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    PRIMUS RETAIL PVT. LTD.

    OBSERVATIONS AND RECOMMENDATIONS OF MODEL

    TOWN STORE

    (MULTI BRANDED OUTLET HAVING ADIDAS, REEBOK, MTV AND NIKE)

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 1

    http://images.google.co.in/url?q=http://www.rfma.net/images/mtv1.jpg&usg=AFQjCNEvpKDFsy-x-QO5saTnVy-6lk2I8whttp://www.piserchiasport.ch/shop/images/NIKE_logo.jpghttp://www.themusicnet.it/primomaggio/immagini/reebok.JPG
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    PRIMUS RETAIL PVT. LTD.

    ABOUT THE STORE

    Location

    The store is located at F 14/16 Model Town, Market II , Delhi. It has Mc Ds opposite to it. It is

    located at the corner of the crossing in one of the posh areas of Delhi.

    The store enjoys a good location at the corner of the street which is quite advantageous for the

    store and the store should try to exploit this benefit to maximum.

    Customer Profile

    It has high profile and rather cognitive customers. Most of the customers who visit the store have

    prior knowledge of the product and are very specific regarding their preference. They very well

    know what to buy and what style they need. Most of the customers are loyal towards the store too.

    Store Insight

    The store has area of around 2300 sq fts. It has 2 floors (Ground and first ). The Ground floor is

    exclusively for Adidas brand whereas the first floor has three brands namely Reebok, Nike and

    MTV ( an inhouse brand of Primus company). There are some accessories of Levis available in the

    store.

    There is one store room and 2 trial rooms on the first floor whereas 1 trial room, washroom and 1

    cash counter at ground floor. The strength of the staff is 5 sales man, 1 cashier and a store

    manager.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 2

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    PRIMUS RETAIL PVT. LTD.

    OBSERVATIONS:

    1. The moment you enter the store there is a pillar in between which is actually blocking theview in the women section and that too the walls of the pillar are empty (in the sense)

    nothing is there on walls.

    2. In the shoes section we found that most of the shoes on display were untidy (a layer of

    dust was there on it).

    3. Trial Rooms are spacious.

    4. There is a problem of under stocking in brands like Reebok and Adidas while there is a

    problem of overstocking in MTv which do not sell as much.

    5. The requirement of the products is not fulfilled at time as the lead time is too high. For eg.

    there was a demand of bags at the time of school opening but the bags were received at the

    April end when the schools were closing.

    6. Absence of price tags in some merchandise and even discount tags were not there in a lot

    of discounted merchandise.

    7. There is a monthly shrinkage of 3-4 units.

    8. There is a dull environment in the store.

    9. There is no proper lighting in the shoe section at Reebok at the top floor and even MTv

    section is a dull area.

    10. The focal lights are not used for highlighting the merchandise of mannequin (in the wall

    cabinet) when we go upstairs.

    11. Problem of space in the store to stock goods.

    12. Stacking is proper.

    13. In MTV section the merchandise is not at approachable height. Should be shifted a little

    lower.

    14. Trial rooms can be used to display visuals and in house promotions.

    15. In Levis section the merchandise was as old as Feb.05 manufactured which should be kept

    on sale.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 3

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    PRIMUS RETAIL PVT. LTD.

    RECOMMENDATIONS:

    The block which is shown in the picture below seems to obstruct the view of the customers at

    the entrance. We suggest using this block as displaying some visuals of the brands of the store

    or for displaying merchandise or mirrors can be placed over there.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 4

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    PRIMUS RETAIL PVT. LTD.

    The following picture shows the unused space when we go upstairs and can be used productively

    for again displays.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 5

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    PRIMUS RETAIL PVT. LTD.

    In the picture below we can place signages regarding the brands kept at the first floor near the

    staircase.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 6

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    PRIMUS RETAIL PVT. LTD.

    In the following picture we suggest to place a hanging visual in order to hide the stock kept behind

    as shown in the next pic.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 7

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    PRIMUS RETAIL PVT. LTD.

    The visual should be like this:

    Music should be there in the store in order to reduce the boredom.

    There is no need of guard at that store.

    Security tags can be placed on the items which are prone to stealing.

    Rounder can be placed for the display of belts.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 8

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    PRIMUS RETAIL PVT. LTD.

    PROJECT REPORT ON LEVIS STORE,

    GREATER KAILASH I

    (TO ARRIVE AT AN OPTIMAL PRODUCT MIX FOR THE STORE)

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 9

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    PRIMUS RETAIL PVT. LTD.

    MARKET ANALYSIS

    At this step, I roamed around in the market and had a look on the brands available there. I

    listed down the shops and did their bifurcation into different categories simultaneously.

    The market is a combination of both organized and unorganized retail outlets.

    The major branded outlets over there are:

    Apparels and

    accessories

    Footwear and

    Sportswear

    Health and

    Beauty care

    Food Joints Others

    Espirit Woodland Fortis

    Healthworld

    Mc Donalds Zeiss

    Madame Bata Lotus Caf Coffee

    Day

    Swaroski

    Uni Style Image Adidas The Body Shop Barista VIP

    United Colors of

    Benetton

    Nike Costa Coffee Tanishq

    W Puma Yo China Ferns n Petals

    Energie and

    Miss Sixty

    Bengal

    sweets

    Orra

    Numero Uno Pizza Hut

    Levis

    voi

    Spykar Jeans

    Canary Blue

    Sisley

    Wills Lifestyle

    Giovani

    Blackberrys

    Lakshita

    Vibe

    RaymondBiba

    Liliput

    Meena Bazaar

    Bizarre

    Rockport

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 10

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    PRIMUS RETAIL PVT. LTD.

    Thus, we can see the market has all the major brands one can think of and caters especially

    to the high income group customers. Greater Kailash I is a posh area and due to schools

    and colleges like L.S.R., Women Polytechnic, Blue Bells, Tagore Public School being

    around, this market attracts a lot of young crowd too.

    As observed and told by the retailers, this market is a women dominated market. As

    observed at least 70%-75% of shoppers are women but mostly the conversion is high for

    men.

    There are around 224 shops in the market and 72 buildings which are categorized below:

    Categories No. of shopsJewelers and watches 39

    Branded apparels 39

    Branded footwear 3

    Health and Beauty care 16

    Exclusive sports wear 5

    Food outlets and restaurants 16

    Electronic goods and items 6

    Opticians 7

    Home furnishings and dcor 3

    Unbranded apparels 32Unbranded footwear 13

    Miscellaneous 5

    Supermarkets 3

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 11

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    PRIMUS RETAIL PVT. LTD.

    SHOP CATEGORIES

    20%

    20%

    2%9%3%9%3%

    4%2%

    16%

    7% 3% 2%

    Jewelers and watches Branded apparels

    Branded footwear Heal th and Beauty care

    Exclusive sports wear Food outlets and restaurants

    Electronic goods and items Opticians

    Home furnishings and dcor Unbranded apparelsUnbranded footwear Miscellaneous

    Supermarkets

    There is also 1 Central bank, 1 dry cleaner and 24 other shops selling branded stuff and

    there are around 45 hawkers sitting on the lanes selling accessories and food items.

    TRAFFIC

    The traffic in the market varies from the time the market starts opening till evening. I have

    taken an average number of people per store and then multiplied it with total number of

    stores i.e.

    Traffic = Average no. of people at each store * Total stores

    Thus, the traffic in the market can be categorized according to the time of the day:

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 12

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    PRIMUS RETAIL PVT. LTD.

    In the weekends, the traffic almost increases to 3000 people in the evening time and rest of

    the day is more or less the same.

    Thus, the total traffic can be estimated around 9000 people on weekdays and approx 12000

    people on weekends.

    The catchment area of the store is:

    G.K.I

    Malviya nagar

    G.K.II

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    TIME AVERAGE NO. OF

    SHOPPERS

    TRAFFIC

    11p.m.-12 noon 2 450

    12 noon-1p.m 3.5 780

    1p.m.-2p.m. 5 11002p.m.-3p.m. 6 1330

    3p.m.-4p.m. 7 1560

    4p.m.-5p.m. 7.5 1680

    5p.m.-6p.m 8.5 2000

    6p.m.-8p.m. 9 2500

    13

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    PRIMUS RETAIL PVT. LTD.

    Kailash Colony

    Alaknanda

    Lajpat Nagar.

    Defence Colony

    COMPETITION ANALYSIS

    I observed the top branded stores present in the market and collected data on the following

    stores of which a comprehensive excel sheet is listed below.

    Brand W A L K I N S Conv. Sales (Daily) Monthly

    Weekdays Weekends % Weekdays Weekends Sales

    ESPIRIT 200+ 250+ 18 Rs.1,40,000 Rs.1,90,000 Rs.4450000

    Numero Uno 100-150 200-250 25 Rs.30,000-40000 Rs.55000-65000 Rs.11,72,000

    Giovani 100-120 150+ 50 Rs.100000+ Rs.150000-200000 Rs.32,00,000

    Woodland 70-80 125-150 40 Rs.50000-60000 Rs.125000 Rs.19,90,000

    ROCKPORT 50 70 20 Rs.40000 Rs.55000-65000 Rs.11,84,000

    Bizarre 150 200 30 Rs.50000 Rs.100000-120000Rs.16,50,000

    U S I 190 250-275 30 Rs.58,000 Rs.80000+ Rs.17,00,000

    Spykar 100-120 150+ 20 Rs.55000+ Rs.70000-80000 Rs.15,50,000

    MADAME 100+ 150-200 35 Rs.60000-70000 Rs.100000+ Rs.19,00,000

    VIBE 100 150 25 Rs.40,000 Rs.60,000 Rs.14,50,000

    Reebok 150 200 30 Rs.70,000 Rs.1,10.000 Rs.21,40,000

    Adidas 165+ 250+ 28 Rs.65,000 Rs1,00,000 Rs.19,70,000

    UCB 300 450 21 Rs.1,00,000 Rs.1,75,000 Rs.32,00,000

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 14

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    PRIMUS RETAIL PVT. LTD.

    Almost each and every store has a footfall between 100 and 150 on weekdays and it goes

    above 200 on weekends. The conversion rate too lies between 20%-30% for most of the

    stores. The sales on weekdays vary from Rs.65, 000 to Rs.80, 000 for most of the stores

    while on weekends it exceeds Rs.1, 30,000.

    Following table shows the absolute bill size and total selling area of the stores mentioned

    above and the price ranges of the merchandise they keep.

    Brand ABS Area Tees Jeans Cargos

    Selling From Upto From Upto From Upto

    sqft

    ESPIRIT

    Rs.3

    000 3500 799 2500 2800 4500

    Numero Uno Rs.1500 410 350 750 1000 2500 1100 1700

    Giovani Rs.3000 590 2500 1500 2500

    Woodland Rs.1041 450 595 1200 2000 4000

    ROCKPORT Rs.5000 700 700 1500

    Bizarre Rs.1500 800 1499 1849

    U S I Rs.850 500 345 945 1195 1495

    Spykar Rs.2400 500 445 849 1400 2500 1700 2299

    MADAME Rs.2000 650

    VIBE Rs.1500 700 500 900 1099 1499

    Reebok Rs.2000 1000

    Adidas Rs.1500 800

    UCB Rs.2100 3200

    The average bill size of most of the stores is approximately Rs.2000 while store area lies

    between 750sq.ft.-900sq.ft.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 15

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    PRIMUS RETAIL PVT. LTD.

    I identified 6 outlets from which Levis store has direct competition in the market which

    are listed below.

    ESPRIT

    NUMERO UNO

    BIZARRE

    USI

    SPYKAR

    MADAME

    I observed these stores and also had a talk with the respective store managers and hence

    collected data on these stores.

    ESPRIT

    Esprit is a high end store for both mens and womens apparels and accessories. It has

    average walk-ins of 220 daily and does a sale of around Rs.45, 00,000 monthly. Its average

    bill size is Rs.3000. It is one of the top running stores in G.K. market. The category in

    which Levis faces competition from this store is Jeans and Tees.

    NUMERO UNO

    Numero Uno is a small store as compared to Levis but is a branded Jeans wear store. It

    keeps jeans at reasonable prices and has good walk-ins of around 175 persons on an

    average. It does sale of around Rs.12,00,000 monthly and its average bill size is Rs.1500.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 16

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    PRIMUS RETAIL PVT. LTD.

    BIZARRE

    Bizarre is a store selling womens apparel and accessories. The category in which Levis

    has competition from this store is again Ladies Jeans and Tees. It has an average sale of

    Rs.16,50,000 monthly with an average bill size of Rs.1500.

    USI

    Uni Style Image is a small store again but attracts a good number of footfalls of around 220

    persons per day. The average monthly sales is Rs.17,00,000 with an average bill size of

    Rs.850.

    SPYKAR

    Spykar store is adjacent to USI and it does well too in terms of walk-ins. Those who do not

    find their stuff at USI go to Spykar and vice-versa. It does an average monthly sale of

    Rs.16,00,000 monthly and has an average bill size of Rs.2400.

    MADAME

    Madame is again a store which deals in ladies apparels and accessories and gives

    competition to Levis in the same section. Its average monthly sales are Rs.19,00,000 and

    has an average bill size of Rs.2000.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 17

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    PRIMUS RETAIL PVT. LTD.

    For getting a clear insight of the consumer mind that whether these brands pose a stiff

    competition to Levis, we need to do customer profiling to judge whether the shoppers at

    Levis are more of loyal nature or they make a move to competitors brands if they do not

    get what they want.

    STORE ANALYSIS

    LOCATION

    The store has an excellent location in the market. As one enters in the market, he/she by

    default moves to the lane in which this store is and the store cannot get unnoticed by

    anyone. Even if one is moving in the opposite lane, Levis store is visible from there.

    And as such Levis has a distinct customer profile, those who wear Levis will go Levis store

    wherever it be.

    STORE PROFILE

    The store has an area of 3100 sq.ft. and has three floors. The basement and the ground floor

    is women section while the first floor is exclusively for men.

    The store remains closed on Tuesdays as the whole market is closed on that day.

    The store has touch of red color everywhere. The shirt of CCAs, the walls and the flooring

    too is red in color.

    The sales staff of the store is quite active and energetic having some really good

    salespersons at work.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 18

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    PRIMUS RETAIL PVT. LTD.

    LAYOUTOF THE

    STORE:

    The

    basement of

    the store:

    The layout

    of theground floor

    looks like

    this:

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 20

    Ent

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    PRIMUS RETAIL PVT. LTD.

    Shelves D-Bracket Plug wall display

    Frontal arm Mannequins

    The layout of the first floor is as follows:

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 21

    Gap

    Stairs

    Cash Counter

    Diva

    Collection

    LevisLadyStyle

    R

    edLoop

    LevisBlack

    Accessories

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    PRIMUS RETAIL PVT. LTD.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 22

    SSlou

    ch

    530

    530

    LVC

    Tees

    LVCJeans

    jeans

    Denimcottoncarg

    os

    Pants

    Cargos

    TrialRoom

    TrialRoom

    TrialRoom

    StockRoom

    EntryWashroom

    Stairs

    RedLoop

    Shirts To s

    Flat

    knits &T-Shirt

    Red tabshirts

    Redwire

    Workers

    T-Shirts

    Shirts

    Sykes

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    PRIMUS RETAIL PVT. LTD.

    CUSTOMER PROFILING

    A questionnaire was made which was filled by the customers visiting Levis store. The

    questionnaire is attached at the end of the document and the results are as follows:

    The gender bifurcation:

    60%

    40%Male

    Female

    Profession:

    28%

    44%

    16%

    12%Business

    Service

    Student

    Others

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 23

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    PRIMUS RETAIL PVT. LTD.

    Most of the people who visited the store belonged to service class, next have some business

    while others were students or belonged to some other category such as housewife.

    Age distribution:

    52%

    16%

    24%

    8%15-25

    26-35

    36-45

    46 and above

    Most of the shoppers fall into the age bracket of 15-25 which means most of the customers

    visiting the store are students or young professionals.

    Income Distribution per annum:

    28%

    28%

    38%

    6%upto 4 lakh

    4-8 lakh

    8-12 lakh

    12 and above

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 24

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    PRIMUS RETAIL PVT. LTD.

    Most of the shoppers fall in the income bracket of 8, 00,000-12, 00,000. The students and

    the housewives are not been included while analyzing this data as they were dependent

    individuals and have no income.

    How often do you shop for apparels:

    20%

    16%

    48%

    16%

    Weekly

    Fortnightly

    Monthly

    Half-Yearly

    Almost 48% of the customers of Levis shop for the apparels on a monthly basis while rest

    are equally divided among weekly, fortnightly and half-yearly.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 25

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    PRIMUS RETAIL PVT. LTD.

    Amount spent on lifestyle shopping per month:

    24%

    56%

    16% 0%4% upto 3,000

    3000-6000

    6000-9000

    9000-12000

    12000-above

    Almost 60% of the shoppers who visited Adidas spent around Rs.3000-Rs.6000 on

    lifestyle shopping on an average in a month.

    Are you visiting the store for the first time:

    24%

    76%

    Yes

    NO

    Almost 75% of the customers were visiting the store regularly. This means the store has a

    loyal following of customers.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 26

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    PRIMUS RETAIL PVT. LTD.

    Frequency of visiting the store:

    0% 15%

    45%

    30%

    10%

    Weekly

    Fortnightly

    Monthly

    Half-yearly

    Yearly

    Almost 45% of the customers visit the store monthly and 30% half yearly and others are

    divided among fortnightly and yearly.

    Are u aware of sub-brands of Levis:

    64%

    36%

    yes

    no

    65% of the customers surveyed do know about the sub-brands at Levis and were well

    aware while rest of 35% just came for a particular fit.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 27

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    PRIMUS RETAIL PVT. LTD.

    If yes, which sub-brands do they buy most:

    23%

    24%19%

    0%

    14%

    10%10%

    Red tab

    Red loop

    Sykes

    Workers

    501

    Levis Black

    Diva

    Red Tab and Red Loop are the most popular brands among the Levis customers, next

    comes Sykes followed by Levis Black and Diva while Workers was not at all known.

    If not Levis, then:

    25%

    7%4%

    25%

    39%

    0% UCB

    Spykar

    Bizzarre

    USI

    Espirit

    Any other

    Most of the customers of Levis head to Espirit in case they do not find their stuff at Levis;

    next preferred destination is UCB and USI.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 28

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    PRIMUS RETAIL PVT. LTD.

    1) Breaking overall sales potential.

    In this step, I interacted with the sales staff and found out the demand of various

    merchandise available at the store and what the individual contribution of apparels and

    accessories in sales is and further observed the contribution of mens and womens apparel

    in apparel section and similarly the contribution of different sub-brands of Levis in the

    sales of store.

    2) Estimate the store carrying capacity.

    The store has racks, display tables and D-brackets to display the apparels and plug walls to

    display the accessories.

    There are two stock rooms, one at the basement where womens wear has been stocked

    while one at first floor where stock of mens apparels has been stocked.

    The total display capacity for apparels and accessories comes out to be 2505 and 85 pieces

    respectively while stock room capacity for apparels and accessories is 5304 and 600 pieces

    respectively.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 29

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    Calculation of Display capacity at Levis Store

    Basement

    WOMEN

    PITS

    Pits Shelves Stacks Pieces Total

    Lowers 6 6 2 6 432

    frontal arm in Pits 24

    Upper 24

    Display Table Rod Shelves

    Upper 16 32 48

    RACKS

    Shelves Stacks Pieces Frontal arm

    Shoulder

    Display Total

    Upper 18 2 6 30 10 256

    Lowers 14 2 4 8 120

    Display Table Shelves

    32 32

    Plug wall

    Accessories 15

    Total capacity 951

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 30

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    PRIMUS RETAIL PVT. LTD.

    4) Arrive at the optimal product mix.

    In this step, I estimated an ideal walk-ins and the conversion rate which there should be for Levis

    store in G.K.I and multiplied it with Average bill value to arrive at sales figure for weekdays and

    weekends.

    After that I arrived at a sales figure for whole month and segregated it in apparels: accessories as

    88:12 and then multiplied it with Months On Hand taking 2.5 for apparels and 2 for accessories

    which makes the value of stock to be kept around Rs.70, 13,536.

    After that I divided the stock value of each category by average price point of the respective

    category to arrive at the number of pieces which should be kept in the store according to sales.

    But this whole procedure was according to sales. The suggested plan should take into

    consideration both the capacity of the store and the sales. And hence, I arrived at suggested figure

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    Total display capacity of LEVIS store

    Upper 747

    Lower 1758

    Accessories 85

    Total 2590

    Stock Room Capacity

    Basement

    Rack Shelves Stacks Pieces Total

    Lowers 3 7 4 12 1008

    Upper 1 7 4 12 336

    First Floor

    Racks Shelves Stacks Pieces

    Lowers 8 6 5 12 2880

    Uppers 3 6 5 12 1080

    Accessories 600

    Total 5904

    Carrying capacity at Levis store 8494

    32

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    PRIMUS RETAIL PVT. LTD.

    of 6100 pieces for apparels and 600 pieces for accessories making the value of stock to be kept

    around Rs.1,26, 03,900.

    Value of Stock to be kept as per sales

    Estimated

    Weekdays Weekends

    Walkins 200 280

    Conversion 18% 20%

    Average Bill Size 2500 2800

    Sales 90000 156800

    Total Sales for one month considering 8 weekends and 18 weekdays (TUESDAY OFF)

    Weekdays 1620000

    Weekends 1254400

    Total sales 2874400

    Bifurcation of Sales into different categories

    Apparels Accessories

    Contribution 88% 12%

    2529472 344928

    MOH 2.5 2

    Value of stock to be kept 6323680 689856

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY 33

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    Total value of stock 7013536

    APPARELS Men Women

    Percentage 55% 45%

    Value 3857445 3156091

    upperwear 35% 35%

    Average price point 1320 1350

    No. of pieces 1023 818

    bottomwear 65% 65%

    Avg. price point 2300 2300

    No. of pieces 1090 892

    total No. of pieces 2113 1710

    ACCESSORIES

    Avg. Price Point 679

    No. of Pieces 1016

    The table above shows the suggested stock to be kept and the value of stock to be ordered

    for 2 months at the store.

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    OTB Capacity Suggested

    Avg. Price

    Point Value

    APPARELS 3823 7809 6100

    Upper wear 1841 2163 1900 1335 2536500

    Bottom wear 1982 5646 4200 2300 9660000

    ACCESSORIES 1016 690 600 679 407400

    Total Stock to be kept 12603900

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    The table below shows the stock plan for women apparels to be kept at the store for 2

    months:

    APPARELS

    WOMEN

    BOTTOMWEAR

    1 2 2 2 1

    Red Loop 25 26 28 30 32 Size Run Options

    RL 567 48 6 12 12 12 6 8 6

    RL 578 71 9 18 18 18 9 8 9

    RL 592 22 3 6 6 6 3 8 3

    RL 594 109 14 27 27 27 14 8 14

    RL 595 22 3 6 6 6 3 8 3

    RL 598 39 5 10 10 10 5 8 5

    Skirts 10 1 3 3 3 1 8 1

    1 2 2 1

    Sykes 26 28 30 32 Size Run Options

    Cargos 66 11 22 22 11 6 11

    Capris 76 13 25 25 13 6 13

    Track Pants 47 8 16 16 8 6 8

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    1 1 2 1 2 2 2 1

    Red Tab 24 25 26 27 28 30 32 34 Size Run Options

    L 567 152 13 13 25 13 25 25 25 13 12 13

    L 592 98 8 8 16 8 16 16 16 8 12 8

    L 544 59 5 5 10 5 10 10 10 5 12 5

    567 49 4 4 8 4 8 8 8 4 12 4

    559 74 6 6 12 6 12 12 12 6 12 6

    Capris 59 5 5 10 5 10 10 10 5 12 5

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    1 1 2 2 1

    Workers 26 27 28 30 32 Size Run Options

    Coudroi Pants 19 3 3 5 5 3 7 3

    2 2

    Levis Lady Style 28 29

    Size

    Run Options

    Shorts 28 14 14 4 7

    Capris 33 17 17 4 8

    Denims 33 17 17 4 8

    1 2 2

    Levis Black 31 32 33

    Size

    Run Options

    Jeans 38 8 15 15 5 8

    Trousers 57 11 23 23 5 11

    1 1 1Levis Vintage 28 30 32 Size Options

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    1 1 2 1 2 2 1 1 1

    Diva Jeans 24 25 26 27 28 30 32 34 36

    Size

    Run OptionsLow Rise

    Skin Fit 79 7 7 13 7 13 13 7 7 7 12 7Low Rise

    Straight 232 19 19 39 19 39 39 19 19 19 12 19High Rise

    Skin Fit 66 6 6 11 6 11 11 6 6 6 12 6Mid Rise

    Skin Fit 79 7 7 13 7 13 13 7 7 7 12 7Mid Rise

    Boot Cut 86 7 7 14 7 14 14 7 7 7 12 7High Rise

    Straight 53 4 4 9 4 9 9 4 4 4 12 4

    Mid Rise

    Straight 66 6 6 11 6 11 11 6 6 6 12 6

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    Clothing Run

    Denims 11 4 4 4 3 4

    Skirts 8 3 3 3 3 3

    UPPERWEAR

    2 3 3 2

    Red Loop S M L XL

    Size

    Run Options

    Tops 171 34 51 51 34 10 17

    2 2 2

    Levis Lady Style S M L

    Size

    Run Options

    Tops 87 29 29 29 6 15

    Jackets 15 5 5 5 6 3

    1 2 2

    Levis Black S M L

    Size

    Run Options

    Tees 68 14 27 27 5 14

    Jackets 17 3 7 7 5 3

    1 2 2 1

    Diva Jeans S M L XL

    Size

    Run Options

    Tops 83 14 28 28 14 6 14

    Shirts 45 8 15 15 8 6 8

    2 3 3 2

    Red Tab S M L XL

    Size

    Run Options

    Tops 196 39 59 59 39 10 20

    1 2 3 3 1

    Sykes XS S M L XL

    Size

    Run Options

    Tops 171 17 34 51 51 17 10 17

    The stock plan for mens apparels is:

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    MEN

    BOTTOMWEAR

    1 2 2 2 2 1

    Red Loop 30 32 34 36 38 40

    Size

    Run Options

    RL 511 125 13 25 25 25 25 13 10 13

    RL 517 125 13 25 25 25 25 13 10 13

    RL 518 83 8 17 17 17 17 8 10 8

    RL 530 83 8 17 17 17 17 8 10 8

    RL 532 69 7 14 14 14 14 7 10 7

    RL 535 104 10 21 21 21 21 10 10 10

    RL 536 104 10 21 21 21 21 10 10 10

    1 2 2 2 2 2 1 1

    Red Tab 28 30 32 34 36 38 40 42 Size Run Options

    511 158 12 24 24 24 24 24 12 12 13 12

    517 158 12 24 24 24 24 24 12 12 13 12

    518 88 7 14 14 14 14 14 7 7 13 7

    530 88 7 14 14 14 14 14 7 7 13 7

    506 97 7 15 15 15 15 15 7 7 13 7

    532 70 5 11 11 11 11 11 5 5 13 5

    535 70 5 11 11 11 11 11 5 5 13 5536 105 8 16 16 16 16 16 8 8 13 8

    Shorts 44 3 7 7 7 7 7 3 3 13 3

    2 2 2 2 1 1 1

    Sykes 30 32 34 36 38 40 42 Size Run Options

    Cargos 347 63 63 63 63 32 32 32 11 32

    2 2 2 2 1 1 1

    Workers 30 32 34 36 38 40 42 Size Run Options

    Trousers 116 21 21 21 21 11 11 11 11 11

    2 2 2 2 2

    Levis 501 30 32 34 36 38 Size Run Options

    Jeans 89 18 18 18 18 18 10 9

    28 30 32 34 36

    Engineered Jeans 73 15 15 15 15 15 10 7

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    2 2 2 2

    Levis Black 30 31 32 33 Size Run Options

    Jeans 69 17 17 17 17 8 9

    2 2 2 2

    Red Wire 30 32 34 36

    Jeans 23 6 6 6 6

    2 2 2 2

    Levis Vintage Clothing 30 32 34 36 Size Run Options

    Jeans 23 6 6 6 6 8 3

    UPPERWEAR

    2 3 3 2

    Red Loop S M L XL Size Run Options

    Tees 146 29 44 44 29 10 15

    Shirts 108 22 32 32 22 10 11

    1 2 2 1

    Denim Jackets 23 4 8 8 4 6 4

    Denim Coats 15 3 5 5 3 6 3

    4 4

    Levis Black M L Size Run Options

    Shirts 117 59 59 8 15

    Coats 29 15 15 8 4

    2 3 3 2

    Sykes S M L XL Size Run Options

    T-Shirts 209 42 63 63 42 10 21

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    2 3 3 2 1

    Levis Workers S M L XL XXL Size Run Options

    T-Shirts 94 17 26 26 17 9 11 9

    Shirts 63 11 17 17 11 6 11 6

    2 3 3 2

    Red Tab S M L XL Size Run Options

    T-Shirts 172 34 52 52 34 10 17

    Shirts 57 11 17 17 11 10 6

    1 1 1

    Levis Vintage Clothing S M L Size Run Options

    Tees 10 3 3 3 3 3

    ACCESSORIES

    Total Quantity 600 Qty.

    Caps 40% 240

    Bags 20% 120

    Belts 40% 240

    RECOMMENDATIONS:

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    There is a severe shortage of Basic shades in Jeans especially in mens section. Most of the

    customers go empty handed just because of the unavailability of basic shades in their fit.

    The 511 and 517 fit in mens section are the hottest selling items so these fits should be

    available every time a customer needs them.

    The trial rooms at the ground floor are quite hot as the yellow lights used there are too

    bright and make the rooms too hot for the customers to stay there for long and try the stuff.

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    PROJECT REPORT ON ADIDAS, KAROL BAGH

    (TO ARRIVE AT AN OPTIMAL PRODUCT MIX FOR THE STORE)

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    KAROLBAGH

    (ADIDAS STORE)

    MARKET ANALYSIS:

    Karol Bagh is one of the favourite destinations for national and international tourists. It caters to

    all categories of customers and provides all commodities ranging from household goods to

    jewellery. Bank Street is well known for jewellery shops. In addition to this, the market is known

    for readymade garments, cosmetics, saree and showrooms of other branded items and other sundry

    items. It is one of the favourite destinations for the people of Rohini, Pitampura, Shalimar Bagh

    and adjoining area as products here are economical and affordable.

    Karol Bagh is situated in West-Central Delhi and people from all strata come to this market for

    their purchasing.

    One can find most of the top brands over here as well as it is a market for the low income group

    people as well. Lakhs of people visit this market everyday of which around 65% crowd belongs to

    lower middle class and middle class families. Karol Bagh has some fine showrooms and is one of

    the best places to shop for jewellery and wedding cloths.

    This market has it all:- EBOs, MBOs, Department stores, Supermarkets, Discount stores,

    Restaurants and hotels, small kirana shops selling miscellaneous items, hawkers, etc. Thus, this

    market is a mix of both organized and unorganized retail shops.

    Some of the Exclusive branded outlets here are Levis, Woodland, Spykar Jeans, Numero Uno,

    VIP, Samsonite, Adidas, Nike, Metro, Reebok, Liliput, UCB, Raymond, Bata, etc.

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    Discount stores include Gokul Mart, Vishal Mega mart, Pocket Friendly, Salasar, Shoppers Mart,

    etc. Restaurants include Raffles, Punjab Sweet corner, Mc.Donalds, Pizza Hut and many other

    small dhabas.

    But a good chunk of market is captured by small shop owners and hawkers selling bags and

    accessories, apparels, footwear, food items, etc. where bargaining is very common. One can see a

    lot of money changers here as many foreign tourists frequent this market.

    COMPETITIVE ANALYSIS:

    As a branded and being an exclusive store, Adidas doesnt face much competition in that market.

    The following table shows a comprehensive detail of the competitors of Adidas in the Karol Bagh

    market:

    Brand W A L K I N S Conv. Sales (Daily) Monthly sales ABS Area

    Weekdays Weekends % Weekdays Weekends

    Reebok 75+ 100+ 15 Rs.30000 Rs.40000 Rs.860000 2300 900

    Woodland 100 165 20 Rs.60000 Rs.75000 Rs1680000 2500 3000

    Nike 25 45 10 Rs.6000 Rs.10000 Rs.188000 2000 450

    Levis 65+ 100+ 40 Rs.35000 Rs.75000 Rs1230000 1800 800

    UCB 140+ 225+ 30 Rs.65000 Rs.95000 Rs1930000 1500 4000

    REEBOK which enjoys a good location as the store is on the main street. It keeps shoes

    ranging from Rs.2290 till Rs.7490. Lowers range from Rs.1000-Rs.1700 while upper wear

    starts from Rs.449 till Rs.1000.

    The accessories include caps ranging Rs.449-Rs.500 while socks ranging from

    Rs.100-Rs.399.

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    WOODLAND which has two stores in that market also enjoys a great location being at the

    main street. Woodland act as a competitor in Adventure shoes, floaters, caps and bags for

    Adidas store. Though it deals in apparels too but they are basically formal and casual and

    not sporty as Adidas keeps.

    Their main contribution of sales comes from footwear i.e. around 70% while rest 30%

    comes from apparels.

    NIKE is a very small store in Karol Bagh and that too 6 th shop in a by-lane, quite an

    isolated store. It hardly gives any competition to Adidas as it has very less merchandise and

    has hardly any footfalls. There is a small Reebok store like Nike adjacent to it owned by

    the same person who owns Nike which is also in the same condition. Another Adidas store

    which was also in the same street was shut down.

    Thus, as such there is not much competition for Adidas in Karol Bagh. It suffers only due to its

    location and improper marketing and visibility.

    LOCATION:

    TheAdidas store in Karol Bagh market is located at 13/8, Ground floor, West Extension Area,

    Padam Singh Road and opposite Mc. Donalds. This store is the second shop from the street corner.

    Preferably, the store must have a premier location in the market i.e. a corner location or the store

    should be opened on the main street so that customers could easily come to know about it as the

    case is with other competitive stores.

    Already the store entrance is quite laid back and shop board also not visible from distance; there is

    a big board of Archies Gallery just above the store which has no relevance.

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    Though Mc.D is just opposite, it proves has no advantage as the customers of Mc.D are not

    essentially the Adidas customers and they hardly take a look at Adidas store which is just in front.

    CUSTOMER PROFILE:

    Mostly the shoppers who come here are not customers. They just browse through the merchandise

    and leave. There are very few serious customers who visit the store and do buy from here.

    Walk-ins in the store are very less as compared to its competitors and thats basically due to its

    laid back location and improper marketing.

    Almost 70% of the customers of the store are male while rest 30% is female and 35% - 40% are

    foreigners while rest is Indian customers who walk in the store.

    The results of the detailed customer profiling which was done through questionnaire are shown

    below:

    The gender bifurcation:

    87%

    13%

    Male

    Female

    Out of 30 people interviewed 87% were male while 13% females.

    Profession:

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    Profession

    23%

    44%

    33%

    0%

    BusinessService

    Student

    Others

    Most of the people who visited the store belonged to service class, next have some business while

    others were students.

    Age distribution:

    33%

    50%

    17% 0%15-25

    26-35

    36-45

    46-above

    Most of the shoppers fall into the age bracket of 26-35 which means most of the customers visiting

    the store are middle aged.

    Income Distribution:

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    Income per annum

    20%

    60%

    15%5% 2,50,000-4,00,000

    4,00,000-6,00,000

    6,00,000-8,00,000

    8,00,000-above

    Most of the shoppers fall in the income bracket of 4, 00,000-8, 00,000 per annum. The students

    and the housewives are not been included while analyzing this data as they were dependent

    individuals and have no income.

    Frequency of going for Lifestyle Shopping:

    0% 17%

    63%

    20%Weekly

    Fortnightly

    Monthly

    Half Yearly

    63% of the shoppers go monthly for lifestyle shopping which are our target customers.

    Amount spent on lifestyle shopping:

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    10%

    57%

    33%

    0%

    Upto 3000

    3000-6000

    6000-9000

    Above 9000

    Almost 60% of the shoppers who visited Adidas spent around Rs.3000-Rs.6000 on lifestyle

    shopping on an average in a month.

    Frequency of visit to Karol Bagh Market:

    17%

    40%

    33%

    10%

    Once in a we ek

    Once in 15 days

    Once in a m onth

    Any other

    Most of the shoppers visit this market fortnightly as this market is quite big and one can find

    almost all the things of ones utilities.

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    Where the customers like to shop:

    53%

    23%

    7%

    17%

    Exclusive brand

    outlet

    Department Store

    Any specific m arket

    Multiple brand

    outlet

    The Adidas customers usually like to go exclusive branded outlets for their shopping and after that

    department store is preferred.

    Factors considered while selecting a store:

    21

    2

    7

    0 0 0

    6

    14

    6

    2 201

    35

    2

    18

    12

    11 12

    1

    4

    00 0 0

    6

    1

    23

    0 0 0

    19

    5 6

    0

    5

    10

    15

    20

    25

    1 2 3 4 5 6

    RANKINGS

    RESPONSES

    Brand name Merchandise ava ilability

    Price Location

    Amenities Customer services

    Brand name was given first preference while selecting a store by Adidas customers followed by

    merchandise availability, location, customer services, price and amenities.

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    Merchandise looked for and being purchased in Adidas:

    4

    13 13

    24

    6

    02

    11

    17

    0

    5

    10

    15

    20

    25

    30

    1 2 3

    RANKINGS

    RESPONSES

    Lifestyle Sports wear Basic

    The people visit the Adidas store for its sportswear basically followed by its lifestyle and Basic

    (essentials) merchandise.

    Effect of advertisement on shopping decision:

    63%

    27%

    10%

    Often

    Rarely

    Never

    Almost 60% of the customers at Adidas are affected by the advertisements and promotions while

    taking their shopping decision.

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    Brand Recall:

    77%

    13%

    10%

    Adidas

    Nike

    Reebok

    The first name which comes to the minds of the people when we talk about the sports brand is

    Adidas. Almost 75% of the shoppers said Adidas followed by Nike and then Reebok when I

    judged their top of the mind brand recall regarding brand dealing in sports wear.

    Rating of store:

    10

    12

    8

    0 00

    9

    19

    2

    00

    7

    10

    13

    0

    11

    13

    6

    0 0

    10

    15

    5

    0 00

    5

    10

    15

    20

    1 2 3 4 5

    Ambie nce Product Displa y Ava ila bility of ProductService of sales staff Range of Prices

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    The store was rated excellent in its ambience, service of sales staff was rated as very good by most

    of the customers, availability of products was rated as average, and product display was good

    while range of prices was again rated as very good.

    Thus, the overall rating of the store was quite good. If we could improve the merchandise

    availability, the store would do better.

    If not Adidas, then:

    33%

    60%

    7%

    Reebok

    Nike

    Woodland

    If not Adidas then customers second preference is Nike followed by Reebok and others.

    STORE INSIGHT:

    The total area of the store is 2700 sq.ft while the carpet area is 2000 sq.ft. The store has 1 store

    manager, 1 assistant store manager, 1 store keeper and 3 salespersons. The store has two floors:

    Ground floor which basically keeps essentials; and First floor which keeps footwear and both men

    and women apparels according to themes like Football, Basketball, Training, Boston Collection,

    Training, Three stripes, Lifestyle, etc.

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    The whole store has concept BLACK as the walls, the flooring, mannequins and even the ACs

    and the wirings are painted black. The 3 stripes on the roof of the first floor guide you towards the

    shoe wall.

    The shoe wall is also divided into various categories like training, adventure, swim, basketball,

    tennis, football, etc. The apparels have also been categorized as per various themes as football,

    training, basketball, Boston collection, etc.

    Various fixtures like rail walls, T-stands, Display table and shoe wall are used to display the

    merchandise.

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    LAYOUT OF THE STORE:

    Layout of Ground Floor (Karol Bagh Store)

    - mannequin

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    Entrance

    Railw

    alls

    CashDes

    k

    T-Stand

    Stairs

    Stock room

    Store room

    Mirror

    55

    Displaytable

    Displaytabl e

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    Layout of First Floor (Karol Bagh Store)

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    Stock Room

    Womensection

    Mensa

    pparels

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    Boston collection

    Miscellaneous

    Training

    Basketball

    Rail wall with visual with accessories displayed

    Football

    STORE ANALYSIS:

    The store has very less walk-ins as compared to its competitors i.e. 30 on weekdays and 45-50 on

    weekends on an average. To add on to it, many of the times the stock is not available due to which

    the store loses its customers. Most of the walk-ins are experienced in the evening time i.e. after

    5.30 p.m. as the days are quite hot in summers and the market too remains quite dull.

    The conversion rate is around 60% which is quite good and better than the competitors. The only

    thing lacking is footfalls which are needed to be increased.

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    The average bill value of the store is around Rs.2100 as there are very less customers for high

    range and specific (football, basketball, tennis) shoes.

    The staff is quite energetic and always tries to give their best shot but sometimes lose interest due

    to very less walk-ins and stock unavailability at times.

    MERCHANDISE ASSORTMENT:

    The store keeps following merchandise:

    Mens Apparels: Polos, Tanks, Tees, Shorts, Track Pant, 3/4th Pant and Clima Lite Shirts

    Womens Apparels: Polos, Tees, Tanks, Basic Bra, Basic Yoga and Jazz Pants, 7/8th Pant

    Footwear: Lifestyle, Running, Basketball, Football, Outdoor, Tennis, Swim, Training

    Accessories: Socks, Bags, Wrist Bands, Head Bands, Caps, Football, Sippers, Fitness

    Equipments

    The store sells mens apparels more than womens apparels. The ratio is said to be 75:25. Apparelscontribute around 46% of the sales while footwear and accessories contribute around 42% and

    12% of sales to store respectively.

    Talking about quantity, the ratio of footwear: apparels: accessory is 17:55:28.

    The hot selling items in the store are mens and womens lowers i.e. capris and shorts. Next come

    Tees and Polos.

    In accessories, almost everything sells. Most saleable are socks, and then comes caps, head bands,

    wrist bands and bags.

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    In footwear, the most demanded are running shoes. The people basically ask for shoes in price

    range of Rs.2700 till Rs.3500. The most selling shoe is Armer with price tag of Rs.2699 and

    Theodore of Rs.1799.

    The slow moving items at the store are Boston Collection, NYC, Fitness equipments, Women

    Apparels except lowers and high range shoes in football, tennis and basketball.

    The themes talked about are displayed below:

    BASKETBALL THEME

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    FOOTBALL THEME

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    METHODOLOGY:

    1) Estimating overall realistic sales target.

    a) The first step to determine the overall sales potential was market analysis.

    Lakhs of customers visit this market daily and on an average around 800 cars and 1000

    cars are parked here on weekdays and weekends respectively.

    There is a famous Gaffar Market in Karol Bagh, the grey market for all the electronic

    items. One can purchase the latest mobile handsets, laptops, etc. at cheap prices from here.

    Here, I observed the traffic of major stores at different hours and their conversion

    rate.

    12.00-12.30 3.00-3.30 5.30-6.00 7.15-7.35

    UCB 18 11 25 20

    Levis 8 10 18 15

    Reebok 4 13 14 23

    Woodland 7 18 16 20

    Nike 0 2 6 4

    McDonalds 45 57 54 42

    b) The next step was to analyze the competition of Adidas in the Karol Bagh market. I

    identified some stores which pose direct competition to Adidas like Reebok and Woodland.

    Though there is a Nike store too in the market but it doesnt prove to be a good competitor

    to Adidas because of its location, area of store and poor merchandise assortment.

    I observed these stores and also interacted with their store managers to collect the required

    information and processed it according to my requirement.

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    Though there are various footwear shops like Bata, Metro, etc. but they are not our direct

    competitors as Adidas deals in sports shoes basically and brands like Reebok, Nike, Puma,

    Planet Sports are its major competitors.

    The same could be said about the apparels that as it deals in mostly sports and work-out

    apparels, it hardly has any competition with Wills Lifestyle, Spykar, USI, Numero Uno,

    UCB, etc. The only category in which these stores can pose competition for Adidas is

    Lifestyle where it keeps Tees and Polos for both men and women but the extent of

    competition too is quite minimal as the people who wear brand Adidas will go for it

    without a doubt.

    In apparel section too, it faces competition mainly from Reebok and Nike.

    c) After competitive analysis, I did customer profiling in which I prepared a questionnaire

    which is attached as annexure and asked the customers to fill it. My sample size was 30.

    Various parameters like their shopping frequency, their shopping preferences and brand

    recall and store analysis was judged through it.

    d) After that comes Store analysis which was being done simultaneously throughout my stayat the store. Here, I observed and noted down each and every detail of the store right from

    the merchandise kept to VM of the store, the staff behavior, the display and stock room

    capacity, the layout of the store, the footfalls and the conversions, the average bill size, the

    store keeping, etc.

    2) Breaking overall sales potential.

    In this step, I interacted with the sales staff and found out the demand of various

    merchandise available at the store and what the individual contribution of apparels,

    accessories and footwear in sales is and further observed the contribution of mens and

    womens apparel in apparel section and similarly the contribution of different categories in

    the sales of footwear (running, basketball, football, outdoor, swim, tennis, etc.)

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    Display Table Rail walls T-Stand

    2 3 1

    Stock Capacity

    Apparels 70 184

    Accessories 12 114 60

    First floor

    Ideal capacity of rail wall is taken as

    Apparels 38

    Accessories 14

    Ideal capacity for T-Stand is taken as:

    Apparels 8

    Accessories 18

    Ideal capacity for display table is taken as:

    Apparels 35

    Accessories 6

    FLOORCAPACITY

    display table rail walls t-stand TOTAL

    2 12 5 7

    Apparels 70 456 40 566

    Accessories 12 120 126 258

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    TOTAL CARRYING CAPACITY

    APPARELS ACCESSORIES FOOTWEAR

    DISPLAY CAPACITY 750 372 191

    STOCK ROOM 5400 200 1020

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    FOOTWEAR WALL

    Display capacity 180 pieces

    Total 156 478 282

    sum total 1096

    Pieces Avg. price pt. Value

    total apparels 750 869 651750

    total accessories 372 568 211296

    total footwear 191 4083 779853

    1313 1642899

    Stock room capacity at

    ground floor

    Racks Shelves Pieces Stacks Total

    Apparels 9 5 40 3 5400

    Stock room capacity at First

    floor

    Racks Shelves Pieces Total

    Footwear 15 5 16 1200less 180

    1020

    6420

    Accessories 200

    Avg. Price Point 568

    Value of Stock 113600

    Apparel (5400 pieces) Footwear(1020 pieces)

    Avg. price pt 869 4083

    Total value 4692600 4164660 8857260

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    CARRYING CAPACITY 6150 572 1211

    4) Arrive at the optimal product mix.

    In this step, I estimated an ideal walk-ins and the conversion rate which there should be for

    Adidas store in Karol Bagh and multiplied it with Average bill value to arrive at sales

    figure for weekdays and weekends.

    After that I arrived at a sales figure for whole month and segregated it in apparels:

    accessories: footwear as 48:12:40 and then multiplied it with Months On Hand taking 2.5

    for apparels, 2 for accessories and 4 for footwear which makes the value of stock to be

    kept around Rs.26, 32,000.

    After that I divided the stock value of each category by average price point of the

    respective category to arrive at the number of pieces which should be kept in the store

    according to sales.

    Following is the table showing the OTB plan calculated as discussed above:

    Value of Stock to be kept

    as per sales

    Estimated

    Weekdays Weekends

    Walk-ins 75 100

    Conversion 15% 20%

    Average Bill Size 2300 2500

    Sales 25875 50000

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    Total Sales for one month considering 8 weekends and 18 weekdays (MONDAY OFF)

    TOTAL SALES Rs.865750

    Bifurcation of Sales into different categories:

    Apparels Accessories Footwear

    48% 12% 40%

    415560 103890 346300

    MOH 2.5 2 4

    Value of stock to be kept 1038900 207780 1385200

    Total value of stock 2631880

    APPARELS

    Men Women

    Percentage 75% 25%

    Value 779175 259725

    Average price point 924 814

    No. of pieces 843 319

    FOOTWEAR

    Average price point 4083

    No. of pieces 339

    ACCESSORIES

    Average price point 568

    No. of pieces 366

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    But this whole procedure was according to sales. The suggested plan should take into

    consideration both the capacity of the store and the sales. And hence, I arrived at suggested

    figure of 2100 pieces for apparels, 350 pieces for accessories and 580 pieces for footwear

    making the value of stock to be kept around Rs.43, 00,000.

    The details are as follows:

    OTB Capacity Suggested Avg. Price Point Value

    Apparels 719 6150 2100 869 1824900

    Accessories 226 572 350 568 198800

    Footwear 210 1211 580 4083 2368140

    Total Stock 4391840

    The stock plan on the basis of the suggested value of stock to be kept for the store is as

    follows:

    APPARELS

    WOMEN

    Size S M L XL TOTAL

    Avg.

    Price ValueSize Run 2 3 3 2

    Tees 40 60 60 40 200

    Polos 14 21 21 14 70

    Tanks 14 21 21 14 70

    Basic Bra 10 15 15 10 50

    Pant 40 60 60 40 200

    7/8th Pant 36 54 54 36 180

    770 814 626780

    MEN

    Size XS S M L XL XXL TOTAL

    Avg.

    Price Value

    Size Run 1 2 3 3 2 1

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    Tees 40 80 120 120 80 440

    Polos 26 52 78 78 52 26 312

    Tanks 26 39 39 26 130

    Shorts 28 42 42 28 14 154

    Track Pants 24 36 36 24 12 132

    3/4th Pant 10 15 15 10 5 55

    Shirts 8 12 12 8 40

    1263 924 1167012

    ACCESSORIES

    Avg. Price Value

    Ladies Socks 50

    Men's Socks 100

    Ladies Bags 5

    School Bags 15

    Team Bags 8

    Messenger Bags 5

    Wrist Band 25

    Head Band 25

    Fitness Equipments 6

    Caps 80

    Sippers 15

    Footballs 20

    354 568 201072

    FOOTWEAR

    1 1 1 2 2 2 1 1 1 1

    Size 4 5 6 7 8 9 10 11 12 13

    Size

    Run Options

    Lifestyle 64 6 6 6 12 12 12 6 6 11 6

    Running 279 23 23 23 47 47 47 23 23 23 12 23Basketball 35 3 6 6 6 3 3 3 3 11 3

    Tennis 46 5 10 10 10 5 5 9 5

    Outdoor 70 7 14 14 14 7 7 7 10 7

    Swim 87 8 8 8 16 16 16 8 8 11 8

    580

    Avg. price 4083

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    Total value 2368140

    RECOMMENDATIONS:

    The store suffers from a serious problem of lesser footfalls. As the store is new and the

    entrance of the store is quite laid-back, it needs some promotions and a better sign board

    which is visible from a distance.

    The store is in need of more visibility which can be done by placing sign boards saying

    Adidas at the square lane pointing towards the store.

    Any scheme running in the store that should be promoted by placing banners across the

    streets and by giving ads in the newspapers.

    The sign board of Adidas should be visible in night by placing rods above it.

    Music should always be on in the store and some English songs can also be played to

    reduce the monotony of the environment.

    The broken tiles should be replaced immediately.

    There should be a provision of keeping customers bags at the cash counter.

    The store should keep enough merchandise in order to fill the customers demands

    especially the lowers which sell most.

    I recommend mannequins doing actions of playing basketball and stuff with basket

    attached to the wall to attract the customers and as its basically a store selling sports wear,

    this would give a sporty feel to the store.

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    LEARNINGS OF THE TRAINING AT ADIDAS

    Mr. Dushyant from Adidas came as an instructor and told us the following things:

    History of Adidas:

    Adidas was founded in 1948 by a German national, Adolf Dassler and hence, the company got its

    name by taking Ad from Adolf and Das from Dassler.

    In 1949, it came up with its first brand logo The 3 Stripes which denote trekking field and better

    grip.

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    In 1972 the second logo of the company was launched which was Trefoil which stands for

    variety of products.

    In 1991, the third logo Low mountain was launched which stands for sports performance and

    technically sound products.

    Brand Ambassadors:

    Australian Cricket Team

    Football teams of Germany, Spain, Argentina and France

    Basketball Players Kevin Garnette and Tracy Mc.Radie

    Tennis Players Marat Safin and Justin Henin

    Cricket Players Sachin Tendulkar, Sehwag and Suresh Raina

    Football Player Zidane

    In Adidas, the 3 stripes on the roof lead to shoe wall. Rail wall fixtures are used for men while

    Plug wall fixtures are used for women. Black circles indicate mens merchandise while white

    circles are for womens merchandise.

    Footwear Technologies:

    Adiprene:

    This technology is in heel and is basically for cushioning and absorbing body impacts.

    Adiprene+:

    This technology is in toe which gives you better push-off and makes you ready for next step.

    Torsion:

    This technology is in mid foot and provides stability and mid foot support.

    Traxion:

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    This technology is in outsole and is for superior grip on loose and uneven surfaces.

    Adiwear:

    This technology is in outsole and is abrasion resistant providing better durability.

    Adituff:

    This technology is in upper toe for preventing toe injuries and increasing durability of the shoe.

    Formotion:

    This technology is in lateral heel providing stability when foot strikes the ground. It distributes the

    pressure and reduces the knee load.

    Pro Moderator:

    Its a thin layer of TPU (Thermo Poly Urethane) present in mid foot which keeps foot stable,

    prevents excess tilting of foot.

    Geofit:

    This technology is for enhanced fit.

    Quick Strike:

    This technology is in outsole which makes the shoe light weight and more flexible.

    Gate cycle was taught showing how a foot moves while walking.

    RETAIL EXCELLENCE PROGRAM BY ADIDAS:

    Mystery Shopping Program:

    Under this program, people from Adidas come to the stores as customers and check how the store

    is doing and whether the sales staff are attending the customers efficiently and store is following

    all the guidelines given by Adidas.

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    There are basically 9 steps to be followed by each and every salesperson at Adidas:

    Greeting: the customer should be greeted properly once he/she enters the store and here the

    salesperson should not miss the eye-contact.

    Grooming: the salespersons should be in proper uniforms and well groomed.

    Giraffing: the customer should be allowed to look around and this is the time for the salesperson

    for need identification.

    Product Selection: the salesperson should tell the features and advantages of the product to the

    prospective customer.

    Actual Selling: the salesperson should try to convince the customer and make him sure of his

    purchase and tell him that it is worth buying.

    Fitting: the salesperson should ensure that the customer has got the fitting which he wants and

    should not try to sell a product which is a loose or tight fit.

    Team work: the salespersons should show team spirit while doing their work and there should be

    no back-biting.

    Cash Desk: the customer should be told about the terms and conditions, the schemes running and

    should be asked to write comments in the diary at the cash desk.

    Environment: the store environment should be lively, music always playing and the ambience

    good.

    VISUAL MERCHANDISING:

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    Ms. Gitanjali from Adidas came as an instructor and taught us about the policies at Adidas

    regarding the display of the merchandise.

    Theme Based Display:

    Adidas follows theme based displays for its stores where it keeps all the merchandise related to a

    particular theme at one place and place a signage depicting that theme.

    For eg. A Football theme will have Football related apparels say A C Milan Tees, Soccer shoes,

    Lowers and Footballs displayed at one rail wall and a signage saying Football will be placed over

    it.

    Thus, the store has now Boston Collection Theme, Football Theme, Basketball Theme, Training

    Theme, Lifestyle Theme, etc.

    Use of Mannequins:

    Previously, the display table was kept in totally dead area where no customer goes. She removedthe display table from there and placed 3 mannequins thus, utilizing the dead space on the floor.

    Miscellaneous:

    The women section was kept near to the stairs on the first floor in order to attract and give a

    pleasant feeling to the customers. Also, women apparels were not moving, so to increase its sales

    this shift might prove helpful.

    The colors should be synchronous with each other.

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    Gender: M [ ] F [ ]

    Questions:

    Q1: How often you go for lifestyle shopping?

    Ans: a) Weekly

    b) Fortnightly

    c) Monthly

    d) Half yearly

    e) Any other (please specify)

    Q2: What amount on an average do you spend on lifestyle shopping?(monthly)

    Ans; a) Upto 3000

    b) 3000-6000

    c) 6000-9000

    d) Above 9000

    Q3: Where do you like to shop?Ans: a) Exclusive brand outlet

    b) Department Store

    c) Any specific market

    d) Multiple brand outlet

    Q4: How often do you visit this store?

    Ans; a) Once in a week

    b) Once in 15 days

    c) Once in a month

    d) Any other( please specify)

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    Q5: What factors do you consider while selecting a store? (Rank according to your preference)

    Ans: a) Brand name

    b) Merchandise availability.

    c) Price.

    d) Location.

    e) Amenities (Parking, wash room etc.)

    f) Customer services

    Q6: What type of apparels do you look for and purchase in Adidas? (Give rank order)

    Ans: a) Lifestyle

    b) Sports wear

    c) Basic

    d) Any other

    Q7: Till what extent advertisement affects your shopping decision?

    Ans: a) Often

    b) Rarely

    c) Never.

    Q8: Which brand name comes to your mind first while talking about sports?

    _________________________________________________________

    Q9: Rate the store on the following parameters

    Q10. If not Adidas, then

    BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

    Parameters Excellent V. Good Good Average Bad

    Ambience

    Product Display

    Availability of Product

    Service of sales staff

    Range of Prices

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    Reebok [ ] Nike [ ] Woodland [ ] Puma [ ]

    Any other, please specify.

    The questionnaire which was used during the survey in Levis is as follows:

    QUESTIONNAIRE

    Name:

    Age: 15-25( ) 26-35( ) 36-45( ) 46 and above( )

    Profession:

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    Business( ) Service( ) Student( ) Others( )

    Address:

    Income per annum: Upto 4,00,000 [ ] , 4,00,000-8,00,000 [ ] ,8,00,000-12,00,000[ ]

    12,00,000 and above [ ]

    Gender: M [ ] F [ ]

    Questions:

    Q1: How often do you shop for apparels?

    Ans: a) Weekly

    b) Fortnightly

    c) Monthly

    d) Half yearly

    Q2: What amount on an average do you spend on lifestyle shopping?(monthly)Ans; a) Upto 3000

    b) 3000-6000

    c) 6000-9000

    d) 9000-12000

    e) 12000 above

    Q3: Are you visiting this store for first time?

    Yes ( ) No ( )

    Q4: How often do you visit this store?

    Ans; a) Once in a week

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    b) Once in 15 days

    c) Once in a month

    d) Half-yearly

    e) Yearly

    Q5. Are you aware of various sub-brands at Levis store?

    Yes ( ) No ( )

    If yes, which sub-brand of Levis you buy the most?

    Red Tab ( ) Red Loop ( ) Sykes ( ) Workers ( )

    501 ( ) Levis Black ( ) Diva ( )

    Q6. If not Levis, then.

    UCB ( ) Spykar ( ) Bizarre ( ) USI ( )

    Espirit ( ) Any other.