Retail Marketing

Project
Sir Waqar-Ul-Qayyum
Prepared By:
Jamil Ahmad
Abdul Qayyum Al tamash
Athar Zubair
Muhammad Inam
BaBakar

12/29/2018
Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 4
CATCHMENT AREA .................................................................................................................................. 4
Retailing ........................................................................................................................................................ 5
Definition of retailing ................................................................................................................................... 5
Some of the major characteristics of retailing are:........................................................................................ 5
Introduction of the store: ............................................................................................................................... 5
Type of store: ................................................................................................................................................ 6
Store ownership: ........................................................................................................................................... 6
Retailing formats:.......................................................................................................................................... 7
Retails sales by Ownership ........................................................................................................................... 7
Independent retailer: ..................................................................................................................................... 7
Chain store: ................................................................................................................................................... 7
Francizing: .................................................................................................................................................... 7
Leased department store: .............................................................................................................................. 8
Vertical marketing system: ........................................................................................................................... 8
Consumer corporative: .................................................................................................................................. 8
On the basis of merchandized offered: ......................................................................................................... 8
Convenience store: ........................................................................................................................................ 8
Conventional super market: .......................................................................................................................... 8
Food based super Store: ................................................................................................................................ 8
Combination Store: ....................................................................................................................................... 9
Discount Store:.............................................................................................................................................. 9
Hyper Markets: ............................................................................................................................................. 9
Specialty Stores:............................................................................................................................................ 9
Departmental Store: ...................................................................................................................................... 9
Non store based retailer ................................................................................................................................ 9
Direct Marketing: .......................................................................................................................................... 9
Direct Selling: ............................................................................................................................................... 9
Vending Machine: ....................................................................................................................................... 10
Electronic Shopping: ................................................................................................................................... 10
Location analysis of the store...................................................................................................................... 10
Selection of locality .................................................................................................................................... 10
Urban area ................................................................................................................................................... 10
Site analysis: ............................................................................................................................................... 10
Connectivity and ease of traffic flow .......................................................................................................... 10

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Parking facility: ........................................................................................................................................... 10
Cost effectiveness: ...................................................................................................................................... 11
Presence of competitors: ............................................................................................................................. 11
Visibility of store: ....................................................................................................................................... 11
State of infrastructure:................................................................................................................................. 11
Catchment area: .......................................................................................................................................... 12
Density of population:................................................................................................................................. 12
Types of customer:...................................................................................................................................... 12
Hours of operations: .................................................................................................................................... 12
Factors to be considered while selecting the location: ................................................................................ 12
Pricing strategy of the store ........................................................................................................................ 13
Pricing objective: ........................................................................................................................................ 13
Pricing policies: .......................................................................................................................................... 13
Pricing factor:.............................................................................................................................................. 13
Market Segmentation .................................................................................................................................. 13
Geographic: ................................................................................................................................................. 14
Demographic:.............................................................................................................................................. 14
Merchandizing of Saira Cash & Carry ........................................................................................................ 15
What is merchandising? .............................................................................................................................. 15
Merchandizing philosophy: ........................................................................................................................ 15
Merchandise offered: .................................................................................................................................. 15
Store Layout:............................................................................................................................................... 16
Diagonal pattering Layout: ......................................................................................................................... 16
NUMBER AND TYPE OF EMPLOYEES PER STORE: ......................................................................... 16
Assortment: ................................................................................................................................................. 17
Retailer needs to decide: ............................................................................................................................. 17
Advantage wide and shallow: ..................................................................................................................... 17
Brands: ........................................................................................................................................................ 17
Ambience: ................................................................................................................................................... 17
Shelving Pattern: ......................................................................................................................................... 17
PROCUREMENT POLICIES & PROCEDURE, INVENTORY MANAGEMENT ................................ 18
Procurement policies:.................................................................................................................................. 18
Procurement procedure: .............................................................................................................................. 18
Sources of supply: ....................................................................................................................................... 18
Stocking pattern: ......................................................................................................................................... 18
PROMOTIONAL ACTIVITIES ................................................................................................................ 19

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Promotional schemes: ................................................................................................................................. 19

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 EXECUTIVE SUMMARY

The project entitled “RETAIL STORE OPRATIONS” carried out, was the result of
extensive study of the Saira cash & carry store situated at Thokar. My subject of study was
analyzing CATCHMENT AREA, FOOTFALL AND CUSTOMER’S AVERAGE,
ASSORTMENT, MERCHANDISING, CATEGORY MANAGEMENT of the store.

CATCHMENT AREA
It is defined as the area from where the customers are mostly attracted to the store. In my
project, the Catchment area included ALI TOWN, UNIVERSITY OF LAHORE, WEST WOOD
SOCIETY Main Road, etc.

● FOOTFALL
Footfall can be described as the no. of people who visit the stores. These may not
necessarily be the buyers. Window shoppers are also included in this. The average
footfall of OUR STORE was around 600 to 1000 visitors per day.

The scope of project allows a two way approach to learn about the functioning of Saira store.
Firstly, it provides an opportunity to know about in and out of the functioning of the retail store
which serves both as the frontline of operations and the revenue earner for the organization
engaged in the business of organized retailing. The retail store which serves as the point of
interaction and transaction between the organization and the customers is the biggest stakeholder
in determining the level of success of the business. Operations set that regulate the entire
workings of a store thus have a pivotal role. Thus while being engaged in a project work in an
retailing organization, to develop knowledge about the retail store operations provides a kind of
completeness to the task of understanding the trade.

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 Retailing

Definition of retailing
The activities involved in the selling of goods to ultimate consumers for personal or
household consumption.

Some of the major characteristics of retailing are:

 Direct interaction with the customers.
 Buying and selling of goods.
 Effective customer service for maximum satisfaction.
 Visibility with the help of effective online retail solutions.
 Place, time and possession utility for different products.
 Sales promotions are offered at this point only.
 Location and layout are critical factors in retail business.

Introduction of the store:

“Saira Cash & Carry” is a general store, started in 2018 which is located near to Ali Town
Thokar Lahore; the location of the store is the main road of the thokar, which is appropriate for
all the Society peoples, university of Lahore,

The most fundamental objective of “Saira Cash & Carry” is the concern for people. The Stores
essential target is to expand deal by giving all sorts of family unit items to its customer and
furnish more prominent administrations with an equivalent dimension of value.

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Type of store:
It’s a grocery store having all kind of grocery items, bakery items, vegetables, fruits, toys,
cosmetics items, FMCG goods and other ready to cook products.

Store ownership:
Saira is the name of her Mother and the name of the owner is Allah Rakha.

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Retailing formats:

Retails sales by Ownership

Independent retailer:
Independent stores are little outlets or store set up at least one area and greatest three
areas by a person, in organization or kept running by an entire family. The nearness is such
stores in there is all urban communities and towns over the world and normally possessed by
individuals who have a place with the equivalent community. Our store falls in this class.

Chain store:
A chain store is one of a few comparative shops that are possessed by a similar individual
or organization, particularly one that moves an assortment of things.

Francizing:
An establishment is a sort of permit that a party (franchisee) gets to enable them to
approach a business's (the franchiser) exclusive learning, procedures and trademarks so as to
enable the party to move an item or give an administration under the business' name.

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Leased department store:
Leased departments are extensively characterized as tasks of one organization directed
inside the foundation of another organization. Run of the mill precedents may incorporate gems
counters or optical centers within department stores.

Vertical marketing system:

A vertical marketing framework (VMS) is one in which the principle individuals from an
appropriation channel maker, distributer, and retailer cooperate as a bound together gathering so
as to address purchaser issues. Vertical marketing frameworks can take a few structures.

Consumer corporative:
A consumer cooperative is an agreeable business claimed by its clients for their common
advantage. It is a type of free endeavor that is situated toward administration as opposed to
financial benefit. Consumer’s cooperatives frequently appear as retail outlets possessed and
worked by their customers.

On the basis of merchandized offered:

Convenience store:
A little store, regularly diversified, offering a constrained choice of sustenance and family
unit items and remaining open for longer hours at a convenient area.

Conventional super market:

Conventional supermarket is a departmentalized food store with a wide scope of
nourishment and related items. The stores are normally separated by their sizes.
 Food based super store
 Combinations stores
 Discount store
 Hyper market
 Specialty stores
 Departmental stores

Food based super Store:

A food-based superstore is bigger and more differentiated than a conventional
supermarket yet normally littler and less expanded than a combination store.

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Combination Store:
A combination store is the one which joins Supermarket and general stock together.
These stores additionally join food and medication stores.

Discount Store:
A discount store is a retail shop which sells goods at prices that are lower than the typical
market price.

Hyper Markets:
A "hypermarket" (now and then called a "supercenter" or "superstore") is a major box
store consolidating a market and a retail chain. The result is an expansive retail facility carrying a
wide range of products under one roof, including full groceries lines and general merchandise

Specialty Stores:
Specialty stores are retail organizations that attention on product item classes, for
example, office supplies, men's or ladies' attire, or cover. It isn't the item they move that decides
whether an organization is a specialty store, yet rather the broadness of their item advertising.

Departmental Store:
A department store is a retail establishment offering a wide scope of customer
merchandise in various item classifications. Also known as departments.

Non store based retailer

 Direct Marketing
 Direct Selling
 Vending Machine
 Electronic Shopping

Direct Marketing:
The business of selling products or services directly to the public, e.g. by mail order or
telephone selling, rather than through retailers

Direct Selling:
Direct selling refers to selling products directly to the consumer in a non-retail
environment. The products sold through direct sales are usually not found in typical retail
locations, which means finding a distributor or rep is the only method to buy the products or
services.

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Vending Machine:
A machine that dispenses small articles such as food, drinks, or cigarettes when a coin or
token is inserted

Electronic Shopping:
Online shopping is a form of electronic commerce which allows consumers to directly
buy goods or services from a seller over the Internet using a web browser.

Location analysis of the store

The store is situated at the fundamental lane of the general public. The store is running
the basic need items and in addition bakery item, vegetables and natural products. The Store is
satisfying the entire customer need at Prime area by giving wide territory to stopping.

Selection of locality

Urban area
An urban area is term used to define a geographical area that is highly populated and
constitutes a city or town. Our store is located in the urban area as it is situated in one of the
popular road of Thokar.

Site analysis:

Connectivity and ease of traffic flow

It is an extremely crucial factor for a retailer as it doesn't make a difference how great your client
benefit and your insides are yet in the store that your store isn't simple for the general population
to visit, it will not be a good preposition. Our Store is all around associated through wide streets
by open transportation. Substantial traffic can without much of a stretch go through it and
furthermore can be parked in front of it.

Parking facility:
Parking today has become the most uncontrollable problem for the big cities even for the small
cities as well. In a store where 10 to 100s of customers visit in a single day along with their
vehicles, they will be hesitating to visit the store if the parking facility is not available.
Our store has a very narrow parking area for the customers to park their vehicles. Almost 5 to
10 bikes can be parked at one time in front of the store, no parking facility for cars.

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Cost effectiveness:
A vital factor to be considered before taking the choices on a specific site is the cost
thought. A retailer must remember that purported great site is dependably a costly fairs and
retailer should endeavor to go for that since ignorance to such site might be the explanation
behind the disappointment of your store. Our Store is dealing with the assets to have an alluring
site on the grounds that there are no societal duties, security charges, and high lease. Our store is
paying just Rs.70000 lease for this great business site.

Presence of competitors:
While choosing a site it is useful to check the similarity of the retail location with the
others close-by retail locations here. It incorporates breaking down the sort and number of
contenders. Our Store has one contender close to it which is New Way Departmental Store.
One advantage of having contenders is that it builds the footfall of the customer.

Visibility of store:
Visibility of store also plays a very important role as when a store is visible from long
distance, it attracts the customer toward itself. The visibility of our store is very good and
attractive as it has very big bill boards in the front of the store that has light in them as well due
to which they are visible from a long distance.

State of infrastructure:
Outside infrastructure of the store is great as it has glass show on the opposite sides of the
store. They have promoting flexes glue on the glass for the customer mindfulness.

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Catchment area:
Sultan Town, Westwood Colony, University of Lahore (Old Campus), Ali Town, Nawab
Town.

Density of population:
Approximately 10000 to 15000 people are living in these societies.

Types of customer:
Households, Students, Pedestrians

Hours of operations:
Store remains open seven days a week from 7 AM to 12 PM.

Factors to be considered while selecting the location:

 Labor and wages: They have 2 employees and 1 manger.

 Local taxes: There are no local taxes apply on Saira Cash & Carry.
 Banking facility: There is a branch of HBL bank is on the opposite side of the Saira
Cash & Carry. So customers can also use ATM machine easily.
 Water supply: There is no need of water supply as they do not need water because
they are separate washrooms for the shopkeepers in the market.
 Security: Saira Cash & Carry has installed 8 security cameras 1 outside of the store
and remaining 7 within the store that is why there is no need of personal security as
the area is fully secured.

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 Pricing strategy of the store

“Pricing is the 3rd “P” of marketing.”

They deal with the national products that is why they have no flexibility in their prices.

Pricing objective: what other roles pricing play except making profit and recovering cost.
 Market shares
 Status quo: customer loyalty
 Profit

Pricing policies: They have fixed prices of their product because they deal with national
products.
 Skimming
 Penetration
 Premium

“Usually we see our pricing objectives and compare them with our pricing decisions to make
pricing policies.”

Pricing factor:
They give discount on bundle purchase. When a customer do shopping of Rs.3000 of
more he or she will get 2% discount.

They do not follow leader pricing (In which we reduce our prices to our cost to increase the
footfall) or lost leader pricing (in which we reduce the prices even below to our cost).

Market Segmentation
Market segmentation is dividing your total market into smaller groups based on common
characteristics. The end goal is to find a small group with the highest likelihood to buy your
products or services. This group is your target market, which is the audience to whom you will
be directing all of your marketing efforts.

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Geographic:
Entails dividing the market on the basis of where people live. Division may be in term of
neighborhood cities, countries, state, regions or even countries.
Saira Cash & Carry store geographically segment itself by opening a store in the main market of
housing society, hostels, pedestrian traffic etc. where customer has to come to buy their daily
house hold products.

Demographic:
It involves dividing the market on the basis of statistical differences in personal
characteristics such a age, gender, customs, tradition, belief, income, life stage, occupation and
education level.
Saira Cash & Carry store have products segment according to the age and income level of
living people in the society.
Management know that how much child living in the societies so they have products for
children’s in store such as toys, games, birthday celebration products etc.
Different household brands places in the store according to the income level of the society like
K&Ns, Fries, Gourmet, Cakes & bakes, Sheezan Bakery, Pizza Hut, Niahatline etc.

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 Merchandizing of Saira Cash & Carry

What is merchandising?
Merchandising consists of the activities involved in acquiring Particular goods and services and
making them available at the Places, times, prices and quantities that enable a retailer to reach its
goals.

Merchandizing philosophy:
 A merchandising philosophy sets the guiding principles for all the merchandising
decisions the retailer makes.
 Must reflect the target market desires, retailer’s institution type, the marketplace
positioning, the defined value chain, supplier capabilities, cost, competitors and product
trends.
 Drives every product decision, from what product lines to carry to shelf space allotted to
different products to inventory turnover to pricing.

Merchandise offered:
 Baby foods and baby-care products such as disposable diapers
 Breads and bakery products (many stores may have a bakery on site that offers specialty
and dessert items)
 Bulk dried foods such as legumes, flour, rice, etc. (typically available for self-service)
 Canned goods and dried cereals
 Confections and candies
 Delicatessen foods (ready-to-eat)
 Electrical products such as light bulbs, extension cords, etc.
 Frozen foods
 Fresh produce, fruits and vegetables
 Housecleaning products
 Laundry products such as detergents, fabric softeners, etc.
 Non-alcoholic beverages such as soft drinks, juices, bottled waters, etc.
 Seasonal items and decorations
 Soft-Drinks
 Cosmetics
 Dairy products
 Toys
 Ice-creams

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 STORE LAYOUT AND DESIGN

Store Layout: “Diagonal pattering Layout”

Diagonal pattering Layout:

This type of layout is a retailer’s primary choice when it comes to Layout Planning or
Designing. In this layout the products are hidden behind the products. Customer cannot see all
the product by standing at one point. This strategy is used for the customer to spend more time
on the store and also have look at all other products.

NUMBER AND TYPE OF EMPLOYEES PER STORE:

Total employee: 2
Store manager: 1
Sales manager: 1

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Assortment:
An assortment is the selection of merchandise a retailer carries. It includes both the breadth of
product categories and the variety with in each category.

Retailer needs to decide:

 Breadth of assortment (narrow or wide)
 Depth of assortment (deep or shallow)
 Quality of assortment (high/med/low)
 Store brands or national brands
 Pricing policies
Our store is following the wide and shallow model of assortment because when we asked about
this strategy they said:
“We have not much space in the store for keeping the stock whether customer is also
local we don’t need to focus on the variety or stock.”

Advantage wide and shallow:

 Broader market
 High level of customer traffic.
 Less costly then wide and deep.
 One stop shopping.

Brands:
International brands and local brands are places in the store. Sometime retailer just
focuses on the international brand not private label brand when we ask about that why they have
both type of brands local and international:
“International brands running with help of their quality and they have less margin so that’s why
we have to place local brand also because there is high margin in these type of brand.

Ambience:
Saira Cash & Carry provides good ambience having proper lighting, ventilation
facilities. Also products are properly arranged according to category. Air conditions are also
used. They have categorized the entire product so that customers can easily find the product.

Shelving Pattern:
Use of Wall Racks, Corner Racks, Retail Gondolas, Fruits & Vegetable Racks, Check
Out Counter, Glass Shelves and Accessories, Gondola End Racks, and Wall Unit Racks.

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 PROCUREMENT POLICIES & PROCEDURE, INVENTORY
MANAGEMENT

Procurement policies:
 They purchase through various Distribution center directly from suppliers.
 The counter manager and the sales manager plans the overall merchandise to be offered
at the store.
 Order are generated by the weekly check and balance process when the level of the
merchandise reaches the reorder level.
 The counter manager can anytime check the inventory level.
 Suppliers came to the store for taking order of existing or new products and the counter
manager has the list of order with the collaboration of the employees.
 Mostly owner himself purchases the products such as toys, FMCG goods, and some
decoration items from shahalmi market.
 They have their own vehicle through which they transfer their good from the market to
the store.

Procurement procedure: Two important persons are involved in this procedure.

1. Store manager
2. Owner

Similar products falls into a category and similar categories are managed by a store manager.
Once the stock in the store falls below the reorder level the sale manger generates order for
procurement of those goods. This order is received by store manager and then he placed the
order for those products.

Sources of supply:
Vegetables: Sabzi mandi

Fruits: Sabzi mandi

Other FMCG products: Direct through company contracts or through the Carry and Forward
Agents.

Stocking pattern: All the merchandise are stocked 15-20 days in advance. The Vegetables
and other perishable items are stocked only for 1-3 as per the nature of the food item. This kind

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of stocking pattern doesn’t create shortage at the store and helps the store to make the goods
available to the consumers all the time.

Inventory: A minimum inventory is maintained so as not to run out of stock. The inventory
level varies for products and location depending upon the demand of the product in a store.

Fruits & Vegetables: 1 ½ day

Other products: 2 weeks.

PROMOTIONAL ACTIVITIES

Promotional schemes:
Promotional schemes are more targeted to the impulse buying nature of the customers.
They have in-store promotions, which are majorly given by company on branded products. If any
new schemes are introduced then pamphlets are distributed to customers’ house near the store.
They paste advertising flexes on the walls of store for customer awareness.
They are using a promotional scheme for the customers to do shopping of Rs.5000 of more and
get 2% discount.

Findings

It was a good learning experience for us. we were exposed to the practical aspects of Marketing and
Retailing. The major findings are:

1. Visibility of the products should be increased.

2. There must be more sales promotion and advertising activities.
3. There is an imminent need of betterment of Customer Support Services of Store.
4. Close link should be established with customers through customer relations programs and
try to meet their requirement regarding product and services and to make them aware
about both product and promotions.
5. Promote the peculiar areas where stores, have an upper hand like correct weight and
measures, values packs of goods, quality service and ambience.
6. Rightsizing is desired in certain stores. A large area is occupied by categories like apparels
which have very limited sales but rent has to be paid for the area.

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 7. Long queues too often discourage people to shop in Sairastore especially the customers
who purchase smaller quantities of good (say Rs. 10.00 bread). So number of tills in each
store should be between depending upon factors like and stateside. In rush hours
8. Innovativeness is the mantra for success. Brainstorming sessions must be conducted for
generation of new innovative ideas.

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