for academic purpose.
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this was my report during some summer internship program conducted by our institute which i did in reliance fresh, bhubaneswar under the guidance of my teacher a final report on "Study of F & V segment in Reliance fresh and its improvisation"
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1. 1
A
PROJECT REPORT
ON
MERCHANDISING MIX ANALYSIS
FOR
THE LOOT (I) PVT LTD
PUNE
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTER OF BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
RAJEEV MALANI
( BATCH - 2006-08 )
BRACT‟s
Vishwakarma Institute of Management,
Kodhawa, Pune- 411014.
2. 2
ACKNOWLEDGEMENT
Several persons have extended their helping hands in the
successful completion of this project report on “MERCHANDISING MIX
ANALYSIS”
First and foremost express my sense of gratitude to
Mrs. MANOJ JHA (Area Sales Manager) for having accorded me the
permission to undertake the project report in “THE LOOT (I) PVT LTD”.
Special thanks to Mr. PRASHANT SHINDE (Store Manager) for his
valuable guidance with dearest co-operation.
I also show my deepest gratitude to Prof. MAHESH HALALE for
his valuable suggestions, guidance and advice in bringing out this project
report.
My special regards to my friends who directly or indirectly helped
me in completion of this project report.
Finally I give immeasurable thanks to my parents and friends who
endured many evenings and weekends of solitude for the thrill of seeing the
project report. Much of the value of this report is due to their patience,
encouragement and love. But I alone bear the responsibility for any errors
between the covers.
Mr. RAJEEV MALANI
3. 3
Contents
Chapter no. Title Page no.
1 Executive Summary 1
2 Objective and Scope of Project 4
3 Retail Industry profile 7
4 Company Profile 15
5 Theoretical Background 21
6 Research Methodology 26
7 Data Analysis 30
8 Findings 43
9 Recommendations 46
10 Limitations 48
11 SWOT Analysis 50
12 Annexure 52
13 Bibliography 56
5. 5
Executive Summary
The following report deals with the project undertaken for THE
LOOT (I) PVT LTD, PUNE. In today‟s market THE LOOT is expanding and gaining
kind attention in the retail industry. THE LOOT is a Discount store concept and also
known as Value store. This store in pune deals mainly in –
1. Foot wears
2. Apparels (formals, casuals, party wears, sports)
3. Accessories (belts, caps, traveling bags)
THE LOOT as said before a value store have a tagline as “GREAT STEALS ON BIG
BRANDS.” Today this value store can find out in most of the major cities.
The project study is conducted in Retail because, under modern
marketing concepts, marketing activities are centered on the customer. Most producers do
not sell their goods directly to the customers. Between them stands a set of intermediaries
performing a variety of functions. These intermediaries constitute a marketing channel or
distribution channel. Amongst these intermediaries Retailing is the most dynamic
activity. Retailing as a part of Supply Chain Management helps the consumer to satisfy
there wants. There is considerable growth in number and size of retailing organization.
Nature of retailing depends on two main considerations viz. Value Addition & Providing
Utility.
The subject of project study is “Merchandising Mix Analysis” in
the store and the reason behind the choice of this subject is, there‟s a lot of ignorance on
what merchandising is and how it helps in brand building. Though no research has been
done on the impact of merchandising on purchase decision, it is believed that at least two
third of buying decision are made at the point of sale. In apparel and dress accessories,
there is much higher awareness of merchandising and it‟s utility. Merchandising is a
ability to visually demonstrate and display a product, show its features and properties and
6. 6
bring out some of its esoteric. Going by recent trends merchandising is gaining
importance each day.
The study is carried out in the Pune Store situated at Tilak Road. The
primary objective of the study is comparing the merchandise available in the store with
the customer‟s expectations & competitor‟s merchandise. The secondary objective of the
study is to find out the quality, quantity, size and requirement of the product in the store
so as to meet the customer needs. .A systematic approach was used to achieve the above-
mentioned objectives. To minimize the error and gather the correct information, direct
observation technique was used and structured a questionnaire for customers.
8. 8
Objective & Scope of Project
Title of the Project :
The project is carried out in THE LOOT, a retail Value store.
And the title of the project is “Merchandising Mix Analysis”
Objectives of the project :
1) Primary Objective :
The primary objective of the project is “To find out the
merchandise available in the store is as per customers expectations or not
and weather it have the capability to compete the competitors.”
2) Secondary Objectives :
i) About Visual Merchandising?
ii) To find out the Quality of product available?
iii)To find out the Variety of product available?
iv) To find out the Sizes of product available?
v) To find out the Quality, Variety and Sizes of the products
available are matching with the customer‟s requirements?
vi) To find out in which size ratio the products are coming for sale
and which size ratio is actually needed or demanded?
vii)About In- seasonal Management
9. 9
Area of Operation :
The Operating area for this project study is “All sections in the store”. It includes
Apparels, Footwears, Accessories for Men , Women and Children.
Location:
The project study is carried out in THE LOOT store located at TILAK
ROAD, PUNE.
11. 11
Retail Industry Profile
Indian retail industry is going through a transition phase. Most of the retailing in our
country is still in the unorganized sector. The spread out of the retails in US and India
shows a wide gap between the two countries. Though retailing in India is undergoing an
exponential growth, the road ahead is full of challenges.
What is retailing?
The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off
or sheds a small piece from something. Retailing is the set of activities that markets
products or services to final consumers for their own personal or household use. It does
this by organizing their availability on a relatively large scale and supplying them to
customers on a relatively small scale. Retailer is a Person or Agent or Agency or
Company or Organization who is instrumental in reaching the Goods or Merchandise or
Services to the End User or Ultimate Consumer.
SCENARIO OF RETAILING IN INDIA
Retailing is the most active and attractive sector of last decade. While the retailing
industry itself has been present since ages in our country, it is only the recent past that it
has witnessed so much dynamism. The emergence of retailing in India has more to do
with the increased purchasing power of buyers, especially post-liberalization, increase in
product variety, and increase in economies of scale, with the aid of modern supply and
distributions solution.
Indian retailing today is at an interesting crossroads. The retail sales are at the highest
point in history and new technologies are improving retail productivity. though there are
many opportunities to start a new retail business, retailers are facing numerous
challenges.
12. 12
KEY CHALLENGES:
1) LOCATION:
"Right Place, Right choice"
Location is the most important ingredient for any business that relies on customers, and is
typically the prime consideration in a customers store choice. Locations decisions are
harder to change because retailers have to either make sustainable investments to buy and
develop real estate or commit to long term lease with developers. When formulating
decision about where to locate, the retailer must refer to the strategic plan:
* Investigate alternative trading areas.
* Determine the type of desirable store location
* Evaluate alternative specific store sites
2) MERCHANDISE:
The primary goal of the most retailers is to sell the right kind of merchandise and nothing
is more central to the strategic thrust of the retailing firm. Merchandising consists of
activities involved in acquiring particular goods and services and making them available
at a place, time and quantity that enable the retailer to reach its goals. Merchandising is
perhaps, the most important function for any retail organization, as it decides what finally
goes on shelf of the store.
3) PRICING:
Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and
its interaction with other retailing elements. The importance of pricing decisions is
growing because today's customers are looking for good value when they buy
merchandise and services. Price is the easiest and quickest variable to change.
4) TARGET AUDIENCE:
"Consumer the prime mover"
13. 13
"Consumer Pull", however, seems to be the most important driving factor behind the
sustenance of the industry. The purchasing power of the customers has increased to a
great extent, with the influencing the retail industry to a great extent, a variety of other
factors also seem to fuel the retailing boom.
5) SCALE OF OPERATIONS:
Scale of operations includes all the supply chain activities, which are carried out in the
business. It is one of the challenges that the Indian retailers are facing. The cost of
business operations is very high in India.
PRESENT INDIAN SCENARIO
* Unorganized market: Rs. 583,000 crores
* Organized market: Rs.5, 000 crores
* 5X growth in organized retailing between 2000-2005
* Over 4,000 new modern Outlets in the last 3 years
* Over 5,000,000 sq. ft. of mall space under development
* The top 3 modern retailers control over 750,000 sq. ft. of retail space
* Over 400,000 shoppers walk through their doors every week
* Growth in organized retailing on par with expectations and projections of the last 5
Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06
* Major players
- Food and grocery
- Fashion
- Others
- Food world
- Shoppers' Stop
- Vivek's
- Subhiksha
14. 14
- Westside
- Planet M
- Nilgris
- Lifestyle
- Music World
- Adani- Rajiv's
- Pyramid
- Crossword
- Nirma-Radhey
- Globus
- Life spring
TRADITIONAL RETAIL SCENE IN INDIA
India is the country having the most unorganized retail market. Traditionally the retail
business is run by Mom & Pop having Shop in the front & house at the back. More than
99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased
as per the test & vim and fancies of the proprietor also the pricing was done on ad hock
basis or by seeing at the face of customer. Generally the accounts of trading & home are
not maintained separately. Profits were accumulated in slow moving & non-moving
stocks which were to become redundant or consumed in-house. Thus profits were
vanished without their knowledge. The Manufactures were to distribute goods through C
& F agents to Distributors & Wholesalers. Retailers happen to source the merchandise
from Wholesalers & reach to end-users. The merchandise price used to get inflated to a
great extent till it reaches from Manufacturer to End-user. Selling prices were largely not
controlled by Manufacturers. Branding was not an issue for majority of customers. More
than 99% customers are price sensitive & not quality or Brand Sensitive at the same time
they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all
the commodities were on the scene including livestock. Bargaining was the unwritten law
of market. Educational qualification level of these retailers was always low. Hence
15. 15
market was controlled by handful of distributors &/or Wholesalers. Virtually there was
only one format of retailing & that was mass retail. Retailer to consumer ratio was very
low, for all the categories without exception. Varity in terms of quality, Styles were on
regional basis, community based & truly very low range was available at any given single
place. Almost all the purchases / (buying) by mass population was need oriented & next
turn may be on festivals, Marriages, Birthdays & some specific occasions.
Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair
of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair
of shoes for occasions is till date is a luxury for majority population except for those
living in Metros. Purchasing power of Indian urban consumer is very low and that of
Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches,
Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks.
However electronic & electrical home appliances do hold appropriate image into the
minds of consumers. Brand name does matter in these white goods categories. In the
coming times also majority of organized retailers will find it difficult to keep balance
with rest of the unbranded retail market which is very huge.
INDIAN RETAIL IS MOVING INTO SECOND GEAR
1) FIRST GEAR:
(Create awareness)
* New retailers driving awareness
* High degree of fragmentation
* Real estate groups starting retail chains
* Consumer expecting 'value for money' as core value
2) SECOND GEAR:
(Meet customer expectations)
* Consumer-driven
* Emergence of pure retailers
16. 16
* Retailers getting multi-locational and multi-format
* Global retailers evincing interest in India
3) THIRD GEAR:
(Back end management)
* Category management
* Vendor partnership
* Stock turns
* Channel synchronization
* Consumer acquisition
* Customer relation's management
4) FOURTH GEAR:
(Consolidation)
* Aggressive rollout
* Organized retail acquitting significant share
* Beginning of cross-border movement
* Mergers and acquisitions
Conclusion
For a start, these retailers need to invest much more in capturing more specific market.
Intelligence as well as almost real-time customer purchase behavior information. The
retailers also need to make substantial investment in understanding/acquiring some
advanced expertise in developing more accurate and scientific demand forecasting
models. Re-engineering of product sourcing philosophies-aligned more towards
collaborative planning and replenishment should then be next on their agenda. The
message, therefore for the existing small and medium independent retailers is to closely
examine what changes are taking place in their immediate vicinity, and analyze Whether
their current market offers a potential redevelopment of the area into a more modern
multi-option destination. If it does, and most commercial areas in India do have this
potential, it would be very useful to form a consortium of other such small retailers in
17. 17
that vicinity and take a pro-active approach to pool in resources and improve the overall
infrastructure. The next effort should be to encourage retailers to make some investments
in improving the interiors of their respective establishments to make shopping an
enjoyable experience for the customer.
As the retail marketplace changes shape and competition increases, the potential for
improving retail productivity and cutting costs is likely to decrease. Therefore, it will
become important for retailers to secure a distinctive position in the marketplace based on
value, relationships or experience.
Finally, it is important to note that these strategies are not strictly independent of
each other; value is function of not just price, quality and service but can also be
enhanced by Personalization and offering a memorable experience. In fact, building
relationships with customers can by itself increase the quality of overall customer
experience and thus the perceived value. But most importantly for winning in this
intensely competitive marketplace, it is critical to understand the target customer's
definition of value and make an offer, which not only delights the customers but also is
also difficult for competitors to replicate.
19. 19
Company Profile
The year - 1997, the plan, to venture into advanced retailing techniques, the site – the
booming township of New-Mumbai. A young entrepreneur JAY GUPTA set his eyes on
apparel and footwear retailing.
This is when the idea of offering the best brands at the best prices surfaced. Soon The
LOOT took shape with its first store in the year 2004.
In a short span The Loot was nominated for the best value store in India in “India
Fashion Forum” 2005. And in 2006 the Loot was nominated in “India Retail Forum” for
the best value store in India.
“THE LOOT” is a multi-branded discount store, in Garments, Footwear and
Accessories offering customers a wide range of products with a minimum of 25% and up
to 60% discounts – throughout the year.
The Loot started off as a franchisee of various brands and soon moved to creating a chain
in the space of „ Value Retailing „. The Loot‟s strength as a retailer lies in proper
procurement and an excellent supply chain management. This helps in getting better
pricing from the manufacturer and thereafter passing on the benefit to the consumer.
India offers tremendous business potential and hence The Loot have introduced the
concept of Value Retailing to cater to the growing needs for international brands at
attractive prices.
The Loot currently offers the right mix of formals, semi-formals, casuals, and
sports category of garments, footwears and accessories. It has recently also introduced
their kids section.
20. 20
The Loot currently operates 37 stores in cities like Mumbai, Navi-Mumbai, New-
Delhi, Hyderabad, Vizag, Pune, Surat, Nashik, Aurangabad. Shortly it is opening its
stores in cities such as Sonipat, Ludhiana, Mysore, Kalyan, Jabalpur, Bangalore, Baroda,
Kolhapur, Raipur. The store ended up last year ( 2006 ) with a topline of 35 crores and
planning to end the current financial year at about 70 crores. To propel the growth of the
company and to move to the next level, they invested skillfully in IT and SCM. Their
focus is also on personnel training and great emphasis is being laid on preparing the back
end to take growth to about 100 stores by the year 2008-09.
Company Vision
We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the
most profitable manner.
Company Mission
We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian and International brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do. We
shall ensure that our positive attitude, sincerity, humility and united determination shall
be the driving force to make us successful.
PARTNERS IN CRIME
Even in a short span of its operations The Loot can boast of the brands associated with it.
Adidas, Nike, Reebok, Red Tape, Lee Cooper, Pepe Jeans, Levi‟s, Benetton, Tuscan
Verve, Spykar, Wrangler, Lee, Eccentrics, Provogue, Arrow, Allen Solly, Van Heusen,
21. 21
Kappa, Cat, Jinni n Jony, Lilly Put, Reebok, SF, Indian Terrain, Puma, Fila, Skechers, W,
Ragz Jeans, Black Berrys, ID and Jealous among others.
HIDEOUTS
The Company has three store formats as below;
1. Shop-in-Shop : 2000 sft
2. Signature Shop : 5000 sft (available for franchising)
3. Mega Store Shop : 15000 sft ( Surat, Mumbai, Bangalore)
Currently there are 37 stores spread all over India. The Loot has also signed an additional
1 lac sft with stores in Bangalore, Mysore, Chandigarh, Aurangabad, Kalyan, and
Ahmedabad.
FUTURE PLOTS
The Loot aims to triple its growth in the next two years. It has built a platform to catapult
the business at an exceptional level. Covering major markets with its franchisee network
is what will make this goal easily achievable. With the future positively heading towards
Organized Retailing, The Loot has just the elements required to make it an exceptional
success story.
The professionals of The Loot have mapped the growth close to 100 crores by 2008-09.
INFORMER NETWORK
The Loot has signed the world renowned Bad Man GULSHAN GROVER as its
BRAND AMBASSADOR, or should we say the Don of the Loot. With his established
image he adds a clear character to The Loots image. Advertising, PR activities, Store
22. 22
openings and promotions revolves around him. The master is at work. A chance to encash
on the bad man image of Gulshan Grover, sharing tricks of the trade for the benefit of the
consumer. The creative concept revolves around the villainous character that has a knack
to loot and who makes the leading international and domestic brands available at
discounted rates for the consumers. Through this campaign, The loot aims to leverage the
negative shades of Bad Man to lure the consumers by influencing their desire for „ Great
Steals on Big Brands‟.
CELEBRITY CONNECTION
The Loot has obtained a positioning of „Great Brands at Great Prices‟.
The brand has been built over a period of three years with a marketing strategy focusing
on PR complemented by Advertising.
The PR campaign worked at different levels:
- Launch stage : Awareness and Brand Building.
- Product PR : Excitement around the new product offerings.
- Brand PR : Brand profiling stories, events using celebrities.
The media mix addresses the youth on one hand and young professionals who aspire for
international brands at affordable price.
FOR US CUSTOMER IS A KING
Because the Customer:-
Because the customer has a need,
23. 23
We have a job to do.
Because the customer has a choice,
We must be the better choice.
Because the customer has sensibilities,
We must be considerate.
Because the customer has an urgency,
We must be quick.
Because the customer has high expectations,
We must excel.
Because the customer is unique,
We must be flexible.
Because the customer has influence,
We have the hope of more customers.
Because of the customer,
We exist.
25. 25
THEREOTICAL BACKGROUND
TOPIC: MERCHANDISING MIX ANALYSIS
Merchandise are the different variety of goods which retailer brings
for selling the same to the end user or ultimate customer. The success of retailing
organization mainly depends on the decision retailer has taken about –
What is to be Bought?
In what Quantity? And
At what Time?
It is said that „Goods well bought are half sold‟. Thus selection
and presentation of merchandise is the key source of difference which allows one retail
store to differentiate itself from others. The different variety of merchandise bought by
the retail organization has to reflect different market segment needs and wants.
It is observed that merchandise management is very complex
procedure and it requires very systematic approach with due considerations to the concept
of marketing. For successful merchandise management optimal levels of stocks are to be
ensured to improve cash flow and profitability.
Merchandising is planning, buying & selling merchandise.
There are 7 rights involved in
1) Right PRODUCT
2) Right PLACE
3) Right QUALITY
4) Right QUANTITY
5) Right PRICE
6) Right MIX / ASSORTMENT
7) Right TIME
26. 26
Merchandise Mix :
Merchandise Mix represents the full range of mixtures of products a
retailer offers to a target consumer.
Variety: No. of different product lines stocked in store.
Assortment: No. of different product items within in the particular product line
Support: Planning & control of the no of units the retailer should have in hand to meet
the expected sale of particular product.
For example we can divide merchandise in following manner:
Merchandise Mix
Variety
Assortment
Support
28. 28
VISUAL MERCHANDISING
Selling goods using visual stimuli is an age-old practice, but with increasing growth of
retail industry, the art, or arguably the science of visual merchandising has come to
occupy a new found fancy. Marketers, especially retailers, consider it as an inseparable
part of their overall branding effort. But even as it continues to grow, like all other
branding efforts, the understanding of its impact and effectiveness is still in its infancy.
Store design plays a crucial role in branding; it reflects and reinforces the corporate
image. It tangibalizes what the retailer claims to be. The sights, sounds, smells and any
other aspect should, therefore reflect what the retail brand is about and what its attributes
are, yet, very often the layout of the store doesn‟t reflect the true identity of the brand.
Sometimes it is in stark contrast with what the retailers image is with its customers,
created through its advertising. Here visual merchandising chips in, it creates a
connection between the company‟s image and the look of the store.
Retailers resort to Visual Merchandising in the pretext that if not anything else the
display would get the curiosity incited and people would come to see the display and
might buy a thing or two. Even though Visual merchandise has been affected in today‟s
slumping times, its importance hasn‟t diminished. The advertising wisdom that says
“companies that advertise even in slumps times, reap its benefits later” holds true for
Visual Merchandise also. Companies, which continue to put money into Visual
Merchandising, would gain competitively as well as monetarily in due course of time.
Like advertising, like fashion and all other creative services, Visual Merchandising also
invites skepticism, but who doesn‟t want a treat for there eyes. As it turns out, Visual
Merchandising might not be the blockbuster drug for brand ailments, but it sure is a
vitamin that is essential for brand health.
30. 30
Research Methodology
Meaning:
In common language research refers to a search for knowledge. We can also
define Research as a scientific and systematic search for pertinent information on a
specific topic. Thus research is an original contribution to the existing stock of
knowledge making for its advancement. It is a purposive investigation. The main aim of
research is to find out the truth which is hidden and which has not been discovered yet.
Research process involves defining the problem, formulating the hypothesis, organizing
and evaluating the data, deriving inference and conclusion after careful testing.
Definition:
According to bery “A careful investigation or inquiry specially through
search for new facts in any branch of knowledge”
Redman and mory defined research as “Systematized effort to gain new
knowledge”
For every comprehensive research, a proper research methodology is
indispensable and it has to be properly conceived.
Methodology:
1. DATA TO BE COLLECTED
Data includes facts and figures, which are required to be collected to achieve
the objective of the project. In order to determine the merchandise available in the store is
as per customers expectations or not and weather it have the capability to compete the
competitors, the information needed to be collect can be classified into following two
types-
31. 31
A. Primary Data:
The data that is collected at hand and for the first time
or to particularly fulfill the objective of the project and happen to be original in nature is
known as the primary data. These type of data include –
The primary data were collected through observation of day to day available and arriving
merchandise and customers preference. An questionnaire also prepared to know the
quality and variety of available merchandise and customers level of satisfaction.
B. Secondary Data:
Secondary data are that type of data, which are already
collected, available, analyzed, or assembled by someone else. And need not to collected
from outside. These types of data were –
a. Company profile
b. Daily Sales Report
c. Competitors knowledge
The aforesaid data were collected through Internet and company‟s financial reports,
newspapers, and interior products magazines.
2. DATA COLLECTION METHOD
For given project, the primary data was more significant. This
type of information gathered through survey technique, which is the most popular and
effective technique for correct data collection. The survey was completed with the use of
questionnaires and observations.
a) Questionnaire for customers
b) Observations
32. 32
The questionnaire is present further in the annexure.
3. SAMPLING
Sample is the small group taken under consideration from the
total group. So I tried to collect information from every kind of customer coming in The
Loot Store.
Calculation of sample size is based on random sampling technique for the project.
Sample Space – The Loot (Pune)
Samples – Customers
Sampling Technique – Random Sampling
Sample Size – 150 customers
4. DATA EVALUATION
The extensive data collected through the questionnaires was evaluated to arrive at the
market size, market potential and the market share of the company. This compilation was
put into the charts for getting the information at a glance and easy availability for ready
reference.
34. 34
1. What makes you to shop at THE LOOT?
31%
29%
19%
12%
9%
Discounts
Price
Quality
Variety
Service
From above data it clear that 31% of the customers are attracted towards THE LOOT
because of attractive discounts and 29% because of price factor.
Discounts Price Quality Variety Service
31 29 19 12 09
35. 35
2. How do you find the Variety of Merchandise in our store?
19%
42%
28%
11%
Excellent
Good
Average
Poor
From above chart it clear that 42% of the customers are finding Variety of Merchandise
Good but at the same time 11% and 28% of customers are finding it poor and Average
respectively.
Excellent Good Average Poor
19 42 28 11
36. 36
3. How do you find the Quality of Merchandise in our store?
15%
49%
25%
11%
Excellent
Good
Average
Poor
It is noticed from the above chart that 49% of the customers think that the quality of
merchandise is up to the mark. Only 15% and 25% of customer think that the
merchandise is Excellent and Average respectively.
Excellent Good Average Poor
15 49 25 11
37. 37
5. How is your overall experience of shopping at THE LOOT ?
30%
43%
21%
6%
Outstanding
Good
Average
Poor
Huge number of customers felt pleasure shopping at THE LOOT. 30% of the customers
are having an outstanding experience with THE LOOT.
Outstanding Good Average Poor
30 43 21 06
38. 38
5. Is the Tag-line “GREAT STEALS ON BIG BRANDS” suitable for THE
LOOT?
66%
12%
22%
Yes
No
Sometimes
Maximum number of customers appreciated the tagline “GREAT STEALS ON BIG
BRANDS”.
Yes No Sometimes
66 12 22
39. 39
6. How is the Customer Service provided at THE LOOT?
27%
42%
22%
9%
Outstanding
Good
Average
Poor
42% customers said that the service provided is good, 27% customers said that its
outstanding and 22% customers said it average.
Outstanding Good Average Poor
27 42 22 09
40. 40
7. Are the Signage’s useful?
73%
5%
22%
Yes
No
Sometimes
No doubt signage‟s available at THE LOOT are useful most of the time.
Yes No Sometimes
73 05 22
41. 41
8. Does our Mannequin’s and Window displays attract you?
54%
18%
28%
Yes
No
Sometimes
Most of the customers are happy with the display at the store.
Yes No Sometimes
54 18 28
42. 42
9. Does our Offers pull you to buy?
53%
9%
38%
Yes
No
Sometimes
Most of the times customers are attracted towards the offers. This shows that there is
consistency in the offers that LOOT provides.
Yes No Sometimes
53 09 38
43. 43
10. Which stores you visit other than THE LOOT?
17%
27%
21%
14%
21%
Mega mart
Brand Factory
Pyramids
Shoppers Stop
Others
27% customers said that Brand Factory is the competitor for LOOT while 21% and 17%
are Pyramids and Mega mart respectively.
Mega
mart
Brand
Factory Pyramids
Shoppers
Stop Others
17 27 21 14 21
44. 44
11. Is the product that you wish to purchase always available at the store?
35%
38%
20%
7%
Always
Most of the Times
Sometimes
Never
38% customers get the products most of the time while 35% customers get them on
demand.
Always Most of the Times Sometimes Never
35 38 20 7
45. 45
12. What do you think should be improved to make your shopping experience
better at THE LOOT?
Taxes Deduction 39
New Stock Arrivals 28
More Branded Products 16
More Attendance of Staff 14
Nothing 3
39%
28%
16%
14%
3%
Taxes Deduction
New Stock Arrivals
More Branded Products
More Attendance of Staff
Nothing
39% customers said that Taxes like VAT should not be charged extra, where as 28%
customers demanded new stock.
47. 47
FINDINGS
1. It was found that Discounts and Price are the important factors amongst THE
LOOT customers. The target customers of LOOT are middle class people.
People make their purchase because of low prices and discounts what they
offer.
2. The Variety of available Merchandise in the store is quite good. But it was
also found out that there is plenty of scope to improve it.
3. Customers are not totally satisfied with the Quality of Merchandise available at
LOOT. Some customers are having problem with the Merchandise quality
available in the knit & Jeans section.
4. No doubt that THE LOOT is satisfying its tagline “Great Steals on Big
Brands.”
5. From the chart it was found out that in the field of providing customer service
THE LOOT is at its best. In this cutthroat competition customer service plays
very important role. And, it is also noticed that a proper customer service
helps a lot to make loyal customers and also to retain them.
6. It is a great thing to see that whatever signage‟s they put are very much
effective and efficient. Signage‟s are doing a good job by providing the right
path to the customers.
7. Window display in today‟s competitive world got very much importance. As
the competition is increased, one can use display as a very effective tool to
attract the customers. Good thing about THE LOOT is they are utilizing this
tool effectively to attract the customers. But the mannequins are found not in
proper condition.
8. As the LOOT is well known for the offers what they provides. These offers
are found out very much attractive which helps a lot to pull the customers to
buy.
9. It should be prime objective of any organization to fulfill their customers
needs by providing them what they want. It was found out in LOOT that most
of the times customers get what they want but again there is need to improve
the category or product range to serve better.
48. 48
10. It was found out that the main competitors of LOOT in Pune are Brand
factory, Shopper stop, Pyramids and Mega mart.
11. Again the stock which is available at the store is quite old. There is high need
of new arrivals.
12. It was found out that the manager is not able to differentiate the slow moving
and fast moving products so there is no proper space management.
13. There is good co-operation among the selling staff but lack of motivation both
monetary and non-monetary.
50. 50
Recommendation
1. There is a strong need of motivation to the staff both monetary and non-
monetary
2. Proper attention should be given towards weekdays selling.
3. Many customers reject buying at last moment because of the taxes that are
added exclusively. These taxes should be included in the price that LOOT is
offering.
4. Goods should be order as per the capacity of the floor
5. Window display should be changed weekly or fortnightly to ensure freshness.
The display and layout should differentiate the store from competitors.
6. Floor have to be more neat and clean
7. The quality of the merchandise needs to be improved
8. Need to have a strong Leadership to control the staff activities and to get the
work done in time.
9. Should give proper knowledge about the features of newly coming products to
the sales staff
10. The Billing machine should be replaced by a new machine as it takes more
time for billing.
11. Customers complaints need to be taken more care of .
12. From our survey we found that Majority of the customer who visit to the store
is around 89% between the ages of 18 to 30.
So our present target customers are youth, so the product range should be
available as per the requirement.
13. Majority of the customer visited the store through the Word of mouth
publicity.
14. Majority of the customers are student, so we need rigorous Advertisement in
colleges to get more customers.
52. 52
Limitations
The research project had some limitations that are listed as below.
TIME FRAME: The time allotted for the project was two months, was major
constraint for the study.
GEOGRAPHICAL COVERAGE: This study was limited to “Men‟s Apparels”
in THE LOOT, Pune.
CASUAL RESPONSES: It was difficult to obtain data from each respondent
concerned. There are always some respondents that refuse to give any
information. Sometimes some respondents must have answered casually and did
not give correct information.
SAMPLE SIZE: The project was restricted for a particular sample size.
54. 54
SWOT Analysis
Strength:
o The Loot made for actual Indian Middle Class Customers
o Attractive offers helps a lot to increase the sale
o 365 days discounts helps a lot to grab the customers into the store
Weakness:
o Poor Quality of Apparels
o Lack of latest variety
o Lack of Professional Management
Opportunity:
o Mall & Surrounding area at developing phase
o The Loot can stand strongly in tough competition of future by creating
Customer Retention through Customer Satisfaction
Threats:
1) Big players entry like Reliance, Wal-mart in retail sector
56. 56
Annexure
Questionnaire for THE LOOT Customers
Name -:
Age - : Below 18 18 – 30
30 -45 Above 45
Sex -: Male Female
Marital status-: Married Single
Occupation -: Business Profession
Student Other
Income -: Below 10000 10000 - 20000
20000 – 30000 Above 30000
Contact No. -:
E –mail ID -:
1) What makes you to shop at THE LOOT?
Discounts Price
Quality Variety
Service
2) How do you find Variety of Merchandise in our store?
Excellent Good
Average Poor
3) How do you find Quality of Merchandise in our store?
Excellent Good
Average Poor
57. 57
4) How is your overall experience of shopping at THE LOOT?
Outstanding Good
Average Poor
5) Is the Tagline “GREAT STEALS ON BIG BRANDS” suitable for the LOOT?
Yes No Sometimes
6) How is the Customer Service provided at THE LOOT?
Outstanding Good
Average Poor
7) Are the Signage‟s useful?
Yes No Sometimes
8) Does our Mannequin‟s and Window display attract you?
Yes No Sometimes
9) Does our Offers pull you to buy?
Yes No Sometimes
10) Which stores you visit other than Big Bazaar?
Brand Factory Shoppers stop
Mega Mart Pyramids
Others
11) Is the product that you wish to purchase always available at the store?
Outstanding Good
Average Poor
58. 58
12) What do you think should be improved to make your shopping experience better at
Big Bazaar?
Reduction in taxes
New Stock Arrivals
More Branded Products
More Attendance
Nothing
60. 60
Bibliography
Referred Books:
Sr. No. Name of Book Name of Author
1. Retailing Management …. Berman Evans
2. Retail Management …. Chetan Bajaj
3. Research Methodology …. C. R. Kothari
4. Marketing Research …. Rajendra Nargundkar
5. Marketing Management …. Rajan Saxena
6. Marketing Management …. Philip Kotler
Magazines
Sr. No. Name of Magazine
1. … Vikalp – August
2. … Retail Biz-July,August
Websites:
Sr. No. Web-site
1. … www.thelootstore.com
2. … www.knowabout.com