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 BIG FORMAT

MEGAMART SMALL FORMAT

MEGA MART SMALL FORMAT MEGA MART BIG FORMAT

2000 – 6000 sq. feet 35000 -65000 sq. feet

25 private brands 200 private brands Limited product category Wide range of product category

MEGA MART SMALL FORMAT MEGA MART BIG FORMAT

2000 – 6000 sq. feet 35000 -65000 sq. feet

25 private brands 200 private brands Limited product category 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

WRANGLER,

LEE,

LEVIS,

FAST TRACK

PARK AVENUE

CHEROKEE,

FLYING MACHINE,

PEPE JEANS,

RUGGERS,

CELEBRITY,

PETER ENGLAND ,

ALLEN SOLLY ,

LOUIS PHILLIPIE,

EXCALIBUR,

BEL MONTE,

INDIGO NATION

REID & TAYLOR

SCULLERS

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.

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

BUYER

RIVALRY AMONG

COMPETITOR SELLERS

NEW ENTRANTS

BARGAINING POWER OF SUPPLIER

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