operation management in retai sector
DESCRIPTION
HERE WE TAKE FIVE COMPANY IN WHICH BIG BAZAR ,RELAINCE,BATA,ARVIND TEXTILE IN THIS PLANT LAYOUT,PLANT LOCATION,STRATEGY,TYPES OF PRODUCT,INTRODUCTION,COMPARISION BETWEEN THERE COMPITITORTRANSCRIPT
S.K.PATEL INSTITUTE OF MANAGEMENT AND COMPUTER
STUDIES
DONDA KAUSHIK 21
HIREN GORIYA 26
DHIREN GOTI 29
AXAY JASOLIYA 36
DHAMELIYA MAYUR 16
INTRODUCTION
• Arvind Mills is the Flagship Co. of Lalbhai Group • Founded:1931 by:-
Kasturbhai lalbhai Narottambhai lalbhai Chimanbhai lalbhai
• Products: Denims,Shirtings,Knitwears • Key People: Sanjay Lalbhai (CEO & MD) Arvind
N. Lalbhai
• Employees :26000
HISTORY• Founded by Three brothers • Share Capital of 25,25,000• Technology purchased from England • 1980’s crisis• 1990’s from Domestic to Global • International Brands
MISSION
• “Our Mission is to provide clothing for the family, from every walk & stage in life, for every occasion, with a wide range of excellent quality fabrics and garments, that make them look and feel good"
APPROACH
Strong focus on research and development for• Process improvement• Cost reduction• New product development
Introduced new dyeing and processing methods for• Denims
PEOPLE
• Employer of a choice is real fate.
• Development of a individual in all important.
• Proper job-satisfaction.
• Training imparted on jobs as well in class-rooms and seminars.
DIVISIONS
DENIM
• Leading producer • Design, Innovations & Sustainability • World-renowned designers • Shuttle looms for Selvedge denim• Unique Fibers like Excel, Jute, Silk, Linen• Indigo voiles & Handspun denim• Organic, BCI & Sustainable denim
WOVEN FABRICS
• Shirting fabric and bottom weights• 65 million meters per annum • Host to India’s first Ammonia Mercerization
Plant• Chemical Finishes & Mechanical Finishes• Voiles
KNIT FABRICS
• Knitting- 5,000 tons per annum• Dyeing - 1800 tons per annum• Basic Knits: Jersey, Pique, Rib, and Interlock• Specialty knits: Yarn-dyed, Auto stripers,
Jacquards, and Stretch fabric• Fibres: Cotton, Excel, Viscose, Modal, Polyester• Finishes: Mercerization, Brushing, Peaching,
Aero-finish.
GARMENT EXPORTS
• Bottoms: 7.2 million pieces• Formal & Casual tops: 6 million• Knit tops: 3.6 million• Automated Placement Printing Machinery• Largest washing facility• Bohemian machines• Skilled artisans
BRANDS
• Own Brands- Mainstream, Excalibur Gant & Flying Machine
• Licensed Brands- Bridge to Luxury, U.S.A. 1949 & Energie
• Joint Venture Brands- Bridge to Luxury & Tommy Hilfiger
• Premium- USPA, Lee, Arrow, Wrangler
Heat Exchangers
Maximum Size Tubesheet Thk. : 405 mm,
Tube OD/Length : 75 mm / 12 Mtrs.
Weight : 130 MT
Max tubes in a single shell - 5680
Highest Surface Area in a single shell - 3350 Sq mtrs
Pressure Vessels, Reactors and Columns
Maximum Size Diameter : 6000 mm
Height/Length : 62 Mtrs.
Thickness :85 mm
Weight : 165 MT
Centrifuges
Bottom Discharge Centrifuge Size - 36" to 60"
Volumetric capacity - 300 Ltrs to 700 Ltrs
Peeler Centrifuge Size - 36" to 60"
Volumetric capacity - 300 Ltrs to 700 Ltrs
HVC - 1400 Strach Centrifuge Volumetric capacity - 160 Ltrs to 490 Ltrs
EHC - 48" FOR DMH / DAH Top Driven - Bottom Discharge
Basket capacity - 160 Ltrs to 490 Ltrs
MANUFACTURING
Plate Bending Machine Drilling machine
• Up to 100 mm thick Plates width upto 3 meters
• Up to 50 mm thick Plates width upto 3 meters • Up to 25 mm thick Plates width upto 3.5 meters
Boring Boring & Turning with copy Turning Horizontal Boring & Milling
1700 mm dia * 1000mm ht - 1 No. 800 mm stroke spindle dia 125 mm - 1 No
ORGANIC COTTON PROJECT & BCI• Organic Cotton Project was born from a need to create value through innovation across the
supply chain particularly in the area of raw material – cotton.
• Organic Cotton Farming
• Better Cotton Initiative (BCI)
RECENT NEWS
• Arvind Lifestyle Brands acquired Debenhams, Nautica & Next
• Arvind mills: from near bankruptcy to reinvention
Future Plans
• Revenue set to grow at 20%• Share of brands and retailing in revenues to
be around 40%• Share of domestic revenue to increase to 75%
from current 65%• To add 100 millions metric fabric
manufacturing capacity : cap ex Rs.850 crores• To open 300 exclusive stores in next 3 years
QUALITY POLICY
• Standard Products both in National and International Markets
• Improve Quality By strengthening relationship with both customers and suppliers
• Regular feedback from customers• Special training to employees • ISO 9001:2000 standards to ensure quality
FACILITIES
• Plant in Navsari (Gujarat, India) with installed capacity of 20 million meters per annum
• Latest equipments for Yarn manufacturing (Schlafhorst , Zinser , Marzolli, Murata Trutzschler and Rieter)
• Dyeing (Morrison-USA and Sucker-Muller Germany)
• Weaving (Tsudakoma, Picanol) and Finishing (Morrison-USA)
Vision
GROWTH THROUGH VALUE CREATION
Company Profile : Industry: Retail Type: Convenience Store 100% Subsidiary Of
Relaince Industries Ltd Chairman & Managing
Director: Mukesh Ambani Founded: 30th October 2006 Headquarter: Mumbai 453 Stores pan India Average Area: 1100-7500
sqft Turnover- 2083 Crs Net Loss -135 Crs
Business ModelStore Size – Small & Medium StoreMerchndise – Food & FMCG ProductsInvestment Per Store – Rs 5 To 6 MillionCatchment Area – 2 To 3 Sq Km RadiusMarket Positioning – Convinence Store
36
Inefficient Agriculture Supply Chain in India
37
Reliance Fresh : Supply Chain Model
Model 1: First Reliance Fresh Model
38
Reliance Fresh : Supply Chain Model
Model 2: Wholesale Trading Model (WTS)
Supply Chain Model
Operational Startegy Branded Direct Approach To ManufacturerPrivate LableBackward Integration StrtegyLocal Vendor Developement With Focus On
“GOOD QUALITY AT CHEAP PRICE” Example : Buying Bakery Prodcuts From Tihar
Jail
Retail Mix – Reliance Fresh
Product Range:ONLY VEGETERIAN
Fresh Vegetables & Fruits
Staple Processed Food Beverages Personal & Home
Care Dairy Products
MERCHANDISE DETAILS
Product width: Fruits, Vegetables, Juices and other FMCG
Products.Product length: Fruits and vegetables both Indian and
imported are available.FMCG Product length:Personnel & Home care
Place:
Located in small commercial complexes close to Residential areas
Observation: Close to cross roads Metro & Tier I Cities
Pricing: Low prized private labelsPerishable merchandise are put on
discount of 20% after 4 pm every dayDiscount on bulk buying Revises the rate list sent by the head
office.
SWOT Analysis
Strength:
Strong Financial s Of Holding Company & Brand
Private Label Sale – Reliance SelectContract FarmingNetwork – 1600 channels in villagesBackward Integration Strategy
Weakness:
Poor inventory control Less Innovative Promotional Scheme Lack Of Use Of Advance Of
Information Technology Lack Of Facilities To Customers like
Parking,Compact Layout etc
Opportunities: Increase In Net Margin Untapped Rural Market Potential Sale of Reliance Select products In
Open Market Expansion In Metro & Tier Cities
Threats:
Domestic Competitors like Big BazarBrand Cautious Customers Opposition From Unorganized RetailersEmployee Attrition RateChange In FDI Norms in Retail Sectors
Presented by: Naresh BangejaRoll No. 3Class: BBA (3rd year)
Retail Management
Submitted To:Mrs. Preeti Jog
m
• Type• Founded • Headquarters• Industry• Products• Promoter• Parent• Punch line
• Website
• Hypermarket • 2001• Jogeshwari, Mumbai• Retail• Department, Grocery store• Kishore Biyani• Pentaloon Retail India Ltd• “Is se sasta aur achha kahin
nahi!”• www.bigbazzar.com
Continued Big Bazaar wins CNBC Awaaz Consumer
Awards for the third consecutive year. Adjudged the
Most preferred Multi Brand Food & Beverage Chain,
Most Preferred Multi Brand Retail Outlet and
Most Preferred Multi Brand One Stop Shop
ContinuedYou will get around 1,70,000 products at 6- 60 % discount. At
Big Bazaar,
you will get: A wide range of
Products at 6 – 60 % lower than the corresponding
market price.
Retailer Type
• Big Bazar is a hypermarket combining a supermarket and a department store.
• The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise.
• It allows customers to satisfy all their routine shopping needs in one trip.
Customer Service• Limited
• Self Service
• Customization
Target Market• Big Bazar targets higher and upper middle class customers
• The large and growing young working population is a preferred customer segment
• Big Bazar specially targets working women and home makers
Product Assortments• Large number of categories• Brand options• Local brands• Diverse merchandise• customized
Service mixPeople• Well trained staff at stores to help people with their purchases
• Well-dressed staff improves the overall appearance of store.
• Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.
Service mix
Process• Big Bazaar places a lot of importance on the process right from the purchase to the
delivery of goods. When customers enter the stores they can add the products they which to purchase in their trolley from the racks. There are multiple counters where bill can be generated for purchases made. Big Bazaar also provides delivery of products over purchases of Rs. 1000.
Service mixPhysical Evidence• Products in Big Bazaar are properly stacked in appropriate racks. There are
different departments in the store which display similar kind of products. Throughout the store there are boards/written displays put up which help in identifying the location of a product. Moreover boards are put up above the products which give information about the products, its price and offers. Big Bazaar stores are normally ‘U shaped’ and well planned & designed
Store Atmosphere
• Multiple clusters/mini bazars
• Different sections selling different categories
• U-Shaped
New Tactics• Guerilla marketing strategies – 3 cheeky ad campaigns which surely
catch one’s attention• Taking on the biggies like Shoppers Stop, Lifestyle and TATA’s
Westside
• “Keep West-aside. Make a smart choice!”
• “Shoppers! Stop. Make a smart choice!”
• “Change your Lifestyle. Make a smart choice!”
Location• Big Bazar initially identifies future growing areas.
• Acquires such areas at an early stage before the real estate value booms.
• Selects the low cost Locations
• Big Bazar is located at high traffic area of Vashi Station, Which is the centre of Navi mumbai
• Big Bazar (Vashi) has been designed in such a way that it should look crowded.
• It is situated at one of the best locations of the city.
Advantages
• The economics of production with the large run sizes.
• The smooth and efficient running of the business.
• The economics in transportation.
• The advantage of price discounts by bulk purchasing.
• Faster and adequate service to the customers and,
• Profit from speculation in the market where price are expected to rise.
Some Notables• Product categories in Big Bazaar
• Location of Big Bazaar
• Types of inventories maintained.
• Decision of how inventories are maintained
• Reorder points of inventories
• Uncertain demands of customers
• Supply chain of perishable and imperishable goods
• Area of Maintenance
• Quality of Food-items
Introduction to inventory:An inventory can be defined as a stock of goods which is held
for the purpose of future production or sales. The stock of goods may be kept in the following forms:
1. Raw Materials2. Partly finished goods3. Finished goods 4. Spare parts etc.
The objective of an inventory problem is to minimize the total (actual or expected) cost or to maximize (actual or expected)
profit.• Variables in an inventory problem :
The variables associated with the inventory problems are classified into two categories.
The Controlled variables The uncontrolled variables
• Cost Variables (or the costs) involved in Inventory Problems: Holding or storage cost
Set up (or replacement or ordering) cost
• Besides these cost variables there are other variables that may not be controlled in an inventory problem: Demand Lead Time Amount Delivered
• Need of Inventory: To decrease the setup and shortage costs. To meet demand on time to earn goodwill. For smooth running of the business.
Notations Some general notations used in inventory models:
r = Demand rate. K = Production rate. C = Average total cost per unit time. t = Time interval between two consecutive replenishments
of inventory. z = Order level or stock level use the following general
notations in inventory models: I = the cost of carrying one rupee in inventory for a unit
time. C1 = Holding cost per unit time.
C2 = Storage cost per unit time.
C3 = Set up cost per production run. q = Lot size per production run. (I.e. The quantity produced
per pro L = lead time. q*, t*, z* = Optimal values of q, t, z respectively for which the
cost C is minimum.
•
Some important formulas to solve
“Our Customer is Our Master”
History
Bata first established itself in India in 1931 and commenced manufacturing shoes in Betanagar in 1936. At that time the Bata Shoe Organization was headquartered in the Czechoslovak town in Zlin, the residence of Thomas Bata, the founder of the organization.
Evolution
• 1894 T.& A. Bata Shoe Company registered in Zlin, Czechoslovakia by the siblings Tomas, Anna and Antonin Bata
• 1895 Tomáš Bata takes over the company leadership alone
• 1897 Tomas introduces the “Batovka”• 1909 First export sales and first sales agencies in
Germany, in the Balkans and in the Middle East• 1925 The Bata School of work founded• 1929-1931 factories in Swiss, Germany, England,
France, Yugoslavia, Poland, Holland, the USA and India• 1934-1937 factories in Holland, in the Dutch Indies,
in Singapore and in France in 1937
Mission
Bata will provide its products and services to all the age groups in the community. Will also provide the finest quality through customer involvement.
Vision
Vision is that ignite spark that can inspire and energise people to do better. The focus of vision is to reach out hungrily for the future and drag it into the present.
India
• Bata Shoe Company Private Limited in 1931
• Operation in Konnagar (near Calcutta)
• Changed its name to Bata India Limited in 1973
• ISO: 9001 certification.• Largest retailer and Leading
manufacturer• 30,000 dealers
Bata Shoe Organization (BSO)
• Operations across 5 continents
• Managed by 3 regional Meaningful Business Units (MBUs)
Bata Europe, Lausanne, Switzerland
Bata Emerging Markets, SingaporeBata Branded Business, Best,
Holland
The MBU approach
• Provides quality resources
• Support in key areas Product DevelopmentSourcingMarketing
Strategy
• Share the same leadership points
• Product concept development
• Constant improvement of business processes
Today
• Serves 1 million customers per day• Employs more than 40,000 people• Operates 5000 retail stores• Manages a retail presence in over 70
countries• Runs 33 production facilities across
22 countries
Brands
• Bata• Bata
Industrials• Bubblegumme
rs• Baby Bubbles• Comfit• Eco Fit
• Marie Claire• North Star• Patapata• Power• Sandak• Sundrops• Weinbrenner
SWOT ANALYSISSTRENGTHS
The brand Bata is closely identified with footwear by consumers.
Six manufacturing locations enable the Company to schedule production to meet demand for a large number and varied categories of footwear.
Beinga part of the Bata Shoe Organization gives the Company access to new designs, brands and production technologies.
WEAKNESSESThe Company has a large labour force resulting in high employee costs.
The Company has been in existence for more than seven decades and faces a challenge in switching to new production technologies.
OPPORTUNITIESIndia is a very large market and offers good demand potential for footwear which is an item of mass consumption
Low per-capita footwear consumption in India provides opportunity to the Company which has large production capacity spread over six locations The Company sees potential in leveraging the Bata brand for marketing other merchandise consumer products.
THREATSThe Company faces competition from the unorganized market which is able to sell footwear at low cost due to lower overheads and manufacturing costs Opening of the Indian market to imports has resulted in the Company facing competition from cheap imports
Lifestyle Product
INTRODUCTION TO WOODLAND
• Aero club launched Woodland shoes in 1992.
• Woodland stands for spirit of adventure. These shoes have been advertised to communicate this spirit.
• Woodland has successfully brought together the power of the human will and the rewards of the discovery.
• Woodland product push the boundaries of innovation so that the customer can explore new product , style and innovative design. It has mainly focused on trekking shoes.
• Inspired by nature, woodland design helps its customer to face the challenges thrown up by mother nature . Therefore Ad’s made the Woodland be called as the SUV of Indian shoes.
• The woodland tree logo defines the spirit of adventure and its commitment of environment .woodland itself is very unique in its category. woodland product is available through 300plus exclusive stores 3000 plus multi brand outlet across the globe.
Mission of the brand
• Woodland’s defination of quality demands that any footwear should br long lasting and strong.
• It should be as light as possible, supple, feel dry and comfortable against the skin and be easy to care for.
Target market
• The target market of the Woodland shoes is Youth or the adventure loving people.
•Woodland brought with, an innovative collection designed to provide rock climbers, backpackers, hikers, trail runners and outdoor lovers.
• Woodland stands for the spirit of adventure. It gives the toughness to the customers
Woodland’s Strategy for Success
•Woodland differentiated itself early on being a rugged, outdoor leather shoe brand, the kind usually preferred by adventurists.
•Being a new category, it picked up as a fashion trend among the youth.
•Woodland has always been an outdoor and adventure brand with close association with nature and environment.
•Woodland wants to drives the brand through promotions but also through their processes and practices.
About BATA
• Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932.
• Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues.
• It has more than 1200 stores across the Country.
• First manufacturing facility in Indian shoe industry to ISO : 9001certification.
• Company went public in 1973 and change its name to BATA INDIA limited.
VISION :
• Grow as dynamic , innovative and market driven manufacturer and distributor, with footwear industry while maintaining a commitment to the country, culture, and environment in which the company operate.
MISION :
• To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core business.
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QUESTION ROUND