MARKETING MANAGEMENT-II
PROJECT
RETAIL MANAGEMENT
GUIDED BY
PROF. JOYDEEP BISWAS
SUBMITTED BY
GROUP NO-17
KUNTAL KUMAR MONDAL (18202094)
SAMRAT CHOUDHURY (18202112)
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ACKNOWLEDGEMENT
WE RESPECT AND THANK PROF.JOYDEEP BISWAS ,FOR
PROVIDING US AN OPPORTUNITY TO DO THE PROJECT WORK IN
RETAIL MANAGEMENT MARKETING AND GIVING US ALL
SUPPORT AND GUIDANCE.
THE SUCCESS AND FINAL OUTCOME OF THIS PROJECT
REQUIRED A LOT OF GUIDANCE AND ASSISTANCE FROM MANY
PEOPLE AND WE ARE EXTREMELY PRIVILEGED TO HAVE THIS
ALL ALONG THE COMPLETION OF OUR PROJECT.
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BRIEFING
All the activities required for selling goods or services directly to the final
consumer for personal, non-business use is known as retailing.
To gain an understanding of retail management topics in practical situation, we
chose four retail outlets from the food category (Hi Bhubaneswar!, Aarth restro
& café, Adda unplugged, another one was from a apparel category (Prapti
fashion private limited). We collected the data from the retail outlets from both
the industries and then calculated various parameters and inter compared them
to understand the implementation of retail management in real life scenarios.
We got to know the various marketing communication used inside the store and
how the store profitability is calculated.
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FIRST OUTLET - HI BHUBANESWAR
A newbie in the block, Hi Bhubaneswar was one of the first ones in the series of rapidly
sprouting restaurants in the New Bhubaneswar area. This multi-cuisine restaurant on Info city
Road has an easy going ambiance which tries to appease the young and the old along with
the outgoing and the reserved. Separate enclosures for large groups make life much easier
for those who visit the restaurant for a quiet meal. However, the only flaw in this setting is
the inconsistency in terms of taste and service. There are days when Hi Bhubaneswar with its
impeccable service and succulent meat dishes will delight you and on others you will be
questioning your decision to revisit. If you feel lucky, do give it a try, you never know which
day it might be!
1. Type of retailing process: A Owner based restaurant that provides the
best multi cuisine dishes combined with pure refreshing and
entertaining environment.
2. Outlet size: 3700sq ft.
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3. Store Location: 1st floor , DS Tower, KIIT road , Bhubaneswar, Odisha
751024
4. Respective target segment: Distributive marketing
5. Pricing strategy implemented: Pricing is a bit high comparatively as they
provide high quality food with better service and entertaining activities
6. Various store communication
• Front Storage : Illuminated
• Space allocation: space is differentiated into different area on the basis
of activities.
• Store layout: Grid
• Store Merchandising:
Fixtures: Fitted counter
7. Store Profitability:
Average daily footfall: 140-160 on weekdays
180-200 on weekends
Sales:
• Total sales: ₹16,00,000
• Gross margin = Total sales - selling and administrative expenses
= ₹ 16, 00,000 - ₹9, 60,000
= ₹6, 40,000
• Net sales = gross margin - tax
=₹6, 40,000 - 12.5% of gross margin
= ₹6, 40,000 - ₹80000
= ₹5, 60,000
• Conversion rate = 98%
• Average Transaction Value (monthly)
= Total sales / total transaction
= ₹ 16, 00,000 / 4,500
= ₹356
• Gross Margin Returns on Floor Spacing
= Gross Margin / Selling Space
= ₹ 6, 40,000 / 3700
= ₹173
• Gross Margin Return on Inventory
= Gross Margin / Inventory Cost
= ₹ 6, 40,000 / ₹ 60,000
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= ₹10.7
• Employee Productivity
= Net Sales / Full time employee
= ₹5, 60,000 / 40
= ₹ 14,000 per employee
SECOND OUTLET - ADDA UNPLUGGED
ADDA UNPLUGGED was started in Bhubaneswar in 2013. It is one of the most
visited rooftop restaurant of Bhubaneswar. It has 2 outlets in Bhubaneswar
and 1 in Berhampur. Another outlet is yet to be opened in Jan path,
Bhubaneswar. It is probably one of the best cafe style restaurant in
Bhubaneswar. Warm interior, great variety of dishes and a pretty rooftop area
with supportive staff makes the place awesome. It is named as Adda
Unplugged with an idea that students would spend their time with friends and
beloved over the variety of cuisines and beverages just to relax and refresh
with music in the house.
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1. Type of Retailing Process:-Ownership based restaurant under the
ownership of yellow loop pvt. Ltd company which is especially multi-cuisine.
2. Outlet size:-2000 sq. ft.
3. Store location:-KIIT Road, Patia, Bhubaneswar
4. Respective Target Segment:-Youth and Family
5. Pricing Strategy Implemented:-premium pricing
6.
Various Store Communication:-
Store Frontage:-Illuminated
Store Layout:-Grid
Fixtures:-Fitted Counters
No. of outlets:-Bhubaneswar(2)
Berhampur (1)
No. of full time employees:-37
Type:-Cafe Model
Advertising:-Online- (A)Facebook
(B)Twitter
Offline- (A) Leaflets
(B)Posters
7. Store Profitability
• Average daily footfalls-140 per day
• Total sales=26,00,000 per month
• Gross Margin=Total Sales -Selling & Administrative Expenses
=₹2600000-1000000
=₹1600000
• Net Sales=Gross margin – Tax
= (1600000 - 12.5% of Gross Margin)
=₹200000
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• Conversion Rate=92%
• Average Transaction Value(monthly) =Total Sales/Total Transaction
=2600000/4200
=₹620
• Gross Margin Returns on Floor Spacing =Gross Margin/Selling Space
=1600000/1500
=₹1067
• Gross Margin Return On Inventory =Gross Margin/Inventory cost
=₹1600000/50000
=₹32
• Employee Productivity =Net sales/Full time employee
=200000 / 37
=₹5405per employee
THIRD OUTLET – AARTH RESTAURANT AND CAFÉ
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1 .Type of retailing process-An owner based restaurant providing various kinds
of dishes including breakfast, lunch, evening snacks and dinner.
2. Outlet size-1000 sq. ft.
3. Store location- Info city road, Patia, Bhubaneshwar, Odisha, 751024
4. Respective target segment-Includes everyone
5. Pricing strategy implemented-since they provide good quality products at
an affordable price so they are mainly concentrating on penetration pricing
which is a part of competitive pricing strategy.
6. Various store communication-
Store frontage -non-illuminated
Fixtures -fitted counters
Store layout-free form layout
7. Store profitability
Average daily footfalls-60
Conversion Rate-88%
Total sales-Rs.300000
Gross margin =total sales-selling and administrative expenses
=₹300000-50,000
=₹250000
• Net Sales=Gross margin – Tax
= 250000 – 12.5% of 250000
=218750
Average transaction value (annually)=total sales/total transactions
=300000/900
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=333.33 per transaction
Gross margin selling on floor spacing=Gross margin/selling space
=₹250000/950
=₹263
Gross margin return on inventory investment
=Gross margin/inventory cost
= ₹300000/10000
=₹30
Inventory turnover ratio=COGS/average inventory
=70000/15000
=4.66 times
Employee productivity=net sales/full time employee
=70000/15
=4667 (approx.) per employee
OTHER CATEGORY- PRAPTI FASHIONS PVT. LTD.
Address: Shop No 203, 2nd Floor, 89, Forum Mart, Kharavela Nagar,
Bhubaneswar, Odisha 751001
About Prapti: Prapti Fashions Private Limited is a Private incorporated on 02 July
2001. It is classified as Non-govt Company and is registered at Registrar of
Companies, Kolkata. Its authorized share capital is ₹ 20,000,000 and its paid up
capital is ₹ 7,650,000. It is involved in manufacture of wearing apparel, except
fur apparel.
The Company has its headquarters in Kolkata, also popularly known as India’s
culture capital. The beauty and aesthetic appeal of Kolkata’s creative milieu is
an inspiration for our fashion line.
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Types of retail outlet in terms of Format, Retailing process, Ownership,
Service etc.:
• Outlet- Speciality Store.
• Ownership- Corporate chain store
• Service- Self Selection Assistance.
• Respective Target Approach – Differentiated Marketing.
• Retail Process- B2C. (Business to customer).
• Number of employees: 40
Outlet Size, Store location and its appropriateness:
• Size-720 sq. ft.
• Location- Forum Mart, Kharavela Nagar, Bhubaneswar
Product Assortment & their respective target segments:
• Product Assortment- Men’s wear, ladies wear, kids wear, Accessories.
• Target Segment- Urban Area.
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Pricing Strategy being implemented:
• Discounted Product.
• Affordable price.
• Festive wear.
• Premium Products.
• Bride and Groom Clothing.
Various marketing communications used inside the stores:
• Store frontage & Retail Identity: Illuminated, easily visible & big logo.
• Space Allocation of the store: Trail rooms, Cash counter (2), Washroom,.
• Store Layout: Free flow.
• Store merchandizing, Fixtures:
a) Visual merchandizing.
i. Placards outside the store. They highlight the
products, ample use of Light, Discounts and
offers.
b) Fixture: Fixed and movable.
c) Point of sale material – Table Point of Sale
Store Ambience, lighting, sound, interior design & overall consumer
experience:
• Hanging lights and wall mounted lights.
• Visible Product Assortment.
• Colourful interior.
• Good utilization of space.
• Always a helping hand.
• Kid friendly.
• Feedback booth.
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Store profitability:
• Average monthly footfall: 800
• Sales:
i. Number of bills generated in a month: 650
ii. Total sales: ₹ 900000 monthly.
iii. Average units sold per month : 800
Margin:
• Gross margin: = Total sales - Selling & Administrative
Expenses
=₹ (900000 – 257000)
= ₹643000
• Net margin: Gross Margin – Tax
=₹ 643000-(12% of 643000)
=₹ 565840
• Conversion Rate: 81.25% ( 650 out of 800 customers end up
purchasing)
• Sales per square ft.: =Total sales / Size
=₹ (900000/720)
=₹ 1250
• Average Bill value: = Total Sales/Total Transactions
=₹ (900000/650)
= ₹ 1384.61
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• Accessories: Sunglasses, Belts, Shoes.
• GMROF: =Gross Margin / Selling Space
=₹ (643000/720)
=₹ 893.05
• GMROII: = Gross Margin / Inventory Cost
=₹643000/72000
= ₹ 8.9
• Average Product returns per month: 10
• Product return rate: Average Product returns per month/ Number of
units sold
= 10/650 *100
= 1.53%
• Inventory Turnover Ratio = COGS/ Average Inventory (330000)
=2.72
• Employee Productivity = Net Sales / Full time employee (28)
=₹ 565840/28
=₹ 20208.57
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COMPARISON CHART
Adda Unplugged Hi Bhubneswar! Aarth Restro Prapti Fashions
And cafe Pvt. Ltd.
Average Daily 140 140- 60 27
Footfall 160(weekdays)
180-
200(weekends)
Total Sales 2600000 1600000 300000 900000
Gross Margin 1600000 640000 250000 643000
Net Sales 200000 560000 218750 565840
Average 620 356 333 1384.61
Transaction Cost
Gross Margin 800 173 250 893.05
return on floor
spacing
Conversion Rate 92% 98% 88% 81.25%
Employee 5405 14000 4667 20208.57
Productivity
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Adda Unplugged Hi Bhubneswar! Aarth Restro And cafe
2600000
1600000 1600000
640000 560000
300000 250000 200000 218750
Total Sales Gross Margin Net Sales
Adda Unplugged Hi Bhubneswar! Aarth Restro And cafe
800
620
356 333
250
173
140 160
60
Average Daily Average Gross Margin
Footfall Transaction Cost return on floor
spacing
Hi Bhubneswar! Prapti Fashions Pvt. Ltd.
1384.61
356
200
27
Average Daily Footfall Average Transaction Cost
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INTERPRETATION:
If we compare all the three restaurants, Hi Bhubneswar! has an advantage over
the other two on the basis of net sales, Conversion rate, Employee productivity
because of a larger size, better quality of products and productive employees as
compared to other two restaurants.
If we compare the food category with apparel category, we have a clear view
that the net sales of apparel category is higher than of food category because of
the higher transaction value having an average transaction cost of ₹ 1384.61.
The average footfall in food category is much higher than apparel category
resulting in a greater sales.
Whereas employee productivity is much higher in apparel category and
conversion rate is higher in food category because of consumer behaviour.
CONCLUSION:
We have explored retailing, marketing and marketing communications. We have
also considered the importance of the marketing mix and identified the different
communication tools that a retailer might use to interact and communicate with
their target customers. The project has delivered the importance of marketing
and communication from a retail perspective.
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