Report Sales Management

Project Report Inventory and Sale Analysis Of Formal and Informal Apparel Retail Market, Phralad Nagar Road, Ahmedabad

Sales Management

Prepared By: Nilesh Sen Shekhar Nirmal

Submitted to: Pallavi Mittal

Content Objective About the market STP SWOT Analysis Outlet covered Questionnaire Survey Result & Analysis

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Objective The main Objective of this report is to study and do a brief comparative analysis between the Organized and Un-Organized Apparel Retail market of Prahlad Nagar Road, Ahmedabad, and with the help of a survey understand the various aspects the retailer deal in its course of business. Following are the main objectives of this report : 1.

2.

3.

4.

To know the type of competition between both type of players.

To know the similarities of “Inventory Management” between both types.

To know the Market segment of Prahlad Nagar Road.

To know the amount of walk-in’s of the market.

About the Prahlad Nagar Market The Market of Prahlad Nagar Road has seen a major change in last five year. This road majorly connects SG Highway and Shyamal area, and after couple of good commercial projects like Venus Parkland and Safal Pegasus and also after development “Corporate Park road near Prahlad nagar Garden had played a significant role in development and commercialization of this road. Interestingly it has come up as major hub of “High Dine Restaurants”.

It has also developed as a major hang out place for the ahemdavadies with all major fastfood chain like Macdonalds, Dominos, Gwalia etc right here at one place.

It is also good market for Fashion Apparel although we got mixed response when we asked this question during the survey.

Overall it was nice experience every body gave us good response corporation, with the exception of few.

Segment Target Position

Segmentation of PN road Market What is Segmentation ?

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.

Market Segmentation Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.

A market segment is a small unit within a large market comprising of like minded individuals.

One market segment is totally distinct from the other segment.

A market segment comprises of individuals who think on the same lines and have similar interests.

The individuals from the same segment respond in a similar way to the fluctuations in the market.

Basis Segmentation of Fashion Prahlad Nagar Road Market Gender It is a important component while dividing your segment and specially for the fashion and apparel industry it is a obvious thing to do. Although we didn’t saw any clear cut separation point that we can call it a women’s wear or men’s wear market. Prahlad Nagar Road market is more of fragmented and cater to all segment such as Men’s wear, Women’s wear, and Kids wear.

The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation.

Organizations need to have different marketing strategies for men which would obviously not work in case of females.

A woman would not purchase a product meant for males and vice a versa.

The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and Apparel industries.

Age Group PN Market is mainly a youth market and has got good range for them with branded stores coming up. Interestingly we saw Division on the basis of age group of the target audience is also one of the ways of market segmentation.

The products and marketing strategies for teenagers would obviously be different than kids.

Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on.

Income Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings.

The three categories are: High income Group Mid Income Group Low Income Group Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group.

Pantaloon, Carrefour, Shopper's stop target the high income group as compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment.

Marital Status Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples.

Occupation PN market is of youngsters and youngsters who are new earners its basically a hangout place where you can find young brands, as far as unorganized sector is concern there are plenty of Men’s wear stores with product line for youngsters. Young couple with small kids can also be a target customer for family store.

Types of Market Segmentation Psychographic segmentation The basis of such segmentation is the lifestyle of the individuals. The individual's attitude, interest, value help the marketers to classify them into small groups.

Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.

Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical areas. A marketer can't have similar strategies for individuals living at different places.

Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.

McDonald's in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonald's in US freely sells and promotes beef products.

Steps in Market Segmentation 1.

Identify the target market 2.

Identify expectations of Target Audience 3.

Create Subgroups 4.

Review the needs of the target audience 5.

Name your market Segment 6.

Marketing Strategies 7.

Review the behavior 8.

Size of the Target Market There are several advantages of segmentation.

1) Focus of the Company 2) Increase in competitiveness 3) Market expansion 4) Customer retention 5) Have better communication 6) Increases profitability

Positioning The process of creating an image of a product in the minds of the consumers is called as positioning. Positioning helps to create first impression of brands in the minds of target audience. In simpler words positioning helps in creating a perception of a product or service amongst the consumers.

Prahlad Nagar market has a unique position in the minds of Ahmedabad customers it is a market where you can shop, hangout and also have hub of Find Dine restaurants so you can eat out too! It has ain popularity among general public and with some really good projects are coming up the image is going to get more positive.

Steps to product Positioning 1.

Know your target audience well 2.

Identify the product features 3.

Unique selling Propositions 4.

Know your competitors 5.

Maintain the position of the brand Targeting Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called Targeting. Once market segments are created, organization then targets them.

Targeting is the second stage and is done once the markets have been segmented.

SWOT Analysis “PN Market�

Very nice place to shop with variety of products available.

As economy range is also available there is something for everyone.

Good and nice stores which attract variety of customers.

Good shopping space A developed market of Fine dine restaurants

Weakness

Highly fragmented market.

Not entirely developed as a Fashion hub or market.

Lack of competition Lack of fashion apparel outlet No consistency in the market and road

Opportunities Good Malls and projects coming up which can lead to develop as a major shopping and dining hub of Ahmedabad

If failed to develop other roads like SG Highway can over take it glory.

Outlet Covered rga niz e

Un -O

Or ga niz e

There are some 30 Apparel showrooms in Pralad Nagar Road out of which we did survey of 23, we left all sari showrooms, some didn’t entertained us and couple were closed. As it mentioned in the abstract it is a fragmented apparel market there is no such No. of Store Percentage thing as “clusters” even when we talked to owner and salesmen they said “There is no harm in opening of any garment store by their side rather it will develop competition and thus it will be a gain situation for everybody.”Out of these 23 stores We have kept all local players under un organize sector and Brands and Designer Boutiques eg. Monsoon, etc under Organize sector.

Reason for keeping “Designer Boutiques” under Organized sectorwas that as they are catering to HNI and High end segment and are very organized and maintains a standard and have strong Brand value of their own.

Name of the Store Nike Re Ethnic United Colour Of Benetton Pantaloon Factory outlet Alpha SDL Syaram Koutons Vintage Earth Antra Liver pool Monsoon Riddhi Shiddi The C Lounge Vasant NX Jackpot Nx Zone World Fashion Sakti Creations High Touch Fashion Club R. K Fashion Ready to wear Just Brands Arizona

Sector Organise Organise Organise Organise Organise Organise Organise Organise Organise Organise Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise Un-Organise

Store Type Franchise Designer Wear Boutique Franchise Franchise Franchise Franchise Franchise Designer Wear Boutique Designer Wear Boutique Franchise Designer Wear Boutique Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single Ownership Single ownership

Questionnaire Sales Management (MBA sem III) Survey - Pralad Nagar Market Name Of the Store. Year of Commencement.

Is it the first or relocated from some where else?

Do you have any other branches?

Number of Staff members?

What is your core product line?

Average Stock at any “given point of time�?

Frequency of new stock update. days / weeks Average number of walk-in in week.

Average Billing in a week. (units) Sales margin.

What kind of promotional activities is done and monthly budget for the same.

Assistance form the parent company. eg. training of sales staff, promotional schemes, local advertising, visit of marketing staff etc.

Strength of your store.

What are your experience about this market.

What kind of competition you get from the formal /Informal segment?

Survey Results

Type of Stores

Type of Store Ownership Designer wear Boutique Franchise Single ownership

No. Of Store 4 8 11

In terms of ownership there were mainly three types of stores, “Single ownership” was maximum type of stores mainly run by local gujarati traders and they are doing quit well just they strongly felt lack of competition, they wanted more this investment in this road.

Franchise was the second type of store, the satisfaction level was mixed as far they are concern. The maximum advantage of this market is to “High End Designer Stores” they are doing good business and future also look quit promising!

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Percentage 17% 35% 48%

Average Walk in’s per day

Store Name Pantaloon Factory outlet Riddhi Shiddi Koutons Monsoon Vasant NX Alpha SDL Re Ethnic Liver pool Nike R. K Fashion Ready to wear Sakti Creations Syaram The C Lounge Fashion Club High Touch Just Brands Nx Zone United Colour Of Benetton Antra Arizona Jackpot Vintage Earth World Fashion

Average Walk In's per Day 30 30 25 25 25 20 20 15 15 15 15 15 15 12 12 12 12 12 10 10 10 10 10

Percentage 8% 8% 7% 7% 7% 5% 5% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%

Product line

Type of Store Designer wear Boutique Family Fashion Store Men's Formal wear Men's wear Sports wear Family Fashion Store Kids Ready to wear Ladies Raedy to wear Men's wear Men's wear Indian Ethnic Wear (Ready to Stitch) Total

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No. Of Outlet 4 3 1 3 1 2 2 1 4 1 1 23

Men’s wear is the most popular one as far as traders are concern. Second is Family store which are run by local business men maximum come under unorganized sector. Designer wear (women’s wear) is the third number.

There are 2 exclusive Kids wear stores comes under unorganized sector.

Strength of Store (According to themself)

Attributes Brand Designs, Quality, Product line, Store ambience Economy Brand Total

Sector: Organize Percentage

Count of Strength

36% 36%

4 4

27%

3 11

Some interesting data when we compiled the data of our survey, we did asked this question deleberetly, the target for this question was traders of unorganized sector, we wanted to know how confident are the traders in their business. Above figure is of Organized sector and results are obvious they maximum rely on Brand value and the confidently show their contemporary interior, and product quality which resemble on their price tag! We found three economy brands Koutons, Pantoloon Factory outlet, Liverpool (which is a local national player).

Strength of Store (According to themself)

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Maximum number of traders are counting on economy product with couple of exception who claim for good quality (they both are new stores), the reason we felt that they share same source channel (Wholesale market of Ahmedabad and Mumbai), there is fair amount of competition between them we even found their products near to each other, specially Jeans wear and t-shirts.

Their was only one store i.e., Vasant NX kids wear store we found not only confident but also they look professional also.

Sector: Un organize Row Labels Percentage Count of Strength Average stock 8% 1 Economy Range 42% 5 Exclusive Suppliers, and product line 8% 1 Good Quality 25% 3 Product and Salesmen ship 8% 1 Quality 8% 1 Total 12

Amount of Stock Store Name Monsoon Nike Riddhi Shiddi Syaram United Colour Of Benetton Antra Koutons Pantaloon Factory outlet Re Ethnic Vasant NX Vintage Earth Sakti Creations Fashion Club R. K Fashion Ready to wear World Fashion Alpha SDL Arizona Jackpot Liver pool High Touch Just Brands Nx Zone The C Lounge

Stock (In Rs. Lack)

Percentage

15 15 15 15 15 12 10 10 10 10 10 8 6 6 6 5 5 5 5 4 4 4 2

8% 8% 8% 8% 8% 6% 5% 5% 5% 5% 5% 4% 3% 3% 3% 3% 3% 3% 3% 2% 2% 2% 1%

Monsoon, Nike, Syaram, UCB and Riddhi-Siddhi are the top five when the amount of stock as a ranking factor. In this “Riddhi-Siddhi” the only local player in top five, it is a very good shop for mid range women’s wear “Ready to Stitch” suit pieces, the trader also look confident and this store is doing good business. On asking of diffriceation point of the store he answer was the strong and exclusive sourcing of material. From this we realize the importance of strong back end supply chain!

Average Biling(per week) Product Line Designer wear Family Fashion Store Men's Formal wear Men's wear Men's wear Women's wear Sports wear Traditional Indian Ethnic Wear

Sector Organise Average Biling(per week) 95 95 25 105 20 50 100

Grand Total

Row Labels

Percentage 19% 19% 5% 21% 4% 10% 20%

490

Sector:Un-Organise Average Biling(per week)

100%

Percentage

Casual Men's wear Family Fashion Store Kids Ready to wear Ladies Raedy to wear Men's ready to wear Men's RTW, Casual Wear Men's wear Indian Ethnic Wear (Ready to use)

25 120 110 30 100 40 30 60

4.85% 23.30% 21.36% 5.83% 19.42% 7.77% 5.83% 11.65%

Grand Total

515

100.00%

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