A

PROJECT REPORT

ON

MERCHANDISING MIX ANALYSIS

FOR

THE LOOT (I) PVT LTDPUNE

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

RAJEEV MALANI

( BATCH - 2006-08 )

BRACT’s

Vishwakarma Institute of Management,

Kodhawa, Pune- 411014.

1

ACKNOWLEDGEMENT

Several persons have extended their helping hands in the

successful completion of this project report on “MERCHANDISING MIX

ANALYSIS”

First and foremost express my sense of gratitude to

Mrs. MANOJ JHA (Area Sales Manager) for having accorded me the

permission to undertake the project report in “THE LOOT (I) PVT LTD”.

Special thanks to Mr. PRASHANT SHINDE (Store Manager) for his

valuable guidance with dearest co-operation.

I also show my deepest gratitude to Prof. MAHESH HALALE for

his valuable suggestions, guidance and advice in bringing out this project

report.

My special regards to my friends who directly or indirectly helped

me in completion of this project report.

Finally I give immeasurable thanks to my parents and friends who

endured many evenings and weekends of solitude for the thrill of seeing the

project report. Much of the value of this report is due to their patience,

encouragement and love. But I alone bear the responsibility for any errors

between the covers.

Mr. RAJEEV MALANI

2

Contents

Chapter no. Title Page no.

1 Executive Summary 1

2 Objective and Scope of Project 4

3 Retail Industry profile 7

4 Company Profile 15

5 Theoretical Background 21

6 Research Methodology 26

7 Data Analysis 30

8 Findings 43

9 Recommendations 46

10 Limitations 48

11 SWOT Analysis 50

12 Annexure 52

13 Bibliography 56

3

EXECUTIVE SUMMARY

4

Executive Summary

The follow The following report deals with the project undertaken for THE

LOOT (I) PVT LTD, PUNE. In today’s market THE LOOT is expanding and gaining

kind attention in the retail industry. THE LOOT is a Discount store concept and also

known as Value store. This store in pune deals mainly in –

1. Foot wears

2. Apparels (formals, casuals, party wears, sports)

3. Accessories (belts, caps, traveling bags)

THE LOOT as said before a value store have a tagline as “GREAT STEALS ON BIG

BRANDS.” Today this value store can find out in most of the major cities.

The project study is conducted in Retail because, under modern

marketing concepts, marketing activities are centered on the customer. Most producers do

not sell their goods directly to the customers. Between them stands a set of intermediaries

performing a variety of functions. These intermediaries constitute a marketing channel or

distribution channel. Amongst these intermediaries Retailing is the most dynamic

activity. Retailing as a part of Supply Chain Management helps the consumer to satisfy

there wants. There is considerable growth in number and size of retailing organization.

Nature of retailing depends on two main considerations viz. Value Addition & Providing

Utility.

The subject of project study is “Merchandising Mix Analysis” in

the store and the reason behind the choice of this subject is, there’s a lot of ignorance on

what merchandising is and how it helps in brand building. Though no research has been

done on the impact of merchandising on purchase decision, it is believed that at least two

third of buying decision are made at the point of sale. In apparel and dress accessories,

there is much higher awareness of merchandising and it’s utility. Merchandising is a

ability to visually demonstrate and display a product, show its features and properties and

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bring out some of its esoteric. Going by recent trends merchandising is gaining

importance each day.

The study is carried out in the Pune Store situated at Tilak Road. The

primary objective of the study is comparing the merchandise available in the store with

the customer’s expectations & competitor’s merchandise. The secondary objective of the

study is to find out the quality, quantity, size and requirement of the product in the store

so as to meet the customer needs. .A systematic approach was used to achieve the above-

mentioned objectives. To minimize the error and gather the correct information, direct

observation technique was used and structured a questionnaire for customers.

6

OBJECTIVE AND SCOPE OF THE PROJECT

7

Objective & Scope of Project

Title of the Project :

The project is carried out in THE LOOT, a retail Value store.

And the title of the project is “Merchandising Mix Analysis”

Objectives of the project :

1) Primary Objective :

The primary objective of the project is “To find out the

merchandise available in the store is as per customers expectations or not

and weather it have the capability to compete the competitors.”

2) Secondary Objectives :

i) About Visual Merchandising?

ii) To find out the Quality of product available?

iii)To find out the Variety of product available?

iv) To find out the Sizes of product available?

v) To find out the Quality, Variety and Sizes of the products

available are matching with the customer’s requirements?

vi) To find out in which size ratio the products are coming for sale

and which size ratio is actually needed or demanded?

vii)About In- seasonal Management

8

Area of Operation :

The Operating area for this project study is “All sections in the store”. It includes

Apparels, Footwears, Accessories for Men , Women and Children.

Location:

The project study is carried out in THE LOOT store located at TILAK

ROAD, PUNE.

9

RETAIL INDUSTRY PROFILE

10

Retail Industry Profile

Indian retail industry is going through a transition phase. Most of the retailing in our

country is still in the unorganized sector. The spread out of the retails in US and India

shows a wide gap between the two countries. Though retailing in India is undergoing an

exponential growth, the road ahead is full of challenges.

What is retailing?

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off

or sheds a small piece from something. Retailing is the set of activities that markets

products or services to final consumers for their own personal or household use. It does

this by organizing their availability on a relatively large scale and supplying them to

customers on a relatively small scale. Retailer is a Person or Agent or Agency or

Company or Organization who is instrumental in reaching the Goods or Merchandise or

Services to the End User or Ultimate Consumer.

SCENARIO OF RETAILING IN INDIA

Retailing is the most active and attractive sector of last decade. While the retailing

industry itself has been present since ages in our country, it is only the recent past that it

has witnessed so much dynamism. The emergence of retailing in India has more to do

with the increased purchasing power of buyers, especially post-liberalization, increase in

product variety, and increase in economies of scale, with the aid of modern supply and

distributions solution.

Indian retailing today is at an interesting crossroads. The retail sales are at the highest

point in history and new technologies are improving retail productivity. though there are

many opportunities to start a  new retail business, retailers are facing numerous

challenges.

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KEY CHALLENGES:

1) LOCATION:

"Right Place, Right choice"

Location is the most important ingredient for any business that relies on customers, and is

typically the prime consideration in a customers store choice. Locations decisions are

harder to change because retailers have to either make sustainable investments to buy and

develop real estate or commit to long term lease with developers. When formulating

decision about where to locate, the retailer must refer to the strategic plan:

* Investigate alternative trading areas.

* Determine the type of desirable store location

* Evaluate alternative specific store sites

2) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind of merchandise and nothing

is more central to the strategic thrust of the retailing firm. Merchandising consists of

activities involved in acquiring particular goods and services and making them available

at a place, time and quantity that enable the retailer to reach its goals. Merchandising is

perhaps, the most important function for any retail organization, as it decides what finally

goes on shelf of the store.

3) PRICING:

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and

its interaction with other retailing elements. The importance of pricing decisions is

growing because today's customers are looking for good value when they buy

merchandise and services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer the prime mover"

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"Consumer Pull", however, seems to be the most important driving factor behind the

sustenance of the industry. The purchasing power of the customers has increased to a

great extent, with the influencing the retail industry to a great extent, a variety of other

factors also seem to fuel the retailing boom.

5)  SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities, which are carried out in the

business. It is one of the challenges that the Indian retailers are facing. The cost of

business operations is very high in India.

PRESENT INDIAN SCENARIO

* Unorganized market: Rs. 583,000 crores

* Organized market: Rs.5, 000 crores

* 5X growth in organized retailing between 2000-2005

* Over 4,000 new modern Outlets in the last 3 years

* Over 5,000,000 sq. ft. of mall space under development

* The top 3 modern retailers control over 750,000 sq. ft. of retail space

* Over 400,000 shoppers walk through their doors every week

* Growth in organized retailing on par with expectations and projections of the last 5

Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06

* Major players

- Food and grocery

- Fashion

- Others

- Food world

- Shoppers' Stop

- Vivek's

- Subhiksha

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- Westside

- Planet M

- Nilgris

- Lifestyle

- Music World

- Adani- Rajiv's

- Pyramid

- Crossword

- Nirma-Radhey

- Globus

- Life spring

TRADITIONAL RETAIL SCENE IN INDIA

India is the country having the most unorganized retail market. Traditionally the retail

business is run by Mom & Pop having Shop in the front & house at the back. More than

99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased

as per the test & vim and fancies of the proprietor also the pricing was done on ad hock

basis or by seeing at the face of customer. Generally the accounts of trading & home are

not maintained separately. Profits were accumulated in slow moving & non-moving

stocks which were to become redundant or consumed in-house. Thus profits were

vanished without their knowledge. The Manufactures were to distribute goods through C

& F agents to Distributors & Wholesalers. Retailers happen to source the merchandise

from Wholesalers & reach to end-users.  The merchandise price used to get inflated to a

great extent till it reaches from Manufacturer to End-user. Selling prices were largely not

controlled by Manufacturers. Branding was not an issue for majority of customers. More

than 99% customers are price sensitive & not quality or Brand Sensitive at the same time

they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all

the commodities were on the scene including livestock. Bargaining was the unwritten law

of market. Educational qualification level of these retailers was always low. Hence

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market was controlled by handful of distributors &/or Wholesalers. Virtually there was

only one format of retailing & that was mass retail. Retailer to consumer ratio was very

low, for all the categories without exception. Varity in terms of quality, Styles were on

regional basis, community based & truly very low range was available at any given single

place.  Almost all the purchases / (buying) by mass population was need oriented & next

turn may be on festivals, Marriages, Birthdays & some specific occasions.

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair

of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair

of shoes for occasions is till date is a luxury for majority population except for those

living in Metros. Purchasing power of Indian urban consumer is very low and that of

Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches,

Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks.

However electronic & electrical home appliances do hold appropriate image into the

minds of consumers. Brand name does matter in these white goods categories. In the

coming times also majority of organized retailers will find it difficult to keep balance

with rest of the unbranded retail market which is very huge.

INDIAN RETAIL IS MOVING INTO SECOND GEAR

1) FIRST GEAR:

(Create awareness)

* New retailers driving awareness

* High degree of fragmentation

* Real estate groups starting retail chains

* Consumer expecting 'value for money' as core value

2) SECOND GEAR:

(Meet customer expectations)

* Consumer-driven

* Emergence of pure retailers

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* Retailers getting multi-locational and multi-format

* Global retailers evincing interest in India

3) THIRD GEAR:

(Back end management)

* Category management

* Vendor partnership

* Stock turns

* Channel synchronization

* Consumer acquisition

* Customer relation's management

4) FOURTH GEAR:

(Consolidation)

* Aggressive rollout

* Organized retail acquitting significant share

* Beginning of cross-border movement

* Mergers and acquisitions

Conclusion

For a start, these retailers need to invest much more in capturing more specific market.

Intelligence as well as almost real-time customer purchase behavior information. The

retailers also need to make substantial investment in understanding/acquiring some

advanced expertise in developing more accurate and scientific demand forecasting

models. Re-engineering of product sourcing philosophies-aligned more towards

collaborative planning and replenishment should then be next on their agenda. The

message, therefore for the existing small and medium independent retailers is to closely

examine what changes are taking place in their immediate vicinity, and analyze Whether

their current market offers a potential redevelopment of the area into a more modern

multi-option destination. If it does, and most commercial areas in India do have this

potential, it would be very useful to form a consortium of other such small retailers in

16

that vicinity and take a pro-active approach to pool in resources and improve the overall

infrastructure. The next effort should be to encourage retailers to make some investments

in improving the interiors of their respective establishments to make shopping an

enjoyable experience for the customer.

As the retail marketplace changes shape and competition increases, the potential for

improving retail productivity and cutting costs is likely to decrease. Therefore, it will

become important for retailers to secure a distinctive position in the marketplace based on

value, relationships or experience.

Finally, it is important to note that these strategies are not strictly independent of

each other; value is function of not just price, quality and service but can also be

enhanced by Personalization and offering a memorable experience. In fact, building

relationships with customers can by itself increase the quality of overall customer

experience and thus the perceived value. But most importantly for winning in this

intensely competitive marketplace, it is critical to understand the target customer's

definition of value and make an offer, which not only delights the customers but also is

also difficult for competitors to replicate.

 

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COMPANY PROFILE

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Company Profile

The year - 1997, the plan, to venture into advanced retailing techniques, the site – the

booming township of New-Mumbai. A young entrepreneur JAY GUPTA set his eyes on

apparel and footwear retailing.

This is when the idea of offering the best brands at the best prices surfaced. Soon The

LOOT took shape with its first store in the year 2004.

In a short span The Loot was nominated for the best value store in India in “India

Fashion Forum” 2005. And in 2006 the Loot was nominated in “India Retail Forum” for

the best value store in India.

“THE LOOT” is a multi-branded discount store, in Garments, Footwear and

Accessories offering customers a wide range of products with a minimum of 25% and up

to 60% discounts – throughout the year.

The Loot started off as a franchisee of various brands and soon moved to creating a chain

in the space of ‘ Value Retailing ‘. The Loot’s strength as a retailer lies in proper

procurement and an excellent supply chain management. This helps in getting better

pricing from the manufacturer and thereafter passing on the benefit to the consumer.

India offers tremendous business potential and hence The Loot have introduced the

concept of Value Retailing to cater to the growing needs for international brands at

attractive prices.

The Loot currently offers the right mix of formals, semi-formals, casuals, and

sports category of garments, footwears and accessories. It has recently also introduced

their kids section.

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The Loot currently operates 37 stores in cities like Mumbai, Navi-Mumbai, New-

Delhi, Hyderabad, Vizag, Pune, Surat, Nashik, Aurangabad. Shortly it is opening its

stores in cities such as Sonipat, Ludhiana, Mysore, Kalyan, Jabalpur, Bangalore, Baroda,

Kolhapur, Raipur. The store ended up last year ( 2006 ) with a topline of 35 crores and

planning to end the current financial year at about 70 crores. To propel the growth of the

company and to move to the next level, they invested skillfully in IT and SCM. Their

focus is also on personnel training and great emphasis is being laid on preparing the back

end to take growth to about 100 stores by the year 2008-09.

Company Vision

We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Company Mission

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.

We shall infuse Indian and International brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

PARTNERS IN CRIME

Even in a short span of its operations The Loot can boast of the brands associated with it.

Adidas, Nike, Reebok, Red Tape, Lee Cooper, Pepe Jeans, Levi’s, Benetton, Tuscan

Verve, Spykar, Wrangler, Lee, Eccentrics, Provogue, Arrow, Allen Solly, Van Heusen,

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Kappa, Cat, Jinni n Jony, Lilly Put, Reebok, SF, Indian Terrain, Puma, Fila, Skechers, W,

Ragz Jeans, Black Berrys, ID and Jealous among others.

HIDEOUTS

The Company has three store formats as below;

1. Shop-in-Shop : 2000 sft

2. Signature Shop : 5000 sft (available for franchising)

3. Mega Store Shop : 15000 sft ( Surat, Mumbai, Bangalore)

Currently there are 37 stores spread all over India. The Loot has also signed an additional

1 lac sft with stores in Bangalore, Mysore, Chandigarh, Aurangabad, Kalyan, and

Ahmedabad.

FUTURE PLOTS

The Loot aims to triple its growth in the next two years. It has built a platform to catapult

the business at an exceptional level. Covering major markets with its franchisee network

is what will make this goal easily achievable. With the future positively heading towards

Organized Retailing, The Loot has just the elements required to make it an exceptional

success story.

The professionals of The Loot have mapped the growth close to 100 crores by 2008-09.

INFORMER NETWORK

The Loot has signed the world renowned Bad Man GULSHAN GROVER as its

BRAND AMBASSADOR, or should we say the Don of the Loot. With his established

image he adds a clear character to The Loots image. Advertising, PR activities, Store

21

openings and promotions revolves around him. The master is at work. A chance to encash

on the bad man image of Gulshan Grover, sharing tricks of the trade for the benefit of the

consumer. The creative concept revolves around the villainous character that has a knack

to loot and who makes the leading international and domestic brands available at

discounted rates for the consumers. Through this campaign, The loot aims to leverage the

negative shades of Bad Man to lure the consumers by influencing their desire for ‘ Great

Steals on Big Brands’.

CELEBRITY CONNECTION

The Loot has obtained a positioning of ‘Great Brands at Great Prices’.

The brand has been built over a period of three years with a marketing strategy focusing

on PR complemented by Advertising.

The PR campaign worked at different levels:

- Launch stage : Awareness and Brand Building.

- Product PR : Excitement around the new product offerings.

- Brand PR : Brand profiling stories, events using celebrities.

The media mix addresses the youth on one hand and young professionals who aspire for

international brands at affordable price.

FOR US CUSTOMER IS A KING

Because the Customer:-

Because the customer has a need,

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We have a job to do.

Because the customer has a choice,

We must be the better choice.

Because the customer has sensibilities,

We must be considerate.

Because the customer has an urgency,

We must be quick.

Because the customer has high expectations,

We must excel.

Because the customer is unique,

We must be flexible.

Because the customer has influence,

We have the hope of more customers.

Because of the customer,

We exist.

23

THEREOTICAL BACKGROUND

24

THEREOTICAL BACKGROUND

TOPIC: MERCHANDISING MIX ANALYSIS

Merchandise are the different variety of goods which retailer brings for selling the same to the end user or ultimate customer. The success of retailing organization mainly depends on the decision retailer has taken about –

What is to be Bought? In what Quantity? And

At what Time?

It is said that ‘Goods well bought are half sold’. Thus selection and presentation of merchandise is the key source of difference which allows one retail store to differentiate itself from others. The different variety of merchandise bought by the retail organization has to reflect different market segment needs and wants.

It is observed that merchandise management is very complex procedure and it requires very systematic approach with due considerations to the concept of marketing. For successful merchandise management optimal levels of stocks are to be ensured to improve cash flow and profitability.

Merchandising is planning, buying & selling merchandise.

There are 7 rights involved in

1) Right PRODUCT

2) Right PLACE

3) Right QUALITY

4) Right QUANTITY

5) Right PRICE

6) Right MIX / ASSORTMENT

7) Right TIME

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Merchandise Mix :

Merchandise Mix represents the full range of mixtures of products a retailer offers to a target consumer.

Variety: No. of different product lines stocked in store.

Assortment: No. of different product items within in the particular product line

Support: Planning & control of the no of units the retailer should have in hand to meet the expected sale of particular product.

For example we can divide merchandise in following manner:

Merchandise Mix

Variety

Assortment

Support

26

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VISUAL MERCHANDISING

Selling goods using visual stimuli is an age-old practice, but with increasing growth of

retail industry, the art, or arguably the science of visual merchandising has come to

occupy a new found fancy. Marketers, especially retailers, consider it as an inseparable

part of their overall branding effort. But even as it continues to grow, like all other

branding efforts, the understanding of its impact and effectiveness is still in its infancy.

Store design plays a crucial role in branding; it reflects and reinforces the corporate

image. It tangibalizes what the retailer claims to be. The sights, sounds, smells and any

other aspect should, therefore reflect what the retail brand is about and what its attributes

are, yet, very often the layout of the store doesn’t reflect the true identity of the brand.

Sometimes it is in stark contrast with what the retailers image is with its customers,

created through its advertising. Here visual merchandising chips in, it creates a

connection between the company’s image and the look of the store.

Retailers resort to Visual Merchandising in the pretext that if not anything else the

display would get the curiosity incited and people would come to see the display and

might buy a thing or two. Even though Visual merchandise has been affected in today’s

slumping times, its importance hasn’t diminished. The advertising wisdom that says

“companies that advertise even in slumps times, reap its benefits later” holds true for

Visual Merchandise also. Companies, which continue to put money into Visual

Merchandising, would gain competitively as well as monetarily in due course of time.

Like advertising, like fashion and all other creative services, Visual Merchandising also

invites skepticism, but who doesn’t want a treat for there eyes. As it turns out, Visual

Merchandising might not be the blockbuster drug for brand ailments, but it sure is a

vitamin that is essential for brand health.

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RESEARCH METHODOLOGY

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Research Methodology

Meaning:

In common language research refers to a search for knowledge. We can also

define Research as a scientific and systematic search for pertinent information on a

specific topic. Thus research is an original contribution to the existing stock of

knowledge making for its advancement. It is a purposive investigation. The main aim of

research is to find out the truth which is hidden and which has not been discovered yet.

Research process involves defining the problem, formulating the hypothesis, organizing

and evaluating the data, deriving inference and conclusion after careful testing.

Definition:

According to bery “A careful investigation or inquiry specially through search for new facts in any branch of knowledge”

Redman and mory defined research as “Systematized effort to gain new knowledge”

For every comprehensive research, a proper research methodology is indispensable and it has to be properly conceived.

Methodology:

1. DATA TO BE COLLECTED

Data includes facts and figures, which are required to be collected to achieve

the objective of the project. In order to determine the merchandise available in the store is

as per customers expectations or not and weather it have the capability to compete the

competitors, the information needed to be collect can be classified into following two

types-

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A. Primary Data: The data that is collected at hand and for the first time

or to particularly fulfill the objective of the project and happen to be original in nature is

known as the primary data. These type of data include –

The primary data were collected through observation of day to day available and arriving

merchandise and customers preference. An questionnaire also prepared to know the

quality and variety of available merchandise and customers level of satisfaction.

B. Secondary Data: Secondary data are that type of data, which are already

collected, available, analyzed, or assembled by someone else. And need not to collected

from outside. These types of data were –

a. Company profile

b. Daily Sales Report

c. Competitors knowledge

The aforesaid data were collected through Internet and company’s financial reports, newspapers, and interior products magazines.

2. DATA COLLECTION METHOD

For given project, the primary data was more significant. This

type of information gathered through survey technique, which is the most popular and

effective technique for correct data collection. The survey was completed with the use of

questionnaires and observations.

a) Questionnaire for customers

b) Observations

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The questionnaire is present further in the annexure.3. SAMPLING

Sample is the small group taken under consideration from the

total group. So I tried to collect information from every kind of customer coming in The

Loot Store.

Calculation of sample size is based on random sampling technique for the project.

Sample Space – The Loot (Pune)

Samples – Customers Sampling Technique – Random Sampling

Sample Size – 150 customers

4. DATA EVALUATION

The extensive data collected through the questionnaires was evaluated to arrive at the

market size, market potential and the market share of the company. This compilation was

put into the charts for getting the information at a glance and easy availability for ready

reference.

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DATA ANALYSIS

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1. What makes you to shop at THE LOOT?

31%

29%

19%

12%

9%

Discounts

Price

Quality

Variety

Service

From above data it clear that 31% of the customers are attracted towards THE LOOT

because of attractive discounts and 29% because of price factor.

Discounts Price Quality Variety Service

31 29 19 12 09

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2. How do you find the Variety of Merchandise in our store?

19%

42%

28%

11%

Excellent

Good

Average

Poor

From above chart it clear that 42% of the customers are finding Variety of Merchandise

Good but at the same time 11% and 28% of customers are finding it poor and Average

respectively.

Excellent Good Average Poor

19 42 28 11

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3. How do you find the Quality of Merchandise in our store?

15%

49%

25%

11%

Excellent

Good

Average

Poor

It is noticed from the above chart that 49% of the customers think that the quality of

merchandise is up to the mark. Only 15% and 25% of customer think that the

merchandise is Excellent and Average respectively.

Excellent Good Average Poor

15 49 25 11

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5. How is your overall experience of shopping at THE LOOT ?

30%

43%

21%

6%

Outstanding

Good

Average

Poor

Huge number of customers felt pleasure shopping at THE LOOT. 30% of the customers

are having an outstanding experience with THE LOOT.

Outstanding Good Average Poor

30 43 21 06

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5. Is the Tag-line “GREAT STEALS ON BIG BRANDS” suitable for THE LOOT?

66%12%

22%

Yes

No

Sometimes

Maximum number of customers appreciated the tagline “GREAT STEALS ON BIG

BRANDS”.

Yes No Sometimes

66 12 22

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6. How is the Customer Service provided at THE LOOT?

27%

42%

22%

9%

Outstanding

Good

Average

Poor

42% customers said that the service provided is good, 27% customers said that its

outstanding and 22% customers said it average.

Outstanding Good Average Poor

27 42 22 09

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7. Are the Signage’s useful?

73%

5%

22%

Yes

No

Sometimes

No doubt signage’s available at THE LOOT are useful most of the time.

Yes No Sometimes

73 05 22

40

8. Does our Mannequin’s and Window displays attract you?

54%

18%

28%

Yes

No

Sometimes

Most of the customers are happy with the display at the store.

Yes No Sometimes

54 18 28

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9. Does our Offers pull you to buy?

53%

9%

38%

Yes

No

Sometimes

Most of the times customers are attracted towards the offers. This shows that there is

consistency in the offers that LOOT provides.

Yes No Sometimes

53 09 38

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10. Which stores you visit other than THE LOOT?

17%

27%

21%

14%

21%

Mega mart

Brand Factory

Pyramids

Shoppers Stop

Others

27% customers said that Brand Factory is the competitor for LOOT while 21% and 17%

are Pyramids and Mega mart respectively.

Mega mart

Brand Factory Pyramids

Shoppers Stop Others

17 27 21 14 21

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11. Is the product that you wish to purchase always available at the store?

35%

38%

20%

7%

Always

Most of the Times

Sometimes

Never

38% customers get the products most of the time while 35% customers get them on

demand.

Always Most of the Times Sometimes Never

35 38 20 7

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12. What do you think should be improved to make your shopping experience better at THE LOOT?

Taxes Deduction 39

New Stock Arrivals 28

More Branded Products 16

More Attendance of Staff 14

Nothing 3

39%

28%

16%

14%3%

Taxes Deduction

New Stock Arrivals

More Branded Products

More Attendance of Staff

Nothing

39% customers said that Taxes like VAT should not be charged extra, where as 28%

customers demanded new stock.

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FINDINGS

46

FINDINGS

1. It was found that Discounts and Price are the important factors amongst THE

LOOT customers. The target customers of LOOT are middle class people.

People make their purchase because of low prices and discounts what they

offer.

2. The Variety of available Merchandise in the store is quite good. But it was

also found out that there is plenty of scope to improve it.

3. Customers are not totally satisfied with the Quality of Merchandise available at

LOOT. Some customers are having problem with the Merchandise quality

available in the knit & Jeans section.

4. No doubt that THE LOOT is satisfying its tagline “Great Steals on Big

Brands.”

5. From the chart it was found out that in the field of providing customer service

THE LOOT is at its best. In this cutthroat competition customer service plays

very important role. And, it is also noticed that a proper customer service

helps a lot to make loyal customers and also to retain them.

6. It is a great thing to see that whatever signage’s they put are very much

effective and efficient. Signage’s are doing a good job by providing the right

path to the customers.

7. Window display in today’s competitive world got very much importance. As

the competition is increased, one can use display as a very effective tool to

attract the customers. Good thing about THE LOOT is they are utilizing this

tool effectively to attract the customers. But the mannequins are found not in

proper condition.

8. As the LOOT is well known for the offers what they provides. These offers

are found out very much attractive which helps a lot to pull the customers to

buy.

9. It should be prime objective of any organization to fulfill their customers

needs by providing them what they want. It was found out in LOOT that most

of the times customers get what they want but again there is need to improve

the category or product range to serve better.

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10. It was found out that the main competitors of LOOT in Pune are Brand

factory, Shopper stop, Pyramids and Mega mart.

11. Again the stock which is available at the store is quite old. There is high need

of new arrivals.

12. It was found out that the manager is not able to differentiate the slow moving

and fast moving products so there is no proper space management.

13. There is good co-operation among the selling staff but lack of motivation both

monetary and non-monetary.

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RECOMMENDATION

49

Recommendation

1. There is a strong need of motivation to the staff both monetary and non-

monetary

2. Proper attention should be given towards weekdays selling.

3. Many customers reject buying at last moment because of the taxes that are

added exclusively. These taxes should be included in the price that LOOT is

offering.

4. Goods should be order as per the capacity of the floor

5. Window display should be changed weekly or fortnightly to ensure freshness.

The display and layout should differentiate the store from competitors.

6. Floor have to be more neat and clean

7. The quality of the merchandise needs to be improved

8. Need to have a strong Leadership to control the staff activities and to get the

work done in time.

9. Should give proper knowledge about the features of newly coming products to

the sales staff

10. The Billing machine should be replaced by a new machine as it takes more

time for billing.

11. Customers complaints need to be taken more care of .

12. From our survey we found that Majority of the customer who visit to the store

is around 89% between the ages of 18 to 30.

So our present target customers are youth, so the product range should be

available as per the requirement.

13. Majority of the customer visited the store through the Word of mouth

publicity.

14. Majority of the customers are student, so we need rigorous Advertisement in

colleges to get more customers.

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Limitations

51

Limitations

The research project had some limitations that are listed as below.

TIME FRAME: The time allotted for the project was two months, was major

constraint for the study.

GEOGRAPHICAL COVERAGE: This study was limited to “Men’s Apparels”

in THE LOOT, Pune.

CASUAL RESPONSES: It was difficult to obtain data from each respondent

concerned. There are always some respondents that refuse to give any

information. Sometimes some respondents must have answered casually and did

not give correct information.

SAMPLE SIZE: The project was restricted for a particular sample size.

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SWOT Analysis

53

SWOT Analysis

Strength:

o The Loot made for actual Indian Middle Class Customers

o Attractive offers helps a lot to increase the sale

o 365 days discounts helps a lot to grab the customers into the store

Weakness:

o Poor Quality of Apparels

o Lack of latest variety

o Lack of Professional Management

Opportunity:

o Mall & Surrounding area at developing phase

o The Loot can stand strongly in tough competition of future by creating

Customer Retention through Customer Satisfaction

Threats:

1) Big players entry like Reliance, Wal-mart in retail sector

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Annexure

55

Annexure

Questionnaire for THE LOOT Customers

Name -: Age - : Below 18 18 – 30 30 -45 Above 45

Sex -: Male Female

Marital status-: Married Single

Occupation -: Business Profession

Student Other

Income -: Below 10000 10000 - 20000

20000 – 30000 Above 30000Contact No. -:

E –mail ID -:

1) What makes you to shop at THE LOOT?

Discounts Price

Quality Variety Service

2) How do you find Variety of Merchandise in our store?

Excellent Good

Average Poor

3) How do you find Quality of Merchandise in our store?

Excellent Good

Average Poor

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4) How is your overall experience of shopping at THE LOOT?

Outstanding Good

Average Poor

5) Is the Tagline “GREAT STEALS ON BIG BRANDS” suitable for the LOOT?

Yes No Sometimes

6) How is the Customer Service provided at THE LOOT?

Outstanding Good

Average Poor

7) Are the Signage’s useful?

Yes No Sometimes

8) Does our Mannequin’s and Window display attract you?

Yes No Sometimes

9) Does our Offers pull you to buy?

Yes No Sometimes

10) Which stores you visit other than Big Bazaar?

Brand Factory Shoppers stop

Mega Mart Pyramids Others

11) Is the product that you wish to purchase always available at the store?

Outstanding Good

Average Poor

57

12) What do you think should be improved to make your shopping experience better at Big Bazaar?

Reduction in taxes

New Stock Arrivals More Branded Products

More Attendance Nothing

58

Bibliography

59

Bibliography

Referred Books:

Sr. No. Name of Book Name of Author

1. Retailing Management …. Berman Evans

2. Retail Management …. Chetan Bajaj

3. Research Methodology …. C. R. Kothari

4. Marketing Research …. Rajendra Nargundkar

5. Marketing Management …. Rajan Saxena

6. Marketing Management …. Philip Kotler

Magazines

Sr. No. Name of Magazine

1. … Vikalp – August

2. … Retail Biz-July,August

Websites:

Sr. No. Web-site

1. … www.thelootstore.com

2. … www.knowabout.com

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