UNIVERSITY OF MANAGEMENT & TECHNOLOGY

Retail Management
SAPPHIRE

Group Members Name & Id’s:

Khawaja Sheharyar Nawaz

F2017005062

M Ramiz Hussain
F2017005158

Muhammad Suleman
F2017005001

M Ali
F2017005068

Shaheryar Khawar
S2018005034
 Cross Reference of the Work Done by Each participant

The following table shows the name of the team members and the works that they have
contributed. The work contributed is shown in the heading covered column and it is also
explained in terms of color. Each member has a specific color and the heading covered by them
is defined by their color with the help of a colored shape attached against the concerned
heading. The heading covered is the cross reference of the work conducted by them. The
referenced work can be assessed by pressing CTRL+ click or enter.

Name Heading Covered Color

(REFERENCE)
Khawaja Sheharyar Nawaz a., b., c., d., e., f., g., h.
M Ramiz Hussain 5.
Muhammad Suleman 6.,k.,l.,m.
M Ali i., j.
Shaheryar Khawar 1., 2., 3., 4., 7.

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 Table of Contents
1. Executive Summary...............................................................................................................3
2. Acknowledgements.................................................................................................................4
3. Group Details..........................................................................................................................5
4. Visit Details.............................................................................................................................7
5. Organization Retail (AUDIT)................................................................................................8
a. Current Environment............................................................................................................8
b. Current Generic Digital Marketing Objectives...................................................................11
c. Current Digital Marketing Problems..................................................................................11
6. Analysis of Consumers.........................................................................................................13
a. Who are they?.....................................................................................................................13
b. Where are they?..................................................................................................................15
c. How are they?.....................................................................................................................16
d. What do they Want?...........................................................................................................16
e. Why do they want what they want?....................................................................................17
7. Market Research..................................................................................................................20
a. Current Views of the Target Market...................................................................................20
b. Market Trends and Patterns................................................................................................20
8. Retail Plan.............................................................................................................................23
a. Positioning in Retail Business............................................................................................23
b. Category of Retail Store.....................................................................................................25
c. Retail Concept....................................................................................................................25
d. Retail Location....................................................................................................................27
e. Target Customers & Targeting Strategy.............................................................................27
f. KPI’s...................................................................................................................................28
g. Competition........................................................................................................................29
h. Retail Strategy....................................................................................................................29
i. Store Concept......................................................................................................................30
j. Product Mix & Store Strategy............................................................................................34
k. Pricing Strategy..................................................................................................................36
l. Promotion Plan...................................................................................................................38
m. Financial Plan..................................................................................................................41

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 1. Executive Summary
The purpose of this project is to present a digital retail plan of the selected brand or organization
by the project members. The total of five members had started this project with the mutually
decided brand ‘Sapphire’. The brand was decided because of the ease to which the data for such
a prominent organization can be extracted. The brand’s retail outlet in Y-Block DHA Lahore
was visited for the purpose of drawing conclusions and getting the hands on real time data.

Organization Retail Landscape Analysis was an audit conducted to gauge the current
environment, current generic retail marketing and the retail marketing of Sapphire. Consumer
analysis was also conducted for the sake of retrieving the type of consumers Sapphire targets.
Questions like Who, Where, How, What and Why related to the consumers were catered. A
detailed market research was also undergone.

The market research established the bounds to which the Pakistani public wants with the
clothing, makeup and other similar domain. The current view, market trends and patterns and
lastly secondary industry reports with forecasting retrieved from existing researches were also
reviewed. A detail analysis was conducted to understand the strategies implemented by the
competitor and to gauge the level of engagement they have with the consumers.

The retail plan was also the part of this retail marketing project. The retail plan revealed the
total of 13 sub headings which revealed important and informative details about the brand.
These 13 sub headings reviewed included; positioning in retail business, category of retail store,
retail concept, retail location, target customers, KPI’s, competition, retail strategy, store
concept, product mix, pricing strategy, promotion plan, and financial plan.

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 2. Acknowledgements
First of all it is thanks to the Almighty Allah that we all have come up to this stage where we all
can confide in each other and help establish things together. It is His will that has led us towards
the right path of completing our project. We were able to complete this work due to the skills
and abilities we possess and all that we possess has been bestowed by Allah to us.

We all would like to acknowledge the efforts of our instructor who has remained patient with us
throughout and catered our problems with their experienced judgments. It is thanks to Sir that
we are able to find the way which was lost somewhere between the heavy deadlines of subjects.
But due to the ultimate teaching skills of Sir we were able to grasp the advanced concepts and
manipulate it in a way where we can understand the dynamics of completing a project.

Lastly we all would acknowledge the parents of each of the five team members; it is the
parents’ guidance and their hardworking which is now being reflected through us. The love of
our family and loved ones has been the continuous source of motivation in serious setbacks of
piling of the works. We all would also acknowledge the support of our friends and each of the
team members that have helped when the help was direly needed and patted the shoulders of
each other that led to the completion of this project.

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 3. Group Details
The group contains five members in total that responsibly held out all the designated tasks and
compiled the project successfully. The details including the names, ids and the pictorial
representation of each member within the group are presented below. All the tasks completed
by the individuals are also explained within their specific description. The tasks assigned to
each of the individuals were done so by keeping their abilities in view. The shaded box shows
the color of the headings covered by each individual.

Name: Khawaja Sheharyar Nawaz

ID: F2017005062

Khawaja Sheharyar Nawaz was responsible for the research

section. With group meetings it was evident that his research
skills could be used to provide the utmost research needed.
This was the sole reason why he was assigned the main parts
present in Retail plan starting with positioning, and category of retail.

Name: M Ramiz Hussain

ID: F2017005158

M Ramiz Hussain is believed to be a good and decent writer. His

ability to notice the tiniest of the details were recognized and he
was assigned to do the detailed heading of Organization’s Retail
Audit.

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 Name: Muhammad Suleman

ID: F2017005001

Muhammad Suleman has always shown tendencies to analyze the

situations the best. His ability to research well is also commendable
that is the reason why he was given the heading of Pricing Strategy,
Promotion plan, and financial plan in Retail Business.

Name: M Ali

ID: F2017005068

M Ali is the technical specialist of the team. His ability to create

unique content with commitment and diligence is quite remarkable.
This is the reason why he was assigned the important headings of
Store Concept, Product Mix and Store Strategy.

Name: Shaheryar Khawar

ID: F2018005034

Shaheryar Khawar possesses the ability to polish things and give

them a magnificent finishing touch. Moreover to plan out the
directives concisely is also one of his abilities. Compiling the
work; Executive Summary, Acknowledgements, Group details,
Visit details, Target Customers and Competition.

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 4. Visit Details
The brand selected for the project was Sapphire. The necessary details required to get the
overall gist of the brand and its key hold required to select a single branch and then visit it. The
y-block market in DHA Lahore has been considered a hub for shopping and is quite famous.
We all mutually agreed on visiting the y-block branch of Sapphire. The brand on its own is
quite famous targeting both the genders male and female. Female clothes have quite the biggest
yields and thus many types of riots occur there.

The visit provided us with real time hands on the data of the targeted consumers as well as the
physical location and management of the retail outlet. The staffs were complacent with us and
helped us in understanding the target users of the brand in a better way. We all observed the

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tiniest details as each of us were given a significant role thus each had their own way of
observing and making conclusion which would help them in their assigned role.

5. Organization Retail (AUDIT)

8 Years Growth at a Glance YEARS 2020 2019 2018 2017 2016 2015 2014 2013

We have analyzed 8 years report of sapphire in audit analysis and also financial and sales
sheets, In audit we have come to know that sapphire is not only regulating the section &
constitutions of Pakistan but also meeting the international standards in mean of exports.

With our analysis and observation we have come to that conclusion that they are implementing
almost all key factors that could help the retail store to give its maximum output. For example,
if we talk about the basics of retail store under Sapphire retail audit there all locations have
similar and attractive interior and exterior having decent staff promotions and tags and there
services are also satisfying.

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 Sales

13%
Training our team
Identifying right technology
43% 16% Improving the ROI of marketing
Generating Traffic & Leads

28%

a. Current Environment
If we talk about current situation now scenes are little bit different now stores are open but for
limited time with safety measures on the other hand majority people have concerns to buy on
shop because of their own satisfaction.

Now if we move on to the environment of retail store, first of all we should know what makes a
customer happy. There are many things but we will try to cover few of them, the first thing is
your location of store then interior and exterior of it then how’s it smells (good or bad), is your
sales man is having good enough knowledge about the product to make your customer satisfied,
we will add some basic characteristics in environment pricing tag, promotion tag and their
shelves should be formally set also floor should be cleaned and rest room also.

So up till now sapphire is having all characteristics to be have a good image in market.

One is thing bit differentiating that now a day’s sapphire is offering 20% off on master card
online as well as retail.

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b. Current Generic Digital Marketing Objectives
One more thing in strategy is that they should present the promotion product in such away its
should not look old as well as it should be hanged or placed in shelves properly. Like any other
organization sapphire is trying to compete the local needs as well as international standard,
every organization aim or goal or objectives is to earn profit with the happiness of their

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customers. They are providing high end product with high price. If someone has analyzed that
sapphire is an expensive brand in local market especially in underdeveloped country like
Pakistan, he should consider that they didn’t compromise on quality.

Sapphire is providing exact high quality as per online shopping as well as retail shopping up till
now. 30 days return policy is very admiring and they give free delivery on on all orders above
2000/-. One more thing they said that we are available 24/7 days a week any time customer can
contact us.

c. Current Digital Marketing Problems

Let’s talk about some challenges and issues they face may in future. No doubt sapphire is giving
its best but in future may be a new competitor comes in market with some innovation in design
or an old competitors improved their stores or product. What should they do? In that case
sapphire has to maintain its high quality as well as they should know what customer is
demanding because fashions changes with time and relying on same pattern could be dangerous
for their massive sales. Last but not the list Sapphire should make more attractive products and
hire new and trendy models for their advertisement (tv, social media or banners).

6. Analysis of Consumers
Consumer’s analysis is the process of gather information from the market and research
on it and then targets the consumers according the market segmentations it very helpful

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for firm to reach the costumers easily. Analysis of the consumers is use to find the needs
and wants of the costumers.

a. Who are they?

A consumer is a person or a group of a person who buys the goods, any products or buys
any services, its social or primary for personal use or their family used and pay some
amount of money for the thing required to consume goods and services

Consumers play a vital role in the economic system of the nation whenever the induvial
consumer purchase things from the market either purchase consciously or unconsciously
he or she choose one product instead of another product, each penny that they spent on
the product is equal to the one economic vote and also in the fever of the particular
product and against its product competitor. Its means a single consumers purchasing is
very important for the whole economy whatever the consumers is belong to any class
they add some money in the economy.

Now we will discuss about the costumers of the Sapphire as sapphire is the top class
brand in the Pakistan and they target the elite class and upper middle class of Pakistan
their prices are little bit high as their competitor but they provide premium products to
their consumers and target all market segmentations.

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  Demographic Segmentation:
 Geographic Segmentation
 Psychographic Segmentation
 Behavioural Segmentation

Demographic Segmentation: As demographic segmentation is based on the gender,

age and income of the consumers and sapphire has targeted the high income because
they have high prices and they also target specific gender Women they offer women
clothes, bags and their shoes and makeup and sapphire has a brand of young generation
they only target the young women because their designs are made for young women.

Geographic Segmentation: Sapphire also belong to the geographic segmentation’s

because they target only big cities as their retail stores are only in three cities in Pakistan
like Karachi, Lahore and Islamabad and they also open their stores in Dubai soon so
they target the high class audience and elite class lives in a big cities and sapphire brand
have big retail stores they also choose special places in the city for example MM Alam
road Lahore and Emporium, Packages mall. So they target special places for their
special consumers.

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Psychographic Segmentation: In psychographic segmentation consumers shared their
beliefs, attributes and their intrust according on some special factors as sapphire is a
good brand and have good image on the consumers so they belief on the brand image
and they said sapphire never disappoint their consumers their customers have trust on it
and they never break that sapphire give a good lifestyle to their consumers as they offer
high quality women products and won the women hearts.

Behavioural Segmentation: This segment of the consumers is depend upon the

purchase behaviour of the costumers so sapphire fulfil that need of the costumers as they
never break the heart of the consumers behavioural segmentations is based upon the
customer loyalty and sapphire and their consumers both are loyal with each other.

b. Where are they?

As sapphire targeted the elite class audience and here are the factor of geographic as
they target only big cities and also big market place in the cities there consumers are also
belong to high class area like Defense, Wapda town Gulberg and the posh area of the
cities. Sapphire has very good locations in the market to compete their competitors as
more than 60 brands is already give tough time to sapphire but they have good and
welcoming stores and also provide online facilities to their consumers so it’s very easy
to everyone to purchase their product through their online website they have extensive
assortment of huge variety of women products they provide a very good environment to
their consumers.

Sapphire also offer sale in off season and they marked down their prices so middle class
also afford their products and there are lines of the consumers who are waiting for their
turn they increase their sales and achieved their revenue goals.

Online website of the sapphire is very helpful for their consumer as sapphire is only in
three cities and it’s very difficult to manage their consumers to buy product but their
strong online website is fulfill their consumers’ needs and want they have strong

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internet channels for communications for their costumers so it’s very easy to buy
sapphire product through their online website.

c. How are they?

They are many brands in the market as we already discuss about that and sapphire is one
of the top brand in Pakistan and they established in 2014 so sapphire group grow up
very rapidly. There is huge competition in the market and everyone is pulling the legs of
each other in this difficult and tough time sapphire has very loyal customers because
sapphire never disappoint their consumers they fulfill each and every thing of the
consumers their behavior with costumers is so good, way of talking and also provide
exchange policy to their customers in term of any misleading. Sapphire takes oath and
commit that they provide quality goods to their customers and never disappoint them.

Sapphire consumers have strong belief on the brand image and they trust on it. Sapphire
has WOM marketing its just because of their consumers WOM means “word of mouth”
its means people discussion about the brand and influencing other people regarding
brand image I happens when consumers believes their friends and family the WOM is
the most valuable source of the marketing and it has cost free marketing according to the
survey more than 92% people trust on their friend and family and they believes on them
so sapphire the opportunity of word of mouth marketing through their loyal consumers.

d. What do they Want?

Consumers have countless desire of want, for product and service especially the women
they want each and everything for looking perfect so Sapphire is the brand who fulfill
their consumers need and want they offer high quality clothes of women, shoes, bags,
make and now also provide the jewelry so sapphire provide each and everything their
consumers for looking perfect. Cloths are the basic need of the person and good cloth are
the desire of the person as we discuss sapphire only provide premium quality cloths to
their consumers. They follow the three market steps to make a perfect product first one
is industry analysis as Pakistani textile industry is very huge and its very difficult to

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manage that and making new designs but sapphire made the best and thousands of new
designs in every year and second one is competitors analysis as there is huge
competition in the market and sapphire competitor Ethnic and Khadi they give tough
time to their competitors and make special designs for their consumers. And in the last
they know their SWOT analysis their strength; weaknesses, opportunities and threats if
you want to give breakthrough to their competitors you must know internal and external
factors of the firm. Sapphire know their know their SWOT analysis that’s why they
easily compete their competitors and their products are so special even consumers wait
to buy new variety of sapphire some time they make customized product from sapphire.

e. Why do they want what they want?

Some people want things because they need to be and some of people want because they
have some special occasion in their family and most important is some people just buy
the product for showoff there are different behaviors of the consumers regarding their
need and demands. Life style is very important factors of people now days and they
want good life style that’s why they prefer sapphires product because sapphire fulfill
every need of a customers by their special products they have different categories in
their product for example simple wearing fancy wearing and party wearing so the
costumers buy the product according to their need.

AS u seen in Muharram-Ul-Haram that every brand is advertising black cloths and it’s
just because this month is special occasion for ahle Sunnah and on ‘Eid they advertised
differently so sapphire behave differently for different consumers as some consumers
just buy their products because they have high income and they want to show off for
other people. Sapphire sold their products through different channels.

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First one is personal selling second is through online website and the last one is through
their sales promotions. Personal selling means they sold their product physically in their
stores, consumers who want to buy personally and don’t trust on the online shopping
they buy their products through their stores and next is online website of the sapphire as
in the world of technology people like to buy products at home and just choose the
product and order and in just few days they have their product at their place and in the
last some consumers wait for the sales promotions as sapphire has very high prices so
they wait for the sale and then they buy the product from sapphire because after sale
middle class also afford their prices and they happy to purchase sapphire products.

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Consumer’s rights and policies:

Here are some important factors of the consumers Consumer rights and Consumer
policies first we will discuss about the consumer rights and it’s very important for the
any brand in the market they make some exercise on consumer rights. The most
important point is consumer safety brand should provide the proper safety products and
protect the costumers against the goods which are not safe for the health of the
consumers because their lives are very important for us if they are safe whole nation are
safe. Next is the right of information that shopkeepers and all whose person who sell the
product to the consumers they must told about proper information regarding their
product and protect the costumers again fraud and misleading information and to be
given the facts he needs to make an informed choice. And the last one is they must have
right to be choose they assured that the consumers have the variety of products and
available in reasonable prices and government should take actions against who selling
expensive and low quality product to the consumers they need to be an assurance of
satisfactory quality and service at fair prices.

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Now consumer policies are very important for the sake of consumer’s satisfaction and
it’s the government responsibility to provide proper policies regarding consumers they
need to be make some proper law regarding consumers protection as costumer is the
nation and government has the responsibility to safe the nation, as all potential voters are
also consumers, consumer protection has a clear political significance. The most
important is consumers also know their rights they need to be research and they have
some knowledge about the products which they are choose to be used.

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 7. Market Research

a. Current Views of the Target Market

Sapphire is a well-known retail brand in Pakistan because of its wide range of high-quality
product provided to consumers. Sapphire has made it clear to them self about the customers and
their needs & wants. It also has very well-defined sort of target market which includes, high
income group, gender, young age and based on their lifestyle.

Customer persona of sapphire

This technique helps sapphire to have actually a

deeper view of their customer. Because if you
get to know about your customer this close then it is
more likely you will be able to hit the right
audience and get the more lead gen.

b. Market Trends and Patterns

Before getting into any market, it is important to get some idea about the scope and growth of
the market. if you see the market trend in case of Pakistan and its potential growth, fortunately

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Pakistan clothing industry is witnessing raising trend (up-wards) in terms of market share and
growth. Lately in the covid-19 Pakistan’s textile industry is able to gain news heights. Contract
which was made between GAP and ALKARAM TEXTILE is one of the best examples of
Pakistan’s clothing market.

Clothing trend in Pakistan:

Pakistan is a place where very divers culture exists and every person who belongs to certain
culture love to follow its custom and norms and celebrates it with all out. In Pakistan people
love to make clothing purchases on the arrival of any event. If it’s a Eid or any other event
everybody loves to go for shopping and buy some stuff for themselves. Keeping that in mind
brands come up with new market trends every season. Because of dynamic environment people
demand more and more designed and innovative products.

Brands keep on changing trends for instance market trend for the female clothing is of ready-
made kurtas with trousers, trend of medium shirts and cigarettes pants is also in the market.
This trend changes over and over with season to season same goes for the men.

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Sapphire is very much is trendsetter it has always been on their toes to deliver something in the
market which is very catchy in the eye of the customer and goes trending. Sapphire even with
its vast Varity and offering still he is able to deliver and live up to the expectations of their
customers by providing them unique and new designed products very season.

And if you talk about the price trend of this market it also has a upward direction due to some
reason prices of the products keeps on increasing every year. There are many factors which play
its role in it but the most important factor is high-cost production and heavy sales tax which
made it very tough to stick with a certain price bracket

Talking about pattern here of this market if you talk about covid times pattern of the sales
volume if is facing downward though the price is facing upwards pattern over the years due to
inflation and high exchange rate.

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 8. Retail Plan

a. Positioning in Retail Business

“Positioning is a place that the product occupies in consumers’ minds”

Position gives brand an edge over its competitions, that’s why positioning is very important
aspect of marketing. In ordered cement your brand image in the mind of a consumer you
need to come up with the position strategy. Same is in the case of SAPPHIRE.

Perceptual Positioning map:

Making perceptual map will help brand to cement his position when the brand is operating in a
highly dynamic and competitive environment. Before brand actually cement his position in the
mind of a consumer it is important for brand to actually understand his position in the market,
that where we stand as a brand? What is the position of our competitors in the market and in the
mind of a consumer?

For that matter you need to draw a perceptual map and look where your brands stand in the
mind of a consumer, it’s an estimate and it can vary consumer to consumer.

Sapphire perceptual positioning map:

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Positioning statement (tagline):

Identification of brands position is tough but it is even tougher task to deliver it to the
consumers and convince them about the position of the brand. It can be done only by targeting
the needs of the people and differentiation factor. But before we actually transfer our brands
position in the mind of a consumer it is really important for the brand to bring every employee
on single page and made them believe about the brand position, once every employee is
confident about brand position it will become a little easier to deliver it to the consumer. In case
of sapphire, they say “WE HAVE SOMETHING FOR EVERYONE” this intent shows that
they are well aware of need of their consumer and their high-class fabric products makes a
difference for them.

USP (unique selling proposition of SAPPHIRE):

Another important factor of position of SAPPHIRE is

its USP. As it says it has something for everyone.

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This statement shows its intent and makes SAPPHIRE unique as it has party wear, unstitch,
readymade, traditional stuff all under one roof.

Brand Positioning strategy (sapphire):

Positioning strategy helps brand cements its position in the mind of a consumer. This can be
done through heavy advertisement and it is also done by the customer (words of mouth). But
before we actually do it all we need to define our brand strategy and in case of sapphire they use
these strategies.

1) Price based strategy

2) Category based strategy

SAPPHIRE Price based strategy:

As sapphire itself claim that it provides high quality fabric and we all know that high quality
products aren’t cheap. Sapphire position itself as a price based that I will target certain income
group of the society (high income group).

Category based strategy:

SAPPHIRE positions itself in the category brand strategy because of its wide range of
products which are being offered by sapphire. They have something for everyone. In clothing
department, they are almost leading it from the front.

b. Category of Retail Store

Sapphire is a specialty store where you can find apparels and it is subjected to good buying
power in the community, more young population. Clothing is main product that sapphire has to
offer to its valued customers.

More products? As for now sapphire is already dealing in many other categories which
includes home accessories. Style guidelines, women’s bags, women shoes, makeup it has

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huge range of products to offer which is for now is enough because of its specialty category its
almost offering everything that helps you look even more attractive. Although sapphire would
like to add more products for its consumers.

c. Retail Concept
Experience is the key when it comes towards a retail. The concept of a retail store is that you
should provide customer the best experience, a retail store must be customer oriented. A
coordinated effort must be made in ordered to develop retail store; it should be value driven
because you need to provide some value to the customer so that he should offer you back-to-
back visit. All of these coordinated efforts must be done in ordered to achieve certain goal
which is to build a good customer relation and enhance customer experience and then retain the
existing customers.

Sapphire is work force led store, for the ease of the customer there is cooperative staff
for the assistance of the customer and to resolve the issue or queriers related to purchase hence
making it easy for the customer to make a purchase.

Online store is kind a game changer now a days. It is really important to have an online store
a place where you can show case all of your products without an issue of inventory space.

KPIs for online store will be time spent on website, exit rate, lead generation rate,
retention rate.

These KPIs will be followed for the online store by sapphire. It is really important to
consider these factors while running an online store and if you want gain some
customers.

Time spent on the website by the customer is very important it will give us an idea how
interestingly they are using it an making a purchase.

Retention rate is also important and cost of retaining customer is also very important to
consider while running an online store

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Concept of online store is to create an integrated network with the help of omni-channel.
It is really important at this point to understand that you cannot generate leads or online store
will do you no good if you are not making it easier for customer. If customer is having good
time in making an online purchase, issues are getting resolve on time, and from adding to cart to
checking out provides a seamless experience to the customer it will turn out to be a very pulse
point that’s why we will have an online store which will integrate through omni channel.

Sapphire has to offer services which has some value in the eye of a customer keeping this
concept in mind. Sapphire will provide patronage solidifier service to its customer. Al though
it is a low-cost service but it will earn you locality. Sapphire staff will be trained to offer this
service. On the entrance and on billing counter staff will greet you by welcoming and thanking
you when you have purchased a product. Staff might ask for the name and contact num and
even date of birth to wish customer on their day.

Basics services will be offered as well because these are the services which are naturally
expected from the brand its absence could damage patronage. Free parking outside outlet

d. Retail Location
As sapphire is a brand which target high income group it is very important for the brand to open
its store where these income group can reach outlet easily. For physical store sapphire will open
its outlet in shopping malls, and commercial site ( DHA Y block, Gulberg). As their target
market is very well defined as they know about their positing in the market well so it is
important to be in a area where those people can approach easily.

Online store delivery due to huge network of sapphire and due to availability of currier
service in the market it is possible to deliver all over Lahore but customer has to make a
purchase of 2000 at least for the delivery.

e. Target Customers & Targeting Strategy

Sapphire has defined its target market well as well as its target market strategy. Based on
different segmentation sapphire has come across its target market which makes retail store
shoppers tick. Based on demographics, life style, shopping attitudes and behaviors as well
as retail actions. They use this information of its target market. For demographics they target

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based on (gender, age and income group), they also target some specific personality group
which comes under life style. For those who have certain benefits and behavior about certain
product these people fall under behavior category. That’s how target market is behind through
different segments and then you can target them to get the best result out of it.

Targeting strategy of sapphire

Sapphire follows differentiated targeting strategy du to its wide range of products and different
segments of market. It is really important to understand that sapphire has something for
everyone which makes it tick as a retailer that it has to target different segments as it has
different clothing’s like traditional and western wear. Then it has many other beauty products to
offer, moreover, it has a lifestyle guide so, differentiated targeting strategy is followed.

Online and offline market is similar of sapphire but range has increased in online store

f. KPI’s
The key performance indicators for sapphire are listed above. As for sales per square feet. In
ordered to check this a certain area is allotted to specific product and sales from that portion is
monitor then it is figured out that how productive this area is in terms of sales.

Customer retention is another KPI used by sapphire, as we know it is harder to get new
customer than to keep existing ones happy. So, sapphire is keeping an eye on the customer
relation management in verge of making a bond that will never broke and that’s how retention
can be achieved.

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Conversation rate:

Sapphire also takes it as a KPI in order to see how

well their strategies are paying them off. They keep an
eye on the factor that people came in actually bought
something or they keep an eye on the factor total people
who visited the store divided by the number of
purchased of that day. This gives them a good look at
their activities.

g. Competition
KHAADI & AL-KARAM are the competitors of sapphire as both them are very large
group and share same customer. KHAADI and ALKARAM are much more towards young aged
group and have plenty of things to offer.

Strategy of khadi is consumer based as they are in touch with coke studio and it will give them
a margin over the other brand which is Al-karam. Khadi is also using prestige strategy

Al-karam on the other hand uses competitor-based strategy to get in the market.

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AL karam has its own branding style and has studio called al karam studio which makes this
brand tick as well in the mind of a consumer

h. Retail Strategy
Sapphire has made its retail strategy in a way which provides him the complete info of its
customer, sapphire is fully aware how to stimulate customer needs and what can be possible
similar products for them. Sapphire also makes an integrated experience of purchase in store.
Pushing this experience forward irrespective of time and space sapphire making it happen
through its omni channel that customer gets overall seamless purchased experience.

i. Store Concept
how will you arrange the store?

To arrange the clothing store you must keep few things in mind.

Customer Desire

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 When customer look at the store there should be a desire in them to but the clothing that
is available in the store.
 Customer convenience
When customer is finding for their desired cloths it should be easy for them to find by
themselves. One should manage the store in this way that there should be convenience
for the customers.
 Easy to manage
The stock management is a big task. There should be perfect management of store that it
should be easy to manage all the stock and shelves.
 Colors
There should be colour scheme of cloths so it will make easy for the customers to find a
specific colour dress.

How will you manage aisles?

 Aisle design
There should be a principal for the aisle design for the stores. There should be a pattern
for the store. Signs on left or right of aisle will help the customers to find a desire thing.
 Signs
Putting a sign in aisles may help store. If you will put a sign in aisle saying “touch to
feel the quality”. It may help Sapphire to increase the sales at the store.

Interior

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  Flouring
The flouring should be fine in a way that it attracts the customer and they feel
comfortable while walking on it. A clothing store like sapphire must have their signature
flooring.
 Lights
Lights of the store gives vibes of the clothing. If the lights will be dim customer will not
be able to see the clothing and details. There should be a balance of lights at the store.
 Changing rooms
There should be safe changing rooms for the customers to give them a good shopping
experience.
Talking about the Sapphire I guess this brand is completing every aspect to increase the sales in
market.

Exterior

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  Personal touch
At every sapphire store there is a personal touch of the store that makes it special and
appealing in market.
 Cleanliness
Cleanliness is the main key factor for any store which makes it attractive for the
customers and increase more shopping.
 Speciality in Exterior
The exterior of every clothing store should look demanding and attractive. It expresses
the clothing of the store. A customer can judge the clothing set inside by just looking at
the exterior of the store.
What would be the colour combination?

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The colour combination depends on the clothing of the store and designs. Every season other
stores and sapphire also launch a new colour scheme for the customers to attract them for
shopping. Colour scheme only works when you choose the right colour.

How are you going to manage the floor?

Floor management is a very tough task. You have to manage each and every thing on the floor.
Tables and shelves, racks and hangers. In Sapphire and every clothing store there is a floor
manager who manages all the problems and designs in the store. It includes keeping a check on
staff, customer help, management of cloths, looking after colour scheme etc.

Each product category is allowed a specific space. Like festive clothing has a space according to
the idea of how many sales in festive can possibly done. Each of the design at the store requires
a specific small space.

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j. Product Mix & Store Strategy

Sapphire
product Mix

Shirts Pants Dresses

Casual Formal Colors 5 varities

12 Varieties 3 Varieties 4 colors 9 colors

8 size 4 colors 8 Sizes 4 colors

Sapphire is Keeping High-end Strategy

Sapphire is giving high prices to the customers. They have luxurious strategy aims creating the
highest brand value in the market. They are creating high pricing power by leveraging all
intangible elements. Their customers want a certain level of sophistication and details in their
clothing and products. They are willing to spend as much as sapphire demands for their
expensive prices but only if the Sapphire make and effort in its work. People pay for the
consistent quality but the quality should remain consistent forever. Sapphire attains a very
perishable value in the market. We can say that their strategy lies on “Pay more get more”.
Sapphire makes sure that they make their product demanding enough and give it a soul.

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k. Pricing Strategy
PRICING STRATEGY IN RETAIL BSUINESS:

Pricing strategy in retail business is core aspect of any business that sells products to
customers. Its means that consumers think about the price when they purchase anything
and then take decision to purchase thing and pricing is the basic concern of every
costumers either they belong to elite class, middle class or low class they first saw the
price of anything they purchase and then make decision. When any retailer store make
strategy plan they should take survey of the market and then setting price of the product
and when you become a retailer remember one thing in your mind that you should take
decision according to your long and short term goals because pricing strategy is very
affect your business plan.

The objective of retail pricing is that retailer seeks to maximize profits and keep profit
margins high. Now day’s retailers are very strong and stable in their business and their
pricing strategy is shifting into the weekly schedule and price is the first priority of every
retailer and the main objective of retailer they must manage their time and keeping their
stores in good condition until they can draw more consumers in the high season

Pricing strategy of SAPPHIRE

The pricing strategy of Sapphire is high because they provide premium quality of
product to their consumers and they target the elite class and upper middle class only.
They said dressing is the way of life that’s why they provide high quality of women
dressing in the big market there are many brands in Pakistan that offering women clothes
like ethnic, Khadi and Al-Karam but Sapphire is the top brand in the market and won the
hearts of their consumers by their outclass products.

Sapphire is established in 2014 and they grow very rapidly in the market place where the
competition is already very high and now a days Sapphire is the finest brand in the
market because they provide 100% good quality and pure fabric and latest designs to

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their consumers many brand in market that they offer low price and affordable price but
sapphire only offer high quality product and that is the reason of their high pricing.

Sapphire is the big name in Pakistan textiles and they launched thousands of design on a
year and made a place in the long list of women clothing brand sapphire is commitment
to their consumers that they provide quality goods to their customers and they also
promise that their prices are match to their product quality.

Sapphire is used 2 types of pricing stagy:

1. Skimming Pricing
2. Discount Pricing

Skimming pricing means that the brand charge high price in starting and then low the
price after some time Sapphire is used the same pricing strategy because when they
launched their designs they set the high price and when the design is short or the
shortage of sizes they also low the price of the product skimming pricing is used to get
more consumers it’s a very good strategy that sapphire is use to gain more profit.

Discount pricing is the strategy we used when we marked down our products the reason
behind the discount pricing is to increase the number of consumers and also increase the
sales Sapphire is used same strategy in the shape of sales they offer the sale to the
consumers and offer low pricing to increase the traffic of the consumers when sapphire
offer the sale the numbers of customers are waiting to their turn and standing in line an
hours to just bye the premium products of the sapphire in lower price.

Retail marketing Price above market price

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 Mix variable
Location Sapphire has very good locations in the market place and they compete
their competitor in the market and they have huge parking to facilitate
their consumers their outlets in Karachi, Lahore and Islamabad and also
launching in Dubai soon.

Service Sapphire has many retails store to personalized attraction with their
Attributes consumers and they also provide the online facility to their customers
and also have 7 days exchange policy in the term of any misleading.
Their worker behaviour is also very good with customers and they have
ethics to talk with their consumers.

Assortment Sapphire has extensive assortment and they have huge variety of women
fabric, bags and shoes.

Store Sapphire outlets are very outstanding and very welcoming to their
Environment consumers their store decoration is so impressive and very attractive.

l. Promotion Plan
Promotion means that you are promoting something or advertising something. In retail
business you must have some promotions plan and make good strategy of your product
to promote as everyone knows that it’s a huge completion in the market now a days you
must have good tools good team to promote your product .Everything is depend upon
your marketing strategy.

When we are talking about the promotions we know that we have best channels to
communicate with our customers that they know each and everything about us we
should have best department to for promotions like marketing, financing and HR
department if you have theses department you can easily promote your product. Before
promote your product you must have market knowledge and then you have a good plan
you should take the feedback regarding your product and collect analyse the data and

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then take good decision according to your plan if you have these all things means the
right information at the right time to ensure your customers have the right items at the
right price.

Promotion plan of Sapphire:

Sapphire has very good promotions plan according their products they have very good in
marketing strategy they have a special agencies to promote their products they used
digital way of marketing as they offer wide range of women products they choose best
models for their brand promotions they also have Facebook and Instagram pages to
promote their products they follow the step to promote things like they doing all those
things that haven’t used in past and then identify the area where they need to promote
their products and approach that area and promote their products in logical way. It’s a
very good pattern that Sapphire follows in their promotions plan.

Sapphire have best marketing model that their consumers easily understand their
products and like their product very much they follow the three elements first is
industry research and second one is competitive analysis and the last is SWOT analysis
of their brand. SWOT analysis is the best way of good promotions plan you must know
your brand strength, weaknesses, opportunities, and threats. In Pakistan textile industry
is very big and there are many difficulties to compete with the competitors as almost
more than 60 brands is existing in the market and everyone has good promotions plans
like Khadi and Alkaram but sapphire compete all the brands and have best sales in the
market. Sapphire has best guidelines of promotions they choose everything perfect like
their logo, color scheme everything is decent according to their brand image. Sapphire
has very strong advertising they also have very good locations to their stores which is
also very big benefit for the sapphire they choose best channels for communications,
they have good paid media promotions and they also provide proper information to their
consumers regarding their product and also distribute the prospects to their current
consumers these strategy are used by sapphire and reach their revenue goals.

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 Technology is the main part of very business now days and without technology you
can’t be compete your competitors sapphire has latest technology regarding their brand
they use big screens and multimedia in their outlets they also have very good and strong
online website of their brand and according the recent survey sapphire almost have 40%
sales through their website and it’s a very good technology that sapphire is used. Social
media is the best way of promotions now days and it’s very easy for firm and as week as
the consumer’s easy understanding of the products and sapphire promote their products
through social media sites and their pages on social media witch provide sapphire very
strong brand promotion.

There are four types of promotions:

1. Personal selling
2. Advertising
3. Public relations
4. Sales promotion
Sapphire follows all these promotions types like first is personal selling its means
sapphire have many big retail store where they promote and sell their product face to
face to their consumers they promote their product through their appearance and their
attitudes and have special product knowledge. Second is advertising as we already
discuss about the sapphire advertising they have strong advertising channels. Third one
is public relation it means that what would be the company relation with their consumers
as sapphire has very good public relation and it’s also called WOM that brand is
promote person to person and famous through brand relations with the public. The last
one is sales promotion as we already discuss about the sapphire sales promotion that
have very big sales in off seasons and there are lines of consumers who are waiting for
their turn.

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m. Financial Plan
Financial planning is a task that how business is determined will afford to achieve a
specific goals of the firm every business is depend upon their financial plan and
sapphire has very strong financial planning as everyone know that sapphire is a very
strong group they have good resources, equipment and material to achieved their
objectives.

Sapphire follows the some steps to their financial planning;

 They established the good relationship with their clients

 Collect the clients information
 Analysis the Clint information which they gathered
 Develop the financial planning
 Implement the financial planning

These are the basic steps witch sapphire are following to archived their goals and
sapphire also passionate the women to maintain their wealth for example they offer
multiple options to their consumers and they best choices regarding their products.
Sapphire has highest financially standard in the market and they promises and signed the
Oath they provide better life to their consumers.
Capital expenses of sapphire:
Sapphire has many capital expenses as they have many big stores and their buildings and
their fixed assets which includes their computers their software and their store
equipment’s are in capital expenses sapphire has good team to manage all these capital
expenses and they do so well and they have strong financial resources to fulfill their
need and they easily solve all their problems.
Operational expenses:
Sapphire has also operational expenses as they have many stores in the cities like
Karachi, Lahore and Islamabad their many stores are on rent and they paid huge rent and

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utilities on month basis they also have inventory costs, marketing cost because they
spent huge amount of their branding they also have insurance and payroll and sapphire
allocated the funds to their research developers. Sapphire has the best management to
control theses operating expenses to gain more profit.
Payback period of sapphire:
In the last we discuss about the sapphire payback period. It means the payback period
refers to the amount of time it takes to recover the cost of an investment. The payback
period is the length of time an investment reaches a breakeven point. As sapphire has
strong group and their payback period is very short and easily reached their break-even
point. Payback period is calculated by dividing the amount of the investment by the
annual cash flow. This formula is require to meet the initial cost of the investment it may
take many years to get back the initial investment but sapphire meet their initial
investment within a month as they have huge sales and they make good revenue they
easily recover their investment cost achieved their goals.

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