1. DR. CAMIL BULCKE PATH, RANCHI
__________________________________________________________________________
A project report
On
Group- Prof. A.R .Bodra
Aman Manish Lakra 07 Nishant Sinha 25 HOD, Marketing
Saurabh Sagar 32 Sumedha Sonal 53 XISS, Ranchi
Prateek Anand Singh 60
[Department of Marketing] Prof. Subhajit Bhattacharya
2. We express our sincere gratitude to Mr. A. R. BODRA HOD Marketing, XISS
for providing us an opportunity to work on this project. We are very
grateful for their constant support and guidance throughout the duration
of this project. We also express my sincere thanks to MR. ATUL MINOCHA,
the owner SHOPPERS' MART, Ranchi for providing us vital information
which results in successful completion of this project. The project provides
us the fundamental and practical knowledge and idea of how a retail shop
works.
We also like to thanks Prof. SUBHAJIT BHATTACHARYA for his continues
support and guidance.
Thank you
Regards,
Aman Manish Lakra 07
NishantSinha 25
SaurabhSagar 32
SumedhaSonal 53
PrateekAnand Singh 60
(Marketing, XISS, 2011-13)
3. Sel. No. TOPIC PAGE No.
01 About the retail outlet 01
02 Logistics model of SHOPPERS MART 01
03 Order booking process 01
04 Logistics model (Flow chart) 02
05 Shopper’s Mart Business model 03
06 Generation of profits 03
07 Monthly Expenditure 03
08 Strategy – Branding, Promotion, Marketing 04
09 Competition 04
10 Customer Relationship Management (CRM) 04
4. Shoppers' Mart is a retail outlet in Ranchi with a wide range of men’s, women’s and
children’s apparel, sportswear, denim, and a range of licensed products such as
accessories, fragrances and footwear. It is located at Roshpa Tower, Main Road, Ranchi.
Mr. Atul Minocha is the owner of the store. All the departments are handled by the
Head Sales assigned for every department.
Shoppers' Mart does not manufacture any product; they procure them from all over the
country. Some of the major places from where the products are procured are Delhi,
Mumbai, Kolkata and Bangalore.
Shoppers' Mart does its inventory management through software called Ginesys. Once
there is a shortage of any product, an individual from the store goes to the place from
where he has to procure the products. Agents are available to provide the product on
behalf of company and they act as a bridge between the retailer and the supplier. These
agents are known as commission agents and they earn around 1% on every transaction.
Once the order is booked the supplier arranges for the products to be shipped.
Shoppers' Mart only uses road transport. The order takes around 2 to 5 days to be
delivered the outlet. All the products are insured by the suppliers. They have an in house
go down for the storage of shipments. Some of the Logistics agencies that Shoppers'
Mart has a tag up with are:
DELHI - PATEL LOGISTICS
KOLKATA - BR LOGISTICS
BANGALORE - PATEL LOGISTICS
MUMBAI - TRIED LOGISTICS
Suppliers give 15 to 20 days for the payment to be made to them.
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5. Bargaining with suppliers depends upon the personal terms that the retail outlet has
with them. If the retailer is giving discount of 20% they go with 10% contribution of
each. Some of the major suppliers are:
ADITYA BIRLA GROUP
ARVIND MILLS
MADURA GARMENTS
DELHI
TRANSPORTATION
MUMBAI End
AGENT Consumer
TRANSPORTATION
BANGALORE
IMPLICATION OF VARIOUS TAXES
Put this in a table
TAX RATES
Central Sales tax 1%
VAT 5%.
02
6. MULTI BRAND RETAIL OUTLET
The basic model of the store is of a complete family store. Shoppers' Mart is a six years
old outlet. The outlet is of the same fraternity as Ved Textiles and Apparels. It has a sole
purpose of serving the whole family with a wide range of Branded and Non Branded
apparels and accessories. It has different sections for Men, Women and Children. There
are Head Sales for all the sections. The store hires in sales men of minimal qualifications
because of which they have a very high attrition rate. All the sales men report to the
Head Sales of their respective departments. The whole essence of the business lies in
the procurement of products from different suppliers and from different places so that
the customers get all the choices under one roof. Some of the major brands are Allen
Solly, Peter England, John Players, Van Heusen and Park Avenue.
STORE LAYOUT
The floor size of the store is 18000 sq. feet. The different sections are:
MEN Apparels - Clothing (Branded and Non Branded).
Accessories - Wallet, Belts and Watches.
WOMEN Apparels - Clothing (Indian, Ethnic and Western)
Accessories - Watches, Cosmetics, Footwear.
CHILDREN Apparels and Footwear.
The store has two floors out of which the Ground floor has Accessories (for men and
women), Cosmetics, Footwear, Sarees.
The first floor has Menswear, Ladieswear and Kidswear.
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7. Since its inception six years back the outlet has doubled its turnover. The outlet was
started with keeping in mind the demands of the whole family. With time the store has
increased its range of products. The major revenue is generated through the Men's
section. The sales volume increases at the time of sale/festive season. Every year
thetarget is to at least reach the last year's revenue level. The store also helps the
suppliers in stock clearance. At these times they even get discounts up to 50% from the
suppliers. For the store, concept of sale is a kind of festival. The margin of the retail store
is approximately 25%, exclusive of VAT (i.e. 5%).
The monthly expenditure of the shop is 7 to 8 lakhs which includes all the expenses
including the expenses of procurement of the products, rent, and electricity etc.
Shoppers' Mart has a very strong relationship with the suppliers, agents, logistics
agencies. They share their value apart from paying money to them. The store believes in
a mutual relationship of trust with the stakeholders. The sales team are trained well and
get rewards according to the targets they meet. Shoppers' Mart tries its level best to
give their customers best of the products at best of the prices. The store also gives
equal importance to the suppliers and the consumers so that there is no biasness.
The preferred source for advertising is newspapers, radio and hoardings. Newspapers are
used as a medium for spontaneous sales information to the customers. The popularity of
the newspaper in Ranchi acts as decision making factor for giving the advertisements.
Although newspaper is a very costly medium of advertisement. Hoardings are used for
long term branding. Most importantly the store depends majorly on the spread of
positive word of mouth through the customers. They believe in developing a positive
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8. image in their consumer's mind. They have a trust on the customer base they have. They
measure the impact of the promotional activities on a weekly basis
in terms of revenue generated and foot falls.
Six year back when the shop was opened there were not much big competitors. With
time big competitors like Big Shop, Kolkata bazaar, and Reliance trends came in the
market. These players are not much of a threat as Shoppers' Mart has its own customer
relationship which is very strong. This is also justified by the fact they have doubled their
revenues in six years. Moreover the store is a member of VastraVikretaSangh which takes
care of the interests of the retail outlets in the city. Whatever decisions that the fellow
retailers make is on common consensus. This is a way through which Shoppers' Mart
sustains in the market.
SURVIVAL STRATEGY
In future the store plans to bring in more brands and aspires to develop its customer
database. The store also plans to promote the brand to other cities as well. They are very
much aware that new entrants are going to enter into the market but they trust on their
existing customer base which is very loyal to them. Through efficient customer service
they would also manage the after sales service to woo more customers. Through
customer probing we came to know that the customers get personalized attention from
the sales people and the floor managers. This makes the customers feel good about
shopping in Shopper's Mart. We also asked if the customers refer the store to their
friends and relatives, and we got a positive response. This personalized service gives the
store an edge.
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9. Shoppers' Mart believes in true customer satisfaction. They constantly strive for
personalized service being provided to the consumers. The sales team is trained
properly for this. They do not leave a stone unturned and always give personal attention
to the customers. They have a comprehensive database of 2000 customers. They keep a
personalized record of the frequently visiting customers. They do this through a form
which they ask their customers to fill up. They also have a membership card through
which regular customers avail special offers. The central idea for the store is 'Everything
for the family' and they achieve their motto by delivering personalized customer
satisfaction.
06