Location sadar bazar chaibasa

Category women wear

Layout

Product presentation

Security criteria - 6 cameras and 1 security gaurd

Promotional strategy

Return and exchanged

Target segment (only unorganized) - girls and ladies above 18 years

Opening time closing time 9:00

Product portfolio (only unorganized) saree kurti plazo gift items innerwear

Pricing strategy (only unorganized) - 50%

Find from store: -

Customer engagement- also include special services

Type of ownership properitorship

Technology used – tally billing, stock maintaining, mode of payment

Sales 5000000

Investment 2000000

Margin 50%

Sales person 3

Avg salary of sales person 10000

Footfall 50 customer

Recruitment process interview

Profit margin 10%

Monthly expenses 20000

Type of Retail Store:

 Retailing Process: Providing a wide range of women apparels, starting from Indian Ethnic wear
to undergarments.

 Ownership: Sole Proprietorship

 Type of Different Channel Format (if any):

o   Shree Boutique has its own store where they sell their apparels.

Retail Store Size, Location, & its Appropriateness :

 Located in the busy area at Sadar Bazar, Chaibasa

 The Size of the store is roughly around 300 sq. ft. (As told by the Store manager)

Product Assortment and Their Respective Target Segments:

Girls & Women

For Women, the categories are:

 Ethnic Suits

 Sarees

 Undergarments

Pricing Strategy implemented:

 The pricing strategy used here is a combination of Cost-Plus Pricing and High-Low Pricing
Strategy(s)

Store Planning:

  This outlet consists of 1 floor – one in the ground floor, completely dedicated to Apparels.

  This Outlet had used a Free Flow Layout, as the store layout.

 Average Daily Footfall: 50 people

 Sales: (For the Period of Jan. 2022)

 Gross Sales: 25,00,000/- (Approx.)

 Net Sales: 22,00,000 /- (Approx.)

 Sales Growth: (Negative Growth due to pandemic)

 Sales per unit of Space: Total Revenue / Space Available

                                     = 25,00,000 / 300 = 8333.34/-

 Category Wise Sales: (App. Figures)

Women’s Wear = 25,00,000

 Profit:

o   Gross Margin = Revenue – COGS / Revenue

COGS = 15,00,000 (App.)

=(22,00,000 – 15,00,000) = 7,00,000/30,00,000 = 31.81%

o   Net Margin = (Revenue – COGS – Operating Expenses – Tax Liability) / Revenue x 100

(22,00,000 – 15,00,000 – 5,00,000 – 50,000) = 1,50,000

1,50,000/22,00,000 x 100 = 6.8%

Efficiency:

 Conversion Rate = Number of Sales / Total No. of Visitors x 100

As mentioned by the Sales Representative, out of 50 visitors to the showroom per day, at least 8-10
people make purchases.

So, total no. of visitors in a month = (50 x 30) = 1500

No. of visitors who make purchases = 10 (Assumption)

Total Sales in a month = (10 x 30) = 300

Therefore, Conversion Rate = 300/1500 x 100 = 20%

 Average Transaction Value = Total Revenue of a Period / Total no. of transactions handled

= (22,00,000/300) = 7333.34/-

 Inventory Turnover = Total Sales / Avg. Inventory

= (22,00,000/18,00,000) = 1.22 times

Product Returns:

 As per the Sales Representative, they faced 3 to 4 return claims per week, when there was a
defect in the product or the product was not according to the customer’s needs.

 So, on a monthly basis, there could be around 10 to 12 returns made by the customers.

 
  GM Return On Floor (GMROF) = Gross Margin (%) x Net Sales / Selling Space

                                                = 31.81% x 22,00,000 /300

                                                 = 2332.8 /-

 Gross Margin Return on Inventory Investment (GMROII) = Gross Margin / Average Inventory
Cost

 = 7,95,250 / 18,00,000 = 0.43 times

Employee Productivity:

 Sales Per Employee = Net Sales / No. of Employees

           = 22,00,000 / 3

                                       =7,33,333.34/-

Sales to Sales person Cost Ratio 

Net Sales = 22,00,000

Total No. of Salespersons = 5

Sales per Employee = 7,33,333.34/-

Sales: Salesperson Cost Ratio = (7,33,333.34/ 22,00,000) x 100 = 33.34%

Form of Ownership: Franchise
Merchandise Offered: Specialty stores
Format:
Location: KIIT Road, Patia
Store Size: 2500sq. ft.
Product Assortment:
Breadth: Slippers, Sandals, Shoes, Bags, Socks
Net margin: ₹ 3,00,000
Conversion rate: 20%
Average transaction value: ₹900
Inventory Turnover Ratio: 0.80 times
Number of Employees: 5 (1 Manager, 4 Sales person)
Employee Productivity: ₹ 280000
 Length: Sports Shoes, Casual Shoes, Formal Shoes, Party Shoes
Target Segments: All age groups
PRICING STRATEGY:
✓Discount pricing strategy found (Sold on 50% off on MRP)

SPACE ALLOCATION:
Cash Counter: 3sq.ft
Other departments: 2500 sq. ft.
• • VISUAL MERCHANDISING: o Wall glass grid show
•
• • MERCHANDISE PRESENTATION PLANNING o Shelves
• o Glass case table counters
• o Store lighting: Yellow and white lights
• o Space for 20 to 30
• o Interior design- Wooden glass cases, premium quality chairs and sofa
• o Premium store ambience
•

• STORE AMBIENCE:
• STORE PROFITABILITY:
Average daily footfalls: 350
Average Number of Bills: 60/day
Average inventory: 2 crs/ year
Price Range: ₹ (150 – 9000)
Sales (Monthly)
Total sales: ₹ 15,00,000
Net sales: ₹ 7,50,000
Cost of goods sold: ₹ 11,00,000
Gross margin: ₹ 5,95,000 (@35% margin)