Max Retail Organisational Study

AN ORGANISATION STUDY AT “MAX FASHION RETAIL”
CHAPTER 1
INTRODUCTION & INDUSTRY PROFILE
1.1 INTRODUCTION TO STUDY:
Background of the study Organisation is set of people working together for

accomplishment of a common objective. The roles and responsibilities are stated
clearly without any ambiguity. The positions occupied by different individuals are
presented in the form of organisation chart. Organizational structure is essential for
continuity of the mission & co-ordinates & controls the business activities.
Organization helps management to perform its actives effectively, optimum use of
technological improvement growth & diversification, creatively, effective use of
physical resources & HR.
Need for the Study:
This study is taken up to full fill the requirement of M.B.A degree course of
Bangalore University. The training is undertaken during July 2012 to August 2012
and the main purpose of the training is to know the application of the theoretical
aspects in our course in the corporate environment and gain first-hand experience and
expose ourselves to corporate policies, ethics, culture, practices, procedures, facts
about the work culture and policies of the company.
Objectives of the study:
To understand the organization structure or hierarchy of the company.
 To understand the working of the various departments.

 To enable us to gain an insight into the corporate world.
 To understand the various responsibilities and duties carried out by each
department.
RV Institute of Management Page 1

1.2 ABOUT INDUSTORY
Retailing in India is one of the business enterprises of its economy and accounts for
14to 15 percent of GDP. The Indian retail market is estimated to be US$450 billion
and one of the top 5 retail markets in the world. India is one of the fastest growing
retail markets in the world. India‟s retailing industry is essentially owner mannered
small shop accounts for more than 90%.
In 2010, larger format convenience store and super markets accounted for about 4 %
of the industry, and these were only in large urban centres.
Until 2011, Indian central government denied foreign direct investment (FDI) in multi
brand retail, forbidding foreign groups from any ownership in supermarkets,
convenience store or any retail outlets. Even single brand retail was limited to 51%
ownership and a bureaucratic process.
In November 2011, India‟s Central government announced retail reforms for both
multi brand stores and single brand stores. These market reforms paved the way for
retail innovation and competition with multi brand retails such as Wal-Mart, Carefour
and Tesco, as well as single brand majors such as IKEA, NIKE and APPLE. The
statement flickers intense activism, both in opposition and support for the reform.
In December 2011 under pressure from the opposition, Indian government placed the
retail reforms on hold till it reaches a consensus.
In January 2012, India approved reform for single brand stores welcoming anyone in
the world to innovate in Indian retail market with 100% ownership but imposed the
requirement that the single brand retailer source 30% of its goods from India. Indian
government continues the hold on retail reforms for multi brand stores.
India has a large and aspirational middle-class of 75 million households or 300
million individuals. Middle-class consumers want products which are value-driven.
India also has 500 million Indians under the age of 25. Young Indians are driving
purchases in mobile phones, fashion, accessories, food and beverages, quick service
restaurants, etc. Young Indians have access to more money than before and with this

have come independence, aspirations and a demand for products. According to the
2010 World Wealth Report by Capgemini and Merrill Lynch Wealth Management, the
rise in the total number of millionaires (or Indians with investible assets, excluding
main residence and consumer durables, of more than US$ 1 million) grew almost
51%, the second fastest in the Asia Pacific region.
The earliest form of retail merchandising was the exchange of food and domestic
goods. Later came traders and peddlers, and by 3000 BC shops had become common.
During the Greek and Roman period, stores, including many specialty shops,
developed in the form of open booths, attracting large cosmopolitan crowds. After the
decline of the Roman Empire, barter became more important, but by the 14th century,
retail trade again assumed importance. Merchants, who in early times were viewed
with suspicion, rose in the social scale. Small stores, each carrying its special line of
goods, reached their peak in the 18th century. The wholesale business developed, and
travelling salesmen and standard prices came into general use.
In the late 19th century, the department store came into being, a large-scale general
store or a combination of single-line stores in which each line of merchandise is
operated as a separate department. Such stores provided the convenience of easy
accessibility to a large variety of goods. Modern department stores have been vital to
the development of shopping centres and malls, huge retail developments that contain
a wide variety of stores and services. Chain stores, though known in earlier times, first
developed their modern form in 1859, when the Great Atlantic and Pacific Tea
Company (A&P) standardized the quality and price of all merchandise sold in its
stores. Through central management, quantity purchasing, standardization of business
methods, and limited individual service, the chains are often able to sell their goods
well below prices charged by independent stores. Chain stores were once typified by
five-and-ten-cent stores (e.g., F. W. Woolworth Company, which operated such stores
until 1998), but the most common forms now are discount superstores (e.g., Wal-
Mart; see Walton, Sam), bakeries, tobacco stores, drugstores, groceries, and
department stores.
Consumers' cooperative stores (see cooperative movement) have been established in
Europe and the United States. Discounting merchandise became widespread after
World War II, and stores specializing in discounted merchandise have become the
fastest growing segment of the retail industry.

The "discount club," where shoppers must pay a fee to become members and name-
brand products are sold at a discount (often packaged in multiples or very large
containers), became popular in the 1990s.
INDIAN RETAIL INDUSTRY

The India Retail Industry is the largest among all the industries, accounting for over
10 percent of the country GDP and around 8 per cent of the employment. The Retail
Industry in India has come forth as one of the most dynamic and fast paced industries
with several players entering the market. But all of them have not yet tasted success
because of the heavy initial investments that are required to break even with other
companies and compete with them.
The India Retail Industry is gradually inching its way towards becoming the
next boom industry. The total concept and idea of shopping has undergone an
attention drawing change in terms of format and consumer buying behaviour,
ushering in a revolution in shopping in India. Modern retailing has entered into the
Retail market in India as is observed in the form of bustling shopping centres, multi-
storied malls and the huge complexes that offer shopping, entertainment and food all
under one roof. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working women population and
emerging opportunities in the services sector are going to be the key factors in the
growth of the organized Retail sector in India. The growth pattern in organised
retailing and in the consumption made by the Indian population will follow a rising
graph helping the newer businessmen to enter the India Retail Industry. In India the
vast middle class and its almost untapped retail industry are the key attractive forces
for global retail giants wanting to enter into newer markets, which in turn will help the
India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent
annually.
Modern retail in India could be worth US$ 175-200 billion by 2016. The Food
Retail Industry in India dominates the shopping basket. The Mobile phone Retail
Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent
per year. The future of the India Retail Industry looks promising with the growing of
the market, with the government policies becoming more favourable and the emerging
technologies facilitating operations.

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and
to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per
cent. As a democratic country with high growth rates, consumer spending has risen
sharply as the youth population (more than 33 percent of the country is below the age
of 15) has seen a significant increase in its disposable income. Consumer spending
rose an impressive 75 per cent in the past four years alone. Also, organised retail,
which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per
cent to touch US$ 107 billion by 2013. India is the country having the most
unorganized retail market. Traditionally it is a family livelihood, with their shop in the
front and house at the back, while they run the retail business. More than 99%
retailers function in less than 500 square feet of shopping space. Global retail
consultants KSA Techno-park have estimated that organized retailing in India is
expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is
estimated at around Rs 900,000 crore, of which the organized sector accounts for a
mere 2 per cent indicating a huge potential market opportunity that is lying in the
waiting for the consumer-savvy organized retailer.
Purchasing power of Indian urban consumer is growing and branded
merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food
and even Jewellery, are slowly becoming lifestyle products that are widely accepted
by the urban Indian consumer. Indian retailers need to advantage of this growth and
aiming to grow, diversify and introduce new formats have to pay more attention to the
brand building process. The emphasis here is on retail as a brand rather than retailers
selling brands. The focus should be on branding the retail business itself. In their
preparation to face fierce competitive pressure, Indian retailers must come to
recognize the value of building their own stores as brands to reinforce their marketing
positioning, to communicate quality as well as value for money. Sustainable
competitive advantage will be dependent on translating core values combining
products, image and reputation into a coherent retail brand strategy. There is no doubt
that the Indian retail scene is booming. A number of large corporate houses Tata,
Raheja, Piramal and Goenka have already made their foray into this arena, with
beauty and health stores, supermarkets, self-service music stores, new age book
stores, every-day-low-price stores, computers and peripherals stores, office equipment
stores and home/building construction stores.
Today the organized players have attacked every retail category. The Indian retail

scene has witnessed too many players in too short a time, crowding several categories
without looking at their core competencies, or having a well thought out branding
strategy.
1.3 TYPES OF RETAIL SHOPS

Department store:
A department store is a retail establishment which satisfies a wide range of durable
goods and products to the consumer's personal and residential needs and at the same
time offering the consumer a choice of multiple merchandise lines, at variable price
points, in all product categories. Department stores usually sell products including
clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting
goods, do it yourself, paint and hardware and additionally select other lines of
products such as food, books, jewellery, electronics, stationery, photographic
equipment and baby and pet needs. Certain department stores are further classified as
discount stores. Discount department stores commonly have central customer
checkout areas, generally in the front area of the store. Department stores are usually
part of a retail chain of many stores situated around a country or several countries.
Discount stores:
A discount store is a type of department store, which sells products at prices lower
than those asked by traditional retail outlets. Most discount department stores offer a
wide assortment of goods; others specialize in such merchandise as jewellery,
electronic equipment, or electrical appliances. Discount stores are not variety stores,
which sell goods at a single price-point or multiples thereof. Discount stores differ
from variety stores in that they sell many name-brand products, and because of the
wide price range of the items offered. Currently Wal-Mart, the largest retailer in the
world, operates more than 1,300 discount stores in the U.S. Target and Kmart are Wal-
Mart's top competitors. Wal-Mart as of 2004, owns 90% of the Asda chain of
supermarkets in the UK. As of 2008, the main rival to Asda is Tesco.
Warehouse stores:
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial areas of cities and towns and

villages. They usually have loading docks to load and unload goods from trucks.
Sometimes warehouses are designed for the loading and unloading of goods directly
from railways, airports, or seaports. They often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets loaded into pallet racks.
Stored goods can include any raw materials, packing materials, spare parts,
components, or finished goods associated with agriculture, manufacturing, or
commerce.
Variety stores:
A variety store or price-point retailer is a retail store that sells inexpensive items, often
with a single price for all items in the store. Typical merchandise includes cleaning
supplies, toys, household goods and gardening equipment. Formerly many variety
stores had lunch counters for inexpensive meals. In India example of variety store is
Usha product store.
Demographics:
Demographics are current statistical characteristics of a population. These types of
data are used widely in sociology (and especially in the subfield of demography),
public policy, and marketing. Commonly examined demographics include gender,
race, age, disabilities, mobility, home ownership, employment status, and even
location. Demographictrends describe the historical changes in demographics in a
population over time (for example, the average age of a population may increase or
decrease over time). Both distributions and trends of values within a demographic
variable are of interest. Demographics are about the population of a region and the
culture of the people there. Here it includes retailers that aim at one particular
segment.
Mom-And-Pop:
It is a retail outlet that is owned and operated by individuals which focuses on a range
of products that are very selective and few in numbers. These stores are seen in local
communities and often are family-run businesses. The square feet area of the store
depends on the store holder.
Specialty stores:

Specialty stores are a typical specialist store gives attention to a particular category
and provides high level of service to the customers. A pet store that specializes in
selling dog food would be regarded as a specialty store. However, branded stores also
come under this format. For example if a customer visits a Reebok or Gap store then
they find just Reebok and Gap products in the respective stores.
General store:
General store a rural store that supplies the main needs for the local community
Convenience stores: is essentially found in residential areas. They provide limited
amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases.
Hypermarkets:
Vast self-service warehouse-cum-retail outlet that combines the features of
a supermarket, department store, discount store, and specialty store in one location.
Also is called hyper mart. In commerce, a hypermarket is a superstore combining a
supermarket and a department store. The result is an expansive retail facility carrying
a wide range of products under one roof, including full groceries lines and general
merchandise. In theory, hypermarkets allow customers to satisfy all their routine
shopping needs in one trip.
Supermarkets:
A supermarket, a large form of the traditional grocery store, is a self-service shop
offering a wide variety of food and household products, organized into aisles. It is
larger in size and has a wider selection than a traditional grocery store, but is smaller
and more limited in the range of merchandise than a hypermarket or big-box shop.
Malls:
The Malls has a range of retail shops at a single outlet. They are loaded with products,
food and entertainment under a roof. In such type of retailer customer can get a lot of
products in a single shop. It is beneficial for the customer in term of time saving and
in term of money saving.
Category killers or Category Specialist:

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

category for lower prices a retailer can "kill" that category for other retailers. For few
categories, such as electronics, the products are displayed at the centre of the store and
sales person will be available to address customer queries and give suggestions when
required. Other retail format stores are forced to reduce the prices if a category
specialist retail store is present in the vicinity.
E-retailers:
E-retailers customer can shop and order through internet and the merchandise are
dropped at the customer's doorstep. Here the retailers use drop shipping technique.
They accept the payment for the product but the customer receives the product
directly from the manufacturer or a wholesaler. This format is ideal for customers who
do not want to travel to retail stores and are interested in home shopping. However it
is important for the customer to be wary about defective products and non-secure
credit card transaction. Example: Amazon, Pennyful and eBay.
Vending Machines:
This is an automated piece of equipment wherein customers can drop the money in
the machine andacquire the products. It is more user friendly for the customer then
other types of the retails. In this customer can achieve his product easily. For Example
on the railway station by putting the coins and you can check your weight. And by
putting money in machine and get soft-drink product. Some stores take a no frills
approach, while others are "mid-range" or "high end", depending on what income
level they target.
Other types of retail store include:
Automated Retail stores:

Automated retail is the category of self-service, standalone kiosks in heavily
trafficked establishments such as airports, malls and resorts. The kiosks are usually a
turn-key solution with the necessary hardware, technology and services required to
maintain an automated, small-footprint retail store. Consumers select products using a
touch screen interface, pay for purchases using a credit or debit card and then the
product is dispensed, sometimes via an internal robotic arm in the machine.

Big-box stores:
A big-box store (also supercenter, superstore, or megastore) is a physically large retail
establishment, usually part of a chain. The term sometimes also refers, by extension,
to the company that operates the store. The store may sell general dry goods in
which case it is a department store, or may be limited to a particular specialty (such
establishments are often called "category killers") or may also sell groceries, in
which case some countries use the term hypermarket.
Convenience store:
A convenience store, corner store, corner shop, or bodega (in Spanish-speaking areas
of the United States), is a small store that stocks a range of everyday items such as
groceries, toiletries, alcoholic and soft drinks, tobacco products, and newspapers.
Such stores may also offer money order and wire transfer services. They differ from
general stores and village shops in that they are not in a rural location and are used as
a convenient supplement to larger stores. A convenience store may be part of a
gas/petrol station. They may be located alongside busy roads, in urban areas, or near
railway stations or other transportation hubs. In some countries, convenience stores
have long shopping hours, some being open 24 hours. Convenience stores are usually
more expensive than regular grocery stores or supermarkets, which they make up for
with greater convenience by existing at more locations and having shorter cashier
lines.
General store:
A general store, general merchandise store or village shop is a rural or small town
store that carries a general line of merchandise. It carries a broad selection of
merchandise, sometimes in a small space, where people from the town and
surrounding rural areas come to purchase all their general goods. The store carries
routine stock and obtains special orders from warehouses. It differs from a
convenience store or corner shop in that it will be the main shop for the community
rather than a convenient supplement.

1.4 PLAYERS IN MARKET
AV Birla Group:
Currently, there are over 575 supermarkets and 12 hypermarkets. All the supermarkets
are branded 'More.' and the hypermarkets are branded 'More Megastore'. The
company has over 11,000 employees and has a pan-India presence more supermarkets
are neighbourhood stores with the core proposition of offering value, convenience and
trust to the customers and averaging 2,500 square fit areas. The hypermarkets are self-
service superstores offering value and range in food and non-food products and
services at a single location. Hypermarkets are located in large catchment areas and
encourage mass consumption with discount prices and substantial depth of assortment
with an average store size of 55,000 square fit shopping area. Within a short span of
less than three years, more has more than one million members as part of its loyalty
programme. More has also launched a huge range of private labels in food and
grocery, staples and apparel which have already obtained a significant share of
category as well as salience with the consumer. It has a strong presence in apparel
retail and owns renowned brands like Allen Solly , Louis Phillipe , Trouser Town, Van
Heusen and Peter England. The company has investment plans to the tune of Rs
10000 – 12000 crores till 2014.
Trent:
It is a subsidiary of the Tata group it operates lifestyle retail chain, book and music
retail chain, consumer electronics chain etc. Trent is a retail operations company that
owns and manages a number of retail chains in India. Established in 1998, Trent runs
lifestyle chain Westside, one of India‟s largest and fastest growing chains of lifestyle
retail stores, Star Bazaar, a hypermarket chain, Landmark, books and music chain,
and Fashion Yatra, a complete family fashion store. Westside, the lifestyle retail chain
registered a turnover of Rs 4.58 million in 2014.
Landmark Group:
Founded in 1973 in Bahrain, the Landmark Group has successfully grown into one of
the largest and most successful retail organizations in the Middle East and India. An
international, diversified retail and hospitality conglomerate that encourages

entrepreneurship to consistently deliver exceptional value, the Group operates over

1300 outlets encompassing over 20 million square feet across the GCC, India, Egypt,
Turkey, Jordan, Lebanon, Yemen, Sudan, Kenya, Libya, Nigeria and Pakistan. The
Group employs over 40,000 people and invested Rs. 400 crores to expand Max chain,
and Rs100 crores on Citymax 3 star hotel chain. Lifestyle International is their
international brand business. Landmark Group has successfully grown into one of the
largest and most successful retail organizations in the Middle East and India.
K Raheja Corp Group:

The K. Raheja Corp Group is recognized as one of India's biggest retail houses. The
group‟s flagship brand Shopper‟s Stop is spread across the country and has more than
10n branches. Shopper‟s Stop is the only member of the Intercontinental Group of
Departmental Stores (IGDS). The IGDS is an organisation that consists of 30
experienced retailers from all over the world. K Raheja has a turnover of Rs8.75
billion which is expected to cross US$150 million mark by 2014. Segments include
books, music and gifts, apparel, entertainment etc.
Reliance:
Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited under
Mukesh Ambani is Reliance Group‟s foray into organized retail. RRL is based on the
growth strategy of backward integration, and it generates inclusive growth and
prosperity for farmers, vendor partners, small shopkeepers and consumers. RLL is the
second largest retailer in India. Its retail outlets offer foods, groceries, apparel and
footwear, lifestyle and home improvement products, electronic goods, and farm
implements and inputs. The company‟s outlets also provide vegetables, fruits, and
flowers. Reliancehas more than 300 Reliance Fresh stores, they have multiple formats
and their sale is expected to be 120,000 crores.
Pantaloons:
Pantaloons Retail has 450 stores across the country and revenue of over Rs. 20 billion
and is expected to touch 30 million by 2010. Segments include Food & grocery, e-
tailing, home solutions, consumer electronics, entertainment, shoes, books, music &
gifts, health & beauty care services.

Provogue:
Provogue was incorporated on November 1997 as Acme Clothing. It is engaged in
retailing of apparels and accessories in men and women segment. The company
launched its brand „Provogue‟ in March 1998.The name was changed to present one
on March 2005. Company‟s brands are retailed through leading national chain stores
such as Shopper's Stop, Lifestyle, Globus, and Westside etc. Total Income - Rs.
5842.972 Million (year ending Mar 2011) Net Profit - Rs. 334.054 Million (year
ending Mar 2011).
Raymond Limited:
Raymond was incorporated in 1925 and is a leading Indian textile major. The
company is part of global conglomerate Raymond Group. Raymond was the first in
1959 to introduce a polywool blend in India to creating the world's finest suiting
fabric the Super 240s made from the superfine 11.6 micron wool. Total Income - Rs.
19590.372 Million (year ending Mar 2012).
Arvind Limited:
Arvind Limited started in the year 1931. With the aim of manufacturing the high-end
superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring
spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in
those days to start along with spinning and weaving facilities in addition to full-
fledged facilities for dyeing, bleaching, finishing. Total Income - Rs. 36724.9 Million
(year ending Mar 2012).
Arrow Textiles:
Arrow Textiles was incepted in 1983 as Arrow Webtex. It has been manufacturing
elastic and non-elastic tapes. The company has grown steadily and gradually,
expanding its capabilities as a garment trim supplier by adding woven labels and
printed labels in 1992. Merchandisers require that suppliers of trims have many
qualities. To witness quick turnaround of samples, perfect colour matching, colour
fastness. Total Income - Rs. 296.647315 Million(year ending Mar 2011) .Net Profit -
Rs. 13.745621 Million (year ending Mar 2011).

Subhiksha:
Subhiksha is a Chennai based decade old, no frills, food, grocery, pharma and
telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital
of Subhiksha. It has more than 500 stores across the country covering a retail space of
more than 1 million sq. ft. with a registered turnover of Rs 3.34 bn in 2006. It has a
planned investment of Rs. 300 Cr. to ramp up its operations to 1200 stores by 2008.
Bharti-Walmart:
In Bharti WalMart plans include US$ 7 billion investment in creating retail network
in the country including 100 hypermarkets and several hundred small stores. They
have signed a 50:50 percent joint venture agreement with Wal-Mart. Wal-Mart will do
the cash & carry while Bharti will do the front-end.
RPG group:
RPG group is One of the first entrants into organized food & grocery retail with Food
world stores in 1996 and then formed an alliance with Dairy farm International and
launched health & glow (pharmacy & beauty care) outlets. Now the alliance has
dissolved and RPG has Spencer‟s Hyper, Super, Daily and Express formats and Music
World stores across the country. RPG has 6 lakh sq. ft. of retail space and has
registered a turnover of Rs 5.5 billion in 2012. It is planning to venture into books
retail, with the launch of its own bookstores “Books and Beyond” by the end of 2013.
An IPO is also in the offering, with expansion to 450+ Music World, 50+ Spencer's
hyper outlets covering 5 million sq. ft. by 2012.

1.5 INDUSTRY VOLUME

The Indian retail industry is valued at $450 billion, with organized retail cornering 4.5
%. The organized pie is expected to see a growth at a CAGR of 37 %.
Size of the industry:

By 2014 the organized Retail Sector in India is expected to triple its size. The food
and grocery retail sector is expected to multiply five times in the same time frame.
The market size of Indian retail industry is about US $450 billion presently.
Output per annum
With growing market demand, the industry is expected to grow at a pace of 25-30%
annually.
Position in world market
Today India is the fifth largest in the world in terms of Retail Industry
Market capitalization
In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of
the Indian retail market is estimated to be around Rs. 22, 00,000 crore ($450 billion)
and the annual growth rate is 5.7%.

1.6 CURRENT SCENARIO

The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years.
As a result, the consuming class with annual household incomes above Rs 90,000 is
expected to rise from about 370 million in 2006-07 to 620 million in 2011-12.
Consequently, the retail business in India is estimated to grow at 13 per cent annually
from USD 322 billion in 2006-07 to USD 450 billion in 2011-12,”
The study also shows that the unorganized retail sector is expected to grow at about
10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496
billion in 2011-12.
The turnover for retail trade measured in current prices increased by 1.8 percent from
July 2011 to July 2012. Retail trade for consumables (such as goods sold in
department stores and specialized grocery stores) showed an increase of 2.4 percent
while durables (such as clothing stores, furniture stores, second-hand goods stores and
mail order houses) increased by 1.2 percent.
The retail trade sales volume increased by 0.3 percent from June 2012 to July 2012.
During the last three-month period (May to July), the sales volume decreased by 0.1
percent compared to the previous three-month period (February to April).
FDI in retail
The government has cleared the most awaited reforms allowing up to 51 per cent in
Foreign Direct Investment (FDI) in multi-brand retail, paving way for the
international multi-brand retailers interested to set up shop in India.

CHAPTER-2
ORGNISATION AND PRODUCT PROFILE
2.1 Company History

About land mark group:
Founded in 1973 with a single store in Bahrain, the Landmark Group has successfully
grown into one of the largest and most successful retail organisations in the Middle
East. An international, diversified retail conglomerate that encourages
entrepreneurship to consistently deliver exceptional value, the Group operates over
1,200 outlets encompassing a retail presence of over 18 million square feet
across the GCC, Jordan, India, Egypt, Turkey, Lebanon, Kenya, Sudan, Yemen,
Libya, Nigeria and Pakistan. The Group employs over 40,000 employees.
The Landmark Group provides a value-driven product range for the entire
family through a diverse portfolio of core retail brands. Centrepoint (a destination
bringing together the Group‟s core retail brands), Babyshop (one-stop destination for
kids between 0-16 years) Shoe Mart (multi-brand footwear and accessories store)
Splash (multi-brand fashion retailer) Lifestyle (home décor, fashion accessories,
beauty products, gifts and much more) Beautybay (beauty, health and well-being
store); Iconic (fashion, art, make up, salon, café, and gadgets); Home Centre (a
complete home experience) Q Home Décor, (premium home ware, furniture and
home accessories store), Candelite (snacks and confectionery store) and Emax (large
format electronics store). Landmark International (a division that includes
international franchise brands New Look, Koton, Reiss and Lipsy) Shoe Mart
International Footwear Division (a division that includes franchise footwear brands
Kurt Geiger, Ecco, Pablosky, Dumond, Nose, Radley, Foot Solutions, Steve Madden
and Carpisa). The Group also includes value retail brands such as Max (value fashion
and footwear store) and Shoexpress (value footwear and accessories store). The
offerings have evolved to be the preferred choice for consumers and positioned as
„category killers‟.
An international retail company that grows with its customers, the Group continues to
capture greater market share in the Middle East. As it ventures into new markets, the
company remains focused on the needs of its customers. Quality for Landmark is not
a question of price. Across its retail concepts, the company strives to provide value at

every price point, a strategy that has helped the Group achieve a consistent annual
growth rate of 23 per cent. The Group was awarded the Retail Company of the
Year at the Arabian Business Awards in 2010, Business Excellence award in the
Re-export category at the Mohammed Bin Rashid Al Maktoum Business Awards 2008
& 2010, Retailer of the Year at the Retail City Awards 2008, the Middle East Retailer
of the Year at the Retail Middle East Awards in 2007 and 2008, the Most
Admired Middle East Retailer of the Year and the Most Admired Retail
Company of the Year at the Retail Middle East Awards 2011. Besides retail, the
Group has also diversified into leisure, food and hotels segments with Fun City
(chain of indoor entertainment centres for children and teens); Foodmark (a division
that includes franchise and joint venture brands such as Mango Tree, Mango
Tree Bistro, Carluccio‟s, Chi‟ Zen, Max‟s, The Meat Company, Tribes, La
Gaufrette, Bazerkhan and Ushna; as well as the home-grown brand Wild Ginger and
Zafran), Spaces (grooming and relaxation centres), Balance Wellbeing 360 (includes
holistic Wellness Club and Balance Café), Citymax Hotels (comfortable budget
hotels) and Fitness First (fitness and wellness centres) and iCare Clinics (Primary
healthcare clinics for the family).The Landmark Group has also created a
comprehensive infrastructure including its own logistics and distribution division
to support its retail operations. Landmark‟s Logistics and Re-distribution Centre is
one of the largest privately owned and operated re-distribution centres in the Jebel Ali
Free Zone. It handles up to 56,000 containers on an annual basis and is spread across
a sprawling 3.1 million square feet, equipped with state-of-the-art systems.
A company that is founded on sound ethical fundamentals, the Group also seeks
opportunities to contribute to the societies and communities where it operates
Responsibility (CSR) is not merely about charity, but also about playing a more
responsible part in the society, be it within the organisation or towards its
stakeholders, environment, society and the world at large.
In 2009, the Landmark Group adopted diabetes awareness as part of its long term
CSR initiative. An initiative that aims to increase awareness amongst people regarding
the condition, Beat Diabetes was kicked off in the UAE. Today „Beat Diabetes‟ has
a presence seven countries namely UAE, Kuwait, Oman, Qatar, Bahrain, KSA and
India In 2011 over 35,000 people walked with the Group for the cause and free blood
glucose tests were conducted for over 40,000 people. In India, the Group‟s
Chairman, Micky Jagtiani initiated the LIFE Trust programme (Landmark

International Foundation for Empowerment) in 2000. LIFE focuses on

rehabilitating the less fortunate through various programmes and initiatives such as
delivering non-formal education in rural areas, setting up health centres in urban
slums as well as training centres for the underprivileged youth and imparting life
skills training.
ABOUT MAX FASHION RETAIL
MAX is the international value fashion brand of the Dubai based Landmark Group.
The brand was launched in the UAE in May 2004 with a unique concept of delivering
international fashion & value to the discerning shopper.
Max was introduced in India with its 1st store in Indore in 2006 offering apparel,
footwear & accessories for the entire family; for women, men, children including a
fashionable range for infants. With a great range of western & ethnic wear for the
young shopper, it makes a perfect shopping destination for people for all age groups.
At MAX, shoppers can expect the latest in international fashion from around the
globe & an excellent range to choose from; all of this offered at great prices in a
world class shopping environment. Max retails its own label merchandise of in house
designs and planned colour palettes for the season. Every season it introduces a fresh
collection of international designs specially customized to the Indian market. The
brand adapts to the changing needs of the shopper every season and accordingly
introduces new designs, silhouettes & fabrics. Today, MAX is the largest value
fashion brand in the Middle East with over 200 stores across 15 countries. In India,
the brand in the next 2 years, will take its current store count of 40 to 75.Max offers
fashion clothing, footwear, accessories and household products at amazing value, all

under one roof Launched in UAE in May 2004, Max is today the largest value fashion
retail chain in the Middle East. Max caters to the mid-market section of the
population. With 114 stores across UAE, KSA, Jordan, Kuwait, Bahrain, Qatar,
Oman, Turkey, Egypt, Yemen & India, MAX plans to expand its network in more
potential markets within the Middle East & beyond. With stores that typically
measure 18,000 - 30,000 sq. ft., Max retails private label clothing for men, women
and children as well as footwear and home accessories. A great shopping experience
with fashionable products at superb value is an assurance that makes Max customers
"Look good. Feel good."
CSR (Corporate Social Responsibility)

Max along with its parent company (landmark) come together as and force, to make a
difference in people‟s live, supporting landmark group sponsorship at breast cancer
awareness campaign across its entire store in UAE. Max retail helped spread the
message providing details of tree screening. While raising money for a local breast
cancer support group. A gesture that sow max and landmark group bond with the local
community while doing its share for global awareness about breast cancer.
Adding support and individual level, every staff member on the shop floor as well as
the corporate office supported breast cancer badges and pushed the sale at the badges
to raise as much money and increase awareness of the campaign.

Max India Proposition
Key Facts about MAX India:
 Landmark Group (Dubai) launches the first Max Store at Indore in March
2006
 Contemporary fashion at affordable prices.
 International design & ambience.
 Average Store size 18,000 sq. ft.
 Family store with core Target audience between 18- 35 yrs.
 22 stores functional
2.2 VISION AND MISSION OF THE COMPANY
Vision
To create a truly global brand that provides growth opportunities for the company and
its employees, whilst achieving its goal of becoming the number one value fashion
retailer across the Middle East & India.

Mission
 Be a market leader in the field of value retailing.

 Provide fashionable products at affordable prices.
 Be innovative, cost effective and globally competitive.
 Exceed our customer‟s expectations.
 Provide opportunities of growth for our employees.
Core Values
 Constant focus and development on the product & value offered.
 Continuous improvement of the customer‟s shopping experience.
 Commitment towards staff training & development.
 Encouraging open work culture.
2.3 MILE STONES OF COMPANY
IN YEAR 06-07 Max started and in that year the sale was 27 cr and from then to now
in YEAR 11-12 the sales are estimated to be Rs. 650 cr.
 One Million Sq. Ft (Retail Space)
 Rs. 1,057 Cr. Sales
 Sell thru 92% (Post EOSS)
 LFL Target 30%
 Sales Mix 93% from fresh season
 8 new stores in Andhra –Karnataka Region
 4 each in Andhra & Karnataka

2.4 PRODUCT AND SERVICE PROFILE
Max Retail operation area is Retail in garment product like Western wear collection,
Ethnic collection, Kids Wear collection, Means Wear collection, Foot Wear collection,
Accessory and Concessionaires items are available in max retail store. In Max Retail
4th block Jay Nagar total products are arrange according to the customer need and
according to the Marketing Department product promotion and strategy.
 WESTERN WEAR DEPERTMENT

 ETHINIC DEPARTMENT
 KIDES WEAR DEPARTMENT
 MEANS WEAR DEPARTMENT
 FOOT WEAR DEPARTMENT
 ACCESSORIES
 CONCESSIONAIRIES
According to these department products are arrange in sub department. And these
categories are also helpful for the customer selection of the product.
WESTERN WEAR DEPERTMENT

In western Wear department items available are:
 SPORTY (Sports T-shirts and Track pants) these are product of Max, Jockey,
Kappa, FAME and Denizen Company.
 YOUNG/SLIM (T-shirts/shirts, Trousers & Skirts) for the young age group
from 16 to 26 years. And Company is max.
 CORELINE/COMFORT (T-shirts/shirts, Trousers & Skirts)
 LINGERIE ZONE (Inner Wear) (Bra & Panty)
 NIGHT WEAR (Gowns, Sets, Knit Top, Chemise)
 DENIM ZONE (Denim Bottoms, T-shirts, Shirts)
ETHNIC DEPARTMENT
In Ethnic wear department products are regard to the festival and tradition. And on the
time of festival season product sales are generally higher then rest of period.

 FUSION (Zone) - Skirts (long and short),Kurti, Short Kurta

 TRADITIONAL (Zone)medium kurta , long kurta , salwar ,chudidar
KID’SWEAR DEPARTMENT
In kids wear department have one of the best collections of garment. Many times this
department has been appreciated by the higher authority of Max Retail. And kids wear
department always have attraction point for the customer. In kids wear department
products are arranged based on the not on the size but on base on the age group. Age
group is starting to 0 to 3 month infant to 8 to 14 years boys and girls. These products
are presented through planogram and in planogram product are based on story like
sporty and angel story. These product are belongs to Max brand product.
 INFANT BOYS (ZONE) T-shirts, Shirts, Trousers, Denims

 2-8 BOYS (ZONE) T-shirts, Shirts, Trousers, Denims
 8-14 BOYS (ZONE) T-shirts, Shirts, Trousers, Denims
 INFANT GIRLS(ZONE) T-shirt, Shirt, Trousers, Skirts, Denims
 2-8 GIRLS (ZONE) T-shirt, Shirt, Trousers, Skirts, Denims
 8-14 GIRLS (ZONE) T-shirt, Shirt, Trousers, Skirts, Denims
MENS WEAR DEPARTMENT
 Formals (zone) shirts & trousers

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

In foot wear department products are from Max company product and some of less
popular brand like 360 company product.
 MENS Shoes (Formal, Casual, Sports) Sandals, Slippers
 LADIE High Heel, Medium Heels & Flats, Sports & Casual Shoe

 KIDS Infants, Girls & Boys Shoes and Sandals

 HOSIERY Socks / Shoe Polish / Shoe Brush Shoe Horn
ACCESSORIES
Accessories mainly comprise of:
Necklace Bracelet Earring
Anklets Clutches Clips
Caps Gift Items Bags
Albums Photo Frame Ties
Leather
CONCESSIONAIRES
These are brands like Peter England, John Players, Bossini, Levis, Jockey, Etc., which
form part of MAX stores offerings.
MAX SUB DEPARTMENTS
Men’s Wear:
Men‟s Wear department is placed on third floor, and here all types of man‟s items are
available. Formals, Semi Formals, Fashion Formals, Casual Non Denim, Denim,
Active Wear, Inner & Sleep Wear
Kid’s Wear:
Kid‟s wear department is placed on second floor and all kids and infants are available
on this floor (2 – 8 years (Boys & Girls).
Women’s Wear:
Women‟s Wear department is placed on ground floor and all types of women‟s items
available on this floor. Core, Slim, Denim, Sports, Night Wear
Women’s Ethnic Wear:
Ethnic Wear department is placed on first floor and all ethnic garments, Kids, Menes,
Ladies, Traditional, and Fusion available there.

2.6 COMPETITORS ANALYSIS

Comparisons among the Retail Stores:
(Reliance, big bazaar and life style)
Reliance retail limited:

(RRL), a subsidiary of Reliance Industries Limited under Mukesh Ambani, is
Reliance Group‟s foray into organized retail. RRL is based on the growth strategy of
backward integration, and it generates inclusive growth and prosperity for farmers,
vendor partners, small shopkeepers and consumers.
RLL is the second largest retailer in India. Its retail outlets offer foods, groceries,
apparel and footwear, lifestyle and home improvement products, electronic goods, and
farm implements and inputs. The company‟s outlets also provide vegetables, fruits,
and flowers.
Subsidiaries & division under Reliance Retail are:

Reliance Fresh - Retail Outlets of fruits, Vegetables & Groceries
Reliance Digital - Consumer Electronics retail Store
Reliance Jewels – Jewellery
Reliance Time Out - Lifestyle store of Books, Music, Movies, Toys, Gaming,
Fragrances, Stationery
Reliance Trends - Apparel and Clothing
During the year 2011, RRL opened 51 new stores pan India, taking the total to 100
stores across key markets in the country. Across India, Reliance Retail serves over 2.5
million customers every week. Its loyalty programme, "Reliance One", has the
patronage of more than 6.75 million customers. RLL has employee strength of above
5001

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

Jogeshwari, Mumbai Industry-retail Promoter-kishorebiyani Parent-Pantaloon Retail
India Ltd Punchline- “Issesastaauracchakahinnahin” Currently 106 outlets India‟s first
hypermarket retail outlet Approx. 50000 sq. fit
One stop shopping at discounted prices Provides best products at best prices Targets
price-conscious majority segment of customers Classless destination Big-sized Indian
“Mandi”- Big Bazaar. Started purely as a fashion format including apparel, cosmetics,
accessory and general merchandise First Food Bazaar format was added as Shop-In-
Shop within Big Bazaar in the year 2002 Big Bazaar and Food Bazaar -blend the look,
feel and touch of Indian bazaars with modern retail concepts of choice, convenience
and quality.
Wills lifestyle:
The ITC-owned premium apparel brand that has registered strong growth in
metropolitan and tier I cities, is now eyeing the smaller towns, especially the tier II
and III cities. The apparel brand plans to open 20 stores in cities such as Mangalore,
Mysore and Jodhpur in the next 12 months. The company has entered 10 new cities
including Jalandhar, Coimbatore and Guwahati in the last year-and-a-half.Currently,
Wills Lifestyle has around 80 stores, of which 30 were set up in the last 18 months.
“Our plan is to make Wills Lifestyle products easily available to the customer,” Atul
Chand, divisional chief executive of ITC‟s Lifestyle Retailing said.The company also
plans to develop different collections for different cities, bearing in mind the tastes
and preferences of customers in the cities they are set to enter.

Comparisons:
Parameters Big bazaar Reliance Wills Life style
1. Parking Insufficient space sufficient space Multi-level parking

Creates a lot of
Space for parking.
2. Parking fee Yes Yes No

Refundable
3. Brands Excellent collection of Average Large number of

brands number of brands
brands
4. collection Updated collection of Outdated Not a Wide verity of

Within brands merchandise Collection Merchandise
5. Information Layout blueprint Not available Detailed blueprint is

Store layout Display on each floor displayed at Various
Points
6. Layout Plenty of space Service escape Layout been Utilized

Unutilized is not properly well both Inside and
Designed outside of the mall
7. Lighting It is excellent Average It is excellent
8. Billing Are many Avoid the Not a Many Are many which
counters waiting time counters its avoid the waiting
leads to time
queuing
9. Security Efficient security Efficient Efficient security

Personnel with thorough security Personnel
checking Personnel
of bags

2.7 POLICIES OF THE ORGANIZATION

Customer service
Return policy:
 To ensure that the return of the purchased items is a smother process, we
request our customer to comply with the following terms.
 Product will be valid within 14days of the purchase date of respective store.
 Bar code should be attached at the time of returning of product.
 In within 14days product quality should like resale.
Policy for the employee:

In max fashion company have many policies to directing and managing the total
entire organisation.
 Working hours and weekly offs

 Leave policy
 Compensatory offs
 Salary advance
 Punctuality & attendance
 Dress code
 Separation
 Employee gifts
 Employee discounts
 Medical claim policy
 Personal accident policy
The total working hours for all employees is 48 hours per week. The weekly off for
the store employee is one day every week by rotation from Monday to Friday.
 Shifts Per Day: 2 Shifts
 Working Hours: 8 Hours
 Lunch Break: 45 minutes
 Tea Breaks (2): 15 Minutes each

Leave policy:
All Employees in employment at the store level irrespective of the grades are eligible
to:
 Casual leave
 Sick leave
 Earned Leave
 Maternity leave
Compensatory offs:
 In case any of the employees had to work on his Weekly Off day/ National &
Paid Holiday, he will be given a compensatory off on the day convenient to
both the company and the employee.
 This compensatory Offs cannot be accumulated more than 3 and has to be
availed in the same month or in case of emergency in the following month.
 Compensatory Offs will not be enchased.
 No Leave can be merged with Compensatory offs.
Salary advance:
All employees who have completed their specified period of probation and are on the
permanent rolls of the organization are eligible for salary advance.
In case of emergencies, the employees can be paid salary advance up to a maximum
of 75% of their last drawn net salary (take home pay) and the same will be recovered
from their salary within the next two months from which the advance is taken.
Employees must fill in the salary advance requisition form [available with ASM / SM]
The salary advance form has to be approved by the immediate superior and by the
concerned Store Manager, then should be forwarded to the H.R. dept for processing at
least a day ahead of the actual requirement.

Punctuality & attendance:

Attendance has to be marked through Access Control Card and the muster roll
Repeated late attendance and absence from work would be considered unsatisfactory
performance. Continuous absenteeism for more than 10 days without prior approval
or information would be considered as voluntary resignation from the organization.
Dress code:
All the employees are expected to be formally dressed (R5 & below who are given
uniforms are to be in the same)
Separation:
An employee who wishes to resign from service may do so through a letter of
resignation to the Store Manager. The letter of resignation must be dated and should
cite reasons for the resignation and desired effective date of resignation. The
employee should give the organization the notice period or salary in lieu of notice as
applicable to their grade given below.
 M1: 2 Month or 2 Month Gross Salary in lieu

 R5 & R6: 1 Month or 1 Month Gross Salary in lieu
 R1 - R4: During Probation 15 Days or 15 Days Gross Salary in lieu/ On
Confirmation 1 Month or 1 Month Gross Salary in lieu
 The services of an employee shall be terminated by the Organization with
immediate effect on grounds of violating organization‟s code of conduct in
which case no notice or salary in lieu of notice shall be given
Employee gifts:
When a confirmed employee is getting married or is blessed with a child, he/she will
be presented a gift worth Rs.500/- by the company.
Mode of Operation:
Keep the HR informed about your upcoming marriage at least a week ahead and the
arrival of the new tiny entrant in your family within a week

Employee discounts:
All probationary & permanent employees of our organization will be eligible for the
15% discount on the purchase of merchandise at any of our stores.
 The discounted value cannot exceed beyond the stated limits given below.
 Store Manager will be recording the same.
 Employees must show their identity cards or record their employee code at
the cash counter when the bill is being prepared.
Amount
Grade
180000
M1
100000
R6
65000
R5
30000
R4
25000
R3
11000
R2
10000
R1
Medical claim policy

This policy aims at assuring best treatment in reputed hospitals without paying cash
and thereby reduces the financial burden of the employees
o R1- R5- Cover for Self and Spouse up to Rs 50,000

o R6 - M2 - Cover for self and dependents up to Rs 1,00,000
 Dependents include Spouse, Children and Parents only

Personal accident policy:

This policy aims at extending financial assistance to the families of the employees at
time of distress such as accidents.
 The Group personal Accident policy covers only accident related health
Insurance / death. The following are the sum assured for different category of
employees.

2.7 COMPANY STRUCTURE / CHART

2.8 MANAGEMENT OR BOARD OF DIROCTOR
Mr.Vasant Kumar
Executive Director
Mr.C.S.Shekar Mr. Ramnath

Senior VP Operations VP Supply Chain
Mr. Nilesh Joshi Mr. Utkarsh Mohan

Head Projects Head Sourcing
Mr. Raghu Rajagopalan

AVP Finance

2.10 ACHIVEMENT AND AWARDS
 Mr. Micky Jagtiani is chairman of the Landmark Group has won the
"Entrepreneur of the Year" award at a ceremony held by Middle East
Business Achievement Award in November, 2008.
 Lifestyle wins “The Most Admired Retailer Award” Department Stores,
Images Retail 2008
 Landmark Group wins “Retailer of Year” honor at Retail City Awards for
2008
FUTURE PLANS OF COMPANY

To be among the top three retail players in three of the fastest growing retail markets
in the world (Middle East, India and China)
And in India open new 200 stores till 2014 is next plan.

Max store location in India
Delhi – Laxminagar &

Rajouri
Noida -
Unitech Mall
Agra – Taj
Nagari
Lucknow – E City
Ahmedabad –
Satellite town
Indore – MG Road
Mumbai - Vashi & Kharghar&

Bhyander,Ghatkopar, Mulund,
Goregaon
Pune Kalyaninagar
Hyderabad – Banjara Hills & Begumpet
Bangalore – Commercial Street

& SPAR, Oasis Centre,
Indiranagar
Franchisee
Store: Calicut

3.1 HUMAN RESOURCE DEPARTMENT
Human Resource in Max Retail, among the various factors of retailing, which are
used in the organization, human resource is the most important. This is because the
efficient use of physical resources ultimately depends on how the human factor is put
to good use on various operations. Human resource management is a process of
bringing people and organizations together so that the goals of each one are met,
effectively and efficiently. It is responsible for people dimension of the organization.
The entire scope of functions relating to HR in MAX FASHION has been organized
under three levels, viz. Corporate, Regional and Project levels. The responsibilities
vary from level to level depending on the tasks assigned, accountability and
implementation criteria. An overview of these functions is hereby given in this
section.
Human Resource Department of MAX fashion is very dynamic. Employees are the
biggest strength and asset of any organization and the HR dept. realizes this very well.
This is very evident from the way the HR department handles all its employees. They
take utmost care to select, train, motivate and retain all the employees. They have
continuous developmental programmers for all the employees. Currently MAX
fashion Jay Nagar is employing 100 full time and 50 part time employees. There are
two shifts for the employees. The first shift employees arrive at 10.00 am in the
morning and leave at 5.00 pm in the evening, while the second shift employees report
at 2.00pm in the afternoon and leave at the time of Store closing (10pm). Sources of
Recruitment The following are the main sources through which MAX fashion recruits
its employee.
Consultancy Services:
For top level management, employees are recruited through private consultants. They
are usually appointed as Departmental Managers.
Walk-ins:
This is the main source through which MAX fashion recruits its employees. People
seeking job usually themselves approach the HR department for job vacancy.
Employees usually selected from this source are appointed at the entry level as team
members.

Employee Referrals:
This is the other main source through which employees are selected. Candidates who
have given their previous employer as referrals are first interviewed and from their
previous employer, opinion is taken about their behavior and performance in the job.
If they receive a positive opinion from their previous employer they are selected.
Campus Recruitment:
Young people bring new ideas and fresh enthusiasm. Therefore MAX fashion visits
some of the reputed educational institutions to hire some of the most talented and
promising students as its employees. Selection Procedure The following is the
selection procedure that the HR department practices to hire its employees.
Interview:
For entry level jobs, the candidates are interviewed by a HR person. They are asked a
few basis questions about their education, previous work experience if any, languages
known etc. This is done to evaluate the candidate‟s ability to communicate freely and
also other skills.
Psychometric Tests:
For higher and top level jobs, candidates are asked to answer a few questions which
basically test their sharpness, analytical ability, ability to handle stress, presence of
mind etc. This is done as Managers are required to work under stress all the time and
still maintain a cool head to make some vital decisions.
Group Discussion:
In campus recruitment students are involved in a Group Discussion, where they will
be given a topic on which the group has to deliberate, discuss and arrive at a solution
or a decision which is accepted by the whole group. Along with the G D they are also
given a written aptitude test. Finally a formal interview will be conducted to assess
the overall skills of the student. Induction: New employees selected will be given a 13
day induction and training program. They will be given information about the
company‟s business, different departments etc.
They will be informed of their roles, duties and responsibilities. They will also be
informed about the HR policies and rules of the company. The new employees will be

on probation for a period of 6 months. After this period the HR period along with the
department manager will review.
The performance of the employee if the employee‟s performance is good and
encouraging, the employee‟s services will be confirmed. Compensation & Rewards:
The employees are rewarded suitably with attractive pay packages. The salary of an
employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual
bonus will be given at the time of Diwali. The employee dependents are also entitled
for medical treatment in recognised hospitals with cashless hospitalisation with which
the company has tie-ups. If a hospital is not recognised, the amount spent by the
employee will be reimbursed. Along with these all the employees are given a card
known as „EmployeeDiscount card‟ (EDC) through which they can buy any product
MAX FASHION at a special discount of 15-20%. Leaves and other rules: An
employee during his probationary period is entitled for 7 days of leave. A confirmed
employee is entitled for 30 days of leave in a year. There is only one type of leave the
employees can take which is known as All Purpose Leave (APL). All the employees
will be given identity cards which they have to wear and also swipe while at the time
of entering and leaving the Store.
Performance Appraisal:
The HR department conducts performance appraisal of all the employees annually in
the month of April. Based on their performance increments will be given in their pay.
In addition to this if an employee achieves or exceeds the target given to along with
their team members will be provided with attractive cash and other incentives.
Culture at MAX FASHION:

At MAX FASHION, Empowerment is what you acquire and Freedom at Work is what
you get. We believe our most valuable assets are our People. Young in spirit,
adventurous in action, with an average age of 27 years our skilled & qualified
professionals work in an environment where change is the only constant. Powered by
the desire to create path-breaking practices and held together by values, work in this
people intensive industry is driven by softer issues. In our world, making a difference
to Customers‟ lives is a Passion and performance is the key that makes it possible. Out
of the Box thinking has become a way of life at max fashion and living with the
change, a habit. Leadership is a value that is followed by one and all at max fashion

Leadership is the quality that motivates us to never stop learning, stretching to reach
the next challenge, knowing that we will be rewarded along the way.
The quest of creating an Indian model of retailing, max fashion Retail has taken
initiatives to launch many retail formats that have come to serve as a benchmark in
the industry. Believing in leadership has given us the optimism to change and be
successful at it. We do not predict the future, but create it. At max fashion Retail you
will get an opportunity to handle multiple responsibilities, and therein, the grooming
to play a larger role in the future. Work is a unique mix of preserving our core Indian
values and yet providing customers with a service, on par with international standards.
At max fashion you will work with some of the brightest people from different
spheres of industry. We believe it‟s a place where you can live your dreams and
pursue a career that reflects your skills and passions.

3.2 MARKETING DEPARTMENT
Marketing Department marketing concept is a customer orientation backed by

integrated marketing aimed at generating customer satisfaction as the key to satisfying
organizational goals. For a firm in order to implement the marketing concept it has to
focus its attention on the consumer, ascertain his/her needs, discuss and wants before
Every Brand appeals to individual customers in different ways. Good customer
service is the life blood of any business. Good customer service is all about attending
to existing and potential customers. This maintaining good relationship with the
customers is the key to business success and hence the concept relationship
marketing. Traditionally, marketers have located their target market segments,
presented their offer, and made the sales. It's always been a single step process.
Relationship marketing looks at customers and clients over a longer term. It takes into
account the lifetime value of a customer. Many experts think it costs anywhere from
six to ten times as much, to find a new customer, than to sell to an existing one. With
those financial realities in mind, the approach makes some sense, and some real
dollars. Relationship marketing is based on the idea that people prefer to do business
with people who they know and like. After all, it's easier to buy from a friend, than
from someone you've never heard of before. It's a matter of building trust.
It's said that people need to hear an offer at least seven times before they buy. That
concept certainly works against the single step marketing method. The Marketing
department is responsible for marketing of Max retail‟s products through different
media like TV, radio, newspapers, banners, placards etc. The marketing department
has to decide and identify the most effective medium to attract the customers to Max
retail thereby increasing the sales.
The department has to design creative and attractive advertisements through which
the company‟s products can be promoted to the customers. The company has to visit
different companies and has to enter in tie-ups for all its advertisement campaign. The
marketing department also consists of another separate department which is known as
„Visual Merchandising.
Visual merchandising is an art by which a retailer makes the store talk to its
customers. The colours, signage, lights, look and feel, everything is taken into
account. It is very important to figure out what is the story, the picture, the idea that is
being sold to the customers. Another concept that was incorporated in Max retail from

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

merchandising practice that is followed by many retailers. Category management is
based on the belief that a customer walks into a store looking for party shirt or a
formal trouser, rather than a particular brand. Therefore the store is designed
according to the categories like men‟s formal wear, women‟s western wear or a casual
wear, kids wear etc.
Within the organisation too, teams were divided according to the categories that they
managed, rather than the brands. Max retail wanted to have a complete bouquet of
products in each category at different price-points, design, fabric, size and colour. The
objective was to create „traffic drivers‟ within the Store rather than make brands
compete with each other. Focusing on categories also helped to achieve a level of
perfection within the specific segments. This department is responsible for the
attractive product arrangement in the Store with respect to their nature. The basic
function of this department is it divides the Store into some departments based on the
nature of the product and also within the department it decides how the products
should be arranged keeping in mind the customers taste. It also arranges the products
to attract the customers and also ensure easy availability of products.
MARKETING FUNCTION IN MAX RETAIL
Product management:
Product management is also an important strategy in MAX RETAIL. In the MAX
RETAIL each and every product are useful and run able product in the market.
Product would be changed if those are not sold on the market.
Brand management:
Brand management is also important strategy in the way of which brand should be for
sale in the store, because it is gives impact on the customer. Every brand has its
market value and it is also gives impact on the store image.
New product development:

understanding the market demand and based on that selection of new product
according to customer and according to the session demand.

Promotion:
Promotion is one of the market mix elements. The specification of five
promotional mix promotional plan. These elements are personal selling, advertising,
sales promotion, direct marketing, and publicity.
 To present information to consumers as well as others.

 To increase demand.
 To differentiate a product.
Advertising:
Advertising for existing product is one of the important functions for the marketing
department. Adverting of product is done through internal or external in social way.
Internal advertising is done by the product promotion and product awareness for
existing customer. And external advertising is take place through by external media
promotion. Such as TV, RADIO, HORDING, BANNER, PAPER, etc.
Marketing communications:
Marketing communications is the process of the filling the gap between customer and
organisation. In MAX RETAIL such types of activity is followed for Inner member
circle customer. Those customers are benefited through session offer and awareness of
upcoming offer information, which is provided by the MAX RETAIL.
Retail Planning:
Team is responsible for monitoring and executing the retail plans, budgetary control
to ensure the performance of the store are via a via the business target and to report
performances of products.
Visual Merchandising:
Team is responsible for planning, developing, establishing and maintaining efficient
display, signing and merchandise presentation program for the retail / service
activities within the stores. Concessionaire team is responsible for handling all brands
in MAX stores.

Sales and sales promotion:

Sales and sales promotion is also marketing strategy for which is give a positive
result. Showing the higher sales report makes brand value in customer. And customers
are also gives attention on those types of retailor.
Services marketing:
Providing service for customer is also a marketing function .Which makes customer
satisfaction and attracts the customer for next time coming in the store.

3.3 STORE DEPARTMENT
In any retail sector store department is very important department to maintained

whole entire outlay. Max retail outlay store department have many importance, total
shop is depend on the support of the store department. Store department control the
flow of the supply.
Functions of Stores Department:
Material Planning:
This consists of ascertaining the need of the various departments in the matter of
materials and stores and devising such policies that all the materials which have
constant demand and also some critical non-wearing materials are constantly available
so that they are supplied to the user departments without delay. This includes
classification / categorization of items, codification, designing of recoupment policies,
taking `make or buy' decision and also preparation of stores budget.
(b) Procurement of Stores:

This includes purchase of materials of required quality and quantity at reasonable
prices. This activity also includes development of sources of supply with due
emphasis to development of ancillary industries, small scale industries and indigenous
sources for imported items (import substitution). This also includes, maintaining
constant touch with the market to ensure steady flow of materials.
(c) Receipt & Inspection of Stores:

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

(d) Store Keeping:

This includes stocking of materials in the wards, their handling, issuing on demand by
inventors and maintaining proper records.
(e) Distribution of Stores:

This includes timely dispatch and distribution of materials to various users by
adopting quick and right mode of transportation.
(f) Collection and disposal of scrap:

This activity is main revenue earning activity of Stores Department these days.
(g) Inventory Control:

Inventory control means keeping the overall costs associated with having inventory as
low as possible without creating problems. This is also sometimes called stock
control. It is an important part of any business that must have a stock of products or
items on hand. Correctly managing inventory control is a delicate balance at all times
between having too much and too little in order to maximize profits.
(h)Cost Reduction:
Management Department can contribute a lot on cost reduction. Some of the
techniques used for this purpose are:
1) Variety Reduction
2) Standardization
3) Value Analysis
4) Forecasting.

ORGNISATION STORE STRUCTURE
Store Manager
Asst. Store Manager
Cashiering /IT /
Inventory/VM
Department Manager
Senior C R M
CRE

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

important role starting from procurement of material till the sales is made. Finance
department tries to ensure that adequate funds are for the resources that are required to
help achieve the organisational objectives. The department also ensures that the costs
are controlled, that there is an adequate cash flow, and also that it establishes and
further controls all profitable levels. A lot of transaction takes place every day at
Max.
Some of it he important functions performed at Max by finance department includes:
Obtaining needed inventory:

To satisfy customers, Max maintains inventories that involve a sizable expenditure of
funds. Finance department receives the trends and forecasted demand from marketing
department and budget the expanses and then make spending on it.
Financial planning & control:

At Max finance department involves in analyses short-term and long-term money
flows to and from the company. It helps the company to optimize profit and make best
use of money. In controlling process company compares its actual revenues, costs,
and expenses to those projected. Max holds at least monthly financial reviews as a
way to ensure financial control. Such controls provide feedback to help reveal which
accounts are varying from the financial plans.
Managing accounts receivable:

Operating funds are very much essential to carry day to day business operations
which are collected from sales. Max sells various products every day, some on cash
and some on credit for which payment is made through credit cards. Max tries to in
cash those transactions as quick as possible. In some cases company use some of its
available funds to pay for the goods or services already given to customers. In order to
collect that money as soon as possible, financial managers plans to offer such as cash
or quantity discounts to purchasers who pay their account by a certain time. Max in
order to overcome these circumstances provides special discount to Visa holders.

Tax management:
Financial managers also handle tax management, the analyzing of tax implications of
various managerial decisions in an attempt to minimize the taxes paid by the business.
As tax laws change, finance manager carefully analyze the tax implications of various
decisions in an attempt to minimize taxes paid. Max also takes help of external parties
in various decisions in order to minimize taxes.
Meeting other departments need:

The other departments of Max are also depends on finance department for various
needs. Purchase department writes to finance department and finance department
allocate funds to purchase department. Marketing department does so many activities
including add campaign for which they depends for money to finance department.
Likewise all other departments depend on finance to fulfil their needs.
Organizational finance department structure
FINANCE MANAGER
SENIOR ACCOUNTANT
CASHIER

3.5 INFORMATION TECHNOLOGY DEPARTMENT:
Information Technology provides the technological support to help meet the business
objectives while taking into account the functional needs. IT integrates the entire
organization and the business activities and also helps to network all the resources to
ensure we keep ahead in the Industry.
The importance of information technology in retail stems from the importance of data.
Data is nothing but information that aids decision making. The right data, in the right
form to the right setoff people at the right time, is one of the greatest tools in the
hands of the retailer. Information is always with reference to a particular time frame.
After selecting some goods he proceeds towards the billing counter. Here the billing
clerk scans each product at the POS (Point of sale) terminal the total number of items
and the bill amount is added up. While doing so he has so checked with the customer
if he is a member of the store‟s loyalty program. The customer confirms that he is,
gives him the store card for entry makes the payment by way of credit card and exits
the store with his purchases.
While to the customer it is just a routine purchase, let us look at the information that
the store has gathered from this transaction and how the information helps the retailer
Collection of Data:
The use of technology aids data collection. Data can be collected about consumers,
their purchases the frequency of their buying and the typical basket size. This
information helps the retailer distinguish the customers who shops at his store
frequently and also reward them. For example information gathered about a customer
may reveal preferences for certain brands; this may be used for further
communication with the customer regarding promotional offers etc. The data on
purchase made is also passed on to the credit card organization for payment to the
merchant establishment and also for billing the customer.
Efficiency in Operations:
The items purchased provide information on merchandise sold in the store; this is the
basis of sales analysis and decisions on replenishment re-ordering and merchandise
planning.

Helps Communication:
Communication within the organization can be faster with the use of software like
Lotus Notes. Retail stores can also communicate with each other and with the
warehouses. This can be done 24 hours a day and seven days a week. Electronic Data
Interchange (EDI) can also be used for communication with suppliers and vendors.
Efficient Stocking of merchandise:

The items purchased provide information on merchandise sold in the store; this is the
basis of sales analysis and decisions on replenishment re-ordering and merchandise
planning. If this information is passed on to the manufacturer; it can help reduce
production time. This is particularly true in case of fashion items, which have a very
short life cycle. For example data gathered in this manner may indicate youngsters
buying certain styles in Jeans or colours, in the tee shirts from the store. To service
this section of the audience the retailer may need replenishments faster. The use of
technology aids the collection and transmission of information. The trends in sales
can be analyzed. This helps avoid situations of stock out helps spot merchandise or
products timely markdowns and higher inventory turns.

3.6 QUALITY ASSURANCE DEPARTMENT:
Quality Assurance team is responsible for sourcing of vendors for product capability,
internal procedures, social compliance and related activities for Max retail. They take
care of fabric development and sourcing as per the design team requirement.Quality
control is a process that is used to ensure a certain level of quality in a product or
service. It might include whatever actions a business deems necessary to provide for
the control and verification of certain characteristics of a product or service.The main
role of a quality assurance analyst is to develop and put in place quality assurance
standards, processes, tools and evaluation methods for the information technology
services of an organization.

4.1 Strengths
 Demographic favor:
 Employee support: In Max Retail employee support is very good. Employees are giving
those best efforts.
 Shopping convenience: In max retail have a lot of product for the customer which are
convenience.
 Changing consumer habits and lifestyles of the customer.
 Plastic card revolution: Max retail is not allowing less than 40 micron plastic.
 Greater availability of quality retail space.
4.2 Weaknesses
 Limited consumer insight: Max Retail target to the specific customer in the
market
 Inadequate human resources.
 Underdeveloped supply chain-underdeveloped logistics infrastructure.
 Lack of adequate utilities.

4.3 Opportunities
Potential for investment: Max can also invest in other retail format.
 Location advantage
 Sectors having high growth potential
 Fastest growing formats
 Rural retail
 Wholesale trading: Max can do Wholesaling trading for general store.
 E-retailing: Max can do Its business through E-retailing process.Max is a
global retail having store in 11 countries worldwide.
 Good collection of almost all apparels(ethnic wear,children collection,men‟s
collection etc)
 Medium range product affordable to most.
 Attractive visual merchandising.
 Beautiful ambience

4.4 Threats (External)

 Government policy
 Growing Inflation
 Stiff competition
 More promotional efforts by other brands
 Local retail stores can give competition in near future.
 Future threats from players like Reliance which is adopting penetration
strategy to lure customers.
 Membership cards under loyalty programmes are starting late. Other brands
have started and implemented it successfully.
 Price wars among key competitors.
 Decrease in consumer demand.

5.1 FINDINGS
 Max appeals not only customer from higher income group but also customer
with lower income. Different products line starts with the base prices of 200,
250 and so on.
 Max strictly follows the planogram which helps them to plan how store is
going to look.
 Max has a unique product line for kids. In the product line different sizes
clothing line is available from 1 month to 12years.
 Max does not have proper inventory management, due to which many times
stock are not placed in adequate numbers.
 In foot-ware section product are not from well-known brands.
 Max does not have its own cafeteria for employees working there.
 Max does not have adequate office space for conducting meetings.
 Customer profiling has shown that there is a significant relationship between
itself and the marketing strategies adopted by the retailers in the retail stores as
the strategies are formulated according to the needs and preferences of the
customers.
 MAX is considered as one of the best brand in by the customers.
 The competitiveness of the MAX is moderate as compared to the similar
stores.

5.2 Conclusion
The India retail currently stand at USD $450 billion and likely to go further at 12 % to
Increase to triple size by 2014. Retail sector (including both organised an
unorganised) is the second largest employer after retail sector in India. Many
international retail brand is also putting theirs steps in Indian market. Max is also one
of them. Max fashion in JayNagar 4th block Bangalore has the second highest
turnover. It provides a wide range of product in clothing, accessory, cessionary and
footwear. Being environment conscious, max used more of paper back and other bio-
degradable materials.
Max lack in adequate work force as per the present requirement.
In this growing market Max is trying to expend its product line coming further.

5.3 Suggestion
Max needs to spend more on advertisement so that brand becomes popular in minds
of customer.
Max needs to install efficient ERP tool for inventory management and control. It
would help the company to have a smooth flow of inventory.
Max need to put efforts in foot-ware section. In order to compete with other retail
brands Max need to have well-known brands in foot-ware section.
Proper facilities like cafeteria will help the company to increase employee motivation
and reducing the time taken during recess.
The company need to have a separate meeting hall for conducting various meeting.
The proper training and development program for sales executive team will help to
build more efficient & effective sales personal.

BIBLIOGRAPHY
Books
Kothari C R- Research Methodology Methods and Techniques (New Age
International Publishers), Kotler Philip-Marketing Management (Prentice Hall of
India)
Edited Volume
Michael Levi M and Weitz BW- Retailing Management (Tata McGraw Hill)
Luck and Rubin- Marketing Research (Prentice Hall of India).
Journals
Marketing journal “winning in India‟s Retail sector”.
Reports and Gazettes

Retail Industry global report 2010
Newspapers and Magazines

Business Line, Economic Times, Business Today, Times of India, Frontline, Business
India, .
Websites
www.maxfashionindia.com/max.asp
www.landmarkgroup.com/retail/fashion/max/
www.landmarkgroup.com/downloads/landmark_group_corporate_overview.pdf
www.indianjournals .com
www.indianjournalsofmarketing.com
www.landmarkgroupme.com

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL”

1.1 INTRODUCTION TO STUDY:

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

Need for the Study:

Objectives of the study:

To understand the organization structure or hierarchy of the company.

 To understand the working of the various departments.

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1.2 ABOUT INDUSTORY

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INDIAN RETAIL INDUSTRY

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1.3 TYPES OF RETAIL SHOPS

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Category killers or Category Specialist:

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

Other types of retail store include:

Automated Retail stores:

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1.4 PLAYERS IN MARKET

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entrepreneurship to consistently deliver exceptional value, the Group operates over

K Raheja Corp Group:

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1.5 INDUSTRY VOLUME

Size of the industry:

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1.6 CURRENT SCENARIO

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2.1 Company History

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International Foundation for Empowerment) in 2000. LIFE focuses on

ABOUT MAX FASHION RETAIL

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CSR (Corporate Social Responsibility)

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Max India Proposition

Key Facts about MAX India:

2.2 VISION AND MISSION OF THE COMPANY

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 Be a market leader in the field of value retailing.

2.3 MILE STONES OF COMPANY

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2.4 PRODUCT AND SERVICE PROFILE

 WESTERN WEAR DEPERTMENT

WESTERN WEAR DEPERTMENT

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 FUSION (Zone) - Skirts (long and short),Kurti, Short Kurta

 INFANT BOYS (ZONE) T-shirts, Shirts, Trousers, Denims

MENS WEAR DEPARTMENT

 Formals (zone) shirts & trousers

FOOT WEAR DEPARTMENT

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 KIDS Infants, Girls & Boys Shoes and Sandals

MAX SUB DEPARTMENTS