MAX RETAIL ORGANISATIONAL STUDY

7/23/2019 MAX RETAIL ORGANISATIONAL STUDY

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AN ORGANISATION STUDY AT MAX FASHION RETAIL

RV Institute of Management Page 1

CHAPTER 1

INTRODUCTION & INDUSTRY PROFILE

1.1 INTRODUCTION TO STUDY:

Background of the study Organisation is set of people working together for

accomplishment of a common objective. The roles and responsibilities are stated

clearly without any ambiguity. The positions occupied by different individuals are

presented in the form of organisation chart. Organizational structure is essential for

continuity of the mission & co-ordinates & controls the business activities.

Organization helps management to perform its actives effectively, optimum use of

technological improvement growth & diversification, creatively, effective use of

physical resources & HR.

Need for the Study:

This study is taken up to full fill the requirement of M.B.A degree course of

Bangalore University. The training is undertaken during July 2012 to August 2012

and the main purpose of the training is to know the application of the theoretical

aspects in our course in the corporate environment and gain first-hand experience and

expose ourselves to corporate policies, ethics, culture, practices, procedures, facts

about the work culture and policies of the company.

Objectives of the study:

To understand the organization structure or hierarchy of the company.

To understand the working of the various departments. To enable us to gain an insight into the corporate world. To understand the various responsibilities and duties carried out by each

department.


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1.2ABOUT INDUSTORY

Retailing in India is one of the business enterprises of its economy and accounts for

14to 15 percent of GDP. The Indian retail market is estimated to be US$450 billion

and one of the top 5 retail markets in the world. India is one of the fastest growing

retail markets in the world. Indias retailing industry is essentially owner mannered

small shop accounts for more than 90%.

In 2010, larger format convenience store and super markets accounted for about 4 %

of the industry, and these were only in large urban centres.

Until 2011, Indian central government denied foreign direct investment (FDI) in multi

brand retail, forbidding foreign groups from any ownership in supermarkets,

convenience store or any retail outlets. Even single brand retail was limited to 51%

ownership and a bureaucratic process.

In November 2011, Indias Central government announced retail reforms for both

multi brand stores and single brand stores. These market reforms paved the way for

retail innovation and competition with multi brand retails such as Wal-Mart, Carefourand Tesco, as well as single brand majors such as IKEA, NIKE and APPLE. The

statement flickers intense activism, both in opposition and support for the reform.

In December 2011 under pressure from the opposition, Indian government placed the

retail reforms on hold till it reaches a consensus.

InJanuary 2012, India approved reform for single brand stores welcoming anyone in

the world to innovate in Indian retail market with 100% ownership but imposed the

requirement that the single brand retailer source 30% of its goods from India. Indian

government continues the hold on retail reforms for multi brand stores.

India has a large and aspirational middle-class of 75 million households or 300

million individuals. Middle-class consumers want products which are value-driven.

India also has 500 million Indians under the age of 25. Young Indians are driving

purchases in mobile phones, fashion, accessories, food and beverages, quick service

restaurants, etc. Young Indians have access to more money than before and with this


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have come independence, aspirations and a demand for products. According to the

2010 World Wealth Report by Capgemini and Merrill Lynch Wealth Management, the

rise in the total number of millionaires (or Indians with investible assets, excluding

main residence and consumer durables, of more than US$ 1 million) grew almost

51%, the second fastest in the Asia Pacific region.

The earliest form of retail merchandising was the exchange of food and domestic

goods. Later came traders and peddlers, and by 3000 BC shops had become common.

During the Greek and Roman period, stores, including many specialty shops,

developed in the form of open booths, attracting large cosmopolitan crowds. After the

decline of the Roman Empire, barter became more important, but by the 14th century,

retail trade again assumed importance. Merchants, who in early times were viewed

with suspicion, rose in the social scale. Small stores, each carrying its special line of

goods, reached their peak in the 18th century. The wholesale business developed, and

travelling salesmen and standard prices came into general use.

In the late 19th century, the department store came into being, a large-scale general

store or a combination of single-line stores in which each line of merchandise is

operated as a separate department. Such stores provided the convenience of easy

accessibility to a large variety of goods. Modern department stores have been vital to

the development of shopping centres and malls, huge retail developments that contain

a wide variety of stores and services. Chain stores, though known in earlier times, first

developed their modern form in 1859, when the Great Atlantic and Pacific Tea

Company (A&P) standardized the quality and price of all merchandise sold in its

stores. Through central management, quantity purchasing, standardization of business

methods, and limited individual service, the chains are often able to sell their goods

well below prices charged by independent stores. Chain stores were once typified by

five-and-ten-cent stores (e.g., F. W. Woolworth Company, which operated such stores

until 1998), but the most common forms now are discount superstores (e.g., Wal-

Mart; see Walton, Sam), bakeries, tobacco stores, drugstores, groceries, and

department stores.

Consumers' cooperative stores (see cooperative movement) have been established in

Europe and the United States. Discounting merchandise became widespread after

World War II, and stores specializing in discounted merchandise have become the

fastest growing segment of the retail industry.


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The "discount club," where shoppers must pay a fee to become members and name-

brand products are sold at a discount (often packaged in multiples or very large

containers), became popular in the 1990s.

INDIAN RETAIL INDUSTRY

The India Retail Industry is the largest among all the industries, accounting for over

10 percent of the country GDP and around 8 per cent of the employment. The Retail

Industry in India has come forth as one of the most dynamic and fast paced industries

with several players entering the market. But all of them have not yet tasted success

because of the heavy initial investments that are required to break even with other

companies and compete with them.

The India Retail Industry is gradually inching its way towards becoming the

next boom industry. The total concept and idea of shopping has undergone an

attention drawing change in terms of format and consumer buying behaviour,

ushering in a revolution in shopping in India. Modern retailing has entered into the

Retail market in India as is observed in the form of bustling shopping centres, multi-

storied malls and the huge complexes that offer shopping, entertainment and food all

under one roof. A large young working population with median age of 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 factors in the

growth of the organized Retail sector in India. The growth pattern in organised

retailing and in the consumption made by the Indian population will follow a rising

graph helping the newer businessmen to enter the India Retail Industry. In India the

vast middle class and its almost untapped retail industry are the key attractive forces

for global retail giants wanting to enter into newer markets, which in turn will help the

India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent

annually.

Modern retail in India could be worth US$ 175-200 billion by 2016. The Food

Retail Industry in India dominates the shopping basket. The Mobile phone Retail

Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent

per year. The future of the India Retail Industry looks promising with the growing of

the market, with the government policies becoming more favourable and the emerging

technologies facilitating operations.


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India's overall retail sector is expected to rise to US$ 833 billion by 2013 and

to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per

cent. As a democratic country with high growth rates, consumer spending has risen

sharply as the youth population (more than 33 percent of the country is below the age

of 15) has seen a significant increase in its disposable income. Consumer spending

rose an impressive 75 per cent in the past four years alone. Also, organised retail,

which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per

cent to touch US$ 107 billion by 2013. India is the country having the most

unorganized retail market. Traditionally it is a family livelihood, with their shop in the

front and house at the back, while they run the retail business. More than 99%

retailers function in less than 500 square feet of shopping space. Global retail

consultants KSA Techno-park have estimated that organized retailing in India is

expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is

estimated at around Rs 900,000 crore, of which the organized sector accounts for a

mere 2 per cent indicating a huge potential market opportunity that is lying in the

waiting for the consumer-savvy organized retailer.

Purchasing power of Indian urban consumer is growing and branded

merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food

and even Jewellery, are slowly becoming lifestyle products that are widely accepted

by the urban Indian consumer. Indian retailers need to advantage of this growth and

aiming to grow, diversify and introduce new formats have to pay more attention to the

brand building process. The emphasis here is on retail as a brand rather than retailers

selling brands. The focus should be on branding the retail business itself. In their

preparation to face fierce competitive pressure, Indian retailers must come to

recognize the value of building their own stores as brands to reinforce their marketing

positioning, to communicate quality as well as value for money. Sustainable

competitive advantage will be dependent on translating core values combining

products, image and reputation into a coherent retail brand strategy. There is no doubt

that the Indian retail scene is booming. A number of large corporate houses Tata,

Raheja, Piramal and Goenka have already made their foray into this arena, with

beauty and health stores, supermarkets, self-service music stores, new age book

stores, every-day-low-price stores, computers and peripherals stores, office equipment

stores and home/building construction stores.

Today the organized players have attacked every retail category. The Indian retail


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scene has witnessed too many players in too short a time, crowding several categories

without looking at their core competencies, or having a well thought out branding

strategy.

1.3 TYPES OF RETAIL SHOPS

Department store:

A department store is a retail establishment which satisfies a wide range of durable

goods and products to the consumer's personal and residential needs and at the same

time offering the consumer a choice of multiple merchandise lines, at variable price

points, in all product categories. Department stores usually sell products including

clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting

goods, do it yourself, paint and hardware and additionally select other lines of

products such as food, books, jewellery, electronics, stationery, photographic

equipment and baby and pet needs. Certain department stores are further classified as

discount stores. Discount department stores commonly have central customer

checkout areas, generally in the front area of the store. Department stores are usually

part of a retail chain of many stores situated around a country or several countries.

Discount stores:

A discount store is a type of department store, which sells products at prices lower

than those asked by traditional retail outlets. Most discount department stores offer a

wide assortment of goods; others specialize in such merchandise as jewellery,

electronic equipment, or electrical appliances. Discount stores are not variety stores,

which sell goods at a single price-point or multiples thereof. Discount stores differ

from variety stores in that they sell many name-brand products, and because of the

wide price range of the items offered. Currently Wal-Mart, the largest retailer in the

world, operates more than 1,300 discount stores in the U.S. Target and Kmart are Wal-

Mart's top competitors. Wal-Mart as of 2004, owns 90% of the Asda chain of

supermarkets in the UK. As of 2008, the main rival to Asda is Tesco.

Warehouse stores:

A warehouse is a commercial building for storage of goods. Warehouses are used by

manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.They are usually large plain buildings in industrial areas of cities and towns and
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villages. They usually have loading docks to load and unload goods from trucks.

Sometimes warehouses are designed for the loading and unloading of goods directly

from railways, airports, orseaports. They often have cranes and forklifts for moving

goods, which are usually placed on ISO standard pallets loaded into pallet racks.

Stored goods can include any raw materials, packing materials, spare parts,

components, or finished goods associated with agriculture, manufacturing, or

commerce.

Variety stores:

A variety store or price-point retailer is a retail store that sells inexpensive items, often

with a single price for all items in the store. Typical merchandise includes cleaning

supplies, toys, household goods and gardening equipment. Formerly many variety

stores had lunch counters for inexpensive meals. In India example of variety store is

Usha product store.

Demographics:

Demographics are current statistical characteristics of a population. These types of

data are used widely in sociology (and especially in the subfield of demography),

public policy, and marketing. Commonly examined demographics include gender,

race, age, disabilities, mobility, home ownership, employment status, and even

location. Demographictrends describe the historical changes in demographics in a

population over time (for example, the average age of a population may increase or

decrease over time). Both distributions and trends of values within a demographic

variable are of interest. Demographics are about the population of a region and the

culture of the people there. Here it includes retailers that aim at one particular

segment.

Mom-And-Pop:

It is a retail outlet that is owned and operated by individuals which focuses on a range

of products that are very selective and few in numbers. These stores are seen in local

communities and often are family-run businesses. The square feet area of the store

depends on the store holder.

Specialty stores:
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Specialty stores are a typical specialist store gives attention to a particular category

and provides high level of service to the customers. A pet store that specializes in

selling dog food would be regarded as a specialty store. However, branded stores also

come under this format. For example if a customer visits a Reebok or Gap store then

they find just Reebok and Gap products in the respective stores.

General store:

General store a rural store that supplies the main needs for the local community

Convenience stores: is essentially found in residential areas. They provide limited

amount of merchandise at more than average prices with a speedy checkout. This

store is ideal for emergency and immediate purchases.

Hypermarkets:

Vast self-service warehouse-cum-retail outlet that combines the features of

a supermarket, department store, discount store, and specialty store in one location.

Also is called hyper mart. In commerce, a hypermarket is a superstore combining a

supermarket and a department store. The result is an expansive retail facility carrying

a wide range of products under one roof, including full groceries lines and general

merchandise. In theory, hypermarkets allow customers to satisfy all their routine

shopping needs in one trip.

Supermarkets:

A supermarket, a large form of the traditional grocery store, is a self-service shop

offering a wide variety of food and household products, organized into aisles. It is

larger in size and has a wider selection than a traditional grocery store, but is smaller

and more limited in the range of merchandise than a hypermarket or big-box shop.

Malls:

The Malls has a range of retail shops at a single outlet. They are loaded with products,

food and entertainment under a roof. In such type of retailer customer can get a lot of

products in a single shop. It is beneficial for the customer in term of time saving and

in term of money saving.

Category killers or Category Specialist:
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Category killers or Category Specialist are supplying wide assortment in a single

category for lower prices a retailer can "kill" that category for other retailers. For few

categories, such as electronics, the products are displayed at the centre of the store and

sales person will be available to address customer queries and give suggestions when

required. Other retail format stores are forced to reduce the prices if a category

specialist retail store is present in the vicinity.

E-retailers:

E-retailers customer can shop and order through internet and the merchandise are

dropped at the customer's doorstep. Here the retailers use drop shipping technique.

They accept the payment for the product but the customer receives the product

directly from the manufacturer or a wholesaler. This format is ideal for customers who

do not want to travel to retail stores and are interested in home shopping. However it

is important for the customer to be wary about defective products and non-secure

credit card transaction. Example: Amazon, Pennyful and eBay.

Vending Machines:

This is an automated piece of equipment wherein customers can drop the money in

the machine andacquire the products. It is more user friendly for the customer then

other types of the retails. In this customer can achieve his product easily. For Example

on the railway station by putting the coins and you can check your weight. And by

putting money in machine and get soft-drink product. Some stores take a no frills

approach, while others are "mid-range" or "high end", depending on what income

level they target.

Other types of retail store include:

Automated Retail stores:

Automated retail is the category of self-service, standalone kiosks in heavily

trafficked establishments such as airports, malls and resorts. The kiosks are usually a

turn-key solution with the necessary hardware, technology and services required to

maintain an automated, small-footprint retail store. Consumers select products using a

touch screen interface, pay for purchases using a credit or debit card and then the

product is dispensed, sometimes via an internal robotic arm in the machine.


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Big-box stores:

A big-box store (also supercenter, superstore, or megastore) is a physically large retail

establishment, usually part of a chain. The term sometimes also refers, by extension,

to the company that operates the store. The store may sell general dry goods in

which case it is a department store, or may be limited to a particular specialty (such

establishments are often called "category killers") or may also sell groceries, in

which case some countries use the term hypermarket.

Convenience store:

A convenience store, corner store, corner shop, or bodega (in Spanish-speaking areas

of the United States), is a small store that stocks a range of everyday items such as

groceries, toiletries, alcoholic and soft drinks, tobacco products, and newspapers.

Such stores may also offer money order and wire transfer services. They differ from

general stores and village shops in that they are not in a rural location and are used as

a convenient supplement to larger stores. A convenience store may be part of a

gas/petrol station. They may be located alongside busy roads, in urban areas, or near

railway stations or other transportation hubs. In some countries, convenience stores

have long shopping hours, some being open 24 hours. Convenience stores are usually

more expensive than regular grocery stores or supermarkets, which they make up for

with greater convenience by existing at more locations and having shorter cashier

lines.

General store:

A general store, general merchandise store or village shop is a rural or small town

store that carries a general line of merchandise. It carries a broad selection of

merchandise, sometimes in a small space, where people from the town and

surrounding rural areas come to purchase all their general goods. The store carries

routine stock and obtains special orders from warehouses. It differs from a

convenience store or corner shop in that it will be the main shop for the community

rather than a convenient supplement.


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1.4 PLAYERS IN MARKET

AV Birla Group:

Currently, there are over 575 supermarkets and 12 hypermarkets. All the supermarkets

are branded 'More.' and the hypermarkets are branded 'More Megastore'. The

company has over 11,000 employees and has a pan-India presence more supermarkets

are neighbourhood stores with the core proposition of offering value, convenience and

trust to the customers and averaging 2,500 square fit areas. The hypermarkets are self-

service superstores offering value and range in food and non-food products and

services at a single location. Hypermarkets are located in large catchment areas and

encourage mass consumption with discount prices and substantial depth of assortment

with an average store size of 55,000 square fit shopping area. Within a short span of

less than three years, more has more than one million members as part of its loyalty

programme. More has also launched a huge range of private labels in food and

grocery, staples and apparel which have already obtained a significant share of

category as well as salience with the consumer. It has a strong presence in apparel

retail and owns renowned brands like Allen Solly , Louis Phillipe , Trouser Town, Van

Heusen and Peter England. The company has investment plans to the tune of Rs

1000012000 crores till 2014.

Trent:

It is a subsidiary of the Tata group it operates lifestyle retail chain, book and music

retail chain, consumer electronics chain etc. Trent is a retail operations company that

owns and manages a number of retail chains in India. Established in 1998, Trent runs

lifestyle chain Westside, one of Indias largest and fastest growing chains of lifestyle

retail stores, Star Bazaar, a hypermarket chain, Landmark, books and music chain,

and Fashion Yatra, a complete family fashion store. Westside, the lifestyle retail chain

registered a turnover of Rs 4.58 million in 2014.

Landmark Group:

Founded in 1973 in Bahrain, the Landmark Group has successfully grown into one of

the largest and most successful retail organizations in the Middle East and India. An

international, diversified retail and hospitality conglomerate that encourages


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entrepreneurship to consistently deliver exceptional value, the Group operates over

1300 outlets encompassing over 20 million square feet across the GCC, India, Egypt,

Turkey, Jordan, Lebanon, Yemen, Sudan, Kenya, Libya, Nigeria and Pakistan. The

Group employs over 40,000 people and invested Rs. 400 crores to expand Max chain,

and Rs100 crores on Citymax 3 star hotel chain. Lifestyle International is their

international brand business. Landmark Group has successfully grown into one of the

largest and most successful retail organizations in the Middle East and India.

K Raheja Corp Group:

The K. Raheja Corp Group is recognized as one of India's biggest retail houses. The

groups flagship brand Shoppers Stop is spread across the country and has more than10n branches. Shoppers Stop is the only member of the Intercontinental Group of

Departmental Stores (IGDS). The IGDS is an organisation that consists of 30

experienced retailers from all over the world. K Raheja has a turnover of Rs8.75

billion which is expected to cross US$150 million mark by 2014. Segments include

books, music and gifts, apparel, entertainment etc.

Reliance:Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited under

Mukesh Ambani is Reliance Groups foray into organized retail. RRL is based on the

growth strategy of backward integration, and it generates inclusive growth and

prosperity for farmers, vendor partners, small shopkeepers and consumers. RLL is the

second largest retailer in India. Its retail outlets offer foods, groceries, apparel and

footwear, lifestyle and home improvement products, electronic goods, and farm

implements and inputs. The companys outlets also provide vegetables, fruits, and

flowers. Reliancehas more than 300 Reliance Fresh stores, they have multiple formats

and their sale is expected to be 120,000 crores.

Pantaloons:

Pantaloons Retail has 450 stores across the country and revenue of over Rs. 20 billion

and is expected to touch 30 million by 2010. Segments include Food & grocery, e-

tailing, home solutions, consumer electronics, entertainment, shoes, books, music &

gifts, health & beauty care services.


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Provogue:

Provogue was incorporated on November 1997 as Acme Clothing. It is engaged in

retailing of apparels and accessories in men and women segment. The company

launched its brand Provogue in March 1998.The name was changed to present one

on March 2005. Companys brands are retailed through leading national chain stores

such as Shopper's Stop, Lifestyle, Globus, and Westside etc. Total Income - Rs.

5842.972 Million (year ending Mar 2011) Net Profit - Rs. 334.054 Million (year

ending Mar 2011).

Raymond Limited:

Raymond was incorporated in 1925 and is a leading Indian textile major. The

company is part of global conglomerate Raymond Group. Raymond was the first in

1959 to introduce a polywool blend in India to creating the world's finest suiting

fabric the Super 240s made from the superfine 11.6 micron wool. Total Income - Rs.

19590.372 Million (year ending Mar 2012).

Arvind Limited:

Arvind Limited started in the year 1931. With the aim of manufacturing the high-end

superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring

spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in

those days to start along with spinning and weaving facilities in addition to full-

fledged facilities for dyeing, bleaching, finishing. Total Income - Rs. 36724.9 Million

(year ending Mar 2012).

Arrow Textiles:

Arrow Textiles was incepted in 1983 as Arrow Webtex. It has been manufacturing

elastic and non-elastic tapes. The company has grown steadily and gradually,

expanding its capabilities as a garment trim supplier by adding woven labels and

printed labels in 1992. Merchandisers require that suppliers of trims have many

qualities. To witness quick turnaround of samples, perfect colour matching, colour

fastness. Total Income - Rs. 296.647315 Million(year ending Mar 2011) .Net Profit -

Rs. 13.745621 Million (year ending Mar 2011).


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Subhiksha:

Subhiksha is a Chennai based decade old, no frills, food, grocery, pharma and

telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital

of Subhiksha. It has more than 500 stores across the country covering a retail space of

more than 1 million sq. ft. with a registered turnover of Rs 3.34 bn in 2006. It has a

planned investment of Rs. 300 Cr. to ramp up its operations to 1200 stores by 2008.

Bharti-Walmart:

In Bharti WalMart plans include US$ 7 billion investment in creating retail network

in the country including 100 hypermarkets and several hundred small stores. They

have signed a 50:50 percent joint venture agreement with Wal-Mart. Wal-Mart will do

the cash & carry while Bharti will do the front-end.

RPG group:

RPG group is One of the first entrants into organized food & grocery retail with Food

world stores in 1996 and then formed an alliance with Dairy farm International and

launched health & glow (pharmacy & beauty care) outlets. Now the alliance has

dissolved and RPG has Spencers Hyper, Super, Daily and Express formats and Music

World stores across the country. RPG has 6 lakh sq. ft. of retail space and has

registered a turnover of Rs 5.5 billion in 2012. It is planning to venture into books

retail, with the launch of its own bookstores Books and Beyond by the end of 2013.

An IPO is also in the offering, with expansion to 450+ Music World, 50+ Spencer's

hyper outlets covering 5 million sq. ft. by 2012.


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1.5 INDUSTRY VOLUME

The Indian retail industry is valued at $450 billion, with organized retail cornering 4.5

%. The organized pie is expected to see a growth at a CAGR of 37 %.

Size of the industry:

By 2014 the organized Retail Sector in India is expected to triple its size. The food

and grocery retail sector is expected to multiply five times in the same time frame.

The market size of Indian retail industry is about US $450 billion presently.

Output per annum

With growing market demand, the industry is expected to grow at a pace of 25-30%

annually.

Position in world market

Today India is the fifth largest in the world in terms of Retail Industry

Market capitalization

In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of

the Indian retail market is estimated to be around Rs. 22, 00,000 crore ($450 billion)

and the annual growth rate is 5.7%.


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1.6 CURRENT SCENARIO

The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years.

As a result, the consuming class with annual household incomes above Rs 90,000 is

expected to rise from about 370 million in 2006-07 to 620 million in 2011-12.

Consequently, the retail business in India is estimated to grow at 13 per cent annually

from USD 322 billion in 2006-07 to USD 450 billion in 2011-12,

The study also shows that the unorganized retail sector is expected to grow at about

10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496

billion in 2011-12.

The turnover for retail trade measured in current prices increased by 1.8 percent from

July 2011 to July 2012. Retail trade for consumables (such as goods sold in

department stores and specialized grocery stores) showed an increase of 2.4 percent

while durables (such as clothing stores, furniture stores, second-hand goods stores and

mail order houses) increased by 1.2 percent.

The retail trade sales volume increased by 0.3 percent from June 2012 to July 2012.

During the last three-month period (May to July), the sales volume decreased by 0.1

percent compared to the previous three-month period (February to April).

FDI in retail

The government has cleared the most awaited reforms allowing up to 51 per cent in

Foreign Direct Investment (FDI) in multi-brand retail, paving way for the

international multi-brand retailers interested to set up shop in India.


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CHAPTER-2

ORGNISATION AND PRODUCT PROFILE

2.1 Company History

About land mark group:

Founded in 1973 with a single store in Bahrain, the Landmark Group has successfully

grown into one of the largest and most successful retail organisations in the Middle

East. An international, diversified retail conglomerate that encourages

entrepreneurship to consistently deliver exceptional value, the Group operates over

1,200 outlets encompassing a retail presence of over 18 million square feet

across the GCC, Jordan, India, Egypt, Turkey, Lebanon, Kenya, Sudan, Yemen,

Libya, Nigeria and Pakistan. The Group employs over 40,000 employees.

The Landmark Group provides a value-driven product range for the entire

family through a diverse portfolio of core retail brands. Centrepoint (a destination

bringing together the Groups core retail brands), Babyshop (one-stop destination for

kids between 0-16 years) Shoe Mart (multi-brand footwear and accessories store)

Splash (multi-brand fashion retailer) Lifestyle (home dcor, fashion accessories,

beauty products, gifts and much more) Beautybay (beauty, health and well-being

store); Iconic (fashion, art, make up, salon, caf, and gadgets); Home Centre (a

complete home experience) Q Home Dcor, (premium home ware, furniture and

home accessories store), Candelite (snacks and confectionery store) and Emax (large

format electronics store). Landmark International (a division that includes

international franchise brands New Look, Koton, Reiss and Lipsy) Shoe Mart

International Footwear Division (a division that includes franchise footwear brands

Kurt Geiger, Ecco, Pablosky, Dumond, Nose, Radley, Foot Solutions, Steve Maddenand Carpisa). The Group also includes value retail brands such as Max (value fashion

and footwear store) and Shoexpress (value footwear and accessories store). The

offerings have evolved to be the preferred choice for consumers and positioned as

category killers.

An international retail company that grows with its customers, the Group continues to

capture greater market share in the Middle East. As it ventures into new markets, the

company remains focused on the needs of its customers. Quality for Landmark is not

a question of price. Across its retail concepts, the company strives to provide value at


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every price point, a strategy that has helped the Group achieve a consistent annual

growth rate of 23 per cent. The Group was awarded the Retail Company of the

Year at the Arabian Business Awards in 2010, Business Excellence award in the

Re-export category at the Mohammed Bin Rashid Al Maktoum Business Awards 2008

& 2010, Retailer of the Year at the Retail City Awards 2008, the Middle East Retailer

of the Year at the Retail Middle East Awards in 2007 and 2008, the Most

Admired Middle East Retailer of the Year and the Most Admired Retail

Company of the Year at the Retail Middle East Awards 2011. Besides retail, the

Group has also diversified into leisure, food and hotels segments with Fun City

(chain of indoor entertainment centres for children and teens); Foodmark (a division

that includes franchise and joint venture brands such as Mango Tree, Mango

Tree Bistro, Carluccios, Chi Zen, Maxs, The Meat Company, Tribes, La

Gaufrette, Bazerkhan and Ushna; as well as the home-grown brand Wild Ginger and

Zafran), Spaces (grooming and relaxation centres), Balance Wellbeing 360 (includes

holistic Wellness Club and Balance Caf), Citymax Hotels (comfortable budget

hotels) and Fitness First (fitness and wellness centres) and iCare Clinics (Primary

healthcare clinics for the family).The Landmark Group has also created a

comprehensive infrastructure including its own logistics and distribution division

to support its retail operations. Landmarks Logistics and Re-distribution Centre is

one of the largest privately owned and operated re-distribution centres in the Jebel Ali

Free Zone. It handles up to 56,000 containers on an annual basis and is spread across

a sprawling 3.1 million square feet, equipped with state-of-the-art systems.

A company that is founded on sound ethical fundamentals, the Group also seeks

opportunities to contribute to the societies and communities where it operates

Responsibility (CSR) is not merely about charity, but also about playing a more

responsible part in the society, be it within the organisation or towards its

stakeholders, environment, society and the world at large.

In 2009, the Landmark Group adopted diabetes awareness as part of its long term

CSR initiative. An initiative that aims to increase awareness amongst people regarding

the condition, Beat Diabetes was kicked off in the UAE. Today Beat Diabetes has

a presence seven countries namely UAE, Kuwait, Oman, Qatar, Bahrain, KSA and

India In 2011 over 35,000 people walked with the Group for the cause and free blood

glucose tests were conducted for over 40,000 people. In India, the Groups

Chairman, Micky Jagtiani initiated the LIFE Trust programme (Landmark


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International Foundation for Empowerment) in 2000. LIFE focuses on

rehabilitating the less fortunate through various programmes and initiatives such as

delivering non-formal education in rural areas, setting up health centres in urban

slums as well as training centres for the underprivileged youth and imparting life

skills training.

ABOUT MAX FASHION RETAIL

MAX is the international value fashion brand of the Dubai based Landmark Group.

The brand was launched in the UAE in May 2004 with a unique concept of delivering

international fashion & value to the discerning shopper.

Max was introduced in India with its 1st store in Indore in 2006 offering apparel,

footwear & accessories for the entire family; for women, men, children including a

fashionable range for infants. With a great range of western & ethnic wear for the

young shopper, it makes a perfect shopping destination for people for all age groups.

At MAX, shoppers can expect the latest in international fashion from around the

globe & an excellent range to choose from; all of this offered at great prices in a

world class shopping environment. Max retails its own label merchandise of in house

designs and planned colour palettes for the season. Every season it introduces a fresh

collection of international designs specially customized to the Indian market. The

brand adapts to the changing needs of the shopper every season and accordingly

introduces new designs, silhouettes & fabrics. Today, MAX is the largest value

fashion brand in the Middle East with over 200 stores across 15 countries. In India,

the brand in the next 2 years, will take its current store count of 40 to 75.Max offers

fashion clothing, footwear, accessories and household products at amazing value, all


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under one roof Launched in UAE in May 2004, Max is today the largest value fashion

retail chain in the Middle East. Max caters to the mid-market section of the

population. With 114 stores across UAE, KSA, Jordan, Kuwait, Bahrain, Qatar,

Oman, Turkey, Egypt, Yemen & India, MAX plans to expand its network in more

potential markets within the Middle East & beyond. With stores that typically

measure 18,000 - 30,000 sq. ft., Max retails private label clothing for men, women

and children as well as footwear and home accessories. A great shopping experience

with fashionable products at superb value is an assurance that makes Max customers

"Look good. Feel good."

CSR (Corporate Social Responsibility)

Max along with its parent company (landmark) come together as and force, to make a

difference in peoples live, supporting landmark group sponsorship at breast cancer

awareness campaign across its entire store in UAE. Max retail helped spread the

message providing details of tree screening. While raising money for a local breast

cancer support group. A gesture that sow max and landmark group bond with the local

community while doing its share for global awareness about breast cancer.

Adding support and individual level, every staff member on the shop floor as well as

the corporate office supported breast cancer badges and pushed the sale at the badges

to raise as much money and increase awareness of the campaign.


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Max India Proposition

Key Facts about MAX India:

Landmark Group (Dubai) launches the first Max Store at Indore in March2006

Contemporary fashion at affordable prices. International design & ambience. Average Store size 18,000 sq. ft. Family store with core Target audience between 18- 35 yrs.

22 stores functional

2.2 VISION AND MISSION OF THE COMPANY

Vision

To create a truly global brand that provides growth opportunities for the company and

its employees, whilst achieving its goal of becoming the number one value fashionretailer across the Middle East & India.


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Mission

Be a market leader in the field of value retailing. Provide fashionable products at affordable prices. Be innovative, cost effective and globally competitive. Exceed our customers expectations. Provide opportunities of growth for our employees.

Core Values

Constant focus and development on the product & value offered. Continuous improvement of the customers shopping experience. Commitment towards staff training & development. Encouraging open work culture.

2.3 MILE STONES OF COMPANY

IN YEAR 06-07 Max started and in that year the sale was 27 cr and from then to now

in YEAR 11-12 the sales are estimated to be Rs. 650 cr.

One Million Sq. Ft (Retail Space) Rs. 1,057 Cr. Sales Sell thru 92% (Post EOSS) LFL Target 30% Sales Mix 93% from fresh season 8 new stores in AndhraKarnataka Region 4 each in Andhra & Karnataka


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2.4 PRODUCT AND SERVICE PROFILE

Max Retail operation area is Retail in garment product like Western wear collection,

Ethnic collection, Kids Wear collection, Means Wear collection, Foot Wear collection,

Accessory and Concessionaires items are available in max retail store. In Max Retail

4th block Jay Nagar total products are arrange according to the customer need and

according to the Marketing Department product promotion and strategy.

WESTERN WEAR DEPERTMENT ETHINIC DEPARTMENT KIDES WEAR DEPARTMENT MEANS WEAR DEPARTMENT FOOT WEAR DEPARTMENT ACCESSORIES CONCESSIONAIRIES

According to these department products are arrange in sub department. And these

categories are also helpful for the customer selection of the product.

WESTERN WEAR DEPERTMENT

In western Wear department items available are:

SPORTY (Sports T-shirts and Track pants) these are product of Max, Jockey,Kappa, FAME and Denizen Company.

YOUNG/SLIM (T-shirts/shirts, Trousers & Skirts) for the young age groupfrom 16 to 26 years. And Company is max.

CORELINE/COMFORT (T-shirts/shirts, Trousers & Skirts)

LINGERIE ZONE (Inner Wear) (Bra & Panty) NIGHT WEAR (Gowns, Sets, Knit Top, Chemise) DENIM ZONE (Denim Bottoms, T-shirts, Shirts)

ETHNIC DEPARTMENT

In Ethnic wear department products are regard to the festival and tradition. And on the

time of festival season product sales are generally higher then rest of period.


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FUSION (Zone) - Skirts (long and short),Kurti, Short Kurta TRADITIONAL (Zone)medium kurta , long kurta , salwar ,chudidar

KIDSWEAR DEPARTMENT

In kids wear department have one of the best collections of garment. Many times this

department has been appreciated by the higher authority of Max Retail. And kids wear

department always have attraction point for the customer. In kids wear department

products are arranged based on the not on the size but on base on the age group. Age

group is starting to 0 to 3 month infant to 8 to 14 years boys and girls. These products

are presented through planogram and in planogram product are based on story like

sporty and angel story. These product are belongs to Max brand product.

INFANT BOYS (ZONE) T-shirts, Shirts, Trousers, Denims 2-8 BOYS (ZONE) T-shirts, Shirts, Trousers, Denims 8-14 BOYS (ZONE) T-shirts, Shirts, Trousers, Denims INFANT GIRLS(ZONE) T-shirt, Shirt, Trousers, Skirts, Denims 2-8 GIRLS (ZONE) T-shirt, Shirt, Trousers, Skirts, Denims

8-14 GIRLS (ZONE) T-shirt, Shirt, Trousers, Skirts, Denims

MENS WEAR DEPARTMENT

Formals (zone) shirts & trousers Semi formals (zone) shirts and trousers Casual non denim (zone) t-shirts/shirts/trousers/cargos Denim (zone) denim jeans/t-shirts/shirts, jackets Inner wear briefs and vests Active wear/sports wear shorts/jackets

FOOT WEAR DEPARTMENT

In foot wear department products are from Max company product and some of less

popular brand like 360 company product.

MENS Shoes (Formal, Casual, Sports) Sandals, Slippers LADIE High Heel, Medium Heels & Flats, Sports & Casual Shoe


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KIDS Infants, Girls & Boys Shoes and Sandals HOSIERY Socks / Shoe Polish / Shoe Brush Shoe Horn

ACCESSORIES

Accessories mainly comprise of:

Necklace Bracelet Earring

Anklets Clutches Clips

Caps Gift Items Bags

Albums Photo Frame Ties

Leather

CONCESSIONAIRES

These are brands like Peter England, John Players, Bossini, Levis, Jockey, Etc., which

form part of MAX stores offerings.

MAX SUB DEPARTMENTS

Mens Wear:

Mens Wear department is placed on third floor, and here all types of mans items are

available. Formals, Semi Formals, Fashion Formals, Casual Non Denim, Denim,

Active Wear, Inner & Sleep Wear

Kids Wear:

Kids wear department is placed on second floor and all kids and infants are available

on this floor (28 years (Boys & Girls).

Womens Wear:

Womens Wear department is placed on ground floorand all types of womens items

available on this floor. Core, Slim, Denim, Sports, Night Wear

Womens Ethnic Wear:

Ethnic Wear department is placed on first floor and all ethnic garments, Kids, Menes,

Ladies, Traditional, and Fusion available there.


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2.6 COMPETITORS ANALYSIS

Comparisons among the Retail Stores:

(Reliance, big bazaar and life style)

Reliance retail limited:

(RRL), a subsidiary of Reliance Industries Limited under Mukesh Ambani, is

Reliance Groups foray into organized retail. RRL is based on the growth strategy of

backward integration, and it generates inclusive growth and prosperity for farmers,

vendor partners, small shopkeepers and consumers.

RLL is the second largest retailer in India. Its retail outlets offer foods, groceries,

apparel and footwear, lifestyle and home improvement products, electronic goods, and

farm implements and inputs. The companys outlets also provide vegetables, fruits,

and flowers.

Subsidiaries & division under Reliance Retail are:

Reliance Fresh - Retail Outlets of fruits, Vegetables & Groceries

Reliance Digital - Consumer Electronics retail StoreReliance JewelsJewellery

Reliance Time Out - Lifestyle store of Books, Music, Movies, Toys, Gaming,

Fragrances, Stationery

Reliance Trends - Apparel and Clothing

During the year 2011, RRL opened 51 new stores pan India, taking the total to 100

stores across key markets in the country. Across India, Reliance Retail serves over 2.5

million customers every week. Its loyalty programme, "Reliance One", has the

patronage of more than 6.75 million customers. RLL has employee strength of above

5001


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Big Bazaar:

Type-hyper market Discount Store Value Segment Founded in 2001 Headquarters-

Jogeshwari, Mumbai Industry-retail Promoter-kishorebiyani Parent-Pantaloon RetailIndia Ltd Punchline- Issesastaauracchakahinnahin Currently 106 outlets Indias first

hypermarket retail outlet Approx. 50000 sq. fit

One stop shopping at discounted prices Provides best products at best prices Targets

price-conscious majority segment of customers Classless destination Big-sized Indian

Mandi- Big Bazaar. Started purely as a fashion format including apparel, cosmetics,

accessory and general merchandise First Food Bazaar format was added as Shop-In-

Shop within Big Bazaar in the year 2002 Big Bazaar and Food Bazaar -blend the look,

feel and touch of Indian bazaars with modern retail concepts of choice, convenience

and quality.

Wills lifestyle:

The ITC-owned premium apparel brand that has registered strong growth in

metropolitan and tier I cities, is now eyeing the smaller towns, especially the tier II

and III cities. The apparel brand plans to open 20 stores in cities such as Mangalore,

Mysore and Jodhpur in the next 12 months. The company has entered 10 new cities

including Jalandhar, Coimbatore and Guwahati in the last year-and-a-half.Currently,

Wills Lifestyle has around 80 stores, of which 30 were set up in the last 18 months.

Our plan is to make Wills Lifestyle products easily available to the customer, Atul

Chand, divisional chief executive ofITCs Lifestyle Retailing said.The company also

plans to develop different collections for different cities, bearing in mind the tastes

and preferences of customers in the cities they are set to enter.


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Comparisons:

Parameters Big bazaar Reliance Wills Life style

1. Parking Insufficient space sufficient space Multi-level parkingCreates a lot ofSpace for parking.

2. Parking feeRefundable

Yes Yes No

3. Brands Excellent collection ofbrands

Averagenumber of

brands

Large number ofbrands

4. collectionWithin brands

Updated collection ofmerchandise

OutdatedCollection

Not a Wide verity ofMerchandise

5. Information

Store layout

Layout blueprint

Display on each floor

Not available Detailed blueprint is

displayed at VariousPoints

6. Layout Plenty of spaceUnutilized

Service escapeis not properlyDesigned

Layout been Utilizedwell both Inside andoutside of the mall

7. Lighting It is excellent Average It is excellent

8. Billingcounters

Are many Avoid thewaiting time

Not a Manycounters itsleads toqueuing

Are many whichavoid the waitingtime

9. Security Efficient securityPersonnel with thoroughcheckingof bags

EfficientsecurityPersonnel

Efficient securityPersonnel


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2.7 POLICIES OF THE ORGANIZATION

Customer service

Return policy:

To ensure that the return of the purchased items is a smother process, werequest our customer to comply with the following terms.

Product will be valid within 14days of the purchase date of respective store. Bar code should be attached at the time of returning of product. In within 14days product quality should like resale.

Policy for the employee:

In max fashion company have many policies to directing and managing the total

entire organisation.

Working hours and weekly offs Leave policy Compensatory offs

Salary advance Punctuality & attendance Dress code Separation Employee gifts Employee discounts Medical claim policy Personal accident policy

The total working hours for all employees is 48 hours per week. The weekly off for

the store employee is one day every week by rotation from Monday to Friday.

Shifts Per Day: 2 Shifts Working Hours: 8 Hours Lunch Break: 45 minutes Tea Breaks (2): 15 Minutes each


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Leave policy:

All Employees in employment at the store level irrespective of the grades are eligible

to:

Casual leave Sick leave Earned Leave Maternity leave

Compensatory offs:

In case any of the employees had to work on his Weekly Off day/ National &Paid Holiday, he will be given a compensatory off on the day convenient to

both the company and the employee.

This compensatory Offs cannot be accumulated more than 3 and has to beavailed in the same month or in case of emergency in the following month.

Compensatory Offs will not be enchased. No Leave can be merged with Compensatory offs.

Salary advance:

All employees who have completed their specified period of probation and are on the

permanent rolls of the organization are eligible for salary advance.

In case of emergencies, the employees can be paid salary advance up to a maximum

of 75% of their last drawn net salary (take home pay) and the same will be recovered

from their salary within the next two months from which the advance is taken.

Employees must fill in the salary advance requisition form [available with ASM / SM]

The salary advance form has to be approved by the immediate superior and by the

concerned Store Manager, then should be forwarded to the H.R. dept for processing at

least a day ahead of the actual requirement.


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Punctuality & attendance:

Attendance has to be marked through Access Control Card and the muster roll

Repeated late attendance and absence from work would be considered unsatisfactory

performance. Continuous absenteeism for more than 10 days without prior approval

or information would be considered as voluntary resignation from the organization.

Dress code:

All the employees are expected to be formally dressed (R5 & below who are given

uniforms are to be in the same)

Separation:

An employee who wishes to resign from service may do so through a letter of

resignation to the Store Manager. The letter of resignation must be dated and should

cite reasons for the resignation and desired effective date of resignation. The

employee should give the organization the notice period or salary in lieu of notice as

applicable to their grade given below.

M1: 2 Month or 2 Month Gross Salary in lieu

R5 & R6: 1 Month or 1 Month Gross Salary in lieu R1 - R4: During Probation 15 Days or 15 Days Gross Salary in lieu/ On

Confirmation 1 Month or 1 Month Gross Salary in lieu

The services of an employee shall be terminated by the Organization withimmediate effect on grounds of violating organizations code of conduct in

which case no notice or salary in lieu of notice shall be given

Employee gifts:

When a confirmed employee is getting married or is blessed with a child, he/she will

be presented a gift worth Rs.500/- by the company.

Mode of Operation:

Keep the HR informed about your upcoming marriage at least a week ahead and the

arrival of the new tiny entrant in your family within a week


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Employee discounts:

All probationary & permanent employees of our organization will be eligible for the

15% discount on the purchase of merchandise at any of our stores.

The discounted value cannot exceed beyond the stated limits given below. Store Manager will be recording the same. Employees must show their identity cards or record their employee code at

the cash counter when the bill is being prepared.

GradeAmount

M1180000

R6100000

R565000

R430000

R325000

R211000

R110000

Medical claimpolicy

This policy aims at assuring best treatment in reputed hospitals without paying cash

and thereby reduces the financial burden of the employees

o R1- R5- Cover for Self and Spouse up to Rs 50,000o R6 - M2 - Cover for self and dependents up to Rs 1,00,000

Dependents include Spouse, Children and Parents only


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Personal accident policy:

This policy aims at extending financial assistance to the families of the employees at

time of distress such as accidents.

The Group personal Accident policy covers only accident related healthInsurance / death. The following are the sum assured for different category of

employees.


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2.7 COMPANY STRUCTURE / CHART


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2.8 MANAGEMENT OR BOARD OF DIROCTOR

Mr.Vasant KumarExecutive Director

Mr.C.S.ShekarSenior VP Operations

Mr. RamnathVP Supply Chain

Mr. Nilesh Joshi

Head Projects

Mr. Utkarsh Mohan

Head Sourcing

Mr. Raghu Rajagopalan

AVP Finance


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2.10 ACHIVEMENT AND AWARDS

Mr. Micky Jagtiani is chairman of the Landmark Group has won the"Entrepreneur of the Year" award at a ceremony held by Middle East

Business Achievement Award in November, 2008.

Lifestyle wins The Most Admired Retailer Award Department Stores,Images Retail 2008

Landmark Group wins Retailer of Year honor at Retail City Awards for2008

FUTURE PLANS OF COMPANY

To be among the top three retail players in three of the fastest growing retail markets

in the world (Middle East, India and China)

And in India open new 200 stores till 2014 is next plan.


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Max store location in India

Noida -Unitech Mall

Bangalore Commercial Street& SPAR, Oasis Centre,Indiranagar

FranchiseeStore: Calicut

Agra TajNagari

Mumbai - Vashi & Kharghar&Bhyander,Ghatkopar, Mulund,Goregaon

Lucknow E City

Ahmedabad Satellite town

Delhi Laxminagar &Rajouri

Indore MG Road

Hyderabad Banjara Hills & Begumpet

Pune Kalyaninagar


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3.1 HUMAN RESOURCE DEPARTMENT

Human Resource in Max Retail, among the various factors of retailing, which are

used in the organization, human resource is the most important. This is because the

efficient use of physical resources ultimately depends on how the human factor is put

to good use on various operations. Human resource management is a process of

bringing people and organizations together so that the goals of each one are met,

effectively and efficiently. It is responsible for people dimension of the organization.

The entire scope of functions relating to HR in MAX FASHION has been organized

under three levels, viz. Corporate, Regional and Project levels. The responsibilities

vary from level to level depending on the tasks assigned, accountability and

implementation criteria. An overview of these functions is hereby given in this

section.

Human Resource Department of MAX fashion is very dynamic. Employees are the

biggest strength and asset of any organization and the HR dept. realizes this very well.

This is very evident from the way the HR department handles all its employees. They

take utmost care to select, train, motivate and retain all the employees. They have

continuous developmental programmers for all the employees. Currently MAX

fashion Jay Nagar is employing 100 full time and 50 part time employees. There are

two shifts for the employees. The first shift employees arrive at 10.00 am in the

morning and leave at 5.00 pm in the evening, while the second shift employees report

at 2.00pm in the afternoon and leave at the time of Store closing (10pm). Sources of

Recruitment The following are the main sources through which MAX fashion recruits

its employee.

Consultancy Services:

For top level management, employees are recruited through private consultants. They

are usually appointed as Departmental Managers.

Walk-ins:

This is the main source through which MAX fashion recruits its employees. People

seeking job usually themselves approach the HR department for job vacancy.

Employees usually selected from this source are appointed at the entry level as team

members.


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Employee Referrals:

This is the other main source through which employees are selected. Candidates who

have given their previous employer as referrals are first interviewed and from their

previous employer, opinion is taken about their behavior and performance in the job.

If they receive a positive opinion from their previous employer they are selected.

Campus Recruitment:

Young people bring new ideas and fresh enthusiasm. Therefore MAX fashion visits

some of the reputed educational institutions to hire some of the most talented and

promising students as its employees. Selection Procedure The following is the

selection procedure that the HR department practices to hire its employees.

Interview:

For entry level jobs, the candidates are interviewed by a HR person. They are asked a

few basis questions about their education, previous work experience if any, languages

known etc. This is done to evaluate the candidates ability to communicate freely and

also other skills.

Psychometric Tests:

For higher and top level jobs, candidates are asked to answer a few questions which

basically test their sharpness, analytical ability, ability to handle stress, presence of

mind etc. This is done as Managers are required to work under stress all the time and

still maintain a cool head to make some vital decisions.

Group Discussion:

In campus recruitment students are involved in a Group Discussion, where they will

be given a topic on which the group has to deliberate, discuss and arrive at a solution

or a decision which is accepted by the whole group. Along with the G D they are also

given a written aptitude test. Finally a formal interview will be conducted to assess

the overall skills of the student. Induction: New employees selected will be given a 13

day induction and training program. They will be given information about the

companys business, different departments etc.

They will be informed of their roles, duties and responsibilities. They will also be

informed about the HR policies and rules of the company. The new employees will be


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on probation for a period of 6 months. After this period the HR period along with the

department manager will review.

The performance of the employee if the employees performance is good and

encouraging, the employees services will be confirmed. Compensation & Rewards:

The employees are rewarded suitably with attractive pay packages. The salary of an

employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual

bonus will be given at the time of Diwali. The employee dependents are also entitled

for medical treatment in recognised hospitals with cashless hospitalisation with which

the company has tie-ups. If a hospital is not recognised, the amount spent by the

employee will be reimbursed. Along with these all the employees are given a card

known as EmployeeDiscount card (EDC) through which they can buy any product

MAX FASHION at a special discount of 15-20%. Leaves and other rules: An

employee during his probationary period is entitled for 7 days of leave. A confirmed

employee is entitled for 30 days of leave in a year. There is only one type of leave the

employees can take which is known as All Purpose Leave (APL). All the employees

will be given identity cards which they have to wear and also swipe while at the time

of entering and leaving the Store.

Performance Appraisal:

The HR department conducts performance appraisal of all the employees annually in

the month of April. Based on their performance increments will be given in their pay.

In addition to this if an employee achieves or exceeds the target given to along with

their team members will be provided with attractive cash and other incentives.

Culture at MAX FASHION:

At MAX FASHION, Empowerment is what you acquire and Freedom at Work is what

you get. We believe our most valuable assets are our People. Young in spirit,

adventurous in action, with an average age of 27 years our skilled & qualified

professionals work in an environment where change is the only constant. Powered by

the desire to create path-breaking practices and held together by values, work in this

people intensive industry is driven by softer issues. In our world, making a difference

to Customers lives is a Passion and performance is the key that makes it possible. Out

of the Box thinking has become a way of life at max fashion and living with the

change, a habit. Leadership is a value that is followed by one and all at max fashion


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Leadership is the quality that motivates us to never stop learning, stretching to reach

the next challenge, knowing that we will be rewarded along the way.

The quest of creating an Indian model of retailing, max fashion Retail has taken

initiatives to launch many retail formats that have come to serve as a benchmark in

the industry. Believing in leadership has given us the optimism to change and be

successful at it. We do not predict the future, but create it. At max fashion Retail you

will get an opportunity to handle multiple responsibilities, and therein, the grooming

to play a larger role in the future. Work is a unique mix of preserving our core Indian

values and yet providing customers with a service, on par with international standards.

At max fashion you will work with some of the brightest people from different

spheres of industry. We believe its a place where you can live your dreams and

pursue a career that reflects your skills and passions.


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3.2 MARKETING DEPARTMENT

Marketing Department marketing concept is a customer orientation backed by

integrated marketing aimed at generating customer satisfaction as the key to satisfying

organizational goals. For a firm in order to implement the marketing concept it has to

focus its attention on the consumer, ascertain his/her needs, discuss and wants before

Every Brand appeals to individual customers in different ways. Good customer

service is the life blood of any business. Good customer service is all about attending

to existing and potential customers. This maintaining good relationship with the

customers is the key to business success and hence the concept relationship

marketing. Traditionally, marketers have located their target market segments,

presented their offer, and made the sales. It's always been a single step process.

Relationship marketing looks at customers and clients over a longer term. It takes into

account the lifetime value of a customer. Many experts think it costs anywhere from

six to ten times as much, to find a new customer, than to sell to an existing one. With

those financial realities in mind, the approach makes some sense, and some real

dollars. Relationship marketing is based on the idea that people prefer to do business

with people who they know and like. After all, it's easier to buy from a friend, than

from someone you've never heard of before. It's a matter of building trust.

It's said that people need to hear an offer at least seven times before they buy. That

concept certainly works against the single step marketing method. The Marketing

department is responsible for marketing of Max retails products through different

media like TV, radio, newspapers, banners, placards etc. The marketing department

has to decide and identify the most effective medium to attract the customers to Max

retail thereby increasing the sales.

The department has to design creative and attractive advertisements through which

the companys products can be promoted to the customers. The company has to visit

different companies and has to enter in tie-ups for all its advertisement campaign. The

marketing department also consists of another separate department which is known as

Visual Merchandising.

Visual merchandising is an art by which a retailer makes the store talk to its

customers. The colours, signage, lights, look and feel, everything is taken into

account. It is very important to figure out what is the story, the picture, the idea that is

being sold to the customers. Another concept that was incorporated in Max retail from


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the beginning was that of Category management as opposed to the brand

merchandising practice that is followed by many retailers. Category management is

based on the belief that a customer walks into a store looking for party shirt or a

formal trouser, rather than a particular brand. Therefore the store is designed

according to the categories like mens formal wear, womens western wear or a casual

wear, kids wear etc.

Within the organisation too, teams were divided according to the categories that they

managed, rather than the brands. Max retail wanted to have a complete bouquet of

products in each category at different price-points, design, fabric, size and colour. The

objective was to create traffic drivers within the Store rather than make brands

compete with each other. Focusing on categories also helped to achieve a level of

perfection within the specific segments. This department is responsible for the

attractive product arrangement in the Store with respect to their nature. The basic

function of this department is it divides the Store into some departments based on the

nature of the product and also within the department it decides how the products

should be arranged keeping in mind the customers taste. It also arranges the products

to attract the customers and also ensure easy availability of products.

MARKETING FUNCTION IN MAX RETAIL

Product management:

Product management is also an important strategy in MAX RETAIL. In the MAX

RETAIL each and every product are useful and run able product in the market.

Product would be changed if those are not sold on the market.

Brand management:

Brand management is also important strategy in the way of which brand should be for

sale in the store, because it is gives impact on the customer. Every brand has its

market value and it is also gives impact on the store image.

New product development:

understanding the market demand and based on that selection of new product

according to customer and according to the session demand.


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Promotion:

Promotion is one of the market mix elements. The specification of five

promotional mix promotional plan. These elements are personal selling, advertising,

sales promotion, direct marketing, and publicity.

To present information to consumers as well as others. To increase demand. To differentiate a product.

Advertising:

Advertising for existing product is one of the important functions for the marketing

department. Adverting of product is done through internal or external in social way.

Internal advertising is done by the product promotion and product awareness for

existing customer. And external advertising is take place through by external media

promotion. Such as TV, RADIO, HORDING, BANNER, PAPER, etc.

Marketing communications:

Marketing communications is the process of the filling the gap between customer and

organisation. In MAX RETAIL such types of activity is followed for Inner membercircle customer. Those customers are benefited through session offer and awareness of

upcoming offer information, which is provided by the MAX RETAIL.

Retail Planning:

Team is responsible for monitoring and executing the retail plans, budgetary control

to ensure the performance of the store are via a via the business target and to report

performances of products.

Visual Merchandising:

Team is responsible for planning, developing, establishing and maintaining efficient

display, signing and merchandise presentation program for the retail / service

activities within the stores. Concessionaire team is responsible for handling all brands

in MAX stores.


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Sales and sales promotion:

Sales and sales promotion is also marketing strategy for which is give a positive

result. Showing the higher sales report makes brand value in customer. And customers

are also gives attention on those types of retailor.

Services marketing:

Providing service for customer is also a marketing function .Which makes customer

satisfaction and attracts the customer for next time coming in the store.


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3.3 STORE DEPARTMENT

In any retail sector store department is very important department to maintained

whole entire outlay. Max retail outlay store department have many importance, total

shop is depend on the support of the store department. Store department control the

flow of the supply.

Functions of Stores Department:

Material Planning:

This consists of ascertaining the need of the various departments in the matter of

materials and stores and devising such policies that all the materials which have

constant demand and also some critical non-wearing materials are constantly available

so that they are supplied to the user departments without delay. This includes

classification / categorization of items, codification, designing of recoupment policies,

taking `make or buy' decision and also preparation of stores budget.

(b) Procurement of Stores:

This includes purchase of materials of required quality and quantity at reasonable

prices. This activity also includes development of sources of supply with due

emphasis to development of ancillary industries, small scale industries and indigenous

sources for imported items (import substitution). This also includes, maintaining

constant touch with the market to ensure steady flow of materials.

(c) Receipt & Inspection of Stores:

This includes taking delivery of materials from carrier, checking of quantity andquality and their account.


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(d) Store Keeping:

This includes stocking of materials in the wards, their handling, issuing on demand by

inventors and maintaining proper records.

(e) Distribution of Stores:

This includes timely dispatch and distribution of materials to various users by

adopting quick and right mode of transportation.

(f) Collection and disposal of scrap:

This activity is main revenue earning activity of Stores Department these days.

(g) Inventory Control:

Inventory control means keeping the overall costs associated with having inventory as

low as possible without creating problems. This is also sometimes called stock

control. It is an important part of any business that must have a stock of products or

items on hand. Correctly managing inventory control is a delicate balance at all times

between having too much and too little in order to maximize profits.

(h)Cost Reduction:

Management Department can contribute a lot on cost reduction. Some of the

techniques used for this purpose are:

1) Variety Reduction

2) Standardization

3) Value Analysis

4) Forecasting.


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ORGNISATION STORE STRUCTURE

Store Manager

Department Manager

Senior C R M

Cashiering /IT /

Inventory/VM

Asst. Store Manager

CRE


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3.4 FINANCE DEPARTMENT

Finance department is the backbone of Max. In Max finance department plays an

important role starting from procurement of material till the sales is made. Finance

department tries to ensure that adequate funds are for the resources that are required to

help achieve the organisational objectives. The department also ensures that the costs

are controlled, that there is an adequate cash flow, and also that it establishes and

further controls all profitable levels. A lot of transaction takes place every day at

Max.

Some of it he important functions performed at Max by finance department includes:

Obtaining needed inventory:

To satisfy customers, Max maintains inventories that involve a sizable expenditure of

funds. Finance department receives the trends and forecasted demand from marketing

department and budget the expanses and then make spending on it.

Financial planning & control:

At Max finance department involves in analyses short-term and long-term money

flows to and from the company. It helps the company to optimize profit and make best

use of money. In controlling process company compares its actual revenues, costs,

and expenses to those projected. Max holds at least monthly financial reviews as a

way to ensure financial control. Such controls provide feedback to help reveal which

accounts are varying from the fi

Documents

MAX RETAIL ORGANISATIONAL STUDY