Guidelines and Methodology For CIA 1 Component-2 Retail management Objective 1)To gain insights into the changing

competitive setting for Indian organised Retail companies/corporate and evolve key competitive strategies . 2)Garner hands on real time exposure to catchment analysis and Retail store management practices in different retail formats. 3) Get insights into consumer Behaviour 4) Understand key front end (Retail store) cost drivers and create a Break even business model Topics: 1)Retail Store management and catchment Analysis a) Catchment Analysis..Area mapping of existing store location b)Store opening and closing time. Monitoring Morning supplies and other supplies from Distribution centre. C) Planogram/Billing Speed/Peak hours/lax hours/Normal hours d) In store display/Schemes/discounts/Pricing and analysis thereof.(comparison with competitor) 2) Perception mapping of Consumer buying intentions 3) Cost drivers of Front end Store operations a) Rent b) Electricity c)Manpower. d) Inventory e)In store display/Schemes/discounts/Pricing and analysis thereof.(comparison with competitor) f) Break even business per Sqft g) Hypothetical business model considering a) to g) General Since we have 11 groups and four topics, more than one group will be working on the same topic. While majority of the group has chosen the topic on their own, i will use my discretion to accommodate all groups within the topics... No clubbing of different formats as it will vitiate the business model building process.

Allocation of formats and topics 1) Group-1 Convenience stores format (2500 Sqft to 8000 Sqft)..Any outlet of MORE(Aditya Birla retail) (topic-1) 2)Group-2 Super Market (Upto 40000SQFT)....Any BiG bazaar Outlet.(topic-1) 3)Group- 3 Department store(Lifestyle) .......Any Life style Outlet (topic-1) 4) Group-4 Consumer durables.........Any EZone outlet.(topic-1) 5) Group-5 Hyper Market............... Auchan( Koramangala) outlet.(topic-2) 6) Group-6 Super Market (Upto 40000SQFT)....Any Star bazaar Outlet. (topic-2) 7)Group-7 Convenience stores format (2500 Sqft to 8000 Sqft)..Any outlet of RELIANCE FRESH /MORE/SPNCER outlet. (topic-2) 8) Group-8 Consumer durables.........Any TATA CHROMA outlet. (topic-3) 9) Group-9 Hyper Market............... Auchan( Jayanagar) outlet. (topic-3) 10) Group-10 Convenience stores format (2500 Sqft to 8000 Sqft)..Any outlet of MORE(Aditya Birla retail) (topic-3) 11) Group-11 Department store(Lifestyle) .......Any Life style Outlet (topic-3)

Methodology For Topic 1 Catchment Analysis 1)Select any Retail outlets as per format allocated to your group 2)Buy a Bangalore MAP(google type map which gives even details of Residence/street number/locations). 3) Identify the location of locality where the selected Stores is located. 4) MAP the number of households within a Radius of 750 Mtrs/1Km and 2 Km(Plot in a concentric circle model..Inner most circle should be the catchment area nearest to the store) 5) Estimate the number of households in each radius. 6) Interview the store manager and try to find out from his loyalty card or other data base as to how many customers approximately are from each of the radius Area. 7)Above is a basic frame work for Convenience stores..but the definition of catchment for other formats will change.

Store management Planogram 1) Visit the outlet as a customer..Understand approximately the total Area of the outlet .Collect various details in respect of the lay out. This should be done for front end of the store and any back store they may have for replenishment. 2) Do a lay out mapping( Should be done in computer CAD CAM if possible else Excel also supports) 3) Map clearly different section that is Fruits and vegetables section/ Grocery/Food/non food/Fmcg etc..You will also find some high value small items like Gillette razor behind the cashier on standees. 4) Count the number of Racks(4 ft/6ft/double side/Wall racks and gondola)..This can be used for Convenience stores and Super markets.. You will have to devise something similar for other formats. 5) Plot each of these racks in your lay out map. 6) SKU categorisation Super market And hyper Market Identify different SKUS and products displayed on each of these racks..Broadly categorise them As Food/non food/Grocery/FMCG/Skin Care and others. Department Stores like life style and West side Broadly Categorise under Apparels(men/Women/Children)/ Household Consumer Durables retail Broadly categorise Colour Televisions & Electronics, Refrigerators, Washing Machine And Small Appliances 7) label these categories in your layout rack wise. 8) Observe how the floor Space is being used for keeping heavy items or oils etc. 9) Time the billing speed and time taken to reduce que at different periods 10) If you note collecting of all the above details can be done by visual observation itself. Store timings Supplies are delivered to the store from the distribution centre or directly at different products depending upon the source and daily requirement Fruits and vegetables are usually supplied in the morning. In any case check the store opening and closing timings and also the different times during which supplies are received.

It will be worthwhile to observe as to how the staff manages to unload at different times with customers also being around( can lead to damages/spoilages/pilferages)

Methodology For Topic 2 1) Use broad categorisation of different SKUS available in each format as given below Super market And hyper Market Identify different SKUS and products displayed on each of these racks..Broadly categorise them As Food/non food/Grocery/FMCG/Skin Care and others. Department Stores like life style and West side Broadly Categorise under Apparels(men/Women/Children)/ Household Consumer Durables retail Broadly categorise Colour Televisions & Electronics, Refrigerators, Washing Machine And Small Appliances 2) create Questionnaire using the following variables Consumer Behaviour(Drivers) Geography Independent variable Location Convenience Demography Age Income Family size Basket size Range of SKUS Cost Lay out Services Dependent variable Stock keeping units Stock keeping units EBDITA EBDITA EBDITA EBDITA EBDITA EBDITA EBDITA

3) Administer the questionnaire to minimum 100 customers in your format. 4) You can add any other behaviourail dimensions you can think of. 5) Analyse the data using SPSS/regression/Anova

6) Submit report. Methodology For Topic 3 1) Visit the outlet as a customer..Understand approximately the total Area of the outlet .Collect various details in respect of the lay out. This should be done for front end of the store and any back store they may have for replenishment. 2) Rent a) Find out the rent for commercial Property prevailing in that catchment. b) Obtain the present rent being paid(Also approximate terms of lease) for the outlet chosen by you. 3) Electricity a) Find out whether they have single phase or three Phase. b) There is a fixed cost as per Phase . c) Count the number of points/power points/lights/fans/ACS/Computer systems/Billing counter d) Lights on glow sign board outside or any other lighting arrangement e) calculate unit consumption for each of the items as per the number of hours each item is used f) During lax hours or day time some lights have to be switched off( to have cost effective use) g) But the outlet may not be observing this(this inefficiency)..but you haves to build this factor in your business model 4) Manpower a) How many on company rolls and how many on contract? b) Section/division wise manpower count(F&V/Super market/Back store/cashier etc) c) There will be a Store Manager who will be senior and usually on company rolls d) How many helpers/Door deliver boys e)Average cost per person per month f) Summary of head count and cost for each section as per manpower allocated/expected business 5) Inventory Super market And hyper Market Identify different SKUS and products displayed on each of these racks..Broadly categorise them As Food/non food/Grocery/FMCG/Skin Care and others. Department Stores like life style and West side Broadly Categorise under Apparels(men/Women/Children)/ Household Consumer Durables retail Broadly categorise Colour Televisions & Electronics, Refrigerators, Washing Machine And Small Appliances Valuation of Inventory Interview store manager and obtain average inventory value carried in store for each category at any point at Selling price. (this is for calculating inventory holding cost) Approximate Margins ( Pl verify this with Store manager) 1) Super markets..Grocery& food(30%)/Fmcg(22%) Skin care(35%) (Weighted average 22 to 25%)..Based on sales mix 2)Departmental Stores Mens wear(35 to 40%) Womens wear(40 to 45%) Children(25 to 30%) house hold(40%) (Weighted average 30 to 35%)..Based on sales mix 3) Consumer Durables CTVS( 26%) Refrigerators(22%) Washing machines(18%) Small Appliances(22%) (Weighted average 22 to 25%)..Based on sales mix

6) Pricing/ Schemes/Discount(understand and plot it weekly on important categories).Compare it with competitors 7) Hypothetical Business model a) obtain broad categorywise Sku details from Groups working on topic3 b) Obtain approximate monthly sales for each category(supermarket/F&V etc) c) Divide this sales by the average customer base data. d) Compute costs for three major cost driversn/ e) Compute approximate gross margin after deducting these costs from from data obtained from point b) f) Recommend a front end operating break even per month g) recommend few key promotional strategies for increase sales of key categories. Comprehensive Summary of findings and report to be submitted. Evaluation CIA 1 1) 8 Marks for the content and submission of the report 2) 2 marks for meeting deadlines . . Dead line for submitting CIA 1 iis 31st January,2014 (Interview Mr Prashant Shirali National head Supply chain in a multinational with lot of years of experience. Refer my name and talk to him over phone..He is based out of Mumbai..(take the phone number from me) CAUTION: As you will be visiting the stores as a customer or otherwise PL BE EXTREMELY SENSITIVE to your surroundings and how you conduct yourself..All your interactions with the Store Staff should be handled carefully and not too personal questions to be asked. Also be sensitive when you are talking about Salaries..Should not indulge in discussion about the merits of the salary paid.. DO NOT CREATE ANY MANGEMENT DISSONANCE. YOU ARE AMBASSADOR OF CHRIST UNIVERSITY HENCE MAINTAIN THE DIGNITY