RETAIL MANAGEMENT ASSIGNMENT

On

H &A Final Cut

Submitted to: Prof. Rohita Dwivedi

Submitted by: Group 4

Anand Prakash(PGDM-) Maria Bakshi(PGDM-1979) Raj Baheti(PGDM-1352) Souradeep Das Gupta(PGDM-)

Store Name: -

H & A (Homes and Apparels) Factory Outlet of Alok Industries

Store Location: Little World Mall, Kharghar About the Company Alok Industry Alok was established in 1986 as a private limited company It became a public limited company in 1993. Over the years, they have expanded into weaving, knitting, processing, home textiles and garments. To ensure quality and cost efficiencies they have integrated backward into cotton spinning and manufacturing partially oriented yarn through the continuous polymerisation route. Company also provide embroidered products through Grabal Alok Impex Ltd., their associate company. Alok has a strong foothold in the domestic retail segment through a wholly owned subsidiary, Alok H&A Limited, under the cash & carry model that offer garments and home textiles at attractive price points

About H & A Alok H&A Ltd. was incorporated in 2007 for the domestic retail business under the 'H&A' banner. H&A stores are value retail outlets, positioned as complete family stores for apparel, home textiles and accessories, offering quality textile products at affordable prices.

Mission, Vision & Value Statement

Mission: To constantly reinvent, innovate & implement ideas to fulfil our customers requirements. Create the finest quality, world-class value-for-money products backed by cutting edge design development and research.

Vision
To be worlds best integrated textile

Enterprise driven by research and innovation, With a leadership position across product and Market exceeding customer and stakeholder expectation

Value Statement Customer satisfaction Passionate about excellence Develop human capital Fair to all Concern for the environment and the community Safety and health Responsible corporate citizen

Type of retail store Organised Retail Classification of store based on Ownership Perspective Chain Retailer Format of Store Discount store Merchandise Offered Factory Outlet Location High Street Type of retail based on assortment of store Wide and Narrow H&As products: Women's Wear- Ready-to-stitch Indian outfits, readymade garments, western wear and accessories. Menswear- Shirts, trousers, T-shirts, denims, inner wear and accessories. Childrens Wear- Garments from infant to teenagers for boys and girls. Embroidered Fabric- For garments and home decorations. Home Textiles- Bed-sheets, comforters and towels.

Target Market: Men/Women Kids Teens Retail Strategy: H &A is applying market penetration strategy in the existing market by: Increasing customer base through Heavy Discount Increasing the purchase frequency which is Discount driven Information Received from the retailer: Average Basket Size 2 to 3. Average invoice value Rs.500 to 600. Conversion percentage is 50 to 60%. Forecasting Methodology Decided by head office through the software LS POS which is a centralized online platform. So, the retail stores send the unsold products on its own. In case of defective products they are generally replaced by the retailer. Also if there is any size problem, then the retailer replaces the product but refund policy is not applicable. Operation timing starts at 9 am and store timing 10:30 am to 9:30 pm.

 There is no policy of giving awards or complimentary gifts as the store always has discounts.

Merchandising Strategy: Overall Budget There is no ordering or buying cost because H&A Factory Outlet are only dealing with unsold products. They dont have to go for inventory cost as the unsold goods are sent back to the manufacturer. Product Categories Unsold Goods (for more than 3 months) from H & A retail outlets. Male and female accessories (belts, scents, caps), Western and Indian wear for men, women and kids. Private label Products Only apparels manufactured by Alok Industries are sold. Purchase order system They use the IT software LS-POS (This is an online centralised platform through which head office keeps track of the products that needs to be replenished or removed). Every 20-25 days new stock is sent to the store by the retail outlets of H&A. Pricing Strategy All Apparel goods are sold at approx 50 60 % discount There are no discounts on accessories. Seasonal discount are always given which goes up to 70%.

RETAIL MIX:

BASIC INTRODUCTION TO RETAIL MIX: The retail mix is a blend of traits that work together to form a distinct retail operation. As a concept, its purpose depends on whether its use is internal or external to the business. Retailers examine their retail mix for strategy, while others accept a retail mix by its value proposition. Retailing mix refers to the various features of retail strategy planning. Also often called "the 6 Ps," retailing mix details a

retail business' approach to its products, promotion efforts, personnel, presentation, place and price. Retailing mix helps a business define its strategy and carry out operations according to its goals. The retail marketing mix is the vehicle through which a retailers marketing strategy is implemented and, in planning the mix, retailers should be guided by three basic principles: 1. The mix must be consistent with the expectation of target customers; 2. Elements must be consistent with each other to create synergy; and 3. The mix must be responsive to competitive strategy. H&As Retail Mix:

1. Location Strategy: Enclosed Mall Strategy. Explanation: Little World being the only shopping mall present at the moment in Kharghar, setting up their outlet was a right strategy since there would be a definite high footfall. With a multiplex situated in the mall and centrally location of the mall gives added advantage.

2. Assortment Strategy: Many Items in Apparel and Soft Home Explanation: The retail outlet is positioned as a family store, hence it caters to apparel of all age groups and both the genders. They also keep Soft Home products with accessories. We can hence call this kind of assortment Wide and Narrow since they have a variety of products but under each category they dont keep all SKUs. All sizes of apparel are not available at the store since its a factory outlet. 3. Pricing Strategy: Heavy Discount For All Season

Explanation: Since its factory outlet the products which reach this outlet are the ones that have been present in H&A Retail stores for more than 3 months but were not sold. So its kind of a stock clearance store. Thus to attract the customers and penetrate more into the market they offer heavy discount through out the year. The discount generally ranges from 50-60% but even goes to 70% during festive seasons. 4. Communication Mix: Newspaper Ads(Local) Discussion: After discussion with the store manager it was clear that they did not spend a lot of their capital in advertising. They believed that the store was pretty well known among the people who visit Little World or live in Kharghar. But to increase their recall value they do advertise occasionally in local newspapers generally during festive seasons or else for special offers. They thrive more on word of mouth than paid communication strategy.

5. Store Design And Display: Grid Layout with Straight Rack, Rounder's, Four Way, Shelves Discussion: They follow a grid layout since they dont have a lot of area. They have straight rack, rounders and four way and shelves to optimize as much space as possible.

6. Customer Service: Modest Discussion: They dont have a loyalty programme but they have attendants to cater to the customers and thus we can conclude they have a fair or moderate customer service programme. They have a policy where if goods once sold are found to be defective they have exchange offers which also goes down well with the customers.