SALES & RETAIL MANAGEMENT
INTRODUCTION
WHAT IS RETAILING ??
 Retail industry is divided in to organized and unorganized sectors.
 Over 10 million outlets operate in the country and only 5% of them being larger than
600 sq. ft in size.
 Organized retailing in India is projected to grow at a rate of 25-30% p.a., is estimated
to grow to $ 735 billion by 2015.
 Retailing is emerging as a sunrise industry in India and is presently largest employer
after agriculture. Some economists say that retailing is one of the pillars of the

economy in India, and some say it is the gold mine of Indian economy.
MEGA MART
 Mega Mart entered into retail clothing sector because of Arvind Mills and now
Mega Mart is flagship of Arvind Mills, M&M gets its stock from Arvind Mills,
Bangalore.
 Mega Mart Retail ltd is a Lal Bhai group enterprise, It is headed by Lal Bhai and
his sons Srikanth and Charan .

 It is India’s leading retailer that operates in multiple formats.
 The company operates across 70 cities in India and has huge employee base.
MEGA MART RETAIL FORMAT
ARAVIND
RETAIL LTD

MEGAMART
SMALL
FORMAT
MEGA MART SMALL FORMAT

2000 – 6000 sq. feet

25 private brands
Limited product category

MEGAMART
BIG FORMAT

MEGA MART BIG FORMAT

35000 -65000 sq. feet

200 private brands
Wide range of product category
LOCATION ANALYSIS
Mega mart usually chooses prime city locations
 SHOPPING MALLS
 CBD [CENTRAL BUSINESS DISTRICT]
 PRIME STREET AREAS
 COLLEGE JUNCTIONS
CUSTOMER SEGMENTATION
 KIDS WEAR,


MEN’S WEAR,



WOMEN’S WEAR,

 SPORTS WEAR,
 HOUSE APPARELS,


FOOT WEAR,



ACCESSORIES ( SUN GLASSES, PERFUMES , WALLETS, ELECTRICAL
APPLIANCES, WATCHES,)
SUPPLY CHAIN MANAGEMENT
 Mega mart has an efficient supply chain system, because it has network all over India. It
saves and decreases it costs with efficient supply chain system.
 Mega mart main branch is in Bangalore. Main branch receives the stock from Arvind mills.

 Every Mega Mart store uses online software which tracks the opening stock and closing
stock.
 Based on the sales the stores will get the stock from main branch where the stock is stored.
 If any branch wants stock they can also keep order. Generally every branch will get the
stock once in a week.
MERCHANDISE MANAGEMENT
Mega mart has access to huge brands in small stores it maintains upto 25 private brands limited
product category & in large stores 200 private brands are available with wide range of product
category.

 WRANGLER,

 FLYING MACHINE,

 LOUIS PHILLIPIE,

 LEE,

 PEPE JEANS,

 EXCALIBUR,

 LEVIS,

 RUGGERS,

 BEL MONTE,

 FAST TRACK

 CELEBRITY,

 INDIGO NATION

 PARK AVENUE

 PETER ENGLAND ,  REID & TAYLOR

 CHEROKEE,

 ALLEN SOLLY ,

 SCULLERS
STORE LAYOUT AND DESIGN

 Mega mart has grid layout, due to place constraints they follow this
type of layout and design system.
 Back room: In Mega Mart the store room /back room are at the
backside of the store where all the excess stock will be stored there.

 Aisles: The aisles here are not large to accommodate peak crowd.
One/two customers with their tally can pass through the Aisles.
Contd..

 Billing Counters: space at the billing counter is maintained enough so that many
customers will come for billing at a time and thus this reduces the confusion. And billing
counter is at entrance so customers can go easily.
 Shrinkage Prevention: As there would be no old/excess stock there are very less chances
for store shrinkage in Mega Mart, because they always keep stock update.
 Merchandise design: All the racks are make sure to fill up with the products very soon
after they are finished and products of same category are made available to the customers
at certain location and thus helping the customers in their purchase.
SALES PROMOTIONS
 Birthday Offers To Individual Customer
 Hand Pamphlets ,
 News Paper Ads On Week Ends
 Festival Season Promotions
 Email, Mobile Promotions

 Mobile App Pop Ups
PRICING STRATEGY FOLLOWED

 Mega Mart is a discount Store it follows one pricing policy.

 They will give discount up to 50% on MRP and add 4% VAT tax on MRP. In
Mega Mart we will get discounts every day. We can find special discounts on
festival days and week ends.
 When the stock is not moving out from the store or if the management is
unable to sell any particular product then they keep offers like buy 1 get 2

free, 50 % off, buy 1 get 1 etc.
PRICE ADS
SWOT ANALYSIS
STRENGTHS
 Financially sound & Competitive advantage in terms of the retail locations of the store.

 The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.
 Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all
customers.

 Contributes to a very large market size.
 The store signed in youth icons and with working professionals in ads with models.
 Mega mart has a huge loyal customer base & customers are highly satisfied with the store.
 Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.
SWOT ANALYSIS
STRENGTHS
 Financially sound & Competitive advantage in terms of the retail locations of the store.

 The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.
 Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all
customers.

 Contributes to a very large market size.
 The store signed in youth icons and with working professionals in ads with models.
 Mega mart has a huge loyal customer base & customers are highly satisfied with the store.
 Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.
WEAKNESS
• Lack of differentiation
• Visual merchandising of the store demands a great amount effort. The
product are displayed in a very geometrical pattern creating a huge but
brush effect and sending across a message that the merchandise is
comparable to FMCG products.
• Small stores are not able to attract customers as the brands available are less.
OPPURTUNITIES
 Fresh stock at

low price and thus trying to differentiate from other

competitors.
 Customers who demand fashion merchandise with high and medium on
quality available at accessible price to patronize the store.
 It can TARGET TIER II AND TIER III cities of the country and can adopt a
market penetration strategy.
 The store offers in-house labels and thus has freshness associated with it.


To convert brand loyalty into brand equity
THREATS
 Negligible awareness about the presence of store in cities where the store is not present.
 The company is started in a time when retailing is booming attracting lot of competition
from various other players

 It has positioned itself for premium, middle income consumers it should also concentrate
on lower middle income people.
 Mega mart faces cut throat competition from stores like “lifestyle, Pantaloons, and

Shoppers Stop, reliance trends” respectively. These are well established in the market
and grabbed a good market share.
PORTERS ANALYSIS OF MEGA MART
SUBSTITUTES

BARGAINING
POWER OF
SUPPLIER

RIVALRY
AMONG
COMPETITOR
SELLERS

NEW
ENTRANTS

BARGAINING
POWER OF
BUYER
ROLE OF STORE MANAGER ??
 To check inventory levels.
 To forecast demand for brands.
 To analyze which brands are fast moving and slow.
 To check employee work force.

 To maintain proper customer database and use it to build CRM.
 To have proper channels of SCM.
 To predict when to use push and pull strategies.
E COMMERCE IN RETAIL
 Mega mart is having its own website and in which all the product
details of different level customers are mentioned with different
catalogues.
 Mega mart doesn’t focus on much in E commerce sales as it believes
apparel shopping is best done by experiencing especially by INDIAN
middle class consumers.
INVENTORY MANAGEMENT
 Mega Mart store use online technology through which they can know

availability of stock. They use bar code scanner.
 They use customized technology called JDS Software
CLEARANCE & DISCOUNT SALE
Mega mart stores clearance and discount sales are available throughout
the year.

 During end of every climatic season there will be clearance sales.
 When sales are down in certain off season clearance sales &
discounted sales will be put up.
 Discounted sales will be available during festive seasons and

month ends with attractive offers.
CUSTOMER RELATIONSHIP MANAGEMENT [CRM]
 Mega mart focuses collecting data base from each of its customers through a
structured questionnaire.
 Mega mart issues its own style of value card to its customers in order to maintain

database and also keep track of customer shopping's in its various outlets.
 Mega mart informs its loyal customers through special individual offers through
mails and messages.

 Mega mart also gifts its customers on their special occasions like birthdays,
anniversary's etc.
By
SATHVIK H P
SHASHI KUMAR M R

Mega mart sales and retail management

  • 1.
    SALES & RETAILMANAGEMENT
  • 2.
    INTRODUCTION WHAT IS RETAILING??  Retail industry is divided in to organized and unorganized sectors.  Over 10 million outlets operate in the country and only 5% of them being larger than 600 sq. ft in size.  Organized retailing in India is projected to grow at a rate of 25-30% p.a., is estimated to grow to $ 735 billion by 2015.  Retailing is emerging as a sunrise industry in India and is presently largest employer after agriculture. Some economists say that retailing is one of the pillars of the economy in India, and some say it is the gold mine of Indian economy.
  • 3.
    MEGA MART  MegaMart entered into retail clothing sector because of Arvind Mills and now Mega Mart is flagship of Arvind Mills, M&M gets its stock from Arvind Mills, Bangalore.  Mega Mart Retail ltd is a Lal Bhai group enterprise, It is headed by Lal Bhai and his sons Srikanth and Charan .  It is India’s leading retailer that operates in multiple formats.  The company operates across 70 cities in India and has huge employee base.
  • 4.
    MEGA MART RETAILFORMAT ARAVIND RETAIL LTD MEGAMART SMALL FORMAT MEGA MART SMALL FORMAT 2000 – 6000 sq. feet 25 private brands Limited product category MEGAMART BIG FORMAT MEGA MART BIG FORMAT 35000 -65000 sq. feet 200 private brands Wide range of product category
  • 5.
    LOCATION ANALYSIS Mega martusually chooses prime city locations  SHOPPING MALLS  CBD [CENTRAL BUSINESS DISTRICT]  PRIME STREET AREAS  COLLEGE JUNCTIONS
  • 6.
    CUSTOMER SEGMENTATION  KIDSWEAR,  MEN’S WEAR,  WOMEN’S WEAR,  SPORTS WEAR,  HOUSE APPARELS,  FOOT WEAR,  ACCESSORIES ( SUN GLASSES, PERFUMES , WALLETS, ELECTRICAL APPLIANCES, WATCHES,)
  • 7.
    SUPPLY CHAIN MANAGEMENT Mega mart has an efficient supply chain system, because it has network all over India. It saves and decreases it costs with efficient supply chain system.  Mega mart main branch is in Bangalore. Main branch receives the stock from Arvind mills.  Every Mega Mart store uses online software which tracks the opening stock and closing stock.  Based on the sales the stores will get the stock from main branch where the stock is stored.  If any branch wants stock they can also keep order. Generally every branch will get the stock once in a week.
  • 8.
    MERCHANDISE MANAGEMENT Mega marthas access to huge brands in small stores it maintains upto 25 private brands limited product category & in large stores 200 private brands are available with wide range of product category.  WRANGLER,  FLYING MACHINE,  LOUIS PHILLIPIE,  LEE,  PEPE JEANS,  EXCALIBUR,  LEVIS,  RUGGERS,  BEL MONTE,  FAST TRACK  CELEBRITY,  INDIGO NATION  PARK AVENUE  PETER ENGLAND ,  REID & TAYLOR  CHEROKEE,  ALLEN SOLLY ,  SCULLERS
  • 9.
    STORE LAYOUT ANDDESIGN  Mega mart has grid layout, due to place constraints they follow this type of layout and design system.  Back room: In Mega Mart the store room /back room are at the backside of the store where all the excess stock will be stored there.  Aisles: The aisles here are not large to accommodate peak crowd. One/two customers with their tally can pass through the Aisles.
  • 10.
    Contd..  Billing Counters:space at the billing counter is maintained enough so that many customers will come for billing at a time and thus this reduces the confusion. And billing counter is at entrance so customers can go easily.  Shrinkage Prevention: As there would be no old/excess stock there are very less chances for store shrinkage in Mega Mart, because they always keep stock update.  Merchandise design: All the racks are make sure to fill up with the products very soon after they are finished and products of same category are made available to the customers at certain location and thus helping the customers in their purchase.
  • 11.
    SALES PROMOTIONS  BirthdayOffers To Individual Customer  Hand Pamphlets ,  News Paper Ads On Week Ends  Festival Season Promotions  Email, Mobile Promotions  Mobile App Pop Ups
  • 12.
    PRICING STRATEGY FOLLOWED Mega Mart is a discount Store it follows one pricing policy.  They will give discount up to 50% on MRP and add 4% VAT tax on MRP. In Mega Mart we will get discounts every day. We can find special discounts on festival days and week ends.  When the stock is not moving out from the store or if the management is unable to sell any particular product then they keep offers like buy 1 get 2 free, 50 % off, buy 1 get 1 etc.
  • 13.
  • 14.
    SWOT ANALYSIS STRENGTHS  Financiallysound & Competitive advantage in terms of the retail locations of the store.  The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.  Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all customers.  Contributes to a very large market size.  The store signed in youth icons and with working professionals in ads with models.  Mega mart has a huge loyal customer base & customers are highly satisfied with the store.  Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.
  • 15.
    SWOT ANALYSIS STRENGTHS  Financiallysound & Competitive advantage in terms of the retail locations of the store.  The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level.  Merchandise is fashion oriented & is targeted towards the family house holds and youth attracts all customers.  Contributes to a very large market size.  The store signed in youth icons and with working professionals in ads with models.  Mega mart has a huge loyal customer base & customers are highly satisfied with the store.  Mega mart enjoys the good will and reputation earned by the Arvind mills over the years.
  • 16.
    WEAKNESS • Lack ofdifferentiation • Visual merchandising of the store demands a great amount effort. The product are displayed in a very geometrical pattern creating a huge but brush effect and sending across a message that the merchandise is comparable to FMCG products. • Small stores are not able to attract customers as the brands available are less.
  • 17.
    OPPURTUNITIES  Fresh stockat low price and thus trying to differentiate from other competitors.  Customers who demand fashion merchandise with high and medium on quality available at accessible price to patronize the store.  It can TARGET TIER II AND TIER III cities of the country and can adopt a market penetration strategy.  The store offers in-house labels and thus has freshness associated with it.  To convert brand loyalty into brand equity
  • 18.
    THREATS  Negligible awarenessabout the presence of store in cities where the store is not present.  The company is started in a time when retailing is booming attracting lot of competition from various other players  It has positioned itself for premium, middle income consumers it should also concentrate on lower middle income people.  Mega mart faces cut throat competition from stores like “lifestyle, Pantaloons, and Shoppers Stop, reliance trends” respectively. These are well established in the market and grabbed a good market share.
  • 19.
    PORTERS ANALYSIS OFMEGA MART SUBSTITUTES BARGAINING POWER OF SUPPLIER RIVALRY AMONG COMPETITOR SELLERS NEW ENTRANTS BARGAINING POWER OF BUYER
  • 20.
    ROLE OF STOREMANAGER ??  To check inventory levels.  To forecast demand for brands.  To analyze which brands are fast moving and slow.  To check employee work force.  To maintain proper customer database and use it to build CRM.  To have proper channels of SCM.  To predict when to use push and pull strategies.
  • 21.
    E COMMERCE INRETAIL  Mega mart is having its own website and in which all the product details of different level customers are mentioned with different catalogues.  Mega mart doesn’t focus on much in E commerce sales as it believes apparel shopping is best done by experiencing especially by INDIAN middle class consumers.
  • 22.
    INVENTORY MANAGEMENT  MegaMart store use online technology through which they can know availability of stock. They use bar code scanner.  They use customized technology called JDS Software
  • 23.
    CLEARANCE & DISCOUNTSALE Mega mart stores clearance and discount sales are available throughout the year.  During end of every climatic season there will be clearance sales.  When sales are down in certain off season clearance sales & discounted sales will be put up.  Discounted sales will be available during festive seasons and month ends with attractive offers.
  • 24.
    CUSTOMER RELATIONSHIP MANAGEMENT[CRM]  Mega mart focuses collecting data base from each of its customers through a structured questionnaire.  Mega mart issues its own style of value card to its customers in order to maintain database and also keep track of customer shopping's in its various outlets.  Mega mart informs its loyal customers through special individual offers through mails and messages.  Mega mart also gifts its customers on their special occasions like birthdays, anniversary's etc.
  • 25.