Mm Report Part A

Executive Summary

As customers taste and preferences are changing, the market scenario is also changing

from time to time. Today’s market scenario is very different from that of the market

scenario before 1990. There have been many factors responsible for the changing

market scenario. It is the customers changing tastes and preference, which has bought

in a change in the market. Income level of the people has changed; life styles and social

class of people have completely changed now than that of olden days. There has been

a shift in the market demand in today’s world. Technology is one of the major factors,

which is responsible for this paradigm shift in the market. Today’s generation people are

no more dependent on hat market and far off departmental stores. Today we can see a

new era in market with the opening up of many departmental stores, hypermarket,

shopper’s stop, malls, branded retail outlets and specialty stores. In today’s world

shopping is not any more tiresome work rather it’s a pleasant outing phenomenon now.

The study is based on a survey done on customers of Mega Mart. Mega mart is a new

type of market, which came in to existence in India since 1996. It is a type of market

where various kinds of products are available under one roof. My study is on

determining the customer’s perception towards Mega mart and the satisfaction level of

customers in a Mega mart. The study will find out the current status of Mega mart and

determine where it stands in the current market.

This market field survey will help us in knowing the present customers tastes and

preferences. It will help in estimating the customer’s future needs and wants.

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INDUSTRY PROFILE

Retail is India’s largest industry, according for over 10 per cent of the country’s GDP and

around eight per cent of the employment. Retail industry in India is at the crossroads. It has

emerged as one of the most dynamic and fast paced industries with several players entering the

market. But because of the heavy initial investments required, Break even is difficult to achieve

and many of these players have not tasted success so for. However, the future is promising; the

market is growing, government policies are becoming more favorable and emerging technologies

are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry.

The whole concept of shopping of shopping has altered in terms in terms of format and consumer

buying behavior, ushering in a revolution in shopping India. Modern retail has entered India as

seen in sprawling shopping centers, multi-stored malls and huge complexes offer shopping,

entertainment and food all under one roof.

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

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

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


Retail and real estate are the two booming sectors of India in the present times. And if

industry experts are to be believed, the prospects of both the sectors are mutually dependent on

each other. Retail, one of India’s largest industries, has presently emerged as one of the most

dynamic and fast paced industries of our times with several players entering the market.

Accounting for over 10 per cent of the country’s GDP and around eight per cent of the

employment retailing in India is gradually inching its way toward becoming the next boom

industry.

As the contemporary retail sector in India is reflected in sprawling shopping centers,

multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof,

the concept of shopping has altered in terms of format and consumer buying behavior, ushering

in a revolution in shopping in India. This has also contributed to large-scale investments in the

real estate sector with major national and global players investing in developing the

infrastructure and construction of the retailing business. The trends that are driving the growth of

the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the

young working population. In India, hefty pay packets, nuclear families in urban areas, along

with increasing working-women population and emerging opportunities in the services sector.

These key factors have been the growth drivers of the organized retail sector in India which now

boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances,

Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many

more. With this the retail sector in India is witnessing rejuvenation as traditional markets make

way for new formats such as departmental stores, hypermarkets, supermarkets and specialty

stores.


COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY:

Megamart, a pioneer in the apparel value-retail segment, is today the largest value-retail

chain in India. By offering customers complete value-for-money through best of deals

throughout the year with some of the top international and national apparel brands all at fabulous

deals. The chain is spread over 60 cities with around 160 stores across the country giving you a

guarantee of mega brands and mega savings.

Setup in 1996, Megamart is a venture of the prestigious Arvind Ltd. In spite of being a

value retail chain, Megamart boasts of providing an excellent shopping experience. The brand

believes that 'no frills' ought not to come at the cost of great ambience, customer-friendly store

layouts and well designed interiors.

Mega mart is a pioneer in the apparel value-retail segment.Mega mart was started in

1994, is a venture by Arvind Mills Ltd. and z pioneer in the brand apparel segment in India.

Today it emerged into the largest value-retail chain in India. The retail chain has spread over to

60 cities with around 160 stores across the country.

Megamart arrived at a time when multi-brand discount outlets were still an unheard of

phenomenon and changed the rules of the retailing in India. By keeping overheads and other

costs to a bare minimum, it was able to pass on maximum savings to customers. Today,

Megamart is the largest player in this segment.

Megamart operates in 2 formats – Megamart stores that occupy around 2000 – 4000 sq.

ft. and BIG Megamart stores that occupy 30,000 – 60,000 sq. ft.

BIG Megamart stores have on offer more than 200 of the top international & national

brands with fabulous offers throughout the year. Add to this some of the best deals around and

you have a shopping experience that is truly unparalleled.

Megamart store network is growing at a rapid pace by adding 5000 Sq. ft. every week.

Arvind runs India's largest Value Retail Chain - Megamart. The MegaMart format offers a

unique and differentiated proposition to the consumers. It offers mega brands at amazingly low

prices and provides a retail experience of a high-end department store.


The Megamart stores range in size from 2000 sq ft to 65000 sq ft. The larger stores are

called Big Megamart and there are 6 such stores across Bangalore, Chennai, Pune and Mumbai.

The smaller formats spreads across the country are 205 in number. Megamart is expanding

rapidly and is expected to be a Rs. 1000 cr chain within the next two years

.

RETAIL MARKETING:

The word retail has its origin in French word Retailer and means “To cut a piece off’’ or

“To break bulk”. The term Retailing is defined as “All activities involved in selling goods and

services directly to final consumers for their personal and non-business use”. In simple terms, it

implies a first-hand transaction with customer. Retailing involves a direct interface with the

customer and the coordination of business activities from end to end right, from the concept or

design stage of a product or offering, to its delivery and post delivery service to the customer.

The industry has contributed to the fastest changing and dynamic industries in the world today.

Retailing, it is an emerging trend in the India and Chennai is not far behind which is also

witnessing the stupendous growth and opportunities presented by this sector. Growth of the city

economy and the migration from other cities has encouraged a number of developers to plan as

well as develop various mall projects.

BIG MEGA MART BANGALORE:

Big Mega Mart started 5 years before Bangalore. They run Big Mega Mart in mall

format. Like other big mega marts in India, all facilities and variety of commodities are also

available in Bangalore branch.

LOCATION:

Retailers feel the 3 keys to success are “Location, Location, and location”. Big Mega

Mart outlet is at _______________________________________________________________.


Location Evaluation:

Customers

General Area

Catchment area analysis

Specific Area

As of 2001 India Censusi, Bangalore had a population of 7lakhs. Many cine stars live

here. More Upper Middle Income people are living near Bangalore. That group of people wants

to avail the Branded items as such they like to have discount on them.

Bangalore now has Reliance Fresh, Spencer's Daily, More dot department stores. Around

2 km Mega Mart is the only big shopping store situated to purchase Apparels and Accessories.

Big Bazzar in Bangalore, which is situated 2.5 km from Big Mega Mart.

Why in Bangalore?

Big Mega Mart is opened in Bangalore because of increase in buying power of

Bangalore people.

Big Mega Mart Bangalore Incharge

Mr. _________

LAYOUT:

Big Mega Mart occupies 50,000 sq.ft area. They have own mall, which contains huge car

parking. Interior design is done by UK based designers - JHP Design Consultants.


There are 4 shopping floors in Mega Mart

Accessories

Ladies and Kids

Men’s

Youth and foot wears

Escalators are provided for customers in center of the building. Apart from that they

provide 2 Lifts and stair case for customer’s movement.


STORE IMAGE:

Since Store is located in main road, the image is clear to all passing that BSK

road. And there is restriction for Sign board. That Big MM memorize the Mega Mart

VISUAL MERCHANDISNG:

The above picture itself clearly shows the window display of the Mega Mart. The

Windows show the New arrivals, Exclusive items, Discounts, etc.,

Inside the store also some products are being displayed.


SIGNS:

Interior signage

- Promotional sign – Inside the lift and in side wall of the stairs

- Directional sign - Guides people in the store

- Information Sign – About discount they place small information board above the

sleek lined products and near the Lift about the types of products in each floor

Exterior signage

- Information about any discounts

- Information about the Diwali offer

About signage of Big Mega mart in Bangalore in Point of Purchase magazine


Guide signs in Escalator Floor wise information board near lift

FLOOR WISE LAYOUT:

Ground Floor – Accessories and main payment counter

First Floor – Women’s section and kids section


Second Floor – Men’s Section

Third Floor – Youth section (Men & Women), Accessories

Ground floor counter


Lightings inside the store


MERCHANDISNG BRANDS:

This Big Mega Mart store offers more than 200 of the top international & national

brands with fabulous offers throughout the year. Mega Mart offers huge quality brands like

Arrow, Lee, Wrangler, Flying Machine, Ruggers, Excalibur, Cherokee, Parx, Allen Solly,

Auburn Hill, Peter England, Excalibur, Elitus, Louis Phillipe, Van-Heusen, Arrow, Park Avenue,

Reid & Taylor, Belmonte, Shapes, Thomas Scott, Wills Lifestyle, John Players, and Notting Hill

etc.

Product wise Brands:

Accessories – Fashion Jewell, Watches, Sun glasses, Tie, Cosmetics

Womens – Ethinic wear, western wear, lingerie

Kids Apparel and toys section


Men’s Wear

PROMOTION:

Mega Mart’s tag line is shop for less. For promotional purpose they give pamphlets, hang

promotional tag over the head, above the rack, in the floor, side walls of stair case. They also use

OoH –out of home Ad channel to promote their products. TVs are placed in each floor which

shows Ooh Ads.

Festival offers:

This Diwali offer – Sixer Diwali (Buy 3 and get 3) valid till: Oct 17, 2012.For the

previous Diwali they gave Super Five offer. For the purchase of more than Rs.6999/- and

customer can get a free Cherokee sunglasses or Cherokee Bag worth Rs.2000/-

Flat – 50%, 60% off, Buy 2 and get 1(50% discount)

Other than these offers, Smart Tone cards are available in all time, get points while shopping and

get exiting prizes for those points. Smart tone - shop smart, save smart - only at Mega mart!


PROMOTIONAL PAMPLETS



Discount tag above the rack Promotion in side wall of stair case

Discount tag over the head and Ooh TV Discount tag in the floor

RATES AND DISCOUNTS:


For kids – starting from Rs.199

For ladies

Churidhar - Rs. 299 onwards

Trendy tops - Rs.499 onwards

Stylish Jeans - Rs.499 onwards

For Men

T-shirts – Rs.199 onwards

Cherokee Jeans – Rs. 799 onwards

Formal pant – Rs.399 onwards

Most of the Brands are of 50% or 60% off

FRANCHISEE:

To become a Franchisee, All the franchisee need is to have is an ability to invest 23-25

lakhs with about 1200-1500 sq.ft. of prime retail space across tier 2/3 towns.

EXTRA FACILITIES:

Availability of water near staircase in each floor

Rest benches

Trail room

Rest chairs

Emergency exit

Safety – Fire extinguisher, Automatic Smoke detector

Free walking aisles

Rolling carry bag

Free walking Aisles Rest Chairs near stair case & lift


NATURE OF BUSINESS CARRIED

A retailer or retail store is a business enterprise which sells primarily to the ultimate

consumers for non-business use. Mega mart is retail outlets where customer can purchase

different kinds of product. Different brands are available with same product category in business.

Mega mart is the flagship business of departmental stores. It retails a range of branded

apparel, footwear, sunglases, leather products, accessories, home products. .

Pioneer of modern retail in India, Megamart has been instrumental in bringing about the

retail revolution in India. A professionally managed and systems driven organization, Megamart

has always been attuned to evolving customers. The customers insights have enabled company to

service them better and fulfill aspirations. The company recently revealed a new logo, which

reflects the essence of the company’s new philosophy.


1931

The inception of Arvind Mills Limited at the hands of three brothers - Kasturbhai, Narottambhai

and Chimanbhai Lalbhai

1934

Arvind establishes itself amongst the foremost textile units in the country.

1980

Arvind records highest levels of profitability. The new strategy – ‘Reno vision’, points at

changing the business focus from local to global, towards a high-quality premium niche market.

1987-88

Arvind enters the export market for Denims with a dual focus - Denim for leisure and Denim for

fashion wear.

1991

Arvind emerges as the third largest manufacturer of denim in the world.

1997

India’s largest state-of-the-art facility for shirting, gabardine and knits is set up at Santej.

2005

Arvind creates a unique one-stop shop service on a global scale, offering garment packages to

reputed national and international customers.

2007

Arvind expands its presence in the brands and retail segment by establishing MegaMart – One of

India’s largest value retail chains.

2010

Arvind launches The Arvind Store, a concept putting the company’s best fabrics, brands and

bespoke styling and tailoring solutions under one roof. Arvind launches its first major Real

Estate projects. Arvind becomes one of India’s largest producers of fire protection fabrics..


Mission , Vision and Quality policy

VISION:

To serve that end, the corporate vision for Arvind states: 'We will enable people to

experience a better quality of life by providing enriching and inspiring lifestyle soluti ons'.

MISSION:

The underlying theme running across the broad spectrum of all business activities at

Arvind is that of enhancing lifestyles of people, across all diversities and demographics .

QUALITY POLICY:

Arvind Mills, the flagship company of the Lalbhai Group, is one of India's leading

composite manufacturer of textiles. Its headquarters is in Ahmedabad, Gujarat, India. It

manufactures a range of cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It is

India's largest denim manufacturer apart from being world’s fourth-largest producer and exporter

of denim.

PHILOSOPHY OF MAGAMART :

PHILOSOPHY WE BELIEVE In people and their unlimited potential. In content and

focus in problem solving. In teams for effective performance. In intellect & its power . WE

ENDEAVOUR To select, train and coach people to obtain higher responsibilities. To nurture

talent to build leaders for tomorrow's corporation. To reward, celebrate and activate all

intellectual business contributions . WE DREAM Of excellence in all endeavors. Of mutual

benefit and prosperity. Of making the world a better place to live in. We Make Things Happen.


PRODUCT /SERVICE PROFILE:

With the unparallel assortment of the leading international and national brands in clothing

For men, women and kids, accessories, cosmetics, footwear, home products and décor products,

AREA OF OPERATION:

Megamart is one of the leading retail stores in India. Currently megamart has ----- stores

across the country. Megamart has also begun operating a number of specially stores, namely

-----.Megamart retails a range of branded apparel and private label under the following categories

of apparel, footwear, fashion, jewelers, leather products, sunglasses, accessories and home

products.

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Put map n name the states

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OWNERSHIP PATTERN

Board of directors or DIRECTORS

MR. SANJAY S. LALBHAI (CHAIRMAN AND MANAGING DIRECTOR)

MR. JAYESH SHAH (DIRECTOR AND CHIEF FINANCIAL

OFFICER)

MR. PUNIT LALBHAI (EXECUTIVE DIRECTOR)

MR. KULIN LALBHAI (EXECUTIVE DIRECTOR)

OTHER DIRECTORS

Mr. Sudhir Mehta (Non-executive and Independent Director)

Dr. Bakul H. Dholakia (Non-executive and Independent Director)

Mr. Munesh Khanna (Non-executive and Independent Director)

Ms. Renuka Ramnath (Non-executive and Independent Director)


COMPETITORS

Retaial sector is a fast growing one. Hence megamart has to face a lot of competition

from organized as well as unorganized retail players. As India has opened the doors of

globalization and partially the foreign direct investments; Megamart is also facing threats from

foreign retail players as they come in collaboration with Indian companies. Megamart operates in

competitive environment. For each line business, they would face competition from established

national and regional companies

In the fashion segment, the company probably faces competition from shoppers stop,

Trent, Bigbazar, reliance trendz,

INFRASTRUCTURE

It has 6 di--------different departments. It include Men’s section, women’s section kids

section,……….. Megamart was the first few retailers to use scanners and barcodes and

completely computerize its operations.

An organization , whose average employee age is less than 28 years ,is ought to reflect

the kind of energy and enthusiasm that’s expected of it. Megamart-the pioneer in the retail space

does that quite well. Marked with open cubical and bright surroundings ,the office in the

Bangalore has very likeable environment.

Lovely fragrance at the entrance

Wall space utilized for mirror and print ads of the brand or the product near

Also utilized it by providing self’s and constructing trail room around it

Mirror finished style flooring

Escalators

No stacking below knee level

Apparel stacked in a unique style-one type and many sizes together in ascending

order


Awards / Recognition

First company to bring International shirt brand “Arrow” to India

First company to start dedicated “retail” outlets for Arrow brand.

Awarded various awards for Highest exports and ISO

Achievements

1987 - The largest zero discharge green effluent treatment plant in India. - Commitment to

greener world

1987 - First company to bring International shirt brand Arrow to India - First company to start

dedicated retail outlets for Arrow brand. - Awarded various awards for Highest exports and ISO

1989 - Largest denim & shirting in South Asia. - 3rd Largest denim capacity in the world 1997

First Indian company to verticalise the cotton textile business from cotton fields to apparel

retailing.

1997-1998 First company to introduce ERP SAP business solutions

2008 -Company launches 'Mega mart', now India's largest value apparel-retail chain

2008 - Largest portfolio of International brands: Lee, Wrangler, Nautica, Jansport, Kipling,

Tommy, Arrow, US Polo, Izod, Pierre Cardin, Palm Beach, Cherokee, hart Schaffner Marx

WORKFLOW MODEL


Vendor

Vendor management

Purchase order management

Buying and merchandising dept

Purchase verification

fixing

Supplier

Ware hopuse

Allocation based on departments

Purchase order(from zonal office)

Ware house

Store logistics

In woed process(rejected damaged pieces)

On the floor wise

Offer updations

Selling to customer


SWOT ANALYSIS

It is an acronym for the internal strength and weakness of a firm and the environmental

opportunities and treats facing that firm. It is a technique through which a manager creates a

quick overview of a company’s strategy situation. So SWOT analysis of Megamart is flows.

Strengths:

Better understanding of customers helping the company to serve them better

Vast range of products under one roof helping in aerating customer and their

family to shop together and enjoy the experience.

Benefit of early entry into the retail industry

Diversification business operating all over India in various formats

Ability to get products from customer at discounted price due to the scale of

business

Weakness:

High cost of operation due to large fixed costs

High attrition rate of employee

Specific items are not consistently available

Low incentives are provided to the sales executives

Poor supply chain management and weak support infrastrucyre

Weak in technology

Oopp:

Can enter into production of various products due to its in depth undersatanding

of customer’s taste and preferences

Can expand the business in suburban area as there is lot of opportunity

Growth in income of customers


Threat:

Threat of new entry

High business risk involved

Lot of competitors coming up to tap the market potential

Margin of business reducing all the time


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Documents

Mm Report Part A