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A STUDY ON STORE OPERATION WITH REFERENCE TO COUPON MALL

A Project report submitted to Institute of Public Enterprise, Hyderabad in partial fulfilment of the requirement for the award of the Degree of POST GRADUATE DIPLOMA IN MANAGEMENT RETAIL & MARKETING SUBMITTED BY PALASH BISWAS Under The Esteemed Guidance of Dr. M. MEHER KARUNA ASSISTANT PROFESSOR

INSTITUTE OF PUBLIC ENTERPRISE OSMANIA UNIVERSITY CAMPUS HYDERABAD 500 007 2007 - 2009

DECLARATION

I, hereby declare that the SIP Work titled, A Study on Store Operation With Reference to Coupon Mall, Hyderabad is an original work done by me under the Supervision of Dr M. M. Karuna, Assistant Professor (Marketing), IPE, OU Campus, Hyderabad and Mr. Srinivasan, Mall manager, coupon mall, Hyderabad.

This project has not been submitted else where for the award of any degree or diploma either in part or full in any university/institution.

Place- Hyderabad Date:

Palash Biswas

ACKNOWLEDGEMENT

Any work is incomplete without significant contribution and help of people involved in it. It is a pleasure to acknowledge my debt to the many people involved directly or indirectly, in the successful completion of the project. I would like to acknowledge the help rendered to me by Prof. R.K.Mishra, Director, IPE, Hyderabad, and Dr. V Srikanth, Coordinator, PGDM-RM, IPE, Hyderabad. I express my deep sense of gratitude to Mr A. Sridhar Raj, Asst. Prof and coordinator Sip for batch of 2009 for his timely help and integrity in handling my needs beyond a level that can not be described by merely words. I am grateful to my project guide Dr. M. M. Karuna for his continuous guidance and support during the tenure of the project. I take this opportunity to thank him profusely for his excellent guidance and support throughout the course of this project. My sincere thanks to Mr. Srinivasan, Mall manager, Coupon Mall, Hyderabad Unit. I am obliged to Mr Sandip, Merchamndiser of Coupon Mall for his continuous support and giving me this opportunity I would finally like to thank all others who helped me in the completion of the project whom I have missed out in Coupon Mall.

Palash Biswas

CONTENTS Page No.

CHAPTER 1 1.1 INTRODUCTION 1.2 NEED FOR STUDY 1.3 OBJECTIVES OF STUDY 1.4 METHODOLOGY 1.5 LIMITATIONS OF STUDY CHAPTER 2 PROFILE OF THE INDUSTRY CHAPTER 3 PROFILE OF THE COMPANY CHAPTER 4 THEORETICAL FRAMEWORK OF STUDY CHAPTER 5 ANALYSIS OF STUDY CHAPTER 6 FINDING CONCLUSIONS SUGGESTIONS ANNEXURES BIBLIOGRAPHY 92 95 97 70 60 33 8 1 4 5 5 7

1.1 INTRODUCTION One undeniable, truth in our world village is that todays cutting edge idea or product is tomorrows accepted Norm. The miniaturization of the mobile phone, the calculator becoming the computer, and many more are all examples of rapid progression and the rapid dissemination of exclusivity. And even Indian retail proposition is lending itself into exclusivity. The Indian retail industry is estimated to have a market size of $180 billion accounting for a national GDP of 10 percent. It is poised to see a growth of 11 -12 percent per year. India is placed sixth in the global retail development index and it is predicted that there will be 1000 - 1500 stores in each of the metros by next year. The India retail business has the capacity to employ over 2 million in new jobs within the next 6 years. About 60 percent of these are expected to be in the area of fashion and lifestyle, and customer satisfaction is one key area for the same. Retail industry in India is expected to rise 25 percent yearly being driven by strong income growth, changing lifestyles, and favourable demographics. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9 percent annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60 percent of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.
1.2 NEED FOR THE STUDY

The need for superb customer service is not astonishing, and the means for bringing it about are relatively well known. Nevertheless, too many businesses seem to accept the

need and means in theory but in practice they continue to deliver poor service. Retail stores whose owners are also managers tend to fare much better than chains that employ minimum-wage employees who dont care a whit about helping customers. Retail industry was the buzz word of the day. Though the retail industry was not opened 100 percent for Foreign Direct Investment, the Desi Capitalist (local) took the lead. Almost all the industrial houses of the country have entered into the retail industry. The big retail malls of the world like Wal-Mart are just waiting to enter into the band wagon once this sector of economy is fully opened up for FDI. In the light of such a competitive market of world, to attract the customer to their respective stores the retailers apply different strategies to satisfy its customers. This tool not only helps retailers to retain the old/repeated customers but also helps in getting new ones. So this shows an imperative need for studying the growing retail sector (retailers) strategies for customer satisfaction
1.3 OBJECTIVES OF THE STUDY The objectives of the study are as follows:

To study the operation parameters in Coupon Mall.


To improve the operational performance of the store. To create balance between sales and shopping space. To create effective merchandise presentation. To ascertain factor this will contribute to increase in sales of Coupon Mall.

1.4 METHODOLOGY

Observation Method of Research


Observation is a research method where the relevant behaviours of customers are observed. Behaviour of customers for various stimuli gives us information which can be understood through only observation. Sufficient time spent for observation of customers and their responses for various stimuli gives information inputs for research. It is felt necessary for this project.

The research design can be: Casual observation which takes place when managers on a continuous basic monitor variables such as competitive prices and advertising activities, the length or queue of the customers waiting for service etc. The benefit of observation method is that it is the least expensive and accurate method of collecting information (and data) and can measure consumer behaviour at the point of sale. What is the in store traffic pattern? What is the customers reaction to the displays Visual merchandising, etc.? What is the pattern of customers movement within the store? Which are the brands closely examined / preferred by the shoppers? What is the customers reaction to private / in store labels? Which are the frequently asked questions by the customers? What is the frequently asked question by the customers? What is the frequency of visit to the store, by the customers?

Observation can take the form of: (a) Direct Observation -- for instance, the retailer may use an observer disguised as a

shopper to watch apparel store shoppers approach a product category, to observe how long they spend time in the display area, did they find it difficult to get the product and so on.

1.5 LIMITATIONS OF THE STUDY: The study has the following limitations The study has been conducted only in coupon mall, Hyderabad and it may not be useful for any other brand factory or retail outlet. There may be respondent bias.

Time constraints restrict more study regarding store operation.

PROFILE OF THE INDUSTRY

2.1 INTRODUCTION In the current business environment a confluence of market forces has created an extremely complex climate in the global retail industry. In mature markets, retail sector is challenged by its inability to grow and maintain profit margins as a result of a constrained operating environment, market maturity & saturation, slow population growth, and more demanding consumers as well as highly volatile consumer behavior. Apart from these there are concerns of rising competitive pressures, transformation of alternative sales channels- including "bricks (stores), clicks (web), rings (call centers), and knocks (services to the home), a blurring of roles between suppliers and retailers." also, as consumers have become empowered through access to information, wherever and whenever they want it, retailers have become more relevant to the consumer at the point of purchase and hence a shift in the balance of power to the retailers. As an outcome, the strategic focus of the entire retail sector is moving towards the emerging economies of Asia and central & eastern europe- china and India in particular. These economies offer expanding consumer markets with new opportunities for growth through global sourcing, off-shoring and the huge potential for development of modern/ organized retailing.

2.2CATEGORIZATION OF RETAIL INDUSTRY

The retail trade in India & India south East Asia is shown in table below Table 2.1 Retail trade in India & South East Asia RETAIL TRADE IN INDIA & SOUTH EAST ASIA (in %ge) Organization Unorganized 4 96 20 80 15 85 25 75 35 65

Countries India China South Korea Indonesia Philippines

Thailand Malaysia Source: Crisil

40 50

60 50

Unorganized retailing refers to traditional formats of low cost retailing like local kirana shops, owner manned general stores, pan shops, and convenience stores etc. The size of Indian organized retail markets is shown in table 2.2 Table 2.2 Size of Organized Retail Market Size of Organized Retail Market (In Rs Cores) 2001-02 Large Segments 8,850 Other Segments 6,050 Non-Store Retailing 1,100 Total Organized Retail 16,000 The 4 Large Segments FOOD Chain Store 1,500 Single Large Stores 300 1,800 CLOTHING Manufacturing Retailing 1,350 Chain Stores 1,450 Single Large Stores 2,150 4,950 CONSUMER DURABLES Manufacturing Retailers 650 Chain Stores 450 Single large Stores 550 1,650 BOOK & MUSIC Chain Stores 250 Single Large Store 200 450

2007 23,109 12,159 1,939 37,216 6,726 746 7,473 2,715 3,919 3,789 10,423 1,307 1,373 1,106 3,787 928 498 1,426

Source: Changing Gears-Retailing in India, The Economic Times 2.3 Retail Trends Trends in major markets

US Retail is the second-largest industry in the United States both in number of establishments and number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually ($4.2 trillion if food service sales are included), approximately $11,993 per capita. The retail sector is also one of the largest worldwide.
Wal-Mart is the world's largest retailer and the world's largest company with more than $312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than 400,000 internationally. Retail trade accounts for about 12.4 percent of all business establishments in the United States. In USA, Single-store businesses account for over 95 percent of all U.S. retailers, but generate less than 50 percent of all retail store sales.

UK

In UK, 11% of all VAT-registered businesses are retailers; with the total number currently at 180,875.UK retail sales were 265 billion in 2007, which is much larger than the combined economies of Denmark and Portugal. The Retail sales of the country account for 1/5 of its total economy. The retail sector generates almost 8 percent of the Gross Domestic Product of the UK. More than a third of consumer spending goes through shops. The Sales over the internet account for less than 4 percent of total retail sales, despite there being a strong growth in recent years. Over 3.0 million people were employed by the retail industry by at the end of December 2007 which is almost 11 percent of the total UK workforce.

India

The Indian retail market is the fifth largest retail destination globally. The current size of the Indian retail industry stands at $511 billion in 2008. Simultaneously, modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. Organized retail in India raked in US$ 25.44 billion turnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping

growth rate of 49.73 per cent (according to the Credit Rating and Information Services of India). Organized retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Though the market has been dominated by unorganised players, the entry of domestic and international organized players is set to change the scenario. Per capita retailing space is about 2 sq. ft (compared to 16 sq. ft in the U S). India's per capita retailing space is thus the lowest in the world. Around 7 percent of the population in India is engaged in retailing, as compared to 20% in the USA. Statistically, the global retail industry is witnessing a CAGR of 5.5% is slated to grow at the same rate till 2009. The following graph shows an overall trend of the global retail revenues.

2.4 INDIAN APPAREL RETAIL MARKET India has positioned itself strongly as the third most attractive apparel retail market after Brazil and China. Apparel is the second largest contributor to the overall retail revenues in India. Apparel retail represents 10 percent of India's total retail market. The market size is expected to reach to a massive $37 billion in 2008. Whilst the overall retail industry is expected to grow at 10 per cent, the apparel industry is expected to experience a growth rate of 12-15 per cent per annum. The footprint of the organized retail the apparel retail sector versus the overall retail market represents an interesting scenario. While organized retail forms only 5 per cent of the total retail industry, it contributes close to 20 per cent in the apparel market. This reflects that the apparel market is by far one of the most mature and dynamic sectors of the Indian retails story. India's apparel retail scenario is upbeat because of various reasons.

Some of them being:

The consumer spending is rapidly increasing at a rate of 8 percent which is much faster than the traditional retail giants viz. USA, United Kingdom and Japan and emerging countries like China. This can be attributed to a steady growth rate of 6 per cent in the middle class income, thus giving a boost to the purchasing power of bulk of the consumer segment. There has been a unprecedented rise in the number of apparel focused shopping malls in India Changing consumer behavior, penetration of credit cards and popularity of fashion wear clothing in tier-2 and tier-3 Indian cities is driving the growth in the sector Market is still immature and fragmented. This makes the sector attractive for new entrants. There is a huge market potential for both private labels as well as branded apparel, Diversity in the socio-economic clusters opens the market at all price points and brands with diverse positioning. Indias laws and FDI regulations are slowly and steadily opening up for global retailers and there is a huge opportunity for apparel brands to join the Indian apparel retail bandwagon.

2.5 CONTRIBUTION OF FDI IN INDIAN RETAIL Permitting Foreign Direct Investment in the retailing sector can have immense benefits. It can generate huge employment for the semi-skilled as well as illiterate population which otherwise cannot be employed in the already confined rural and organized sector. The retail sector is highly dependent on the rural sector. Thus it can facilitate the improvement of the standard of living of farmers by purchasing commodities at a reasonable cost. It also stems out as an indirect employment generation channel by training and employing people in the transportation and distribution sectors such as drivers, mechanics etc. It is also evident that real estate is a genuine challenge for organized retailing. Traditional retailers can use this situation in their favor by taking

franchisees of the mega players of this industry. On the other hand, the consumer gains from the wide variety of choices and a more diversified basket of prices available under one roof. Secondly the indirect benefits like better roads, online marketing, expansion of telecom sector etc. Will give a big push to other sectors including the rural one itself. Last but not the least the huge tax revenue generated from these retail biggies and collected in government coffers will gradually wipe out the ugly looking fiscal and revenue deficits. Besides the transaction in foreign currencies, these mnc's will create a balance in exchange rate and will bring in stable funds in the economy as opposed to FIIs hot money. This will in turn act as a boost to the developing (or transforming, as suggested by the USAID) economy of India.

2.6 COMPETITION

The organized retailers are financially sound in investing in Big Business promotion, Aesthetic looks, Technology, Supply chain management etc. Their business principle is The bigger the better. The bigger the retailers the better it can counter competition from small retailers and sustain business. But the unorganized retailer cannot compete and are trying to fight hard against organized retailers. However, they cannot afford to invest heavy on technology and other inputs. Due to tough competition, Customers have lot many opportunities and choices to go for. Unless local retailers offer them best prices they will not be interested to come back. Unorganized retail stores are finally waking up to become competitive and trying to attract more consumers.

2.7 RETAIL SPACE

Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expanding at a rapid pace. Mall space, from a meager one million square feet in 2002, is expected to touch 40 million square feet by end-2007 and an estimated 60 million square feet by end-2008, says Jones Lang LaSalles third annual Retailer Sentiment Survey-Asia.

Alongside, Indian cities are witnessing a paradigm shift from traditional forms of retailing into a modern organized sector. A report by Images Retail estimates the number of operational malls to more than double to over 412 with 205 million square feet by 2010 and further 715 malls by 2015, on the back of major retail developments even in tier II and tier III cities in India. 2.8 RETAIL REFORM The Government allows 100 per cent foreign direct investment (FDI) in cash and carry through the automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators. To further attract global retailers, the economic survey 2007-08 has suggested a share for foreign equity in all retail trade and 100 per cent in respect of luxury brands and other specialized retail chains. Some big guns like Walmart, entering the Indian markets with partnering with the Indian company has fueled the retail industry further to new lines. Govt. encouraging the MNCs to open their stores in India

2.9 RETAIL AS A FORCED EMPLOYMENT SECTOR It is important to understand how retailing works in our economy, and what role it plays in the lives of its citizens, from a social as well as an economic perspective. India still predominantly houses the traditional formats of retailing, that is, the local kirana shop, paan/beedi shop, hardware stores, weekly halts, convenience stores, and bazaars, which together form the bulk. Most importantly, Indian retail is highly fragmented, with about 11 million outlets operating in the country and only 4% of them being larger than 500 square feet in size. Compare this with the figure of just 0.9 million in the US, yet catering to more than 13 times of the Indian retail market size. Retail trade is an employment spinner, too: Employment generation initiatives like foodfor-work programmed seem to have had a positive impact. The fifth Economic Census report, released on Thursday, said there has been a decent increase of 2.78% in the rate of

employment generation in the country during 1998-2005, as compared to the rate of 1.75% during 1990-98. Most significantly, even as the government is studying the implications of the report by the Indian Council for Research in International Economic Relations (ICRIER) on the Impact of organized retail on the unorganized sector released this week, it would be pertinent to note that retail trade alone accounts for 41.83% job opportunities with 14.95 million employed in the sector, according to the Economic Census report. In fact, establishments involved in retail trade claimed the highest percentage both in the rural (39.28%) and urban (45%) areas. It has been the most sought after activity amongst own account establishments with a share of 48.45%. In rural areas, 46.52% own account establishments were set up for retail trade while the percentage was 51.44 in urban areas. The ICRIER report, commissioned by the Department of Industrial Policy and Promotion in February this year was to assess whether or not the organized retail would displace the unorganized retailers. The study has given a verdict in favor of modern retail, primarily on the basis of a supply crunch, which would arise if organized retail was not allowed to expand at its current rate of growth, which is pegged at 45-50% annually. Unorganized retail is simply not growing fast enough, ICRIER found. To minimize the adverse impact of organized retail on traditional retailers, ICRIER has recommended strengthening the role of Competition Commission of India in preventing any collusion or predatory pricing and ensuring availability of institutional credit to the traditional retailers, only 12% of whom apply for bank loans in the first year of retail operations. The Economic Census has found that retail trade was the preferred activity among establishments with hired workers as well with a share of 31.47%. Manufacturing accounted for 23.17% of the total establishments. Education claimed the third position with a share of 8.91%. Retail trade along with manufacturing and social and personal service activities have emerged as the three major non-agricultural activities giving the maximum number of jobs, with a share of more than 72% of the total establishments. Manufacturing establishments followed retail trade with 8.32 million people employed. Social and personal service activities employed 7.35% during the review period. In the non-agricultural activities like retail, manufacturing, real estate and hotels and restaurants, the maximum numbers of workers

were engaged in manufacturing with 25.48 million people followed by 25.14 million workers in retail trade and 7.49 million in education. These three activity groups accounted for about 65% of the total employment in the non-agricultural sector. Among the agricultural activities, 87% (5.29 million) were involved in rearing animals as high as 94.3% of the total establishments in this sector were in rural areas. An interesting finding of the Census is that rural areas had more of the establishments under nonagricultural activities like retail trade, manufacturing, hotels, real estate and education at 55.46 % compared to 44.54% in urban areas. The situation in the states: A state-wise distribution of all establishments shows that bigger states have comparatively smaller size establishments. Around 5.5 % of total establishments in Arunachal Pradesh and about 11 % of establishments in Dadra and Nagar Haveli and Daman and Diu employ about 10 workers. The all-India average is about 1.5 % of the total establishments employ about 10 workers. The report further stated that 64.24 % of the total workers worked in establishments that employed less than six workers. Establishments employing 6-9 workers employed 10.24 % of the total workforce while those employing more than 10 workers gave jobs to 25.52 % people during 1998-2005. Among the states, Tamil Nadu had the maximum number of agricultural establishments (1.09 million) constituting 17.99 % of all agri establishments in the country. It was followed by Andhra Pradesh (16.15%) and Kerala (14.48%). In case of own account establishments in agricultural activities too Tamil Nadu had the highest number of establishments (19.19%) followed by Andhra Pradesh (16.03%) and Kerala (15.84%). Andhra Pradesh provided maximum employment in the rural areas (13.14 % of the total rural employment), followed by West Bengal, Tamil Nadu, UP, Kerala and Maharashtra. Among the urban-employment providers, Maharashtra topped the list providing the maximum employment at 14.10 % of total urban employment. In rural areas, Gujarat (12.90%), Andhra Pradesh (18.71%), Kerala (11.15%) and Tamil Nadu (14.81%) provided for more than 11 % of the total employment in rural agricultural establishments with Andhra Pradesh employing the maximum number at 1.90 million. In urban areas too each of these states shares more than 10 % of total employment in urban agricultural establishments. Kerala had the maximum share of 17.03 %. As regard to

hired workers in the agricultural establishments, the concentration was observed mostly in the states of Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu. Andhra Pradesh provided the maximum of 28.64 % of the total agricultural hired workers. Andhra Pradesh employed the maximum number of people (1.99 million) in agricultural establishments constituting 18.21 % of the total agricultural employments, followed by Tamil Nadu (1.59 million) and Gujarat (1.39 million) (-Economy Bureau Posted online: Friday , May 30, 2008 at 2124 hrs IST). Therefore, they find jobs in the informal sector, mostly in retail. In this light, one could brand this sector as one of forced employment, where the retailer is pushed into it, purely because of the paucity of opportunities in other sectors. 2.10 ROLE OF SUPPLY CHAIN IN INDIAN ORGANISED RETAIL In the organized retail market in India the role of supply chain is very important for the Indian customer demands at affordable prices a variety of product mix. It is the supply chain that ensures to the customer in all the various offerings that a company decide for its customers, be it cost, service, or the quickness in responding to ever changing tastes of the customer. The infrastructure in India in terms of road, rail, and air links are not sufficient. And so warehousing plays a major role as an aspect of supply chain operations. To overcome these problems, the Indian retailer is trying to reduce trans portion costs and is investing in logistics through partnership or directly. The Indian organized retail sector is growing so the role of supply chain becomes all the more important. It should become all the more responsive and adaptive to customers demand. There is also need for the supply chain to be more cost efficient and collaborative to win the immense competition in this sector. The role of supply chain in Indian organized retail has expanded over the years with the boom in this industry. The growth of the Indian retail industry to a large extent depends on supply chain, so efforts must be made by the Indian retailers to maintain it properly. 2.11 EMERGING TRENDS IN INDIAN ORGANISED RETAIL SECTOR

The emerging trends in the Indian organized retail sector would help the economic growth in India. There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad. The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector. The infrastructure of the retail sector will evolve radically in the recent future. The emergence of shopping malls is increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade. The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector. The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities. With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future: The Indian Organized retail sector will grow up to 10% of total retailing by 2010. No one single format can be assumed, as there is a huge difference in cultures regionally. The most encouraging format now would be the hyper marts.

The hyper mart format would be further encouraged with the entry of the TNCs. 2.12 COMPARATIVE PENETRATION OF ORGANIZED RETAIL The Indian retail sector is highly fragmented with 97% of its business being run by the unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 9-10% by the year 2010 bringing in a huge opportunity for prospective new players. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10% of India's GDP.

Source: Ernst &Young, the Great Indian Retail Story, 2008. Industry analysis of the Indian retail sector: Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty

chains. However, kiranas still continue to score over modern formats primarily due to the convenience factor.

Source: IT Retailing: Are You In The Loop? July 16, 2008. The organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labor law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct

to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years. List of retailers that have come with new formats: Retailer Shoppers' Stop Ebony Crossword Piramyd Pantaloon Subhiksha Vitan Foodworld Globus Bombay Bazaar Efoodmart Metro S Kumar's Current Format New Formats. Experimenting With

Department Store Quasi-mall Department Store Quasi-mall, smaller outlets, adding food Large bookstore Own brand store Supermarket Supermarket retail Corner shops Hypermarket Considering moving to self service Suburban discount store

Department Store Quasi-mall, food retail

Food supermarket Hypermarket, Foodworld express Department Store Small fashion stores Aggregation of Kiranas Aggregation of Kiranas Cash and carry Discount store

Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labor and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, kiranas have now

started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities.

2.14 ORGANIZED RETAILING ITS FUTURE PROSPECTS IN INDIA:As per the statistical evidence to us it seems, that the organized retail industry has a lucrative future and it will gradually result in employment generation and further contribute to the GDP of the country. But we have to be rather skeptical enough about the figures as predicted for future growth of organized retailing and that will be possible only if organized retail covers both rural and urban population. As the second most populous country in the world, India has the potential to develop into a large consumer market, with rising earnings and disposable incomes. Nearly three quarters of the countrys population are living in rural areas and urban population in increasing. India has the advantage of relatively young population with over 160 million people are in 15-25 age group. Current per capita income is not very high. But above average in the states like Haryana, Punjab and Maharashtra. Overall 5.6 million people can be classified as very wealthy. The Euro monitor survey among upper income urban households reveals that in this segment annual per capita expenditure is as high as Rs.98988. government consumption figures place food as accounting for 50% of consumers expenditure. Urban per capita expenditure levels are on an average of 1.5 times higher than rural levels. States with above per capita expenditure levels include Kerala, Gujarat, Maharashtra and Punjab

food sells account for 73% of total retail sells and are therefore the important sector for retailing. There is a lot of scope for malls considering the fact that over 40% of high income group population lives in the countrys top cities where as organized retailing has till date looked at the top 5 or 6 cities. In the next few years the number of shopping malls is expected to increase rapidly with large number of new malls being built around the country. 2.15 PROSPECTIVE FACTORS FOR RETAIL GROWTH:The factors mentioned below clearly indicate that retailing is bound to grow. Changing shape of income distribution:This will create a new consumption push by 2007-08 a traditional bottom heavy triangle with most people in the lower income group and a few in top indicates that the centre of gravity of market consumption and of the reference group, which defines aspirations, is very low. As the shape of income distribution starts bulging in the center, both the center of gravity of market consumption and of the reference group, which defines aspirations, will shift. Income growth:Between 1996-97 and 2002-2001 per capita income on an aggregate basis grew by compounded annual rate 3.2% but high income households grew much faster by about 20% a year after year between 1995-96 and 1998-99. According to national council for applied economic research, upper middle class basis during that period grew by 10% on a compounded annual growth basis during that period in urban India the trend is even more pronounced. The liberation children grow up:The post liberalization generation is coming of age. This year there are a million, 17-21 years old in India, and six out of ten household have a liberalized child. This is a generation, which has grown up with no guilt about consumption.

Rise of self employment:Rural India has always been largely self employed .But now the proportion of the self employed in urban India has raised to 40% plus, replacing the employed salary earner as the new main stream market, a study shows that even on the creamy layer, comprising the top two social classes in town of 10 lakh of population in urban India, 40% of the chief wage earner are shop owner, petty traders, business men and self employed professionals. Unlike the salary earner, the self employed use products much more to signal success and also fast adopters of any productive tools like cell phones and two-wheelers, that can help them earn more. The rise of women:Like the self employed people, women too are saying I can and I will and are emerging as partners in family process. Not so much from earning the second income but by being CEOs of household and intellectual nurturers of their child. Government initiative:Organized retail growth till now has been achieved primarily due to rising consumerism and initiatives in the private sectors. Currently onus is mainly on the government to give industry status to retail. There is also a need to include 90% traditional retailers and give them a fair chance to adopt themselves to the changing environment by getting them on the same level playing ground as the corporate backed retailer with respect to access to financial services. Foreign investor should also be encouraged and provided a levelplaying platform as the global players. However to encourage fair play by the player and enforce corporate governance, an option to allow FDI with the conditionality of mandatory allotment of min 24-28% equity to public. Once industry status is given, the government will have to immediately look at single window clearance for all license for store at local level, take retailers on board for the implementation of VAT, remove infrastructure bottlenecks like power and communication and amid land, labor and as few other acts like shop and establishment act across various states and cities.

2.16 STRATEGY FOR ORGANIZED RETAILING REVOLUTION Indian retailing has its own format that cannot be standardized; it varies even from state to taste. The format of retailing is based upon of diverse strategies adopted by retailers across the country, being different for rural and urban areas. Although cost of the strategies like merchandise optimization, using innovative sale promotion, discount shares, selling on USP, careful organization of loyalty programs, differentiating new generation retail stores and regular in house research are quite common. But in order to steam line the entire retail business throughout the country following strategies can have widely implications in the time to come. Retailing must be institutionalized in India in broader scale:Although institutionalized retailing has started in India by systematic set up of supply chain management but it is still at juvenile stage. Institutionalized retailing will result in retailers increasingly handling their own distribution networks. It will become a vital criterion for success in future by its ability to harness worldwide distribution and logistics network for purchasing. The global supply chain will insure high level of availability that consumer want to buy. Retailing should be branded:Branded retailing again as a concept has not flourished much in Indian market. Although few retailers has launched their private brands, like kids Kemp and shoppers stop. Branding of retail outlets will help in improving brand image and brand equity of the retail outlets and thus giving them better market share along with sustained profits. Relationship Marketing based retailing:This is utmost important in present times of severe competition. Relationship based retailing will result in retention of customer for life time value. Therefore relationship marketing will require data base management to relationship marketing a practice.

2.17 Obstacles in Organized Retail Growth Restructuring of unorganized retail to organized retail setup:The retail industry as such consists of small scale retailers who can create lot of barriers in industrialization of retailing. The best strategy to overcome such type of barriers will be to go for mergers of such types of small retail outlets with global format retailer. Retailing yet to receive industry status:Retail outlet owners in order to modernize and become organize require huge investment they need support of financial houses, that is still absent. Unless and until it is given industry status which will result in government focus and top priority for development along with huge FDI support the retail industry will not grow. Administrative and legal setup:The industrialization of retailing now requires new legal setup to control and customize retailing. It requires that these retailers have to use barcode products and this may not be so supplied by the manufacturers. The retailers have to arrange and play for the barcode facility. This may led to some extra cost on their part. Again some rules of competition need to be framed or else the large retailers will form cartels and make situation unfavorable for small retailers. Re-orientation of selling kit:Many of the global format retailers who did not include grocery items in their selling baskets had tough time to face and could not maintain sustainable inflow of revenue. Thus seeing Indian market condition it has been an acknowledge pattern that unless grocery items or closer to grocery are not included in the selling basket the retailers will not be able to cash their effort.

PROFILE OF THE COMPANY

3.1 PRATEEK LIFESTYLE Caching in on the booming retail space, Prateek Lifestyle is venturing into Value Lifestyle Malls, and has plans to revolutionize this segment further. The first Value Lifestyle Mall COUPON was launched in Bangalore in July 2007. Coupon is a seamless mall with a wider range of apparel footwear and accessories for men, women, youth and kids. Coupon also stocks a wide range of products for the home including home linen and home dcor accessories. The Value Lifestyle Malls sells branded apparel that is one season old, at a discount. Brands include Adidas, Allen Solly, Arrow, Bossini, Benetton, Biba, Bombay Dyeing, Dockers, Enamor, Gini and Jony, Jockey, Lee, Levis, MTV, Nike, Puma, Reebok, SF Jeans, Scullers, Urban Yoga, Weekender Kids, Zapp, ZYXW among others. Prateek Lifestyle aims to have more than one store in the top 10 metros. Prateeks next venture is into Kids Wear, for which it has tied up with German brand, Kanz, one of Europes largest kids wear brands. 3.2 PRATEEK APPARELS A full-fledged apparel manufacturing unit, begun in 1995, Prateek Apparels now boasts of clientele of leading brands including Westside, John Players, Levis, Dockers, Lee, Wrangler, Van Heusen, Cottons by Century among others. From concept to design Prateek Apparels provides value-ads at every stage. Taking on a comprehensive approach, the companys services include brand research, fashion forecast, brand communication, design and product development, merchandising client interface, sourcing, production, planning and control, manufacturing and quality assurance. 3.3 MUNCH DESIGN WORX Since commencing operations in 2004, Munch Design Worx has come a long way in design management, by offering a range of creative solutions to international and domestic clients across the spectrum of fashion and lifestyle industries. The company is into graphics, textile design, accessory design, packaging or visual merchandize concepts among other creative solutions.

3.4 PRATEEK LIFESTYLE PLANS RS 350 CR EXPANSION Prateek Lifestyle, the retail arm of Bangalore-based apparel manufacturer Prateek Apparels, has charted out a major retail expansion of its value lifestyle format Coupon and kids wear brand Kanz across the country at an investment of Rs 350 crore. The company would raise this amount through a combination of promoter funding, debt and equity. The six-month-old retail venture, which currently has two Coupon malls - one each at Bangalore and Raipur in Chhattisgarh with a combined carpet area of 50,000 square feet - plans to add 12 to 15 stores each year for the next two years, thereby occupying approximately one million sq ft of retail space. The parent company has been providing design to manufacturing to delivery solutions to most of the leading brands and retailers, group MD Pradeep Agarwal told. With strong understanding of fashion trends and Indian consumers, we thought this was the right time to exploit opportunities in the growing retail space According to industry estimates, the Indian retail market, which is the fifth largest retail destination globally, is expected to grow from $342 billion in 2007 to $427 billion by 2010. Of this, the organized retail, which at present accounts for 4 per cent of the total market, is likely to increase its share to 22 per cent by 2010. Coupon malls, with an average size of 30,000 sq ft each, would be opened in metros and minimetros, besides potential tier-II and tier-III towns. Apart from Bangalore, National Capital Region, Mumbai, Chennai and Kolkata, other regions that are on the companys radar include Hyderabad, Kochi, Kozhikode, Nagpur, Pune and Lucknow. We should be having eight to 10 stores in south itself, he added. Prateek had entered into a licensing agreement with European kids wear brand Kanz in September 2007. We already have exclusive brand outlets for Kanz at Delhi, Ludhiana, Kolkata, Mumbai and Bangalore. We will be taking this to 35 exclusive brand outlets by this year end and will be at 100 retail doors in totality, he said, adding that the company was also contemplating launching smaller discounted formats at a later stage.

The parent company, comprising Prateek Lifestyle, manufacturing arm Prateek Apparels and Munch Design Worx, a division that offers a range of textile and accessory designs and visual merchandise concepts to international and domestic clients, garnered revenues of Rs 275 crore last year. Exports account for about eight per cent of its revenues. 3.5 PRATEEK LIFESTYLE OPENS COUPON MALL Bangalore, June 27 Prateek Lifestyle, the retail arm of Prateek (a player in apparel manufacturing and design), has announced its first retail venture Coupon, a chain of value lifestyle malls. The first Coupon mall has been set up in Bangalore. Spread over four floors, the 50,000-sq. ft mall promises to offer around 140 brands in categories such as apparel, footwear, accessories and home furnishing at discounted prices. Mr. Pradeep Agarwal, Managing Director, Prateek, said, Through this venture we will provide the best of national and international brands across categories at the best of prices with discounts ranging from 30 per cent to 55 per cent. We will also soon launch our private label. Mr. Agarwal said the plan is to open a chain of Coupon malls across the country to tap the organized value retailing segment, which is currently estimated at Rs 6,000-8,000 crore. The second Coupon mall will come up in Ahmedabad by mid-August. Prateek Lifestyle will roll out 12 malls by March 2008 in 10-12 cities such as Kolkata, Chennai, Hyderabad, Mumbai, Delhi and Pune. It hopes to have 50 malls by 2010. By the end of March 2008, with 12 malls, we hope to have revenues of Rs 250-300 crore, said Mr. Agarwal. The total investment in this venture is about Rs 500 crore. Prateek Lifestyle also has plans to enter other apparel verticals kids wear and lingerie. After Coupon, the companys next retail project will be the launch of kids wear range Kanz from Germany, followed by a tie-up with a European lingerie brand. Prateek Lifestyle aims to have 100 retail outlets by the end of this financial year in all three retail verticals. Prateeks other divisions are Prateek Apparels, which supplies apparel to the domestic market for clients like Westside, Arvind and Madura Garments and Munch Design Worx.

3.6 PRATEEK LIFESTYLE OPENS COUPON STORE IN HYDERABAD Prateek Lifestyle, an arm of the apparel manufacturer, has opened its third discount retail format Coupon here after Bangalore and Raipur. Addressing a press conference here on Thursday, Mr. Pradeep Agarwal, Managing Director of Prateek Apparels, said the company would open two more such outlets in Faridabad and Calicat in the next few weeks. Next year, we will open 12 more stores. We would have invested Rs 140 crore by March 2009, he said. Several brands We entered into agreements with several brands to sell their products at a discounted price. We have lined up over 150 brands in footwear, accessories, apparel and home dcor products, he said. While making our presence felt in top cities, we are also looking at tier-II and tier-III cities like Ghaziabad and Jalandhar, Mr. Agarwal said. The company, which had received a round of venture capital funding from SIDBI, had recently announced plans for investments to the tune of Rs 350 crore on its retail initiative to set up a network of 50 stores by 2012. 3.7 VARIOUS IMPORTANT DEPARTMENTS IN COUPON MALL Coupon mall offers a wide and contemporary range of innovative products, sourced from both local and international markets. The product range varies from Home ware, Accessories, Fabrics, Clothing Apparel, Footwear and Luggage. Coupon mall consists of certain important departments: Operations Store operations and Store Opening. Buying and Merchandising Marketing Distribution and Logistics Projects Administration Information Technology Visual Merchandising Facilities

Accounts and Human Resources

The store operations look into the various sections of the store like the shop floor departments, receiving, maintenance, security, checkout counters, etc. The store opening team looks into all processes involved before opening the store for trading and then hands it over to the store operations team. The B&M team is responsible for procurement of stocks in necessary quantities and also vendor details in accordance with the companys policies. Distribution and Logistics looks into warehousing, import and export operations, store operations through a third party vendor. The projects team is involved in Store planning and design, Implementation and Business Development. The Administration team looks into housekeeping, security duties and key areas under maintenance. IT team is the backbone of all operations in the store starting from system access IDs to functioning of departments. The responsibilities of VM includes looking after signages, templates, clusters, focal points, color blocking, racking capacity, etc.

Facility Management comprises of operation and management of the Electricity, Transformers, Electrical Distribution Systems, Captive Power (Generators), UPS and Inverter Systems, Lighting Systems, Air-conditioning, Passenger lifts, Escalators and Music Systems.
Accounts and HR provide the basic framework of the organization. The Store opening team commonly known as SOT plays a major role in creating the store. The Projects team hands over the store to Operations department once the store planning, design and construction is complete. The types of fixtures needed and facilities necessary are made available.

The SOT takes charge of the store now and collects the layout and necessary documents of the store plan. The whole procedure is divided into two main parts: Before Handover After Handover.

The complete procedure is elaborated step by step as per the SOT checklist. The SOT follows certain principles of merchandising as this means to be the most important job among all other roles played by this team. Merchandising is the Supply Chain practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. This is done exclusively by the stores employees. The principles are proper Ticketing, End to end merchandising, introducing display trays and Signages. 3.8 THE OPERATION PARAMETERS IN COUPON MALL MERCHANDISING DEPARTMENT:-

Merchandising is a key activity used in retailing to convince the customer. Merchandising is essentially the ability to decide which item will go on the shelves. Merchandising also related in taking decisions to the categories to which the store will give prominence. Big retail stores need several merchandise so that every category receives the merchandising expertise. Today in the highly competitive market many companies see that stores as a whole becomes a display unit, attracting high consumers traffic, proper merchandising and display at the store level promotes sales, it persuades the customers to buy now rather than later. In store brand compete with each other for consumer attention. Proper merchandising and display at the store level promotes sells. To capitalize on merchandising opportunity, more retailers are now turning to micro merchandising and cross merchandising.

Cross merchandising:-In this retailer carries complementary goods and services so that shoppers are encouraged to buy more. Cross merchandising can be ineffective if not done properly. TOOLS OF MERCHANDISING Display:Like window display, wall display, counter display, aerial display, floor display, facade, fixture alignment, promotional signage, mannequins display, island displays. Communication:Communication of sales promotion is done by Dangelers, ticketing/standees, permanent signages

Innovation Forecast

Merchandising Plan
Allocation

Assortmen t

Limiting

Brands

Operational parameter consists of the entire following thing: Light Floor AC Focal points Signage

Racking capacity Ticketing Staff discipline Staff grooming Indenting Replacement Display VM WAREHOUSE DEPARTMENT Warehouse operations begin where merchandising function ends. Round the clock operation distinguishes the key department from the other. Physical logistics, which are vital to insure product reach the ultimate consumer, are under the purview of the warehouse. This makes it a critical link pin. Warehouse consists of inwards stocks, gate pass, receivers and the register maintenance. Customer service desk:-

Customer service desk

Exchange service

Customer servi Alteration

INDENTING
The process starts when the individual stores raise the indents. Here the indent is not auto generated. Each store will be raising daily indents (i.e. for the indent raised on day 1 delivery would happen on day 3, 48 HOURS Lead Time) for the requirement based on the actual sales data. This is done manually by the individual store and would later on be automated.

ADMINISTRATION DEPARTMENT These are the following facilities provided by administration department in Coupon Mall: Electricity Transformers Electrical distribution system Captive power UPS and inverter system Lighting system Air-conditioning system Passenger lifts, Goods/ service lift, escalators and revelators Music systems,PABGM,CCTVand access control systems Air curtains and automatic door closures Chillers and freezers Electric article surveillance (EAS) system Merchandise furniture ,fixtures and accessories Fire extinguishers, Fire alarm panels, smoke detectors and fire hydrant system Building plumbing and sewage systems General carpentry works Water supply and plumbing maintenance IT peripheral ,displays and security hardware

Building maintenance, facade glazing, rolling shutters, painting and civil works

IT DEPARTMENT These are the following services provided by IT department in Brand factory: Networking Issue Mailing issue Hardware Issue Day closing activities

PILFERAGE CONTROL MEASURES Conceptual Understanding: Pilferage is the theft of part of the contents of a package. Broader aspects of theft may include taking the entire contents, entire package, pallet load, truck load, shoplifting etc. Solutions may involve all phases of product production, distribution, logistics, sale and use. No single solution can be considered as pilfer proof. Often multiple levels of security need to be addressed to reduce the risk of pilfering. Some considerations might include: Identify who a potential pilferer might be: an internal employee, security guard, truck driver, delivery person, receiver (consignee), organized crime, etc. Identify all feasible methods of unauthorized access into a product, package, or system. In addition to the primary means of entry, also consider secondary or back door methods. Identify available means of resealing, reclosing, or replacing special seals. Improve the pilfer resistance to make pilfering more difficult, time-consuming, etc. Conceal the identity and value of a pilferable item. Add pilfer-evident features to help indicate the existence of pilfering. Choose a logistics provider who can reduce the risks of pilferage.

Educate people to watch for evidence of pilfering. Loss prevention is a form of private investigation into larceny or theft. The focus of such investigations generally includes shoplifting, package pilferage, embezzlement, credit fraud, and check fraud. Loss prevention or LP is used to describe a number of methods used to reduce the amount of all losses and shrinkage often related to retail trade. The objective is to maximize profits through reducing shrinkage. Retail operations suffered majority by annual shrinkage. Although most retailers experience a shrinkage percentage of less than 2 %, some smaller retailers often experience monthly and annual average shrinkage percentages as high as 20%. According to a study by the National Retail Security Survey 30.6% of shrinkage comes from shoplifting, 46% from employee embezzlement, 17.6% form administrative error, and 5.8% from Vendor fraud. Because of the inherent need for companies to reduce operational costs, there is an ever-present need for experienced LP professionals, particularly in the retail sector. Among larger retailers there is a recent trend to include worker and customer safety programs into the traditional loss prevention job structure. Learning Objective: To understand the ways and means to arrest pilferage in the store. CUSTOMER ENTRY MEASUREMENT Customer Entry Measurement is accurately counting of the number of people who entered our store during store trading hours. The crowd a store pulls in- also called footfalls- at different times of the day is studied and analyzed. Performance of operational parameters can be judged by the conversion rate derived from footfalls. Objective

Customer Entry Tracking is a measure of performance of the store operation and marketing activities. To accurately measure visitor and customer traffic into the store. To maximize potential sales by finding out the days and times the store has the most customers. To engage potential customers with the requisite amount of staff based on the number of customers in the store. To compare footfalls reports with sales data to derive conversion ratios. To find out which advertising campaigns resulted in increased visitors and sales. Process (At each entrance) A numerical clicker to be made available for each entrance at the store. Each and every child and adult walking in should be counted. Every individual in a group/family to be counted as a separate entity. At the end of every hour, the security guard /s to note down the footfall for the past hour in the register. The total footfall- for the day to be entered into the Daily Sales report (DSR) for conversion ratio. SECURITY SERVICES An ideal store needs a well-protected environment to safeguard its customers, staff, products, machines and premises from thefts, damages, accidents etc. This process describes the key role to be played by various security personnel deployed at the store. Security at the Store is broadly under three categories: Security Supervisor Security Guards Vigilance Officers

Security Team to work under supervision and control of the Loss Prevention Manager of the Store. Guidelines for Security Team Security Team should have smart, alert, and active guards Security Team to keep themselves informed of all instructions affecting their duties and responsibilities. Security Team to be conversant with the usage of fire fighting equipment and to undergo such training as to be familiar with their use. Security Team is given the discretionary right of search in respect of store Personnel vehicles, contractors, vendors or others, entering or working at the store. Security Team to be polite and courteous, yet firm in all dealings with the public. The guard will exercise restraint and avoid being provoked. Locations for Security: The following are the locations at the store where the security guards will be deployed. The location schedule to be decided by the Security Supervisor in consultation with the Loss Prevention Manager of the store. Based on the Peak Hours in business, the Store Manager to decide the no of guards to be stationed at: Staff Entry and Exit Customers Entry Customers Exit Baggage Counter Floor Trial Rooms Store Warehouse

Parking Lot FIXTURES AND EQUIPMENTS IN THE STORE Conceptual Understanding: Store fixtures are of two kinds. They are mobile/fixed pieces of equipment used to display products. Store fixtures vary in size and cost depending on the needs of the store display. Types of fixtures: Shelves Slat Wall Grid Panel Wire Shelves Gondolas Waterfalls Bins Nesting Tables Peg Stand Allegator Browser Essentials of the fixtures Floor fixtures are rearranged regularly to give fresh look to the merchandise. Updating the merchandise display with the current trend.

Learning Objective:

To understand the various fixtures used in the store and know about the utilization of the same. Customer Service Policy and Procedures Conceptual Understanding: Customer service (also known as Client Service) is the provision of service to customers before, during and after a purchase. Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation. Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Examples of self service are Internet sites. Customer service is normally an integral part of a companys customer value proposition. Key Elements of Customer Service Customer Interaction Exchange Policy Home Delivery Warranty/Guarantee Alteration Gift wrapping Learning Objective: To understand the policies and the framework within which entire customer service evolves around like exchange policy, warranty/guarantees, gift wrapping, home delivery etc.

4.9 OFFERS /DISCOUNTS ON MERCHANDISE IN COUPON MALL MENS YOUTH WEAR Brand Pepe Lee Cooper Provogue Flying Machine Numero Uno Spykar Regular Discounts 20-50% Flat 30% Flat 50% Flat 40% 25% to 30% 30% - 50% Special Offer Buy 1 get 1 Flat 30% Flat 50% Flat 40% 30% on Jeans & 40% on Tops 30% to 50% BUY 1

(Cargeo/Trouser Triad VOI Status Quo Dixi Ape Moustache Levis Signature Mtv Weekender Levis flat 30% Flat 40% flat 22% flat 22% Flat 25% flat 30% Flat 25% flat 30% flat 30% Flat 30%

GET 1) Flat 40% Flat 50% Flat 50% Flat 50% Flat 25% One Pc- Flat 40% & Buy 1 get 1 Buy 1 get 1 flat 30% flat 30% Flat 30%

WOMENS WEAR Brand Levis Pepe Regular Discounts Flat 30% 20-50% Special Offer Flat 30% Buy 1 Get 1

Lee Cooper Provogue Jealous 21 Urbana yoga Levis signature VOI Spykar Calli Collie Neat Femme Lee Cooper Femme Diva Youreka Dandy Coll Wills Ladies

Flat 30% Flat 50% Flat 25% Flat 25% Flat 25% Flat 40% 30%-50% Flat 40% Flat 40% Flat 40% 20-50% Flat 50% Flat 50% Flat 40% Flat 50% Flat 40%

Flat 30% Flat 50% Buy 1 Get 1 Buy 1 Get 1 Buy 1 Get 1 Flat 50% 40%-60% Flat 50% Flat 40% Flat 40% 20-60% Flat 50% Flat 50% Flat 50% Flat 50% Flat 50%

MENS FORMAL & CASUAL Brand Wills Ladies Scullers Levis Pepe Lee Cooper Provogue Jealous 21 Regular Discounts Flat 35% Flat 25% flat 30% 20-50% Flat 30% Flat 50% flat 25% Special Offer Flat 40% Buy 1 get 1 flat 30% Buy 1 get 1 Flat 30% Flat 50% Buy 1 get 1

Urbana Yoga Levis Signature VOI Spykar

flat 25% Flat 25% flat 40% 30% to 50%

Buy 1 get 1 Buy 1 get 1 flat 50% 30% to 50% (Cargeo/Trouser BUY 1 GET 1)

Neat Femme Diva bags Dandy Coll Youreka

Flat 40% flat 50% flat 50% Flat 40% Flat 40%

Flat 40% flat 50% flat 50% flat 50% flat 50%

SHOES / LUGGAGE / SPORTS WEAR Brand Polo World Adidas shoes Adidas Apparels Nike footwear Nike Apparels Rbk Shoes Rbk Apparels Lotto Homme Shoes Homme Accessories Maco M&B Regular discounts Flat 25% flat 30% flat 25% flat 30% flat 25% flat 30% flat 25% flat 30% Flat 40% Flat 10% flat 30% flat 30% Special Offer Flat 25% flat 30% flat 30% Flat 40% Flat 50% Flat 40% flat 30% Flat 40% Flat 50% flat 25% Flat 40% Flat 40%

Saville Row Levis Footwear Luciano /Max Walk Shoes N Brand

Flat 50% Flat 50% flat 30% Upto - 35%

Flat 50% Flat 50% Flat 40% Flat 40%

SHOP IN SHOP AND PRIVATE BRAND Sl .no. 1 2 3 4 5 6 7 8 9 10 Shop In Shop Zaveri pearls Kim krafts Aqua Pretty women Mystic Femina fashions Beauty concept Gr fragrances Mkp distributors Daily diamonds Private Brand Black coffee Br footwear Bity footwear Folklore Green channel High lander Kanz Mark taylor Vishudh

THEORITICAL FRAMEWORK OF THE STUDY

4.1 DEFINITION OF RETAILING:

According to Philip Kotler: Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use, A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing. A retailer may be defined, as a dealer or trader who sells goods in small quantities. Retailing may be understood as the final step in the distribution of merchandise, for consumption by the end consumers. Retailers attempt to satisfy consumer needs by having the right merchandise, at the right price, at the right place, when the consumer wants it. Retailers are the final business in a distribution channel that links manufacturers to consumers

Functions of a Retailer

Retailers provide important functions that increase the value of the products and services they sell to consumers and facilitate the distribution of those products and services for those who produce them. These functions are: 1) Providing an assortment of products and services Most consumers are well aware of the product assortments retailers offer.

2) Breaking Bulk To reduce transportation costs, manufacturers and wholesalers ship cases / cartons to retailers. This is called breaking bulk. It is cost effective for both manufacturers and consumers. 3) Holding inventory - A major function of retailers is to keep inventory that is already broken into user friendly sizes so that products will be available when consumers want them. 4) Providing services a) Retailers provide services that make it easier for customers to buy and use products.

b) They offer credit so consumers can have a product now and pay for it later.

c) They display products so consumers can see and test them before buying.

d) Some retailers have salespeople on hand to answer questions and provide additional information about products. 4.2 RETAIL STORE OPERATIONS The retail store is the place where customers take a decision on the purchase of the products offered by the retailer. The store also influences the perceptions that customers form in their minds about the store, the products, services and staff. From the managements point of view, operations of the store are a major element of the cost. As a consequence, the store itself becomes a critical asset of the retail business and it is imperative that the operations are managed well to achieve and sustain customer satisfaction and be cost effective. Managing store operations for a retail business of any size or complexity, from the neighborhood grocer to the national retail chain, is a challenging task. It requires integration among varies functions within the store. When all the functions are performed in an integrated manner, the store operations run smoothly. 4.3 KEY ROLES IN A STORE ENVIRONMENT The retail store is of prime importance to the retail organization, for two reasons. The first reason is that the retail store is the primary source of revenue for the retailer and the second reason is that

it is the point where the customer actually interacts with the retail store and its offerings. The primary responsibility within the environment of a retail store lies with the store manager. The store manager has to play a dual role in a retail environment. On the one hand, he is responsible for the varies members of the staff and team who report to him and enable the smooth functioning of the day to day operations of the store. On the other hand, he also has to ensure that the policies and the guidelines as laid down by the management are adhered to by the store and all the employees within the store.

A store manager is the person ultimately responsible for the day-to-day operations (or management) of a retail store. All employees working in the store report to the store manager. A store manager reports to a district or general manager. Responsibilities of a store manager may include: Human Resources, specifically: recruiting, hiring, training and development, performance management, payroll, and schedule workplace scheduling; Store business operations, including managing profit and loss, facility management, safety and security, loss prevention (also called shrinkage), and banking; Product management, including ordering, receiving, price changes, and handling damaged products and returning them. Team Development, to take responsibility for your own personal learning and development. Store manager is a great problem solver, challenges the status quo, encourages new ideas, and is positive, forward thinker, aware of goals and results. An individual who has exceptional conversational skills. As the main component of a retail store managers daily duties is to interact with customers and employees, it is very important that they know how to converse in such a manner which is courteous yet effective. Sales generation The store manager will be required to meet monthly, quarterly, or annual sales goals, depending on the company's fiscal cycle. This may be achieved by setting individual sales goals (quotas), holding contests for employees, or offering sales promotions. He or she may also receive a

monetary incentive (or "bonus") tied to the financial performance of the store over a specific time period. This incentive may be based on net sales, profitability, or both. Thus, the store manager may be forced to reduce payroll expenditures by decreasing employees' hours, or otherwise reducing costs associated with operating the business. Safety and security The General Manager will be required to post Material Safety Data Sheets for their employees for any chemicals used in their store.

The Store manager is the primary key holder of the store and may be called to the store before, during, or after business hours in the event of an emergency. He or she is also responsible for the safety of all customers and employees on store premises. Store managers may be required to hold safety meetings, especially as dictated by union practices in cases where store employees belong to a union. Division of responsibility A store manager may have several subordinates within the hierarchy of the store to whom he or she can delegate management-level responsibility. These employees are sometimes called assistant managers, supervisors, key holders, shift leads or leads. Hiring, training and development The store manager is responsible for the hiring, training, and in some cases, the development, of employees. The manager must ensure that adequate staffing levels exist in order to effectively operate the store, and ensure that employees receive the training necessary for employees to perform their job responsibilities independently. Managers are sometimes responsible for developing their employees so that the company can promote employees from within and develop future leaders, potentially for employment at other locations. Visual merchandising and inventory control In retail locations, store managers are responsible for visual merchandising. Many companies communicate how to merchandise their stores using direction such as Plano grams to indicate product placement. While managers have a varying degree of autonomy in deviating from corporate direction, it is important to ensure that stores are compliant with the company's brand

image. Managers must ensure that the proper amount of inventory is displayed for customers to purchase, by ensuring that shelves and racks remain stocked and that product is frequently rotated out of storage areas. Managers are also concerned with shrinkage, and must ensure that merchandising techniques and customer service skills minimize the possibility of product being stolen.

Budgeting and planning Ensure that the goals are met through appropriate planning and organization of staff, inventory and expenses, for short and long term success. Monitor a loss prevention program to protect the companys inventory and assets. Develop and monitor the capital expenses budget to ensure that the store is properly maintained and upgraded so as to meet the high maintenance standards that reflects the profitable image. Customer service Instill the employees, the meaning and importance of customer service as outlined in the retail philosophy. Promote and monitor the quality of service among the staff through training and by acting as positive role model. Be personally available to all the customers to communicate and identify their needs and to address their questions or concerns. Legal compliance Ensure that the store is in compliance with employment laws, including those regarding wage and hour, human rights and equal employment opportunities. Maintain safe working conditions for the employees and customers coming in the store, resolve any safety concerns quickly. Ensure store security from internal and external theft and get to know the proper apprehension and prosecution procedures for your state. 4.4 ELEMENTS/ COMPONENTS OF RETAIL OPERATIONS In order to ensure a smooth flow of operations at the store level, it is necessary that the management defines processes and has the people and the resources to implement them. The tasks to be performed and the processes are usually defined in a store operations manual. This document lists the tasks which need to be carried out at the store level; it states the responsibility

and the time period in which these tasks need to be performed. A wellprepared operations manual or blue print is the starting point of efficient store operations typically in a retail store, the following tasks need to be performed. 1. Store administration and management of the premises 2. Managing inventory and display 3. Managing receipts 4. Customer service 5. Managing promotions, events, alliances and partnerships.

A. Store administration and management of premises Management of premises Managing the operations of a retail store starts by determining how the tasks pertaining to the premises are to be performed. Firstly, the duration of the hours for business need to be determined. It is also necessary to specify with whom the responsibility of opening and closing the store lies with. Some considerations which need to be taken into account while determining the business hours are: the target audience for the store and the kind of products which are to be retailed. For example, a supermarket selling groceries will need to have early opening hours as compared to a lifestyle second factor which affects the working hours of a retail store, is the store location. A free standing store can operate at hours that it chooses to, while store which is a part of a shopping center or mall will need to follow the hours decided upon by the management of the mall. Security of the store premises and of the merchandise in the store is equally important. The size of the retail store and the level of operations determine the level of security required. A small independent retailer may not really need security for his premises, but a large department store may consider it necessary. Security of the premises is necessary in order to ensure that miscreants do not spoil the retail store. Security of merchandise is needed to ensure that pilferage of merchandise or shrinkage as it is commonly termed is minimal. Inventory shrinkage may arise due to theft by employees, customers or by error on the part of the store at the time of receiving merchandise. A large number of retailer across the world use specially designed tags, which are attached to products. These tags are sensed by the electronic devices specially designed to detect them and are usually placed at the store entrances and exits. If an attempt is made to take the product out of the store without removing these tags, an alarm goes off, thus alerting the store personnel. The

other device used for monitoring the movement of customers and staff is video cameras. Some retail store also provide separate entrances and exits for the store staff, so that they can be checked each time they leave and enter the store premises. Transaction per hour = number of transaction/ number of hours this help retailer to keep track of the number of transaction that they are carrying out in an hour. Hourly variation in sales activity could be important for setting store hours and for staff schedule, particularly for cashier. The information can be gathered with cash registers, which keep track of the time of the sales or by having periodically record the number of transaction at selected period of time. Sales per transaction = net sales / number of transactions This measure gives the rupee value of the average sales, net of return and allowances this is used to study sales trends over time, in combination with other measures, decide a high volume of sales is more important than a high rupee value on each sales. Hourly customer traffic = customer traffic in / number of hours A retailer use this measure to track total number of customer traffic per hour, day, week or season this can be applied to a entire store or to a single department to schedule hours and establish staff level. Unless there are automatic counting mechanisms, periodic surveys of customers traffic are required to arrive at a representative figure. Store administration Store administration deals with various aspects like the cleanliness of the store premises, maintenance of the store faade and the display windows etc. Administration is also being responsible for utilizing the store personnel effectively. Time keeping for the store staff is important. It is also necessary to keep track of holidays and the shifts that the staff may be required to work for. The premises of the store need to be maintained as per the standards decided upon by the management. This involves the task of cleaning the store and arranging the merchandise before the first customer can walk into the store. As important task of administration involves ensuring that all the required permissions and licenses to run a retail establishment are procured from the right authorities. It is also necessary that the health and safety norms as required by the law of the land are met with and satisfied. Stock In order to determine the strength of your stock holding you need answers to this question what is the average selling price (average selling price is calculated by dividing the total value sold during a day or a period by the total quantity sold during the same day or period) compared to the average price (average stock price is calculated dividing the value of the total merchandise in stock by the total quantity in stock). Its an ideal situation if both happen to be around the same value this measure help retailers find out if there store is over stocked or under stocked in any category or even in an SKU. Average selling price = total values of goods sold/ total quantity

sold Average stock price = total value of goods and stock / total quantity in stock Turning stock around efficiently yields better profits: the more times the retailers turn his stock the more his margins are. This can be found for any category or any SKU any time by checking the percentage sold from the stock of a specified category or SKU.

B. Managing inventory and display The task of allocating the merchandise to the various stores usually rests with the merchandise management team or the category manager as the case may be. As the store, the store staff manages this inventory. To enable them to work efficiently, the complete procedure for the handling of merchandise at the store level needs to be documented. Responsibility with respect to merchandise at the store level involve receiving and in warding the goods. Once the merchandise is received at the store, the quantity and other details like color, style and sizes have to be checked with the document accompanying the goods, to detect any discrepancies. In the case of most large retailers, using a hand held scanner, the merchandise is scanned and the system updated for the stocks received. Proper documentation also needs to be done when returning goods to the various locations as and when required. As the integral part of managing inventory at the store level is displaying it correctly. The best merchandise may lie unsold if it is not displayed in a manner that is appealing and convenient for the customer. For ex in a supermarket, if 15 ltr packs of vegetable oil are placed on the topmost shelf, it may be inconvenient for the customer to pick one up and carry, considering the fact that most of the customer at a supermarket would be women. In case the retailer is running any theme promotion or campaign, the products on offer need to be displayed correctly, and replenished once sold. Stock turnover/ inventory turnover rate = net sales / average retail value of inventory Expressed as number of times, this ration indicates how often the inventory is sold and replaced in a given period of time. Some retailers also use the ratio cost of goods sold divided by average value of inventory at cost. Both can be calculated for any time period. When either of these ratio declines there is a possibility that inventory is excessive. Percent inventory carrying cost = (inventory carrying cost / net sales) * 100 The importance of this measure has increased in recent years with the rise in inventory carrying cost due to high interest rates. This measure is also important to

reduce stock obsolescence and to prevent blockage of working capital. Retailers use this measure to track the percentage of their net sales represented by the fixed cost of maintaining inventory. Gross margin return on inventory = Gross margin / average value of inventory Express in rupee terms, the gross margin return on inventory (GMROI) compares the margin on sales on the original cost value of merchandise to yield a return on merchandise investment. Inventory can be valued at retail or at cost but for many retailers inventory valued at retail is more accessible that the value at cost. However, using inventory valued at retail may not give an accurate indication of investment cost. GMROI can be dramatically altered by changes in inventory turnover and gross margin. Space Space productivity is critical to successful retailing, hence it is imperative to have parameters that measure space productivity. The topofthemind dipstick measures are sales per square foot per day and margins per square foot per day. The performance of the store depends on the gross margin return on footage (GMROF). As retailing is all about operating within a given space, its productivity can be measures according to any of the various retail elements, be it employees, stocks, customers or even the stores facilities, besides sales. Occupancy cost per square foot selling space = occupancy cost/ square feet of selling space Expressed in rupees, this measure translates occupancy cost into rupee value per unit of selling space. It gives an estimate of the amount of the gross margin rupee each unit of space employed for retail selling must generate to cover occupancy costs. For a multiunit retailer it is a helpful measure for comparing the performance of units at different locations. It can be calculated for any time period, such as a year or a month. Sales per square foot = net sales/ square feet of selling space Stock per square foot = net stock/ square feet of selling space Expressed in quantity or value, this measure can be used to compare alternative uses of space involving different product lines, or to compare the performance of different departments or stores using a common standard. This ratio will vary according to the type of merchandise and merchandising methods used. Percentage of selling space = (selling space in square feet/ total space in square feet) * 100 Retailers use this measure to calculate the percentage of total space used for sales. This ratio varies according to the type of merchandise and merchandising methods. C. Managing receipts Managing receipts involves defining the manner in which the retailer is going to receive payment for the sales. The most common method for receiving payments for goods sold in India is by cash or by credit card. While most of the large retail stores would accept either of the above forms of

payment, a small local retail store may accept only cash payments. Other modes of receiving payment are by way of cheque or a debit card. Some stores also have a cobranded card, which can be used for payment. The use of credit cards in India is largely an urban phenomenon. Most large department stores have started accepting credit cards as a mode of payment. The credit card charges paid by the retailer depend on the volume of business transacted by the retailer and the rate negotiated on the basis of the future business transacted by the retailer. The procedure for accepting payment by way of credit cards and collecting payment from the bank needs to be clearly understood by the staff responsible for this function.

D. Customer service The customer service policy to be adopted by the retailer is decided upon the top management. This is actually put into practice by every person working within the retail store. Customer service does not have to begin and end at the customer service counter in the retail store. Each person on the floor of the retail store can ensure that the customer comes in contact with him or her is comfortable and has a pleasant shopping experience. This is something which has to be imbibed in them, and this has to be a top down approach. An important aspect which affects a customers perception of the retail store, its the experience that he has while billing the products purchased by him. While a customer may spend hours choosing the product that he likes, he does not like waiting for a long time at the time at the time of payment. Long queues may result in some disgruntled customers. Store operations need to be geared to handle such a situation. Many stores, in fact, train each member of the staff to handle the cash counter. Many supermarkets and other retailers have also introduced express check outs for customers who have bought a limited number of products. This ensures that a customer who needs to buy only one or two products does not have to wait in the same queue as a person buying a large number of items. Retailers in India need to be sensitive to the issue of efficiency of billing at times when the number of people buying from the store increases substantially. Specific days of the week may show a trend of increased billing. This may also happen during a discount sale, diwali, Durga puja, Christmas, New Year and other such occasions. customer traffic) * 100 Customer conversion ratio = (number of transactions / this percentage reflects the retailers ability to turn a potential customer

into a buyer. It is also known as the percentage yield rate or the walk to buy ratio. A low figure means that promotional activities are not being converted into sales, or that the overall sales efforts need to be accessed afresh. Unless automatic counting mechanisms are recording customer traffic, periodic surveys of customer traffic are required to arrive at a representative

figure. Information on transactions can be gathered from cash register tapes which keep track of the time of the sale, or by having staff records the number of transactions for selected of time. Employees Employee productivity is usually measured in terms of sales. Measurement parameters include total sales per day per salesperson. Total number of cash memos/customers handled by a salesperson in the case of free access retailing (the criteria applied for overthe counter retailing is different). It is again the gross margin return on labour employed (GMROL) that matters. Net sales per full time employee = net sales/ total fulltime employees Express either in quantity or rupee value terms, this measure represents the average sales generated by each fulltime employee. It is used to set performance targets for sales personnel. Space covered/ customers served per fulltime employee = total retailing space/number of customers served/ total fulltime employees Expressed in square feet, this measurement Labour represents the space covered/ number of customers served by each fulltime employee. This is extensively used by large freeaccess format retailers like department stores. productivity = (total labour costs / net sales) * 100 applied solely to sales employees. fulltime employees this percentage measure labour productivity

by tracking the labour costs incurred to achieve a given sales volume. This measure can also be Gross margin per fulltime employee = gross margin/ total Expressed in rupee value, this ratio indicates the gross profit generated per

employee, and can be used to gauge a sales employees performance. Though this shouldnt be the only measure of an employees performance, it can provide a starting point for closer examination. This measure can be adapted to apply to all employees or solely to buyers. Suppliers/quantity or value purchased per buyer = total suppliers/ quantity or value purchased/ total buyers This measure gives an average of the number of suppliers or the quantity or rupee value for each buyer in a store. There is no ideal number, but by comparing the workload of individual buyers through this measure, management can see how well the buying load is being distributed among purchasing staff. Research indicates that an average buyers ability to make appropriate decisions about buying declines as the number of suppliers increase. This measure should be looked at in conjunction with the number of SKUs the average buyer handles, as well as with the replenishment cycles involved. E. Managing promotions, events, and partnerships Events and promotions are very much part of retail marketing scene. In order to enable the success of an event or a promotion, it is necessary that the store where the action is to take place be geared for the same. This may require hiring of additional staff, working existing staff in shifts and running short training programme on the features of the promotion, the hours and the

speciality of the merchandise.

The complexity of managing a retail store also depends on the

type of retail store and the products retailed. While the merchandise sold in a department store or a high fashion boutique changes from season to season, the expertise require for the operations of the supermarket is very different. And integral part of managing a supermarket comprises of understanding the temperatures at which meat needs to be frozen, stored and displayed. The requirements of a bakery and dairy products are again different and need to be understood.

4.5 MALL MANAGEMENT A GROWING PHENOMENON IN INDIAN RETAIL INDUSTRY Introduction The Indian retail market is expected to continue its growth trajectory into 2010.Mall management has been identified as critical factor for the success of malls and the retail industry across the world. Mall management broadly includes mall positioning, zoning, tenant mix, promotions/marketing and facility/finance management. Currently, the Indian retail market lacks Designated mall management firms. Large real estate developers and retail chains either have their own mall management arms operating as subsidiaries or have contractual agreements with International property consultants. Till recently, mall management was limited to facility management by a majority of developers in India, leading to gaps in mall management practices. Given the high future supply of malls and increasing competitiveness within the Indian retail market, developers must correctly address these gaps to ensure success. Organized retailing in India witnessed a gross turnover of USD 320 billion in 2006. Although This figure is low compared with other developed economies; industry experts expect the growth rate of this sector at 35%2 until 2010. At present, about100 malls are operational at a Pan-India level with a total area of 19 million sq ft. As per the current estimates, about 3003 additional malls are expected to be constructed across the country by 2010.According to the Jones Lang LaSalle Retailer Sentiment Survey 2006, 95% of the respondents expect their gross turnover to improve and have plans for expansion in 2007. About 70% of those who have expansion plans said they prefer malls over high streets for their expansion, indicating the rising demand for malls as the preferred destination of organized retail in India. Moreover, about 65% of those who preferred malls over high streets also said that mall management is expected to become the

deciding factor for a malls success in the future. However, a sense of concern was expressed over the following challenges to the Indian retail market: lack of quality locations shortage of trained staff rising rental values mall management the first three concerns can be classified as external factors, whereas mall management is internal. External factors are common to all players in the Indian retail industry, whereas mall management is specific to individual malls. We anticipate that the success of Indian malls will not only be achieved by housing the biggest and the best mix of retailers, but also by setting up new standards and procedures n mall management that will provide a platform to differentiate its products and services from competitors. In the current market scenario, both consumers and retailers have limited choice in terms of mall shopping experience .As organized retail grows, we expect the market to be more competitive by providing more choices to consumers and retailers. At this point, developers will have to work harder to create a differentiation for their product. We believe consumers and retailers will be attracted to malls that are professionally managed, making effective mall management a critical factor behind the success of a mall. This white paper focuses on the internal factor: effective mall management as a growing phenomenon in the Indian retail industry today. The prime objective of landlords as well as of investors is to attract shoppers and persuade them to purchase goods and services. This will in turn boost retailers turnover and benefits their bottom line. Efficient mall management can help landlords achieve this goal. Mall Management Globally, mall management broadly includes: Positioning a mall Zoning formulating the right tenant mix and its Placement in a mall Promotions and marketing Facility management infrastructure, traffic and Ambience management Finance management Positioning a Mall Positioning a mall refers to defining the category of services offered based on demographics,

Psychographics, income levels, competition neighboring areas and extensive market research of the catchments. For example, if the market research indicates that the average number of households living in a particular area belongs to the upper middleclass, then a high-end retail mall would suit the location. An example of this practice can be seen in the upcoming malls, Select City Walk in Saket and DLFs Emporio in Vasant Kunj. We believe that these retail developments are prime examples of good mall positioning. These malls have been specifically designed after an extensive market research, based on the catchments area of South Delhi. The malls provide High-end luxury products catering to the elite class (socio-economic classification A and B consumers) residing in South Delhi. Positioning also refers to the location of the shopping Mall. A good location defined in terms of factors like ease of access via roads, good visibility, and etc. is considered as one of the prime prerequisites for a mall. Although other activities such as trade/tenant mix can be revisited or redefined, the location remains fixed, making it an imperative factor for a mall. Zoning Formulating the Right Tenant Mix and Its Placement in a Mall Tenant mix refers to the combination of retail shops occupying space in a mall. A right tenant mix would form an assemblage that produces optimum sales rents, service to the community and financiability of the shopping mall venture. Zoning refers to the division of mall space into Zones for the placement of various retailers. A mall is dependent on the success of its tenants, which translates to the financial feasibility of the tenant in the mall. Generally, there are two types of consumers visiting malls focused and impulse buyers. The time spent by focused buyers in malls is relatively lower compared with impulse buyers who also enjoy window shopping. There is little that retailers can do to attract focused buyers as they usually know what they require and from where. However, right tenant mix and optimum retailer placement after a diligent Zoning exercise can help retailers attract both types of consumers, especially the impulse buyers. Formulating the right tenant mix based on zoning not only helps attract and retain shoppers by offering them multiple choices and satisfying multiple needs, but also facilitates the smooth movement of shoppers within the mall, avoiding clusters and bottlenecks. This helps influence shoppers mall preference and frequency of visits. It also helps in building a distinct Image in the minds of shoppers, which is critical considering the robust upcoming supply of malls.

The selection of the right anchor tenant plays a crucial role in establishing a good tenant mix. The Anchor tenant is defined as the largest occupier in a mall in terms of square feet. Vanilla retailers5 cluster round the anchor and feed off the shopping traffic it generates. The successful execution of the zoning exercise for a mall is carried forward through lease management on an ongoing basis. Forging good leases with retailers is an essential part of ensuring the presence of the right retailers in a mall. The Forum Mall in Koramangalam, Bangalore is an example of a successful mall led by good zoning and tenant-mix mall management practices. Promotions and Marketing Promotional activities and events in a mall form an integral part of mall management. Activities like food festivals, handicraft exhibitions and celebrity visits increase foot traffic and in turn a sales volumes.Organising cultural event has time and again proved vital in attracting consumers to a mall. Such activities may also act as a differentiator for a mall. Developers can work on drafting marketing strategies for individual malls to meet the needs of the local consumer base and the challenges of local, and in some cases, regional competitors. Ansal Plaza, the first mall in Delhi, is an example of a successful mall led by good promotions and marketing mall management practices. Facility Management Facility management refers to the integration of people, place, process and technology in a building. It also means optimal utilisation of resources to meet organizational needs. It broadly includes infrastructure, ambience and traffic management. Infrastructure Management Infrastructure management refers to the management of facilities provided to the tenants within the mall. This includes provision of adequate power supply, safety issues in case of emergency and miscellaneous issues related to signage, water supply, sanitation, etc. as shown in Figure 1. These form an integral part of mall management as they are the basic amenities that any tenant would look for in a mall. Infrastructure management also includes risk management issues such as essential safety measure asset liability and environmental audits as well as emergency and evacuation training. Ambience Management

The overall shopping experience provided for consumers becomes an important factor for the success of any mall. Ambience management includes management of parks, fountains and overall look of the mall. A mall is not just a place for shopping but is also a place where people spend their leisure time. Unfavorable, lush green landscaping with seating facilities and the presence of food and beverage inside or outside the mall can increase foot traffic.

Traffic Management Traffic management includes managing foot traffic into the mall and parking facilities. Foot traffic management involves crowd management inside the operational area of a mall. The flow of people is related to the design of the mall and the spatial distribution of its tenants. For example, a star-shaped mall tends to have a problem of crowding in the centre of the mall, as everyone has to pass through the centre while moving from one side to the other. Circular malls, on the other hand, would not have this problem. They tend to have better pedestrian flow and less congestion. Managing parking facilities includes provision of ample parking and maneuvering of cars in the parking lot. Inorbit Mall in Malad, Mumbai is an example of a successful mall led by good facility management practices. Finance Management Professional financial management of a mall as a business venture is a must. Mall management also covers financial management, which involves monitoring and controlling of various issues Such as: cash receipts and collection of income including rentals, service charges, car park receipts, electricity and other utility income developing accounting systems to track the ageing of debts, payment delay patterns, bad debts and payment of all invoices and expenses developing standard financial templates so that a detailed annual property budget is prepared at times, organizing resources to deliver inefficient and effective annual external audit. 4.6 INDIAN SCENARIOS FOR MALL MANAGEMENT The partial foreign direct investment (FDI) relaxation in 2006 allowed 51% ownership in joint Ventures by single-brand companies in the retail market. This triggered high international single brand retailer interest in the Indian retail market. Additionally, large Indian conglomerates such

as Reliance Industries and Aditya Birla Group are commencing their foray into retailing across the country. This prompts the Indian retail industry to undoubtedly move on a high growth curve. However, at this juncture, retailing is still faced with one major challenge: systematic mall management. Currently, there are very few designated mall management companies in India. However, big retail chains such as Future Group and some large developers have set up their own mall management divisions that operate as their subsidiary companies. Some developers such as DLF have also recently entered into contractual arrangements within recreational property consultancy firms to manage their malls. Historically, developers were managing their malls inhouse, which are expected to change going forward. Earlier in the decade, mall developers were more inclined towards exiting the project early by selling retail mall units to investors at the precompletion and post-completion stages and booked profits. As the ownership of individual retail spaces were with different entities, there was no central authority managing the malls. There was no control over the various facets of mall management mentioned earlier in the paper. Even though there have been some examples of professionally managed malls in recent years, organized retail in Indian malls have a long way to go to achieve optimum mall management. The current Indian scenario is plagued by various issues, some of which are discussed below. 4.7 ISSUES RELATED TO MALL MANAGEMENT IN THE INDIAN RETAIL MARKET Lack of Feasibility/Market Research Prior to the Development of a Mall In the past, some malls were constructed without carrying out a rigorous due diligence exercise on their feasibility. The market scene is gradually changing wherein more and more developers are approaching property consultancy firms to conduct feasibility and positioning studies for their projects. Zoning Landlords/developers tend to lease out retail space on a first-come-first-served basis. This creates a sub-optimal tenant mix like a food and beverage outlet next to a designer apparel shop instead of an accessories or a footwear shop. Design Issues At present, most of the popular malls have long queues and congestion outside Their main entry points during weekends and festive seasons. Having only one entry and exit Points also lead to overcrowding. Similarly, the visibility of retail units from all vantage points is Poor in many malls. Few Promotional Activities There are very few promotional activities organized in the majority of malls at present. Developers perceive that these events only help increase foot traffic and notre venues.

Facility Management Good infrastructure/facility management of common areas becomes a problem in malls where retail outlets are sold as strata title. Parking Many malls in India do not have adequate parking. Since most malls are being built in the city, developers typically provide basement parking facilities. However, these parking spaces are inefficient due to low ceiling heights, bad lighting and single entry and exit points.

4.8 WAREHOUSE MANAGEMENT SYSTEM A warehouse management system, or WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize stock put away based on real-time information about the status of bin utilization. Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility. Warehouse management systems can be stand alone systems or modules of an ERP system or supply chain execution suite. The primary purpose of a WMS is to control the movement and storage of materials within a warehouse you might even describe it as the legs at the end-of-the line which automates the store, traffic and shipping management.

In its simplest form, the WMS can data track products during the production process and act as an interpreter and message buffer between existing ERP and WMS systems. Warehouse Management is not just managing within the boundaries of a warehouse today; it is much wider and goes beyond the physical boundaries. Inventory management, inventory planning, cost management, IT applications & communication technology to be used are all related to warehouse management. The container storage, loading and unloading are also covered by warehouse management today. Warehouse management today is part of SCM and demand management. Even production management is to a great extent dependent on warehouse management. Efficient warehouse managements give a cutting edge to a retail chain distribution company. Warehouse management does not just start with receipt of material but it actually starts with actual initial planning when container design is made for a product. Warehouse design is also part of warehouse management. Warehouse management is part of Logistics and SCM. Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional warehouses services by the central warehouses and retail warehouses at the third level services by the regional warehouses and so on. The objective of warehousing management is to help in optimal cost of timely order fulfillment by managing the resources economically. Warehouse management = "Management of storage of products and services rendered on the products within the four wall of a warehouse"

CONCLUSION
Praeek life style is set to reach new height in the coming years. The kind of reputation image and distribution network it has set will be perhaps the best strength for the time to come. The professional company committed to creating enduring value for the share holders and for the nation. It has a rich organization culture rooted in its core values of respect for the people and belief in empowerment. Strong corporate governance policy and system back its philosophy of all round value creation. The weakness through present by nature in any organization eventually should be rectified as they with the progress of time can turn to advantage of competitors. My experience at Coupon Mall has been enthralling one. It was the best project training could have received. The company could take corrective steps in store operation, should take keen interest in pricing policy and adopt new technique for sales promotion. The advertisement is discrete weapon to target the potential customers. These suggestions have been in to consideration by the company, and necessary action for implementation is in progress. Service the regular availability of all brands can help in increasing brand image as well as market share. For improving turn over modify the add strategies are relevant to modernization.

From the study it is evident that Coupon Mall has been performing well. They also used good strategy to improve the awareness in the city where upper middle class and middle class customers are living.

FINDING

Lack of skilled sales executive. They did not have sufficient sales executive. There was no proper Communication all over the floor. Above the browsers, on

the walls.
Brand name was not mentioned in the signage above the browser. There was a size discrepancy in all major brands Replenishment was happening very slowly. There was no a focal point at the entrance. According to the customers perception, the size and range of apparels are not

very rich.
The visual image of Coupon Mall is not up to the customers expectation. Customers not happy with the merchandise offered but are very much satisfied

with the discounts on offer.


Customers are looking for specific merchandise such as caps, wind cheaters;

jackets etc but are not able to find the required merchandise.

Stocks sometime are old which creates dissatisfaction in customers mind.

RECOMMENDATIONS

Building Confidence:
1. Help new employees to achieve an immediate success. Nothing is more frustrating to a new associate learning their position than not knowing what to do next. By providing specific written direction, a trainer / supervisor can remove ambiguity and give the associate confidence that theyre doing what is expected. 2. Show new employees by example. Providing an associate with a visual example and then observing them as they practice the task helps eliminate bad habits before they begin. Additionally, when the associate knows that they are doing something correctly and in a way that creates positive results, uncertainty disappears and confidence replaces it. According to the customers perception, the size and range of apparels are not very rich. So the management should change the merchandize time to time.

Consumers look for varied range of product with different size and colors. Thus the
company must make improvement in its model, design and outlook from time to time.

The company needs to realize the power of display point of purchase; display can have
tremendous impact of sales. Various attractive posters of the product can be displayed at the outlets.

The visual image of Coupon Mall is not up to the customers expectation. It has to be
improved in order to enhance the brand image. The Sales executives need to be more aggressive and persuasive. Executives are not motivated enough. Employees are needed to be encouraged by providing incentives, commissions etc. Customers not happy with the merchandise offered but are very much satisfied with the discounts on offer. The store should provide varied range of merchandise in different designs, colours and sizes. Most of the customers complain about the non existence of the brand Levis in the store.

Proper training should be given to the sales person about the salesmanship and should be encouraged to do aggressive selling. Monthly training programs for the staff to improve the soft skills like effective communication to identify the customer needs and provide good service to them. Watches collection need to be reformed completely this section is giving very poor performance. Good brands of watches should be introduced. Stocks sometime are old which creates dissatisfaction in customers mind. The replenishment of old and non moving stock should be done periodically. Manager has to take briefing sessions for staff to improve rack displaying and theme-setting-display.

BIBLIOGRAPHY
TEXT BOOKS: 1. Retail Management by Suja Nair 2. Marketing Management (Twelfth Edition) by Phillip Kotler & Kevin Lane Keller 3. Marketing Research (Fifth Edition) by Naresh K. Malhotra 4. Retail Management by Supna Pardhan

WEB SITES: 1. www.prateeklifestyle.com 2. www.google.com 3. www.economictimes.indiatimes.com 4. www.indiaratail.com

JOURNALS:1. Business Today

2. Pitch 3. Brand Reporter

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