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Project Title : Customer Delivering Values

Assessed by : Ramesh Kr. Mahto

Semester : 3rd

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A Project Report submitted in partial fulfillment of the requirement

for the award of the degree of


(Industry Integrated)




Enrollment No: A8750552

Under the guidance of



Gottigere – Bannerghatta Road, BANGALORE
January 2010

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This is to certify that the Project Report at



Submitted in Partial fulfillment of the requirement for the

award of the degree of


(Industry Integrated)


Is a record of bonafide Training carried out by


Under my supervision and guidance and that no part of this report has been
submitted for the award of any Degree/Diploma/Fellowship or similar titles or prizes.


Name: - Prof. Sriram
Signature & Seal of the Learning Center

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I here by declare that the Project Report conducted at



Under the guidance of

Prof. Sriram

Submitted in Partial fulfillment of the requirement for the

Degree of


(Industry Integrated)



Is my original work and the same has not been submitted for
the award of any other Degree/Diploma/Fellowship or other
similar titles or prizes.


Date: Enrollment No: A8750552

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It was a great pleasure to undertake this 2 nd Semester project as integral

part of the requirements of the MBA Program of Bangalore School of Business,

Bangalore. I would like to express my profound sense of gratitude to Prof. Sriram,

The Dean of our Institute and I am extremely thankful to him foe give the opportunity

to carryout this work.

I am greatly indebted to acknowledge thanks to Mr Santosh Kumar(Lecturer –

Placement Officer), the faculty guide for having taken interest in my training

program. I would like to thanks all the respectable staff members for the kind Co-

operation and support.

I take pleasure in thanking respectable Mr. Ayon Mukherji- Departmental Manager

, MENS FORMAL SECTION , Shopper’s Stop providing me the opportunity to do

the 2nd semester project in the company.

I am most thankful to my colleagues Basavaraj, malik, Mahesh, Rajesh,

chiranjivee, Liyam and my friends richard, shiv kumar , pradeep lal , rashmi, for

giving their support to prepare my project report.



1.1. General Introduction.

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1.2. Objectives of study.
1.3. Industry Profile
a. Origin and development of the industry.
b. Growth and present status of the industry.
c. Future of the industry.


2.1 Origin of the Organization .

2.2 Growth and development of the Organization.
2.3 Present status of the Organization.
2.4 Future plans of the Organization.
2.5 Organization structures and Organization Chart.
2.6 Product and service profiles of the Organization.
2.7 Market profile of the Organization.


3.1 Student’s work profile ( Role and Responsibilities)

3.2 Description of live experience.
3.3 Student’s contribution to Organization.


4.1 Statement of research problem.

4.2 Statement of research objectives.
4.3. Research design and methodology.
4.4 Analysis of data.
4.5 Summary of Findings.


5.1 Summary of learning Experience
5.2 Conclusions and recommendations.




On a weekday, the DLF Mega Mall -- located in the IT and ITES hub of Gurgaon on
the outskirts of Delhi -- bears a deserted look. Of the few operating shops in this
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large mall, most have nary a customer. The same goes for several other
retail outlets and many of the other malls in the vicinity.

True, a retail chain like Future Group's Big Bazaar may be

clocking heady sales (growing at 100% year-on-year), but the dozen-odd shops
operating in its proximity wear a deserted look, giving a somewhat hollow ring to the
much-talked-about retail boom in the country. In what seems like a quirk of
circumstance, malls have sprung up all over urban India in anticipation of a
consumption boom that may itself prove to be eventually truant. Move to Mulund
(West), a suburban locality of India's financial nerve, Mumbai. Rajesh Parashar, a
resident of the area has the option of shopping at Big Bazaar, Apna Bazaar,
Subhiksha, Spinach, Shoprite, Foodland or at the local Sai Supermarket, all of which
are within a two-kilometre radius of his residence. This is paralleled by the
developments happening in the Delhi suburb of Ghaziabad, where the upcoming
Shipra Mall at Indirapuram already has Big Bazaar operating out of its lower-ground
floor, while Reliance is slated to open shop on the third floor. Customer footfalls,
however, are more in the projections of the occupiers of the mall than real. All this
retail activity, and more, and the sheer gargantuan size of the investments planned,
beg the question -- does the consumer's wallet have enough money in it for
everyone? "Only time will tell," is KPMG's executive director, Deepankar Sanwalka's
laconic answer. To a great extent the success or the failure of malls will hinge on the
consumer population of the area. "If the spending power of consumers is high in a
locality, it could sustain two-to-three large players." Not so, elsewhere, he adds
poignantly. The significance of these remarks sinks in gradually. With planned
investments of $22 billion over the next five years -- excluding what might be brought
in by new global and large local players henceforth -- the retail sector is expected to
grow 40% to $427 billion by 2011.


Retail is India’s largest industry, accounting for over 10 percent of the
country’s GDP and around eight percent of employment. Retail in India is at the

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crossroads. It has emerged as one of the most dynamic and fast paced
industries with several players entering the market. That said, the heavy initial
investments required make break even hard to achieve and many players have not
tasted success to date. However, the future is promising; the market is growing,
government policies are becoming more favourable and emerging technologies are
facilitating operations.
My objective of the study is to :-

• Get aware of the retail formats , its developments

• Understand customer behaviour

• Cater to their needs

• Get all the practical learning’s of customer delight and customer

satisfaction and finding out ways to achieve it.

• Learn all the management processes and terms like RTV, PICS.

• Work together as a team , learn to solve problems together while handling



a. Origin of the industry
 Traditionally retailing in India can be traced to
– The emergence of the neighborhood ‘Kirana’ stores catering to the
convenience of the consumers
– Era of government support for rural retail: Indigenous franchise model
of store chains run by Khadi & Village Industries Commission

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 1980s experienced slow change as India began to open up
 Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's
and Grasim first saw the emergence of retail chains
 Later Titan successfully created an organized retailing concept and
established a series of showrooms for its premium watches
 The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
 For e.g. Food World, Subhiksha and Nilgiri s in food and FMCG; Planet M
and Music World in music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of shopping centers,
– mainly in urban areas, with facilities like car parking
– targeted to provide a complete destination experience for all segments
of society
 Emergence of hyper and super markets trying to provide customer with 3 V’s
- Value, Variety and Volume
 Expanding target consumer segment: The Sachet revolution - example of
reaching to the bottom of the pyramid.
 At year end of 2000 the size of the Indian organized retail industry is
estimated at Rs. 13,000 crore.

Development of the industry

 Multiple drivers leading to a consumption boom:
– Favorable demographics
– Growth in income
– Increasing population of women
– Raising aspirations : Value added goods sales

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 Food and apparel retailing key drivers of growth
 Organized retailing in India has been largely an urban phenomenon with
affluent classes and growing number of double-income households.
 More successful in cities in the south anwest of India. Reasons range from
differences in consumer buying behavior to cost of real estate and taxation
 Rural markets emerging as a huge opportunity for retailers reflected in the
share of the rural market across most categories of consumption
– ITC is experimenting with retailing through its e-Choupal and Choupal
Sagar – rural hypermarkets.
– HLL is using its Project Shakti initiative – leveraging women self-help
groups – to explore the rural market.
– Mahamaza is leveraging technology and network marketing concepts
to act as an aggregator and serve the rural markets.
 India’s top retailers are largely
lifestyle, clothing and apparel
 This is followed by grocery stores
 Following the past trends and
business models in the west retail
giants such as Pantaloon,
Shoppers’ Stop and Lifestyle are
likely to target metros and small
cities almost doubling their current
number of stores

b. Growth and present status of organization

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 Retailing in India is witnessing a huge revamping exercise as can
be seen in the graph
 India is rated the fifth
most attractive emerging
retail market: a potential
 Estimated to be US$ 200
billion, of which organized
retailing (i.e. modern
trade) makes up 3
percent or US$ 6.4 billion
 As per a report by KPMG
the annual growth of department stores is estimated at 24%
 Ranked second in a Global Retail Development Index of 30 developing
countries drawn up by AT Kearney.

c..Future of the Industry :-

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 AT Kearney has estimated India’s total retail market at US$ 202.6
billion which is expected to grow at a compounded 30 per cent over the next
five years.
 With the organized retail segment growing at the rate of 25-30 per cent per
annum, revenues from the sector are expected to triple from the current US$
7.7 billion to US$ 24 billion by 2010.
 The share of modern retail is likely to grow from its current 2 per cent to 15-20
percent over the next decade
 Over next two years India will see several Indian retail businesses attaining a
critical mass as growth in the industry picks up momentum driven by two key
– Availability of quality real estate and mall management practices
– Consumer preference for shopping in new environments
 Wal-Mart : huge plans for India. Moving a senior official from its headquarters
in Bentonville, Arkansas, to head its market research and business
development functions pertaining to its retail plans in India.
 New York-based high-end fashion retailer Saks Fifth Avenue has tied up with
realty major DLF Properties to set up shop in a mall in New Delhi.
 Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi,
Ahmedabad, Lucknow and Bangalore in the next four months
 68 million square feet of mall space is expected to be available by end of
2007, which might lead to over-capacity of malls
 Lack of differentiation among the malls that are coming up. One option may
be to look at specialization.
 Poor inventory turns and stock availability measures - retailers clearly need to
augment their operations.
 Operations of retailers and suppliers are not integrated. Efficient
replenishment practices practiced in the Indian auto and auto-component
industry can be leveraged to implement efficient supply chain management

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Setting up shop in 1991 (October)
with its flagship store in Andheri, Mumbai,
Shoppers’ Stop is a member of the K. Raheja
Corp. of Companies. Shoppers’ Stop is the
first retail venture by the K. Raheja Corp.
Promoted by Mr. Chandru L. Raheja, Mr.
Ravi C. Raheja and Mr. Neel C. Raheja, the
K. Raheja Corp. have been leaders in the
construction business for over 48 years.

With its wide range of merchandise, exclusive

shop-in-shop counters of international brands
and world-class customer service, Shoppers’
Stop brought international standards of
shopping to the Indian consumer providing
them with a world class shopping experience.

Today, Shopper’s Stop has acquired the status of a pioneer in organized retailing in the
country. It has a very strong national presence and is also well connected with the
International Retailing scene. It is the only department store chain in India to be a member of
IGDS, “International Group Of Department Store” where only the best store of each
country gets an opportunity to be a privileged member. Shopper’s Stop plans to become a 49
store company by 2010, with a total retail selling space of over 3.6 million square feet.

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October 1991: Shopper’s Stop is launched as a Men’s ready –to –wear garments
store in Andheri, Mumbai.

March 1992: 27th March 1992 saw the addition of Shirting, Suiting and Boys

December 1992: On 13th December 1992 we started catering to the ladies

merchandise. In order to cater the yuppie crowd, we also added the casual
merchandise section.

May 1993: A separate division for children was started on the third floor with
merchandise of girls, boys and infants.

July 1993: Catering till now to only garments, we realized the potential for
accessories and added a section on jewellery, cosmetics and watches.

August 1993: Institutional sales – a new concept of selling was ushered in. This
involves taking up bulk orders from customer who were not the end users i.e. sales
to corporate clients, sale of gift hampers and gift vouchers, dress kits etc.

September 1993: We introduced our first Retail Management Trainee program, an

in-house management program where we select graduates on the basis of a written
entrance exam. The candidates were then imparted intensive training for one year,
after which they were confirmed either as Supervisors or Assistant Merchandisers.

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December 1993: We co-hosted a carnival with all four Disney
characters: Mickey, Mini, Donald and Goofy in their first joint appearance in India.
The event attracted about 31000 Customers.

April 1994: 3rd April 1994 saw the launch of our in house brand of merchandise

April 1994: In response to the ever-growing customers base, we decided to

establish a large long-standing and mutually beneficial relationship with our
customers through ‘The first citizen club’ – OUR CUTOMER LOYALTY. Any
customer is eligible to become a member of this club, by virtue of which he/ she
becomes entitled to avail certain privileges and benefits. The ‘First Citizen ‘ program
today has more than 7 lakhs members.

December 1994: W e entered business schools and recruited our, first batch of
Management Trainees. Today we recruit a minimum 20 students per year from
colleges all over India.

October 1995: The second store Of Shopper’s stop with an area of 38,000 sq ft was
opened in Bangalore.

September 1996: ‘The festival of Britain’, in collaboration with the British High
Commission was celebrated in both the Bombay and Bangalore stores for a period
of over 21 days spread over the moths of September & October.

August 1997:‘Parikrama’ (A Sanskrit word meaning undertaking a complete circle of

sacred objects) was launched in shopper’s stop. This is an annual event, which
celebrates Indian traditions and culture.

May 1998: Shopper’s stop made it entry into the land of the Nawabs Hyderabad;
and true to the style of the land, it opened with an area of 72, 700 sq ft.

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June 1998: In June 1998, we were awarded the prestigious IGDS
membership it was the turn of technology next. ERP (Enterprise Resource Planning)
Package. J.D. Armstrong was launched.

December 1998: The corporate office of Shopper’s stop from the retail store
premises to MIDC, Andheri (East).

September 1999:The smallest store of Shopper’s Stop Ltd. Of 19,000 sq ft was

opened in Jaipur. It was inaugurated by a Grammy award winner Pt. Vishwa Mohan
Bhatt. Emphasis was given on a new look better, unmarked, stylish was very less.

November 1999:From Jaipur we went to the capital city Delhi where we opened our
next unit of 50, 000 sq ft at the Ansal plaza Mall.

March 2000 :Oracle Financials were brought in and implemented across the

April 2000:‘CROSSOWRD’ the renowned retail chain of bookstores became part of

Shopper’s Stop Ltd.

August 2000: We opened the 6th Store in our chain at Chennai.

December 2000: Mumbai got a new landmark as we opened our store at Chembur.

January 2001:The corporate office was shifted from MIDC to Malad (west)

May 2001:We opened a new store at Pune on May 20th 2001. A kargil hero
honoured us by cutting the ribbon.

October 2001:The event ‘7 Wonders ‘ was launched. A promotion where lucky draw
winners were flown to the 7 wonders of the world. This event saw look-alikes of

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famous personalities walking the roads of cities and our stores depicting
the look of 7 wonders of the world.

October 2001: Also saw the launch of Rmaco Human resources Information
System, an ERP that automates all the HR activities.

November 2001: We undertake a B2B initiative providing necessary information to

our suppliers such as stocks and sales related to their merchandise. Our corporate
website Through this website all our First Citizen members
can view their loyalty card point statements.

December 2001: We opened at Bandra, an up market location in Mumbai. It has the

most remarkable feature of being the first store to not to have any show windows.

November 2002: Kandivli the 4th store in Mumbai city opened as the first store in the
history of the company with wireless POS machines.

January 2003: The 11th store in the chain was opened at Gurgaon with an area of
27,000sq ft.

March 2003: We ventured into Kolkata, capital of West Bengal, the land of the
intellectuals and set up our first store on Elgin Road.

April 2003: We opened the 13th store in the chain and the 5th store in Mumbai at

Februalry2004: We opened the 14th store in the chain and the 6th store in Mumbai at
Inorbit Mall, Malad.

June 2004: Kolkata got a 2nd store at salt lake; the 15th in our chain. The size of the
store is 42,065 sq ft. The design and the fixtures are very contemporary. Every

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department is color-coded. There is a clear departure from wooden
fixtures to metal. The new look and feel is very international.

October 2004: we opened our 16th store in the chain and the 2nd one in Bangalore at
Banerghatta road.

April 2005: Pune’s up market M.G. road saw the addition of a 2nd store in Pune.

May 2005: Juhu got a new landmark with the 7 th store in Mumbai being opened
near the main hub of juhu, the famous Iskcon Temple. The store is spread over 3
levels and measures about 55000sq ft. The façade is combination of a glass curtain
and alucobond panel that highlights the window displays and graphic panels. The
presentation concept of the interiors is minimalistic and contemporary which is
achieved with use of light colours brushed steel and glass.

June 2005: We opened out 20th store in the chain at Shipra, Ghaziabad . It is
strategically located to cater to residents of Noida, Ghaziabad and East Delhi. The
store measures approximately 39000 sq ft (Carpet area). And is spread over two
floors. The façade is in a classical style with combination of arches & minarets.

July 2005: India’s First ever M.A.C was store launched at Shopper’s stop, Juhu.
M.A.C. (Make up art cosmetics), globally the professional artist’s brand of choice for
fashion, film, TV, theater, music and photography, is the first brand under the
Esteem Lauder portfolio to enter the retail Indian market. It has broad line of colors,
cosmetics, makeup tools, skin care, foundations and accessories targeting the
professional makeup artist and fashion forward consumers.

December 2005: Our 1st specialty home store ‘Home Stop’ was opened in
Bnagalore with great fanfare. The vision behind Home stop is to ‘Create your home
with us’. The store takes care of making your Home from a House. It is a stop
solution for all your Home needs.
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March 2006: Launch of BRIO at Bangalore. BRIO offers a stylish, new world of
gourmet coffee, specialty tea and delectable European bistro fare which promises to
offer something which all the coffee connoisseurs across the country have never
experienced before.

April 2006: Launched of mothercare at the Juhu and Bandra Stores.”mothercare” is

the leading specialist retailer for mothers-to-be and parents of young children,
offering the widest range of clothing, hardware and toys for the pre-school child, in
the UK and internationally.

May 2006: Launch of HyperCITY at Mumbai. We made a foray into food and general
merchandise retailing through HyperCity, our 124000 SQ. ft hypermarket. The
product offering includes fresh fruits and vegetables, groceries, apparels, electronic
appliances etc all under one roof.

July 2006: Shopper Stop Ltd. Is appointed as “Master Franchisee” of Crossword

Bookstore Ltd. for conducting the business of retail book store under the trademark
“Crossword” at all existing stores (Crossword Owned Stores) wherever permissible
and excluding stores which are operated by Crossword’s existing franchisees.

September 2006: Launch of second HomeStop at Malad, Mumbai. The store is

approximately 49000 sq.ft on a single floorwith display of bedrooms, living rooms, a
modular kitchen and a center podium to exhibit lifestyle displays in a living
atmosphere. The store has an array of brands in kitchenware and bed linen from
India and abroad.

December 2006: Launch of our first store in the city of Nawabs, Lucknow.
Measuring approximately 53000 sq. ft. and spread over the three floors, it is the
anchor store of the E-city Fun Republic Mall at Gomti Nagar.

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January 2007: Shopper’s Stop Ltd. Forays into airport retailing through a
joint venture with the Nuance Group AG of Switzerland, Which is the world’s leading
airport retailer. The company has bagged concessions for retail operations at the
terminal 1B Departure of the Mumbai Domestic Airport and the Greenfield Bangalore
International Airport for both domestic and international terminals.

February 2007: Shopper’s Stop Ltd. And Hypercity Retail India Pvt. Ltd. Sign a
Memorandum of Understanding to enter into a franchise agreement for the ARGOS
formats of catalogue and Internet retailing, with Home Retail Group. Home Retail
Group s UK’s leading home and general merchandise retailer with sales of over 5.5
billion pounds in the last financial year.

April 2007: We open our first store in Noida at “The Greater India Place” mall. This
the Shopper’s Stop’s fourth store in NCR. Spread over 54000asq.ft of retail space,
the look and feel of the store is refreshing. Spacious and uncluttered. It gives
customers the ease to sop at their own pace. show windows along the periphery are
the highlights so the store. Priority is given to customer convenience with kid’s play
area, babies’ nursery, alteration desk, and large cashiering banks The interiors are
minimalist and contemporary. Light colors, brushed steel and glass with and
customer friendly signage.

July 2007: We opened our 22nd store of Shopper’s Stop in the country and the
second store in Delhi at Raja Garden. This new Shopper’s Stop store is the largest
department store in the country with a retail area of 1.35 lakhs sq, ft and houses an
overwhelming range of premium international and national brands.



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To be a Global Retailer in India and Maintain No.1 position in the Indian Market in
the Department Store Category.


Shoppers’ Stop is positioned as a family store delivering a complete shopping

experience defined by its mission, vision and values.

India – 2000 & Beyond…

Expanding its operations to Bangalore, Hyderabad,

Jaipur, Delhi, Chennai, Mumbai (Andheri, Bandra,
Chembur, Kandivli, Mulund), Pune, Gurgaon and
Kolkata, Shoppers’ Stop is today recognised as India’s
premier shopping destination. With a customer entry of
about 50,000 customers a day, a national presence
with over 6,00,000 square feet of retail space and
stocking over 250 brands of garments and
accessories, Shoppers’ Stop has clearly become a
one stop shop for all customers.

Customer Profile
Shoppers’ Stop’s core customers represent a strong
SEC A skew. They fall between the age group of 16
years to 35 years, the majority of them being families and young couples with a
monthly household income above Rs. 20000 and an annual spend of Rs.15000. A
large number of Non - Resident Indians visit the shop for ethnic clothes in the
international environment they are accustomed to.

Range of merchandise…
The stores offer a complete range of apparel and lifestyle accessories for the entire
family. From apparel brands like Provogue, Color Plus, Arrow, Levi’s, Scullers,
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Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci etc.,
Shoppers’ Stop caters to every lifestyle need. Shoppers' Stop retails its own line of
clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The merchandise at
Shoppers’ Stop is sold at a quality and price assurance backed by its guarantee
stamp on every bill.
Their motto: “We are responsible for the goods we sell”.

Customer Rewards – The First Citizen

Shoppers’ Stop’s customer loyalty program is called
The First Citizen. The program offers its members an
opportunity to collect points and avail of innumerable
special benefits. Currently, Shoppers’ Stop has a
database of over 2.5 lakh members who contribute to nearly 50% of the total sales
of Shoppers’ Stop.

International Affiliations
Shoppers’ Stop is the only retailer from India
to become a member of the prestigious
Intercontinental Group of Departmental
Stores (IGDS). The IGDS consists of 29
experienced retailers from all over the world,
which include established stores like
Selfridges (England), Karstadt (Germany),
Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya (Japan), C K Tang
(Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is
restricted to one member organization per country/region.



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Shoppers’ Stop undertakes image
makeover; revamps looks, logo, uniforms,
among others
“Change is essential. Our consumers are changing, their preferences are constantly
evolving. They are getting younger. And so, we have to change along with them.”

- B S Nagesh, Customer Care Associate & Managing Director, Shoppers’


After 17 years of existence K Raheja owned and B. S. Nagesh managed India’s

largest department stores retail chain Shoppers’ Stop has decided to spend Rs. 20
crore ($5 million) on image makeover.

In a major revamping exercise, it has changed its logo, baseline, uniforms, shopping
bags, and looks, among others, though, it will not change its black and white colours.
Explaining rationale behind retaining colours, Govind Shrikhande, CCA & Chief
Executive Officer, Shoppers’ Stop, said, “It is more classical, rich and authoritative,
something Shoppers’ customers connect with. Black and white gives us a strong
brand recall value.”

“The simple but classic new logo without the old elliptic ring, which has an
international look and a timeless appeal, carrying the new baseline ‘Start something
new’ prods customers into taking a step ahead to upgrade themselves to the next
level in life.

“The change in the identity is just the beginning of a wave of strategic movements
which is being made in people, people practices, introduction of new ways of

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shopping, technology investment in CRM and analytics,” said B S
Nagesh, Customer Care Associate & Managing Director, Shoppers’ Stop.

Identity change will also be accompanied by a new range of recyclable shopping

bags that are based on ‘fashion through ages’ theme, and new look stores with ‘in-
store radio’ and ‘trial rooms’ with day and night lighting options.

Also to be introduced along with is an anthem

written by Gulzar and sung by Sonu Nigam for
recitation of its employees. Also, on the cards is a
broadcasting station that will air fashion content
and music across the stores.

Shoppers’ Stop, currently operating 24 stores and occupying 1.6 million sq ft of

space, is looking at scaling up the number of stores to 50, within the next three to
five years. Around 10 of these stores are likely to come up during this year.

• Retains the current core value of the brand Trust, Comfort & Warmth.
• Is a reflection of our brand’s new charcter Inspiring guide, Progressive &
Dynamic, Imaginative & Thought leader.


• A strong visual element

• Reflects the ‘Bridge to luvury’ position of the


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• Smart , Sophisticated & classic
• Comfortable and fills you with confidence.

• Fashionable, classy bags designed.
• New look , gives a brand new image


• Signature campaigns in store through a Pledge Book

• Inspire customers to Pledge to ‘Start something new’

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• In-Store contest on the new logo.


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Shoppers' Stop aims to leverage brick and mortar strength news
Retail major Shoppers' Stop Ltd has just launched its virtual store “ The website, apart from selling the usual wares -- apparel,
books, gift articles, toys -- will also hawk flowers and furniture, not stocked by the
company's brick and mortar chain due space constraints.

The virtual store will be a boon for people who want to send gifts to their loved ones
living and within and without the city. Expecting sizeable business from this
segment, Shoppers' Stop is tying up with support service providers to over come the
myriad complexities involved in logistics and back-end operations.

Says the company's general manager “ information systems, Anish Shah, "We have
made arrangements for logistics, payment gateways and call centres for goods
ordered over the website." However, virtual store transactions will be initially
restricted to the cities where the company has its brick & mortar outlets.
Interestingly, the `virtual store' -- a Net-enabled computer -- will be there in every
Shoppers' Stop store, enabling a shopper to order on the web, specifying the place
of delivery after seeing the goods in the physical store.

Shoppers' Stop, the first retail chain in India to invest on an ERP package, is again
investing heavily on software. This time around, the company is buying a software
package called Arthur Planning, and a data warehousing solution from JDA, USA
from which it bought the ERP package. "Arthur Planning is useful in measuring the
stock position at the store shelf level and for auto replenishment of the shelves," Mr
Shah explains.

That aside, the software package helps in studying sales patterns and identifying
slow moving items and the reasons thereof. According to Mr. B.S. Nagesh,
managing director and chief executive officer, Shoppers' Stop, the chain enjoys a
comfortable stock turnover ratio of six times. The company's six stores and three
warehouses are networked with the corporate office at Mumbai.

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Apart from the virtual shop, Shoppers' Stop is to open its second store in
Mumbai and Hyderabad next month. "This is to increase our catchment area,"
reasons Mr Nagesh. Though stores of this kind are termed as destination stores, in
reality people are not willing to travel beyond five kilometres to shop, he adds.

After registering a turnover of Rs 160 crore for the year 1999-2000, Mr Nagesh is
targeting sales of Rs 270 crore and a net profit of Rs 16.2 crore in the current fiscal,
on an equity capital of Rs 24 crore. The company had privately raised Rs 60 crore
from financial institutions and venture capitalists. As per the plans on the drawing
board, Shoppers' Stop plans to have around 23 stores by the end of 2004, with
major cities having multiple retail outlets.

Recently, the company opened its 50,000-sq.ft store in Chennai. Set up at an outlay
of Rs 10 crore, Mr Nagesh expects the Chennai store -- the company's sixth outlet --
to break even in 18-24 months time. "We expect to clock Rs 30 crore sales in the
first year of operations," he remarks.

One of the unique features of the Chennai store is the housing of Crosswords, the
bookstore, and Music World, the music store belonging to the RPG group. The
company has entered into a revenue sharing agreement with Music World for the
purpose. It may be recalled that the Rahejas acquired 51 per cent equity stake in
Crossword store some time back. According to Mr Nagesh, this format will be
implemented in all future stores. In Mumbai, Shoppers' Stop has tied up with Planet
M (of the Times of India Group) for music retailing.

Responding to the query of why he is not looking at contract management of stores

on a profit sharing basis (similar to the practice in the hotel industry), thereby saving
heavy outlays and achieving faster brand growth, Mr Nagesh replies, "We are still on
the learning curve with lot of things still to be mastered."

The company's experiment with the franchisee model through its Blues Bizaar retail
chain was not successful. "We were not able to devote sufficient management time
in managing the chain," says Mr Nagesh. Of the three Blues Bizaar stores -- two

T.JOHN Business School 28

franchisee and one own-shop -- opened in Mumbai, two have downed
their shutters and the remaining one is in the process closing the operations.

“Shoppers’ Stop to offer easy loan facilities for consumers

Targets existing loyalty card members, credit card holders

Mumbai, Sept. 24 This festival season Shoppers’ Stop is planning to create

lower variants in its credit card-based buying options. Reducing its credit limits, the
retail chain is looking at options that would not necessarily cater to big-ticket items at
its stores.

Mr Govind Shrikhande, Chief Executive Officer, Shoppers’ Stop, told Business Line,
“We are looking at giving credit at lower values and there would be new versions
and models offered within our credit card facilities currently available.”

With intentions of increasing consumption at its stores, the retailing chain is planning
to give credit between Rs 5,000 and Rs 10,000 for buying lower value items.

Having associated with Citibank for its co-branded card for the past three years, the
credit facilities given so far have been restricted to big-ticket buys such as furniture
especially during the festival season. Adds Mr Shrikhande, “All these years we have
been offering credit to buy big-ticket items ranging from Rs 50,000 to Rs 80,000. But
now we are looking at giving easy loans with lower interest rates.” The interest rates
charged for these cheaper loans would range between 9 and 10 per cent of the
principal amount.

Targeting the existing 1-lakh loyalty card members and credit card holders with its
new credit offerings, the retailer expects to generate additional consumption this
festive season. “We have been working on a new credit card model for the past two
months and expect consumers to avail themselves of this benefit across categories,”
says Mr Shrikhande. Recently, the Future Group also decided to give credit to
consumers through Future Money after tying up with its financing arm Future
Capital. Mr Kishore Biyani, CEO, Future Group, said, “Through Future Money we are
able to create a product that can increase consumption.” Besides, Reliance Retail as
part of its hypermarket, has also launched a financial service division (Reliance
Finance) to provide the consumers retail loans (at affordable EMIs) at the point of

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BUYING AND MERCHANDISING: is an important function, in which the team plans

procures product offering for our customers. They are responsible for ensuring
product availability for the customers in the styles and designs desired by the
customers on time.

The B&M functions works on 2 seasons (spring- summer and autumn winter). Each
season is broken down into 6 periods with 26 weeks with planning and monitoring
done at the weekly level.Based on market research /information, past performance,
analysis and forecasts for fashions and trends in the ensuring season, the B&M
teams plans the product range for all our stores.

There are 5 teams who are responsible for delivering all merchandise needs of our
customers. The teams are:
1. Men’s
2. Ladies and kids
3. Youth fashion and denims
4. non apparels
5. Private brands

• Financial planning – The B&M team converts the corporate financial plan into
divisional and departmental plans covering sales, margin, markdown and

• Range planning – Range planning is where our teams decide how much to buy of
each option, and when to put it on the shelves for the customer to pick up . This is
derived from the financial plans formulated for each season, for each division and
department. Our B&M team with the help of the software can fine
tune the range for each store.

T.JOHN Business School 30

• Product developing and ordering – Each brand makes the brand offering for the
season. The merchandiser based on trends and past data selects the range and
places the order. For private label on the trends and fashion forecasts. The design
brief converted into samples by our partner vendors, based on which we place

• In season management- We monitor actual performance of our merchandise

against the plan ona weekly basis during the season , and accordingly decide on
the short term strategy to be adopted. These include additional markdowns and
special propmotions , in excess of what had been initially budgeted. This may also
requires us to revise our plans ,and also our purchase orders with our vendors ,
wherever possible.

BUYING- The team is responsible for scanning the market for trends, fashion and
customer buying behaviour on the basis of which they decide on the merchandise to
be bought for a particular season, they are also development of private brands. As a
part of the function they coordinated with the design teams for samples, range plan ,
with the strore planning department for space allocation in the store and with the
marketing department for the promotional activities of the various BRANDS. They
also corordinate with the visual merchandising department to create a visual ppt
norm for their category in the store.

MERCHADISING- they take care of merchandising planning , ananlysis and

availability of merchandise to each and every store. The department negotiates with
the vendors for better margins and support on promotional activites for various
products. They mamnage the inventory upto budgeted levels. They work in close
conjunction with the buyers for markdown management

Our private brands- We have a strong focus on our in-store brands, whch are
also called private labels. These help us the complement product range that we

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receive from national and international brands and allow us to offer the
customers the enhanced range across price points. Design , Quality, Fits, Fabrics
etc has always been the top priority for the brands.

Our gift vouchers- We also sell gift vouchers, which are purchased by our
customers for gifting purpose. These gift vouchers can be used in any of our store
for purchase of any merchandise or service.

Design- The core of entire private label business, this team is for conceptualization
to the designing of apparels of all SSL brands. The team ensures the right balance
of fashion & customer need while designing the looks. The team is subdivided into
categories like Menswear (classic /fashion/ ethnic), Ladies (classic/ ethnic/ fashion)
and kids wear. Fashion forecast and the collection are presented for every spring
summer & autumn winter season. The design team also takes care of the visual
imagery of each SSL private brands by creating the story boards for the seasonal
photo shoot.

Quality Assurance- ensures the quality of the products and set the quality
standards and process for the merchandise. They are involved in vendor evaluation,
selection and monitoring. They audit the vendor in different stages of manufacturing
and finished goods to assure the compliance to standards. They are also
responsible for defining Quality assurance procedure with respect testing,
inspection, tolerance, sampling plan
And communication formats is the part of the responsibility for the quality assurance.
As an ongoing mechanism they are also involved in the analysis of customer
complaint to prevent recurrence.

Distribution and Logistics- A function without which chaos and confusion with
prevail as this department ensure the each and every store receives merchandise
tagged, is in a salable condition, is made available on time, and as soon as the
requisition is placed be it any season of the year. The responsibility of this
department doesn’t end at that. They also manage the reverse logistic process that

T.JOHN Business School 32

is to monitor the movement of goods against the invoiced quantity return
the excess, defective and consignment stock back to the vendor while telling the
same with the vendors and the accounts departments. D&L team ensures that right
goods are available at the right place at the right time, in the right quantities at the
lowest possible cost. We have Regional Distribution Centers, one each in Mumbai,
Delhi, Bangalore, and Kolkata and logistics, people, space, finance and vision.
D&L Department also handles the imports in totality.

Central merchandising- The central merchandising team plays the integral role in
the delivery of the company’s buying and merchandising process. It tracks the
performance across product categories through information available , analysis and
control. They are specifically responsible for managing the store planning process
taking in the inputs from retail operations and buying and merchandising. This
department is also responsible for seasonal budgeting and mark down activity. This
department has implemented phase 1- of Arthur planning based merchandise
strategic planning system called FM WSSI (Financial management weekly sales
stock and intake) The system supports merchandise planning i.e. projecting and
fixing plans at chain, sub department, stock id and week level.

Corporate planning- The corporate planning department works with the group
management on various aspects of strategic development for the group across all
retail formats and brands, include planning, implementation and performance

Corporate planning also drives the development of alliance with international

retailers and brands , which can potentially accelerate the group’s entry and the
growth into new business formats. Shopper’s stop partnership with Mother care
(U.K), The NUANCE GRUP (Switzerland) and Argos (U.K.) have been supported by
the corporate planning team in the recent past.
This department also manages customer service quality, measurements for group
formats including customer satisfaction surveys and mystery shoppers programs.

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Marketing and communication- they are responsible for building the
brand- shopper’s stop and keeping it ‘top of the mind’ in the minds of customer. They
build the preference for the brand in the competitive environment by designing and
executing differentiated promotion, brand advertising, as well as creating credibility
for the company through effective public relations. They are also responsible for
cresting an emotional connects with the consumer through local level and regional
events. This team also works closely with the visual merchandising team to ensure
that there are complete synergies between what is communicated to the consumer
outside the store id the same within. They along with the operation team works
towards for creating moments of magic for the customer.

Loyalty- The first citizen is one of the oldest loyalty programs is the country today. It
is the largest retail loyalty program in the country. A loyalty program which has
swelled the number of our loyal customers , day after day , month after month and
year after year.

The origin:-
Conventional marketing wisdom supported by research suggests that:
• Cost of acquiring a new customer is 5 times more than
retaining one
• Chances of selling to existing customer 1:2 , as against to a
prospect 1:16
• Customer switching brands because of no contact from the
company : 61%
• Number of people to whom one unhappy customer
communicates his
dissatisfaction :-
The first citizen program today contributes to 63% of the comaspny‘s turnover and
our loyal customer base has growth to a strength of 7 lakhs at last count.

The management of the loyalty program is a complex task. The primary objectives
are as follows:-

T.JOHN Business School 34

1. Retaining satisfied, happy and high potential customers.
Loyal customers are a source of competitive advantage in the face of increased
competition. The primary task of program is to identify, engage, retain and grow
our loyal vase year on year. To do this , each segment manager must needs look
at the complex data analysis to identify customer slucters and devise different
customers engagement programs depending on the needs of the particular
2. The first citizen desk manages the interaction of members at the front end.
They are the face of loyalty program and they along with the other associates
on the floor deliver the moment of the truth. A key function of the loyalty team is
to ensure that these associates are provided with adequate information and
support to help the serve member better. Support ranges from providing the right
kind of literature to them to generate acquisitions, providing inputs for resolution
of customer issues as well as adequate training to keep them motivated and fully
geared up to understand customer requirements.

3. Knowledge is power- Loyalty program is supported by a strong database which

helps us map customer buying behavior and preferences and extrapolate that to try
and predict future customer behavior. Managing this database is a key function in
the loyalty program management at the Services Office along with support from the
Sol-tech team.

INSTITUTIONAL BUSINESS- Department focuses on future guaranteed sales for

SSL. This is done through gift vouchers sold to individuals and corporate and also
includes redemption partners. Who contribute to the business. On retail level
customers buy Gift vouchers for personal gifting like birthdays, marriages etc.

On a corporate level Gift vouchers are bought for incentives programs , Rewards &
Recognition programs and during festive periods like Diwali & New year as this the
time most corporate gift their clients and business partners. The business has been

T.JOHN Business School 35

growing at a pace of 40% year on year in terms of achievement. Apart
for assuring future sales, Gift vouchers aids walks in to the units and also help in an
increased cash memo size over the value of the Gift Vouchers thus contributing to
the Units sales.
The IB team is represented by IB sales Officers at the units who make presentations
to corporate in their regions and achieve bulk bookings for Gift Vouchers or
Corporate Merchandise. Major contributors to the business are Financial Institutions,
IT & ITES, Call centers & BPO’S, Insurance and FMCG organizations.

VISUAL MERCHANDISING- is the way we want our products and services to look
and feel to maximize sales. The team creates, organizes, and sustains the vital
communication between brand & consumer, from events to window displays and in-
store focal points. As a ‘silent salesperson’ and ‘vanguard of standards’, the
members of team collaborate closely with the buyers, merchandisers, designers,
store planners, and operations team.

BUSINESS DEVELOPMENT- This department has first sighted all the new stores
that Shopper’s Stop Ltd, is now. The main role of this department is to spear head
the expansions of shopper’s stop Ltd. It identifies new markets and taps potential of
these markets after doing thorough analysis of the city/locations They assess the
acquisition plan of the opportunity after evaluating finer parameters that will give
Shopper’s stop Ltd. The cutting edge vis-a vis customer satisfaction and competition
e.g. ideal location in particular city/ location. They do a complete financial feasibility
of a project and negotiate with the property owner. They are the one point contact
with the property developer and all other departments of Shopper’s Stop ltd. Its is
the responsibility of this department to ensure and safeguard the interest of
shopper’s stop ltd. By ensuring delivery of the project and complete legal
documentation and compliance through the associate departments including

STORE PLANNING: The Store Planning team design new stores in term of look and
feel overall ambience as well as plan renovation In the existing stores as per the
requirement s from B&M and operation. They design the visible elements in the

T.JOHN Business School 36

stores, such as flooring, wall covering, ceiling, lighting, store fixtures,
wall display panels, and branding, signage and visual spaces. They also design
invisible elements in the stores such as, air conditioning, electrical, fire fighting,
prevention system and security system. It plans and plots different categories brands
with their respective adjacencies in a floor layout. They coordinates with the brands,
designs teams for brand’s fixtures and fit outs, and help the projects team to setup
the stores at the time of handover. They along with B&M Develop new design
concept for new models.

FINANCE AND ACCOUNTS: They ensures their adequate cash flow and monitor
the funding needs of the organization besides ensuring profits and Loss Accounts
and the Balance Sheet Reflect the true and fair picture of the organization. This
team is responsible for all Statutory and internal audits of the company .Bedside’s
management of the company’s assets, they are responsible for capital and asset
accounting , revenue generation and accounting, expenses incurred , ensuring
compliance with the various statutory requirements relating to corporate entities and
are in charge of the overall financial control of the company. Budgetary control of the
company’s incomes and expenses is also key areas for this team. That’s apart, They
Also Scrutinize the financing of new projects /units.

LEGAL AND SECRETARIAL: this dept. provides support for drafting and vetting of
various agreements and other doc in respect of smooth operation of stores, and take
adequate steeps for protecting the intellectual property of company. They were
closely with all fn for compliance of various formalities required in company. The
dept. also handles the secretarial work in respect of board of directors , share
holders meeting , ESOPS and compliance of various of laws and corporate
governance requirement.

HUMAN RESOURCES: The people of Org. are its source of sustain competitive
adv. The HR function of Shoppers Stop is responsible for this most responsible and
dynamic asset of org.-people. This team is responsible for individual throughout its
journey within the org. The function seeks to maximize organizational productivity
through optimal management of people resources. Through effective and innovative
practices in associate recruitment and selection, learning and dev., reward and

T.JOHN Business School 37

recognition, compensation and associate engagement, the function
seeks to create a work environment which is truly “nothing but the best” and seeks to
make shoppers stop truly a great place to work’s

SOLUTION AND TECHNOLOGIES TEAM: To provide the Group companies

technologies solution aligns to business requirements, STT endeavors to contribute
to strategic direction of the enterprise. The world class solution offered delivered
business values by dressing the transaction lead and operational needs. We will
provide enterprise\wise competitive advantage with new and merging technologies
while partnering with vendors to outsourcers non core activities. We will collaborate
with business to serve our customer better and create an experience that sets
benchmark for the industry.

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Receiving Bay In
Customer care
Department Manager

Service manager First Citizen/
Customer service

Unit/ Co-ordinator



Receptionist &Telephone
Unit Admin/Maint. /Sec.
Head Operator

Unit Marketing Head

Unit visual Merchandiser

Executive – IB Sales
Executive- Accounts

Unit Accounts Head

Cash Assistant

T.JOHN Business School 39


1.Unit Head/Retail Manager: Topmost authority in the unit, responsibility for the
topline growth, store process and audit, improving service standards leading people,
improving profitability and resource management strategies for increasing sales,
budgeting and control and is responsible for overall store image. He/she reports to
the Area/Regional Controller.

2.Retail Operation Manager (ROM): report to the Unit Head and is responsible for
customer analysis, competition mapping, and manpower availability and shrinkage

3.Department Manager (DM): reports to ROM and is responsible for setting the
floor, manpower planning, and inventory management, achieving sales objectives,
team management and shrinkage control.

4.Unit HR Head: reports to the Unit Head and is responsible manpower planning,
recruitment selection and induction, training and development, performance
management, handling employee grievances, employee communication and policy
implementation, welfare activities and ensuring all statutory compliances are
adhered to.

5.Unit Admin and Security Head: reports to the Unit Head and is responsible for
smooth functioning of the housekeeping activities, security, and reception, for
purchase of non-trading items, maintaining fixed assets and sale scrap and fixed
assets as and when the need arises and to housekeeping, security and
administration departments are met.

T.JOHN Business School 40

6.Unit Maintenance Head: reports to the Unit Head and is responsible for
equipment, fixture, building, preventive maintenance, snag analysis and rectification
planning, vendor development and energy conversation.

7. Unit Visual Merchandising Head: reports to the Unit Head and is responsible for
visual presentation of store, focal points and windows, events, and cost and vendor

8.Unit Marketing Head: reports to the Unit Head and is responsible for execution of
all events, promotions and schemes, getting tie ups for store promotions and
catchments area study.

9.Unit Co-ordinator: reports to the Unit Head and is responsible for maintenance of
office reports, documents creation, updation of Infozone reports and collation of
sales data.

10.Executive Institutional Businesses: reports to the Unit Head and is responsible

for achievement of corporate sale target in the region allocate for the sale of gift
vouchers and corporate merchandise within budgeted discount.

11.Units Account Head: reports to the Unit Head and is responsible for all
monetary transactions in the store, proper counting for scheme recovery, revenue
control, proper accounting of concessionaire dues, sales tax payment, statuary
compliance, PICS controls and documentation, interbranch reconciliation with
services office, control functions and coordinating internal audits.

12.Executive Accounts: reports to the Unit Accounts Head and assessed him/her
in all the activities related to the accounts functions in the unit.

13.Cash assistance: reports to the Unit Accounts Head and is responsible for
monetary transaction in the store.

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14.Receiving Bay In charge: reports to the service manager/ROM and is
responsible for entire movement of stocks in and out of the system and raising inter
branch transfer.

15.Customer Care Associates: reports to the DM and is responsible for section

maintenance, sacking, merchandise arrangements, attending customer, sales
presentations, sales, stock take, and global count.

16.First Citizen Desk: This desk performs the following functions at the shop floor:

a. Timely issue of First Citizen cards to members.

b. Redemptions of First Citizen promotions.
c. Managing activities relating to First Citizen promotions.
d. Solving queries and complaints of First Citizen customers.

17.Customer Service Desk (CSD): This desk performs the following functions at
the shop floor:
a. Exchange of merchandise (provide the exchange policy is satisfied) brought
in by the customers and delivery of the same.
b. Alteration of garments with the help of tailoring staff and delivery of the same.
c. Gift-wrapping of merchandise.
d. Solving queries and complaints of the customers if any.


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- Every management trainee working as Customer care associate has

certain roles and responsibilities , which are as follows :-

a. Preparing yourself- Store opens at 11:00 a.m. Before it opens ,we should
be ready on the floor to attend the customer, by arriving at 10:30 a.m.
i) Smile on the face
ii) Positive attitude
iii) Good listener , understanding the customer
iv) Having good product knowledge
v) Making our counter clean and ready for the customer.
b. Preparing selling environment- All of us were working in their respective
departments, which indicates our selling environment . They were certain
steps that help us to prepare our selling environment like :-

i)Entry in Floor management register [FMR] – It keeps the

track of all the timings (Time- in, Lunch break, Tea break , Time-
out) of every CCA working in the department.

ii)Targets and Achievements – Every department has its own

target file , where every section has their own targets allotted for
each day. We have to update ourself by every day targets and
plan accordingly to achieve it.

iii)Knowledge on Schemes and promotion in Floor and Store

:- Depending upon the sale , store launches various schemes
and promotions , that help us to increase the sales , there by
givng us more exposure to learn so many things.
T.JOHN Business School 43
iv)Color Blocking :- It’s the process, in which the
merchandise is kept in such a way that it will attract customers
from a distance , and compel him to go for a trial.
v) Size blocking :- Merchandise to be arranged in sequence in
ascending order, according to the size.
vi) All garments to be hanged and folded neatly
vii) Checking up the shopping bags availability , it makes shopping
convenient , thery by increasing it.

viii) Isolating defective products, will prevent store form bad word of
mouth, as customer may get a bad image about the store.

ix) Ticketing signage in place :- Signage is the silent seller , they

enhances the communication so well , guiding the customer , so
that they can find their desired product.

x) Housekeeping in the section in place :- Keeping counter neat

and clean, no loitering of papers, this all makes a good
impression in the minds of customer.

xi) Correct merchandise density per fixture :- Putting right

quantity on the table , as per its capacity, to prevent overloading.


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First of all , I would like to say thanks to my Human resource
manager Miss Ameena Kulsum for allotting me my department –Mens Formal
Wear .then would like to thank my Department Manager-Mr.Ayon Mukherji , who
guided me It was a nice experience working in Shopper Stop. I was working in Mens
Formal wear, handling ‘STOP’ in-house brand of Shopper’s Stop for 1 month , later
‘AUSTIN REED’ and still I am working with it. I got lots of opportunity to :-

• Interact with customer,

• Greeting them with smile , that helped me to develop a positive attitude and
maintain a cordial relation with my customers
• Serve the customer- after greeting them, listening them patiently, understanding
their needs, addressing to them in such a way to ensure customer delight.
• Sometimes while serving customers, they became so delighted by our service ,
that they ask for our help in buying other products , except apparels , for that
purpose , I have to be update myself with store outlet , where are toys kept ,
where is the leather bags section, where my customer can get a belt for the
formal trouser she bought in my section. These all things helped to get a
understanding regarding every product.
• It was a pleasure working with Mens Formal Wear team . They helped me to
learn lot of things , I earned lot of respect from my team members.
• Saturdays and Sundays are the peak days in retail which gives us the highest
sales, therefore that day from morning till night , there is huge rush of customers ,
no of footfalls increases as both days being holidays for the customers. It gives
us lot of chance to interact with the customer, attending them and addressing to
their demands.

• All other days apart from weekends, are not so hectic, customer entry is less ,
as being week days. At times I noticed that regular customer prefer shopping in
the weekdays only , as they think that they can shop comfortably and relaxingly ,
avoiding all rushes and busy trial rooms

T.JOHN Business School 45

• During the orientation , we were taught about the concept of impulse products ,
that increases the basket size. In the floor , in my Mens Formal Wear department
that has mens formals, suits,blazers ,denims. For which we had belts as an
impulse product that helped to increase the sales in my department as well as
increasing the sales in leather section.

• Every day , we used to do global counting of merchandise kept in the counter

which I handle, it helps me to keep track of my sales , my achievement of targets,
whether m fulfilling it or not . It helps me to understand whether my convincing
ability is good enough or have some short comings. What steps I should take to
improve it , that will increase my sales and my confidence also.

3.3 Student Contribution to Organization.

I was working as a managemt trainee in Shopper’s Stop , Ladies

Western Wear Section , where we have our 5 KRA’S (key result area’s) :-

T.JOHN Business School 46

1. Punctuality- Store opens at 11:00 a.m. for the
customers, I was used to come at 12 oclock morning , (as per
my work timings )to arrange our counters, display all new stocks
according to the sizes and colours.

2. Sale- sale of the merchandise , achieving the targets as per

the schedule. Though it took time to get the product knowledge
and understanding the ways to attend customers patiently and
properly , I was managing the sales fair enough , Though I used
to come across fluctuations like weekdays when the customer
entry is less , so sale was also less. But it was compensated by
the weekends sales.

3. First Citizen memebership- It’s a unique loyalty program of

Shopper’s stop , which help it gain more of customers, in this
process we have to convince our customers to go for
membership card , for which they have to pay Rs168 only, and
they will enjoy all the benefits of the card like

• Bonus reward points on every 100 ruppes purchase

• Reimbursement of the parking charges.
• Sale previews
• Out store offers
• 2 years validity of card
• Every 10,000 purchase automatic up gradation classic
card to silver card.

• I month time extended for exchange for members.

T.JOHN Business School 47

• Tie ups with various companies like 10%
discount on Pizza hut , Kaya skin clinic, Vlcc slimming
centre, traveling packages.
• Free cd’s and belts at the time of offers.

1. KYBC- know your big customers- in this process we

keep track of our big customers whom we have attended ,
who does the purchase of Rs. 5000 or more , we have to get
their details like- name , first citizen number, amount of
purchase , transaction no. register no. etc and keep the
records in the diary of our section . In the weekends time ,
customer entry was more , I used to kybc in fair numbers ,
by handling the customer. It helps us to develop a good
relationship between them.

5. Suggestion Forms- At times customers are not satisfied with

the product , I used to suggestion forms helps us to keep track
of their complaints about the product, store or their shopping
experience. It do helps in prevention of bad publicity , by asking
them suggestion , we consider them and ensure them of no
complaints in the future.

T.JOHN Business School 48

4.1 Statement of RESEARCH
Problem :-

Comparative Brand Analysis of Austin Reed and Vanheusen

formals In Mens Formal Wear Section .


Phillips-Van Heusen Corporation is an apparel company, and the world's largest

shirt company. It owns brands such as Calvin Klein, Van Heusen, Speedo, Izod,
Arrow, Bass and licenses brands such as Geoffrey Beene, BCBG Max Azria, Chaps,
Sean John, Kenneth Cole New York, JOE Joseph Abboud and MICHAEL Michael

Phillips-Van Heusen's main headquarters are located in Manhattan, with

administrative offices in Bridgewater, New Jersey, and Los Angeles, California.
Phillips-Van Heusen has several sourcing facilities worldwide. These facilities are
located in Sri Lanka, Bangladesh, China, Honduras, Hong Kong, Indonesia, The
Philippines, and Taiwan. [1]

The corporation employs over 11,000 people worldwide.

The history of Phillips-Van Heusen can be traced back to

1876, when G. H. Bass began his shoe manufacturing
company in Maine. Separately, John M. Van Heusen and
Isaac Phillips met and formed the Phillips-Van Heusen
Corporation, and Vin Draddy acquired the rights to the Izod
name in the early 1900s.

T.JOHN Business School 49

In 1881, Moses Phillips and his wife Endel began sewing shirts by hand
and selling them from pushcarts to local Pottsville, Pennsylvania anthracite coal
miners. This grows into a shirt business in New York City that places
one of the first ever shirt ads in the Saturday Evening Post.

The Phillips-Van Heusen Corporation received a patent for a self-folding collar in

1919, which was released to the public in 1921 and was successful. The first collar
attached shirt was introduced in 1929.

The Bass Weejun was introduced in 1936. Geoffrey Beene shirts were launched in

In 1987, Phillips-Van Heusen acquired G.H. Bass. In 1995, the corporation acquired
the Izod brand, followed by the Arrow brand in 2000, and the Calvin Klein company
in 2002. [2]

After acquiring Superba, Inc. in January 2007, PVH now owns necktie licenses for
brands such as Arrow, DKNY, Tommy Hilfiger, Nautica, Perry Ellis, Ted Baker,
Michael Kors, JOE Joseph Abboud, Original Penguin and Jones New York. [3]

The corporation will begin making men's apparel under the Timberland name in
2008, with women's apparel to follow in 2009, under a licensing agreement.

Phillips-Van Heusen provides products to many popular department stores, such as

Macys, Kohls, and Dillards, both through its own labels and private label

Phillips-Van Heusen also sells its products directly to

customers through about 700 outlet stores under the
brand names Van Heusen, Geoffrey Beene, IZOD,
Bass, and Calvin Klein. The outlet stores provide
product not available through other retailers, such as
the clothing available at Bass clothing stores.

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These stores will sell the full range of Calvin Klein product at full price,
differing from existing outlet stores. The stores will be about 10,000 square feet. [5]

Phillips-Van Heusen today announced on May 28, 2008 that it has decided not to
renew its license agreements to operate Geoffrey Beene outlet retail stores and will
close its Geoffrey Beene outlet retail division by the end of fiscal 2008. The
expiration of the retail license agreements will not affect the Company's license
agreement for Geoffrey Beene brand dress shirts and men's sportswear, which has
been renewed for an additional term ending December 31, 2013.

Historically, Phillips-Van Heusen has not had a strong advertising presence of its
own, preferring to let its department store customers market their products within its

On October 4, 2007, Phillips-Van Heusen announced that it was taking over naming
rights to the Meadowlands arena currently known as Continental Airlines Arena. The
new name will be IZOD Center. The name change will be effective on October 31,
2007. The corporation will pay about $1.3 million a year over the next five years for
the naming rights, and will handle marketing for arena events.

Historically, Phillips-Van Heusen has not had a strong advertising presence of its
own, preferring to let its department store customers market their products within its

Van Heusen to launch women's wear

Van Heusen is targetting an all India sales turnover of Rs 500

crore (Rs 5 billion) in the next three to five years and would
be launching formal western wear for women in two months

The premium menswear brand was growing at the rate of 30

per cent per annum basis in the last three years and at this
growth rate it was aiming to touch Rs 500 crore in the next

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two to three years, Kedar Apshankar, assistant brand head, Van
Heusen, told a press meet in Kochi.

It has plans to launch party wear for men next month.

Van Heusen, which opened its new Flagship store in Kochi, was planning to
increase its stores to 50 from present 20 within three to five years.

The brand represents the premium executive segment in corporate wear and had
recently enhanced its range of accessories and stepped into the innerwear segment
too, he said.

What can one say about the world's largest selling dress shirt and India's biggest
premium business wear brand that will serve as a fitting introduction? The fact is that
Van Heusen has made every fashion season a landmark one. The Rs. 225-crore
brand, selling 1.5 million garments a year, has emerged as the definitive mark of
power, style and sophistication.

Van Heusen is known to bring the latest and most contemporary international styles
to the country over the years. It has a complete lifestyle range of products for men in
shirts, trousers, outerwear and knitwear apart form an extensive range of
accessories like innerwear, neckties, belts, bags, eyewear, shoes and cuff links.

This year indeed proves to be a landmark year for Van Heusen. It has not only
achieved the distinction of becoming the largest brand in the country but in order to
catapult itself into the future, it has identified two Mega opportunities - Woman and
Youth, in the Indian Demographic Landscape.

These two singular initiatives along with robust growth in premium menswear will
make Van Heusen leapfrog to Rs 600 crore in the next three years. While "Van
Heusen Woman" for the Contemporary Indian Woman will complete the Lifestyle
Offering of Van Heusen,

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From a single shop in the City of

London, Austin Reed has
transformed itself from a traditional
business into a dynamic and
progressive group with over 70
outlets in the UK and international licensees across the globe. After opening his first
shop on Fenchurch Street in 1900, our founder, Austin Reed, began the business
that would continue to carry his name for over 100 years by opening branches in
Regent Street, Oxford Street, Birmingham and Manchester.

Austin Reed is a British fashion retailer founded in 1900 known for its
menswear. It is an upmarket chain with over 70 retail outlets. Its flagship store is
located on Regent Street.

Austin Reed have re-branded their Country Casuals brand as CC

T.JOHN Business School 53

A research design is purely and simply the framework of plan from a study that
guides the collection and analysis of data. Application and specification are the main
characteristics in a research design. Marketing research designs can be classified
on the basis of the fundamental objectives of the research. There are mainly two
types of research design that are as follows –
1. Exploratory Research Design
2. Conclusive Research Design
 Descriptive Research Design
 Casual Research Design


These designs are used for some definite purpose. A number of marketing research
studies are based on such designs. It is focused on the accurate description of the
variables present in the problem.

These designs try to find a complete and accurate description of problem situation
by providing specified methods for selecting the sources for information and the
procedure for collecting the data from these sources. The data is collected in such a
manner that the ambiguous nature of cause and effect relationship in the
phenomenon is reduced to maximum extent.

T.JOHN Business School 54

 These are able to describe the characteristics of certain groups.
 Specified predictions are possible.
 Can study relationship between two or more variables.


Data collection method of two types:

The primary data are those which are collected as a fresh and for the first time and
thus happen to be original in character. The primary data is collected in the process
of questionnaire and interviews of the outlets.
The various methods of primary data collection are:
 Observation Method
 Interview method
 Questionnaire Method

The secondary data are those which have already been collected by someone else
and which have been already been passed through the statistical process.
The various sources of secondary data are:
 Company Records and Information
 Business Magazines
 Various publication of the central, state and local government

T.JOHN Business School 55

Methodology adopted for survey was questionnaire. It was a structural

Features of structural are:

1. Most of the questions are closed
2. Questionnaire was designed keeping
the requirement of the company.
3. Questions are to be asked in a logical
4. It is to be simple, direct and unbiased

Research Methodology is the way to systematically solve the research problems. It

may be understood as a science studying how research is done scientifically. In this
we study various steps that are generally adopted by a researcher in studying his
research problems along with the logic behind them.

It is necessary for the researcher to know not only the research methods/techniques
but also the methodology. Researcher also need to understand the assumptions
underlying various techniques and they need to know the criteria by which they can
decide that certain techniques and procedure will be applicable to certain problems
and other will not. We used in the context of our research study and explain why we
are using a particular method or technique and why we are not using others that
result are capable of being evaluated either by the researcher himself or others.

Research is a common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on a
specific topic. The meaning of research is a careful investigation or enquiry specially
through search for new facts in any branch of knowledge. According to Clifford
woody, research comprises defining and redefining problems, formulating
T.JOHN Business School 56
hypothesis or suggesting solutions collecting, organizing and evaluating
data. Making deductions and reaching conclusions and last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.


The purpose of research is to discover answers to questions through the
application or scientific procedures. The main of research is to find out the
truth which is hidden and which has not been discovered as yet. Though
researcher study has its own specific purpose, we may think of that research
objective as falling into a number of following broad groups -

 To gain familiarity with the phenomenon or to achieve new insights into it.
 To portray accurately the characteristic of a particular individual, situation or a
 To determine the frequency with which something occurs or with it is
associated with something else.
 To test a hypothesis of a casual relationship between variables.

Objective research problem :-

Comaparative brand analysis of Austin reed and Van heusen formals

Gives an idea about :-

1. Brand awareness of both the brands

2. Brand preference between both the brands in formal section
3. Brand loyalty
4. Customer satisfaction level
5. Complaints and suggestions by customer

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Shopper;s stop – Austin Reed

1. Name
2. Phone no :-
3. Age :-

4. Occupation :-

_ Student _Employee

_ Business _Profession

_ If others please specify.

5. Do you prefer branded clothing?


_ No


6. Are you member at the Shopper’s Stop?



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7. What you look for the most while shopping in Shopper’s
Stop ?

(Rate your preferences)



_Comfort and fitting



8 .Low cost , good fitting and comfort , variety in clours, if all are given
for formals despite of brand name , will you like to buy the brand?



9.Which brand do you prefer for formals ?

_Austin reed


If others please specify ?___________________

10. Why?_________________________-

11. What do you prefer most in this brand ?

_Formal shirts


_Formal Skirts


12.Why ?____________________

T.JOHN Business School 59

13.What influences you to buy this brand ?


_Brand name

_Comfort &Fitting

_Fashionable /Trendy

14 . To what extent you are statisfied with this brand?

_Highly statisifed


_ Neutral


_Highly dissatisfied

15. Suggestions for that particular brand :-


Thank you , dear customer for your precious time and response.

T.JOHN Business School 60


Shoppers stop is one of the leading retain chains in India,

working their as a management trainee was indeed a great pleasure We got lots
of hands on learning experience , which we generally studied in the books. Since
retail is a booming field , there are certain complexities inside that , which one
can solve easily , if one is well known of all the process. We got training on
various important issues of retail like its orgin, growth , development, contribution
of shoppers stop into it. Visual merchandising , how far its effective , how it helps
to attract more of the customers, there by retaining them.

I am given the Mens Formal Wear Section , handling AUSTIN

REED counter there , each section has a team , working in the team taught me
lots of things like

• Being humble while talking with customers.

• being patient while handling customers.
• Gaining respect among your team member by working in a
cooperative manner.
• Getting all the product knowledge of the section like fabric ,
pattern , availability of particular style.
• Update yourself with latest trends in the market in order to
address the customer needs.
• Achieving your targets as per the schedule , helps you to gain
lots of self confidence , and keep the momentum going.

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