PROJECT REPORT ON

“BUSINESS EXPOSURE IN RETAIL MANAGEMENT’’

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT FOR SECOND YEAR OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SUBMITTED BY – VAIBHAV DAGADE
SYBBA ROLL.NO-148

UNDER THE GUIDANCE OF

ASST. PROF. PRIYA S. NAIR

(PROJECT GUIDE)

THROUGH

NESS WADIA COLLEGE OF COMMERCE, PUNE.

2020-21

1
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled

“Business Exposure in Retail Management” written and
submitted by me to the Savitribai Phule Pune University in partial
fulfillment for Second year of Bachelor of Business Administration
(BBA) under the supervision of Asst. Prof. Priya S Nair is my
original work and the conclusions drawn therein are based on the
material collected and observations made by me.

Place: Pune
Date:24/12/2020

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 ACKNOWLEDGEMENT

I would like to express my sincere appreciation to the Savitribai

Phule Pune University and the Ness Wadia College of Commerce,
for giving me the opportunity to prepare and present this project
statement.

I would especially appreciate the crucial role of my teacher assit.

Prof. Priya Nair, and the BBA Coordinator Dr. Deepa Dani, whose
contribution and stimulating suggestions guided and encouraged
me in this project. I would also like to thank all those people who
gave their valuable time, support and feedback for this project.

I would like to thank my college for supporting me with the

resources which helped me a lot. Also, I would like to
acknowledge contributions of various official websites and books
mentioned in the bibliography for helping me with the data
collection and analysis which have provided me with the relevant
information for me to successfully complete my Project.

Place: Pune
Date:24/12/2020

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 Modern Education Society’s
NESS WADIA COLLEGE OF COMMERCE, PUNE

Certificate

This is to certify that Vaibhav Dagade roll.no 148 , student of

SYBBA has conducted four activities / minor projects for Business
Exposure in Retail Management. The reports of these activities are
submitted herewith in partial fulfillment for Second year of
Bachelor of Business Administration.
He/ She has worked and completed his project report under our
guidance and direction. His/ Her report is found to be satisfactory.

PROJECT GUIDE PRINCIPAL

Internal Examiner External Examiner

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 INDEX
Sr.No PARTICULARS/TOPIC Page.no.
1 RETAIL MANAGEMENT :AN 9
INTRODUCTION
2 BUSINESS EXPOSURE
2.1 Reliance Retail Limited
2.1.1 Introduction and Activity Statement 12
2.1.2 History of the Company 12
2.1.3 Retail format and Marketing Mix 13
2.1.4 Elements of store design- interior with 14
photos
2.1.5 Elements of store design – exterior with 16
photos
2.1.6 SWOC analysis 17
2.1.7 Findings 18
2.2 Virtual tours and analysis of different
types of retailer formats
2.2.1 Departmental Stores 19
2.2.2 Pantaloons 22
2.2.3 Chain Stores 24
2.2.4 Bata 26
2.2.5 Consumer – Cooperative Store 28
2.2.6 Apna Bazar 30
2.3 Online Survey of PUMA through 33
Google forms

2.4 Study of store layout , products display,

logistics etc of NIKE and ZARA.
2.4.1 Nike Store
2.4.1.2 Introduction 46
2.4.1.3 Store Layout 47
2.4.1.4 Store Frontage 48
2.4.1.5 Interior Store Design 49
2.4.1.6 NIKE manufacturing and supply chain 50
strategies
2.4.2 ZARA

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 2.4.21 Introduction 54
2.4.2.2 Store layout 55
2.4.2.3 Exterior Atmospheric 56
2.4.2.4 Interior Atmospheric 58
2.4.2.5 Business strategy 59
2.4.2.6 Logistic Trade- offs 59
3 CONCLUSIONS 60
References/bibliography/webiography 62
Appendix 63

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Abstract:
Reliance Retail Limited – Retailing in India is becoming increasingly important , and
organized retailing is poised to grow at an exponential rate . These growth opportunities
have even attracted global majors who are setting up shop in India. The growth of the
retail sector will make retailers powerful intermediaries in the marketing channel ,
bridging the gap between manufacturers and consumers. Therefore it will be the power of
the consumer as well as that of the retailer in the marketing channel that will spearhead
the growth of retailing in India. The main objectives of the study is to know the present
system and weakness of Retail Management in Reliance Retail , to know the history of
Reliance Retail. Here we are going to study briefly about interior and exterior of Reliance
retail store , like what the atmosphere is there of a store , infrastructure , advertisements ,
lighting , store layout etc .The marketing tools that a retail organization uses to pursue it‟s
marketing objectives are termed as the retail marketing mix a long term performance is
largely determined by its strategy the strategy coordinates employees activities and
communicates the direction the retailer plans to take.In the assignment we arw going to
study SWOC analysis of Reliance Retail limited – strengths , weaknesses , threats ,
Opportunities .Finally the findings about what we understood through this assignment .

Abstract
Retailing format
1. Departmental stores: Includes definition – A departmental store is a retail
establishment offering a wide range of consumer goods in different areas of the
store , each department specialising in a product category with features,
advantages and disadvantages of departmental stores. There is an example of
PANTALOONS – Voted as India‟s most trusted apparel retail brand and
remaining neccessary information are given.
2. Chain stores: definition –A chain store or a retail chain is a retail outlet in which
several locations share a brand , central management , and standardized business
practices ,other information like characteristics, advantage and disadvantage with
an example of the company BATA – Bata corporation is a Swiss domiciled
multinational footwear and fashion accessory manufacturer and retailer ,is
taken to simplify its meaning.
3. Consumer cooperative stores: definition –is a retail unit owned and controlled by
consumers ,also the characteristics, advantages and disadvantages of Consumer
Cooperative stores are included. There is an example of APNA BAZAAR –a

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 cooperative organisation started in 1948 by a few people committed to social
cause while responding to a clarion call of the nation for freedom and other
necessary information are given.

Abstract:
To study store layouts , product display , logistics etc about NIKE and ZARA
1.1 ) a ) NIKE: Nike is an American multinational association that is involved in its
entire product and its servicing. All the necessary information is explained thoroughly in
the section.
b ) ZARA: Zara is one of the world‟s most successful fashion retail brands,
founded in 1975 in spain.
1.2 ) Store layout, exterior and interior images of the store are included.
1.3 ) Other necessary information like business strategies, Logistical trade-offs,
manufacturing supply chain are included.

Abstract:
Consumer survey for the company PUMA done through Google form:
Have you ever heard of brand puma; do you like purchasing brand puma products; how
do you buy puma products; do you prefer purchasing puma product online; how do you
feel about the store layout of puma; which mode of transaction you prefer more ; do you
think the transaction you made is safe; why is that you prefer puma; the price of puma is;
Which aspects do you think the puma need to improve on their products; are the
employees of PUMA store following covid-19 precautionary protocols as per government
rules; rate the quality of puma products; Conclusion.

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 1. RETAIL MANAGEMENT

The various processes which help the customers to procure the desired
merchandise from the retail stores for their end use refer to retail
management. Retail management includes all the steps required to bring the
customers into the store and fulfill their buying needs.
Retail management makes shopping a pleasurable experience and ensures
the customers leave the store with a smile. In simpler words, retail
management helps customers shop without any difficulty.
Retail management saves time and ensures the customers easily locate
their desired merchandise and return home satisfied.
An effective management avoids unnecessary chaos at the store.
Effective Management controls shopliftings to a large extent.

 The retailer must keep a record of all the products coming into the
store.
 The products must be well arranged on the assigned shelves according
to size, colour, gender, patterns etc.
 Plan the store layout well.
 The range of products available at the store must be divided into small
groups comprising of similar products. Such groups are called
categories. A customer can simply walk up to a particular category
and look for products without much assistance.
 A unique SKU code must be assigned to each and every product for
easy tracking.
 Necessary labels must be put on the shelves for the customers to
locate the merchandise on their own.
 Don‟t keep the customers waiting.
 Make sure the sales representatives attend the customers well. Assist
them in their shopping. Greet them with a smile
 The retailer must ensure enough stock is available at the store.
 Make sure the store is kept clean. Don‟t stock unnecessary furniture as
it gives a cluttered look to the store. The customers must be able to
move freely.

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  The store manager, department managers, cashier and all other employees should
be trained from time to time to extract the best out of them. They should be well
aware of their roles and responsibilities and customer oriented. They should be
experts in their respective areas.
 The store manager must make daily sales reports to keep a track of the cash flow.
Use softwares or maintain registers for the same.
 Remove the unsold merchandise from the shelves. Keep them somewhere else.
 Create an attractive display.
 Plan things well in advance to avoid confusions later on.
 Ask the customers to produce bills in case of exchange. Assign fixed timings for
the same. Don‟t entertain customers after a week

A company called Pick & Go Co. has many retail establishments located in high-traffic
sections of medium sized malls found across the state. The stores mostly sell magazines,
minor groceries and candy, but the company‟s Retail Management Department is always
designing new ways to display the merchandise to make sure it catches the attention of
everyone walking in front of the store.
This is the source of the company‟s success and many big brands have engaged in
advertising efforts within the stores to give their products more visibility. The store
charges them a fee for this additional advertising and this creates another stream of
revenues that other establishment don‟t get because they don‟t pay attention to that kind
of opportunities.

Retail Management Strategies

The retail industry is a very dynamic and competitive sector in the market. You have to
apply various management strategies for the survival and growth of your retail business.
“You love it when you visit a store that somehow exceeds your expectations, and you hate
it when a store inconveniences you, or gives you a hard time, or pretends you are
invisible.” − Sam Walton (Founder, Walmart)
The retail management strategies include marketing, pricing of the product, discounts to
attract the customers as well as other techniques that help to grow your business.

Retail Marketing
Whether you talk about the product selling or service providing, marketing is the crucial
part to reach your target customers and make them aware about your business.
If you really want to grow your business properly, you must include a marketing budget
for the promotion of your products or services.
You can reach your target audience advertisements by the means of newspaper,
television, brochures, etc.
And if you want promotions through digital channel, then you can go for Search Engine
Optimization, Social Media Marketing, Google Ads, YouTube Ads etc.

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Effective Pricing
Everybody knows very well that India is a very price-sensitive market. It is one of the
major key factors to gain more customers.
You should always keep in mind the price of your product based on your target audience.
The purchasing power of the customers play a very important role to decide the price
segment that you should go for.
Discounts & Sale
The graph of sales never remains constant. It always keeps fluctuating as different
months of the year are offseason for every business. But, discounts always attract a
customer.
The retailer can provide offers and discounts in the offseason or announce sales on
special occasions.
It often helps to balance the sales and sometimes gives you healthy profit where you play
upon volume of sales instead of high margin per product.
Coupons & Freebies
There is an another marketing strategy to build a loyal customer base for long term. The
retailer can provide coupons or freebies on large ticket size. It provokes the customers to
purchase more products in one go.
But, make sure that you have done the current calculation before taking this kind of
actions or else you may have to bear a huge loss.
Feedbacks Mechanism
A retailer always tries to provide best products and services to his customer. But, it is
very important to analyse the customer experience.
If you are a retailer, you must have a feedback mechanism in your business to track the
buying behaviour and response of the customers towards your products, brands, or
services.
You can ask them to fill a feedback form or put a suggestion box at your workplace.
Check those feedback on a regular basis and always work on the provided suggestions
improve yourself.

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a)Case studies of famous MNC retailers with SWOC analysis(strengths, weaknesses,
opportunities, challenges)

2.1 Reliance Retail Limited.

2.1.1 Introduction:

Reliance Retail is an Indian retail company, a subsidiary of Reliance

industries limited. Founded in 2006, it is the largest retailer in India in terms of revenue.
V Subramaniam is the CEO of the venture. 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. It focuses on consumer goods, consumer durables . It had a total of 11,784 stores
in April 2020 in India with an area of over 28.7 million square feet across more than 7000
towns and cities, with yearly revenue of over ₹162 billion. Reliance Retail has adopted a
multi-prong strategy and operates chain of neighbourhood stores, supermarkets,
wholesale cash & carry stores, specialty stores and online stores and has democratized
access to a variety of products and services across diverse segments for Indian
consumers.Serving the food and grocery category Reliance Retail operates Reliance
Fresh, Reliance Smart and Reliance Market stores. In the consumer electronics category
Reliance Retail operates Reliance Digital, Reliance Digital Express Mini stores and Jio
stores, and in fashion & lifestyle category it operates Reliance Trends, Trends Women,
Trends Man, Trends junior, Project Eve, Reliance Footprint, Reliance Jewels and
AJIO.com in addition to a large number of partner brand stores across the country.
Reliance Retail reported a turnover of Rs. 1,30,566 crore for the financial year 2018-19.
As on 30th Sep 2019, Reliance Retail operates 10,901 stores across 6,700+ cities with a
retail area of over 24.5 million squareft.

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2.1.3 Reliance Retail Marketing Mix Strategy:
Marketing Mix of Reliance Retail analyses the brand/company which covers 4Ps
(Product, Price, Place, Promotion) and explains the Reliance Retail marketing strategy.
As of 2020, there are several marketing strategies like product/service innovation,
marketing investment, customer experience etc. which have helped the brand grow
Let us start the Reliance Retail Marketing Mix & Strategy:
Reliance Retail Product Strategy:
The product strategy and mix in Reliance Retail marketing strategy can be explained as
follows:
Reliance Retail is one of the most prominent retail brands in India. Under the umbrella of
Reliance Retail, comes a number of companies like Reliance Fresh (contain products
from fruits and vegetables, groceries, daily products, stationery, detergents etc.), Reliance
Trends (the dress and apparels division), Reliance Footprint (the shoes and footwear
division), Reliance Jewels (jewellery and diamonds shop), Reliance Smart (for bakery
and fresh products and home care products), Reliance Digital (electronics showrooms)
and Ajio.com (online clothing store). It has a diverse offering under its marketing mix
product portfolio.

Reliance Retail Price/Pricing Strategy:

:Reliance Retail stores offer goods at extremely competitive prices. At a place like India,
where there are about 7 million retail stores, pricing plays a big factor of differentiation.
With setting up big and attractive supermarkets, the number of people coming inside wish
to buy in bulk. Reliance offers them a price which is generally lower than general
stationery stores. This strategy is mostly applied in FMCG sector. This is possible from
getting the products directly from suppliers in bulk and their connection with the farms.
However, in the clothing sector and in footwear, Reliance Retail offer mid-range to
premium pricing, this is because they offer premium quality products from well-known
brands. In jewellery business, they keep pricing similar to their competitors and rely upon
their designs for differentiation. They have the dedicated Card named Reliance cards
where they give discounts on multiple buys.

Reliance Retail Place & Distribution Strategy:

Reliance retail stores are across 750 cities in India, and the number of stores are around
3800. They being an age old established brand in India, cater to a wide spread base of
customers from around the corners. They haven't driven in to the rural sectors in India
they have primarily focused upon medium to high earning part of the society. The
Reliance Retail stores are generally spread across big area with proper parking facilities.

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Reliance Retail Promotion & Advertising Strategy:
Reliance Retail has invest in many advertising sources ranging both on online and offline.
Their discount offers in clothes and footwears attract a lot of consumers. Big hoardings
can be seen all over the cities. The Reliance Fresh has all time offers going on where their
products are usually on 30-50% discount which is a very eye-catching number to indulge
audiences. They also use print media and simultaneously social media to reach to the
customers.
People:
Reliance being one of the largest employers in the country has around 1,20,000
employees working for Reliance Retail. This includes talented people who are inclined in
sales jobs. Proper care is taken to make every worker familiar with the product and be
expert about it. Headed by Mukesh Ambani, the hierarchy structure of the company is
very long. This is because the shops are at every corner of cities appointing numerous
workers who are familiar with local language and sales methods for particular regions.
Store Layout of Reliance Trends:

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Design
2.1.4 Interior Design of Reliance Trends:
 Floor, ceiling-
Area which attracts more visual attention were reserved for private labels.
Brands were placed on 'pay per space scheme'
Use of white and cream colour in ceiling.
Use of spot light and decorative lightning.
 Lightning-
For interiors and lightning latest technology were used
 Store security-
Security were strictly maintained inside the store both with the employees and
even with the technology.
 Graphics and signages –
Signage and graphic were used inside the store.
 Music
Feel good music numbers were played inside the store

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2.1.5 External Store Design:
 The exterior of the store silently announces what the customers expect inside.
 Good exterior visual merchandising attracts attention , creates interests and invites
the customer into the business.
 Promotional banner of Reliance representing new brands and collection available
is this festive season.

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2.1.6 SWOC analysis of Reliance Retail :

Strengths of Reliance Retail –

As one of the leading organizations in its industry, Reliance retail has numerous strengths
that help it to thrive in the market place. These strengths not only help it to protect the
market share in existing markets but also help in penetrating new markets. Some of the
strengths of Reliance retail are:

1.It is Indian retail chain with 900+ stores in 80 cities in India

2.Hyper market with 95000 markets with tailoring, shoe and watch repair, laundry
3.It owns various private label brands
4.It has strong distribution network- 1600 channels in villages
5. Strong backing of the parent company

Weakness of Reliance Retail

Weakness are the areas where Reliance Retail can improve upon. Strategy is about
making choices and weakness are the areas where an organization can improve using
SWOT analysis and build on its competitive advantage and strategic positioning.

Here are the weaknesses in the Reliance Retail SWOT Analysis:

1.Product variety is available but more SKUs are not present due to inefficient back end
infrastructure
2. Poor inventory control at certain locations is a concern

Opportunities for Reliance Retail :

The new technology provides an opportunity to Reliance Retail to practices differentiated

pricing strategy in the new market. It will enable the firm to maintain its loyal customers
with great service and lure new customers through other value oriented propositions.
1.Sourcing directly from farmers; no middlemen could earn more profit as number of
farmers will increase five times in next 5 years
2.Leveraging on brand name and entering into Reliance saloon
3.Large potential to reduce operation cost in cities using strong supply chain

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Threats Reliance Retail Facing :

The threats in the SWOT Analysis of Reliance Retail are as mentioned:

1. Strong competition globally from Carrefour, Metro A.G., Tesco
2.Operationg cost are too high
3.Wallmart is biggest competitor when it comes to sourcing/ backward integration

2.1.7 Reliance Retail is the retail initiative of the group and is central to our consumer
facing businesses. It has in a short time forged strong and enduring bonds with millions
of consumers by providing them unlimited choice, outstanding value proposition,
superior quality and unmatched experience across all its stores.

Reliance Retail has adopted a multi-prong strategy and operates chain of neighbourhood
stores, supermarkets, wholesale cash & carry stores, specialty stores and online stores and
has democratized access to a variety of products and services across diverse segments for
Indian consumers.

Reliance Retail has the distinction of being the largest retailer in the country. Reliance
Retail‟s commitment to “bettering the lives” has been embodied in its pursuit to make a
difference on social socio–economic issues in India. The initiative has brought millions
of farmers and small producers to the forefront of the retail revolution by partnering with
them for growth.

Deep insight into India‟s economic, cultural and consumption diversity drives Reliance
Retail‟s vision in the retail universe. The operating model is based on customer centricity,
while leveraging common centres of excellence in technology, business processes and
supply chain. More importantly, it has built a strong and unwavering foundation through
its extraordinary people. Our nationwide network of retail stores offers a world-class
shopping environment and unmatched customer experience.

Reliance Retail has emerged as the partner of choice for International brands and has
established exclusive partnerships with many revered international brands such as Diesel,
Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas
Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision
and many more.

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2.2Virtual Tours and Analysis of different types of retailer formats.

2.2.1 Departmental Stores:

Meaning: A departmental store is a large retail trading organization. It has several

departments, which are classified and organized accordingly. Departments are made as
per different types of goods to be sold. For example, individual departments are
established for selling packed food goods, groceries, garments, stationery, cutlery,
cosmetics, medicines, computes, sports, furniture, etc., so that consumers can purchase all
basic household requirements under one roof. It provides them maximum shopping
convenience and therefore, also called as 'Universal Providers' or 'One spot shopping'.
The concept of a departmental store first originated in France.

All departments are run under the same ownership, management and control. Each
department is an independent unit as far as a sale of any specific product and its varieties
are concerned. The main aim of every departmental store is to provide and fulfill all
requirements of their customers at one place along with comforts and facilities which a
small scale retailer cannot provide. Here all goods which are available under one roof are
sold on a cash basis.

Origin:

The departmental stores originated in the European countries during the 19th century.
The first departmental store known as BON MARCHE was established in France in the
year 1852. Two more departmental stores viz; the LOUVRE and the PRINTEMPS were
established in 1855 and 1856 respectively.

Gradually the departmental stores started getting immense popularity. In England,

departmental stores came into existence in 1840 and in the U.S.A. in the middle of
nineteenth century.

Features of departmental stores:

1) Departmental store is located in the centre of the city - The departmental store is
usually located in the central area of a large city. Location and premises are the
two most important aspects for it. The departmental store is generally situated at
that place where a maximum number of people comes for shopping.

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2) Departmental store offers a wide variety of goods- A departmental store not only
offers a wide variety of goods and but also provides a huge range of designs,
colours and styles that suit individual demands of consumers.
3) Departmental store means shopping under same roof - The main idea behind a
departmental store is to supply all basic requirements under one roof. It acts as a
supplier of a large variety of quality goods and services. Thus, departmental store
provides maximum shopping convenience to its customers.
4) Departmental store offers quality goods and services - The motto of every
departmental store is to provide high quality goods and render professional
services to their customers. It always keeps a huge stock of fresh goods which
highlight latest fashions and trends followed by different manufacturers.
5) Departmental store has single Management - Various sections of the departmental
store operate independently. However, they all are under direct control of a single
management. Buying, supervision, accounting, advertising and external
communications are handled directly by the central management of a
departmental store.
6) Departmental Store attracts Customer- Departmental stores have attractive interior
decoration and window display. They spend heavily on sales promotion. This is
done through the advertising, discounts, special seasonal offers, gift schemes,
festival offer, etc.
7) Departmental store fulfill needs of most of the families - Departmental store
mainly satisfies needs of the rich and higher middle class group of the society.
More attention is given to quality, choice, convenience and service rendered to the
customer.
8) Departmental store renders good Customer Service - Departmental stores offer
efficient customer services such as inspection of goods, actual demonstration of
goods, convenient packages, provision for refreshment, reading rooms, home
delivery, parking facility, etc.
9) Departmental store operates by appointing experts- The departmental store
conducts its business on a very large scale and generates good profit revenues. It
can easily afford to appoint experts for purchasing, advertising, recruitment,
supervision, etc., and keeps operating smoothly.
10) Departmental store sells goods only on cash basis- A departmental store sells
goods only on a cash basis. Generally, credit facilities are not offered to
customers to avoid the risk of bad debts.
11) Departmental store has a high operational cost- Departmental stores have to incur
high expenses by way of rent, advertising, provisions of conveniences and
facilities to its customers. Thus, costs of operation are high.

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 12)Departmental store diffuses the risk of losses – The losses made by One
department of departmental store can be compensated by profits earned by other
department.

Advantages:
I. Shopping Convenience- A departmental store enables the customers to purchase
all their requirement under one roof and the customers need not go from one shop
to another for making purchases. This provides great convenience to the
customers and also saves their time and labour.
II. Wide Choice-The departmental store keeps a large variety of products and hence
offers an opportunity to the customers to select goods of their liking from a large
stock of goods of different qualities, brands, designs, colours, styles, etc.
III. Economies of large scale-Departmental stores, being large-scale establishments,
enjoy all the economies and benefits of large-scale organisations. This reduces
their costs and increases the profits.
IV. Liberal services-They provide many unique services to their customers like free
home delivery, accepting telephone orders, restaurants, recreational facilities,
reading rooms, after-sale service, etc. Some of the stores even offer credit
facilities to their customers.
V. Central location-A departmental store is generally located in the important central
place of a city. It is, therefore, easily accessible to the customers.
VI. Economy and advertising-The advertisement of one department is the
advertisement of the other departments also. A customer who enters a
departmental store to purchase some goods is induced to buy some other goods
also displayed in the store. Hence, one department advertises for the other.
Moreover, a departmental store pan advertises on a large scale thus saving in
advertising costs.
VII. Large Volume of Sales-Due to the various facilities provided by the departmental
stores, they make larger sales. Large turnover further reduces the selling cost per
unit on one hand and increases the profit on the other.

Disadvantages:
I. Distance-As the departmental stores are generally located in the central places,
people living at a distance cannot take advantage of the departmental stores.
II. High cost of operation-The cost of doing business is very high in case of
departmental stores as they have to pay high rents, salaries to staff and spend
much on various facilities provided to the customers.
III. Higher Prices-Due to high costs of operation and establishment, the prices of
commodities in departmental stores are comparatively high. Thus, only the rich
people can afford to take advantage of the departmental stores.

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IV. Difficult to establish-The departmental stores require a large amount of initial
capital investment and a number of specialised persons for their establishment.
V. Absence of personal contact- The owners of the departmental stores cannot make
personal contact with the customers. The sales are made by the employees who
may not care for the customers‟ satisfaction.
VI. Lack of coordination- There is a tendency of developing unhealthy competition
between the departments. The control and effective supervision of various
departments is also difficult to exercise.

2.2.2 PANTALOONS

Introduction:

Pantaloons Retail (India)Limited , is India‟s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai .

The company operates over 12 million square feet of retail space.

It has over 1000 stores across 73 cities in India and employs over 30000 people.

Pantaloons origin can be traced to 1987 when the company was incorporated as Manz
Wear Private Limited. Originally incorporated as Manz Wear Private Limited on October
12, 1987.The Company‟s name was changed to Manz Wear Limited on September
20,1991, further to Pantaloons Fashions (India) Limited on September 25, 1992 and to
Pantaloons Retail (India) Limited on July 7 1999. The company launched Pantaloons
trouser, India‟s first formal trouser brand. In 1992, Pantaloons launched its IPO. In 1994,
The Pantaloons Shoppe – exclusive menswear store in franchisee format was launched
across the country. Pantaloons started distribution of branded garments through multi-
brand retail outlets across the nation. In 2001, Big Bazaar, India‟s first hypermarket chain
was launched. In 2002, Food Bazaar, the supermarket chain was launched. In 2006,
Future Capital Holdings, the company‟s financial arm launched real estate funds,
“Kshitij” and “Horizon” and private equity fund “Indivision”. The company is also
planning forays into insurance and consumer credit. The Pantaloons Retail (India)
Limited, entered the retail market in 1997 with its first flagship store hosted by Kolkata.

22
Pantaloons began as a fashion retail chain. The Future Group launched it as its
introductory venture. Such was its popularity that by the year 2001, many more sub-retail
lines were launched that dealt in specific merchandise like footwear, fashion accessories,
food, grocery and electronics.

In 2013, Aditya Birla Nuvo Limited (ABNL) took over Pantaloons. Then, ABFRL came
into form after the consolidation of the apparel businesses of the Aditya Birla Group,
consisting of ABNL's Madura Fashion division and ABNL's subsidiaries- Pantaloons
Fashion and Retail Ltd (PFRL acquired in 2013) and Madura Fashion & Lifestyle (MFL
established in1988) in May 2015. Post the connsolidations, PFRL was renamed Aditya
Birla Fashion and Retail Ltd. (ABFRL).
MFL brands included Louis Philippe, Van Heusen, Allen Solly and Peter England.
The Collective, India‟s first and largest multi-retail brand for international brands, was
launched in 2008. In 2016, ABFRL struck a deal with a global luxury brand Ted Baker.
In 2017, ABFRL brought Simon Carter to India. In the same year, ABFRL entered into a
strategic alliance with American Eagle.
In 2018 Style Up, the family store was launched by ABFRL and it entered into a Store
License and Distribution Agreement with Ralph Lauren Asia Pacific Limited (“RLAPL”)
under the brand name Polo Ralph Lauren and Ralph Lauren.
In 2018 ABFRL entered into a Store License and Distribution Agreement with Ralph
Lauren Asia Pacific Limited (“RLAPL”) under the brand name Polo Ralph Lauren and
Ralph Lauren. ABFRL brings Fred Perry to India.

In 2019, ABFRL acquired ethnic wear brands, Jaypore and TG Apparel & Décor, for an
enterprise value of up to Rs. 110 Crore. In the same year, the company bought 51% stake
in M/s Finesse International Design Private Limited (“Finesse”) under the brand name
Shantanu & Nikhil.
As on 31st March, 2020, ABFRL has a network of 3,031 brand stores across the country.
It is present across 25,000 multi-brand outlets and 6,514 SIS across departmental stores
across India.

Leading brands at Pantaloons:

Pantaloons today retails over 200 licensed and international brands , including 24
exclusive in-House brands.
The Pantaloons exclusive brand bouquet includes Rangmanch , Ajile , Akkriti, Chalk ,
Annabelle, Trishaa, Alto Moda, Poppers, Chirpie Pie, besides , it also features brands
licensed on a long – term basis : Bare, Rig , Sf jeans , Byford, Jmsports and Lombard.
The company launches six new brands inFY'15 , including Alto Moda , SF jeans , Byford
, Poppers and Chirpie pie.

23
Pantaloons also hosts brands such as Louis Phillippe, Van heusen, Allen Solly, Peter
England and people in menswear ; van Heusen and Allen Solly in womenswear , and
Allen Solly Junior. It also retails partner brands such as John Miller , Celio , Spykar ,
Levis , and Lee Cooper in Menswear. Jealous 21 , AND , Chemistry and KRAUS in
women‟s ethnic wear , Barbie and Ginny&Jony in kidswear.

2.2.3 Chain Stores:

Meaning: A chain store is a group of similar retail shops that sell the same type of goods.
All these shops or branches are under the control of the head office. Branches are opened
in different parts of the city or even in different parts of the country.

Chain stores specialize in a particular product. The same product is offered in different
varieties and in different models.

Thus, while a departmental store draws customers to it, chain stores approach the
customers. This is done by the opening of branches in all parts of the country. „Bata Shoe
Company‟ is a good example of a chain store. „Arun Ice-Creams‟ is yet another example.

Another advantage of the system of chain stores is that it eliminates the wholesalers
totally. It establishes direct contacts with the buyers.

Characteristics of Chain Stores:

1.A group of stores (units) constitutes a chain.

2. Chain stores are centrally owned.

3. They enjoy some degree of centralized control of operations.

4. Individual units have very little autonomy.

5. They sell similar merchandise at retail prices.

6. Centralized purchases are made for all chain stores operating under the single
management.
7. Chain stores are horizontally integrated. With addition of each new store, the system
extends its operations to another group of customers.

24
8. Promotional services are undertaken in common to all stores. The cost of promotional
services is spread over all units.

9. Sometimes, chain stores are vertically integrated. They maintain distribution centres.
They buy from producers, have their own warehousing and then distribute them to their
own stores.

Disadvantages:

1. As chain stores deal only in a particular item, they may not attract many customers.

2. The head office may find it difficult to exercise control over a number of retail
outlets/branches established throughout the city/country.

3. The central office also has to maintain the relevant accounts in respect of every shop
and this again is a tedious process.

4. The product quality, price etc., are decided by the controlling office. The retail shops
have to sell what is supplied to them.

5. The retail outlets also have to be in touch with central office to get the stocks
replenished. There is also scope for delay.

6. Absence of credit sales in such a business again is a barrier.

7. Indiscriminate opening of branches without taking into account the buying potentials
of each place may result in loss.

Advantages:

1. Chain stores specialize in a particular product.

2. Such stores can cater to the needs of people in different localities.

3. Central location and luxurious premises are not required for chain stores.

4. There is economy in advertising. It is not necessary to advertise for each branch.

5. It is easy for the head office to identify an unprofitable branch and shift it to some
other place. If it is not feasible it may even be closed down.

6. Chain stores work only on cash basis. Bad debts, therefore, are totally eliminated.

25
7. The floor space required for a chain store is much less when compared with a
departmental store.

8. Such a store does not require many sales personnel.

9. If any branch has shortage of stock, it can draw from the nearest branch.

10. The overall cost of operation of a chain store is much less when compared with a
departmental store.

11. As wholesalers are eliminated, the cost of distribution is bound to be less.

12. „Uniform price‟ in all the branches is yet another plus point of Chain stores.

2.2.4 BATA

Introduction:

Bata India (NSE:BATAINDIA) is the largest retailer and leading manufacturer of

footwear in India and is a part of the Bata Shoe Organization.1
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up
initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the
foundation stone for the first building of Bata‟s operation - now called the Bata. In the
years that followed, the overall site was doubled in area. This township is popularly
known as Batanagar. It was also the first manufacturing facility in the Indian shoe
industry to receive the ISO: 9001 certification.
The Company went public in 1973 when it changed its name to Bata India Limited.
Today, Bata India has established itself as India‟s largest footwear retailer. Its retail
network of over 1375 stores gives it a reach / coverage that no other footwear company
can match. The stores are present in good locations and can be found in all the metros,
mini-metros and towns
Bata‟s smart looking new stores supported by a range of better quality products are aimed
at offering a superior shopping experience to its customers.
The Company also operates a large non retail distribution network through its urban
wholesale division and caters to millions of customers through over 30,000 dealers.
Besides owned stores, Bata brand is also available through a large network of dealers.
Bata, the name, stands synonymous with quality and has been the trustworthy footwear
partner for the Indian consumers. As a brand, Bata is aspirational, vibrant, and sought-
after. The company's mix of new products, innovative brand experiences, and impactful

26
brand positioning are sustaining its image as a bold and young-at-heart brand.
Commitment to quality, combined with an excellent mix of design, comfort, and
affordability, makes Bata the No. 1 footwear brand in India. Taking global, regional and
local fashion trends into account, the company endeavour to provide consumers with a
fresh new collection, every season.
Bata is the world‟s leading shoemaker by volume, designing stylish and comfortable
footwear at surprisingly affordable prices. Today, Bata remains a family business, which
serves over one million customers a day in its 5,300 stores, and producing locally in its
23 Bata-owned manufacturing facilities across five continents. Even though it is a global
company headquartered in Switzerland, the brand caters to the unique local needs of
customers in countries across Europe, Africa, Asia & Latin America.
Brands:

 MOCASSINO
 AMBASSADOR
 HUSH PUPPIES
 SCHOLL
 COMFIT
 MARIE CLAIRE
 BUBBLEGUMMERS
 WEINBRENNER
 POWER
 NORTH STAR
 NATURALIZER
 CAT
 BATA

How BATA is keeping it‟s feet on the ground during Covid-19 crisis:

As India Inc grapples with the impact of Covid-19 and the lockdown, Bata India is taking
measures to manage its fixed costs but also developing action plans for future scenarios
by looking out for changes in consumer behaviour. The footwear retailer also believes
that if the lockdown continues, the government will need to look at evolving its view on
classification of essential goods.

Sandeep Kataria, CEO, Bata India said, “From the footwear industry perspective, there is
the retail side of the business and then there is actual manufacturing side of it and we
have been in the zero revenue stage for the past three weeks. In the short term, we can
take some of these hits, but the bigger worry is about how it will impact our abilities in
the medium and long term.

27
“We have pretty significant fixed costs, including rentals as well as staff costs. As the
Prime Minister himself has advised corporates not to terminate staff or cut down wages,
as a company we are adhering to that,” he added.The industry has been seeking job support
subsidy at 50 per cent of the minimum wages from the government for a period of four months.
“We are in talks with landlords at high streets and mall owners on the issue of rentals. But the
reality is that they also need to service debts. So, a moratorium on debt payments for the short
term for mall owners and landlords is being sought and they can, in turn, pass on this relief to
companies like us,” Kataria said.

On the company‟s strategy during these challenging times, he said, “Our key focus has

been on ensuring health and safety of our staff. We are also analysing internally various
scenarios and are developing action plans. We expect to see many changes in consumer
behaviour in the short term and the long term,” he added.

On the strategy to be adopted for the business continuity plan, Kataria said, “We need to

put health and safety upfront. But we also need to think through on measures on how to

get the economy chugging again. If we are to open factories of products such as footwear,

electronics or apparel, we will also need to ensure that the retail stores are opened in a
phased manner.”

2.2.5 Consumer Cooperative Store

Meaning: A consumer cooperative store is a retail unit owned and controlled by
consumers. Any consumer can join the consumer cooperative store by buying its shares.
Each member has only one vote irrespective of his shareholding. Members get dividend
in proportion to their shares held in the cooperative store. Cooperative stores are run by
the consumers themselves for their mutual benefits.

Characteristics of Consumer Cooperative Store:

(1) A consumers‟ co-operative society is a voluntary association of persons and is

registered under the Co-operative Societies Act.

(2) The membership of these stores is open to all the adults.

28
(3) There is a democratic control and management of the affairs of these societies.

(4) Goods are sold to members or non members on cash basis.

(5) Capital of these societies is raised by issuing shares to the members. The shares are
usually of smaller denomination, so that persons having limited income could also
contribute and become members of the societies. Right to withdraw the capital is also
given to the members as and when they like.

(6) Every member is allowed to cast one vote irrespective of the number of shares
purchased by him. The societies operate on the principle of „one member one vote‟.

(7) Very less amount is spent on advertising. This is because the goods are mainly
purchased for the members.

(8) The accounts of these societies are regularly audited by an auditor appointed by the
Registrar of Co-operative Societies.

(9) The goods are purchased by the societies in bulk thereby availing the economies of
large scale purchasing.

(10) The members are given dividend on the amount of shares held by them.

Advantages of Consumer Cooperative Stores:

Consumer cooperatives offer the following advantages:

1. Consumers get goods of good quality

2. Goods are sold without adulteration

3. Goods are sold in correct measurement. Irregularities found in measurement of goods

are avoided.

4. Middlemen are eliminated

5. Prices are comparatively cheaper

29
6. Regular supply of goods is assured.

7. No credit is allowed. So, there is no fear of bad debts.

8. Consumer cooperatives are located conveniently in residential areas, thus they are
quite accessible

Disadvantages of Consumer Cooperative Stores:

Consumer cooperatives suffer from the following drawbacks:

1. There is paucity of funds

2. Often the managers and salesmen do not possess the requisite skill.

3. Accounts may not be kept on scientific basis.

4. Managing persons are not honest. They invariably swindle funds or divert stocks.

5. Members do not evince a keen interest in the functioning of the consumer

cooperatives.

6. Stock keeping is expensive.

7. Enough publicity is not given.

8. Members do not cooperate with the authorities of consumer cooperatives.

9. Door delivery and other facilities are not proper.

10. People in the management of cooperatives are bureaucratic.

11. There is lack of coordination with other cooperatives.

2.2.6 Apna Bazar

Apna Bazar, the synonym for the household consumables needs, is the brand name of the
Mumbai Kamgar Madhyawarti Grahak sahakari Sanstha Maryadit, a co-operative
organisation started in 1948 by a few people committed to social cause, while responding
to a clarion call of the nation for freedom. Amidst the festive mood and the enthusiasm

30
when India's tryst with its destiny was complete, a few people could guess what
independent citizens of India were destined to. The national economic policy was yet to
take shape. The whole world was facing scarcity of food grains, as a fallout of the Second
World War 1942. At this juncture, with a view to safeguarding the interests of working
class, people under the leadership of Veteran social leaders like Ashoka Mehta, S.M.
Joshi, N.G.Gore, Achyutrao Patwardhan, owing allegiance to socialist ideology, a
handful of activists from Naigaum, Dadar, a mill-worker dominated area, in Mumbai,
started a fair-price shop on 27th December 1948, under the name of the Naigaum Kamgar
Grahak Sahakari Mandal Limited (the Naigaum Employees Consumer Co-operative
Society) (NKGSM)

After the food, came clothing. Facing the acute shortage of clothing, the government of
independent India declared rationing of clothing and the NKGSM started a cloth shop in
February 1949. This organization then expanded its consumer activities beyond local area
of Naigaum and the name was changed to Mumbai Kamgar Madhyawarti Grahak
Sahakari Mandal to suit the diversification of activity. The State Government, satisfied
with the effective services rendered to the customers in a proper manner, granted the
status of a central consumers co-operative society. Having fulfilled the needs of food and
clothing, the MKGSM then started para medical activities. Keeping into mind, the need
and health and education of common man in the society with this view, the first medical
retail shop was opened in 1964. Today Sanstha is operating three medical counters
through its network. These medical outlets have earned goodwill to Sanstha, as the
customers have a clear faith, that only reputed companies and original medicines only are
sold at Apna Bazar. Apna Bazar as a partner in co-operative movement, has not only
served the Millions of households of Mumbai, but also has made humble beginning to
serve the people of rural Maharashtra in various ways. For example, Sanstha has been
procuring green vegetables and Rice, Wheat, Dalls, Cereals, pulses etc. direct from the
farmers. Sanstha is purchasing Alphonso Mangoes from farmers at Ratnagiri &
Sindhudurga Districts of Maharashtra State and helping economic growth of rural sectors.

Apna Bazar has also opened retail outlets at Deorukh, Lanja and Department Stores at
Ratnagiri and Khed to render better service to the consumers in rural areas and to
promote local entrepreneurship.

Apna Bazar Branch at Umargaon (Gujrat state) are also rendering excellent customers
services to Gujarati residents.

Thousands of official and non-official co-operators both Indian as well as foreigners,

have been visiting Apna Bazar every year and they are drawing inspiration from its
success story.

The achievement of Apna Bazar has been possible because of the dedication and
devotion of active participating members and visionary leadership, sincere, ungrudging
work of the employees and love and goodwill of millions of inhabitants and consumers of

31
Mumbai and Maharashtra. The management of Apna Bazar is grateful to all the
customers for their support to co-operative movement.

32
We were suppose to conduct an online surveys through Google forms about store layouts
, online retailing format , safety and difficulty of transactions , awareness creation
measures from the same etc.

2.3 CASE STUDY

I have conducted an online survey of PUMA retail through google form to understand
store layouts , 9nline retailing format, safety and difficulty of transactions etc. I collected
21 responses from different people and got various responses. Here is a briefly
described data collected from the survey.

All the people among the responses know about PUMA .

33
76.2% people like to purchase PUMA products

9.5% people do not buy PUMA products

14.3% of people are on both sides , they like some of the products of PUMA
.

34
31.8% people buy from retailer stores

27.3% people buy from PUMA official website

18.2% people buy from PUMA showroom store

13.6% people buy from Online Retailers

9.1% people don‟t buy PUMA products.

35
66.7% people prefer purchasing PUMA products online

33.3% people Don‟t prefer purchasing PUMA products online

36
86.4% of people feel that the store layout of PUMA is good and remaining feel that it is
vey good .

37
54.5% people prefer Cash payment

27.3% people prefer UPI/Netbanking/Paytm

13.6% people prefer Credit/Debit

38
68.4% of people think that transaction made is safe

26.3% of people think the transaction made maybe safe

5.3% think the transaction made is not safe

39
63.6% of people prefer PUMA product because of its quality

22.7% of people prefer PUMA product because of its price

9.1% of people don‟t have specific reason for why they buy PUMA products

4.8% of people prefer PUMA product because of its advertisonlin

40
63.6% people think PUMA products are affordable

31.8% people think the price of PUMA products is high

4.6% people think the price is very high.

41
54.5% think they should lower the price of product.

36.4% think they should improve style of the product

9.1% think they should improve the quality of product

42
50% people think PUMA retail stores maybe following all the Covid-19 precautionary
government rules

45.5% think they follow all the Covid-19 precautionary government rules

4.5% think PUMA stores don not follow Covid-19 precautionary government rules

43
26.3% of people rated 5 out of 5 to the quality of PUMA products

47.4% of people rated 4 out of 5 to the quality of PUMA products

26.3% of people rated 3 out of 5 to the quality of PUMA products

44
15.8% of people rated 5 out of 5 to the affordability of PUMA products

36.8% of people rated 4 out of 5 to the affordability of PUMA products

36.8% of people rated 3 out of 5 to the affordability of PUMA products

10.5% of people rated 2 out of 5 to the affordability of PUMA products

45
2.4 d)To study different store layouts, product display , logistics , and merchandising
strategy etc.

2.4.1 NIKE

2.4.1.1 Introduction:

Nike is an American multinational association that is involved in the design,

development, manufacturing and worldwide marketing and sales of apparel, footwear,
accessories, equipment and services.

The company‟s world headquarters are situated near Beaverton, Oregon, in the Portland
metropolitan area (USA). It is a major producer of sports equipment and one of the
world‟s largest suppliers of athletic shoes and apparel.

It employs more than 44,000 people worldwide and in 2014 the brand alone was valued
as $19 billion (€17,5 billion), making it the most valuable brand between sports
businesses. Founded by Bill Bowerman and Phil Knight on January 25 1964, as Blue
Ribbon Sports, the company became officially Nike, Inc. on May 30 1971. The company
was named after the Greek goddess of victory, Nike.

Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf,
Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including
brands Jordan, Hurley Int. and Converse.

Nike sponsors many high-profile athletes and sports teams around the world, with the
highly recognized trademarks of “Just Do It” and the Swoosh logo (which represents the
wing of the Greek goddess Nike).

46
2.4.1.2 Store Layout:

47
2.4.1.3 Store Frontage:

Store frontage is a factor that influences the customer.

It is a reflection of the personality of the store.

48
2.4.1.4 Interior Store Design:

Interior Store Design is a function of the aesthetics within the store

The merchandise sold within and the space used for the same and the overall layout of the
store.

49
2.4.1.5 NIKE manufacturing and Supply Chain Strategies:

Delivery precision is important for a multi-product and multi-jurisdictional company like

Nike, Inc. NKE. It improves margins, lowers inventories, minimizes price markdowns,
and makes sure that the customer receives the right product on time. Nike‟s
manufacturing network has over 525 factories in 40 countries. Products move from
several distribution centers across a network of thousands of retail accounts.

Nike manufacturing

Yet Nike owns no factories for manufacturing its footwear and apparel. The

company‟s footwear and apparel make up about 96% of Nike‟s branded revenues.

Instead, Nike outsources its manufacturing to third parties. It‟s a huge cost

advantage. Nike‟s supply chain sources most of its raw materials in the

manufacturing host country by independent contractors. The strategies of Under

Armour Inc. (UAA), VF Corporation (VFC), Lululemon Athletica Inc. (LULU), and
Adidas also include overseas manufacturers.

Nike is one of the pioneers of the manufacturing outsourcing strategy. It optimizes

the manufacturing and production processes. Plus, continued innovation and product

quality are keys to success. The company‟s lean manufacturing improves efficiency,

optimizes production, and lowers waste. Also, it drives quality and productivity.

Material consolidation, manufacturing innovation, and modernization support the

manufacturing process.

50
Footwear and apparel

Nike‟s footwear is manufactured outside the US by independent contract

manufacturers that often operate multiple factories. In the fiscal year 2019, 112

footwear factories in 12 countries supplied Nike. Also, contract factories in Vietnam,

China, and Indonesia made up about 49%, 23%, and 21% of Nike‟s footwear,

respectively. The largest single footwear factory accounted for about 9% of branded
footwear.

Like footwear, NIKE‟s apparel is also made outside the US by independent

contractors. In the fiscal year 2019, 334 apparel factories operating in 36 countries

supplied Nike. China, Vietnam, and Thailand made about 27%, 22%, and 10% of

total NIKE‟s apparel, respectively. The top five apparel contract manufacturers

together made about 49% of NIKE‟s apparel production. Additionally, one apparel
contractor made over 10% of the production.

Nike’s distribution centers

Also, Nike has license agreements that permit unaffiliated parties to manufacture and

sell Nike-owned trademarks, apparel, digital devices and applications, and other
equipment for sports activities.

Nike has six primary distribution centers in the US. Notably, four are located in

Memphis, Tennessee. Among those four, two are owned and two are leased. The

other two are located in Indianapolis, Indiana, and Dayton, Tennessee. Third-party

logistics providers run these two distribution centers. Also, Nike-branded apparel

and equipment products ship from a distribution center in Foothill Ranch, California.

51
The company had 67 distribution centers outside the US at the end of the fiscal year
2019.

Understanding Nike’s cost structure advantage

Keeping a tight grip on costs is important for any company‟s profitability and for

shareholder returns. Nike‟s gross profit margin is lower than some of its competitors,

including VF Corporation and Lululemon. However, Nike, through its Consumer

Direct Offense strategy, is growing its digital business. The digital business will

speed up revenue growth and supports margin expansion. Plus, the channel mix shift

(direct-to-consumer) will support the margins of athletic footwear and apparel

companies.

The Consumer Direct Offense strategy will help drive revenues, expand gross profit

margins, and drive EPS. NIKE‟s long-term financial goals through fiscal 2023
include:

 high single-digit revenue growth per year

 gross margin expansion of 50 basis points per year through mix shift to higher-
margin NIKE Direct business
 Leveraging expenses
 Mid-teens EPS growth per year

NIKE enjoys large pricing power in the marketplace. This is due to its ability to

innovate and provide a different product. Also, the company plans to expand its top
line.

Nike shifts to direct-to-consumer

Nike‟s also been investing a lot in expanding its Nike Direct operations. This
includes Nike-owned retail stores and digital platforms. Currently, revenues through

52
Nike Direct operations make up about 32% of the sales mix. Nike Direct sales have

high margins. Additionally, growth in the ratio of Nike Direct sales could positively
impact Nike‟s gross margin.

As a result of the shift in the sales mix to higher-margin geographies and Nike Direct

business, Nike saw great margins. The company‟s gross profit margin grew by 150

basis points to 45.7% in Q1 2020. This is compared to 44.2% in Q1 2019. Also,

Nike expects its gross margins to grow the remainder of the year but at a slower rate

than the first quarter. For fiscal 2020, Nike expects gross margins to grow by 50
points to 75 basis points.

Also, Lululemon, Under Armour, and VF Corporation are shifting sales mix to high

margin direct-to-consumer business. Lululemon‟s direct-to-consumer net revenues

made up 24.6% of total net revenue in Q2 2019. Meanwhile, direct-to-consumer

sales formed 35% of Under Armour‟s total revenue.

Administrative costs shrink profits

Despite the improvement in Nike‟s gross profit margins, selling and administrative

costs have been on the rise. As a percentage of revenues, Nike‟s selling and

administrative expenses were 31.2% in Q1 2020. This is up 40 basis points YoY.

Investments in demand creation, including advertising and marketing, impacted

costs.

Moreover, investments to support our innovation, digital platform, and wages drove

costs. Also, digital infrastructure, overhead growth, and event-driven promotional

expenditures are likely to grow Nike‟s selling and administrative expenses.

53
 2.4.2 ZARA

2.4.2.1 Introduction

Zara is one of the world‟s most successful fashion retail brands – if not the most
successful one. With its dramatic introduction of the concept of “fast fashion” retail since
it was founded in 1975 in Spain, Zara aspires to create responsible passion for fashion
amongst a broad spectrum of consumers, spread across different cultures and age groups.
There are many factors that have contributed to the success of Zara but one of its key
strengths, which has played a strong role in it becoming a global fashion powerhouse as it
is today, is its ability to put customers first. Zara is obsessed with its customers, and they
have defined the company and the brand‟s culture right from the very beginning.

The Zara brand offers men and women‟s clothing, children‟s clothing (Zara Kids), shoes
and accessories. The sub-brand Zara TRF offers trendier and sometimes edgier items to
younger women and teenagers.

Zara was founded by Amancio Ortega and Rosalía Mera in 1975 as a family business in
downtown Galicia in the northern part of Spain. Its first store featured low-priced
lookalike products of popular, higher-end clothing and fashion. Amancio Ortega named
Zara as such because his preferred name Zorba was already taken. In the next 8 years,
Zara‟s approach towards fashion and its business model gradually generated traction with
the Spanish consumer. This led to the opening of 9 new stores in the biggest cities of
Spain.

In 1985, Inditex was incorporated as a holding company, which laid the foundations for a
distribution system capable of reacting to shifting market trends extremely quickly.
Ortega created a new design, manufacturing, and distribution process that could reduce
lead times and react to new trends in a quicker way, which he called “instant fashion”.

54
This was driven by heavy investments in information technology and utilising groups
instead of individual designers for the critical “design” element.

In the next decade, Zara began aggressively expanding into global markets, which
included Portugal, New York (USA), Paris (France), Mexico, Greece, Belgium, Sweden,
Malta, Cyprus, Norway and Israel. Today, there is hardly a developed country without a
Zara store. Zara now has 2,264 stores strategically located in leading cities across 96
countries. It is no surprise that Zara, which started off as a small store in Spain, is now
the world‟s largest fast fashion retailer and is the flagship brand of Inditex. Its founder,
Amancio Ortega, is the sixth richest man in the world according to Forbes magazine.

2.4.2.2 Store layout:

55
Floors-2

Traffic flow- wide passage is kept between racks shelves and other fixtures

Signage – On top of the racks and suspended from the ceiling

Department store – Best selling merchandise is placed towards the right

side of entrance as research says that customers turn right when entering
the shop

2.4.2.3 Exterior Atmospheric:

Storefront- Glass fronts , especially in new buildings

Marquee- ZARA is return in black , white , silver or gold letters ; looks minimalistics

Display Windows – Latest trends are on display and changes are made every day

Visibility – High visibility , always located in prime location having high footfall
numbers

Parking – Is always available

Accessibility – Since always located in prime location , easy accessibility is available

56
57
2.4.2.4 Interior Atmospheric:

Flooring- White or light cream ceramics are used

Lightning- Combination of ambient and track lightning . Light have yellow hue.

Walls – They are plain, designed or textured walls are avoided to ensure merchandise
take centre stage .

Temperature – Store interior is always cool and welcoming

Trial rooms – Trial rooms are located towards the furthest side, away from the entrance

Personnel – Sales personnel‟s are very helpful. They ensure that customers needs are
taken care of

Cleanliness – cleanliness is always spot on

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2.4.2.5 Business Strategy:

Market oriented strategy – Understand customer needs

High velocity production

Industry leader in lead time

Fiercely competitive pricing strategy

Target Audience

Unique promotions strategy

Logistical Trade – Offs

The vertically integrated strategy comes at a cost, however. Competitors can

book factory space in advance abroad for less money and with greater
production assurances. Zara manufactures most of its products in Europe
where it is more costly.

However, an overwhelming majority of Zara‟s sales are in Europe.

According to Zara‟s official website, sales by geographical region show
Europe with 66%, Asia with 20%, and America with 14% of sales.
Outsourcing to Asia necessitates very costly transportation costs back to its
biggest market. Therefore, by keeping manufacturing at home, Zara
circumnavigates this cost. Something many other clothing retailers simply
cannot replicate because they rely so heavily on cheap manufacturing labor
from Asia.

Control over design and manufacturing by keeping manufacturing processes

close to management centers also makes garments both higher quality and
easier to manipulate. Not only are European workers more skilled, European
capital equipment is more precise. The confluence of better capital
equipment and more adept employees results in higher quality garments.
Moreover, vertical integration and locating manufacturing close to markets
enables Zara to manipulate designs and churn out new ones very quickly,
introducing Zara‟s second most important strategy.

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 3 CONCLUSION
With the consumer spending that is prevalent in the economy, due to various reasons,
„Reliance Retail‟ is bound to grow. It has established a brand image in the minds of
consumers, the modern Indian family, the youngsters and the local shops as well.
However, competition is intense, be it from players like Amazon, Wal-Mart or D-Mart.
Reliance Retail has to stay ahead of its peers in order to grow and maintain a competitive
advantage. Finally, with its expansion into mid and low tier cities, it has a tremendous
opportunity to capitalize on the growth of consumerism in those markets.

The differentiators, I hope „Reliance Retail‟ will sustain in the coming decades, are its
reach, exclusivity, reputation, and value proposition for everyone.

Online Survey of PUMA through Google forms :

1) Thus from overall observations we can conclude that People prefer purchasing
PUMA products but maximum people prefer purchasing online.

2) Both the product display and store layout are quite good according to observation

3) Cash is most preferred mode of transaction

4) Maximum People does not face any difficulty in transaction while making a
purchase in PUMA Store

5) Most of people feel safe while visiting PUMA stores even during pandemic due to
all the protocols strictly taken

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CONCLUSION:

Nike is an American multinational association that 8s involved in design ,

development , manufacturing and worldwide marketing and sales of apparel
, footwear , accessories , equipment and services. It employees more than
44000 people world wide , making it most valuable brand between sports
business . Store frontage of Nike is factor that influences the customer . Nike
footwear's is manufactured outside US by independent contract
manufacturers that often operate multiple factories. The company‟s gross
profit margin grew by 150 basis points to 45.7% in 2020.

Zara is one of the world‟s most successful fashion retail brands . The zara
brand offers men and women‟s clothing , children‟s clothing , shoes and
accessories . Store layout of ZARA is well designed . Exterior and interior
atmosphere of Zara is well organized.

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.References/Bibliography/Webiography

Reliance Retail Limited:

 relianceretail.com
 www.ril.com
 www.123helpme.com
 fernfortuniversity.com
 www.mbaskool.com
 dyvmwwyqozzzb.cloudfront.net

Virtual tours and analysis of Departmental store , Chain Store,

Consumer Cooperative Store:

 www.yourarticlelibrary.com
 accountlearning.com
 www.preservearticles.com
 www.ukessays.com
 en.m.wikipedia.org
 www.thehindubusinessline.com

Online Survey on PUMA through Google forms

 www.google.com

Study of store layout , product display , logistics etc of NIKE and ZARA

 eightinc.com
 marketrealist.com
 www.ukessays.com
 en.m.wikipedia.org
 www.slideshare.net
 toughnickel.com

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APPENDIX:

Discount coupon of Reliance Trends:

Questionnaire:

1] Have you ever heard of brand PUMA?

2] Do you like purchasing brand PUMA products?

3] How do you buy PUMA products?

4] Do you prefer purchasing PUMA products online?

5] How do you feel about the store layout of PUMA?

6] Which mode of transaction you prefer more?

7] Do you think the transaction you made is safe?

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8] Why is that you prefer PUMA?

9] The price of PUMA is

10] Which aspects do you think PUMA need to improve on their products?

11] Are the employees of PUMA store following Covid-19 precautionary

protocols as per government rules?

12] Rate the quality of puma products according to you.

13] rate the affordability of puma products according to you.

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