A PROJECT REPORT ON A STUDY OF MARKETING AND PRICING STRATEGY WITH REFRENCE TO MEGAMART.

SUBMITTED TO THE UNIVERSITY OF PUNE FOR THE PARTIAL FULLFILLMENT OF THE DEGREE BACHELOR OF BUSINESS ADMINISTRATION

YEAR 2010-2011

CERTIFICATE

Date: 24/03/2011

1. INTRODUCTION

SCOPE OF THE PROJECT

The purpose of this project is to acquaint with marketing and different management functions. The center of this study is marketing function as well as approach of Mega mart towards its customers. The main objective behind this study is to find the sales and marketing tools of Mega mart.

This project offered an opportunity to get real-time and firsthand experience of field work. This study also helped to gain knowledge about the different departments and their working and working of the organization as a whole.

This study provided an opportunity to get the real work experience and also taught to deal with business obstacle And difficulties. This experience has helped improve my academic and business skills. to

2. OBJECTIVES

2. OBJECTIVES OF MY STUDY ARE AS FOLLOW:

To study the working of Mega mart

To study the marketing strategy of Mega mart

To study the pricing strategy of Mega mart

To study advertisement policies of Mega mart.

To study the buying process of Mega mart.

To study the various functions of Mega mart.

3. PROJECT METHODOLOGY

3. PROJECT METHODOLOGY

Project methodology is the process of collecting the information and helps to find out solution to the topic selected by the researcher. Project methodology starts with selection of topic which shows the introduction of the students.

have selected the topic of "A STUDY OF MARKETING AND PRICING STRATEGY OF MEGAMART". For preparation of project generally four methods are followed:

1. 2. 3. 4.

Interview: Questionnaire: Library Work and Internet: The observation method:

Collection of Data

Primary

Secondary

Information

Surveys from customers

Internet

Reference books

4. CONCEPTS

4.1 MARKETING

The concept of marketing has evolved from a simple exchange transaction to a complex and complicated one, involving a number of interconnected and interrelated variables. The earlier definitions of marketing emphasized the flow of goods from the seller to the buyer. In this traditional sense Marketing is said to consist of such efforts as effect the transfer in ownership of goods and physical distribution. The emphasis was later shifted to an economic approach. Economists stressed upon utilities and interpreted marketing as a creator of time, place and possession utilities. In the subsequent stages the emphasis was once again shifted to the customer.

Marketing today is so basic that it can oriented be considered as a separate function. It is really the whole business as seen from the point of view of the final result i.e. from the point of view of the customer. The latest definition of marketing can be given as Marketing is the creation and delivery of a standard of living to society. The marketing philosophy has undergone a gradual thorough change since the industrial revolution. This change in the philosophy of marketing can be compartmentalized into four stages of marketing. the first two are the traditional concept and the last two are the new concept of marketing.

Product oriented marketing Sales oriented marketing Consumer oriented marketing Socially oriented marketing.

In

this modern age of information coupled with globalization and increased awareness, marketing has become highly challenging and at the same time seems to offer wider and greater opportunities, not only at the local and national level but also internationally. To cope with these modern developments and trends, marketing can become more effective and result oriented with the use of proper connectivity with the right market connections, segments and people-the consumers and now the global consumers have access to everything through the net and its portals. But marketing and advertising through the internet is yet to blossom to its full capacity in India. In the mean time, a conceptual understanding and familiarization in the techniques of expanding connectivity through mass communication specially what we can as marketing is the need of the hour.

4.2 PRICING

There are a good many variables affecting the price of a product namely its nature, nature of the market, cost of manufacture, cost of marketing, sales policies and methods, channels of distribution and competitors prices. The basic price variables relate to: The pricing policies, terms of credit, and resale price maintenance.

Pricing policies and strategies:

The price policies and strategies are the guidelines and frames within which management adjusts pricing so as to match the market needs. Giving various types of discounts is one of the pricing policies used by companies to attract buyers or to meet competitive pressures. Discounts: Discount is the price difference that reduces the quoted price so that the buyer pays much less than the quoted price. Discounts are the reductions from the price list given by a seller to a buyer, who either gives up some marketing functions or provides the functions himself. In deciding the discount policies the marketer has to carefully find out exactly which function the buyer is giving up or providing when he gets each of the following discounts. The need and importance of a proper pricing strategy arises because of following reasons:

Price is essential to marketing, Price allocates resources, Price regulates demand, Price is a competitive weapon, Price is a determinant of profitability.

5. COMPANY

5A. ARVIND MILLS

5A.1 ENRICHING LIFESTYLES Styles may be short lived, but for well over seven decades Arvind has been defining and shaping many a collection and trendsetting styles across the ramps and retail outlets of the fashion capitals of the world. Arvind is today synonymous with a vast range of lifestyles products - be it fabrics or brands. Time and again we have been called to produce some of the finest fabrics and exacting dresses for some of

the world's most quality conscious brands - while evolving our own extensive brand portfolio. Arvind Mills is India's largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, GANT US Polo & Cherokee. JV's with VF Corporation with brand portfolio of Lee, Wrangler, Nautica, Jansport, Kipling, and Hero by Wrangler & Lee Riders, Tommy Hilfiger and most recently a JV with Diesel. In addition Arvind also owns a number of successful Indian brands: Flying Machine, Newport and Excalibur among others. Arvind also own & operates India's largest 120 outlet strong value retail chain under the name 'Megamart'.

5A.2 The Evolution

1930 was a year the world suffered a traumatic depression. Companies across the globe began closing down. Mahatma Gandhi at this time championed the Swadeshi Movement and at his call, people from all India began boycotting fine and superfine fabrics, which had so far been imported from England. In the midst of this depression one family saw opportunity. The Lalbhais exploited this opportunity by studying & understanding the demand for fine and superfine fabrics. And any Indian company that met this demand would surely prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to put up a mill to produce this superfine fabric. Next they looked around for state-of-the-art machinery that could produce such high quality fabric. Their search ended in England. The best technology of that time was

acquired at a most attractive price. And a company called Arvind Limited was born. Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. The sales in the year 1934, three years after establishment were Rs 45.76 lakh and profits were Rs 2.82 lakh. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country. The national focus paved way for international focus and Arvinds markets shifted from domestic to global, a market that expected and accepted only quality goods in 1987-88. Year 2005 was a watershed year for textiles. With the muliti-fiber agreement getting phased out and the disbanding of quotas, international textile trade was poised for a quantum leap. In the domestic market too, the rationalizing of the cenvat chain and the growth of the organized retail industry was likely to make textiles and apparel see an explosive growth. Arvind has carved out an aggressive strategy to verticalize its current operations by setting up world-scale garmenting facilities and offering a one-stop shop service, by offering garment packages to its international and domestic customers.

5A.3 POLICY

At

Arvind, it is firmly believed that a successful company must play an active role in the development of the society from which it springs. Besides pursuing its business goals, it should also be responsible corporate citizen. It is because of these beliefs that Arvind is always on the forefront of extending a helping hand for the needy, downtrodden and for the society at large. has always been actively involved in the educational institution, hospitals and research institutions of Ahmedabad, its hometown. It copioneered the world renowned Indian Institute of Management, Ahmedabad (IIMA), and helped set up the Ahmedabad Textile Industry Research Association (ATIRA), and The Kasturbhai Lalbhai Textile Training Center to develop and enhance the skills of textile workers. The Narottambhai Lalbhai Rural Development Fund and The Lalbhai Group Rural Development Fund where founded to undertake special programs for the economically deprived. It also assists the nearby villages, through nutritional programs, food camps and the harnessing of solar energy.

Arvind

5B. MEGAMART
The retail space is buzzing, and so its time for some reforms in traditional retailing concepts. Megamart is one of the Retailing concepts of modern Business world. Arvind mills planned to enter in retail market with an objective to present across the entire spectrum - value retail, to premium retail to luxury retail. Thus with all plans they launched Megamart which is their first leg of retail expansion.

Megamart, an emerging value retailing and the retail arm of Indias largest integrated textile manufacturer and a leading branded apparel &

retailer is launched by Arvind mills limited on 14 DEC 1994 at Maladevapura, Bengluru. From than Megamart now have 120 stores all around India within 71 cities.

A Pioneer in the value retail business, Megamart comes with a rich Arvind Heritage, a name held in high esteem among India's fashion and retail circles. Over the last 15 years Megamart has emerged as a strong chain of 120 stores across 71cities offering many Big Brands like Arrow, Lee, Wrangler, Flying Machine, Ruggers, Excalibur,Cherokee etc at big Discounts.Its profit figures have become the industry benchmark. Megamart a chain of retailing stores launched way back has successfully grown into a full service marketing & research agency noted for its flexible approach and quick response to client requirements. Megamart is a company committed to serving and addressing the needs of our customers in the most professional manner possible. Our professionalism stems from our team of highly qualified staff which has the right blend of a strong academic background coupled with an equally powerful wealth of practical experience. Together we are dedicated to satisfying clients' needs. Megamart plans to establish 500 small and large format stores across the country - out of which 20 to 25 will be Megamart Outlet Centres in top 20 cities over the next 3 to 4 years at an investment of about US$ 100 million Megamart store will be one of the largest value malls in the country. Keeping in mind Indias value conscious and discerning consumers Megamart is happy to dedicate their third Outlet Centre to the people of Bangalore. Megamarts already have 23 stores in Bangalore and 120 stores across the

country (with an area of 2,000 to 4,000 sq ft) Megamart also has a very unique concept called The Marketplace. At the Marketplace the consumer is sure to find the best deals and the cheapest branded products and accessories in the city. Aimed at bringing together a great combination of international shopping experience at value prices along with ambiences at par with some of the best retail chains of the world, the Megamart Outlet Centre is all set to be a complete delight for its customers.

6. SECTORS
Megamart is divided in two sectors: Megamart outlet center ( mall ) Megamart stores Both having same objective of retailing Megamart outlet center ( mall ) :

Megamart outlet center is a mall like concept which includes many things like men women and kids wear, accessories, luggage, footwear, mobiles, food courts, entertainment centers, play station. Etc With all men & women wear consisting of more than 150 brands. Megamart outlet centers up till date have been introduced only in three cities viz. Chennai, Bangalore and Pune. Megamart has launched its outlet centers in 3 cities viz. Chennai, Bangalore and Pune, whereas it is planning to launch around 10 such outlet centers

on different cities November 2009.

of

India

by

the

end

of

Megamart stores : Megamart stores are nothing but just a store small enough in comparison with Megamart outlet center. Megamart stores include items like clothing for both men and women, clothing accessories like wallets, socks, belts etc, mobiles, simcards etc. Megamart stores have around 30 40 brands and are small in comparision with Megamart outlet centers. Megamart stores have been introduced in over 42 cities of India with around 120 stores.

MEGAMART OUTLET CENTRE

Arvind Mills, a pioneer in value-based retail space, launched the country's first savings mall 'Megamart Outlet Centre' at chennai, and would be opening 30 such large outlets and 200 small outlets to achieve a targeted turnover of one billion Dollars by 2012, With outlet centres already opened in Bangalore and Pune. The Chennai store is the largest value mall in the city. Keeping in mind Chennai's value conscious and discerning consumer MEGAMART is very happy to dedicate their first outlet centre store to the people of Chennai. MEGAMART already have 12 stores in Tamil Nadu, of which seven of Megamart stores are in Chennai. Megama

rt Outlet Centre will offer fantastic value across a range of categories across the year. And that too with international standard shopping experience and service. The store has been designed by JHP, an award winning design consultancy firm from London Over a period of time Megamart was is discussion with several of the top brands in the country and is happy to announce that over 130 brands have partnered with it. The Megamart Outlet Centre will house a gamut of categories including men women and kids wear, accessories, luggage, footwear etc. from leading brands such as Allen Solly, Addidas, Arrow, Citizen, Color Plus, Dockers, Titan, Giodorno, Indian Terrain, Lee, Levis, LouisPhillipe, Nike, Park Avenue, Reebok, Scullers, Van Heusen, Wrangler and several other brands will be available at the Megamart Outlet Centre, all of which will be available at unbelievable value prices. Apart from these, the Outlet Centre also has a multicuisine food court St. March, Caf Coffee Day, a Marketplace and several other value-added services like a kids play area, a mama's corner, services for utility payments among many others. Aimed at bringing together a great combination of international shopping experience at value prices along with ambiences at par with some of the best retail chains of the world, the Megamart Outlet Centre is set to prove itself to be a complete delight for the Chennai customers.

MEGAMART STORES NASHIK

Megamart is a pioneer in value retailing and the retail arm of Indias largest integrated textile manufacturer and a leading branded apparel &

retailer. Megamart belongs to Arvind mills Ltd. Before coming up with an outlet in NASHIK they have established themselves in the many other Indian cities, namely, Chennai, Pune, Bangalore, Chandigarh, Aurangabad, Ghaziabad, Jaipur, Bhopal etc. Megamart has a network of 120 Megamart stores spread across 71 cities in India. The store with 8 employees is really big! Spread across 2 floors with an area of 3,200 sq ft of retail space. This outlet certainly has the widest range of categories including men, women and kids wear, accessories, electronics, mobiles, simcards and lot more. I learned from the store info guide that the premises has over 35 top Indian and international brands to delight the customers. Some of the prominent brands I could spot in this outlet include like Allen Solly, Arrow, Color Plus, Dockers, Ruggers, Auburn hills, Lee, Levis, Louis Phillipe, Park Avenue, Excalibur, Van Heusen, Wrangler, Flying machine, Newport and many more international brands with Karigari and Cherokee introduced recently at unbelievable prices and offers. As the mall has its strategy, they offer mega discounts for all festivals and through out the year. These discounts are certainly crazy and goes on from offers like buy 1 get 1 free on most of the jeans wear to buy 5 get 5 free on branded clothes of Newport, flying machine etc. With over 35 of the best brands on fabulous discounts, the new Megamart Outlet Centre is all set to completely delight the trendy and value conscious Indian customers.

Megamart is also running fantastic festival offers across the week and other fabulous purchase based freebies like a free Cherokee watch, an attractive Ruggers travel bag and also a chance to win a Maruti Swift.

7. MEGAMART PRODUCTS:

SPECIALITIES:
MEN COLLECTION: Silk Collection,

Formal

Shirt Collection,

T-shirts, Jeans,

Track suits, Kurtas, Jackets, Sweaters Apparels and Accessories Collection : Wallets, Socks, Handkerchiefs, Perfumes. WOMEN COLLECTION: Fashion Collection: Jeans, Tops, T-shirts, Track suits, Traditional Collection: Chaniya Choli Collection, Dress Salwar Material Collection, Kameez Collection,

Latest

Saree Collection

Fashion Saree Collection Silk Saree Collection

Georgette Saree Collection Chiffon Crepe Saree Collection Saree Collection

Apparels and Accessories Collection: Wallets, Socks, Handkerchiefs, Cosmetics, Perfumes.

Other items: Bed sheets, Pillow, Pillow covers

SAREES: .

BRANDS
Arvind is amongst a few organizations worldwide with a portfolio of brands that are distinctive and relevant across diverse consumers. At Arvind, brands work across multiple channels, price points and consumer segments.

Own Brands Mainstream Exca libu r Flyi ng Mac hine Popu lar Ruff & Tuff New Port Univ ersit y Licensed Bran ds Bridge to Luxu ry Gan t, U.S. A. 194 9 Hart Shaf fner Mar x Prem ium USP A San saB elt Izod Pier Car din Pari s Arro w Popu lar Che roke e

Joint Venture Brands Bridge to Luxury Tommy Hilfiger Nautica Premium Lee Wrangler Popular Wrangler Hero Riders

8. MARKETING STRATEGY:

8.1 PUBLICITY:

Publicity is the need of the hour. Publicity is considered as one of the most important factor for making any company highlighted in the minds of general public. Publicity is a means of promoting the mass market & is similar to advertising, except that, it is free e.g. News release, Photographs & Feature Stories. Every company tries to gain momentum by doing some publicity for itself which positively helps to increase the business for company.

Megamart also many a times does some publicity for launching any of its outlet centers/stores to highlight it in the minds of general public. Megamart has launched its Pune outlet center with the beautiful hands of Ex Miss India Neha dhupia. The new look store; offers customers a bigger and better value shopping experience. With over 150 best brands spread across 55,000 sq ft of retail space, Megamart will delight its customers with its proposition of mega discounts throughout the year. Ms. Dhupia also flagged off the Mega Savings bus which will ply at all

important routes around Pune to pick up and drop customers wanting to shop at the Outlet resulting in significant savings in time and fuel costs for customers. This is for the first time that Megamart has started this unique initiative for the benefit of its customers.

Megamart also uses publicity like:

other

formats

of

Publicity through window display,

Outdoor publicity,

Publicity literature through use of circulars, coupons, folders etc.

Publicity through interior display.

Sponsorships.

Smart cards.

8.2 ADVERTISEMENT STRATEGY:

Advertising is defined as Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. Advertising is the powerful element of the promotion mix. Advertising though impersonal in character creates profound influence in persuading

prospects to become customers. Essentially advertising means spreading of information. Megamart is very concerned about its advertisement policies. It properly plans its advertisement policies and revises it time to time according to the conditions and need of market. Megamarts market share is pretty high in south regions like Karnataka, Tamilnadu etc whereas it is less in central and northern states of India in relation to southern states, so Megamart spends more on advertisement in southern parts as compare to other parts through different means of advertisement.

The various means of advertisement used by Megamart are as follows:

Television advertisement: Megamart uses television format of advertisement mostly in southern states and selected parts of the country as they are the most costly form of advertisement. Megamart gives the advertisement of its outlet center/stores mainly in local television channels or regional channels to catch its customers. However Megamart does not much concentrates on television advertisement; it uses it only for a limited range.

Newspaper advertisement: Megamart uses newspaper format of advertisement but that too on a limited scope with equivalent amount with that of Telivision advertisement. Megamart presents its advertisement on newspapers mainly in southern states and few important other cities around India. As newspaper advertisement are less expensive than that of television they are more affordable.

Radio advertisement: Radio advertisements are also one of the kind of advertisement Megamart concentrates on. They give radio advertisements mainly in southern parts of the country and a few times in important cities but on a limited note.

90 80 70 60 50 40 30 20 10 0

E t as Wes t North

1s Qtr t

2ndQtr

3rdQtr

4thQtr

SMS service: Megamart concentrates highly on this format of advertisement. SMS services are one of the cheapest forms of advertisement and ultimately the most effective. Megamart through SMS directly reaches to every customer. Megamart through SMS gives its customers updates about new arrivals, discounts, season sale, bumper offer etc. SMS department of Megamart is located in Bangalore and all the SMS are sended from Bangalore through computerized system. Whenever a customer arrives in Megamart the authorities of Megamart takes his/her details, suggestions and contact number and then they keep in touch with him through SMS services, this facility thus pleases every one. Megamart thus uses this advertisement form on a large scale.

Carry bags: Carry bags are the cheapest and one of the most effective forms of advertisement. Almost every clothing company/stores uses this format of advertisement and same is the case with Megamart. Whenever

any purchase is made in stores it is mandatory on the part of the authorities of stores to give the customer a polythene/carry bags to carry the articles home. So many cloth stores exploit this opportunity by providing customers with attractive polythene/carry bags with the name and logo of their shop/company so that it makes a mark on the minds of customers about the shop/company. Megamart also provides its customers with attractive big size red bags with Megamart as the name and its logo MM on it.

SMART ONE

- Indias first saving and earning program. Megamart has introduced the concept of smart one - Indias first saving and earning program, as a membership program to increase the sales by targeting those customers who shop very often. This unique rewards program helps a customer to earn points each time he shops at Megamart. Thats not all; the customer who avails the membership of Megamart by the smart one program becomes the first to know about the special offers, promos, previews and many other exciting shopping opportunities at Megamart. This program keeps track of points as well as the customers saving through the SMARTONE CARD. This card can be used by the entire family of the customer.

BENEFITS OF SMARTONE CARD: Earn points on every purchase, Exclusive preview of new introductions Smart deals and offers Exciting gifts on reaching milestones.

SmartOne Indias first shopping and saving card. A unique loyalty program that helps you saves more as you shop.

9. FUNCTIONS OF MEGAMART:

Following is a briefed introduction of the specialized services offered by Megamart

Sales function:
Sales are undoubtly the reason behind every business. So sales function is considered as the most important function for every business. The authorities of Megamart are very concerned about the sales of Megamart. Sales function is given

utmost priority in Megamart and it is never considerd as secondary function. The employees in Megamart are trained properly how to deal with different customers with an impressive attitude. The display of all types of cloth articles are set up in an attractive manner so that it catches the eyes of customers immediately. The authorities and employees of Megamart put a lot of efforts to increase and maintain the sales of their business.

Exchange function:
Exchange function can be said as supporting function to sales function. Exchange function is just about exchanging the clothes of customers if not liked by them. Every cloth stores has to play the function of exchanging clothes and Megamart is no exception, infact Megamart completes this function very effectively.

Finance function:
This function is to be performed in every business weather small or big, national or International etc. Maintenance of all financial happenings of business is very important. The authorities of Megamart complete the work of financial maintenance of their business with accuracy. The authorities of Megamart work hard for the preparation and maintenance

of all kinds of financial statements, balanc sheets, accounting/audit reports etc as & when required. Discounting function: Megamart is directly controlled by Arvind mills ltd in all over India and they have appointed managers for every outlet center/stores for its management and maintenance. Though Megamarts are handled according to the specifications of Arvind mills ltd the branch manager of every outlet center/stores has some rights which he can utilize if he feels that it is going to benefit the company even though if they are not assigned by Arvind mills ltd.

E.g. If Megamart is running an offer by giving discount of flat 40% on a particular brand of jeans and a customer comes and buys 4 pairs of jeans but demands 5 more percent discount on each pair of jeans; In this case if the manager feels that there is no problem in increasing discount and the company is not going to suffer any loss he can than defiantly adjust that 5 more percent of discount for the customer to keep him happy unless the company suffer any loss. On other hand if by providing customer with 5 more percent of Discount Company suffers a loss than the manager does not adds more discount to the customer

9. STRENGTHS OF MEGAMART

Strengths of Megamart are as follows: Huge satisfied and loyal customer base. Experienced and qualified work force. Team work. Quality service. Professional management. Research Megamart success in marketing research stems from a number of factors. Most importantly it has access to a highly qualified and experienced team of trained project managers, moderators, field managers, interviewers and recruiters. Its clients are given the satisfaction of highly professional and insightful studies that are handled in complete confidence.

. As Megamart predicted, their initiative was met with enthusiasm from Indian consumers and producers and has experienced great prosperity ever since its introduction in December of 1994 where product sales have noticeably increased. On the one hand, MEGAMART has been able to reach out to a large segment of Indian consumers by giving them an extremely convenient service. This convenience can be attributed to the features that we offer as a part of our service. First and foremost, we offer a wide range of top quality products Secondly, at high discounted prices, where many of the items available are exclusive to MEGA MART. Initially, Megamart was a unique method of selling and promoting products of Arvind mills ltd for hundred of consumers in a highly competitive retail market.

10. COMPETITION

In modern business world two factors are always present in every kind of business. Risk Competition Risk factor includes all about the amount of investment done, the stock stored etc.

Competition is also an important part of risk but in a different way.

MEGAMART also faces competition other originations.

from

Arvind mills ltd. Supply its brands in two sectors for selling purpose.

MEGAMART outlet counters/stores. EXCLUSIVE Showrooms franchisee taken by different people.

Now

the formula of Megamart outlet center/stores marketing strategy is to give high discounts throughout the year on every brand.

Whereas EXCLUSIVE Showrooms never give priority to discounts on these items because:

They dont have discount scheme as there part of marketing strategy.

They dont have high margins so that they can give high discount. EXCLUSIVE Showrooms do give discount but only twice a year in the months of around June July & Feb.-March when they want to clear the season stock.

Now the relation and competition between MEGAMART outlet center/stores and EXCLUSIVE Showroom is that both sectors keep every brand of Arvind Mills Ltd from which one give high discount on every article throughout the year and the other sector gives very limited discounts that too in the end of season.

In this case any customer would nodoubtly prefer to by cloths from MEGAMART outlet center/stores because of high discount and no one would prefer to by from EXCLUSIVE Showrooms, but it is not always applicable because of following two reasons:

Fashion/Stock difference:

Arvind Mills Ltd. Manufactures garments for both MEGAMART and EXCLUSIVE Showrooms but in different manner. Arvind Mills Ltd. Manufactures different garments for EXCLUSIVE Showrooms with different fashion trend and different for MEGAMART with different fashion trend.

As

also 20% of stock required by MEGAMART is provided by EXCLUSIVE Showrooms which is unsold garments at the end of season.

This factor makes an impact on customers mentality.

It then forces a person to either go for the fashion trend of MEGAMART outlet center/stores or for the fashion of EXCLUSIVE Showroom.

High class status:

Many people of high class have a different kind of mentality: a unique mentality of status. They feel a bit uncomfortable to buy garments from MEGAMART outlet center/stores because of high discounts and they feel comfortable to buy garments from EXCLUSIVE Showroom because there are no discounts.

These

two factors show the kind of relationship in competition which MEGAMART shares with EXCLUSIVE Showrooms competitors

11. SECRET OF HIGH DISCOUNT:

Megamart has a distinct identity for its high discounts. Every customer when enters Megamart stores for first time just becomes surprised by looking to the kind of discount Megamart offers on every article they keep. Every one question the authority of Megamart that how they afford to give such a high discounts on every article they have.

There are three reasons behind the secret of high discounts by Megamart on all its articles which are as follows:

Manufacturing by company itself,

Export import procedure for international brands, Unsold stocks of exclusive showrooms. Manufacturing by company itself: As per the title suggests the main reason behind Megamart affording to give such a high discount on all clothing articles it offers is home production. Megamart is owned and managed by Arvind mills ltd. Arvind mills ltd does the work of manufacturing all clothing of each and every domestic brand it sells either through exclusive showrooms (Franchises) or Megamart (owned by itself). Now if a company itself manufactures and sells articles it will defiantly afford to give discount more than its competitors who do not manufacture articles on their own. Export import procedure for international brands:

Arvind mills ltd deals with both domestic as well as international brands. It has a very important role to play in bringing and selling international brands in India. Arvind mills ltd itself manufactures brands like Karigari, Indian terrain, Newport etc on its own in its Ahmedabad and Bangalore plants. Whereas it provide raw materials to its international brands like Lee, Wrangler, Arrow etc and brings finished articles of these brands like Jeans, Shirts etc in India to sell in its outlets.

These international brands are also sold in exclusive showrooms of these brands through Franchises but as these brands are provided raw material by Arvind mills ltd they get relatively high margin than other franchises and showrooms.

Unsold stocks of exclusive showrooms: There are two ways through which clothes reaches to Megamart showrooms for its selling purpose. Through factories of Arvind mills ltd: Clothes manufactured in the factories are directly supplied to Megamart outlet centers/stores for its selling purpose. Factories fulfill almost 80% of stock required by Megamart for its selling purpose. Through exclusive showrooms: Exclusive showrooms/Franchises brands of Arvind mills ltd always have some stock end of season. These clothes are shifted to outlet centers/stores all where ever it is needed. who keep for its sale left at the stocks of Megamart over India

Thus the surplus unsold stocks of exclusive showrooms are thus shifted to Megamarts where they are sold on high discounts so that they do not become much outdated so that no one buys it. These exclusive showrooms fulfill around 20% of stock requirement of Megamart.

All these factors are the reason behind the huge discounts of Megamart.

12. DATA ANALYSIS

Information from Megamart stores, Nashik.

Distribution of sale of various brands of trousers in Megamart, Nashik.

Percentag sale of T e rousers

13% ruggers 15% 56% 16% cherokee elitus others

Trousers are one of the largest selling items in Megamart, Nashik. Ruggers lead the race here followed by Cherokee and than Elitus. Others here include brands Wrangler, Colt etc like Lee,

Distribution of sale of various particulars of garments in Megamart, Nashik.

percentag sale of m g ents e en arm

6%

21%

38%

pants form shirts al t-shirts accessories

35%

From the above pie chart we can find out that pants cover the highest portion of total sales in mens garment, pants here consist of trousers 20% and jeans 18%

Pants are followed by formal shirts and tshirts, accessories come last in mens department. Accessories here are consisted of belts, caps, socks, handkerchiefs etc.

Information from surveys from customers

Whatis uniquefeatureabout Meg art? am

25%

25%

Price Quality 5% Promotional offers Brand availibilities

45%

From the above pie chart we can summarize that maximum customer of Megamart feel that the promotional offers made by Megamart is its unique feature (45%), than followed by price and Brand availability (both 25%) and only a few feel quality as its unique feature (5%).

From the above graph we can study that many customers are attracted by the in store layout of Megamart, Nashik as 80% of customers have given it 5 or above 5 marks.

From the above pie chart we can study that maximum customers are attracted by various promotional activities of Megamart, Nashik as it consist of 70%. Whereas only a few customers (30%) are not much attracted by the promotional activities of Megamart stores, Nashik.

13. OBSERVATIONS AND FINDINGS

13. OBJECTIVES AND FUNCTIONS

Megamart has unique marketing strategy to attract various customers.

Megamart is quite serious about measuring customer satisfaction regularly.

Megamart has a varied range of products to cater to various class of class of customers.

The pricing policy is very unique and new to the market.

Megamart has a very good customer relationship management program.

There feedback programs from customer helps them to improve their service.

Megamart has captured a good share of market with various brands onboard

14.1 RECOMMENDATONS

Megamart needs to work more on their stock.

They should maintain a range of various products.

They should primarily focus on youngsters and maintain latest fashionable garments.

The

womens collection needs to be upgraded as there is very little stock of collection.

14.2 CONCLUSION

CONCLUSION BASED ON PROJECT WORK

By this project study, we can conclude that in todays competitive world customer satisfaction is the key to success and this success can be achieved and maintained through proper marketing strategy. Because the ultimate aim of marketing is to increase sales.

CONCLUSION BASED BENEFITS

ON

LEARNING

Marketing and promotional activities are the most important tools to suffice the purpose of customer satisfaction, as also inputs are needed in terms of quality i.e. after sales service etc. also to satisfy the customer it is not only the responsibility of marketing or sales department, but a joint and

collective effort of all the departments is needed. More customizedquality service is the stepping stone for good customer relationship management. Megamart from its incorporation had given utmost importance to customer satisfaction not only through its marketing and pricing strategy but also through its services and thats why today Megamart enjoys the loyalty of huge satisfied customer base. Megamart has became a benchmark for others in terms of personalized attention i.e. customer care and quality service.

15. BIBLIOGRAPHY

15. BIBLIOGRAPHY

To obtain more information regarding the present study and to substantiate it with theoretical proof, the following references were made. Text book on Marketing Management, ICMR Publication Hyderabad. Principles of marketing, Dr. Shaila bootwala Principles of management. Web sites Visited www.megamartstores.com www.arvindmills.com www.google.com

QUESTIONNAIRE:

Name Age Sex

: : : :

Occupation

Where

you aware visiting it?

of

Megamart

before No

Yes

From where would you like to buy branded apparels in Nashik?

Megamart B. The loot Franchises/Flagship D. others stores

What do you think is the unique feature of Megamart? A. B. Quality C. Brand D. Promotional offers Price availability

How would you rank the in store layout of Megamart? (out of 10) >2 ; 8 10 ;25 ;58

Are you happy with the staff services?

Yes No What do you think about the prices of items available in Megamart?

High Average Low Are you attracted towards promotional activities of Megamart?

Yes No

Are you attracted by the discount schemes of Megamart?

Yes No

What are your expectations from Megamart regarding price?

Discounts throughout the year

Steady low prices than competitors

Reasonable prices throughout the year and high discounts during festivals/occasions

High discounts on heavy purchases