The document provides details about a proposed small departmental store called ADAM Departmental Store. It discusses the store's location in a commercial area that is still developing, its target market of families and young people in the nearby housing area, and its positioning as fulfilling daily needs conveniently. The document also outlines the store's functions, product categories, services, pricing, promotions, layout, employees, and goals of establishing positive customer relationships through loyalty programs and feedback.

1. Functions performed by our retail store
There are few functions performed by our retail store:
 Providing assortment: we provide a wide range of assortment to our
customers.
 Breaking bulk: we buy from our suppliers in bulk quantities and further sale
to our customers according to their needs.
 Holding inventory: we will hold some inventory in our warehouse to increase
the utility value of goods by providing a mean to have the right products
available at the right place in the right time.
Type of retail store
After a research we decided to open a small level departmental store which
includes grocerysection, vegetable section, cutlery items, electronic items and
a small portion of meat and freshly baked items like pizza. Our store name is
ADAM Departmental Store and its location is in the commercial market of
PIA road near Wapda town. As the area is developing we bought a plot and
constructed our store outlet according to our needs. There are already
established few stores butas the area is growing we canhave a profitable store
due to more capacity requirements of new store in the area. We can capture a
lot of houses within our target market because they can easily purchase
productfrom us, because we are a few miles away from them at the premium
location of the commercial market.
Customer buying behavior
We did a long research and came to a conclusion by following the various steps
 Need recognition
In this step we identify why customer want to visit our store and which basic
need we can easily satisfy of our customers? The answer to the problem was
that customer can come to us to satisfy their utilitarian need like purchasing
the things which can be used in daily home life and in cooking food or
sometimes can have the fast food other than visiting especially the fast food
chains they can get grocery and things along with the meal from same spot.

2. And the young customers also buy the electronic items and we will be
installed free software in the laptops.
 Information search
As there are few stores already developed in the location but as the area is growing
there was a need of new stores to cater more customers. Here we should consider a
good behavior with our customers as they can easily switch to competitors. We need
to spread a positive word of mouth. So that we could even grab the competitors
customers towards us. As the word of mouth bring you a huge amount of customers.
Reduce information search
We have restricted our customers’ information aboutcompetitors byproviding them
excellent service. And an option of free deliver on purchaseof meat items where do
not need to wait for the process of meat preparation they can just order and pay
afterwards our store boys could deliver the products to customers home.
Evaluation of alternative
As we have opened a grocery store against our competitors so our store evaluation
is done mostly on these characteristic. This is according to our target market.
Store characteristic
 Grocery and electronic 10% below
 Delivery cost 0
 Check out time 3 to 4 min
 Number of products, sizes and brands 55,000
 Fresh products yes
 Ease of finding product easy
Belief about performance

3. Performance
Benefits
ADAM Shoppers Local Area
Located
Stores
Economy 10 9 7
Convenience 9 8 7
Assortment 8 6 4
Product Information 8 6 5
In orderto checkour performance of the storewe conducted asmall play against our
competitors.
Young Ones
Economy 6
Convenience 10
Assortment 7
Product Information 9
Parents with children
Economy 10
Convenience 8
Assortment 8
Product Information 7
For Young Ones
Performance Benefits Adam shoppers Local
Stores
Economy 6 60 54 42
Convenience 10 90 80 70
Assortment 7 56 42 28
Product Information 9 72 54 45
Total 278 230 185
For Parents with children:

4. Performance Benefits Adam shoppers Local
Stores
Economy 10 80 90 70
Convenience 8 72 64 56
Assortment 8 64 48 32
Product Information 7 56 42 35
Total 272 244 193
So we came to a conclusion our store is likely to be appreciated by a family and
young ones with our target market through which we can turn into a profitable store
than our competitor.
Post purchase evaluation
Purchasing does not end with the selling the product. It also involves feedback from
the customer. So our post purchase evaluation results were quite good. Our
customers were quite satisfied from our products as we are dealing with fresh
products. Our inventory level is maintained on regular basis. We try to never short
off the products.
RETAIL MIX
TYPE OF MERCHANDISE
Our retail format is small level departmental store with good width and average
depth of assortment; average to good quality, including mainly grocery section,
vegetable section and we will be installed free software in the laptops, as we are
dealing in items which are regularly used in homes in daily routine life like cutlery
items, sports items, stationary and electronic items.
SERVICES OFFERED
We will provide below mentioned services to our customers:
Touch and feel before buying
We give our customer an opportunity to test the product.

5. Home Delivery
We will provide free home delivery to our customers for their ease.
PRICING POLICY
Standard pricing policy will be applied so that people from all the classes like
middle, upper middle and high class can buy from us. But initially and occasionally
we will provide special discounts to our loyal customer.
PROMOTION
We will go for flyers, vertical banner, sponsorships (publicity), streamers etc. for
our promotion purpose.
STORE DESIGN AND DISPLAY
Our store layout will be grid layout in which merchandise will be displayed on
shelves on both sides. Cash registers or computers will be located at the entrance/
exit of the store. Some impulse products were located at the counter area when
customer checking out. Our store layout will be attractive and eye catching.
CUSTOMER SERVICES
We will provide excellent customer services to our customers in order to maintain
good relationships with them. We will showempathy to ourcustomers so that would
feel like they are valued by us. We will provide immediate response to our
customer’s queries.
Location
Our retail store’s location is in the commercial market of PIA road near the Wapda
town for retail store due to our target market’s ease of access, PIA road is
commercial area that’s why it is attractive for our store, competition is less in PIA
road becausethere is only three storethat is operating in whole locality so it is easier
for us to captureour target market, there is no competition. The Adams departmental
store only gives the electronic and baked items.
TARGET MARKET

6. Our target market is people of PIA society, Wapda town and their nearby locations.
POSITIONING STRATEGY
We are going to position our retail store as a departmental store that will fulfill the
needs of the customer by giving them ease and high quality services. Our aim is to
make this store a family oriented store and also young ones as well as giving them
peace and good environment for shopping.
SUSTAINABLE COMPETITIVE ADVANTAGE
Our sustainable competitive advantage includes our location and CRM. We are
always ready to give customers excellent services and warm welcome. Our main
sustainable competitive advantage is our HRM which will make us better than
others. We are determined to build strong relationships with our customers and
suppliers and achieve efficient internal operations through effective HRM practices.
These are the key to our long term financial performance.
Organizational Structure
We have 7 persons working at our store. We have one very trustworthy cushier at the counter. As
we have 2 check counters were 2 persons have the duty and provide the facility of installation of
software’s in the laptops. One chef who is at freshly baked item corner and one who is at the meat
corner. And other two manage the shelving and provide the products to the customer’s cars. One
sweeper and a delivery boy. To check them all we too visit the store ourselves on and off.
CRM Programs
We have also implemented customer relationship management in our retail store. We have
installed software in our system. As the purchasing is done we record the contact numbers of our
customers and the home address.
Reporting System
Every employee report to the cushier at the counter who forward the details to owner.
As the owner is not present always the cushier who is acting as a manager too he take the quick
decisions on behalf of the owner applying the de-centralized approach, if at any level employees
had to respond to the customers immediately they can do so.
Loyalty Programs:

7. At the end of every month through SMS we will tell our prospective customer that these products
are available at this rate.
Retail store site selection and location
We have selected PIA road wapda town for retail store due to the
following condition
Accessibility: For our target market it is easily accessible. Road
Conditions is also very good and there is no barrier.
Type of Shopping Area:
Shopping area is very good because of commercial area so it is attractive
as well.
Type of Store:
It is a small level departmental store which is currently fulfilling the
utilitarian needs of the target market.
 Economic condition
The area was dense populated economic condition would be normal and
with the passage of time it will develop more.
 competition
Competition is very less in PIA road wapda town
 Strategic fit
The site was strategically fit because it had an ample space The space
was enough if sometimes large number of customers comes at a store.
It would not be problem.
 Operating cost

8. The operating cost of the shop is rs 30000. We easily cover this amount
after deducting all other expenses of our store.
Characteristic of our selected location
Traffic flow
The traffic flow is very good. Every time car passes in front of our stores before
going to their houses.
Parking
There is properparking where people canpark their cars and comfortably do their
shopping in the store. They don’t need to be in hurry in store.
Visibility
Visibility is quite clear. You can see easily from a distance. There is no building
in front of it that somebody faces difficulty in searching for it.
Issues in HR
Expense control
As a retailer we will try to hire employees who are less experienced so
we can pay them the low wages but on the other hand it can prove
dangerous for our store. It can cause loss of customer.
Part time employees
We don’t hire part time employees because they are not trained. They
don’t have enough experience. Right now our store is also at small level.
It is also very difficult to manage part time employees and their wages.
Employee Demographic:

9. We will hire young and active employees because young employees are
more energetic and active they can do more physical work.
Training:
Training is an essential part of employee development. Better training and
education of employees to ensure you to-do their best.
Retail Communication mix
Objectives:
 Our objectives will be to create brand awareness
 To convey our company’s mission and vision
 Why we are different from others
 Our strict policies regarding quality
 Packages, memberships, discounts
 Special events
Positioning:
To create a positive image and to be in customers consideration set.
Our target market:
Our potential customers who live near to our store and who want all things under
one roof.
Communication goals:
 To increase market share
 To increase sales
 Positive word of mouth

10.  Make customers loyal
 Grab more potential customers
Marketing budget:
 Our aim would be to get more sales than the money that we will spend on
marketing expenditures.
 We would mostly spend our money on billboards that are located in the areas
near our store.
 We would use direct mails as their cost is low.
 Social media would be on our priorities like Facebook etc.
 We will drop catalogs in different houses located in areas near our store.
 Positive word of mouth.
Total allocation of resources:
Advertisement 500,000
Initial purchase of electronics from vendors 10,0000
Initial purchase of bakery items from vendors 500,000
Initial purchase of grocery items, food items and
vegetables
18,000,00
Initial purchase of fresh meat from vendors 400,000
Store design and installations 20,000,00
Advance rent for 8 months 24,000,000
Initial salaries for employees 400,000
Bills and other expenses 400,000
Total cost 94,00,000

11. Store layout design
Our store layout will be grid layout in which merchandise will be displayed on
shelves on both sides. Cash registers or computers will be located at the entrance/
exit of the store. Some impulse products are located at the counter area when
customer checking out.
Visual merchandise
Item and size presentation
We have placed the products belonging to same category in the same line so
customer feel ease while shopping for it. Forexample if we talk about the electronic
products laptops, LEDs, CDs and table stands are arranged in the same row because
these things are interlink with each other.

12. Lighting effect
We will try to use more and more lights in the store so that visibility of the
products are clear to the customer.
Customer service
Forcustomer service we will use different charts at the start of the row which things
are available in which racks.
Responsiveness
Customers would be immediately given the service if they have purchased a wrong
productfrom us. It would be quickly replaced by our employees no matter we have
to give them product delivery at home.
Listen to the customer
We would listen to customer what the customer basically need from us because
sometimes we have the product which the consumer is finding but he has doubt in
mind. Clear his mind and make him purchase his or her desired product. We would
act like an advisor to him.