NIKHIL YADAV- 'MOTHER CARE' OUTLET PLANNING

IDENTIFICATION AND ANALYSIS OF

RETAIL OUTLET LOCATION

PRESENTED BY

NIKHIL YADAV

SEQUENCE OF THE PRESENTATION CONCEPT OF THE STORE JUSTIFICATION FOR: (a) OPENING THE STORE IN PUNE (b) OPENING IT IN MALL OR STANDALONE (c) SIZE OF THE STORE TARGET CUSTOMERS POPULATION DENSITY AND SIZE AGE PROFILE OF CUSOMERS AND THEIR SIZE CUSTOMER PROFILING LOCATION OF THE STORE DEMOGRAPHIC BOUNDARIES COST OF RENT OR PROPERTY(COST BENEFIT ANALYSIS) TRANSPORT SIZE AND FACILITIES RETURN ON INVESTMENT ADVERTISMENT COST CUSTOMER SERVICE TO BE OFFERED

CONCEPT OF THE STORE:CONTD…

A SPECIALITY CONCEPT STARTED IN 1961 IN SURREY,UK IT IS THE UK’S LONGEST ESTABLISHED AND BEST-

KNOWN ‘ONE-STOP SHOP’ FOR ALL PARENTS’ NEEDS AND ASPIRATIONS.

 MOTHERCARE OPERATES INTERNATIONALLY THROUGH FRANCHISES IN EUROPE, THE MIDDLE EAST, AFRICA AND THE FAR EAST UNDER THE'MOTHERCARE' BRAND NAME.

CONCEPT OF THE STORE

PRODUCT BASKET WOULD COMPRISE OF MATERNITY WEAR, FASHION APPAREL FOR BABIES, TODDLERS & YOUNG KIDS, TOYS & GAMES, WELLNESS PRODUCTS FOR MOTHERS AND BABIES, NURSERY AND FURNISHINGS, TRAVEL & SAFETY PRODUCTS, PERSONAL PRODUCTS, FOODS, AND MANY OTHER CONNECTED ITEMS.

FOR WOULD BE MOMS THE STORE WOULD DEAL IN MATERNITY WEAR, PREGNANCY , LABOR ESSENTIALS AND LITERATURE.

IT IS BASICALLY A SPECIALIST RETAILER OF PRODUCTS FOR MOTHERS-TO-BE, NEWBORNS 0-3 MONTHS, INFANTS 3-18 MONTHS, TODDLERS 18-36 MONTHS AND KIDS 3-8 YEARS

FOCUSES ON STYLE, HYEGINE , SAFETY AND COMFORT.

CURRENT STATUS IN INDIA

MOTHERCARE IN INDIA HAS 70 STORES i) 38 ARE FRANCHISE STORES (MOST OF THEM

ARE STORES IN MULTIBRAND STORES LIKE SHOPPER STOP)

ii) 32 JOINT VENTURES.(MAXIMUM NUMBER ARE WITH DLF VENTURES)

FUTURE PLANSTO HAVE 200 STORES BY 2015.TO OPEN STANDALONE STORE IN NEAR FUTURE.

LATEST TRENDS VISUAL MERCHANDIZE: IS BEING ADHERED FOR

THE ITEMS WHICH ARE DISPLAYED AND SOLD IN THE RETAIL STORES IN MALLS.

EARLY LEARNING CENTER: SELL DESIGNER AND UPMARKET COSTLY TOYS AND OTHER CHILDRENS’ PRODUCTS, PRIMARILY FOR THE 0 -6 YEAR AGE RANGE, WHICH ARE REQUIRED FOR EARLY LEARNINGS FOR TODDLERS .

SOCIAL NETWORKING SITES TARGET THE NEW PARENTS. MOTHER CARE PAGES ARE ON THE FACEBOOK,TWITTER,GOOGLE.COM AND OTHER SOCIAL NETWORKING SITES.

ONLINE AVAILABILITY MOTHERCARE ITEMS AND PRODUCTS ARE AVAILABLE ONLINE market.

STANDALONE RETAIL STORE

STORE FORMAT: RIGHT LOCATION

CUSTOMER CONVENIENCE:

IT CAN HELP THE CUSTOMERS TO REACH CONVENIENTLY SPECIALLY WHEN THE STORE IS FOR THE TO BE MOTHERS AND KIDS.PARKING AVAILABILITY, UNDERGROUND / OVERGROUND.

BUSINESS OPERATION LOW RENT AND OPERATING COSTS AS COMPARED TO MALL.MORE SPACE FOR THE MERCHANDIZE.STORAGE SPACE CAN ALSO BE EASILY MANAGED.

EASY TO LOCATE:

IDENTIFICATION BECOMES EASIER. THE CUSTOMERS ARE ATTRACTED

TOWARDS THE STORE.

STORE AND TARGET CUSTOMERS

ABOUT STORE STORE SIZE :RANGING BETWEEN 5,000 TO10,000SQ.FT. STORES TO BE LOCATED IN METROS, MAJOR CITIES AT HIGH

STREETS. PRICE RANGE: RS 500/- TO RS 20,000/-

TARGET CUSTOMERS PREGNANT WOMEN AND CHILDREN TO THE AGE OF 8. UPPER MIDDLE CLASS AND NEUVE RICH YOUNG, NET SAVVY

PARENTS EXPECTANT MOTHERS WANT TO LOOK FASHIONABLE DURING

THEIR PREGNANCY PERIOD. PARENTS ARE NOT READY TO COMPROMISE REGARDING

THEIR CHILD AND THEY WANT TO BE AWARE OF PARENTING.

PRODUCTS

MATERNITY NEEDS PRAMS AND PUSHCHAIRS NURSERY ESSENTIALS CAR SEATS CLOTHING BATHING FEEDING BOTTLES SAFETY HARNESS KIDS BEDROOM TOYS AND GIFTS

TARGET CUSTOMERSCONTD….

WOMEN WHO ARE EXPECTING, MOTHERS WHO HAVE KIDS UP TO THE AGE

OF 8 YEARS, KIDS FROM 0-8 YEARS.

TARGET CUSTOMERS: CONTD…. THE CUSTOMERS WHO ARE BRAND CAUTIOUS AND ARE WILLING TO

PAY HIGH IN NAME OF BRAND. MATERNITY HOSPITALS WHICH PROVIDE HIGH END SERVICES. MOSTLY DOUBLE INCOME FAMILIES AND NEUVE RICH FAMILIES. NEIGHBOURING AREAS

A SURVEY OF 1000 CUSTOMERS CONDUCTED : TRAVEL DISTANCE FOR SHOPPING, MOTHER AND CHILD CARE PRODUCTS AGAINST PERCENTAGE OF CUSTOMERS

TARGET CUSTOMERSACTUAL CUSTOMERS AS PER THE BIRTH REGISTER OF PUNE MUNICIPAL

CORPORATION 7,03,355 KIDS WERE BORN FROM 2001 TO 2014.

CONSIDER MARKET POTENTIAL TO BE 20% OF TARGET POPULATION, THE TOTAL MARKET POTENTIAL IS ASSUMED TO BE 1,40,671

AND TAKING 10% OF THAT AS OUR PROBABLE CUSTOMERS , THE ULTIMATE FIGURE COMES OUT TO BE 14067.

THERE IS LOT OF UNTAPPED MARKET WHICH IS SHOWN AS UNDER

A SURVEY WAS CONDUCTED WITH 1000 PEOPLE : DO YOU KNOW ABOUT ANY SPECIALTY STORE FOR MOTHERS AND BABIES?

YES NO0

20406080

35 % 65%

MAP OF PUNE

POPULATION DENSITY:PUNE REGION

TOTAL POPULATION OF PUNE CITY IS APPROX 75 , 41, 946

TOTAL SEX RATIO IS 915 FEMALES PER 1000 MALES.

PUNE CITY AREA IS APPROX 224 SQUARE KILOMETERS

PUNE CITY HAS A POPULATION DENSITY OF 13,908 PER SQUARE KILOMETER.

AREA WISE POPULATION DISTRIBUTION

NAME AREA POPULATION DENSITY /SQ.KM

AUNDH 44.63 3,51,840 7,883

YERAWADA 30.75 2,16,195 7,030

HADAPSAR 28.01 2,87,012 10,246

WARJE KARVENGAR

12.04 1,63,779 13,602

DOLE PATIL ROAD

8.48 1,40,082 16,519

KARVE ROAD 10.05 2,86,043 28,462

TILAK ROAD 18.14 2,95,545 16,293

OTHERS 89.1 15,24,386 17,108

AGE GROUP WISE POPULATION

TOTAL POPULATION BETWEEN AGE GROUP OF 0-8 IS AROUND 4,01,917.

POPULATION OF AUNDH AREA FOR 0-8 YEARS IS AROUND 58,270.

14.77%

6.17%8.20

%6.67

%4.03

%8.17%8.44%

43.55%

% of babies within age group of 0-8 Areawise

Aundh Yerawada Hadapsar Warje Karvengar Dole Patil Road Karve Road Tilak Road Others

CUSTOMER PROFILING:CONTD….

SOCIO ECONOMIC PROFILING UPPER MIDDLE CLASS TO HIGH INCOME GROUP

CUSTOMERS. CUSTOMERS WHO SPENDS MORE ON BRANDS. CUSTOMERS WITH REGULAR SHOPPING HABITS. PEOPLE WHO ARE MORE BRAND CONSCIOUS &

WILLING TO PREFER BRANDED ITEMS FOR USE. CUSTOMERS WHICH LIVE IN HIGH CLASS

SOCIETIES. SMALL & LARGE FAMILIES BOTH WHICH SPEND

MORE ON CHILDREN & MOTHER CARE.

CUSTOMER PROFILING

MOSTLY CUSTOMERS WITH MONTHLY INCOME MORE THAN 50000.

CUSTOMERS WHO SPENDS MORE THAN 10-15% OF THEIR MONTHLY INCOME ON SHOPPING.

NEWLY MARRIED COUPLES & PROFESSIONALS WHO GENERALLY PREFERS BRANDED ITEMS

CUSTOMERS WHO WILLING TO PAY ON BRANDED ITEMS & DON’T PREFER LOCAL ONES

CUSTOMERS WHICH MORE CONCERNS WITH THEIR LIFESTYLE & SOCIAL EFFECTIVENESS.

LOCATION OF THE STORE MAJORITY OF THE CUSTOMERS WHO HAVE MORE

SPENDING CAPACITY ARE CUSTOMERS OF MOTHERCARE AND STAY AT UNDH, BANER, VIMAN NAGAR.

WE FIGURED OUT ON AUNDH AS THE LOCATION WHERE WE WILL ESTABLISH OUR STORE

THE REASON FOR THE DECESION ARE AS UNDER: MOTHERCARE IS A NICHE PRODUCT STORE, HENCE

MOTHER CARE WOULD PREFER TO BE NEAR ITS PROSPECTIVE CUSTOMER.

THE COMMERCIAL AREA WOULD BE TAKEN ON RENT. THE AREA REQUIRED (6000SQ FT) IS AVAILABLE AT LOWER PRICE I.E. RS.200/SQ FT.

MOTHER CARE LOCATION: AUNDH AREA

CUSTOMER DEMOGRAPHIC BOUNDARIES

• THE CUSTOMER EXPECTANCY IS MINIMUM FROM A DISTANCE OF 7 TO 10 KM.

• THE AREA AROUND THE STORE IS GEOGRAPHICALLY DISTRIBUTED

SR NO AREA CUSTOMER EXPECTED

1 UP TO 1 KM VERY HIGH

2 1 TO 3 KM HIGH

3 3 TO 5 KM MEDIUM

4 5 TO 7 KM MEDIUM

5 7 TO 10 KM LOW

6 10KM AND MORE VERY LOW

DEMOGRAPHIC BOUNDARIES

COST OF THE PROPERTY THE STORE WILL BE SET UP AT AUNDH. PROPOSAL IS TO RENT A SPACE OF AROUND 6000 SQ.FT. THE RENT FOR THE SPACE IS IS RS.200/SQ FT THE TOTAL

RENT WILL BE RS. 12 LAKH/MONTH AND 1 CR AND 44 LAKH PER YEAR.

RS 15 LAKH WILL SPENT ON THE DECOR, LIGHTING, FURNITURE, INTERIOR DECORATION , VISUAL MERCHANDIZING.

IN CASE WE HAVE TO BUY THE PROPERTY THEN: RATE OF THE COMMERCIAL PROPERTY IN AUNDH IS RS

15000/ SQ FT THERE FOR THE 6000 SQ FT PROPERTY TOATAL WILL BE

6000X15000=90,000,000 PLUS 6% REGISTRATION CHARGES=54 LAKH THEREFORE 9 CR 54 LAKH . THEREFORE IT IS BENEFICIAL TO RENT THE PROPERTY

RATHER THAN BUYING IT.

STORE SIZE AND LAYOUT:CONTD.. OPERATION SPACE: DISPLAY, (SALES FLOOR) OFFICE, AND STORAGE PARKING AREA DISPLAY: SELLING SPACE SALES VOLUME/SALES PER SQUARE FOOT =

SELLING SPACE SEEN FROM MAIN FLOW OF TRAFFIC SIGNAGES BE EASILY SEEN BETTER VISIBILITY, LESS ADVERTISING NEEDED STRUCTURE HAS TO BE EYE APPEAL

OFFICE AND STORAGE: OFFICE AND STORAGE- 10 TO 25% OF TOTAL AREA INVENTARY CONTROL SYSTEM , CCTV COVERAGE

STORE SIZE AND LAYOUT:CONTD..TOTAL FLOOR AREA 6000 SQ FTSR. NO.

ALLOCATED FOR AREA (SQ FT)

1 PRODUCT DISPLAY 5200

2 BACK OFFICE AND INVENTORY SPACE 550

3 (EDUCATIONAL) PLAYGROUND 150

STRAIGHT FLOOR PLAN (GROUND FLOOR)1. USE OF WALLS AND FIXTURES2. MOST OF THE INVENTORY ON

DISPLAY3. ECONOMICAL STORE DESIGN

MIXED FLOOR PLAN (1ST FLOOR)1. INCORPORATES STRAIGHT,

DIAGONAL AND ANGULAR PLAN2. TRAFFIC TOWARDS THE WALLS3. MOST FUNCTIONAL STORE

DESIGN

STORE LAYOUT:CONTD… GROUND FLOOR

• Ground Floor Plan

Sales and clearance

Entrance

Toys and Gifts

StairsBathroom

Prams and Push chair

ElevatorSAFETY AND NURSERY

Maternity , Clothing

STORE LAYOUT FIRST FLOOR

DECISION FOR STORE LAYOUT:CONTD.. DECISION FACTOR: SIZE OF THE TOWN THE SCALE OF ITS EXISTING BUILDINGS, AND LONG-TERM GOALS WITH REGARD TO RETAIL

DEVELOPMENT SOCIAL CONSIDERATION ZONING LAWS LOCATION COST

DECISION FOR THE STORE LAYOUT

MINIMIZATION OF PROCUREMENT COSTS WHILE MAXIMIZING THE SECURITY WITHIN THE SUPPLY PROCESS

DISPOSAL LOGISTICS :

REUSED OR RECYCLED E.G.: PACKING MATERIAL LIKE PLASTIC FILM AND CARDBOARD

TRANSPORT SIZE AND FACILITIESPMPML-TIMETABLE

SR. NO. ROUTE FREQUENCY

1 ABC TO SANGHAVI EVERY TEN MIN.

2 MANAPA TO SANGHAVI HALF HOUR

3 MANAPA TO HINJEVADI HALF HOUR

4 MANAPA TO CHINCHVAD ONE HOUR

5 MANAPA TO PIMPLE SAUDAGAR ONE HOUR

6 MANAPA TO PIMPLE GURAV HALF HOUR

7 PUNE STATION TO SANGHAVI HALF HOUR

8 PUNE STATION TO HINJEVADI ONE HOUR

9 PUNE STATION TO CHINCHVAD EVERY 15 MIN.

10 PUNE STATION TO PIMPLE SAUDAGAR

HALF HOUR

11 PUNE STATION TO PIMPLE GURAV ONE HOUR

12 SWARGATE TO SANGHAVI ONE HOUR

TRANSPORT SIZE

AUTO RICKSHAW TARIFFFOR EVERY 1.6 KM ,RS 17.00

EVERY 100M , CHARGES ARE RS 1.00 /100M CAB TARIFF

OLA, MEERA ,MERU, GENIE CABRS 100/5 KM ,THEN,PER KM RS 16 TO 18

DEPENDING ON CATAGORY OF CAR ,VIZ HATCHBACK AND SEDAN

CUSTOMER SERVICES EXCHANGES HOME DELIVERY ALTERATION ASSISTED SHOPPING CUSTOMER LOYALTY PROGRAMME MOTHER’S CLUB SMS ALERTS PUSHCHAIRS DURING SHOPPING GIFT VOUCHERS BIRTHDAY SURPRISE GIFTS MOTHER’S DAY CELEBRATION

CUSTOMER SERVICES IMMEDIATE MEDICAL FACILITY FOR THE “TO BE

MOTHERS” AND SMALL CHILDREN. PROPER WASHROOM FACILITY. SMALL ,WELL VENTILATED EATING JOINT

CATERING HYEGENIC FOOD. SMALL PLAY AREA WHERE THE ATTENDANTS

ARE THERE TO LOOK AFTER SMALL KIDS.

ADVERTISING PLAN:CONTD…OBJECTIVESBUILD BRAND AWARENESS AMONG POTENTIAL

CUSTOMERSRETAIN, SURVIVE AND SUSTAIN STRATEGY.PUBLICIZE CHANGES IN MARKETING STRATEGYTO HELP IN GETTING SOCIALLY ACCEPTABLE TO COMBAT OR NEUTRALIZE COMPETITORS'’

ADVERTISING EFFORTS

ADVERTISING PLAN:CONTD…SELECTING MOST EFFECTIVE MEDIA VEHICLE

ADVERTISING PLAN:CONTD..MEDIA OPTIONS

COUPONS DIRECT MAIL OUTDOORS IN STORE FLYERS LOCAL TV MAGAZINES NEWSPAPER RADIO SIGNAGE YELLOW PAGES CORPORATE TIE-UPS FOR PROMOTION

ADVERTISING PLAN:CONTD…LOCATION FOR OUTDOORS

SR. NO. LOCATION TYPE SIZE COST(IN RS)

1 SANCHETI CHOWK FL 40×40 1950002 BOPODI CHOWK FL 20×20 155000

3SENAPATI BAPAT ROAD FL 30×15 120000

4 KHADKI BAZAAR FL 40×25 1900005 KARWE PUTLA FL 40×25 1900006 SINGHAD ROAD FL 30×30 1650007 PASHAN ROAD FL 20×10 80000

8 BAVDHANBUS

SHELTER 5×5 35000

9 JM ROAD FL 20×20 12500010 KOREGAON PARK FL 20×10 80000

11 MODEL COLONYBUS

SHELTER 2×2 5500

12PUNE STATION ST STAND FL 20×20 150000

ADVERTISING PLANBUDGET FOR PRINT MEDIA

NEWSPAPER REACH(IN

LACS)

RATES(RS/SQCM)

EFFECTIVE COST PER

CUSTOMER

PERCENTAGE EXPENDITURE

TOTAL EXPENDITURE

TIMES OF INDIA 2.4 523 0.22 30% 210300

HINDU 1.84 450 0.16    INDIAN EXPRESS 1.8 250 0.14 10% 70100

NAVABHARAT TIMES

2.2 242 0.11    

MAHARASHTRA TIMES

2.5 387 0.15 10% 70100

SAKAL TIMES 4.2 980 0.23 35% 245350LOKMAT 1.8 850 0.47 10% 70100ECONOMIC TIMES

0.4 103 0.26 5% 35050

BUSINESS STANDARD

0.12 105 0.88    

Profit and loss account

year 1 year 2 year 3 year 4

Income

particulars Amount Amount Amount Amount

Sales

sales 12000000 15000000 20000000 30000000

other income 0 0 0 0

Total Income 12000000 15000000 20000000 30000000

Expenditure

purchase 3000000 4000000 5500000 7500000

salary

Unskilled worker 216000 240000 260000 300000

skilled worker 2340000 2440000 2540000 2740000

carriage inward 20000 22000 25000 30000

stationery 22000 25000 28000 30000

Installation Charges

rent 6000000 6600000 7200000 7800000

electricity 80000 0 0 0

Telephone 20000 0 0 0

Telephone expenses 30000 30000 32000 35000

maintenance 50000 60000 70000 80000

Building 30000 35000 40000 45000

Lighting Expenses 10515 10515 10515 10515

Insurance 50000 50000 50000 50000

Adversitment 2000000 3500000 3500000 2500000

selling and distribution expenses 720000 730000 750000 800000

Miscelleneous Expenses 100000 100000 100000 100000

Total 14688515 17842515 20105515 22020515

PBDIT -2688515 -2842515 -105515 7979485

PBT -2688515 -2842515 -105515 7979485

Tax @ 30% 0 0 0 2393845.5

PAT 0 0 0 5585639.5

Net Profit/Loss -2688515 -2842515 -105515 5585639.5

SUMMARYSTRATEGIC IMPLICATIONDIFFERENTIATED MARKETING• RETAIL STORE LOCATION• NEAR A LARGE POPULATION BASE – PUNE, AUNDH WITH A

POPULATION SIZE OF 3.5 LACS• GOODS AND SERVICES MIXED• DISTINCT GOODS & SERVICES AIMED AT EACH MARKET SEGMENT .• PROMOTIONAL EFFORTS TO BE UNDERTAKEN.• DIFFERENT MEDIA AND MESSAGES FOR EACH SEGMENT.• PRICE ORIENTATION FOR EACH SEGMENT.• HIGH, MEDIUM AND LOW DEPENDING ON MARKET SEGMENT STRATEGY• STRATEGIES ADOPTED AND DIRECTED AT DIFFERENT GROUPS.

IT WILL BE A TOTAL UNIQUE SHOPPING EXPERIENCE TO SHOP AT MOTHERCARE