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IMPACT – make a difference
Purpose of the project – To improvise the
operational efficiency of the Departmental Store
through uplifting the Avg. Cash Memo size almost by
20% from current & to be precise from Rs. 2500/- to Rs.
3000/-.
System
VendorsLogistics
Placement
(Size, Location, Layout & Design, Brand adjacencies)
Product
(Style, Fashion, Assortme
Offering)
Promotion
(Communication &
Positioning)
Proposition – value
(Price & Quality)
People
(Service, Knowledge, Environment)
Retail 5P’s
PRODUCT
As there is a saying that if 5 P’s of retail mix integrates well for your
business model then the most needed & required 6th P
will automatically comes i.e. PROFIT.
So, lets begin our study with
PRODUCT
- Assortment (brand wise) in terms of depth &width has to
be worked upon as we noticed & tracked through FRA’s
(fitting room assistant) that maximum loss of sale (almost
30%) happens due to size / color unavailability.
- Ratio analysis of sizes has to be done intensely brand wise
to decide on size set per option.
- Various looks as per the trend will be created to promote
ensemble buys backed by wardrobe displays across brands
on floor.
- Categorization at SKU level has to be done on BCG model
showed in next slides.
Categorization – Brand Level (BCG)
Niches Stars
Dogs
Traffic
Builders
Low Bill
Penetration
High Bill
Penetration
High Sales Value / GMROF
Low Sales Value/ GMROF
PRODUCT
FF Conversion NOBs ABV
STARS HIGH HIGH HIGH HIGH
TRAFFIC
BUILDERS
HIGH HIGH HIGH LOW – MED
NICHES LOW MED - HIGH LOW - MED MED – HIGH
DOGS LOW LOW LOW LOW
PRODUCT
Categorization – Brand Level
KPI matrix based on BCG
PEOPLE
PEOPLE
- Right trainings (Product/Sales & Service) will make the
staffs more effective, their sales skills & rigor to do add-on
create visible impact on topline.
- Building culture of going extra mile, this attitude will take
the customer experience to next level & force them to
come back to store again with high loyalty quotient.
People is the biggest differentiator, revenue generator & brand
ambassadors of the retail stores.
High
Income
Middle
Income
Low Income
50 Million
(5%)
318 million
(27%)
2005 2015
Middle Income
583 million
(41%)
2025
PROPOSITION
PROPOSITION
- This swell in the middle income group is the biggest
indicator to decide on value - price equation for healthy
merchandise VFM .
- More than 65% of country’s population is below the 35yrs
indicates the importance of fashionable product in the
merchandise mix.
PROMOTION
PROMOTION
- Positioning can be created through effective
communication & it’s mandate to build the brand which
revolves around fashion & youth as the more than half of
the population of country age is below 30.
- Well thought tactical promos will not only help to grab the
bigger wallet share of the customer but also to build
property like Big Bazaar’s Sabse Saste Din to pull the mass.
Promotion implies to the positioning & communication in retail mix,
brand building exercise like goodwill & recall can be achieved through
this.
PLACEMENT
PLACEMENT
- From instore perspective in departmental store context,
brand adjacencies will play very important in terms of
zoning across various departments/sections.
- To create right balance between private label vs. NB
which in turn resulted into desired MARGINS.
- Traffic flow & Customer circulation pattern.
- Apt size of the store makes bottom line green faster.
Location or Place is the least flexible constraint in retail mix & plays
vital role in the success of any retail business.
INFERENCE
 Assortment of Merchandise (range, width &
depth)
 VFM of Merchandise
 Brand Adjacencies /Placements
 Planogram/Lay outing
 Upselling & Add-ons
 VM to promote wardrobe & self service displays
 Stock Availability in shelf
 Price call out communication & Offers
So, the determinants of the project to take the Avg. Cash Memo
UP are as below.
Work rigorously with consistency on the above pointers & by keeping
basics right will definitely produce desired RESULTS.
THANK YOU
By – Mohammad Tauseef

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Average ticket value - Retail stores

  • 1. IMPACT – make a difference Purpose of the project – To improvise the operational efficiency of the Departmental Store through uplifting the Avg. Cash Memo size almost by 20% from current & to be precise from Rs. 2500/- to Rs. 3000/-.
  • 2. System VendorsLogistics Placement (Size, Location, Layout & Design, Brand adjacencies) Product (Style, Fashion, Assortme Offering) Promotion (Communication & Positioning) Proposition – value (Price & Quality) People (Service, Knowledge, Environment) Retail 5P’s
  • 3. PRODUCT As there is a saying that if 5 P’s of retail mix integrates well for your business model then the most needed & required 6th P will automatically comes i.e. PROFIT. So, lets begin our study with PRODUCT - Assortment (brand wise) in terms of depth &width has to be worked upon as we noticed & tracked through FRA’s (fitting room assistant) that maximum loss of sale (almost 30%) happens due to size / color unavailability. - Ratio analysis of sizes has to be done intensely brand wise to decide on size set per option. - Various looks as per the trend will be created to promote ensemble buys backed by wardrobe displays across brands on floor. - Categorization at SKU level has to be done on BCG model showed in next slides.
  • 4. Categorization – Brand Level (BCG) Niches Stars Dogs Traffic Builders Low Bill Penetration High Bill Penetration High Sales Value / GMROF Low Sales Value/ GMROF PRODUCT
  • 5. FF Conversion NOBs ABV STARS HIGH HIGH HIGH HIGH TRAFFIC BUILDERS HIGH HIGH HIGH LOW – MED NICHES LOW MED - HIGH LOW - MED MED – HIGH DOGS LOW LOW LOW LOW PRODUCT Categorization – Brand Level KPI matrix based on BCG
  • 6. PEOPLE PEOPLE - Right trainings (Product/Sales & Service) will make the staffs more effective, their sales skills & rigor to do add-on create visible impact on topline. - Building culture of going extra mile, this attitude will take the customer experience to next level & force them to come back to store again with high loyalty quotient. People is the biggest differentiator, revenue generator & brand ambassadors of the retail stores.
  • 7. High Income Middle Income Low Income 50 Million (5%) 318 million (27%) 2005 2015 Middle Income 583 million (41%) 2025 PROPOSITION PROPOSITION - This swell in the middle income group is the biggest indicator to decide on value - price equation for healthy merchandise VFM . - More than 65% of country’s population is below the 35yrs indicates the importance of fashionable product in the merchandise mix.
  • 8. PROMOTION PROMOTION - Positioning can be created through effective communication & it’s mandate to build the brand which revolves around fashion & youth as the more than half of the population of country age is below 30. - Well thought tactical promos will not only help to grab the bigger wallet share of the customer but also to build property like Big Bazaar’s Sabse Saste Din to pull the mass. Promotion implies to the positioning & communication in retail mix, brand building exercise like goodwill & recall can be achieved through this.
  • 9. PLACEMENT PLACEMENT - From instore perspective in departmental store context, brand adjacencies will play very important in terms of zoning across various departments/sections. - To create right balance between private label vs. NB which in turn resulted into desired MARGINS. - Traffic flow & Customer circulation pattern. - Apt size of the store makes bottom line green faster. Location or Place is the least flexible constraint in retail mix & plays vital role in the success of any retail business.
  • 10. INFERENCE  Assortment of Merchandise (range, width & depth)  VFM of Merchandise  Brand Adjacencies /Placements  Planogram/Lay outing  Upselling & Add-ons  VM to promote wardrobe & self service displays  Stock Availability in shelf  Price call out communication & Offers So, the determinants of the project to take the Avg. Cash Memo UP are as below. Work rigorously with consistency on the above pointers & by keeping basics right will definitely produce desired RESULTS.
  • 11. THANK YOU By – Mohammad Tauseef