RETAIL BUSINESS

MANAGEMENT
INDIVIDUAL ASSIGNMENT

SUBMITTED BY
MUHAMMED ISMAIL N
B2562
 LULU GROUP INTERNATIONAL
LuLu Group) is a widely diversified conglomerate in strategic positions worldwide with
successful business organizations. The LuLu Group, founded by renowned business visionary
Yusuff Ali M.A, has been a key contributor to the economic status of the Gulf region with an
annual turnover of USD 7.4 billion. Headquartered in the capital of the United Arab
Emirates, Abu Dhabi, it is a world-renowned service provider with an international business
portfolio ranging from hypermarket activities to the construction of shopping malls, the
manufacture and exchange of products, hospitality properties, and real estate. The LuLu
Group operates in 22 countries in the Middle East, Asia, the US and Europe.

 OVERVIEW OF RETAIL SECTOR

U.A.E is the key country where the retail chain of lulu has its substantial activities. With the
advent of technology and the constant updating of goods, the growing demands of consumers
around the world have contributed. As a result, there is a reduced throat rivalry among
businesses as they all aspire to gain a significant share in the global market. The strategies
developed and the functioning of the Lulu hypermarket have greatly affected the hypermarket
sector in the UAE. The LuLu hypermarket has become the market leader for UAE
supermarket chains. The company's marketing and business strategies are responsible for the
company's growth and popularity in the global market. Lulu hypermarket was capable for the
high performance of workers, productive ways of ownership and the use of the latest
developments seen in the market. In the global market, the LuLu retail industry has been very
creative and aims to achieve environmental sustainability. Many policies and initiatives for
the advancement of people in society have been implemented. The management of the LuLu
hypermarket has been sufficiently skilled to provide the operations with the best possible
marketing and business plan.
  EVOLUTION OF LULU

LuLu Group International's very first store was in Abu Dhabi, UAE, in 1995. In the Middle
East countries, the company then established several department stores. In 2000, the LuLu
Group founded the LuLu Hypermarket, located in Dubai, the total estimated strength of the
entire company currently consists of more than 118 chains around the world and has an
incredible 32 percent of the retail market share. It ranks 11th in the list of the world's biggest
expanding retail chains, and the LuLu Hypermarket chain's outlets currently employs more
than 35,600 workers from different nations.

Vision

To truly become a global retail brand by retaining the No.1 position in the organized retail
sector of the regions it operates in and strive to be the preferred employer for its multi-ethnic
base.

Mission

To provide a unique shopping experience to customers with unmatched value in terms of

quality of products and services, while continuously exploring new market opportunities and
adding value to all its business associates.

Commitment

LuLu always strives to follow ethical business practices in all spheres of activities right from
sourcing of products from around the world to selling those at the fairest price across our
stores, ensuring a smile on everyone’s face and bringing happiness to all.

 LULU GROUP PROTFOLIO

LuLu is the Middle East's fastest-growing retail chain. Today, LuLu Group International is a
highly diversified company with activities that cover a wide geographical landscape. The
Group has interests in Imports & Exports, Trade, Shipping, IT, Travel & Tourism and
Education, led by the retail division. Currently operating in 34 countries, the company
operates 136 retail storesA major expansion plan over the next 10 years has been
announced by the
company. The Lulu Group has evolved from its modest beginnings to a business with deep
roots in the Gulf. In the retail sector, which now has branches across all continents, it is seen
as a benchmark. The faith and trust of its clients and business partners and a sense of
belonging sense of belonging remain its greatest assets.

 Hypermarkets, Supermarkets and Department Stores

In the early nineties, the company opened its first supermarket in Abu Dhabi and eventually
expanded to cover various parts of Abu Dhabi. The Group started to grow in other Emirates
with the introduction of LuLu Centres, the department store format, and had firmly
established its presence in the regional retail sector by the late nineties.

With the launch of the first LuLu Hypermarket in Dubai, the company embarked on an
ambitious expansion plan in 2000. The rest is history, as they say. Today, with 136 stores
spread across the GCC, India and Egypt, LuLu Hypermarkets, Supermarkets and Department
Stores dominate 32 percent of the retail market share and is known as the retail leader
consistently setting new benchmarks for the retail market industry.

The Group has always sought to be a one stop shop for the multi-ethnic population of the
region with an international mix of goods as well as workers of various nationalities, strongly
pursuing the tagline "LuLu, where the world comes to shop". The 500,000 plus shoppers who
support LuLu every day are a real testament to the success of the LuLu brand.

 Shopping Malls

A wholly owned subsidiary, Line Investment & Property LLC (LIP), is responsible for
spearheading the Group's foray into the shopping mall and mixed-use segment of the project.
LIP has successfully launched several big projects in the last six years of its operations, such
as Mush Riff Mall, Khalidiyah Mall, Al Wahda Mall, Al Raha Mall, Mazyad Mall and Al
Foah Mall. It also secured the management rights of Abu Dhabi's renowned Madinat Zayed
Shopping Centre and Gold Centre.

This division is currently working actively to launch new projects with 11 malls in different
stages of construction in Dubai, RAK, Muscat, Doha, Kuwait, Bahrain and Saudi Arabia. LIP
currently operates more than 8 million sq. ft of Gross Leasable Area (GLA) and plans to add
another 5 million sq. ft of prime retail space in 2012.with new malls in Abu Dhabi, Fujairah,
Muscat, Doha, and Kochi in India.
  Fresh & Frozen Foodstuff

The Group is able to remain competitive in the dynamic marketplace through large-scale
imports and wholesale delivery of fast-moving consumer products. Direct imports guarantee
premium goods with outstanding cash value, while state-of-the-art logistics ensure their
efficient delivery to the retail network. EMKE stores manage a wide variety of FMCGs and
are renowned ship chandlers in Abu Dhabi, while EMKE General Trade, with a well-trained
workforce and a large fleet of modern distribution vehicles, takes care of the Dubai &
Northern Emirates markets.

Retail & Wholesale Distribution

.Al Tayeb Cold Stores, Doux, Frangosul, Dat Schaub, Tyson and Heinz Watties are the
exclusive importers of many of the leading brands of frozen meat, poultry, vegetables and
dairy products. This division has an outstanding infrastructure setup, including
comprehensive cold storage and distribution network facilities. The Est. of Al Tayeb Import
and delivery of fresh and frozen Indian meat and poultry

 DIRECT COMPETITORS OF LULU RETAIL

Carrefour: Carrefour is engaged in offering supermarkets and department shops. Its

operations include hypermarket service and management, supermarkets, convenience stores,
cash and carry stores, and websites for both food and non-e-commerce. Founded on July 11,
1959, the company is based in Boulogne-Bullecourt, France.

Choithrams: Choithrams was established by Thakurdas Choithram Pagarani in 1943. They

named the retail store T. Sons and Choithram. Today, Choithrams has operations in 19
countries. 16,000 individuals worldwide, its workers

Reliance Retail: Reliance Retail is the group's retail program and is central to its companies
facing customers. It has forged deep and lasting ties with millions of customers in a short
time by providing them with limitless choice, excellent value proposition, outstanding service
and unparalleled experience in all its stores. Reliance Retail has embraced a multi-prong
approach and operates a network of neighbourhood shops, supermarkets, specialty stores and
online stores and has democratized access for Indian consumers to a range of goods and
services across different segments.
Future Group: Future Group is an Indian conglomerate company headquartered in Mumbai,
Maharashtra, India, founded by Kishore Biyani[1]. With prominent supermarket chains such
as Big Bazaar and Food Bazaar, the business is known for having a significant prominence in
India's retail and fashion industries, lifestyle stores such as Brand Factory, Central, and so on.
The company also has a prominent presence in the manufacturing sectors of integrated food
and FMCG. Future Retail Limited and Future Lifestyle Fashions Limited, two Future Group
operating companies, are among the top BSE-listed retail companies in terms of assets.

 INDIRECT COMPETITORS OF LULU RETAIL

AMAZON

Amazon was founded on July 5, 1994, in Bellevue, Washington, by Jeff Bezos. It began as an
online book marketplace, but grew to sell electronics, software, video games, clothes,
furniture, food, toys, and jewellery. Amazon surpassed Walmart by market capitalization in
2015 as the most profitable retailer in the United States. In 2017, for US$13.4 billion,
Amazon purchased Whole Foods Business, which greatly expanded its presence as a physical
retailer.

E BAY

Established in San Jose, California, eBay Inc is an American multinational e-commerce

company that facilitates consumer-to-consumer and business-to-consumer transactions
through its website. Pierre Omidyar founded eBay in 1995, and the dot-com bubble became a
notable success story. As of 2019, eBay is a multibillion-dollar organization with operations
in around 32 nations.

 COMPETATIVE ADVANTAGE

LuLu Hypermarket adopts operational excellence and smoothness, which is accomplished by

using the resources efficiently and building better inventories for the same. In order to ensure
that a proper balance is achieved between demand and supply, operations must be maintained
by proper handling of the flow of data, products and inventory management. One of the most
important strengths of the LuLu Hypermarket is the location and facilities offered for the
display and sale of its items. In terms of customer support and experience, it has developed
benchmarks. The location created for the LuLu hypermarket is very exotic and user-friendly
in different cities and nations. The allocation of parking and space outside the LuLu market is
also extremely user-friendly and contributes to customer satisfaction.
  Retail Strategy
The main market of the LuLu Hypermarket is the retail chain that it has developed
through all the countries of the Middle East and in many of the Asian countries in the
world. It has wholly owned subsidiaries of its products in the different countries. They
have been using this strategy since the inception and it has generated very positive
results for the company.

Statement on Sustainability

LuLu hypermarket has always been focused on the environmental and social benefits through
its service and structure. This is quite clear from the statement provided by the Managing
Director of the LuLu Hypermarket, M.A. Yusuff Ali which is given as flows: “Operating in
various countries, and confirming to social requirements in these regions, have made us
conversant with the concept of a free and fearless world where everybody can live in
harmony with each other, and our commitment is to enable the realization of this world in
every way we can”. This reflects the company's contribution to the establishment of peace
and harmony in society and also contributes to the vulnerable in society through concerted
efforts.

Marketing Research and Analysis

The market research has made a major contribution to the growth and profitability of the
Company's goods and services. It includes considering the market size of the future global
markets open to the LuLu Hypermarket. Based on the business research, LuLu imports the
goods as well as purchases them from local suppliers.

 Target Market Segment Strategy

It is very important for the LuLu Hypermarket to establish strategies based on the target
market that it has in the countries where it operates. The desires and demands of the
consumers are evaluated on the basis of the target market chosen. This is achieved by
evaluating customers with respect to various products, receiving reviews from customers and
receiving direct advice from customers about their requirements and expectations from the
product. The market is segmented on the basis of this target market approach. There are
various ways of market segmentation, such as Geographical, Demographic, Behavioural,
Psychographic, Occasional, Cultural and Multi-variable. As the hypermarket includes various
goods, it observes different segments in its Marketing Plan and Estimated Market Share The
marketing plan is built on the basis of the estimated market share predicted by the company.
This marketing strategy is built
on the basis of the establishment of a synchronization between the different elements to give
a considerable advantage to the LuLu hypermarket.

 Market Strategy – Marketing mix:

 Product
Developing a high quality, cost-effective product is the strength of the LuLu
Hypermarket and the customers are happy with their product. The element of
individuality has been preserved in each and every product of the business.
 Place: Sales and Distribution
The hyper market of LuLu has built a very powerful and smooth distribution channel
through the establishment of full sales distributors for the goods. The networks of
sales and distribution that have been introduced by the LuLu hypermarket are via all
the retailers and dealers that are locally present.
 Pricing.
The desires and expectations of the consumers have been taken into account at the
same time as the prices of goods and services in the LuLu Hypermarket. The price is
very effective compared to the high quality of the product offered by the company.
This has been appreciated by the people in the UAE, and they have preferred the
LuLu hypermarket to the better items they require from the market.
 Promotions and Advertising
They have built a large part of their schemes and promotional deals through social
media as well as in some public places such as malls, parks, tourist attractions through
media ads. Successful marketing medium includes the provision of posters in public
places, the creation of small social media ads, the provision of a personalized app for
the LuLu hypermarket where consumers can conveniently check in and buy goods.

 LOCATION STRATEGY

The type of location of the shopping site, the LuLu hypermarket, is often a stand-alone
location. This is because the LuLu hypermarket is situated along the main road, which is
located in the strategic area of the residential area and the industry. Other than that, Lulu’s
hypermarket will be the only retail store in that region so that they do not have to compete
with any other retailer or brand. The hypermarket of LuLu dominates the market in that area.
The retailer in this site is mainly a larger business and well-known retailers because of the
challenge of attracting and retaining customers in an isolated area.
HUMAN RESOURCE MANAGEMENT

The management structure adopted by LuLu Group for LuLu retail has been very successful
in establishing success and high market share among global markets. Management has been
very significant in the production of goods and services that can meet people's needs and
provide them with significant market growth. Managers have been highly educated and
specially trained to ensure a high level of functioning and productivity in the organization.
Time to be allocated by the management The management consists of various managers and
supervisors with regard to the different departments involved in the production and sale of the
product across the established chain.

 SWOT ANALYSIS OF LULU

 STRENGTH

• The exclusive and wide variety of goods and services offered by the LuLu
Hypermarket guarantees a special place in global markets.
• The establishment of a firm foundation and input from customers has improved the
degree of customer satisfaction.
• Constant gradation and the development of enticing schemes have attracted a
significant number of customers.
 Weaknesses
• The biggest drawback is the lack of successful ties with local businesses.
• They do not purchase or sell anything in particular by offering partnerships to small
local dealers.
• Increased competition on the global market to create a substantial market share
has influenced the selling of the business.
 Opportunities
• The ever-increasing GDP of the major countries offers a pool of opportunities for
the LuLu hypermarket.
• The growth of tourism and other related activities will also provide a wide range
of opportunities for the LuLu hypermarket.
• The high quality of service they provide will expand the reach of their customers via
social media.
 Threats
• The biggest challenge to the hyper market of LuLu is the market entry of potential
rivals.
• The low rates offered by the rivals are a major challenge to the LuLu hypermarket
customer base.
• There is a massive challenge from online businesses that supply cheap goods in a
substantial way, which will draw more buyers and lead to a change in customers from
the LuLu hypermarket. new online company.

 FUTURE CHALLENGES

 CUSTOMER CENTRIC APPROACH

It's all about keeping the customer in the middle of your company. Customized
customer focus continues to fuel demand and industry success. Brands that have
stayed grounded, have done their homework by listening to customers and gathering
the necessary market insights will continue to expand.

 GROWING FOCUS ON RESEARCH AND DEVELOPMENT

The future of the industry is rooted in vigorous research and growth. While the
consumer is known to prefer well-known and trusted brands, it is the companies that
invest in research and development and come up with creative products, that by
leading the shift through the road-to-market strategy, the roost will also prevail in
2020.
 RISE OF THE EXPERIMENTAL RETAIL
Organized shopping for several brands consists of purchases from new retail outlets,
regional brand chains, brand stores and e-commerce. The old model of in-store and
even online retailing was squarely focused on the items being sold. However, today's
customers are searching for an exciting experience. This trend has largely been
motivated by millennia and their preference for experience.

STAFF FREE, CASH LESS PAYMENT STORES

Cashier-less and staff-free shops are supposed to re-imagine the retail

environment. The supplier of weighing technology – Shekel Brain Weigh Ltd. –
 surveyed customers to recognise changes in purchasing trends due to the COVID-
19 pandemic. The survey showed that 87% of consumers are likely to select stores
with contactless or self-checkout options. Resources for digital transformation
include RFID tags, computer vision systems, machine learning, IoT cameras, and
facial recognition.

FUTURE OF LULU RETAIL

In my view, Lulu’s hypermarket has a huge shift to be the most famous retail store if it retains
its price stability and offers good product quality to its customers. Other than that LuLu
hypermarket will provide a big job opportunity for a recent graduate because they want to
open more branches in other parts of the world. It can be shown that the marketing plans,
tactics and structures built and implemented by the LuLu hypermarket are very unique. This
element, in terms of its use and implementation for the global market, with its fun and novel
variation from the normal supermarkets, provides a state-of-the-art shopping experience by
integrating all the possible needs of consumers under one roof.

SPECIFIC STARTEGIES ADOPTED FOR FUTURE GROWTH.

 Ensure ethics and social responsibility within the organization: to do the right things
by respecting and supporting those with special needs of customers. Organizing a
range of events and initiatives to encourage the same among society.
 Ingenuity and innovation: it act as the key to the large-scale success of the retail
industry by setting benchmarks in the quality of customer service, smooth operation
and easy functioning of the hypermarket.
 Sustainable creation The development of a business based on a sustainable model of
organization depends on the policies applied by the company and its effect on the
environment as well as on the well-being of society as a whole.
 REFERENCE

 LULUGROUPINTERNATIONL.COM. (2015, November 21). LuLu Group

International. Retrieved from http://www.LuLugroupinternational.com
 Mahfooz, Y. (. (2014). Relationship between Service Quality and Customer
Satisfaction in Hypermarkets of Saudi Arabia. International Journal of Marketing
Studies, 6(4) p10.
 Do Customer Preferences have Profound Impact on Market Share? Exploratory
Research on UAE Retail Market. World, 1(4), 72-8
 Business-management-and-market-strategies-in-lulu-hypermarket-Lulu Group