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PEARL ACADEMY OF FASHION PROJECT TITLE: STORE PROJECT MODULE: STORE PROJECT SUBMITTED BY, VIVEK.S (PGFR03). 1
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Transcript of Pearl Academy of Fashion
PEARL ACADEMY OF FASHION
PROJECT TITLE: STORE PROJECT
MODULE: STORE PROJECT
SUBMITTED BY,
VIVEK.S
(PGFR03).
1
ACKNOWLEDGEMENT
2
Table of Contents1. INTRODUCTON:...............................................................................................................................11
1.1 NAME AND ADDRESS OF THE BUSINESS:...................................................................................11
1.3 LEGAL FORM OF THE BUSINESS:................................................................................................12
1.4 NATURE OF THE BUSINESS:........................................................................................................12
CHAPTER 2...........................................................................................................................................12
2. INDUSTRY ANALYSIS:.......................................................................................................................12
2.1 SWOT ANALYSIS:........................................................................................................................13
2.1.1 STRENGTH:..............................................................................................................................13
2.1.2 WEEKNESS:.............................................................................................................................13
2.1.3 OPPURTUNITIES:.....................................................................................................................14
2.1.4 THREATS:................................................................................................................................14
2.2 PEST ANALYSIS:..........................................................................................................................14
2.2.1 POLTICAL FACTORS:............................................................................................................14
2.2.2 ECONOMICAL FACTORS:.........................................................................................................14
2.2.3 SOCAIL FACTORS:....................................................................................................................15
2.3.4 TECHNOLOGICAL FACTORS:....................................................................................................15
2.3 PORTER’S FIVE FORCE MODEL:..................................................................................................15
2.3.1 THE INTENSITY OF COMPETITIVE RIVALRY:.........................................................................15
2.4 BCG MATRIX:.............................................................................................................................16
2.5 PAST PERFORMANCE:................................................................................................................16
2.6 FUTURE OUTLOOK AND TRENDS:..............................................................................................17
2.7 ANALYSIS OF COMPETITORS:.....................................................................................................17
2.7.1 EBO’S FOR MEN:.................................................................................................................17
2.7.1.1PETER ENGLAND:..............................................................................................................17
2.7.1.2 PETER ENGLNAD’S STRETEGY:..........................................................................................18
2.7.1.3 DERBY:.............................................................................................................................18
2.7.1.4 STING:..............................................................................................................................18
2.7.1.5 ALL TIMES:.......................................................................................................................18
ALLTIMES STRATEGY:...................................................................................................................19
2.7.1.6 JANSONS:.........................................................................................................................19
2.8.1 MBO’S FOR MEN:................................................................................................................19
2.8.1.1 MOTHI:............................................................................................................................19
2.8.1.2PLANET FASHION:.............................................................................................................20
3
2.8.1.3 PRINCE COLLECTION:.......................................................................................................20
2.8.1.4 BEYOND COLLECTIONS:....................................................................................................21
2.8.1.5 MEGA MART (DISCOUNT RETAILER):...............................................................................21
STRATEGY OF MEGA MART:........................................................................................................21
2.9 MARKET SEGMENTS:.................................................................................................................22
2.10 INDUSTRY FORECASTS:............................................................................................................22
2.11 MARKEY SURVEYS (ATTACH REPORTS IN APPENDIX)...............................................................23
CHAPTER 3...........................................................................................................................................23
3. DESCRIPTION OF VENTURE:.............................................................................................................23
3.1 PRODUCTS:................................................................................................................................23
3.1.1 STYLE CHECK CASUAL:.........................................................................................................23
3.1.2 STYLE CHECK FORMAL:.......................................................................................................24
3.1.3 STYLE CHECK ACCESSORIES:................................................................................................24
3.2 BUSINESS VISION AND MISSION AND VALUES:..........................................................................25
3.2.1 BUSINESS VISION:...............................................................................................................25
3.2.2 BUSINESS MISSION:............................................................................................................25
3.3 GENERIC STRATEGIES – COST LEADERSHIP/DIFFERENTIATION AND FOCUS:.........................25
3.4 SIZE OF BUSINESS AND LOCATION OF THE BUSINESS PREMISES:..............................................25
3.5 LOCATION OF THE STORE:.........................................................................................................25
3.6 OFFICE EQUIPMENT / INFRASTRUCTURE:..................................................................................26
3.7 PERSONNEL (STAFF) REQUIREMENTS:.......................................................................................26
3.8 BACKGROUND OF ENTREPRENEURS – EDUCATION, EXPERIENCE AND EXPERTISE:...................27
3.9 PATENT, TRADEMARK, LICENSE OR COPYRIGHT IF ANY:............................................................27
3.10 WHAT IS THE FUNCTION OF A TRADEMARK?..........................................................................27
3.11 COMPETITIVE ADVANTAGE:.....................................................................................................27
3.12. ORGANISATIONAL PLAN:............................................................................................................28
3.12.1 ORGANISATIONAL CHART:....................................................................................................28
3.12.2 FORM OF OWNERSHIP:.........................................................................................................28
3.12.2.1ADVANTAGES OF SOLE PROPRIETORSHIP:......................................................................28
3.13 ROLES AND RESPONSIBILITIES OF MANAGEMENT TEAM:.......................................................29
3.13.1 PROPRIETOR:....................................................................................................................29
3.12.2 STORE MANAGER:.............................................................................................................29
4.3.3 STORE MANAGER REPONSIBILITIES:...................................................................................30
CHAPTER 4...........................................................................................................................................31
4
4.1 MERCHANDISING PLAN:................................................................................................................31
4.2 MERCHANDISE HIERARCHY OF STYLE CHECK STORE IN DETAIL:................................................32
4.3 MANUFACTURING OR SOURCING PLAN:...................................................................................33
4.3.1 MERCHANDISE RESOURCES:...............................................................................................33
4.3.2SOURCING POINTS:..............................................................................................................33
4.3.3 TRADE SHOWS:...................................................................................................................33
4.3.4 RESIDENT BUYING OFFICE:..................................................................................................34
4.4 ESTIMATED COSTING OF PRODUCT AND MULTIPLIER(ATTACHED IN THE EXCEL SHEET)..........34
4.5 PRODUCT MIX AND PRODUCT LINE.......................................................................................34
4.6 6 MONTHS MERCHANDISING PLAN (ATTACHED IN THE EXCEL SHEET).....................................34
4.7 OPTION PLANNING AND STOCKING PLAN / CAPACITY (ATTACHED IN THE EXCEL SHEET).........34
4.8 RETAIL PRODUCTIVITY PARAMETERS (ATTACHED IN THE EXCEL SHEET)...................................34
CHAPTER 5...........................................................................................................................................35
5.1RETAIL STORE LAUNCH:..................................................................................................................35
5.2 SITE SELECTION:.....................................................................................................................35
5.3 IDENTIFICATION OF SITE:...........................................................................................................35
5.4 STORE LAYOUT & INTERIOR:......................................................................................................36
5.4 STORE DESIGN & VISUAL MERCHANDISING:.............................................................................36
5.5 GRAPHICS IN RETAIL ENVIRONMENT:........................................................................................36
5.6 THE TOOLS FOR SUCCESS:..........................................................................................................37
5.7 LIGHTING & SIGNAGE:...............................................................................................................38
5.8 SPOTLIGHTS:..............................................................................................................................38
5.9 MOOD:.......................................................................................................................................39
5.10 ECOLOGICAL FOCUS:................................................................................................................39
5.11 ENHANCE SAFETY:...................................................................................................................39
5.12 SIGNAGE:.................................................................................................................................40
5.12.1 CLIP ON HOLDERS:............................................................................................................40
5.12.2 RETAIL BANNERS:..............................................................................................................40
5.12.3 SALES SIGNS......................................................................................................................40
5.12.4 SIDE WALK SIGNS:.............................................................................................................40
5.12.5 GRAND OPENING SIGNS AND BANNERS...........................................................................40
5.12.6 ACRYLIC SIGN HOLDERS:...................................................................................................40
5.12.7 WINDOW SIGNS AND CLINGS...........................................................................................40
CHAPTER 6...........................................................................................................................................40
5
6.1STORE DESIGN:...............................................................................................................................40
6.2 MIND MAPPING:........................................................................................................................40
6.3 INTERIORS:.................................................................................................................................41
6.4 SCREEN SHOTS OF THE FINAL 3D STORE COVERING THE ENTIRE STORE MINIMUM OF 12 SCREENSHOTS:.................................................................................................................................42
6.5 FLOOR PLAN (BIRDS EYE VIEW /ISOMETRIC VIEW OF THE STORE) WITH..................................49
FIXTURE LABELLING:........................................................................................................................49
6.6 LABELLING OF FLOOR PLAN:......................................................................................................49
6.8 ELEVATION PLAN (FIXTURE MAPPING AND LABELLING):...........................................................51
6.9 PRODUCT PLACEMENT STRATEGY (REFLECTIVE NOTE NOT EXCEEDING 100 WORDS):.............52
6.10 PLANNOGRAM (SCREEN SHOTS OF THE PLANNOGRAM OF ALL FIXTURES:.............................53
6.11 PRODUCT/DEPARTMENT LABELLING:......................................................................................55
6.12REFLECTIVE NOTE ON THE THEME NOT EXCEEDING 150 WORDS:...........................................56
6.13 GENERIC VISUAL MERCHANDISING GUIDELINE SHEET:...........................................................56
CHAPTER 7...........................................................................................................................................57
7.1 RETAIL OPERATIONS:.....................................................................................................................57
7.2 STYLE CHECK STORE:..................................................................................................................57
7.3 STORE OPENING:.......................................................................................................................58
7.4 STORE CLOSING PROCEDURE:....................................................................................................59
7.5 STAFFING:..................................................................................................................................60
7.6 SALES HEAD QUALIFICATION:....................................................................................................61
7.7 RESPONSIBILITIES:.....................................................................................................................62
7.7.1 STORE MANAGER:...............................................................................................................62
7.7.2 SALES ASSOCIATE:...............................................................................................................62
7.7.3 SECURITY PERSON:..............................................................................................................63
7.7.4 SECURITY SYSTEMS TO CONTROL SHRINKAGE:...................................................................63
7.8 CASHIERING AND CASH TILL MANAGEMENT:............................................................................64
7.9 INWARDING AND OUTWARDING:.............................................................................................65
7.9.1 INWARDING:.......................................................................................................................65
7.9.2 OUTWARDING OF STOCKS:.................................................................................................66
7.10 WARE HOUSE AND DISTRIBUTION STRATEGIES:......................................................................66
CHAPTER 8...........................................................................................................................................67
8.1 IT APPLICATIONS:...........................................................................................................................67
8.2 MIS:............................................................................................................................................67
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8.3 FTP:............................................................................................................................................68
8.4 SQL AND ITS USAGE:..................................................................................................................68
8.5 IDENTIFICATION OF PLATFORM(S) THAT IS/ARE BEST SUITED TO THE MODE OF OPERATION OF THE RESPECTIVE STORE(S):..............................................................................................................70
8.6 BUDGETING OF IT EXPENDITURE AND JUSTIFICATION FOR THE SAME:....................................70
8.7 COMPUTERS:.............................................................................................................................70
8.8 IT SOFTWARE:............................................................................................................................71
8.9 IDENTIFICATION OF BEST/OPTIMUM HARDWARE THAT WILL BE NEEDED FOR THE SMOOTH FUNCTIONING OF IT:.......................................................................................................................71
8.10 IDENTIFICATION OF BEST SOFTWARE SOLUTION:...................................................................72
8.11 DESIGNING OF SECURE ENVIRONMENT (NETWORK AND INTERNET SECURITY) TO ENSURE UNINTERRUPTED IT OPERATIONS:...................................................................................................72
8.12 FINALIZATION OF ATTRIBUTES USED FOR CODIFICATION OF INVENTORY: (REPORT ATTACHED IN THE EXCEL SHEET).......................................................................................................................73
GENERATION OF ALL NECESSARY MASTERS THAT ARE CRUCIAL TO THE BUSINES: (REPORT ATTACHED IN THE EXCEL SHEET).....................................................................................................73
8.13 DEFINITION OF STANDARD OPERATING PROCEDURE BEST SUITED TO THE RESPECTIVE TYPE OF STORES:......................................................................................................................................73
8.14 DEFINITION OF CTQ (CRITICAL TO QUALITY) IN TERMS OF MIS REPORTS NEEDED FOR ANALYSIS OF BUSINESS:...................................................................................................................73
8.15 JUSTIFICATION FOR DEFINITION OF CTQS...............................................................................73
CHAPTER 9...........................................................................................................................................74
9.1 MARKETING PLAN:.........................................................................................................................74
9.2 SEGMENTATION VARIABLES:.....................................................................................................74
9.3 TARGET MARKETS:.....................................................................................................................74
9.4 TARGET GROUP WITHIN THE PRODUCT:...................................................................................74
9.5 POSITIONING STRATEGY............................................................................................................75
9.6 4PS:............................................................................................................................................75
9.6.1 PRODUCT:...........................................................................................................................75
9.6.2 PRICING PLAN:....................................................................................................................76
9.6.3 AVERAGE MRP OF EACH DEPARTMENT:.............................................................................76
9.6.4 PLACE:.................................................................................................................................77
9.6.5 PROMOTION:......................................................................................................................77
9.6 DISTRIBUTION:.......................................................................................................................78
9.7 CHANNEL DISTRIBUTION:..........................................................................................................78
9.8 IMC:...........................................................................................................................................78
7
9.8.1 PROMOTIONS:....................................................................................................................78
9.8.2 ADVERTISING:.....................................................................................................................78
9.8.3 PERSONAL SELLING:............................................................................................................79
9.8.4 WEBSPACE:.........................................................................................................................79
9.8.5 CUSTOMER:........................................................................................................................79
9.8.6 MARKETING BUDGETS:.......................................................................................................79
9.8.7 GROWTH STRATEGIES:........................................................................................................80
CHAPTER 10.........................................................................................................................................80
10.1 WHY BRAND?...............................................................................................................................80
10.2 BRAND NAME, LOGO, TAGLINE – SELECTION AND DECISION PROCESS:..................................80
10.3 BRAND NAME SURVEY:............................................................................................................80
10.4 DESIGNING LOGO FOR MY BRAND:.........................................................................................82
10.5 LOGO FOR THE STYLE CHECK BRAND:......................................................................................82
10.6 TYPE OF BRAND:......................................................................................................................82
10.7 BRANDING STRATEGY:.............................................................................................................82
10.8 BRAND IDENTITY AND IMAGERY:.............................................................................................83
10.9 BRAND IMAGE:........................................................................................................................83
10.10BRANDING CONCEPTS:...........................................................................................................83
10.10.1BRAND VISION:................................................................................................................83
10.10.2 BRAND EQUITY:...............................................................................................................83
10.10.3 BRAND PERSONALITY:.....................................................................................................83
10.10.4 BRAND PERSONIFICATION:.............................................................................................84
10.10.5 BRAND ESSENCE:............................................................................................................84
10.10.6 BRAND SOUL:..................................................................................................................84
10.10.7 BRAND CHARACTER:.......................................................................................................84
10.10.8 BRAND PROMISE:............................................................................................................85
10.10.9 EXPERIENCE:...................................................................................................................85
10.10.10 STORY:..........................................................................................................................85
10.11 MOTIVATORS & DISCRIMINATORS:.......................................................................................85
10.12 MOP:......................................................................................................................................85
MATRIX OF PARAMETERS................................................................................................................85
10.13 PERPETUAL MAPPING:...........................................................................................................87
10.14 EXTENTIONS – LINE & BRAND PLAN:.....................................................................................87
CHAPTER 11.........................................................................................................................................88
8
11.1 FINANCIAL PLAN:.........................................................................................................................88
11.2 FIXED CAPITAL AND WORKING CAPITAL REQUIREMENTS:......................................................89
11.3 PROJECTED INCOME AND EXPENSES STATEMENT (P&L) –......................................................89
11.4 PROJECTED BALANCE SHEET – 5 YEARS...................................................................................90
11.5 RATIOS:....................................................................................................................................90
11.6 ROI:..........................................................................................................................................91
11.7 ROE:.....................................................................................................................................91
11.8 STRATEGIC PROFIT MODEL:.....................................................................................................91
CHAPTER 12.........................................................................................................................................91
12.1 MARKET RESEARCH:....................................................................................................................91
TABLE 3........................................................................................................................................93
TABLE 4........................................................................................................................................93
CHAPTER 13.........................................................................................................................................94
13. CONCLUSION:................................................................................................................................94
CHAPTER 14:........................................................................................................................................95
14. BIBLIOGRAPHY:..............................................................................................................................95
APPENDIX....................................................................................................................................97
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EXECUTIVE SUMMARYThe primary value of this business plan is to create a written outline that evaluates all
aspects of the economic viability of the business venture including a description and analysis
of the business prospects. This project is done with the fulfilment of applying all values of
the fashion retail that includes Marketing, Branding, and Finance, Merchandising, visual
merchandising, IT applications and operations. The project is done with the store name as
Style Check” with the tagline says “Endless Style”. This project will show the financial
stability of the organisation structure and how it’s going to withstand in the market over a
period of time. The proprietor had identified his target market i.e. Erode and target
audience will be Men as the Store says giving Endless style for Men. This project will disclose
the industry analysis to identify the market place and the potential customers. The plan had
show the core value of the business vision and mission and how the organization will
achieve this goal through its mission to achieve its vision. The next phrase of this project
show about the important model of this plan i.e. retail merchandising where the elements
such as sourcing, product mix, product line and the planning process includes option
planning, six months merchandise planning and its productivity parameters that are needed
for handling the store’s inventory. Next comes the store operation where the organisation
will be working standardised SOP for successful operation of the Style Check store. The next
phrase of this plan includes the design elements such as store design and visual
merchandising in that mind mapping had been done to show the actual store versus virtual
store. The Store had been designed in new retail software; it gives image of the actual store.
The next phase of the project shows the Financial part, where it gives the amount of value
to start up a retail store and the projection is done for five years to show the how sound the
business is going to be in the five years. Next model that is shown in the project includes IT
application, where the Store Style Check will be operating with a retail software to perform
efficiently with the good MIS system that are needed for running this retail operations. Here
comes the final phase of this project i.e. Branding it includes Logo, essence, perception,
perpetual mapping and matrix of parameters of the competitors that shows where the
brand stands in the market. At last this executive summary is concluded by giving the
statement that definitely it will be one of the effective business plans in Erode.
10
1. INTRODUCTON:Planning is a process leading to the formulation of a plan, the main objectives of the
project is to make a complete business plan for a retail store and to successfully operate
the store with the profit model in the respective Erode city.
1.1 NAME AND ADDRESS OF THE BUSINESS:The address of store is as follows:
Style Check ltd.
No.20, Brough Road,
Erode – 638004. Opportunity
LOCATION OF THE STORE
1.3 LEGAL FORM OF THE BUSINESS:The form of business that the store “style check is going to start “Sole
proprietorship”. The sole proprietorship is one of the legal forms of business where the
profit is shared by one person only. The owner may operate on his own or may employ
others. The owner of the business has unlimited liability for the debts incurred by the
business.
1.4 NATURE OF THE BUSINESS:The nature of business is a “Retail business” which means buying the
merchandises from the suppliers and selling to the ultimate customers at the maximum
retail price.
11
CHAPTER 2
2. INDUSTRY ANALYSIS:
Retail industry plays a major role in the revenue of Erode city. This is evident
from existing super markets like Kannan Departmental Stores, Sangeetha Shopping Malls,
The Chennai silks, Peter England, Sting, Spencer's Daily, More, Sakthi Super Market and on-
going malls construction like Relance Trendz etc.,
In line with the ancient architecture of the city, the business set up in the city is
confined to a particular industry in a street and can find series of shops selling the similar
products. RKV Road is crowded with branded Textile and Jewellery showrooms. Easwaran
Kovil Street is fully stuffed with thousands of whole-sale textile merchants shops, Gandhiji
Road with Textile Retail shops and textile markets, Hundreds of Jewellery shops in Pon
Street, Goods Transports and Fruit Godowns in Nethaji Road, Electronic goods in Brough
Road, is filled with lot of exclusive fashion retailers like adidas, raymonds, sting, jansons,
bala silks etc., and In Mettur Road, hardware’s in Sathy Road, Non-veg food stuffs in
Surampatti 4 Roads, all exclusive showrooms in Perundurai Road. Printing and Hotels in Akil-
medu Street, Books and Note Books in PS Park. There are separate streets with retail shops
for decorative articles, Bangles, Gift Articles, Gold and Ornaments, Chemicals and Pharmacy
etc. so retail happening in every part of the city in Erode. The following are the SWOT
analysis of the current Erode retail market.
2.1 SWOT ANALYSIS:
2.1.1 STRENGTH: The greatest advantage of “style check” store is location. Brough road it’s a shopping
street where are more retail activities took place.
Wide variety under a single roof.
The quality of merchandise is much equivalent to the branded merchandise at a
affordable price to the Erode market.
Customers will get “Value for Money” because style check stands for its quality and
endless style in its products.
It’s an one shop destination store exclusively meant for Men
12
The benefits of more organized retailers entering into the market like Adidas,
Reebok, more, Spencer’s daily etc., so it ads advantage to the store ‘Style Check”
2.1.2 WEEKNESS: The retail industry is not growing rapidly in the city; there are only few streets where
retail industry is working well in the city. So this adds disadvantage to my growth.
Diversifying crowds, people will move towards neighbouring cities like Coimbatore,
Salem for shopping.
Parking space is less, cant park more than three cars in front of the store, because
the road is very small.
Retailers like Bigbazzar, reliance trendz are thinking to enter into the market
2.1.3 OPPURTUNITIES: People are started accepting fashion and trends, because the young crowds are
shifting towards the modern culture.
More retail shops have been opened in the last two years, so the scope of expansion
in the retail industry is more.
Government is taking steps to reduce traffic by constructing over bridges in the
crowded streets.
Government is developing the town by laying more parks and gardens to make the
city beautiful and eco-friendly.
Retail is started slowly in the outer part of the city also.
2.1.4 THREATS: In close proximately to the large no. of direct and indirect competitors.
People are more conservative.
Less spending power.
More retailers are entering into the market.
Heavy traffic in the city, roads are not so big to handle more traffic.
Government policies are not implementing.
2.2 PEST ANALYSIS:
2.2.1 POLTICAL FACTORS: Regulation on SOP for retail industry.
13
Employee Minimum salary level increasing.
Price restriction in the market.
Increased cost of goods.
2.2.2 ECONOMICAL FACTORS: Economy is growing towards sustainable growth in the today’s scenario.
Inflation rate is increasing due to price hike the inflation rate in India was last
reported at 9.82 percent in September of 2010.
Increase in the interest rates in bank and other financial institution may hit the Style
check store.
The acceptance level of new trend and style will be low in Erode.
Most of the retailers like Mega mart, All times etc., are working towards cost
effectiveness.
2.2.3 SOCAIL FACTORS: Following Eco-friendly environment to get attach to the market.
Style check store will be a society oriented store in Erode, for that special promotion
will be conducted on “Independence Day” by helping physically disabled people.
Working towards the People life style choice in Erode.
2.3.4 TECHNOLOGICAL FACTORS: People getting exposed to new technology.
New technology will be implemented as per the market requirements in Erode.
Safety measures will be taken before implementing those technologies.
Frequent research will be done by R&D about the market.
2.3 PORTER’S FIVE FORCE MODEL:The following are the intensity of competitive rivalry in the Porters model, in which
the current fashion retail market is working in Erode.
2.3.1 THE INTENSITY OF COMPETITIVE RIVALRY:
Because of heavy competition, the store has to be more innovative to adopt the
situation.
Because of competition, the store has to increase its revenue through “value added”
services like giving Seasonal offers, Events, and promotions.
14
Consumers are benefited through more no. of options in the market.
Good rivals = More Profit.
The style Check store will work towards low price strategy.
There is not much product differentiation or innovativeness happening in this place,
so store will explore the field of innovation giving unique style and design.
In this situation the industry growth rate is low; store will slowly understand the
market and work towards better profit margin.
2.4 BCG MATRIX:
2.5 PAST PERFORMANCE:
Retail industry plays a major role in the revenue of the city. Retailers like Sri Kannan
department store are started here now been expanded in Tirupur, Salem, Coimbatore, Karur
etc., Bharani silks are have been expanding their market in various cities in the Tamilnadu.
There are cinema halls or multiplexes for all classes of people. Apart from Tamil movies,
some of Hindi and English movies also released in the city. Muthuram Complex, Brough
Complex and Corporation Shopping mall near Clock Tower form the major landmarks for the
retail business outlets in the city. Most of people from the tamil nadu came together for
marriage shopping to buy silk sarees. There are other shopping places like Mega Mart,
Raymonds, Chennai Silks, Kalyan Jewellers, Sangeetha Shopping Malls, TATA Gold-plus,
15
Mens foramals
STAR
Accessories?
Mens casualCASH COW
Nil
Peter England, Alukkas, Derby, Titan Raaga, Malabar Gold, Textile bazaars ,Sri Durga
Textiles, Sri Ganapthi Textile, Sri Karthikeya textiles etc.
Apart from FMCG retail, Erode is also famous for hardware, motor and pumps retail.
Lot of people from neighboring village and Karnataka will come to sell turmuric and they
shop cheap hardwares in Erode. This place is created good revenue to the retail sector. This
is the right time to the store ‘Style Check’ definitely it will make an impact on other retailers
in the market with the endless style and quality into it.
2.6 FUTURE OUTLOOK AND TRENDS:The following are the future outlook and trends of the Erode city:
In early days people in Erode are very keen in shopping from one store, they will
addict to that shop, but nowadays the things are changing up, people are started
seeing what the other retailers are doing in the market.
Nowadays the trends are changing; people are accepting new trends, especially the
young vibrant crowd wants to style and youthful.
They will accept fun shopping.
The spending power of the people will be more in the future.
People will move towards one stop destination store, here comes the store ‘style
check’ will be a one stop destination for Men in the Erode.
Now only three to four streets are named for retail, in future it will change towards
ten to twenty streets for shopping in this place.
Erode is waiting for one big turn if that comes, definitely all retailers in the country
will turn around.
The Store ‘Style check’ will definitely work hard to bring that change to the place. It
will become a ‘Bench mark” to the fashion retail industry in Erode.
2.7 ANALYSIS OF COMPETITORS:The competitors are classified into three types:
1. EBO’S for Men.2. MBO’S for Men.
2.7.1 EBO’S FOR MEN:The competitors for the ‘style check’ store in Ebo’s are as follows:
16
2.7.1.1PETER ENGLAND: Exclusively meant for Men.
Opened Erode in 2009.
Located in the market place near to the “Chennai silks”.
Ranges starts from Rs.500 and ends up in Rs. 900.
It’s targeted to matured youth and professions.
The store has is located in the centre of two roads, so that it has two way to enter.
Fewer parking spaces.
2.7.1.2 PETER ENGLNAD’S STRETEGY:Peter England strategy is to give extensive range of office and casual wear to Men.
2.7.1.3 DERBY: Exclusively meant for Men.
Opened Erode in 2008.
Located in the market place opposite to the “Chennai silks”.
Ranges starts from Rs.850 and ends up in Rs. 1500.
It’s targeted only to the young people.
It has good parking space when compared to other stores.
DERBY’S STRATEGY:
The brand Derby’s strategy is to offer a choice and class in the semi-format segment
at an affordable price.
2.7.1.4 STING: Exclusively meant for Men.
This store is located opposite to the store “style check”
It’s very small store with 1000.sq.feet...
The products range from denims, trousers, shirts, t-shirts, cargoes, club-wear.
Fewer parking spaces.
Range starts from Shirts: Rs. 595-895; trousers: Rs. 795-1095
Not going to be big threat to the ‘Style Check’ store.
STING’S STRATEGY:
The strategy of the sting is to sell trendy and comfortable clothes for its consumers.
17
2.7.1.5 ALL TIMES: Exclusively meant for Men.
One of the biggest threat to ‘style check’ brand, because price is more or less equal.
The brand is an origin from Karur. People came to shop only for price. Its there in
industry for the past ten years.
The merchandise includes casuals and semi formals in shirts and trouses.
Price range starts from Rs.250 and ends up in Rs.650
Lack of quality,
Lack of design,
Lack of style.
The greatest advantage is near to this All times shop there is one famous hotel called
Sivaranjini is located so people come to this shop and finish their shopping and will
go to dinner.
ALLTIMES STRATEGY:The strategy of the brand All times is to give merchandise at a lower price. Brand is
following Cost- Leadership in the market.
2.7.1.6 JANSONS: This brand is going to very nearest to the style check store; this brand is same like
brand All times will be threat to the ‘Style Check’ store.
This brand will be little expensive than the Style Check brand.
This brand has two floors the ground floor is operating for Casual wear and first floor
is operating for Formal wear.
The price range starts from Rs.600 and ends up in Rs.1200
This brand has been started two years back, generates good revenue in that street.
Fewer parking spaces.
These are the EBO’s who are the closest and nearest competitors for the store ‘style
check’.
JANSONS STRATEGY:
The brand Jansons have been entered into the market in the recent years only, it has
been adopted well to the Erode market, by giving good styles at an reasonable price.
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2.8.1 MBO’S FOR MEN:The following are the competitors in the multi- branded outlet for the “Style Check”
brand as follows:
2.8.1.1 MOTHI: This retailer is operating in the industry for more than fifteen years in the market. The products are exclusively meant for Men. Its tag line tells that “For Men” Mothi. Its sells brands like Raymond’s, Vimal, Tibre, Trigger, Basics, etc., The merchandise includes Men’s casual, formal, accessories and cosmetics. The price range stars from Rs.500 and ends up in Rs. 5000. Fewer parking spaces. The competitor is located 1.0 km away from the Brough road where store ‘Style
Check will be.
MOTHI’S STRATEGY:
The brand is existed in the market for long time, its giving wide range of merchandises to the Men.
2.8.1.2PLANET FASHION: Retail initiative of Madura Garments.
It presently has 180 franchise stores in India.
It is opened in the Erode on October 15th.
It’s one of the franchise stores.
The brands like Peter England, Louis Philippe, and Allan solly, and Van Hussein are
there in the store.
The brands are targeted towards high class people in Erode.
The range starts from Rs.600 to Rs. 6000.
This store will compete the Style check store in style and ambience.
The visibility of the store is not good.
It is located in the same street where the store Style check is going to open.
PLANET FASHION STRATEGY:
The strategy of the Planet fashion is to target Upper class people in the Erode city.
The store stands niche for itself.
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2.8.1.3 PRINCE COLLECTION: It is one of the expensive multi-branded outlets in the Erode.
It is very similar to the Planet fashion store; it sells all four brands which the planet
fashion has.
Apart from the Peter England, Louis Philippe, Allan solly, and Van Hussein it also sells
brand like Basics Life, Pepe jeans, cool cotton, cross colour etc.
It is a full priced store.
The store is operating for a quiet long years in the Erode.
The range starts from Rs.750 to Rs.2500.
PRINCE COLLECTIONS STRATEGY:
The strategy of prince collection is to sell high priced merchandise at the MRP. The
store is giving wide range of collections on the High priced merchandise in the market.
2.8.1.4 BEYOND COLLECTIONS: It is a multi-branded outlet located in the brough road street.
It is targeted towards school and college boys.
The store has Men’s casual, accessories and foot wear.
The brand such as cross streak, intergriti, Pepe jeans, Levis, Lee etc. are sold here.
The ranges starts from Rs.200 to Rs.900
The store has good collections and style.
Customer service is very good in the store.
BEYOND STRATEGY:
The strategy of beyond collections is to target the young crowds; their merchandises
have different designs and collections.
2.8.1.5 MEGA MART (DISCOUNT RETAILER): Discount retailer located in many part of the country.
Mega mart is started in Erode on 2008.
The store will have discount throughout the year.
The stores have received decent walk-ins.
It is targeted towards middle class people.
It sells “B” merchandise, sold lesser than the MRP.
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The brand such as Wrangler, Lee, Levis, Pepe Jeans, Flying machine, etc. is sold here.
STRATEGY OF MEGA MART:The strategy of the mega mart is to sell the merchandise lesser than the MRP. Example: buy
one and get one. It’s following Cost leadership strategy in the Erode market.
2.9 MARKET SEGMENTS:
The population of the Erode As of 2001, the Indian census. Indicates that Erode city
had a population of 151,184, in an area covering just 8.4sq.km.
After integration of other municipalities, the integrated city population have crossed 5 lakh,
covering an area of 74 sq.km. But the corporation limit is 129sq.km.
Males constitute 51% of the population and females 49%. Erode has an average literacy rate
of 78%, higher than the national average of 59.5%: male literacy is 83%, and female literacy
is 72%. In Erode, 9% of the population is under 6 years of age.
Among the population in Erode Males Constitute 51% from that the “Style Check”
store will segment the male crowd by age, among the 51% male 26% has been identified as
the store’s target crowd. The crowd that is identified as a target crowd is on the age gap
between 18 – 45.
2.10 INDUSTRY FORECASTS:As already mentioned in the above passages retail industry plays a major role in the revenue
of the city, the following are the some forecast about the fashion retail industry in Erode:
Many organised fashion retailers will enter into this market.
Mainly the young crowds who are keen in looking for fashion and style is the main aspiration
for the fashion retailers to enter into the market.
Especially in future male crowd will have good walk-ins in the store, this ads advantage to
the “style check” store.
Retail space will definitely grow in the city in coming years; the market is focusing towards
the development of much vacant land in the city and covert them into retail space, that will
generate not only sales but also add value to the place and the retail industry.
In 5 years Erode will have at least one big shopping mall and One Destination.
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Lack of Organised retailers Lack of retail Splace
CURRENT MARKET
More organised chain. Industry will expand
In 5 years Shopping Malls One of the biggest shop place in India.
In 10 years
This industry will give more job opportunity to the youngsters who are coming up with the
innovative ideas for the market.
The Government is stepping up towards bringing Fashion retailers into the market. these are
the industry forecast of the place Erode.
2.11 MARKEY SURVEYS (ATTACH REPORTS IN APPENDIX)
CHAPTER 3
3. DESCRIPTION OF VENTURE:
3.1 PRODUCTS:The “Style Check” is a store which is going to be exclusively meant for Men in the
Erode. The Style check idea is to give the store a complete “One stop” destination for Men
in Erode. As a first store will concentrate more on revenue based merchandise, while in
coming years it will extend the product line. The following are the “Style Check” Products.
The Style Check will have Style Check casual, Style Check formal and Style check Accessories.
22
STYLE CHECKMEN
CASUALS FORMALS ACCESSORIES
3.1.1 STYLE CHECK CASUAL:The “Style Check” is born in Erode and it knows the energy and passion of the
people. The merchandise is about today and what’s in now. The merchandise includes
Casual shirts, Trousers, Denim and Casual T- shirt. The following are the description about
the product line of casual wear:
Casual Shirt is design to show the energy level people with contrasting colours as this
Erode people likes to wear.
Casual shirts will have latest checks, Stripes, Printed, Embroidery styles.
Casual shirts include both the Regular and slim fit.
Casual T- shirt includes Muscular fit which is king of slim fit that will closely attach to
the body.
Casual T- includes both the Polo neck and Collar.
Casual T- shirt will represents the Turmeric City of Erode in which have attractive
colours like Yellow, Red, and Orange etc.
Casual T- prints will be a matter that hits Erode. Example: “Born in Yellow”.
Casual trousers will be ‘Wrinkle Free’ cotton made to make the youth Comfortable.
Casual trousers will have all light and dark based colour with regular fit and slim fit, it
will also have with pleated and non pleated.
3.1.2 STYLE CHECK FORMAL:Designed for the unpretentious male in Erode. The range offers classic formal wear
with an Indian touch that includes formal shirts & trousers.
The shirt will have touch of Indian feel in it, with pure cotton shirts.
The Design will represent the Khadi white based as most of the Erode Men likes to
wear White shirt only.
The other than the white design will have more stripes, less checks and some party
wears.
It includes regular fit and slim fit.
Formal trousers will be more of plain colours and few stripes.
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controlling overr heads
Value added
services
Minimising the cost
Style Check is all about power dressing with straight lines and sharp cuts, apt to
create arresting first impressions of Men who enters into the store.
3.1.3 STYLE CHECK ACCESSORIES: Accessories is a part of Style Check store, the important part of Style Check is to
make Men complete casual and complete formal, so the Style Check is decides to add
accessories a part in the store, as of first there will be some few lines in the accessories year
on year it will keep changing. The accessories product line will have Casual Caps and Belts,
Formal belts, tattoos, key chains.
3.2 BUSINESS VISION AND MISSION AND VALUES:
3.2.1 BUSINESS VISION:The “Style Check” vision is to build the brand as one of the top most Men’s fashion
retailer in India.
3.2.2 BUSINESS MISSION:The “Style Check” mission is to make a “Profitable growth through superior customer
service, innovation, quality and commitment”
3.3 GENERIC STRATEGIES – COST LEADERSHIP/DIFFERENTIATION AND FOCUS:The strategy of the store ‘Style Check’ is to give the merchandise at the reasonable price by
offering good styles, designs to the customers. The Style Check chooses cost leadership strategy to
offer standardised products at the lowest competitive price. The Style check will be successful by
following the cost leadership strategy in the following aspects:
3.4 SIZE OF BUSINESS AND LOCATION OF THE BUSINESS PREMISES:
The size of the store will be a Carpet area of 2000sq.feet and 250sq.feet in front as
parking area, the total store’s sq.feet will be 2250sq.feet.
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COST LEADERSHIP
PROPRIETOR
SALES ASSOCIATE SALES ASSOCIATE SALES ASSOCIATE SECURITY
STORE MANAGER
3.5 LOCATION OF THE STORE:The Style Check will be located at the heart of the city, in Chennai as Nungambakkam
in Erode its Brough road. Following are few advantage of this location:
The place is surrounded with the retail and wholesale. It’s highly market area where
retailers are in the road facing and wholesalers in the backside.
There are also Banks like HDFC, ICICI and Bank of Baroda are present that makes the
store more advantage because of floating population in the street during day hour
also.
The location is just 2.0km to bus stand and railway station.
The location has around 35 retailers between 2.0 kilometres.
Spending power of the people in that street is high when compared to other retail
space because it’s all exclusive showrooms and branded merchandise.
3.6 OFFICE EQUIPMENT / INFRASTRUCTURE:The store style check will be equipped with expensive infrastructures. The interior part will
be explained in depth in VM. The following are the few types of equipment that the store Style Check will have:
32 Track Lights. 30 sodium vamp our lights. 6 split A/C (two tones). 7 mannequins. One cash table and chair. 4 mirrors. 2 sofas. 2 computers. 5 wall panels. 4 browsers. 4 nesting table. 2 RFID. These are the main equipments in which the store ‘Style Check” will have. These
equipments will be expensive because it has to be ther for long time and quality is the main aspect involved in those equipments that store will have.
3.7 PERSONNEL (STAFF) REQUIREMENTS:
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The store style Check will have one store manager and three sales associates and one Security who
are will be under employee of the store and other than that housekeeping will be under the
contract. Total staff required will be five.
3.8 BACKGROUND OF ENTREPRENEURS – EDUCATION, EXPERIENCE AND EXPERTISE:
The Store Style Check will be a sole proprietorship concern where it will have only one entrepreneur. The most prestigious part is that Proprietor’s father is a successful entrepreneur in the textile industry for the past 20 years; with his support and well wishes the proprietor is going to open the fashion retail store in Erode.
EDUCATION QUALIFICATION:
The proprietor, who did Bachelor of Science in Costume design and Fashion and did Masters in Fashion retailing,.
3.9 PATENT, TRADEMARK, LICENSE OR COPYRIGHT IF ANY:The “style check” will be registered under the Trademark act of India 1999 in which it will be
helpful for the store’s registration, protection and avoid the fraudulent.
WHY TRADE MARK IS USED:
A trademark is a mark used in relation to goods or services so as to indicate a connection in
the course of trade between the goods or services and some person having the right as
proprietor to use the mark.
3.10 WHAT IS THE FUNCTION OF A TRADEMARK?
Under modern business condition a trade mark performs four functions:
It identifies the goods / or services and its origin.
It guarantees its unchanged quality
It advertises the goods/services
It creates an image for the goods/ services.
3.11 COMPETITIVE ADVANTAGE:The following are the aspects of competitive advantage of the Store ‘Style Check’:
26
PROPRIETOR
ADMINISTRATIVE DEPARTMENT
STORE MANAGER
SALES HEAD SALES ASSOCIATES
SALES ASSOCIATESMAINTANANCE DEPARTMENT
STORE MANAGERSECURITY OFFICER
HOUSING KEEPING
FINANCE DEPARTMENT
MARKETING DEPARTMENT
Price is the important aspect of the store, because it’s a private label brand.
Introducing more styles and collections.
Made to be trendy and fashionable.
Targeted mainly on Youthful Men.
Wide range of product line to Men.
Store’s overall strategy will be cost leadership in which it is broadly targeted to
differentiation.
3.12. ORGANISATIONAL PLAN:
3.12.1 ORGANISATIONAL CHART:
3.12.2 FORM OF OWNERSHIP:The business is going to be “Sole proprietorship” concern in which all the business profit and
loss is shared by a single proprietor. The following are the advantages and disadvantages of Sole proprietorship.
3.12.2.1ADVANTAGES OF SOLE PROPRIETORSHIP:
The sole proprietorship is easily established, there being no legal formalities.
Owner takes all profits.
There are no overhead expenses required in the establishment.
27
It allows for quick and free decision-making.
The owner may gain experience of all aspects of the business world.
Ownership easily transferred.
Close ties can develop between the owner and his customers and employees, and this
generally leads to faithfulness.
A large number of sole traders in one area lead to good competition, which will benefit
both owners and consumers.
This business can adapt comparatively easily to changing conditions. These are the
advantages form this business as “Sole proprietorship”.
3.13 ROLES AND RESPONSIBILITIES OF MANAGEMENT TEAM:
The roles and responsibilities of the management team is classified into two types:
PROPRIETOR STORE MANAGER
3.13.1 PROPRIETOR:The proprietor himself has to take all the responsibilities in the small scale business.
In Style check store all departments will be under his control. Proprietor is an only person in
which he has look after the Management, marketing, Financial and administrative
department in the sole proprietorship concern. The responsibilities and duties of small
business is that proprietor himself have to involve in planning, managing money, and buying
materials. The proprietor primary functions involve planning, money management, and
marketing. To keep their companies in business, proprietor should take financial risks. Need
to be aware of the size of the market for the product or service they provide, and must
adapt to changing market conditions by creating new products, improving services, or
promoting their company in a new and innovative way. In this business the proprietor have
to cut down the cost and try to improve the profit in all circumstances.
NOTES: Here the “Proprietor” is the entrepreneur
3.12.2 STORE MANAGER: The store “Style check” has one manager who is the person ultimately responsible
for the day-to-day operations of the store. All employees working in the store should report
to the store manager. As a proprietor I won’t be there in the store at all the time, store
28
manager has to manage the store efficiently and effectively. The following are the some
responsibilities of store manager in my store:
Store business operations, including managing profit and loss, facility management,
safety and security, loss prevention (also called shrink), and banking
Product management, including ordering, receiving, handling damaged products,
and returns.
Store manager will be under the direct control of the proprietor.
Store manager has to look after one sales head, three sales associates and two
security officers.
Store manager will be informing his team performance and day to day activities to
the proprietor.
Team Development, facilitating staff learning and development
Problem solving, handling unusual circumstances.
He have to report me daily about the sales figure, fast moving and slow moving
product about the staffs working performance.
Store manager in my store must be responsible for store opening and closing the
details will be revealed in the store operating procedures these are roles and
responsibilities of the store manager in my store.
4.3.3 STORE MANAGER REPONSIBILITIES:
KEY ACCOUNTABILITIES PERFORMANCE INDICATORS
1. Personally resolve critical store
operational problems in order to ensure
operational effectiveness and to minimise
impact on customer service levels
Speed of response to critical issues
Effective problem solving / resolution
2. Investigate and resolve customer
complaints to customers’ satisfaction
regarding products and/or service
Effective complaint resolution
Customer feedback
3. Liaise regularly with senior store Regular liaison
29
operations management and other Shop
Managers in order to understand ongoing
brand activities and developments and
share best practice and ideas
Effective information exchange
4. Prepare management information
reports on store performance in order to
ensure that Senior Business Managers
have the relevant information needed to
support operational decision-making.
Timely and accurate production of
reports
5. Research and monitor local fashion retail
activities and trends in order to ensure
informed decision making on product
offerings; store promotions; etc.
Up to date knowledge and
understanding of market structure,
trends and activities
CHAPTER 4
4.1 MERCHANDISING PLAN:
MERCHNDISE HIRERACHY OF THE STORE
30
STYLE CHECKMEN
CASUALS FORMALS ACCESSORIES
4.2 MERCHANDISE HIERARCHY OF STYLE CHECK STORE IN DETAIL:
These are the merchandise hierarchy at the department and sub department level of
a style check store, with this hierarchy I am going to do the various merchandise functions
like option planning, manufacturing or sourcing plan, estimated costing of product and
multiplier product mix and product line, 6 months merchandising plan option planning and
stocking plan / capacity retail productivity parameters. The store hierarchy is the main
source for doing the merchandise functions of the store.
31
Department Sub department Product Style OptionsMen’s Casual Tops Shirt Slim Fit Half sleeve Tops Shirt Slim Fit Full sleeve Tops Shirt Sport Fit Half Sleeve Tops Shirt Sport Fit Full sleeve Tops T-Shirt Regular Fit Half Sleeve Tops T-Shirt Slim Fit Collar Tops T-Shirt Slim Fit Polo Men’s Casual Bottom Trousers Regular Fit Bottom Trousers Slim fit Bottom Denims Low waist Bottom Denims Boot Cut Men’s Formal Tops Shirt Regular Full Sleeve Tops Shirt Regular Half sleeve Bottom Trouser Regular Flat front Men’s Accessories Belt Formal Belt Casual
Tie Solid Tie Stripes
Cap Key Chain Tattoos
4.3 MANUFACTURING OR SOURCING PLAN:
4.3.1 MERCHANDISE RESOURCES:As marketing – channel intermediaries, retailers play a critical role in linking
producers and consumers. Understand the role of retailers as channel intermediaries
requires the knowledge of interactions that occur between the retailers and their
customers, as well as knowledge of the interactions occur between retailers and their
suppliers. The Store Style check will be keen in selecting a good vendor and will maintain a
good vendor relationship.
4.3.2SOURCING POINTS:
4.3.3 TRADE SHOWS:A trade show is a group of temporary exhibits in a convention center,
merchandise mart, or hotel, at which vendors of a single category of merchandise, or group
of related categories, present goods to retail buyers.
Trade – shows exhibitors are often grouped together by product category or price
level.
Some trade shows cater to niche markets.
Some trade shows have an international flavour.
The duration of a trade show ranges from a few days to a week.
A trade show and its related events are often referred to as market or market week.
Apparel markets are held as often as five times a year to coincide with the seasonal
release of lines. The annual schedules for most apparel market include:
Fall I or Transition – April
Fall II – June
Resort/Holiday – August.
Spring – October/November
Summer – January.
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4.3.4 RESIDENT BUYING OFFICE:A resident buying office is a marketing and research consulting firm that
services as an advisor to a group of a member, or client, stores.
Located in the major market centres, buying offices provide market information,
merchandising guidance, and other services to the membership.
The original buying offices were buying services for the owners of apparel stores too
distant to make frequent to New York the major fashion market.
The primary role of the present day buying office is that of adviser, product
developer, and importer for member stores.
Buying offices forecast future market conditions by studying consumer behaviour,
demographics and emerging trends.
These are the areas where the merchandise will be sourced for the retail store.
In initial Style Check will be sourcing from those vendors, by developing good relationship
with vendor in future sourcing can be done directly from the manufacture so that it will be
easy to negotiate and sell the merchandise at a reasonable price.
4.4 ESTIMATED COSTING OF PRODUCT AND MULTIPLIER (ATTACHED IN THE EXCEL SHEET)
COSTING MEN'S CASUAL
MEN'S FORMALS ACCSEEORIES
Avg. MRP 537 549 88Markup% 0.3 0.3 0.3Reciprocal 0.7 0.7 0.7Avg.cost per piece 375.9 384.3 61.6Shopping bag & packing 5 5 5Cost Price 380.9 389.3 66.6
4.5 PRODUCT MIX AND PRODUCT LINE.
PRODUCT MIX PRODUCT LINEMEN’S CASUAL SHITS
T-SHIRTDENIMS
MEN’S FORMALS TROUSERSSHIRTSTROUSERS
MEN’S ACCESSORIES BELTS, CAPS, TIES, and TATOOS
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4.6 6 MONTHS MERCHANDISING PLAN
SIX MONTHS MECHANDISEPLAN
July Aug Sep oct Nov Dec TOTAL
Sales Plan 275803 311390 275803 258009 338081 320287.5 1779375
Plan % of season
15.5 17.5 15.5 14.5 19 18
EOM STOCK Plan 904515 868928 851134 931206 913413 889687 5358882
MARK DOWNS Plan 61388.44 49110.75 73666.1
65481 77758.7 81851.25 409256.25
% of planned Mark down
15 12 18 16 19 20
BOM STOCK Plan 868928 904515 868928 851134 931206 913412.5 5338123
PLANNED PURCHASEAT RETAIL
Plan 372778.4 324913.8 331675 403562 398046 378413.25
2209389
PLANNED PURCHASESAT COST
Plan 190117 165706 169154 205817 203004 192991 1126788
34
35
Planned sale = % of season sales* net sales
July 15.5
Aug 17.5
Sep 15.5Oct 14.5Nov 19Dec 18
BOM = Planned sale for the month + Basic stock
July 275803Aug 311390Sep 275803Oct 258009Nov 338081Dec 320287
% reductions 23%
% maintained marup
% Alteration cost 0.50%
%cash discount 1.50%% gross margin 49.00%% operating expenses % net loss 0.10%Season turnover 2
Basic stock 593125
4.7 OPTION PLANNING AND STOCKING PLAN / CAPACITY:
36
PLANNED PURCHASE AT COSTPLANNED PURCHASE AT RETAIL*Cost = Planned purchase at cost
July 51%Aug 51%Sep 51%Oct 51%Nov 51%Dec 51%No of fixtures 29
Circulation space 1,568.23 sq.feetmerchandisble containers 168POS containers 16Nomianal linear Hanging 58% Folded 42%Unique options 17Option quntity 1417Store area 1,871.25 sq.ftCirculation space ratio 83.81%
Avg stock 889687.5Avg monthly slae 296562.5Basic stock 593125BOM Stock 868928
Profit %+ Expenses
0.10% 48.90%49%
100%-GM%51%
37
DISPLAY CAPCITY OF STYLE CHECK STOREFixtire Department Sub department Product Style Options Total no.of SKUWall panel A Mens Casual Tops Shirt Slim fit Half sleeve 25
Mens Casual Tops Shirt Slim fit Full sleeve 25Mens Casual Tops Shirt Slim fit Half sleeve 25Mens Casual Tops Shirt Slim fit Full sleeve 25Mens Casual Bottom Tousers Slim fit 50Mens Casual Bottom Tousers Regular fit 50
Total 200
Wall panel B Mens casual Tops T - shirts Regular fit Half Sleeve 60Mens casual Tops T - shirts Slim fit Collar neck 30Mens casual Tops T - shirts Slim fit Polo neck 30Mens casual Bottoms Denin Comfort raise 26Mens casual Bottoms Denin Low waist 26Mens casual Bottoms Denin Boot cut 26
Total 198
Wall pannel C Mens formal Tops Shirts Regular shirts Full sleeve 50Mens formal Tops Shirts Regular shirts Half sleeve 50Mens formal Bottom Trousers Regular Trousers 100
Total 200
Wall panel D Accessories Belt Formal 20Accessories Belt Casual 20Accessories Tie Solid 10Accessories Tie Stripes 10Caps 10Key chains 20Tatoos 30
Total 120
Wall pannel E Mens casual Tops Shirts Slim fit Half sleeve 20Mens casual Tops Shirts Slim fit Full Sleeve 20Mens casual Tops Shirts Sport fit Half sleeve 25Mens casual Tops Shirts Sport fit Full Sleeve 25Mens casual Tops T - Shirts Slim fit Collar neck 20Mens casual Tops T - Shirts Slim fit Collar neck 20Mens casual Tops T - Shirts Sport fit polo neck 20Mens casual Bottoms Trousers Regular 10Mens casual Bottoms Trousers Slim fit 10Mens casual Bottoms Denims Comfort raise 10Mens casual Bottoms Denims Low Waist 10Mens casual Bottoms Denims Boot cut 10
Total 200
Wall pannel F Mens formal Tops Shirts Regular shirts Full sleeve 50Mens formal Tops Shirts Regular shirts Half sleeve 50Mens formal Bottom Trousers Regular Trousers 100
Total 200
38
Nesting Table G Mens Casual Top T - Shits Slim Fits 10Mens Casual Top T - Shits Sports Fit 10Mens Casual Top T - Shits Regular Fit 10
Total 30
Nesting Table H Mens Formals Bottom Trousers Regular Fit Total 30
4 way Browsers I Mens casual Tops Shirts Slim fit Half sleeve 20Mens casual Tops Shirts Slim fit Full Sleeve 20Mens casual Tops Shirts Sport fit Half sleeve 20Mens casual Tops Shirts Sport fit Full Sleeve 20
Total 80
4 way Browsers J Mens formal Tops Shirts Regular shirts Full sleeve 40Mens formal Tops Shirts Regular shirts Half sleeve 40
Total 80
4 Way Browsers KMens formal Tops Shirts Regular shirts Full sleeve 20Mens formal Tops Shirts Regular shirts Half sleeve 20
Total 40
4 Way Browsers LMens casual Tops Shirts Sport fit Half sleeve 20Mens casual Tops Shirts Sport fit Full Sleeve 20
Total 40
Total no.of Units in thestore 1418
4.8 RETAIL PRODUCTIVITY PARAMETERS
39
SPACE PRODUCTIVITY OF THE STYLE CHECK STORE
CALCULATIONS
Sales/sq.ft = Total Sales/Total sq.ft
TotalSales 3558750Total sq.ft(Carpet Area) 1871.25
1901.803607
Service Intensity
Service Intensity = Total Area/No.of employee
Total Area 2000No.of Employee 4
500
Sales Per Employee = Total sales / No.of employee
Total Sales 3558750No.of Employee 4
889688
Gross margin% 49%
GMROFGMROF = Gross Margin/ Total no.of Selling areaGross Margin 1743788Total selling area 1871
932
GMROLGMROL = Gross magin/Total no.of EmployeesGross margin 1743788
4435947
CHAPTER 5
5.1RETAIL STORE LAUNCH:
5.2 SITE SELECTION:
The important aspect of a retail store is “Location”, without a proper site selection
the store will not run successfully, the following are the steps taken for selecting a proper
site in Erode city:
Site should be suitable to handle your business.
Site is an approved site to have retail business.
Site should have all the documents regarding the land and landlord.
Identification of customers in that street.
Site is suitable to good retail business.
Site should be Commercial Street with traffic.
Site should generate more revenue out of it.
The environment should be suitable to handle retail store.
Competitor analysis should have to be done.
The going rate per sq.feet in that area.
Customer spending power in that area. These are the main area that should be
considered before selecting the proper site.
5.3 IDENTIFICATION OF SITE:Following the above process in Erode the suitable place to have this store is in
Brough road, Erode. This place is one of the fast growing commercial streets in Erode, the
Brough is one of the revenue generating streets in Erode, with the lot of potential
customers, the customers are having good spending power, the street is growing rapidly for
fashion retail store in Erode, in 2010 there been 4 branded showrooms opened like adidas,
Planet fashion, Reebok etc., In future it would be the shopping place for whole city people
to shop around and sure customers will enjoy the shopping experience while coming to this
street, so these are the important aspect that been considered by the proprietor for
selecting this site in Erode.
40
5.4 STORE LAYOUT & INTERIOR:
5.4 STORE DESIGN & VISUAL MERCHANDISING:
5.5 GRAPHICS IN RETAIL ENVIRONMENT:cThe opportunities in retail signage are as lucrative as they are elusive, a fact that
may persuade some smaller shops to steer clear of the all-encompassing jobs that include
not only exterior identification signage, but a literal plethora of interior signage. But
attempting to keep up with the new definitions
that retail stores require on these monster bids
may just be worth it as the time, effort and
research is rewarded monetarily. If the purpose
of retail is to enhance brand recognition, then
here is exhibit ‘A’. The bold graphics were
designed in colours to stand out against the blue
background. The overall effect of the graphics is
what helps to build brand recognition. Notice
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how the line of clothing is just as bold, bright and basic as the signs that call attention to it.
Retail environments not only play on the visual senses, but on social and emotional levels as
well, Juncos explains. Determining how consumers react to certain designs and colors is an
ever evolving study which is well worth the analysis and is at the center of retail design and
implementation. As this response changes with time and trends, so must the stores react
with fresh graphic language. A facelift for your clients means repeat business in the sign
shop.
5.6 THE TOOLS FOR SUCCESS:As all craftspeople are well aware, an artist is only as good as his or her toolbox.
Palladio’s toolbox for retail encompasses three divisions—Envision, Create and Construct—
with a combined 160-plus employees. The “Envision” division includes designers,
researchers and marketing personnel who work closely with clients to devise concepts for
the project. The neighbouring “Create” team assists the design team in their efforts and is in
charge of fabrication and décor. Installation is the responsibility of the “Construct” division,
which has its own facilities in nearby
Chino, Calif., to store, relocate and put
together all of the company’s massive
projects.
The group effort of the host of
employees in the three sectors of
Palladio is brought together with all of
the big, necessary equipment for the
jobs as well. The long list of routers and
plotters, design software and the like is topped
off with its VUTEk printer, which has increased
the company’s in-house turnover by $750,000.
The flatbed printer was instrumental in the Jelly
Belly project, for which Palladio currently
holds a national contract.
The colourful patterns and designs that
scream “candy” practically defines a
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comprehensive retail project. Aimed predominantly at children, visitors to each newly
refitted Jelly Belly store are drawn to a set of brightly colored backlit boxes featuring
images of hundreds of jellybean flavours. While the notion of a giant printer, enough
employees to run it and a big enough place to store it may only be pipe dreams for some,
Palladeo’s idea is that in order to do big, thinking big comes first. Retail is the next step
beyond those inclusive interior-exterior-plus-extras bids. By thinking along the lines of
comprehensive offerings it may be that the next time there’s an order for a banner for a car
dealership, an entire retail project may be sold instead.
Supermarkets are one of the biggest clients for retail. Through basic routing, vinyl and
painting talents, a subtle directional-natured retail program allows for less obtrusive
signage. The effect of the more obvious hanging signage becomes more forthright.
5.7 LIGHTING & SIGNAGE: Style Check store will concentrate on to maximize customer attention on revenue
producing products. Effective use of store lighting can help guide customers to naturally
look at highlighted products through a combination of accent lighting, perimeter lighting,
shelf lighting and case lighting. Style check store
lighting will be done effective way of helping craft
the mood of a store, enhance its safety and draw
attention to a store's signage.
5.8 SPOTLIGHTS: Installing spotlights over product displays at
the ends of aisles, on wall displays, near your
checkout counter and at the front of your store. A customer's eye will naturally be drawn to
products that are highlighted by light. To maximize the financial impact of spotlights, place
your highest profit margin products on the displays.
5.9 MOOD: Style Check store will enhance the shopping
experience for consumers may increase
repeat business. When a consumer makes an
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emotional connection with a store, they are more likely to spend more time in the store,
which can translate into higher sales. Colored lights can be used to help establish a mood in
your store that relates to your product line or customer profile. For example, for Valentine's
Day products, cast your products in a slightly reddish hue and for party products, consider
using strobe lights.
5.10 ECOLOGICAL FOCUS:The Style Check store will also concentrate on energy saving lights. The type of
lighting you select can help enhance your retail store's "green" image. Strategic use of
skylights, CFC light bulbs and other low energy consumption lighting methods can lower
your carbon footprint and lead to company savings. You gain the benefit of reduced
expenses and can draw ecologically focused consumers to your store.
5.11 ENHANCE SAFETY: To enhance the safety of the Style Check store will insist the
government to give some outdoor, pedestrian lighting. Add lights
to the front of your store, to help prevent falls during evening
hours. Place lights in the parking lot outside your location to
increase the safety of patrons coming in and out of the store.
Customers are more likely to frequent a retail store where they feel
safe. The effective use of lighting can help enhance your overall
safety image.
5.12 SIGNAGE:Store Style Check will work towards retail sign and special promotion signage is
important to helping customers locate the store and know about the deals and specials.
Targeted lighting will be given to increase the visibility of the signs and helps the Style check
store’s announcements and location stand out from nearby stores. The following are the
different signage’s that will be used in the Style Check store as follows:
5.12.1 CLIP ON HOLDERS: This will be used for showcasing the new arrivals in the store.
OPEN SIGNS: It will be used to show the Store is closed or open.
5.12.2 RETAIL BANNERS: Retail banners will be used for showing there is some Sale
happening in the Store.
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5.12.3 SALES SIGNS: The sales signs will be used to grab the attention of the Style Check
store’s promotion.
5.12.4 SIDE WALK SIGNS: These signs are done to get attention and to increase more walk-ins
to the store.
5.12.5 GRAND OPENING SIGNS AND BANNERS: This will be fixed for the store opening let
everyone know the wide variety of collection and grandness of the store.
5.12.6 ACRYLIC SIGN HOLDERS: These holders will be used to change the signs and display
easily.
5.12.7 WINDOW SIGNS AND CLINGS: Cling signages will catch the attention to the every
customer about the sales and promotions. These are the various signages’ that will be used
in the store “Style Check”.
CHAPTER 6
6.1STORE DESIGN:
6.2 MIND MAPPING:The store Style Check is an exclusive for Men. The store Style check will stands for its
uniqueness in its interior design and graphics that were not present in Erode as of now. The
following are the some store’s interiors and layout are being captured before giving the
actual plan to see how the store will come; it’s actually a mind mapping before applying the
store plan.
6.3 INTERIORS:The main theme of the Style Check store is that Men should enjoy the shopping
environment, for that some Style Check is bringing new essence to it. The customers has to
move around easily make their shopping move comfortable.
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INTERIOR A
The interior A shows neat display of merchandise. The store looks more pleasant in which
the merchandise are displayed, the Store check will try to follow this similar kind of pattern
but the customers will be not be see the merchandise and buy it, they will unfold the
merchandise and then only they will buy it. So in Interior A shows most of the merchandise
are stacked, in style check store it will be other way around, it will hand most of the
merchandise, so that it will be more comfortable for the customers in Erode to see the full
merchandise and buy it. From this Layout Style check store will take the essence of this
interior.
In the case of the Interior B, it shows the free flow layout with neat and pleasant display of
the merchandise, Style Check store will apply some wall panels, Mannequins with in the
similar style in the above interior B.
Considering following factors while deciding a Store Layout can be useful.
Effective Use of Space - Space needs to be used effectively, with all the areas
planned properly to break up the store into logical and functional areas such as POS,
Back Office, Changing Rooms, Pantry, Toilets, etc.
Inviting Customers - Layout is designed to attract the targeted audience. It should
speak on its own and guide customers to all the areas of merchandise.
Interiors - Interior arrangements - appearance, walls, sections, and areas should be
planned and positioned well. Lighting and Music arrangement needs to be taken into
consideration while planning a layout. It should be placed to suit the kind of shopper.
These arrangements can be changed during different hours in a store.
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6.4 SCREEN SHOTS OF THE FINAL 3D STORE COVERING THE ENTIRE STORE MINIMUM OF 12 SCREENSHOTS:
The following are the final shots of the 3D Store
PICTURE 1
PICTURE 2
PICTURE 3
PICTURE 4
PICTURE 5
PICTURE 6
PICTURE 7
PICTURE 8
PICTURE 9
PICTURE 10
PICURE 11
PICTURE 12
6.5 FLOOR PLAN (BIRDS EYE VIEW /ISOMETRIC VIEW OF THE STORE) WITH
FIXTURE LABELLING:
6.6 LABELLING OF FLOOR PLAN:4 WAY BROWSERS:
LONG WAY KNEE TABLE:
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The Floor Plan of Style Check store shows the How the fixtures are being placed in
the store as well as the labelling has been done do each and every fixture in the store, the
fixture that are used in the store are wall panels, 4 way browsers, Long way knee table and
one cash desk. Store Style Check will give a beat and pleasant look to the customers once
the customers
6.7 CEILING PLAN (WITH LABELLING):
Ceiling tiles have become greatly popular in recent years. These products allow
homeowners and interior designers. Plastic ceiling tiles are an alternative to the common
wood or plaster tiles that most homeowners will find when out shopping. Plastic is cheap,
durable, and won't mold or decay overtime. They are also very light compared to wood so
they are much easier to work with. They will have a slightly different look because of their
material; however there are a great many designs available.
The store style Check will be using the plastic ceiling, so that it will be easy to work
with, its east to clean, and nowadays there are many designs available in the market and
also it is very cost effective.
6.8 ELEVATION PLAN (FIXTURE MAPPING AND LABELLING):
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The above mentioned image shows the front elevation of the Store Style Check,
where we could see a good circulation space with “Free Flow” layout, the image shows the
good walk-in space as well as the good elevation. The store is designed in such a way where
customer could see the store from the outside itself, so that it will make the customer to
come into the store and enjoy the shopping experience.
6.9 PRODUCT PLACEMENT STRATEGY:
The product placement is an important strategy of any retail store, it will create good
ambience to the store. Style Check store will be having an effective display and its important
strategy is to bases its sales proposition on how the consumer perceives the product rather
than on the product itself. This approach attempts to circumvent the barrage of advertising
directed at consumers. The products are placed by giving enough space to the customers to
walk around and see the merchandise, the merchandise are given enough space, so that
each and every styles kept in the store will differentiate form others it will make the
customers to choose plenty of design in the store. The placement of the product is divided
into two types they are Hanging and Stacking. The Store has been given 58% for hanging and
42% for the stacking. The hanging has been given highest percentage because people in
Erode are more comfortable in touch and feel the fabric and then only they will decide to
purchase the merchandise. The stacking are been done in the wall panel and in the long way
knee table, for one shelf stacking will be restricted to two styles per shelf, so that it will give
good placement to the merchandise and easy for the customers to pick from the shelf or
rack.
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6.10 PLANNOGRAM (SCREEN SHOTS OF THE PLANNOGRAM OF ALL FIXTURES:
WALL PANNELS WITH MECHANDISE
`
WALL PANNEL WITH MERCHANDISE
WALL PANNELS WITH MERCHANDISE
4WAY BROWSRES WITH MERCHANDISE LONG WAY KNEE TABLE WITH MERCHANDISE
6.11 PRODUCT/DEPARTMENT LABELLING:MENS DEPARTMENT:
CASUALS:
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MEN’S FORMALS:
6.12REFLECTIVE NOTE ON THE THEME NOT EXCEEDING 150 WORDS:The store Style check is the which will stands for its uniqueness in the Erode, because
this kind store plan, interior, walls and wall panels are currently not present in the city.
Customer should feel that they have entered into the new wall which is full of “Style and
Design”. The Wall is going to be raw brick which shows the ruggedness of Men. The floors
are wooden to give rich look to the store. The Style Check store in Erode will surely tug the
heart string of the customer with colorful designs, styles and patterns, the lighting which are
going to be used in the store are more powerful track lights, wall poster in the center will be
the center of attraction, it will be changing frequently with new arrivals, promotions and
something special to Men. The theme may be not unique in the metros but when compared
to city like Erode, it’s new to them and if once they come into the store, surely they will be
coming next time. There are many Men store in Erode with expensive products, not giving
good customer service, the Style check store will give double bonus to its customers in the
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way of giving nice shopping experience as well as getting merchandise at an reasonable
price.
6.13 GENERIC VISUAL MERCHANDISING GUIDELINE SHEET:As the mentioned in the previous passage about the uniqueness of the store
similarly Style Check will have its own standards in which it will make sure that should be
followed in the day to day. The following are the standards of the Style Check store:
Store will be maintaining the minimum stock level.
The Hanging should me more than stacking ratio 2:1.
Weekly once Mannequin merchandise should have to chance.
More of tops should be displayed in hanged in the 4 way browsers/
The minimum quantity to be stacked in the shelf will be 8 and hanging will be 16.
The Minimum stacking capacity of the Denim will be 8 in the wall panel and 6 in the
long way knee table.
The minimum stacking capacity for the casual trousers will be 8 and the hanging will
be 12. In case of long way knee table the minimum stacking capacity will be 6.
The mannequins should focus the central focal point.
No price tag should be seen outside the merchandise.
The merchandise should face the front side and if it has some design elements like
print, solid etc it can turned backside.
There should not be any overlapping designs.
Windows, shelves, floor should have to clean regularly.
Make sure that room freshener will be sprayed across the entire store daily to
maintain the freshness in the store always. These are the generic visual
merchandising guide line sheet that will be followed compulsorily in the Style store.
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PROPRIETOR
SALES ASSOCIATE SALES ASSOCIATE SALES ASSOCIATE SECURITY
STORE MANAGER
CHAPTER 7
7.1 RETAIL OPERATIONS:Retail store operation is one of the core areas in the every retail store. Without a
proper retail procedure the store can’t run successfully. Every management will have to have its own retail store. Store operation resources, daily procedures, creating internal controls and systems, establishing retailing functions and other day-to-day retail store operations.
7.2 STYLE CHECK STORE:The store Style Check is ultimately for Men. The Store will work towards the proper
retail operations in which will follow on day to day operations. The following are the store
operation for the Style Check store in detail:
Important aspect of Opening and Closing Procedures:
The Staffs should have simple written procedures for opening and closing the shop.
This is important if the shop is isolated.
It is safer if more than one person opens or closes the shop. A work experience
student must not be given responsibility for opening or closing, or given the keys to a
shop.
Procedures should cover checking to make sure:
There are no suspicious people or vehicles around when you enter or leave the work
place
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No one has broken in - if there are signs of a break-in, you must know what action to
take
Before leaving, that the safe (if there is one) and all entries, exits and windows are
securely locked, and
There are no unauthorized persons remaining on the premises.
7.3 STORE OPENING:The following are the Store opening procedure of the “Style check” store in Erode.
The Store Style has its own systems and procedures before opening and closing of the store.
The following are the process in which the opening of the store will be carried in the Style
check store:
The Chart shows that Proprietor is only person who will be responsible for stating
from store opening to store closing.
The store will have two keys one with the proprietor and other with the store
manager.
The Cash box will be locked and that has only one key and it will be with proprietor.
The Store will be opened at morning 10am on weekdays and 10:30am on weekends.
Every day morning store manager will be coming and opening the store.
The Store has one shutter that has three locks one in the center and other two will
be in the corner of the both side.
Every day morning store manger will come and open the shutter with the help of
sales associates, after opening the front shutter the next process is opening the
main door. The main door key will be with the shutter door key and the store
manager will open the door. In case of any Emergency if the lock is brooked or any
theft the store manager has to immediately inform the proprietor.
After entering into the store the store manager has to call from the “Landline
telephone” telling that the store has been opened. Sales associates will on the Main
switch and the store manager will switch ON the UPS and start running the system.
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The store manager has to mail the yesterday’s sales figure to the proprietors mail
ID.
The proprietor will be having the master key including the cash box key, that key will
be handled only by himself. He will come and open the cash box every morning.
Every day store manager has to check the inventory using IT software’s where it will
provide with the complete figure of stock in and stock out.
In case of any sudden replenishment the store manager has to inform the Proprietor
earlier so that stock will be refilled daily.
Once the sales associates enter into the store, each has to login their ID which is
given to them, which will record their attendance, sales track, salary and incentives.
Sales associates have to clean the merchandise using feather and they have to refill
the stock from the back store.
Housekeeping will be coming by the time of 10:30am and will clean the floor.
At the time of 10:45am store operations people will have a cup of coffee with
biscuits. These are the typical store opening function of the Style check store.
7.4 STORE CLOSING PROCEDURE:As the process done for the opening the store, same deep process has to do for the
store closing. The following are the process of store closing procedures:
The store will be closed on by 9:30pm in the weekdays and 10:00pm in the
weekends.
The store closing time will be adjusted based on the customer’s walk-ins.
The Store manager has to inform from the Landline telephone telling the end of
today’s sales, walk-ins and no. of units sold out.
The cash box will be locked by the proprietor himself.
System and UPS will be switched OFF.
A/C will be turned OFF.
Main switch will be turned OFF.
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Once all are out from the store the main door will be locked and next shutter will be
locked.
Store manger will carry the key safely.
Security person will there for whole night and he will be sitting outside and
safeguarding the store from the theft. These are the procedures that will be followed
for both the opening and closing the store.
7.5 STAFFING:The recruitment of the staffs are based on their qualification the following are the
qualification requirement of the management level:
QUALIFICTION OF THE STORE MANAGER:
High School graduate, with 5 years previous practical retail fashion work experience,
1-2 years of which should be at operational management level, OR
University degree in Retail Management, or related subject, plus 2-3 years
experience
Excellent knowledge and understanding of store operating procedures
Full Working knowledge of local health and safety legislation
Knowledge and understanding of financial planning and budgeting processes
Excellent knowledge of store product range
Excellent fashion knowledge across all ranges – (women’s wear menswear; children’s
wear)
Excellent understanding of the brand and customer profile
Excellent understanding of layout and visual merchandising techniques
People management skills
Operational planning skills
Objective setting skills
Well developed interpersonal skills
Problem solving skills
Decision making skills
Excellent customer service skills
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customer ends assessment
meeting customer service quality standards
evaluating customer satisfaction
English and locally required language skills – written and spoken
Good communication skills – written and verbal
7.6 SALES HEAD QUALIFICATION: High School graduate, ideally with previous practical shop work experience
Knowledge and understanding of store operating procedures
Knowledge and understanding of POS operating procedures
Thorough understanding of the brand
Fashion knowledge
Ability to work as part of a team
Strong customer service skills
customer needs assessment
meeting customer service quality standards
evaluating customer satisfaction
English and locally required language skills – written and spoke
Sales Associates 10th, +2 completed with minimum two years
in retail store
Security Officer Qualified on the basis of contract from the
security agencies.
7.7 RESPONSIBILITIES:
7.7.1 STORE MANAGER: The store “Style check” has one manager who is the person ultimately responsible
for the day-to-day operations of the store. All employees working in the store should report
to the store manager. As a proprietor I won’t be there in the store at all the time, store
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manager has to manage the store efficiently and effectively. The following are the some
responsibilities of store manager in my store:
Store business operations, including managing profit and loss, facility management,
safety and security, loss prevention (also called shrink), and banking
Product management, including ordering, receiving, handling damaged products, and
returns
Team Development, facilitating staff learning and development
Problem solving, handling unusual circumstances.
He have to report me daily about the sales figure, fast moving and slow moving product
about the staffs working performance.
Store manager in my store must be responsible for store opening and closing the details
will be revealed in the store operating procedures these are roles and responsibilities of
the store manager in my store.
7.7.2 SALES ASSOCIATE:A Sales Associate is responsible for maintaining outstanding customer service as per
Company standards, generating sales, merchandising, and safeguarding company assets is
the important activity of the sales person in my store as a procedure. The following are the
some responsibilities of a sales associate are as follows:
Ability to communicate with associates and customers
Assist in floor moves, merchandising, display maintenance, and housekeeping
Assist in processing and replenishing merchandise and monitoring floor stock.
Aid customers in locating merchandise.
Communicate customer requests to management.
Assist in completing price changes within the department.
Participate in year-end inventory and cycle counts.
Assist in ringing up sales at registers and bagging merchandise.
Any other tasks as assigned from time to time by any manager.
7.7.3 SECURITY PERSON:
The roles and responsibilities of the sales person of my store are as follows:
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Protecting and securing the store from the shrinkages.
Protecting property, and belongings.
He has to take the responsibility of the bags of the customers and make sure he
given with token of bags that he gets from the customers.
While during crowd he has to look carefully in the store, whether there is any theft.
He has to properly open the door once the customer entered and goes out.
He has to welcome the customer every time. These are the roles and responsibilities
of the staffs in the Style check store.
7.7.4 SECURITY SYSTEMS TO CONTROL SHRINKAGE:The store Style Check will not be installing any security systems in the store as of
now because of huge investment. So it directly adds more burdens for the security officers.
The following are the systems that will be adopted in the store to reduce the shrinkage:
Security officer will take care of the customer’s luggage in the store.
Customers will be given token for their luggages.
Security officer will be the one who has to take care of the stocks that are in the
store.
During the festival times there are chances for more shrinkages, so the security
officer has to be more conscious in looking the floor and trail room because chances
of shrinkages will be more in that times.
The customers have to show their purchase bill to the security officer before leaving
out of the Style check store.
Fire extinguisher will be placed in and around the store. There will be five
extinguishers placed in the store, in which one will be in outside and other four will
be placed inside in the four corners.
7.8 CASHIERING AND CASH TILL MANAGEMENT:In the store Style Check cashiering will be carried out by the store manager and sales
head, there is no separate cashier for the store, store manager himself will be looking after
the cashiering. The following are the activities that are carried out in the cashiering
department:
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Cash Handling:
To reduce the risk of injury or harm, employers should have cash handling procedures and
must train you in these procedures.
Procedures should cover:
Removal of excess cash from the till to safe storage
Displaying signs where they can be clearly seen informing customers of limited cash
holdings
Not handling cash in front of customers, and
Delivery and deposit of money at the bank.
Every day store manager will tally the cash and deposits into the morning.
Store will be using IBM power5 printers for billing.
The cards that are accepted in the Style check store are American express, Diners
club, and Maestro, Visa, and Visa electro.
The store Style Check will be keen in making POS a place where customers don’t
want to waste his time.
Billing will be carried quickly once the customer’s takes out the merchandise,
customer ID will be asked after that scanning will be done after that cash or card and
billing will be finished.
Store Style Check will have computerized POS system, so that all the functions in the
cashiering will be done quickly and effectively.
The time taken for making one bill will be within 4-5 minutes.
The cash will be immediately deposited into the bank and there will be maximum of
10,000.Rs in the store.
Cash till key will be under the control of proprietor, proprietor himself will carry the
key every day.
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7.9 INWARDING AND OUTWARDING:The in warding and out warding of stocks will be carried out effectively in the Style
check store are as follows:
7.9.1 INWARDING: Goods will be received will received by checking GRN (Good received notes) form the
suppliers.
Checking the Delivery of vehicle number.
Security person will be checking when the merchandise are unloading from the
vehicle to see that stock been came safely without any damage, in case of any
damage security person will have to immediately inform the proprietor.
Scanning will be done immediately and the stock will be uploaded to the store using
GRN.
In case of shortage identified in the sealed box, store manager has to do GRN for the
actual quantity received.
GRN for the short quantity will be done separately.
In case of any excess stocks store manger must inform the suppliers that there is
excess of stocks.
The excess item should be send back to the dispatching place by sealing the truck
with the returned goods.
Goods will be received strictly as per the P.O raised by the store.
7.9.2 OUTWARDING OF STOCKS: Out warding of stocks will be done in case of excess, non moving stocks and
damages.
If an item is to be out warded from the store, an outward purchasing order will be
done.
The items that are out warded are checked against P.O.
Each item will be entered against the P.O.
For any items to be out warded special packing will be done for the merchandise.
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Proper size carton will be used for packaging.
An outward packaging slip will have relevant details mentioned and must be pasted
on each cartoon.
A record must be done in the store outward register capturing the vendor details,
consignment details and quantity being out warded.
Security officer will check whether the item belongs to the particular vendor or not.
All the stocks that are out warded from the store must be checked by the store
manager. These are the in warding and out warding process of Style check store.
7.10 WARE HOUSE AND DISTRIBUTION STRATEGIES:Style Check store will not be having any separate warehouse; the stocks will be
dumped in the proprietors house in 500.sq.ft room. The store also has its own back store
where minimum stocks should be maintained in the store in case of any emergency. The
stock replenishment will be done by noticing the article number from the store to the
warehouse and next day stock will be send to the store by vehicle. The store is following a
“direct distribution center” where owner himself will take responsibility of goods that are
stored in the warehouse and delivered it to the store at the right time, so that minimum
stock quantity will be maintained.
CHAPTER 8
8.1 IT APPLICATIONS:Information Technology is one of the fastest growing technologies in India,
nowadays without IT several companies struggle to do their business. In retail industry IT
play a major role from purchase to sales, IT application helps to control the stocks,
inventories, shrinkage etc., for various purposes. The stores like Big bazaar, Wal mart,
without IT they will be difficult to run such big store with huge inventories, Nowadays even
small shops are running with the Help of IT application, IT makes the retailer easy to handle
stocks, easy to track and record the sales transaction. The following are the important terms
that are used in the IT application:
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8.2 MIS:A management information system (MIS) is a system that provides information
needed to manage organizations effectively. Management information systems are
regarded to be a subset of the overall internal controls procedures in a business, which
cover the application of people, documents, technologies, and procedures used by
management to solve business problems such as costing a product, service or a business-
wide strategy. Management information systems are distinct from regular information
systems in that they are used to analyze other information systems applied in operational
activities in the organization. Academically, the term is commonly used to refer to the group
of information management methods tied to the automation or support of human decision
making, e.g. Systems, Expert, and Executive information systems.
An 'MIS' is a planned system of the collection, processing, storage and dissemination
of data in the form of information needed to carry out the management functions. In a way,
it is a documented report of the activities that were planned and executed. According to
Philip Kotler "A marketing information system consists of people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers."
The terms MIS and information system are often confused. Information systems
include systems that are not intended for decision making. The area of study called MIS is
sometimes referred to, in a restrictive sense, as information technology management. That
area of study should not be confused with computer science. IT service management is a
practitioner-focused discipline. MIS has also some differences with ERP which incorporates
elements that are not necessarily focused on decision support.
Any successful MIS must support a business’s Five Year Plan or its equivalent. It must
provide for reports based upon performance analysis in areas critical to that plan, with
feedback loops that allow for titivation of every aspect of the business, including
recruitment and training regimens. In effect, MIS must not only indicate how things are
going, but why they are not going as well as planned where that is the case. These reports
would include performance relative to cost centers and projects that drive profit or loss, and
do so in such a way that identifies individual accountability, and in virtual real-time.
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8.3 FTP:File Transfer Protocol (FTP) is a standard network protocol used to copy a file from
one host to another over a TCP/IP-based network, such as the Internet. FTP is built on a
client-server architecture and utilizes separate control and data connections between the
client and server.[1] FTP users may authenticate themselves using a clear-text sign-in
protocol but can connect anonymously if the server is configured to allow it.
The first FTP client applications were interactive command-line tools, implementing
standard commands and syntax. Graphical user interface clients have since been developed
for many of the popular desktop operating systems in use today.
8.4 SQL AND ITS USAGE:Scalable
Build scalable data-centric solutions that target any workload from the smallest
device to the largest servers and enable your applications to grow with your business
needs.
Increase reach and scalability through occasionally connected systems
Support online and offline data storage capabilities by using SQL Server Compact
edition combined with Microsoft Synchronization Services.
Increase the reach and scalability of your data services solutions by distributing data
access workloads across client devices as well as database servers
Extend business insight through familiar tools Save time and money by leveraging
the tight integration between the SQL Server 2008 BI platform and the 2007
Microsoft Office System. Render reports directly to Microsoft Office Excel and
Microsoft Office Word.
Make predictive analysis accessible to a wide audience by empowering end users to
harness the highly sophisticated data mining algorithms of Analysis Services within
the familiar environment of Excel by using the Data Mining Add-Ins
Store any kind of data in SQL Server 2008
Centralize and optimize data storage for applications by a diverse range of data types in SQL
Server 2008 that supports:
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Relational data
XML documents
File streams
Location-based and spatial data
Take advantage of SQL Server 2008 data storage optimizations, such as the
VARDECIMAL type that minimizes the space required to store numeric data, and the
new support for
Sparse Columns that greatly reduces the storage overhead associated with null data
Build highly scalable applications with SQL Server 2008
Develop high-performance procedures that access and manage data in the database
through the SQL Server Common Language Runtime (CLR) integration by using the
Microsoft NET Framework and managed programming languages such as C# and
Visual Basic .NET
Create asynchronous, message-based solutions that use a service-oriented
architecture to scale across the enterprise and beyond with Service Broker
Build highly scalable, distributed data solutions by using native support for standards
such as SOAP and HTTP.
8.5 IDENTIFICATION OF PLATFORM(S) THAT IS/ARE BEST SUITED TO THE MODE OF OPERATION OF THE RESPECTIVE STORE(S):
The File Transfer Protocol is an excellent method to retrieve or send files from one
computer to the other on the Internet. Though files can be transferred using email, it is not
a good choice if the file size is large or when you need to transfer several files. FTP sites can
consist of hundreds to thousands of files with information on books, music, libraries etc.
You can know more about FTP - File Transfer Protocol here. The advantages of using an FTP
program are several - you don’t have to remember FTP commands, the program can keep a
tab on which files were transferred thus saving you time, migration through the directories
on the server becomes easier etc.
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8.6 BUDGETING OF IT EXPENDITURE AND JUSTIFICATION FOR THE SAME:The budgeting for the IT is done on the following basis:
ITEM EXPENDITURE
Two computers Rs.50,000
IT software Rs.30,000
Bill printer Rs. 5,000
Antivirus software Rs.1,000
Bank machine Rs. 5,000
Total Rs.81,000
The budgeting for the IT is not too costlier for operating the store, with the help of IT
will be do faster sale and soon will give ROI on the expenditure.
8.7 COMPUTERS:Two computers will be needed initially in the store, one will be in the store frontend
and other one will be in the back store, in the both computers software will be loaded
because we can’t simultaneously do the sale as well as entering the stocks, so that back
store system will maintain the back store inventory.
8.8 IT SOFTWARE:As I had already mentioned the software will be essential for operating a successful
store The Store is designed in such a way where it will be having its own system and
procedures that are needed for effective operation, for that effective the store will need IT.
The following are the advantage of using the IT application:
To monitor the store’s performance.
To control the stock.
Effective operation in billing, counting (Example: using Scanners).
To maintain and record the employee data.
To monitor the sales performance of the store.
To inward and outward the stocks easily.
To track the suppliers details.
To replenish the stock.
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To give complete structure for making a organized retail business
8.9 IDENTIFICATION OF BEST/OPTIMUM HARDWARE THAT WILL BE NEEDED FOR THE SMOOTH FUNCTIONING OF IT:
The IT in the Style check store will perform smoothly and effectively with the
following configurations:
Operating System Windows 7 (Home premium)
Processor Intel core i3 2.40GHZ
Memory 4 GB RAM
System type 64 – bit operating system
Hard Disk 520 GB Hard Disk
Total Rs. 35000
These will be the good configuration to run the Retail application software
application because Windows 7 operating system will perform much faster than any other
operating system with 64 bit OS and the Memory will be much higher so it will be god for
long Run.
8.10 IDENTIFICATION OF BEST SOFTWARE SOLUTION:The Store Style Check will operate the store with the help of IT application, among
the various IT application software’s available in the industry, and the store Style check will
be installing “VASTHRA” a corpus labs product. Style Check will be install this software into
the system and operate the store. The following are the various advantage of using
‘Vasthra”:
It is very user friendly because, the applications are done for the local market, so
that it is easy for the retailer to track the names easily.
The transactions that are given in the software’s are helpful to perform the function
quickly.
This software helps to create the SKU’s.
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8.11 DESIGNING OF SECURE ENVIRONMENT (NETWORK AND INTERNET SECURITY) TO ENSURE UNINTERRUPTED IT OPERATIONS:
For smooth running of the business every retail organization has to make sure their
backups will be secured safely, in securing IT application the store Style will be keen in
securing the information that are needed for successful running of the store. The
applications in the hard disk should be kept very safely without harming from any virus. IT
application should be safe by installing original “Antivirus” package that should be needed
to protect the IT application from any harm or virus and for smooth running of IT. The
important thing is that Windows 7 is designed in such a way that will not allow any type of
interrupted file into the hard drive but it is safe to move with some Antivirus package, we
should buy an commercial Antivirus package for one year. Every morning we need to do
proper scan of whole system and update the software with internet connection. The
interconnection will be Broadband 3G with 4.1mbps so that it updates quickly and we can
quickly access the Internet. These systems will be implemented in the Style check for good
operation of the store as well as IT.
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8.12 FINALIZATION OF ATTRIBUTES USED FOR CODIFICATION OF INVENTORY: (REPORT ATTACHED IN THE EXCEL SHEET)
GENERATION OF ALL NECESSARY MASTERS THAT ARE CRUCIAL TO THE BUSINES: (REPORT ATTACHED IN THE EXCEL SHEET)
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ATTRIBUTE MASTER FOR STYLE CHECK STORE
City MasterCity code Short nameCity name Reference noState Distance
Sku nameChange name Attribute
Designation masterDesigination nanme Discont codeShort name Discount description From date
Discount prin name To date
Short nameReference noDiscount status Yes/No
Employee master Designation Login status
Employee code Section Reference noEmplloyeee Group nameShort nameDate of Joining
Employee attribute masterEmployee name
From date To date
Promotion detailsCode Description Print nameShort name Reference noFrom date To dateStatus Yes NoBillFrom vaue To valueDiscount per piece Dis value
Transport MasterTrasport code Tel noTransport name Cell noShort name EmailAddress 1 FaxAddress 2 Demurrage day
Dummerrge chargeCurrent status yes no
SKU MASTERSku name AttributeChange name
Sales TickerSales ticker Date Sales date status
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ReportsSale Between Dates Datewise sales SummaryOut going stock Incoming stockPricewise stock Pricewise sales reportDeactive Discount item code
Sales RegisterBill no Bill value Qty Avg.value
Cash Card Credit G.V EMICheque/DD
BillingDateCustomer ID Customer Name Mobile no Email id
Telephone no CityS.no Item code Product Style Department
Size MRP Qty DiscountTotal Del
Item Code Discount Qty Grand total Delete
Payment Details CashCredit card Amount Bank nameCheque/DD Amount Bank nameGift Amount
Purchase OrderS.No Item description Brand Design Size
Color Tax Discount% Purchase QtyUnit price Purchase value Item sales no.
Sales return Register
S.no Cr.Note no Credit note date AmountEmployee name
Adjusted bill no Status Base amt Tax amtAmt settled Closed amt Cr.bill Status Qty
Payment ledgerS.no Supplier name GRN no GRN date Invoice no
Discount amt Net amt Sales amt Amt paidBalance B.stock% Todays paymentStatusCategory Debit note no
8.13 DEFINITION OF STANDARD OPERATING PROCEDURE BEST SUITED TO THE RESPECTIVE TYPE OF STORES:
The store style Check will have its own set of SOP in which each has their
responsibilities to move ahead and work through proper systems and procedures, the
following are the important SOP of the Style Check store in which it will work on it.
Achievement of top line targets for store.
Inventory Management through coordination of stock movement, replenishment &
audit.
To lead, motivate & retain store staff and maintain a customer friendly environment.
Management of store operations as per SOP manual
Ensure implementation of store level activities – promotions, Visual merchandising ,
Tracking & analysis of store MIS.
Tracking of market intelligence activity in catchment.
Management & motivation of store. These are the effective SOP of the style check
store in which each and every member in the organisation will through it.
8.14 DEFINITION OF CTQ (CRITICAL TO QUALITY) IN TERMS OF MIS REPORTS NEEDED FOR ANALYSIS OF BUSINESS:
Critical to Quality: A requirement that a customer values is considered Critical to
Quality. What the customer pays for.
The Style check store will be adopting a very good MIS system so that customer will
ge benifitted. The important thing is that Style check will be standardized in such a way that
will not lose its single valuable customers
8.15 JUSTIFICATION FOR DEFINITION OF CTQS
The store style check will be working towards giving good customer service to the
people. The customer will be satisfied by getting full knowledge about the product in the
store because the sales associates are trained in such a way that they could explain the
product to the customers fluently and effectively to get them satisfied. In case of MIS the
store will provide customers ID number where customer can be benefitted by getting bonus
point and with the bonus point they can redeem with cash discount or can purchase
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merchandise. The MIS will also provide getting customer feedback form in which customer
feedback will be asked to improve as per the customer requirements.
CHAPTER 9
9.1 MARKETING PLAN:
9.2 SEGMENTATION VARIABLES: In and around Erode the Style checks potential customers are both youngsters (18-25 years)
and successful entrepreneurs (25-45). As the region is known for its renowned colleges and booming
textile industries.
Style Check store’s Ideal and potential Customers are
Customers Age group Attributes
Men 18-25 Casuals + Formals
Men 25 - 45 Formals
9.3 TARGET MARKETS: The Indian men’s apparel industry is expected to burgeon at a CAGR of 14.86% from
2008 to 2010, according to new research report "Booming Men Apparel Market in
India" by RNCOS. The report gives an insight into the expanding men’s apparel
industry in India. It has been made to help clients in analyzing the opportunities,
challenges and drivers critical to the success of men apparel industry.
Men’s are accepting fashion and accepting new trends in the current market.
The youngsters are changing towards more lively and social. As they are more
oriented towards fashionable garments. The Style check will fill them with good
designs and collections.
Marketing can be carried out effectively by distributing pamphlets near colleges and
hoardings.
TV ads will be conducted frequently to get attention to the target customer groups.
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9.4 TARGET GROUP WITHIN THE PRODUCT:The store Style Check will be selling three categories they are Casuals, Formals and
Accessories based on these category pricing target audience are B+ and B the middle class and upper
middle class. The pricing are done especially for these target markets in which most of the peoples
are falling to these income level groups in Erode.
B+ Will be having their own business or going
to some work with salary or income ranges
between Rs.15000 – Rs. 25000. A typical
middle class people
B Will be going to work, don’t spend too
much, conservative in nature, income
ranges in between Rs. 8000 – Rs. 15000.
9.5 POSITIONING STRATEGYThe Style Check will be having tie-up with a famous personality actor Surya.
As Surya will be ideal for marketing among both youngsters and successful
industrialists.
Style Check will be having range of varieties and Endless styles as its tagline says, the
products are shown to be different from the competitors.
Except foot wear Style check will have All in All fashion.
It will be positioned as one stop destination for Men in Erode.
9.6 4PS:
9.6.1 PRODUCT: The Style Check store is meant for Men’s exclusive outlet, working fully towards Men
apparels and accessories.
The product range includes: Style Check Casuals, Style check Formals, and Style
check accessories.
Style Check Casuals: Style Check casuals will be a distinct mélange of everything the city
represents – the people, the passion and the energy. It includes designs which are unique as
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well as some designs which are closely equal to the design in the international brands. It
includes slim fit, Sport fit Shirts and trousers.
Style Check Formals: Style check formal is been designed to show the richness and
strength of Erode successful enter pruners and emerging youngsters. It includes
regular full sleeve shirts and regular flat front trousers.
Style check Accessories: The accessories that are which are going to be in store
which are caps, belts, tattoos and ties, these accessories are kept to see the interest
of the people where they are prepared to be in full casuals and full formals based on
the response the accessories product line will be increasing in the Style Check store.
9.6.2 PRICING PLAN: The pricing plan for the store Style check has been undergone seriously because the
people in the Erode city are more conservative and traditional, they will see the
fabric and guess what will be the price of the merchandise.
The brand Style Check will be a private label, it will be insisting every time with
supplier for best competitive price in the market.
The Unique think about the Style Check store will be coming up with some
innovative designs that are not presently present in the market and add some
essence to it.
Style check store will give be keen in offering reasonable price at the same time in
terms of quality aspect Style check will be giving special attention into it. The
following are the Average MRP of each department and sub department.
9.6.3 AVERAGE MRP OF EACH DEPARTMENT:
Department Men’s Casual .
Avg.MRP 537
Sub Department Top Bottom
Avg.MRP 424 649
Shirt T-Shirt Trouser Denim
499 349 599 699
Department Men’s Formal
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Avg.MRP 549
Sub Department Top Bottom
Avg.MRP 499 599
Shirt Trouser
499 599
Department Men’s Accessories
Avg.MRP 88
Sub Department Belt Cap Tie Key Chains Tatoos
Avg.MRP 249 60 80 30 20
9.6.4 PLACE:
Style Check store will be opened in Erode city. The city is known for textile markets.
There been many textile mills, handloom firms, and also specialised in agricultural market
like turmeric, sugarcane etc.
The place known for woven fabric.
The place has beautiful bus terminal, and it is marked by the Southern railway as one of the
important destination in the Railway stop.
The Style check will be in the heart of town the “Brough road”. This street is named for
retail in Erode.
The street is earning good revenue in retail, more from fashion retailers like Adidas, Sting,
Raymond’s, Planet fashion, Prince collections, All times, Crazy etc.,
The street is having good walk-ins both in Weekdays and weekends as well.
The store Style check will generate more walk-ins and will become stylish retailer in that
street and Place.
9.6.5 PROMOTION: Style check will be concentrating more in the market with more attractive
promotions to get attention about the store.
Special events will do through colleges and schools.
Advertisements in television, issuing pamphlet, setting kiosks in front of schools and
colleges and firms.
“Help them “and “Gentle Men’s Game” are the two special promotions will be
introduced other than the other seasonal promotions.
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“Help them” will be the promotions for Independence day to help physically
disabled people in Erode city and “Gentle Men’s game” promotion will be done for
the Style Check Formal with attractive offers.
Events will be conducted regularly and sponsorship will be given to important
meetings and Expo.
9.6 DISTRIBUTION:
It is defined as a chain of intermediaries; each passing the product down the chain to
the next organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will
have their own specific needs, which the producer must take into account, along with those
of the all-important end-user. The Channel that Style check store will be having is
“Retailer who sells to end customers.”
9.7 CHANNEL DISTRIBUTION: In the Style Check store the distribution will be carried out by the Proprietor and
sales associates. One sales associate with driver will be sending to take goods from the
suppliers, warehouse etc. The distribution will be carefully watched by the proprietor like
time strain, damage and checking the stock once it’s reached the store. The channel will be
motivated by giving incentives and allowances.
9.8 IMC:
9.8.1 PROMOTIONS:The Style check will be paying special attention towards its promotion, there are
many promotion activities will be carried for the first one year because to know what the
store is doing. In today’s market scenario every store has to be different from other one. As I
have already mentioned in the 4pcs two main promotion and other than that Aadi sale, New
year sale, Deewali promotion, Valentine’s day promotion etc. These promotions are done
to be in the minds of customer.
9.8.2 ADVERTISING: The Advertisements will be carried out in different channels throughout the City.
The channel includes News paper, Television (Local channel), distributing pamphlets,
fixing the Hoardings in and around the store.
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The advertisements will be done also through road shows, Meetings, Expo and
Kiosks.
These advertisements will be done by some college students who are interested in
marketing and sales. They will be paid as per their activities.
9.8.3 PERSONAL SELLING:Style check will be also be associated with the Personal selling in the way in which
proprietor himself will be involved with his sales associates with direct marketing and
explain about the product especially in colleges and offices. Telephonic calls will be done to
give information about the special promotions in the store.
9.8.4 WEBSPACE:Store will also pay special attention in the Web space because it’s an only media to
be closely connected with the peoples. The Style Check will have its separate account in
which the customers can see all of its promotion activities happening in the store and
customer also write their comments about the store, promotions, products etc. These
activities will be done on the social networks like Face book, twitter, orkut, Linkidin etc.
9.8.5 CUSTOMER:Customers will be treated like a king in the store, special programme will be conducted for
the sales associates for how and what to deliver for the customers in the stores like giving complete
product knowledge, showing smile when customers into the store, be patience even customers
takes time to chose the merchandise, tell thank you and keep visit the store next time will all add
advantage to the style Check. Customers will be given feedback form to fill once they finished their
shopping. Customers ID will be registered by getting their phone numbers and every tome their
points will be added as they purchase.
9.8.6 MARKETING BUDGETS:The financial plan has been done for the whole Style check store in which separate budget
has been allotted to marketing. The marketing expenses for the year one will be Rs.600000. the
following table shows the various marketing expenses:
ADVERTISEMENTS (TV, NEWS PAPERS, PAMPHLETS)
Rs.20000
EVENTS Rs.20000SPONSERSHIP Rs.30000KIOSKS Rs.30000Road shows Rs.40000
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These budgets are assumptions these may vary according to the season and sudden promotions, but more or less expenses are same.
9.8.7 GROWTH STRATEGIES:The store style check is to capture the mass market with the effective of cost
competitiveness compared to other retailers in Erode. The Style check store is fully a private
label brand will be keen in attaining good profit margin at the same time giving reasonable
price to the customers. Men’s apparel is changing towards high market share all over India.
The Store will be a “Cost-Leadership” store in Erode.
CHAPTER 10
10.1 WHY BRAND?
A brand is the identity of a specific product, service, or business. A brand can take
many forms, including a name, sign, symbol, colour or slogan. A legally protected brand
name is called a trademark. The word brand has continued to evolve to encompass identity
it affects the personality of a product, company or service.
10.2 BRAND NAME, LOGO, TAGLINE – SELECTION AND DECISION PROCESS:The branding process is a most important part of a any retail store; The following are
the various processes that I had been under taken to bring a unique brand name to my
store:
10.3 BRAND NAME SURVEY:This is the first process that I had done in the branding, selecting a name to my store.
This store is going to be a complete Men store having both casual, formal wear and
accessories. I had listed ten names and done a survey for the selection. The following are
the ten names:
Perfect Men
New
Fly street
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My Dress
Out fit
In style
Smart
Style check
Take- it
The sample size that I had taken was 50. The survey had been taken for the selection
process of my brand name in my home town Erode.
SURVEY RESULTS:
20%
10%
4%
16%8%
2%
28%
12%
SELECTION OF BRAND NAME
Perfect MenNewFly streetOut fitIn styleSmartStyle checkTake-it
These survey had been done through Online, direct questionnaire to my friends and
relatives my home town and few where done through phone calls. From this survey for
brand name to my store, most of them said that the brand name “Style check” will be a
unique name to my home town as most preferred and they said it’s like testing the quality
of the style. It got 28% as the highest by all and other than that names which been listed in
the survey like perfect men, outfit and new had got a decent numbers in the survey. So
would go for the majority as said “style check” as my brand name for my store in Erode.
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10.4 DESIGNING LOGO FOR MY BRAND:Designing the logo involves a little time because as chosen by the respondents that
the brand style check should have to be a unique name in the Erode. It’s a complete Men’s
store so that the brand logo should resemble men in it. During the designing process I am
keen in giving a character to it. Three questions that came into my mind 1) who he is? 2)
What he is? Why he is? The answer for this three question is he is Men, he is a King, and he
is to Protect. I am very confident in designing a strong and unique logo to my store.
10.5 LOGO FOR THE STYLE CHECK BRAND:
This is my store’s logo. This logo has a story to it. The logo shows the warrior with ‘S’ like a
feather and ‘C’ like king’s crown and the king is ready to defence his castle i.e. store “style
check” with the Endless style i.e., soldiers.
10.6 TYPE OF BRAND:The “Style check” is going to be a product brand that offers line of merchandise for
Men in categories like Apparels and Accessories.
10.7 BRANDING STRATEGY:
The strategy of the “Style check” is to build a strong brand name in the market with
the latest designs and collections. This brand will provide an endless style at the competitive
price in the Erode market. This brand will be a private label in the market its stands for the
quality, design that will be unique to place, these are the strategies that I will be adapting to
my brand.
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10.8 BRAND IDENTITY AND IMAGERY:
The brand Style check will have more collections at an affordable price. The brands
will be identified as complete shopping destination for Men in Erode.
10.9 BRAND IMAGE:
The image of the brand represents its symbol, colour, and tagline telling that
provides endless style for Men.
10.10BRANDING CONCEPTS:
10.10.1BRAND VISION:
The brand “Style Check” vision is to consistently deliver more collections of
merchandise at an affordable price.
10.10.2 BRAND EQUITY:
The brand “Style Check” logo shows uniqueness to the brand. It shows the the brand
is for and how it is differentiated from its competitors in the market. The logo stands for its
Quality, Design, Style and the perception will be like a king who is defending his kingdom
likewise the store ‘Style Check’ will be attaining its growth towards defending its
competitors.
10.10.3 BRAND PERSONALITY:
The brand gives the characteristic of a style Men. It resembles
actor “Surya” who is keep on changing the style in each and every film.
His character will be suited to the store because this store will keep
changing the style according to the fashion and trend as like actor Surya
goes in each
film.
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10.10.4 BRAND PERSONIFICATION:
The brand ‘Style Check’ will consistently deliver variety of style, fits, and collections
to its customers. The character of the brand is associated with the Indian captain Dhoni,
who is consistently scoring runs whenever the team India needed to win the match.
10.10.5 BRAND ESSENCE:
The brand Style check represents will give “Endless style” to men. It is the single
most essence of the brand.
10.10.6 BRAND SOUL:
The brand “style check” had a two character to it. One is first phrase ‘Style” gives the
new look to the youngsters, who are more outgoing and youthful, and the second phrase
“Check” gives the Formal look for a profession who has a family and have lot of
responsibilities.
10.10.7 BRAND CHARACTER:
The brand will serve poor people by setting a yearly promotion and giving money to
the physically disabled people. The internal constitution of the brand stands for its honesty
and tendency to help the nation.
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10.10.8 BRAND PROMISE:
As it is mentioned in its tagline saying that “Endless style”, the brand will be keen in
giving reasonable price to its customers with attractive design elements added to it.
10.10.9 EXPERIENCE:
The overall experience of the brand tells that, it is a brand which will have more
style, variety in its collection for the youngsters and men.
10.10.10 STORY:
The brand has a story to it. The king is defending his kingdom with strong castle and
endless soldiers to get victory
10.11 MOTIVATORS & DISCRIMINATORS:
The motivators of the Style Check brand will be Men’s apparels it is an main pull
factors to the brand.
The Discriminator will be its Designs, and Endless collections.
The Discriminators of Style check store is its Unique design in some times it will
become pull factor for the store, on the way in which customers will tend to accept
the design as motivators.
10.12 MOP:
MATRIX OF PARAMETERS
Competitors Customer
service
Store
VM
Price Product
range
Product
quality
Location
Peter England Yes Yes Yes Yes Yes Yes
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Derby No NO No No Yes Yes
Sting No No No No Yes Yes
Jansons Yes NO Yes Yes No Yes
All times Yes No Yes No No Yes
Mothi Yes No No Yes Yes Yes
Planet fashion Yes Yes No Yes Yes Yes
Prince
collection
No No No Yes Yes Yes
Mega mart Yes No Yes Yes No Yes
10.13 PERPETUAL MAPPING: (Store Experience)
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Planet fashion Peter England
Prince collection Derby
Sting
Mothi (High Brand Equity)
Jansons
All times
Mega Mart
10.14 EXTENTIONS – LINE & BRAND PLAN:
The Brand style Check is a complete Men’s wear brand; the brand has Casual wear,
Formal wear and Accessories. The Brand has only little product line in future it may extends
in Line towards “Foot wear” segment based on the customer’s feedback.
CHAPTER 11
11.1 FINANCIAL PLAN:Every retail store should seek through financial accounting before they start-up the
project, the financial accounting are the backbone of the every retail organization. The Store
Style Check in Erode will had undergone the financial requirements that are required to
start-up a new Fashion retail store in Erode, the following are the financial plan and the
projections given below:
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11.2 FIXED CAPITAL AND WORKING CAPITAL REQUIREMENTS:
"Fixed" capital and "revolving" capital are almost self-explanatory. The "fixed" capital
is invested in the plant, equipment, and other forms which cannot be disposed of without
breaking up the business. The "revolving" capital is invested in raw materials, in stocks of
partly finished and finished products, in accounts receivable, in salable securities, and in
cash. Capital in all these forms is constantly being converted - after whatever alterations in
form are necessary - into cash, and these cash flows out again in exchange for other forms
of working capital. Thus, it is constantly revolving; or, to use a more common expression, it
is being "turned over".
Working capital is not the same as fixed capital. Actually, working capital has
different features. Working capital is used to obtain current assets which will turn into cash
in a short period. Fixed capital, however, makes reference to the funds that are locked in
long term assets. The duration of the working capital depends on the length of production
process, the time it takes to sell the product and the time you have to wait in order to
receive the cash. Another characteristic of working capital is that is turned into cash, and
again into working capital all the time. Working capital is always needed, even when it is a
short term capital. The requirement of working capital varies directly with the level of
production. A difference between working and fixed capital is that working capital is more
liquid. Fixed capital is invested in long term assets so it is necessary to adopt various systems
of estimating depreciation. But, with working capital it is not necessary to adopt special
accounting system for them.
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11.3 PROJECTED INCOME AND EXPENSES STATEMENT (P&L) – 5 YEARS (ATTACHED IN THE EXCEL SHEET)
Income statement is a company's financial statement that indicates how the revenue
(money received from the sale of products and services before expenses are taken out, also
known as the "top line") is transformed into the net income (the result after all revenues
and expenses have been accounted for, also known as the "bottom line"). It displays the
revenues recognized for a specific period, and the cost and expenses charged against these
revenues, including write-offs (e.g., depreciation and amortization of various assets) and
taxes. The purpose of the income statement is to show managers and investors whether the
company made or lost money during the period being reported.
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Capital Expenses Operating Expenses
Celling Opening Inventory 736243A/CLighting AdvertisementPainting CatlogTiles+Wages Opening ExpensesTotal Building 700000 Total Marketing Expenses 700000
fixtures Price Tag & Gun 20000Mannequinswindow Display Stationary 2000Footagesingages Contengengy expenses (round off) 25000PostersCash DeskfurnituresTotal Fixtures 800000
ComputersTele phonesSoftware & ITScannerBillingTotal Equipments 300000
Rent Advance 360000
Total 2160000 747000Total opex & Capex 2907000
The important thing to remember about an income statement is that it represents a
period of time. This contrasts with the balance sheet, which represents a single moment in
time.
PROJECTED FIVE YEAR BALANCE SHEET OF THE STYLE CHECK STORE
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PROFIT & LOSS STATEMENT
Annual Sales 35,58,750 39,14,625 43,06,088 47,36,696 52,10,366 Cost of Goods Sold (100 - 51) 18,14,963 51% 19,96,459 51% 21,96,105 51% 24,15,715 51% 26,57,287 51%Gross Profit % 17,43,788 49% 19,18,166 49% 21,09,983 49% 23,20,981 49% 25,53,079 49%
Rent 288000 8.09% 288000 7.36% 288000 6.69% 300000 6.33% 300000 5.76%Transportation 8000 0.22% 10000 0.26% 12000 0.28% 14000 0.30% 14000 0.27%DD comission 50000 1.40% 50000 1.28% 50000 1.16% 50000 1.06% 50000 0.96%
Eletricity bill 150000 4.21% 150000 3.83% 160000 3.72% 170000 3.59% 170000 3.26%
Salary 533812 15.00% 540000 13.79% 550000 12.77% 560000 11.82% 560000 10.75%
Stationary 8000 0.22% 10000 0.26% 12000 0.28% 13000 0.27% 13000 0.25%
Snack Allowance for staffs & Miscellanious 25000 0.70% 30000 0.77% 35000 0.81% 37000 0.78% 40000 0.77%
Water 25000 0.70% 25000 0.64% 26000 0.60% 27000 0.57% 27500 0.53%
Marketing Expenses 142750 4.01% 142750 3.65% 140000 3.25% 132750 2.80% 132750 2.55%
Interest 284700 8.00% 284700 7.27% 284700 6.61% 284700 6.01% 284700 5.46%
Capital Interest 177937 5.00% 177937 4.55% 177937 4.13% 177937 3.76% 177937 3.42%
Telephone & Internet 15000 0.42% 15000 0.38% 15000 0.35% 16000 0.34% 16000 0.31%
Postage 2000 0.06% 2400 0.06% 2500 0.06% 2550 0.05% 2550 0.05%
Insurance 30000 0.84% 30000 0.77% 30000 0.70% 30000 0.63% 30000 0.58%
Total Expenses 17,40,199 48.90% 1755787 44.10% 1783137 41.41% 1814937 38.32% 1818437 35.34%
Net profit 3,589 0.10% 1,62,379 4% 3,26,846 7.59% 5,06,044 11% 7,34,642 14.10%
year 1 Year 2 Year3 Year 4 Year 5
11.4 PROJECTED BALANCE SHEET – 5 YEARS (ATTACHED IN THE EXCEL SHEET)
In financial accounting, a balance sheet or statement of financial position is a summary of
the financial balances of a sole proprietorship, a business partnership or a company. Assets,
liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A
balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic
financial statements, the balance sheet is the only statement which applies to a single point in time
of a business' calendar year.
`A standard company balance sheet has three parts: assets, liabilities and ownership equity.
The main categories of assets are usually listed first, and typically in order of liquidity.[2] Assets are
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PROJECTED BALANCE SHEET FOR 5 YEARSYear 1 Year 2 Year 3 year 4 Year 5
Laibility
Capital 1200000 1200000 1200000 1200000 1200000
Loan 1800000 1800000 1800000 1800000 1800000
Net Loss/Profit 3,589 162379 3,26,846 5,06,044 734642
current Laibility
Creditors 296563 508601 507544 1204071 1137628
Total 33,00,151 36,70,980 33,26,846 48,14,937 48,18,437
Asset
Rennovation on Building 700000 630000 567000 510300 459270
Fixtures 800000 720000 648000 583200 524880
Office Equipments 300000 270000 243000 218700 196830
Rent Advance 360000 324000 291600 262440 236196
Current Asset
Cash ( 2 days Avg sales) 19400 60353 168647 249647 337802
Bank 2,96,652 508601 393511 582508 788204
Stock 593125 1017201 1015088 2408142 2275255
Total 30,69,177 35,30,155 33,26,846 48,14,937 48,18,437
followed by the liabilities. The difference between the assets and the liabilities is known as equity or
the net assets or the net worth or capital of the company and according to the accounting equation,
net worth must equal assets minus liabilities
In this project the balance sheet has been projected for 5 years as business grow year by
year. The projected balance sheet shows Current assets and current liabilities of the Store Style
Check.
11.5 RATIOS:Accounting Ratios are relationships expressed in arithmetical terms, between figures which
have a cause and effect relationship, or which are connected with each other in some other manner/
Advantages of Ratio Analysis:
It helps to analyze and understand the financial health and trend of the business.
Its past performance makes its possible to forecast the future state of affairs of the business.
They diagnose the financial health by evaluating liquidity, solvency, profitability etc.
It helps to assess the financial requirements of the business.
It is an excellent tool for control of expenses.
It plays significant role in cost accounting, financial accounting, budgetary control and
auditing.
It helps to fix the responsibilities of managerial personnel at various levels.
11.6 ROI: A performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. To calculate ROI, the benefit
(return) of an investment is divided by the cost of the investment; the result is expressed as
a percentage or a ratio.
11.7 ROE:The amount of net income returned as a percentage of shareholders equity. Return
on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
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11.8 STRATEGIC PROFIT MODEL:The Strategic Profit Model gives a visual view of an organization's finances and
provides the ability to understand and analyze financial performance and return on
investment (ROI). The tool provides visibility to the inter-relationship between the three
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Current Ratio Current Asset Current Liability Current RatioCurrent Asset/Current Liability 33,00,151 30,69,177 1.07Quick Ratio Cash&Bank Current Liability Quick RatioCash&Bank /Current Liability 316052 3300151 0.10Turnover Ratio Net sales Total Asset Turnover RatioNet Sales/Toatal Assets 3558750 1743788 1.50Gross Margin % Gross Margin Net Sales GM%GM/Net Sales 1743788 3558750 49%Net Profit % Net Profit Net Sales NP%Net Profit / Net Sales 3,589 3558750 0.10%Return on Inversment Net Profit Capital ROINet Profit/Capital 3589 3000000 0.11Return on equity Owner's Capital Net Profit ROEOwner's Capital/Net Profit 1200000 3,589 334.30
Sales % of Each Department
Deapartment Mens CasualSales % 35%Sales 1245563Sub Department Top Bottom% of Sales 21.00% 14.00%
Shirt T-Shirt Trouser Denim14.70% 6.30% 8.40% 5.60%
Deapartment Mens Formal Sales % 55%Sales % 1957313Sub Department Top Bottom% of Sales 38.50% 16.50%
Shirt Trouser26.95% 6.60%
Deapartment Mens AccessoriesSales % 10%Sales 355875Sub Department Belt Cap Tie Key Chains Tatoos% of Sales 7.50% 1.00% 0.50% 0.50% 0.50%
major categories that contribute to ROI: Margins, Asset Utilization and Capitalization
through combinations of debt and equity.
CHAPTER 12
12.1 MARKET RESEARCH:This project is done with the substantial market survey. The survey has been done in the
Erode city in Engineering colleges, Banks and Firms. The survey is done for 50 respondents. The
respondents that where on Men with age group ranges from 18-45. The following are the list of
surveys results.
38%
62%
PREFERENCE OVER BRANDED WEAR VERSUS UN-BRANDED WEAR IN ERODE FOR MEN
Branded Un branded
TABLE 1
In Erode people prefer more unbranded than the branded wear because they are not
exposed to branded and the main thing is that they will go for unbranded because of price less.
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42%
26%
14%
18%
PREFERNCE IN CHOOSINGPRICE QUALITY PRODUCT STYLE
TABLE 2
The survey shows people in Erode are looking for price as well as quality because they are
more conservative. Few youngsters where telling that they will go for style rather looking
for price or quality.
TABLE 3
300 -40038%
400 - 50042%
500 - 60012%
600 and above8%
AFFORDABLE PRICE RANGE FOR MEN'S APPAREL
The above table shows that people prefer the prices that will be ranging from Rs.300 – 500 for the Men garments in Erode. They are looking for price less merchandise.
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31%
22%14%
24%
10%
SHOP PREFERENCEAll times Jansons MothiBeyond collectiions Peter england
TABLE 4
The survey results shows the competitors for the Style check will be All times,
Jansons and beyond collections as they are pricing lower and few youngsters where going
for beyond collections because they are targeting youngsters with more styles.
46%
26%
22%
6%
LOCATION PREFERENCEBrough road Perundurai road Mani koondu Collector office
TABLE 5
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From this survey the location Brough road has been voted high when compared to
the other location people prefer over purchasing in this location because the brough road is
giving good shopping experience over a period of time in Erode city.
The overall survey results shows that the Men are looking for quality, price these
two stands at the stop and few where looking for some designs and style elements. The
Store Style Check will be fulfilling the customer requirements and stands best in the Erode
among the Men.
CHAPTER 13
13. CONCLUSION:From this project the proprietor likes to conclude that this project may fulfill all its
requirements for starting up a new fashion retail business. The project will be indisputably
catching the Minds of the Men crowd. There may some changes that will happen in the
project according to the market, but the base will remain same, soon this project will be
implemented with the proper guidelines from the expertise.
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14. BIBLIOGRAPHY:Donnellan, J. Merchandise buying and Management.
Erode. (2010, May). Retrieved Dec 2, 2010, from Wikepedia: http://www.erode_wikipedia.com
K.M.Miler, J. R. Concepts and cases in retail and merchandise management .
PEST ANALYSIS. (2010, June). Retrieved Dec 1, 2010, from Quick MBA Strategic Management: http://www.pestanalysis.htm
pintel, J. a. Retail Buying Fifth edition.
Value Based management . (2007, 11 Sunday). Retrieved Dec 3, 2010, from http://www.valuebasedmanagement.net/methods_bcgmatrix.html
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APPENDIX
Preference over Apparels?
Branded Unbranded
Preference in choosing?
Price product quality Style
Price Range for Men’s Apparel?
300 – 400 400 – 500 500 – 600 600 and above
Shop Preference?
All times Jansons Mothi beyond Collection Peter England
Location Preference for shopping?
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