Cutlus Capstone Write Up

8/2/2019 Cutlus Capstone Write Up

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AREPORT

OFCASPSTONE PROJECTON

Cutlus ( A cosmetic retail store in Wannabuy Mall)

Submitted By: Submitted To:Bhuwan Grover (A10)Sheetal Goswami(A06)Syed Mubeen(A07)Q1003


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CONTENTS

1.Introduction

2.Retail Industry Analysis

3.Cosmetic Industry Analysis

4.Market Feasibility

5.Business PlanMarketing PlanOperations Plan

HR Plan

Financial Plan


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INTRODUCTION

In this project we have to make a development business plan for the store named called

CUTLUS in wannabuy mall under the university premises which is opened by the university forthe students residing in hostels.

Cutlus is speciality store which deals in branded cosmetics likechambor,maybelline,Lotus,jewels, and loreal etc.

Our task is to promote the available products,launching new products as per the need andrequirement of the hostlers girls for which we conduct a market feasibility survey And alsowork on the other business activities like marketing, finanace operations and HR so that we canprovide good services with the branded high quality products.

We are thankfull to the Head of department Mr . Sandeep Vij Sir who give us this opportunityand also to our Mentor Miss.Neha Bhardwaj Mam for guiding us.


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INDIAN RETAIL INDUSTRY ANALYSIS

Retailing in India is gradually inching its way to becoming the next boom industry. The wholeconcept of shopping has altered in terms of format and consumer buying behavior, ushering in arevolution in shopping. Modern retail has entered India as seen in sprawling shopping centres,

multi-storeyed malls and huge complexes that offer shopping, entertainment and food all underone roof.

Shopping has become a hobby for the new generation. Thanks to rapid urbanization andemergence of malls at an ever increasing speed in every upcoming city, retailing has grown intoone of the largest sectors in the global economy and a booming industry in the present century.

Retailing involves a direct interface with the customer and the coordination of businessactivities from end to end- right from the concept or design stage of a product or offering, to itsdelivery and post-delivery service to the customer. Retail industry has contributed to theeconomic growth of many countries and is undoubtedly one of the fastest changing anddynamic industries in the world today.

Retail is a vital part of the business industry that involves selling products and services toconsumers for their individual or family uses. It is a vertical and people-oriented businessindustry. Retail business in India boomed in the 80's and within a short span of time, Indianretail industry has been rated as the fifth most attractive, emerging retail market in the world.Indian retail industry accounts for over 10 percent of the countrys GDP (Gross DomesticProduct) and around nine percent of employment. It is expected to grow at a compounded rate

of over 30 per cent over the next five years.

The Indian retail industry is on the verge of a revolution! Market liberalization and increasinglyassertive consumers are sowing the seeds of a retail transformation that is bringing biggerIndian and multinational retailers on the arena. Major retailers are entering this advancingmarket and retailing as an industry is coming alive in India! A sustained growth in the incomeand purchaising power of the Indian people has given a significant boost to the Indian retailindustry.

There has been a significant change in retail trading over the years, a transition from traditionalretailing to organized retailing. The business worth of Indian retail at present is more thanUS$400bN; by 2015 Indian retail business will be worth more than US $ 720 billion. Witharound 13% contribution to the GDP and 9% employment of the national workforce, retailing isundoubtedly a strong pillar of the Indian economy and a sector which is offering hugeopportunities.


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The fast evolving Indian organized retail scenario is looking forward to many strong regionaland national players emerging across formats and products categories. Most of these players arenow gearing up to expand far more rapidly than the initial years of their start-ups. Most haveregained/improved profitability after going through their respective learning curves. Indianconsumers too, are rapidly evolving and accepting modern formats overwhelmingly. They areshifting from simple living to luxurious living patterns. The Indian women who were confinedto their homes till the recent past are now becoming independent thereby presenting more

opportunities to the retailers.

INDIAN COSMETICS INDUSTRY

The Indian cosmetics industry, which witnessed a strong growth in the recent years, hasemerged as one of the markets holding immense growth potential. With the rising beautyconcerns among both men and women, the Indian cosmetics sector would continue to expand

remarkably in near future. New product launches catering to consumers' growing requirementswould fuel growth in the industry, for which the future outlook seems exceptionally bright.

According to our new research report "Indian Cosmetic Sector Analysis (2009-2012)", theIndian cosmetics sector industry holds promising growth prospects for both existing and newplayers. In 2010, the industry registered impressive sales worth INR 288.7 Billion (US$ 5.8Billion). Rising purchasing power and fashion consciousness have been driving the sector,wherein the players are investing heavily into promotional activities to increase consumerawareness. With these, the Indian cosmetic industry is estimated to grow at a CAGR of around22% during 2011-2014.

Observing the key trends, our research found that companies have been offering specializedproducts to generate additional revenues, and opting for online retailing to attract newcustomers. Cosmeceuticals and Nutricosmetics are one of the few emerging trends in the Indiancosmetics market, which has also been expanding its footprints to smaller cities and rural areas.

Our study not only incorporates a thorough research and coherent analysis of the industry, butalso provides segment-level analysis and emerging trends, which would shape the bright futureoutlook of the industry. The market has been growing with the betterment of economic

conditions. An insight into the competitive landscape and analysis inform about leading playersin the cosmetic market, their marketing strategies, and SWOT analysis.

The information regarding consumer behavior, particularly trends among men and ruralpopulation with respect to cosmetic products, has also been included in the report, which willhelp consultants, industry analysts, and vendors get in-depth knowledge about the industry andits performance.


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Market Feasiblity

We conduct a feasibility test to know our prospective customers which are hostlers girls of lovely professional university

Target market-Lpu Girl StudentsSample Size-52

Responses-52

Questions in Questionnaire

Collection of data

Analysis and Interpretation of data

Suggestions

Questionnaire Part

Do you use beauty products?How frequently you use these products?

How much you spend on them in month?

rate these points for selecting the products on Brand, quality and Price

From where you buy these products?

Which beauty products you use and how frequently?

Have you visited the wannabuy ?

Which u prefers price quality etc?

Data Collected PartThis part contains the responses received from the girls in LPU in which 100% females use the beauty

products where 46% vote for creams and 13% use lipsticks, lip liner &gloss. Nail paints and Eye shaders arealso used at sometimes but not so regularly, only on some special occasions and in a less quantity also.

60% people use these products daily in which 1/3 population of girls use these products when they have to

go outside and minority uses at some special occasions. Girls are more diverted towards quality of

product, and then they consider the importance of price and brand.

Most respondents prefer LAKME which may be of their effective advertisement and best quality

products.Majority of girls use these products at a moderate rate and also these products perhaps take atleast a month to finish. Girls buy these products at their hometown during vacations, they use these

products slowly then they prefer to buy at lifestyle when the stock finishes.

Majority of the girls are aware about unicenter mall because they must have been there to look for the

quality and price of products. It is seen that price holds an importance for girls that is 44% respondents

(highest response) will purchase only at genuine rates.


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Graphical Interpretation

Do you use the beauty products ?

Yes 52 100%

NO 0 0%

Interpretation: This is obvious from the above question that 100% females in lpu use the

beauty products and as there are girls in lpu so these products are being used very frequently.If Yes Than Which Beauty Products you use ?

Foundation 0 0%

Creams 24 46%

Lipstics 7 13%

Nail paints 6 12%

Lip Liner & Lip Gloss 7 13%

eye shader 5 10%

Mascara 0 0%

Other 3 6%

Interpretation: There are 7 products and out of these 46% vote for the creams which implies thatmajority of girls in lpu use skin creams and after that lipsticks, lip liner &gloss these are used atequal rates 13% but are not used so regularly. Nail paints and Eye shders are also used at sometimes.

How frequently you use these products ?

Daily 31 60%

Outing time 16 31%

party time 5 10%

Other 0 0%

Interpretation: It is clear from the above responses that 60% people use theseproducts daily which means more than half population uses these products.


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While 1/3 population of girls use these products when they have to go outsideand minority uses at some special occasions.

rate these points for selecting the products - Price

Less Important 12 23%

Important 29 56%

Very Important 11 21%

rate these points for selecting the products - Quality

Less Important 1 2%

Important 20 38%


rate these points for selecting the products - Brand

Less Important 3 6%

Important 29 56%


Interpretation: From the above questions girls are more diverted towardsquality of product and then they consider the importance of price and brand .

Which Brand You Prefer?

LAKME 23 44%

Revlon 6 12%

Oriflame 3 6%

Loreal 3 6%

Chambor 0 0%

Maybelline 4 8%

Avon 4 8%

Mac 2 4%

Street Wear 1 2%


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Lotus 3 6%

Other 3 6%

Interpretation: From above we can see that most respondents prefer LAKME which may be of theireffective advertisement and best quality products.

How Frequently you buy these products?

Daily 3 6%

weakly 13 25%

Monthly 36 69%

Interpretation: from above it shows us that majority of girls use theseproducts at a moderate rate and also these products perhaps take atleast a monthto finish.

How much u expand on beauty products monthly?

100-500 22 42%

500-1000 24 46%

1000-1500 6 12%

1500-2000 0 0%

More Than 2000 0 0%

Interpretation: From above 46% expend upto 1000 at beauty products which means they usealmost every product of a brand at various times.


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From where u buy these products?

Lifestyle 13 25%

phagwara 7 13%

jalandhar 6 12%

Tuck Shops 11 21%

Take from home during vacations 14 27%

Other 1 2%

Interpretation: It is clear that girls buy their products at their hometown duringvacations and then use these products slowly and after that they prefer to buy at lifestyle

when the stock finishes.Do you visit the Unicentre mall?Yes 41 79%

NO 11 21%

Interpretation: Majority of the girls are aware about unicenter mall and have been their which means they

must have been their to look for the quality and price of products.

If yes, have you ever bought any cosmetics item from the mall?shampoo.......nonot yetnoNokajalnoyes, nail paint.yesNAIL PINTS,LIP

GLOSSNo.No.shampooNoyescreamsnoyesnono.no. till now onone... !!!!!! noyes, loreal nailpaints, eye kajalnono till now ihave not visitedno not yet...it is very costly according to student budgets.noyesyes i have bought many times Lip Liner &Lip Gloss , eye shader and Mascara.noyes i have bought eye shader from there.i have bought creams from there.noyano,i just visited thereyes i have bought creams from there.nono i did not buy anything from there.nonot at allyes i havebought nail paints.noneverYes.no i just visited ...

what creams and beauty products generally girls use and of which brand ?lakmebody lotion, lip gloss,kajals. compactlakme or revlonsunscreens and complexion enhancing creams...i use lotus

which is a very good brand.Girls generally use creams such as sunscreen, fairness cream and brands like Lakme, Avon

and Loreal.lakme.....creams,liner,kajal,nailpaints,lipgloss and brand name-loreal,lotus,lakme,pondsits not a generalthing..it depends upon personal choice and belief. sometimes a gal use one cream 4rm one brand and the other beautyproducts 4rm one/two brands.different brands.LAKME,PONDS,OLAY,GARNIER......MOISTURISERS,ANTIPIMPLE,FAIRNESS....Revlon, Lakme and L'oreal.


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U prefer to purchase from Unicentre Mall ifrequired products are available 11 21%

brands of your choice available 17 33%

products at genuine price available 23 44%

Other 1 2%

Interpretation: It is seen that price holds an importance for girls so that is 44% respondents will purchaseonly at genuine rates.

Any other suggestions for making our mall useful for us ?

noplz give another variety of like colorbar also, girla generally use this products.dng welgood quality products withgenuine price.Products at genuine price and good quality products should be made available to us.quality , andquantitymake price more reasonable apart 4rm d hi-fi brands it wil b good if ayurvedic products of brands like HIMALAYAand Eraser are made available in the mall.more cosmetic brands should be kept thereINCREASE VARIETY............Pleaseensure to keep the products of Johnson and Johnson also.Please ensure to keep the products of Johnson and Johnsonalso.no thnksPro...

Number of daily responses


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Analysis PartOur analysis tells that girls are more diverted towards LAKME products especially creams category

which may be due to the genuine rates and quality of LAKME products.

When their monthly stock finishes, (because they bring on monthly basis) Lifestyle is their first

preference among the purchase options.

Majority of the girls have the awareness about the unicentre mall but they are not comfortable with

the variety of cultus due to the high rates and also brands of their choice are not available which is the

cause of low footfall inside the cultus.

Suggestions Part1. We need to organize the awareness campaign for the students about the products available in

Wananabuy also we can shift creams counter(core prod.) in Cutlus from general store.

2. We should provide low price brands like Lotus, Revlon, Avon, Nuyork, along with items sale by tuck

shops.

3. We should provide the youngster using products to increase the sales and should provide products

on discounted rates in initial stage to attract the students.

4. We can remove the Chambor and Maybelline counter, and replace it with LAKME counter

which will be appropriate for footfall increase.

5. And finally some discounts, offers, which can take the attention of youth.

Documents

Cutlus Capstone Write Up