General Introduction

CONTENTS

Part – A

1] Industry profile 2

2] Company profile 8

a] Background and Inception 9

b] Nature of Business Carried 9

c] Vision mission and values 10

d] Products Profile

Service Profile

11

e] Area of operation 12

f] Ownership Pattern 13

g] Competitors information 14

h] Infrastructure Facility 15

i] Achievements or Awards 16

j] Work flow model 16

k] Future growth and prospects 17

3] McKINSEY’S 7s Framework 27

4] SWOT Analysis

5] Analysis of financial statements 31

6] Learning experience 32

Cambridge Institute of Technology, Bangalore 1

Part—B

A] General introduction 34

Statement of Problem 35

Objectives of the study 35

Scope of the study 35

Methodology

Limitations 36

B] Analysis of data and charts 40

C] Summary of findings 42

D] Observation and Suggestion 65

E] Conclusion and Recommendations 66

F] Annexure 62

G] Biblography 68


GENERAL INTRODUCTION

Retailing consists of the sale of goods or merchandise from a very fixed location, such as

a department store, boutique or kiosk, or by mail, in small or individual lots for

direct consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys

goods or products in large quantities from manufacturers or importers, either directly or

through a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the end of the supply chain.

Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses or in

a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping

street has a partial or full roof to protect customers from precipitation. Online retailing, a

type of electronic commerce used for business-to-consumer (B2C) transactions and mail

order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain

necessities such as food and clothing; sometimes it is done as a recreational activity.

Recreational shopping often involves window shopping (just looking, not buying) and

browsing and does not always result in a purchase.


1. INDUSTRY PROFILE

THE RETAIL MARKET

Retail is the last step in the process of getting products to customers efficiently and should

not be confused with the wholesale activities which precede it.

Any business that sells goods to individual consumers is a retail establishment. There are

many kinds of retail establishments:

1. Departmental stores – offers a variety of merchandise

2. Discount stores – mass merchandiser

3. Category killers/ MBO’s – specialize in one type of merchandise

4. E-tailers – sell goods online

5. Specialty stores – concentrate on one product type and sell it in a way that makes it

unique.

6. Modern format individual retailers

7. Shopping malls

8. High street shops

9. Franchisee outlets

INDUSTRY BACKGROUND

Retail industry in the world

The retail industry has changed greatly in the last two decades. It used to comprise of a

wealth of small, often family operated shops, department stores and shopping malls. Today,

however, it is increasingly common to see people doing their shopping in large mass

merchandise stores, specialty stores and online.

Retail is the second largest industry in the United States both in number of establishments

and number of employees. The US 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 US and more than 400 thousand

internationally.

The second largest retailer in the world is France’s Carrefour. Retail trade accounts for

about 12.4 per cent of all business establishments in the US. Single-store businesses

account for over 95 per cent of all US retailers, but generate less than 50 per cent of all

retail store sales. Gross margin typically runs between 31 and 33 per cent of sales for the

industry but varies widely by segment.

Retail is ahead even of finance and engineering, contributing over 8 per cent to the GDP in

the west. Over 50 of the fortune 500 and about 25 of the Asian top 200 companies are

retailers. Thailand and Indonesia, which were afflicted by the currency turmoil, pepped up

the deregulatory measures to attract more FDI in retail business. Japan, under a prolonged

recession and protracted downfall in the domestic investment abolished its large scale

production.

The retail industry accounts for about 11.6 per cent of US employment. Annual retail

employment averaged 15.3 million people in 2005. Retail unemployment was 5.4 per cent

compared to 5.1 per cent overall. Employment of non supervisory workers in retail

averaged 13.0 million in 2005. Non supervisory employees averaged 30.6 hours a week

during 2005 with the average hourly earnings of $12.36. Ten year employment projections

expect retail to increase 11.0 per cent, versus 14.8 per cent overall.

Retail industry in India

In India, the retail sector is the second largest employer after agriculture. The retail sector

in India is highly fragmented and consists predominantly of small independent and owner

managed shops. There are around 12 million retail outlets in India. Besides, the country is


also dotted with low-cost kiosks and pushcarts. In 2001, organized retail trade in India was

worth Rs.11, 228 billion. There has been a boom in the retail trade in India owing to a

gradual increase in the disposable income of the middle class households. More and more

players are venturing into retail business in India to introduce new attractive retail formats

like malls, supermarkets, discount store and department stores.

Retailing in India is up for transition. It has broken the safe and claustrophobic space of an

egg shell and rearing to grow into a giant that will match the retailing practices of the west.

GROWTH AND DEVELOPMENT OF INDUSTRY

Growth of retail companies in India exhibits the boom in the retail industry in India over

the years the increase in the purchasing power of the Indian middle class and the influx of

the foreign investments have been encouraging in the growth of retail companies in India.

It is more pronounced in the metro cities of India. The south Indian zone have adopted the

process of shopping in supermarkets for their daily requirements and this has also been

influencing other cities as well where many hypermarkets are coming up day to day.

The growth of the retail companies is facilitated by the following factors:

1. Existing Indian middle class with an increased purchasing power.

2. Rise of upcoming business sectors like IT

3. Change in the taste and attitude

4. Effect of globalization

5. Heavy influx of FDI in the retail sector

Retail industry in India is expected to rise 25 per cent yearly being driven by strong income

growth, changing lifestyles and favorable demographic patterns. 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. Indian retailers preferred means of expansion is to expand to other

regions and to increase the number of their outlets in a city. It is expected that by the end of

2010 India may have 600 new shopping centers.


The Indian retailing sector is at an inflexion point where the growth of organized retailing

and growth in the consumption by the Indian population is going to take a higher growth

trajectory. The Indian population is witnessing a significant change in its demographics. A

large young working population with median age 24 years, nuclear families in urban areas,

along with increasing working-women population and emerging opportunities in the

services sector are going to be the key growth drivers of the organized retail sector in India.

Graph No. 1

Source: www.indianground.com/retail

India has been rated the most attractive retail destination globally by a survey of global

retailers carried out by AT Kearney. The retail industry was pegged at USD 226 billion in

2005, of this organized retail accounted for just 3.4 per cent for the overall retail pie. This

is estimated to reach 10-12 per cent by the end of 2010.

Graph No. 2

Source: www.spjimr.org/event_khoj2008


PRESENT STATUS OF THE RETAIL INDUSTRY

Indian retail industry is the largest industry in India after agriculture with an employment

of 8 per cent and contributing 10 per cent to the country’s GDP. It is expected to contribute

22 per cent by the end of 2010. Food is the most dominating sector and is growing at a rate

of 9 per cent annually. At present 60 per cent of the Indian grocery basket consists of non-

branded items.

The present value of the Indian retail market is estimated by the retail report to be around

1,200 thousand crore and the annual growth 5.7 per cent , a 15 million retail outlet help

India win the crown of having the highest retail outlet density in the world.

LEADING PLAYERS

Among retail establishments the obvious leader is Wal-Mart. Due to its large size it is

capable of economies of scale surpassing those of other companies with the clout in the

bargaining room to match. The closest behind Wal-Mart in terms of sales is The Home

Depot though their sales were only 25 per cent of those of Wal-Mart. The Kroger co. and

Target Corporation fall just behind The Home Depot. However despite Wal-Mart’s

impressive sales, the profit margin for that genre of mass merchandiser is under 6 per cent.

In the luxury store where the goal is not to have the lowest price profit margins can exceed

25 per cent.

In the Indian scenario the leading players in retail are:

1. Future Group (Pantaloons, Big Bazaar, Central)

2. Shoppers Stop (Mother Care, Home Stop)

3. Bata India Ltd

4. RPG Retail (Food world, Music world)

5. Reliance Group (Trends, Jewels, Footprints)

6. Westside (Trent)

7. Landmark Group (Lifestyle, Spar, Max, Splash)


8. Wills Lifestyle

9. Globus

10. Piramals (Pyramids and Crosswords)

11. Ebony Retail Holdings Ltd.

ROLE OF MNC IN THE RETAIL SECTOR

Wal-Mart Stores Inc, the world’s largest retailer, which operates a retail JV with India’s

telecom behemoth Bharti Enterprises (Bharti Wal-Mart Retail Limited), is satisfied with its

results and is looking at expanding the footprint of its cash and carry stores in India.

“Wal-Mart is very satisfied with the results in India. Wal-Mart CEO says that they are

looking at opening more stores. He gave a figure of 40 more stores across the country in

the immediate future.”

International retailers are fast expanding their business in India to tap the immense

consumer base. Reebok has set up its largest store in the world in Hyderabad. Tommy

Hilfiger and Levis have over 20 thousand square feet of retail space and stand alone stores

across major metros. Fast food giants McDonalds, Pizza Hut, Subway, etc are expanding at

a fast pace with their expansion into the Tier II and Tier III cities.

The entry route for the MNCs is:

1. Strategic licensing agreements

2. Cash & Carry wholesale retailing (Metro, Shoprite, Wal-Mart)

3. Distribution (MANGO, BOSS, Swarovski)

4. Franchising (Pizza Hut, Dominos, Subway, Marks & Spencer)

5. Manufacturing (Bata, UNITED COLORS OF BENETTON)

6. Joint ventures

The entry of MNC in the retail sector has both the positive and negative aspects. The

positive are like the open economy, increased employment, and higher standard of living as

people are earning more and more, new products in Indian market focus on customer care,

poverty reduction, etc. the negative are the local market getting badly affected because of


MNCs entry, growing inequality across and within nations, environmental deterioration,

etc.

FUTURE GROWTH & PROSPECT OF THE INDUSTRY

The scope of the Indian retail market is immense for this sector is poised for the highest

growth in the next five years. The Indian retail industry contributes 10 per cent of the

country’s GDP and its current growth rate is 8.5 per cent. India’s overall retail sector is

expected to rise to US$ 833 billion by the year 2013 and to US$ 1.3 trillion by the year

2018 at a compound annual growth rate (CAGR) of 10 per cent. There is a tremendous

scope for the growth in the Indian retail market.

Reliance Industries Limited is planning to invest US$6 billion in the organized retail sector

in India. Bharti Telecoms is planning a joint venture worth 750 million Euros with Tesco a

global retail giant. Pantaloons are planning to invest US$1 billion in order to increase its

retail space. Such huge investment is also a factor in the growth of the organized retail

sector in India.

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.

2. COMPANY PROFILE

Company profile will assist individual investors, managers and companies in evaluating,

trends, market innovations, and selecting appropriate information solutions in order to

make effective decisions.

It elaborates on the company’s business structure and operations, products and services.

The report include strategic analysis that intends to aid investors to find better prospects

with the company and gain an insight into the corporate policies.


2.1 ORIGIN OF SHOPPERS STOP

The foundation of Shoppers Stop was laid on October 27, 1991 by the K.Raheja Corp.

Group of companies with its flagship store in Andheri, Mumbai. Being amongst India’s

biggest hospitality & real estate players, the group crossed yet another milestone with its

lifestyle venture Shoppers Stop. The initiative of this store was taken by B.S.Nagesh, Vice

Chairman of Shoppers Stop at a time when the concept of retail industry was just coming

into the market. As on today the current investors are ICICI, IL&FS Investments and

Zodiac clothing. Their combined share holding in shoppers stop is 19 per cent while 79 per

cent is held by Raheja group and balance 2 per cent is held by its employees.

From its inception, Shoppers Stop has progressed from being a single brand shop to

becoming a fashion & lifestyle store for the family. Today Shoppers Stop is a household

name, known for its superior quality products, services and above all for providing a

complete shopping experience.

Shoppers Stop was the first to redefine shopping experience and creating a niche for itself

in the service industry, as India’s first specialty chain with outlets in Mumbai, Bangalore,

Delhi, Jaipur, Chennai and Hyderabad. Shoppers Stop offers a complete range of garments

and accessories for the entire family. More than 25 thousand customers walk into Shoppers

Stop everyday to feel the experience of shopping.

With an immense amount of expertise and credibility Shoppers Stop has become the

highest benchmark for the Indian retail industry. In fact, the company’s continuing

expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an

even better manner than it does today.

2.2 NATURE OF BUSINESS CARRIED


Shoppers Stop operates under the departmental store format and is of the pioneers of the

large format stores in India. Shoppers Stop has created a new business unit to manage its

specialty businesses like Crossword, Mothercare, F&B business and MAC.

It has 27 flagship stores. Apparel contributes around 60 per cent of the sales, while home,

accessories, leather, watches, jewelry and others forming the non-apparels segment.

Shoppers Stop has a private label program that contributes to 19-20 per cent of the sales.

The private labels consist of four sections menswear, women’s wear as well as the kids

wear and the non- apparels.

Diagram no. 1

SOURCE: COMPANY DATA

2.3 VISION, MISSION & QUALITY POLICY OF SHOPPERS STOP

VISION

“To be a global retailer in India and maintain its No.1 position in the Indian market in the

department store category”.


MISSION

“NOTHING BUT THE BEST”

“To strive and achieve nothing but the best in terms of processes, practices and

deliverables”.

2.4 PRODUCTS OF THE COMPANY

Apparels

Wills, Van Heusen, Pepe Jeans, AND, Provogue, BIBA, Ishvarah, Louis Phileppe, Zodiac,

Allen Solly, Black Berry, Park Avenue, Levis, Colour Plus, Gini Jony, Barbie.

Footwear

Red Tape, INC.5, Catwalk, Lemon, Tresmond, ID, Woodland, Provogue, Franco Leone,

Lee Cooper.

Sunglasses

Polaroid, Ray Ban, Police, Fast Track, Push & Shove, Provogue, Tommy Hilfiger, Gucci,

Esprit.

Cosmetics

Clarins, Dior, Lakme, Maybellin, Elizabeth Arden, Revlon, Loreal, Chambor.

Jewelry

Carbon, Asmi, Ddamas, Gili, Viola, Cygnus.

Watches

Esprit, Tissot, Pierre Cardin, Titan, Tommy Hilfiger, Giordano, Kenneth Cole.

2.5 AREA OF OPERATION


Shoppers Stop is a NATIONAL company spread over the major cities of India. It

currently has 27 stores across India and plans to add 23 more stores within a period of 2-3

years. Through its online shopping it delivers to around 150 cities all over.

2.6 OWNERSHIP PATTERN


Raheja Group- 79%

ICICI, IL&FS investments and zodiac clothing- 19%

Promoters 61.06%

FIIs/ NRIs/ OCBs/ GDR 6.82%

MFs/ Banks/ FIs 13.65%

Non promoter corporate 5.03%

Public and others 7.44%

Employees- 2%

BUSINESS PARTNERS

The organization in 2000 along with ICICI ventures acquired the reputed bookstore,

“Crossword” at 51 per cent stake which later increased to 100 per cent in 2005 which offers

the widest range of books along with CD-ROM, music, stationary and toys. Services like

Dial-a-book, Fax-a-book and Email-a-book enable customers to shop from their homes.

Crossword currently has 18 stores.

SSL (Shoppers Stop Ltd.) also ventured into various categories like cosmetics MAC,

Mother and infant care through Mother Care, home care through Home Stop, gaming and

entertainment through Timezone, airport retailing through Nuance Group with 50:50 joint

venture. SSL also has a 19 per cent stake in the hyper mart format of Hypercity and has

plans to increase to 51 per cent by the end of June 2010.

The sister stores are:

1. Crosswords

2. Home Stop

3. Hypercity

4. MAC

5. Arcelia

6. Mother Care

7. Nuance Group


8. Hyper-city Argos

9. Time zone

2.7 COMPETITORS INFORMATION

In the Indian scenario the leading players in retail are:

12. Future Group (Pantaloons, Big Bazaar, Central)

13. Shoppers Stop (Mother Care, Home Stop)

14. Bata India Ltd

15. RPG Retail (Food world, Music world)

16. Reliance Group (Trends, Jewels, Footprints)

17. Westside (Trent)

18. Landmark Group (Lifestyle, Spar, Max, Splash)

19. Wills Lifestyle

20. Globus

21. Piramals (Pyramids and Crosswords)

22. Ebony Retail Holdings Ltd.

2.8 INFRASTRUCTURAL FACILITIES

*Shoppers Stop being a world class retail store has the best facilities in their store.

*The stores have huge floor space for convenient shopping.

*Brightly lit for the convenience of the customers.

*Powerful visual merchandising.

*In-house café for customers.

*Well organized billing counters.

*There are sufficient trial rooms for men, women as well as kids.

*The store has a play area for the kids.

*Cleaner restrooms and mama’s room for the customers.


*There are canteens and restrooms separately built for the employees.

*A huge parking area for both the customers as well as the employees.

*Baggage counters for placing the luggage of the customers.

2.9 ACHIEVEMENTS & AWARDS

1. “The Emerging market retailer of the year award” by World Retail Congress at

Barcelona on April 10, 2008.

2. “Best Visual Merchandising” VMRD Retail Design Award on July 2009.

3. Most admired fashion retailer of the year 2008 by CMAI

4. Images retail award 2007.

5. Shoppers Stop listed on BSE the only retailer from India to become a member of

prestigious intercontinental group of departmental stores (IGDS).

6. The Gold Shield for Excellence in Financial Reporting in January 2007 given by

ICAI

7. Outstanding achievement in consumer recognition & loyalty by IFA 2010.

8. Most admired large format retailer by GINI & JONY 2010.

9. Most admired partner by GILI 2010.

10. Maximum consumers reach by Triumph 2010.


2.10 WORKFLOW MODEL

Diagram no.2

2.11 FUTURE GROWTH AND PROSPECT

Shoppers Stop aims to position itself as a global retailer. The company intends to bring the

world’s best retail technology, retail practices and sales to India. Currently, they are adding

4 to 5 new stores every year, to increase the geographical reach. Partner with foreign

players so as to expand globally.


B.S.Nagesh, the Vice Chairman of Shoppers Stop says “We are now looking at developing

our e-commerce model and expect it to contribute between 2-5% of the turnover in the next

3-5 years”. We are not looking at re-entering the formats he adds.

Instead of plunging into different formats of retailing Shoppers Stop wants to concentrate

on the 7-8 formats that they already have.

3. McKINSEY’S 7S FRAMEWORK

Diagram no.3

Strategy: Strategy is the plan of action an organization prepares in response to, or

anticipation of, changes in its external environment. Strategy is differentiated by tactics or

operational actions by its nature of being premeditated, well thought through and often

practically rehearsed. It deals with essentially three questions 1) where the organization is

at this moment in time, 2) where the organization wants to be in a particular length of time

and 3) how to get there.


Structure: Business needs to be organized in a specific form of shape that is generally

referred to as organizational structure. Organizations are structured in a variety of ways,

dependent on their objectives and culture. The structure of the company often dictates the

way it operates and performs.

Systems: Every organization has some systems or internal processes to support and

implement the strategy and run day-to-day affairs. These processes are normally strictly

followed and are designed to achieve maximum effectiveness.

Style: All organizations have their own distinct culture and management style. It includes

the dominant values, beliefs and norms which develop over time and become relatively

enduring features of the organizational life. It also entails the way managers interact with

the employees and the way they spend their time.

Skills variable refers to the capabilities of the staff within the organization as a whole.

Staff: Organizations are made up of humans and it's the people who make the real

difference to the success of the organization in the increasingly knowledge-based society.

The importance of human resources has thus got the central position in the strategy of the

organization, away from the traditional model of capital and land.

Shared Values: All members of the organization share some common fundamental ideas

or guiding concepts around which the business is built. These values and common goals

keep the employees working towards a common destination as a coherent team and are

important to keep the team spirit alive.


3.1 STRUCTURE

THE HIERARCHICAL STRUCTURE OF SHOPPERS STOP

Diagram no.4


STUDY OF THE FUNCTIONAL DEPARTMENT

HUMAN RESOURCE DEPARTMENT


Personnel Selection

The front end employees are selected on the basis of four main aspects:

a. Communication

b. Smartness

c. Qualification minimum to be a graduate or 12th

d. Service orientation

The selection of the front end employees or the CCAs is done in a 3 round interview where

the first round is by the HR Manager followed by ROM (Retail Operations Manager) and

then followed by the Unit Head. Sometimes it is only two rounds of interview.

The DM (Departmental Manager) selection is mainly based on whether the individual has

done an internship with Shoppers Stop satisfactorily, is compatible to the working

environment, organization and how readily the person is being accepted by the CCAs.

If the DM selection is done outside the organization other than the interns then the criteria

is 2+ years more specifically 2-5 years of experience in the sales background.

ROM (Retail Operations Manager) is usually through the internal growth where the DM is

promoted to the post of ROM. When there is an external recruitment it is same as for the

DM where 2-5 years of experience is considered and the individual has to be from the sales

background.

Shoppers Stop follows a recruitment program known as “BABY KANGAROO” (BK)

where the CCAs who work satisfactorily with the organization for a period of 24 months

are recognized and there are internal tests to promote them as DM that includes GD and

Personal Interview.

The back end employees are recruited mainly based on the work experience, qualification

and the assessment.

Employee Remuneration


The employee remuneration is based on the market standards. There are surveys done to

know the market condition and according to the competitors and external influences the

employee remuneration is finalized. A graduate with 4 years of experience and a MBA

with 2 years of experience are considered equal in the remuneration.

MARKETING DEPARTMENT

Discounts and Brand Promotions are the main marketing strategies followed by Shoppers

Stop.

Basic Marketing Functions

Shoppers Stop basically follows two marketing strategies:

1. Guerrilla Marketing

2. Interactive Marketing

Guerrilla marketing is an unconventional marketing system that relies on time, energy

and imagination rather than a big marketing budget. Typically, guerrilla marketing

functions are unexpected and unconventional, consumers are targeted in unexpected places

which can make the idea that is being marketed memorable, generate buzz and even spread

virally. Guerrilla marketing involves unusual approaches such as intercept encounters in

public places, street giveaways of products, stunts, any unconventional marketing intended

to get maximum results from minimal resources. More innovative approaches to guerrilla

marketing now utilize cutting edge mobile digital technologies to really engage the

consumer and create a memorable brand experience.

Interactive marketing is a strategy adopted by the retailers where they allow the

customers to customize the product as per their preference. This strategy is mainly

followed by the service industry like hotels but Shoppers Stop is able to serve out this

facility in a retail store. The concept that has already made a debut at Shoppers Stop outlets


in Mumbai, allows customers who are referred to as guests to go through various stages of

activity in creating their own teddy bear (or other stuffed toy) including choosing a stuffed

animal, stuffing it, giving it a heart, stitching, fluffing, naming and dressing it.

Though the toys are priced at a premium level ranging between Rs.595 to Rs.1295 for a

stuffed animal and add-ons such as sound chips, clothes and accessories coming at an extra

cost, the interactive shopping experience also adds on an element of entertainment for

young customers and can turn into a family affair as well.

FINANCE DEPARTMENT

Source of finance

The promoters of Shoppers Stop Raheja Group are the main source for the finance. It is

also partly funded by the cash accruals. The additional financing source may include

commercial borrowing, vendor financing or issue of equity or debt instruments.

Pricing

Setting the price of the products is in our hands. This is our decision that how much profit

we want to make by selling our products. Sometimes we have to set our prices according to

competition.

3.2 SKILLS

The Shoppers Stop has inherited a special skill for storage known as “Unified

Storage Solution” that helps them to scale rapidly.


Earlier they had segregated islands of storage units, which implied that in some cases they

had underutilized resources while in some others were starving for resources.

A typical retail organization requires a lot of applications and generates huge amount of

data with thousands of transactions taking place on a daily basis. At Shoppers Stop, as data

grew rapidly, back-up and recovery processes became extremely time consuming in the

DAS (Direct Attached Storage) environment causing Shoppers Stop to restrict regular

backup to key servers only. The company needed a centralized storage infrastructure that

could be scaled on demand without disrupting the business. After scanning several

available solutions in the market, Shoppers Stop decided to implement a unified storage

solution from NetApp.

The process of consolidation and virtualization of storage resources has resulted in a host

of benefits for Shoppers Stop. The biggest advantage has been the ability to roll out

applications as per the demands of the business and that too with a very short turn-around

time. The company can now easily increase its storage capacity to match the data growth in

specific applications. Storage consolidation has ensured optimum utilization of resources,

while it has also made the scaling up process extremely flexible and cost effective.

Another major improvement has been experienced in relation to the back-up and recovery

process. The company has experienced almost 50 per cent reduction in back-up and

recovery time. Weekly full back-up windows decreased from 28 hours to 14 hours and

daily back-up windows decreased from 14 hours to 8 hours. This has improved

manageability as well as availability of applications for the organization. Other advantages

include data protection and improvement in resiliency within the storage system.

Shoppers Stop was the first retail store to implement the barcode in its billing system which

made it tech savvy and became a pioneer in keeping the records intact in its software.

3.3 STYLE


Shoppers Stop believes in ACE (Above Customer Expectation). The CCAs and the

Departmental Managers are oriented to serve the customers to the full, to build a strong

customer base. Shoppers Stop strives to give more than what is expected to the customers.

The CCAs are trained to make an Eye contact, Smile, and greet the customers. They are

judged on the KRAs (Key Result Areas) i.e.

1. Sales

2. Customers (Mystery Shoppers)

3. Stocks/ Shrinkage

4. First Citizen

They are given PUCCA training i.e. Product Understanding for CCA to know the products

better to present it to the customers. The Manager and the CCA work together as a team in

achieving the organization goal. The departmental targets are achieved as a team that

consists of both the sales target as well as the First Citizen targets. The targets are yearly

targets that is the financial year which is divided into H1 & H2, that later divides into 2

quarters each which has 3 periods each and subdivided into weeks that consists of either

4/5 weeks.

3.4 STAFF

The staff or the CCA of Shoppers Stop is mainly recruited on the basis of their service

orientation. There are around 3917 employees at Shoppers Stop across the country. The

SSL staff and brand staff work together to achieve the overall objective of the organization.

The staffs are treated as a part of the family and are motivated to work for the betterment of

the personnel and the organization.

3.5 STRATEGY

Shoppers Stop has an effective B&M team i.e. “Buying & Merchandising” team

that plans according to the seasons and purchases the merchandise pertaining to the current

trend and style. The B&M team works closely with the store planning marketing and visual

merchandising team and influences the marketing plan and capacity allocation. The B&M


function works on the basis of two seasons Spring-Summer and Autumn-Winter. Each

season is broken down into 26 weeks, with planning and monitoring done at the weekly

level. Based on market research, past performance analysis and fashion forecast in the

ensuing season as available from the various industry bodies and research agencies, the

B&M team plans and sources the products for all the stores.

Marketing Strategy

Shoppers Stop has tie ups with the Bollywood and Vodafone Telecom in

promoting the merchandise. They tie up with Bollywood movies to launch a line of

apparels like the movie Om Shanti Om, Love Aaj Kal and now at present Karthik calling

Karthik. This is a typical strategy to pull in the customers in a country like India where

there are crazy movie buffs. The Vodafone Zoo Zoo is a new rage in the media and with

the people. Taking an advantage of this Shoppers Stop bought the license to produce and

sell the Zoo Zoo merchandise for men, women and kids as well as other accessories.

Twice a year there is End of Season Sale where the merchandises are on

offer up to 50 per cent off. This is called the irresistible sale and its loyal customers are

given an additional discount on selected merchandises.

Shoppers Stop also undertakes an exchange mela where old salwar-kameez

is exchanged with a new one for a fixed percentage of discounts. The old merchandise is

used for the social cause and is donated to Concern India Foundation.


Picture no. 1

SOURCE: www.ilaaka.com

3.6 SHARED VALUE

Shoppers Stop has its own set of values which it strictly follows in its day to day

operations.

1. They shall not take what is not ours.

2. The obligation to dissent (against a view point that is not acceptable).

3. They shall have an environment conducive to openness.

4. They shall believe in innovation.

5. They shall have an environment conducive to development.

6. They shall have the willingness to apologize and/ or forgive.

7. They shall respect our customers’ rights.

8. The value of trust.

9. They shall be fair.


3.7 SYSTEM

The internal system of Shoppers Stop works for the effectiveness of the

organization. The recruitment process plays an important role. As in the retail sector the

front end employees are very important to the organization due to their direct interaction

with the customers, the selection of the CCAs is done very carefully. The individuals who

are service oriented are given the top priority as they have to serve the customers and fulfill

their expectation. Shoppers Stop believes in ACE- Above Customer Expectation. The

customers have to be delighted by the service provided to them and this makes them come

back which leads to a strong customer base and loyalty.

4.0 SWOT ANALYSIS

STRENGTHS

*Pioneer in Departmental format

*Loyal Customer Base

*Low risk & sturdy business model

*Healthy financial position, low gearing

*Presence across retail segments, lifestyle, value & specialty retailing

WEAKNESS

*Competition from standalone specialty stores.

*Late foray into value retailing with 51% stake in promoter owned company.

*High spend on store makeovers and interiors to ensure a pleasant shopping experience.


OPPORTUNITIES

*Expected 30% CAGR in organized retail to result in better footfall and conversion rates.

*Entry into tier 2 and tier 3 cities.

*Collaboration with foreign players because of a national brand.

THREATS

*Employee shortage and attrition due to rapid growth in retailing.

*Impact of slow down in consumer spend to be felt on department stores.

*Opening up of economy for free entry of foreign players.


IMPACT OF 7 P’S ON SHOPPERS STOP:

Place:

North Delhi-Ansal Plaza Ghaziabad - Indirapuram Gurgaon - Metropolitian Mall Jaipur -

Malviya Nagar Lucknow - Gomti Nagar South Bangalore - Bannerghatta Road Banglore -

Garuda Mall Chennai - Chetpet Hyderabad - Begumpet East Kolkata - Forum Mall Kolkata

- Salt Lake City West Mumbai - Andheri Mumbai - Bandra Mumbai - Chembur Mumbai -

Juhu Mumbai - Kandivili Mumbai - Malad Mumbai - Mulund Pune - Shivaji Nagar Pune –

Camp.

Product Mix:

Men Apparel :

Men Apparel Indian Terrain Allen Solley Dockers Stop Zodiac • Park Avenue Ven Heusen

Mario Zegoti Arrow Austin Reed (London) Louis Philippe • Giovani • Vettorio Fratini

Wills Lifestyle

Women wear :

Women wear I’shvarah Stop Mix n Match Haute Curry Kashish Sanaa Biba Mufti United

color of Benetton Fem – French Collection

Cosmetics / Skincare:

Cosmetics / Skincare CHAMBOR LOREAL Fragrance ADIDAS ARAMIS BVLGARI

CALVIN KLEIN DAVIDOFF DKNY FERRAGAMO NAUTICA RALPH LAUREN,

VERSACE

Product Children wear:

Product Children wear Gini N Joni Barbie Zapp Ruff Lilliput Kanz

Price:

Price Shoppers Stop follows Premium Pricing Strategy that includes selling of High

Quality Products at a High Price. Shoppers stop caters to different segments of the

consumers. Men’s apparel The range of men’s clothing starts from Rs 500 being the lowest

to nearly 6ooo highest.

Price Women’s apparel The range of women’s clothing starts from Rs400 to Rs 10000

Men’s accessories like sunglasses, belts, watches, shoes etc ranges from Rs 1000 to Rs

20000. Women’s accessories like sunglasses, watches, belts, sandals, earrings etc has the

price range of Rs 2000 to Rs 40000.


Price In the kids section prices of toys and other accessories ranges from Rs 100 to Rs 5000

In the cosmetics section there are products like deodorants, skincare cosmetic, make-up

stuff. Their price ranges from Rs 200 to Rs 2000.

Promotion:

Denim festival Customer Care association First Citizen Card Surprise Sale, Valentine Sale.

Sale up to 50% off twice in a year.

People:

People Front-line staff will have a direct impact on perceptions Grey black uniform to suit

with the Shops interiors Good personality to attract the customers inside the shop Friendly

nature.

Physical Evidence:

Physical Evidence Lovely fresh fragrance at entrance Spacious landing strip Wall space

utilized for mirror and print ads of the brand or the product near Also utilized it by

providing self's and constructing trail room around it Mirror finish style flooring Escalators

No stacking bellow knee level. Physical Evidence Men’s Apparel stacked in a unique style.

One type and many sizes together in ascending order 39 40 41 42 44 and for women XS S

M L XL XXL.

Process:

Process Retail-friendly supply network, connects its locations online all over India. Enables

immediate replenishment of stocks at any given outlet. ERP package - imported from the

US-based company J. D. Armstrong, and is called the JDA package. ERP package handles

Merchandise management Warehouse management Automated replenishment Sales

management

Productivity and Quality:

Productivity and Quality Improving productivity is a requisite in cost management Quality

as defined by the customer, is essential for a service to differentiate itself from other


providers Shoppers Stop store has all international brands and all well-to-do, high quality

Indian brands It is possible for Shoppers Stop to provide best of the quality.

5.0 ANALYSIS OF FINANCIAL STATEMENT

BALANCE SHEET

TABLE No. 1

Mar ' 10 (in crores)

Mar ' 09 (in crores)

Equity share capital 34.91 34.87Share application money 30.72 -Preference share capital - -Reserves & surplus 243.26 198.22Secured loans 176.41 178.22Unsecured loans 15.00 29.54Total 500.30 440.85Gross block 457.66 403.45Less : revaluation reserve - -Less : accumulated depreciation 186.66 167.94Net block 271.00 235.51Capital work-in-progress 27.68 23.23Investments 119.67 97.45Current assets, loans & advances 386.42 350.88Less : current liabilities & provisions 304.46 266.21Total net current assets 81.96 84.67Miscellaneous expenses not written - -Total 500.30 440.85

SOURCE: COMPANY DATA

ANALYSIS OF BALANCE SHEET

1. The equity share capital is increased by 0.04 crores in the year 2010.

2. The net Increase in reserves & surplus for the year 2010 is Rs. 45.04 crores.

3. The increase in secured loan is 66.82 per cent over the year 2008.


4. The decrease in the unsecured loan is 55.3 per cent over the year 2008.

5. The increase in net block of assets is Rs.35.49 crore from 2009 to 2010.

6. The net decrease in current assets loans and advances Rs. 9.34 crores in the year

2009. It was 2.59 per cent in the year 2008.

6.0 LEARNING EXPERIENCE

As learning never stops, my learning has come from a lot of exposure, on the job

understanding the organization activities and close interaction with the company.

In brief my learning and achievements can be summarized as under:

Learning about the environment under which an organization works.

Understanding purchase behavior of consumers.

Understanding consumer tastes and preferences towards ready to wear garments.

Managing the peers and the functions of the organization.

I came to know about Time management.

I learn about the corporate culture.

I learnt the importance of leadership traits which guide in achieving personal as

well as organization goals.

I came to know how an individual should be dynamic in corporate sector which

guides in career planning and developments.

To handle the customer objections.

Visual display like colour blocking, size blocking.

About different brands and type of products.


To increase/ push the sales.

Importance of customer service.

The policies of an organization.

How to motivate the staffs.

How to achieve targets.

How to effectively work and curb shrinkage one of the important factors in retail.

INTRODUCTION:

Visual Merchandising is the art of displaying merchandise in a manner that is appealing to

the eyes of the customer and is to present all products in a stimulating and inspiring way.

Visual merchandising includes window displays, signs, interior displays, promotions and

any other special sales promotions taking place.

Visual merchandising has become a natural component of every modern point of

sale and is characterized by the direct contact between merchandise and clients, ithelps

clients to easily approsach goods visually, physically, mentally and intellectually without

the help of a sales person. The totality of all exposition that allow to settle the presentation

of the techniques merchandise in the display window and in the interior of the point of sale

effectively. It is the totality of all marketing activities that can be realized in the point of

sale in order to increase the sell-out.


Lighting

Design Layout

Product Display

Cleanliness

Visual Merchandizing

Purchase Behavior

Visual merchandising is seen as an additional service, and therefore it is relevant for every

modern shop, no matter what kind of store it is or what dimension the store has. The

importance of visual merchandising as an essential instrument of communication for the

retailer and manufacturer derives basically from the demands of the consumers.

Visual merchandising is therefore believed to provide a fundamental contribution

sto a point of sale, it is a tool to valorize a product, a product family, a section, or the point

of sale as a whole. It is a combination of methods that give the product the ability to be

active; thanks to the way it is presented. Its ultimate goal is to increase profitability.

Visual merchandising is a possibility for a shop to make their merchandise move

towards the customer. If handled well, visual merchandising improves the commercial

functionality of the point of sale, develops the commercial productivity of the point of sale

(improves the selling per personnel, per square meter etc) and increases its economic

efficiency.


STATEMENT OF THE PROBLEM:

“ Effect of visual merchandising on purchase of ready to wear

garments at Shoppers Stop ”

OBJECTIVES OF THE STUDY:

Understand the contribution that visual merchandising (VM) makes to Retail Product

Management process by presenting the product to its best advantage.

Explore the scope of VM within a variety of retail contexts.

Appreciate how VM and store design work together to create a stimulating

environment.

Understand how creativity in VM and display can enhance product appeal.

To understand how Shoppers Stop communicates with its customers through VM and

how they sell specific product.

Seek out the importance of their use of advertising campaigns and store window

displays in purchase of apparels.

Identify how the company plans each department layout and how they come up with

this planning, as well as their campaigning and merchandising decisions.

SCOPE OF THE STUDY:

The study was conducted at Shoppers Stop retail store at Bannerghatta road, Bangalore.

The study covers the aspect of the Visual Merchandising in Shoppers Stop with respect to

retailing and how effectively Shoppers Stop is attracting the customers through

merchandise presentation and improves sales of store.

“It makes the market place innovative, exciting and stimulating by creating product-

led stories supported by merchandising solutions”.

Choice of fixtures

Method of product presentation

Construction of displays (including window)

Choice of store layout

Shop Ambience.

In store advertising and announcements.


LIMITATIONS OF THE STUDY:

The limitations that could occur while carrying out this research is as given below:

1. Though Shoppers Stop’s customers are spread across India, the study was restricted

only to customers who visited the store at Bannerghatta Road, Bangalore.

2. The data collected by the researcher are considered to be true to an extent.

3. The customers’ preference is only subjective i.e. their preference may be influenced

by happenings in the recent past; hence the feedback may not be error free.

4. The ability of the students to conduct a professional market study.

5. Music played at the Shoppers Stop for shoppers

VM helps in:

Educating the customers about the product/service in an effective and creative way.

Drawing the attention of the customer to enable him to take purchase decision

within shortest possible time.

Visual merchandising also helps to increase the Sales.

Visual merchandising is a silent seller & it gives an appeal to the customer for

buying.

It helps create positive customer image.

It encourages impulse buying.

Components of Visual Merchandising: Signage

Store Interior

Marquees

Banners

Store Exterior

Displays

Signage:-


Signage is a critical part of interior display and point –of-purchase promotion.

Store signage that communicates a sales message can make up for a lack of sales

personnel.

A good sign provides the most information in the fewest possible words

Store interiors:-

Store interior is an important element of a store concept.

The industry, product selection, price segment, customer group

and company vision form the foundation of the concept.

Marquees:-

A special type of sign is used to display the name of the store.

An effective marquee must stand out from the other businesses

to attract customers.

It can be used to announce a change in season, sale, a special

event or a promotion.

Banners:-

These are used increasingly as an inexpensive but colorful, eye-

catching means of promotion.

Banners can be hung from flagpoles, projected from the building

or hung flat against the exteriors.

Where many signs compete for customer’s attention, design and

logo become more important. They should be unique, noticeable and

readable

Store layout:-

This implies the store layout as well as floor layout planned In store

to display Garments and to attract them to the store.

Displays:-

Window displays and other kind of displays used to exhibit ready to wear

garments in the store.


Displays which made must avoid the mess that may interrupt the customer to select the

garments

RESEARCH DESIGN:

The research design followed in the study is “Exploratory Research” for analyzing the

preference of the customers at Shoppers Stop and the study was mainly conducted using

the questionnaire containing both closed ended and open ended questions including

LIKERT SCALE.

8.6 THEORETICAL CONCEPTS

CCA- Customer Care Associate

KRA- Key Result Areas

RNR- Rewards N Recognition

PUCCA- Product Understanding For CCA

FC- First Citizen

USS- Unified Storage Solution

DC- Distribution Centre

RTV- Return to Vendor

GC- Global Count

KYBC- Know Your Big Customer

RBI- Receiving Bay In charge

SAV- Stock Acknowledgement Voucher

SKU- Stock Keeping Unit (a number assigned to each variation of a product used for

controlling inventory).

NWC- Net Week Cover

RTV- Return to Vendor

IBT- Inter Branch Transfer

Average Ticket- the average dollar amount per trip of what is in a customer’s basket of

goods.

Conversion- the percentage of people that enter a store that buys something.


Bar Code- a group of lines printed on a label attached to the merchandise also known as

UPC code.

Consignment- items offered for sale on a cash or short term credit basis.

EAS label- Electronic Article Surveillance or Security Tags.

Mark Down- a price reduction of merchandise to sell older merchandise or for a specific

sale period.

Salvaged Goods - Damaged merchandise.

Shrinkage- Inventory recorded on a company’s books but not on hand, due to theft, loss or

accounting error.

Zone - the decompression zone or the transition zone.


METHODOLOGY OF DATA COLLECTION:

SOURCES OF DATA

The data was collected by interviewing the customers face to face when they visited the

store. Hence, the data collected is totally primary data directly from the consumers.

PRIMARY DATA

Primary data was collected using a questionnaire. The researcher approached the customers

of Shoppers Stop at Bannerghatta Road customers. The questionnaire contains 22 questions

including the suggestions based on Merchandise presentation at Shoppers Stop.

SECONDARY DATA

The secondary data were collected from company’s website, books, published reports,

unpublished reports, business research related books, journals, magazines, etc.

SAMPLING PLAN

SAMPLE SIZE

Based on the convenience of the researcher the sample size was chosen and it is set to be

56 as the sample size.

TARGET POPULATION

The target population in the research would include the following:

The target population was customers who walked in to the store of all age groups.

SAMPLING METHOD


The researcher had applied under the non-probability, judgmental sampling to reach the

target customers. The selected store was at Bannerghatta Road. The researcher chose the

sample based on convenience.

FIELD WORK

The field work of the study was conducted at Shoppers Stop Bannerghatta road, Bangalore

using the questionnaire of both open ended and closed ended including the LIKERT

SCALE. The respondents were all age customers who visited the store.

TOOLS AND TECHNIQUES OF DATA COLLECTION

The questionnaire consists of a total of 22 questions. Each question will be analyzed based

on the response for each question. The researcher has analyzed the data which has

mobilized from the targeted consumer. The following tools were used in this research

study.


1. Shoppers Stop Have Innovative Window Displays?

PARTICULARS NO. OF RESPONDANTS % OF RESPONDANTS

Completely disagree 0 0Disagree 0 0Neither disagree nor agree 16 29Agree 28 50Completely agree 12 21

ANALYSIS: The above graph reveals that in terms of Innovative window displays 12

respondents completely agree , 28 respondents agree, 16 respondents out of 56 has neutral

opinion .

INFERENCE: This indicates that 21% of customers completely agree and 50% of

customers agree that Shoppers stop has an innovative window display which induces the

customers to purchase garments. And 29% of customers have the neutral opinion that they

neither agree nor disagree with the displays made.


Shoppers stop displays innovative window displays

0%0%

29%

50%

21%

Completely disagree

Disagree

Neither disagree nor agree

Agree

Completely agree

2. Shoppers stop stores have Good floor layout?

PERTICULARS NO. OF RESPONDANTS % OF RESPONDANTS

Completely disagree 0 0Disagree 0 0Neither disagree nor agree 4 7Agree 36 64Completely agree 16 29

ANALYSIS: The above graph shows that in terms of floor layout 16 respondents

completely agree, 36 respondents agree, 4 respondents out of 56 has neutral opinion.


customers agree that Shoppers stop has good floor layout which attracts the customers to

the store. And 7% of customers say that they neither agree nor disagree with the store

layout.


Shoppers stop stores have good floor layout

0%0% 7%

64%

29%Completely disagree

Disagree


Agree

Completely agree

3. Shoppers stop displays good signboards?

PERTICULARS NO. OF RESPONDANTS % OF RESPONDANTSCompletely disagree 0 0Disagree 0 0Neither disagree nor agree 8 14Agree 20 36Completely agree 28 50

ANALYSIS: The above graph says us about Displaying of good Sign boards 28

respondents completely agree, 20 respondents agree, 8 respondents out of 56 has neutral

opinion.


customers agree that Shoppers stop displays good Signboards which help the customers to

select the wide range of merchandise In store. And 7% of customers say that they neither

agree nor disagree.


Shoppers stop displays good signboards

0%0% 14%

36%

50%

Completely disagree

Disagree


Agree

Completely agree

4. Shoppers stop displays its ready to wear garments?


ANALYSIS: The above graph reveals us about Displaying of ready to wear garments 36

respondents completely agree, 20 respondents agree that shoppers stop displays all its

merchandise.

INFERENCE: This indicates that 64% of customers who often visit the store strongly

agree and 36% of customers agree that Shoppers stop displays wide range of merchandises

which help the customers to select garments of their choice.


Shoppers stop displays its ready to wear garments

0%0%0%

36%

64%

Completely disagree

Disagree


Agree

Completely agree

5. Shoppers stop has good ambience for shopping ready to wear garments?


ANALYSIS: The above graph reveals us that Shoppers stop has good Ambience for

shopping of ready to wear garments 32 respondents completely agree, 24 respondents agree

with that in shoppers stop.

INFERENCE: This indicates that 57% of customers who often visit the store completely

agree and 43% of customers agree that Shoppers stop has good ambience conditions for a

shopper which makes the customers more pleasurable while shopping.


Shoppers stop has good ambience for shopping ready to

wear garments

0%0%0%

43%

57%

Completely disagree

Disagree


Agree

Completely agree

6. Shoppers stop has good trial rooms?


ANALYSIS: The above graph reveals us that Shoppers stop has good Trial rooms for

shoppers of ready to wear garments 28 respondents completely agree, 16 respondents

agree,8 respondents has neutral opinion 4 of them Disagree that in shoppers stop there are

no good trial rooms.

INFERENCE: This indicates that 50% of customers who visit the store completely agree

and 29% of customers agree that Shoppers stop has good Trial rooms for shoppers which

makes the customers more comfortable to try the garments of their choice and 14% of

respondents say they neither agree nor disagree and 7% of customers disagree and say that

shoppers stop doesn’t have good trial rooms.


Shoppers stop has good trial rooms

0% 7%

14%

29%

50%

Completely disagree

Disagree


Agree

Completely agree

7. Shoppers stop has best buy section which induces trial?


ANALYSIS: The above graph reveals us that Shoppers stop has best buy section which

induces trial 28 respondents completely agree, 28 respondents agree that shoppers stop has

best buy section.

INFERENCE: This indicates that 50% of customers who often visit the store completely

agree and 50% of customers agree that Shoppers stop has best buy section which induces

them for a trial.


8. Shoppers stop has mannequins with good display of ready to wear garments?


ANALYSIS: The above graph reveals that in terms Shoppers stop has mannequins with

good display of ready to wear garments 4 respondents completely agree , 48 respondents

agree, 4 respondents out of 56 has neutral opinion .


customers agree that Shoppers stop has mannequins with good display of ready to wear

garment. And 7% of customers has the neutral opinion that they neither agree nor disagree

with the displays made on the mannequins.


Shoppers stop has mannequins with good display of

ready to wear garments

Completelydisagree

Disagree Neitherdisagree nor

agree

Agree Completelyagree

9. There can be more mannequins with more exhibits of ready to wear garments?


ANALYSIS: The above graph reveals that there can be more mannequins which exhibit

more variety in Shoppers stop which display ready to wear garments 16 respondents

completely agree , 28 respondents agree, 12 respondents out of 56 say they neither agree

nor disagree for this .


customers agree that in Shoppers stop there can be more mannequins with more display of

ready to wear garment. And 22% of customers has the neutral opinion that they neither

agree nor disagree with the number of displays made on the mannequins.


There can be more mannequins with more exhibits of

ready to wear garments

Completelydisagree


agree


10. Mannequins are the best way to display ready to wear garments?


ANALYSIS: The above graph reveals that Mannequins are the best way to display ready

to wear garments 28 respondents completely agree, 20 respondents agree, 4 respondents

has neutral opinion and 4 respondents disagree and say that its not the best way to display

apparels.


customers agree in Shoppers stop mannequins are the best way to display of ready to wear

garment,7% of customers has the neutral opinion that they neither agree nor disagree with

the displays made on the mannequins and rest of the 7% of respondents disagree and say

mannequins are nnot the best way to display garments.


Mannequins are the best way to display ready to wear

garments

1 2 3 4 5

11. There are attractive photographs on the walls displaying ready to wear garments?


ANALYSIS: The above graph reveals that There are attractive Photographs on the walls

Displaying ready to wear garments.4 respondents completely agree, 28 respondents agree,

16 respondents has neutral opinion and 8 respondents disagree .

INFERENCE: This indicates that 7 % of customers completely agree and 50% of

customers agree, 29% of customers have the neutral opinion that they neither agree nor

disagree with the photographs display made on the walls and rest of the 14% of

respondents disagree and say that there were no attractive Photographs on the walls which

displayed garments.


There are attractive photographs on the walls displaying ready to wear garments

0% 14%

29%50%

7%

Completely disagree

Disagree


Agree

Completely agree

12. There can be more wall mounts inside the store?


ANALYSIS: The above graph reveals that There can be more wall mounts to be

Displayed inside the store.24 respondents completely agree, 16 respondents agree, 12

respondents has neutral opinion and 4 respondents disagree .

INFERENCE: This indicates that 43% of customers completely agree and 29 % of


disagree with the wall mounts made inside the store and rest of the 14% of respondents

disagree and say that there is no need of more wall mounts to be displayed in shoppers

stop.


There can be more wall mounts inside the store

0%7%

21%

29%

43%

Completely disagree

Disagree


Agree

Completely agree

13. Wall mounts are always same in shoppers stop?


ANALYSIS: The above graph reveals that The wall mounts made in shoppers stop to

Display inside the store.24 respondents completely agree, 16 respondents agree, 12

respondents has neutral opinion and 4 respondents disagree .



disagree with the wall mounts made inside the store and rest of the 14% of respondents

disagree and say that there is no need of more wall mounts to be displayed in shoppers

stop.


14. Wall mounts are very good promotion materials to induce sales?


ANALYSIS: The above graph reveals that the wall mounts are very good tool of

promotion which can induce sales of store 20 respondents completely agree, 20

respondents agree, 12 respondents has neutral opinion and 4 respondents disagree .


customers agree and say wall mounts helps in promoting the sales, 21% of customers have

the neutral opinion that they neither agree nor disagree and rest of the 14% of respondents

disagree and say that wall mounts are not good tool to promote sales in shoppers stop.


15. I feel like trying out the design wore by the mannequins?


ANALYSIS: The above graph reveals that 28respondents completely agree, 28

respondents agree that they felt like trying out the designs wore by the mannequins and 12

out of 56 respondents neither agree nor disagree with that.

INFERENCE: This indicates that 29%f customers completely agree and 50%f customers

agree that they felt like trying out the designs wore by the mannequins 21% of respondents

said they neither agree nor disagree with this.


16. In store announcements are very good in Shoppers stop?


ANALYSIS: The above graph reveals about the In store announcements made in shoppers

stop 16 respondents completely agree 8 respondents agree and 16 of them neither agree nor

disagree 12 of them said they will disagree and 4 of them said that they will completely

disagree and said announcement made were not good.

INFERENCE: This indicates that 29% of respondents completely agree, 14% respondents

in Shoppers stop agree that In store announcement will be good and 29% respondents has

neutral opinion, 21% of respondents Disagree and 7% of respondents completely disagree

and confirm that there were no good announcements made in store.


Completelydisagree


agree


In store announcements are very good in shopperstop

17. I go in search of items offered in the announcements in store?


ANALYSIS: The above graph reveals that 12 respondents completely agree, 8 respondents

agree that they will go in search of items offered in the announcements In store 20

respondents has neutral opinion and 16 respondents disagree and they will not go in search

of items offered in announcements.


customers agree in Shoppers stop they will go in search of items offered in announcements

36% of customers has the neutral opinion that they neither agree nor disagree rest of the

29% of respondents disagree and say they will not go in search of items offered in

announcements.


Completelydisagree


agree


I go in search of items offered in the announcement in store

18. In store announcements induces me to take the offer?


ANALYSIS: The above graph reveals that 16 respondents completely agree, 16

respondents agree that In store announcements induces them to take offer 12 respondents

has neutral opinion and 8 respondents disagree and they will not be induced offered in

announcements.


customers agree in Shoppers stop In store Announcement induces them to purchase items

offered 21% of customers has the neutral opinion that they neither agree nor disagree rest

of the 14% of respondents disagree, 7% of respondents completely disagree and say that In

store announcements will not induce them to take offer in Shoppers stop.


19. In store Announcements is the best way to induce Sales?


ANALYSIS: The above graph says us that 24 respondents completely agree, 20

respondents agree that In store Announcement is the best way to induce sales respondents

has neutral opinion and 16 respondents disagree and they will not go in search of items

offered in announcements.


customers agree In store Announcements is the best way to induce sales in Shoppers stop

7% of customers has the neutral opinion that they neither agree nor disagree rest of the

14% of respondents disagree and say its not the best way to induce sales by In store

announcements.



Annexure:

“ Effect of visual merchandising on purchase of ready to wear garments at

Shoppers Stop ”

Dear Sir/ Madam ,

I ROHITH.T.M Student of Cambridge Institute of Technology, Bangalore

conducting a survey on “ effect of Visual Merchandising on Purchase of Ready to wear

Garments at Shoppers Stop ” This Survey is a Part of my partial Fulfillment of MBA

Course. Please Provide Relevant information by filling this Questionnaire to make

mysurvey more comprehensive. All details from your part will be kept very much

confidential.

RESPONDENT PROFILE:

NAME:

GENDER: Male / Female

AGE: Years

OCCUPATION:

[ ] INDUSTRY ( Product / Service ) [ ] Not working

[ ]Government ( Central / State ) [ ] Self Employed

[ ] Retired ( voluntary / Superannuation)

AVERAGE MONTHLY PERSONAL INCOME:

[ ] Up to Rs. 10,000 [ ] Rs 10,000—30,000

[ ] Above Rs 30,000 [ ] No Income.


Comeletely

Disagree

Disagree Neither

disagree

nor agree

Agree Compleately

Agree

1. Shoppers Stop Have Innovative Window Displays

2. Shoppers stop stores have Good floor layout?

3. Shoppers stop displays good signboards?

4. Shoppers stop displays its ready to wear garments?

5. Shoppers stop has good ambience for shopping ready to wear garments?

6. Shoppers stop has good trial rooms?

7. Shoppers stop has best buy section which induces trial?

8. Shoppers stop has mannequins with good display of ready to wear garments?

9. There can be more mannequins with more exhibits of ready to wear garments?

10. Mannequins are the best way to display ready to wear garments?


Comeletely

Disagree

Disagree Neither

disagree

nor agree

Agree Compleately

Agree

11. There are attractive

photographs on the walls

displaying ready to wear

garments?

12. There can be more wall mounts inside the store?

13. Wall mounts are always same in shoppers stop?

14. Wall mounts are very good promotion materials to induce sales?

15. I feel like trying out the design wore by the mannequins?

16. In store announcements are very good in Shoppers stop?

17. I go in search of items offered in the announcements in store?

18. In store announcements induces me to take the offer?

19. In store Announcements is the best way to induce Sales?


SUMMARY OF FINDINGS:

1. Almost every person contacted said that He / She were the loyal customer of

Shoppers Stop.

2. Consumers choose merchandise from Shoppers Stop because they want variety in

apparels and different brands under one roof,consumers find Shoppers Stop is more

economic compared to other stores.

3. Various Ambient Conditions Music, Store layout,cleanliness,Signboards,Trial

rooms,safety and security Parking facilities are the major determinants which

respondents use to decide the store for purchasing of merchandises.

4. Most of the Respondents take on the spot decision of buying different products

because of the various attractive product displays or window displays and the pretty

combinations which the store tries on the Mannequins, it shows that most of

consumers are attracted towards different displays.

5. Most of the time customers would like to do Impulse buying by the displays made

or by the offers offered in the store.

6. But the Music played in the store were routine and that doesnt influence costomers

for Impulse Buying of apparels.

7. Wall mounts and wall photos are very good promotion materials which induce

sales in Shoppers stop.

8. Advertising and In store announcements Plays a crucial part in the purchase

behavior and Decision making process of consumers.

9. For most of the respondents Quality plays a very important role because most of the

customers said that they want Quality service to be provided and that is also one

reason for most of the people sticking to particular store for purchase.

10. We can also say that location, variety convenience and economical products are not

the only things which attract customers but there are some other factors which play

a major role in attracting the customers to the store.


OBSERVATION AND SUGGESTIONS:

As per the data collected we can know there are very few customers who are

visiting the store for the first time thus one of the major step for the store

management is to improve the service and quality to the Walk-ins of

Customers.

Customer purchase history is Tracked by system and Loyalty points are

offered to their customer which essentially reward them for Shopping.

Customer Database allows tracking and reporting of Gross margin by

customer which allows retailers to identify their most profitable customer.

The major set back would be that only the loyal customers are aware of the

offers and the availability of the merchandise where as the non-members

seldom gets the information.

Always much Business is generated within the store many may not be

expecting to purchase something which is of not immediate requirement but

because of store Ambience they may purchase the same so it is suggested to

create such a environment in the store.

Also the Store can improve on the Advertising and promotions, hoardings

can be increased in the highways and banners and pamphlets can be put and

distributed in crowded areas which attract huge customer segments.

Ambient conditions, Music, window displays must be made in such a way

that must draw the customers into the store and arouse them to purchase the

ready to wear garments.


It was found that the major problem faced by the customers is the crowd at

the cash counters. the life of today’s generation has become very fast. They

don’t want to wait in a queue for a longer period. They must be served better

by speeding up the billing counters.

As these kind of stores are increasing, shoppers stop has to improve in terms

of service quality, Innovative displays, In store advertising and in displaying

of wall mounts and wall photos and In store Announcements which will

attract more customers and retain them as loyal customers.

CONCLUSION:

Visual Merchandising is the art of displaying merchandise in a manner that is appealing to

the eyes of the customer and is to present all products in a stimulating and inspiring way.

o Visual merchandising has become a natural component of every modern

point of sale and is characterized by the direct contact between merchandise

and clients, ithelps clients to easily approach goods visually, physically,

mentally and intellectually without the help of a sales person.Visual

merchandising is a silent seller & it gives an appeal to the customer for

buying.

o Visual merchandising guides the customer to get awareness about the

product and to assist in selecting the product without the assistance of

salesperson.

Stimulate product interest

Provide information

Suggest merchandise co ordinations

Generate traffic flow

Remind customers of planned purchases

Create additional sales of impulse items

Enhance the store’s visual image


SUGGESTIONS / RECOMMENDATIONS:

1. Mass media advertising is very necessary to reach the mass customers as only the

members usually availing offers.

2. Conducting events in the weekdays to attract more customers during the non-peak

time/days would attract even the window shoppers.

3. The trends have to match for all ages where the merchandise has to differentiate for

different age groups in order to acquire more market share.

4. The quality of the merchandise has to be maintained to compete with the standards of the

established brands.

5. Should provide more offers to attract huge customers and grow the customer loyalty

base.



General Introduction

Documents

retail business

retail sales

us retail industry

retail industry accounts

retail av

retail sector

retail unemployment

worldthe retail industry