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INTERNATIONAL SCHOOL OF BUSINESS RESEARCH, BANGALORE

ORGANISATIONAL STUDY

Conducted at

LANDMARK-MAX FASHION

In Partial fulfillment of the requirements for the award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

DECEMBER , 2016

Submitted by

VIDHI J. BHATT

(REG. No: PG15019)

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Declaration

I Vidhi Bhatt, Registration No PG15019, Student of PGDM, ISBR Business School, Bangalore, do hereby declare that the Organisational Study Report on “MAX FASHION” is an original and authentic work done by me. I further declare that it has not been submitted elsewhere by any other person in any other University for the award of any degree or diploma.

Place: Bangalore Name: Vidhi Bhatt

Date: Registration Number:PG15019

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Certificate

This is to clarify Ms.Vidhi Bhatt, Roll no PG15019, student of PGDM has successfully completed her project on “Landmark Group –Max Fashion, Bangalore”, in partial fulfillment for the awards of degree of PGDM during the academic session 2015-2017. The Projecct Report has been approved as it satisfies the academic requirements prescribed for the said degree.

Guide HOD

(Dr. T K Vijay Kumar)

Reffered Examiner

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Acknowledgement

Regards given to the people in the organization who have helped you in completing the project undertaken. The gratification and elation of this project will be incomplete without mentioning all the people who helped me to make it possible, whose guidance and encouragement is valuable to me. I thank the Almighty God for his immense grace and blessings at each and every stage of the organizational internship. I express my sincere and heartfelt gratitude to my project guide Dr T K Vijay Kumar . HR of landmark region office Mr antaryami, for providing me an opportunity to undertake my project work in their esteemed organization and for giving valuable knowledge, guidance and helpful suggestions in every stage of this project..

I am greatly indebted to my faculty guide, Prof. T k Vijay Kumar of ISBR for his kind guidance and helpful suggestions in every stage of this project. I express my sincere gratitude to all the staff of MAX fashion, Bangalore who selflessly adjusted their schedule to accommodate me in their schedule. This project would not have been done successful without their help.

I express my sincere gratitude to other countless people who have been generous with time, their support and encouragement.

VIDHI J BHATT

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TABLE OF CONTENTS

Chapter Content Page No.

Chapter I Introduction to Organisation Study

1.1 Introduction 7

1.2 Scope of Study 7

1.3 Objective of study 7

1.4 Methodology 7

1.5 Period of study 8

1.6 Limitations 8

Chapter 2 Industry Profile 9

2.1 Industry Overview 9

2.2 Industry Investment 10

2.3 Industry Porter’s Analysis 12

2.4 Industry Growth 14

2.5 Government Initiatives 15

2.6 Industry Future 14

Chapter 3 Company Profile 16

3.1 Company Profile 16

3.2 Business Subsidiaries 18

3.3 Geographical location 20

3.4 Leadership Structure 21

3.5 Organising Chart 22

3.6 Products & Services 23

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3.7 Awards & Recognition 23

3.8 Competition 23

3.9 Departments 24

3.10 Functional Department structure 25

3.11 Functional Analysis 26

Chapter 4 Models for Analysis

4.1 7 S Framework 30

4.2 SWOT Analysis 32

4.3 Sustainability & CSR 33

4.4 Corporate Governance 34

Chapter 5 Findings

5.1 Findings 36-40

5.2 Recommendation 40

5.3 Conclusion 41

Annexure & Bibliography 41

CHAPTER I: INTRODUCTION TO ORGANISATION STUDY 6

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1.1. INTRODUCTION

An organisation is a social arrangement which produces collective goals, which controls its own

performance, and which has a boundary separating it from its environment. Organisation is the

association formed by a group of people who see that there are benefits available from working together

towards a common goal.

Organisation studies are the study of individual and group dynamics in an organisational setting, as well

as the nature of the organisation themselves. Whenever people interact in an organisation many factors

come into play. Organisation study programme attempts to understand and model these factors.

Organisational study is essential to any MBA graduate as it helps them to connect theory with practice

in the initial learning phase.

Organisation study refers to the study of organisation as a whole and getting adequate knowledge with

various departments in the organisation. The study was carried out at MAX Fashion Store of Landmark

Group at Oasis Centre Mall, Bangalore, and Karnataka, India. The study is based on different aspects

and different departments of a retail store

1.2. SCOPE OF STUDY

The Organization study in MAX fashion Retail Market gives opportunity to get accustomed to the retail

working environment in the mode of direct selling for the period of 4weeks. This study is conducted to

understand the structure, function and process of various departments and their inter departments.

1.3. OBJECTIVE OF STUDY

The organisation study was carried out in MAX Fashion, situated at Koramangala, Bangalore to achieve the following objectives:

To familiarize with the organisation structure and it’s functioning. To familiarize with the different departments in the organisation and their functions and activities

including its documentation. To understand how the key business processes are carried out in an organisation. To understand the overall performance of the organisation. To understand the performance measurements of employees and various employee welfare and training

activities. To conduct an audit of the various functional department of the store to check if all the activities are

done according to the standard operating procedures. To conduct a customer survey to understand their behaviour. To make a SWOT Analysis of the store.

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1.4. METHODOLOGY

i. Identification of the company

MAX fashion under Landmark Group was selected for the organization study, considering factors including reputation of the firm, ease of getting permission, industry location, etc.

ii. Identification of the objectives

The specific objective of the organization study was identified and listed in order of priority. This helped in conducting the survey in a systematic and effective manner.

iii. Data collection

Both primary and secondary sources of data were used in this research.

Primary Data : It was collected through observation, personal interview, discussion with managers and employees of the various departments of the organization.

Secondary Data : this was collected through literature review which includes company’s records and documentation.

iv. Analysis and interpretation

The data collected must be properly analyzed to evaluate and enhance the data quality. The analysis is done to identify the actual meaning of data which helps in proper interpretation of data. Data analysis involves working to uncover patterns and trends in data sets and data interpretation involves explaining those patterns and trends.

v. Documentation

After the analysis and interpretation of the data, the information is documented in the form of organisation study report, which gives an elaborate report on the organization study.

1.5. PERIOD OF STUDY

4 weeks

1.6. LIMITATION OF THE STUDY

There were some limitations in conducting the organisation study at MAX Fashion store. These are listed below:

There were difficulties in obtaining data from the managers and the executives due to their busy work schedule.

An in depth study of the store could not be carried out due to shortage of time. The reliability of the data used for the study largely depends upon the company’s reports and the

information given by the executives. The company has the limitation to disclose their financial and other details, so a detailed analysis of the

company is not possible. 8

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Language problem.

Chapter 2: Industry Profile2.1 Industry Overview

The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment.

The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is

gradually inching its way towards becoming the next boom industry.

TYPES OF RETAIL: RETAIL CLASSIFICATION

 Retail industry can be broadly classified into two categories namely- organised and unorganised retail.

Organized retail - Organised traders/retailers, who are licensed for trading activities and registered to pay taxes to the government.

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Unorganized retail – It consists of unauthorized small shops - conventional Kirana shops, general stores, corner shops among various other small retail outlets - but remain as the radiating force of Indian retail industry.

2.2. Industry Investment

The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI) equity inflows totaling US$ 344.9 million during April 2000–September 2015, according to the Department of Industrial Policies and Promotion (DIPP).

Amazon India expanded its logistics footprint three times to more than 2,100 cities and towns in 2015, as Amazon.com invested more than US$ 700 million in its India operations since July 2014.

Adidas AG, renowned for its Adidas and Reebok sports brands, has become the first foreign sports company to get government approval to open 100 per cent foreign-owned stores in India.

Walmart India plans to add 50 more cash-and-carry stores in India over the next four to five years.

Aeropostale, an American teen fashion retailer, has chosen to enter India over China, and expects India to be among its top three markets over the next four years with revenue target of Rs 500 crore (US$ 75 million).

Opinio, a hyperlocal delivery start-up, has raised US$ 7 million in a Series-A funding from Gurgaon-based e- commerce fulfilment service firm Delhivery along with investment from Sands Capital and Accel Partners

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Textile major Arvind Limited has announced a partnership with Sephora, owned by LVMH Moet Hennessy Louis Vuitton, a French luxury conglomerate, in order to enter into the beauty and cosmetics segment.

Mobile wallet company MobiKwik has partnered with Jabong.com to provide mobile payment services to Jabong’s customers.

Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 375 million)in a fruit and vegetable processing unit, an integrated meat processing unit, and a modern shopping mall in Hyderabad, Telangana.

Aditya Birla Retail, a part of the US$ 40 billion Aditya Birla Group and the fourthlargest supermarket retailer in the country, acquired Total hypermarkets owned by Jubilant Retail.

With an aim to strengthen its advertising segment, Flipkart acquired mobile ad network AdiQuity, which has a history of mobile innovations and valuable experience in the ad space.

US-based Pizza chain Sbarro plans an almost threefold increase in its store count from the current 17 to 50 over the next two years through multiple business models

2.3. INDUSTRY PORTER’S ANALYSIS

PORTER’S ANALYSIS OF RETAIL INDUSTRY

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Michael porter (1980) considers that rivalry (competition) on the market is result of the five variables or main forces: rivalry level, bargaining power of customers and that of suppliers, the threat of new entrant and substitute products.

These variables are interconnected. They are illustrated in the matrix of the five competitive forces of porter. These forces are used in several industrial sectors like Retail, Telecom, Airline, Pharma etc.

Threat of New Entrant

One trend that started over a decade ago has been a decreasing number of independent retailers. Walk through any mall and you’ll notice that a majority of them are chain stores. While the barriers to start up a store are not impossible to overcome, the ability to establish favourable supply contract, leases and be competitive is becoming virtually impossible. Their vertical structure and centralized buying gives chain stores a competitive advantage over independent retailers.

Bargaining power of suppliers

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Historically, retailers have tried to exploit relationship with suppliers. Bargaining power of buyers is moderate because of the size and concentration of major retailers. To reduce power and you retain customers, retailers seek to differentiate products and create strong brands. Individual private customers have a relatively low bargaining power in front of large retail chains, which are less organized .Contracts with a large retailer such as Wal-Mart makes or breaks a small supplier. In the retail industry, suppliers tend to have very little power.

Power of Buyers

Individually, customers have very little bargaining power with retail stores. It is very difficult to bargain with the clerk at Safeway for a better price on grapes. But as a whole, if customers demand high quality products at bargaining prices, it helps keep retailers honest.

Threat of Substitutes

The tendency in retail is not to specialize in one good or service, but to deal in a wide range of product and services. This means that what one store offers you will likely find at another stores. Retailers offering products that are unique have a distinct or absolute advantage over their competitors.

Competition Rivalry

Competition rivalry is increased by equal size and power of dominant retailers who are pushing to increase market share. The trend of extinction of small retailers is through acquisitions, mergers, alliances and high cost

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to exist in this market. Among leading group there are More, Reliance Store, Big Bazaar, Landmark groups and Flipkart that are dominating the large markets of retail sector in India.

2.4. INDUSTRY GROWTH

INDUSTRY FUTURE AND GROWTH:

The Boston Consulting Group and Retailers Association of India published a report titled, ‘Retail 2020: Retrospect, Reinvent, Rewrite’, highlighting that India’s retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanization and attitudinal shifts.

The report adds that while the overall retail market is expected to grow at 12 per cent per annum (Both Online and Direct selling)

Retail spending in the top seven Indian cities amounted to Rs 3.58 trillion (US$ 53.7 billion), with organised retail penetration at 19 per cent as of 2014.

Online retail is expected to be at par with the physical stores in the next five years.

Indian e-commerce sales are expected to reach US$ 55 billion! by FY2018 from US$ 14 billion in FY2015.

Further, India's e-commerce market is expected to reach US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025.

India’s direct selling industry increased 6.5 per cent in FY2014-15 to Rs 7,958 crore (US$ 1.19 billion) and is expected to reach a size of Rs 23,654 crore (US$ 3.55 billion) by FY2019-20, as per a joint report by India Direct Selling Association (IDSA)

E-commerce is expanding steadily in the country. Customers have the ever increasing choice of products at the lowest rates. E-commerce is probably creating the biggest revolution in the retail industry, and this trend would continue in the years to come. Retailers should leverage the digital retail channels (e-commerce), which would enable them to spend less money on real estate while reaching out to more customers in tier-2 and tier-3 cities.  

Both organised and unorganised retail companies have to work together to ensure better prospects for the overall retail industry, while generating new benefits for their customers.Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes, favourable demographics, entry of foreign players, and increasing urbanisation.

According to panel members at the seventh Food and Grocery Forum India, the opportunities in food and grocery retail in India are immense, given that it constitutes about 69 per cent of India’s total retail market. The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6 per cent to reach $865 billion by 2023. Modern retail with a penetration of only 5% is expected to grow about six times from the current 27 billion USD to 220 billion USD, across all categories and segments.

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2.5. GOVERNMENT INITIATIVES TOWARDS RETAIL INDUSTRY

The Government of India has taken various initiatives to improve the retail industry in India:

The Government of India has taken various initiatives to improve the retail industry in India.

The Ministry of Urban Development has come out with a Smart National Common Mobility Card (NCMC) model to enable seamless travel by metros and other transport systems across the country, as well as retail purchases.

IKEA, the world’s largest furniture retailer, bought its first piece of land in India in Hyderabad, the joint capital of Telangana and Andhra Pradesh, for building a retail store. IKEA’s retail outlets have a standard design and each location entails an investment of around Rs 500–600 crore (US$ 75–90 million).

The Government of India has accepted the changes proposed by Rajya Sabha select committee to the bill introducing Goods and Services Tax (GST). Implementation of GST is expected to enable easier movement of goods across the country, thereby improving retail operations for pan-India retailers.

The Government has approved a proposal to scrap the distinctions among different types of overseas investments by shifting to a single composite limit, which means portfolio investment up to 49 per cent will not require government approval nor will it have to comply with sectoral conditions as long as it does not result in a transfer of ownership and/or control of Indian entities to foreigners. As a result, foreign investments are expected to be increase, especially in the attractive retail sector.

CHAPTER 3: COMPANY PROFILE

3.1. COMPANY PROFILE

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Founded in 1973 with a single store in Bahrain, the Landmark Group has successfully grown into one of the largest and most successful retail organisations in the Middle East. An international, diversified retail conglomerate that encourages entrepreneurship to consistently deliver exceptional value, the Group operates over 1,200 outlets encompassing a retail presence of over 18 million square feet across the GCC, Jordan, India, Egypt, Turkey, Lebanon, Kenya, Sudan, Yemen, and Pakistan. The Group employs over 45,000 employees. 

 MAX is the international value fashion brand of the Dubai based Landmark Group. Established in 2004 in the UAE, Max has become the largest value fashion brand in India and the Middle East with over 200 stores across 15 countries; offering customers a one stop shop for clothing, accessories and footwear needs for the entire family. 

 

MAX India, a division of Lifestyle International (P) Ltd., has pioneered the concept of ‘value fashion’ in the country, thereby offering the discerning shopper a vast choice with international fashion & quality.  It offers apparel, footwear & accessories that are of the latest fashion trends at a great price, making it affordable to many. Max has its own label merchandise of in house designs and planned colour palettes for the season. Every season Max introduces a fresh collection of international designs specially customized to the Indian market. The brand adapts to the changing needs of the shopper every season and accordingly introduces new designs, silhouettes & fabrics.  In India, MAX was established in the year 2006 with its first store in Indore. Now, Max has around 105 stores across 45 cities with over 3500 employees The store ambience offers an international shopping experience making shopping for the entire family an absolute delight. Max focuses on strong visual elements at the store for engaging customers while they are in store. The stores are designed for easy navigation with distinct category display to facilitate customers in easily locating product they are looking for.  The target audience for Max India is primarily is contemporary middle class family and young working couples within the age group of 25 to 35 yrs. As Max has positioned itself as a youth brand, it also targets teenagers and college students within the age group of 18 to 24 years. Max is reaching out to customers in Tier II towns through brand initiatives like Max Fashion Icon which addresses the aspirations of the stylish youth of the city and Max Little Icon which captures the interest of family oriented markets.  

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‘Landmark Rewards' in a unique loyalty program, with current membership base of over 3.8 million customers, has emerged as one of India's leading loyalty programs offering customers rewards and exclusive benefits. It helps the loyal customers to get more value every time they shop at Landmark Group outlets.  Max has its footprints in Mumbai, Delhi/NCR, Bangalore, Chennai, Kolkata, Hyderabad, Pune, Bhopal, Indore, Kochi, Lucknow, Bhubaneswar, Jaipur, Jabalpur, Nagpur, Raipur, Surat, Vadodara, Gangtok, Ranchi, Siliguri, Agra, Allahabad, Amritsar, Bareilly, Chandigarh, Dehradun, Varanasi, Calicut, Coimbatore, Hubli, Kannur, Madurai, Mangalore, Mysore, Pondicherry, Thrissur, Trichy, Trivandrum, Vizag, Jammu, Vijayawada, Kanpur & Udaipur. The brand plans to have a network of 120 stores by the end of the financial year. 

3.2. BUSINESS AND BRANDS

Landmark Group's business can be broadly classified into Retail, Hospitality and Healthcare. Retail is the group's core focus area and it deals mainly with apparel, furniture, footwear, consumer electronics, cosmetics & beauty products, home improvement and baby products. In India, the formats are different and include grocery retail in a joint venture with Auchan and hence the list below does not apply to India.

Business Activity

Brand

Apparel Babyshop, Splash, Max, Lifestyle, Iconic and Centrepoint (a single store format housing Babyshop, Splash, Shoemart and Lifestyle],kotton

Footwear Shoemart, Shoexpress, Shoemart International FootwearFurniture & home improvement

Homecentre, Q Home Decor, Home Box

Hospitality Citymax, Oasis Malls, Foodmark, Spaces, Fitness First, Fun City, FunvilleHealthcare iCare Clinics, Balance Wellness ClubOther retails E-max (Consumer Electronics), Sports One (Fitness Gear), Candelite

(Confectionery)

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3.2. BUSINESS SUBSIDIARIES

HOSPILATILITY BRANDS

The Group has a diverse hospitality portfolio that includes leisure, food, family entertainment centres, salons & spa, fitness clubs, medical centres, budget hotels and own & franchise restaurant brands:

F&B FITNESS AND WELL BEING HEALTHCRE HOTELS

LANDMARK LEISURE

RETAIL BRANDS

The Landmark Group provides value-driven products for the entire family through a diverse portfolio of core retail brands:

THIS PROJECT WAS CARRIED OUT AT MAX FASHION STORE

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FASHION ELECTRONICS E-COMMERCE

Sports

India

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UNDER LANDMARK GROUP AT OASIS CENTRE MALL, KORAMANGALA, BANGALORE.

MAX FASHION

MAX is the international value fashion brand of the Dubai based Landmark Group. Established in 2004 in the UAE, Max has become the largest value fashion brand in India and the Middle East with over 200 stores across 15 countries; offering customers a one stop shop for clothing, accessories and footwear needs for the entire family.  MAX India, a division of Lifestyle International (P) Ltd., has

pioneered the concept of ‘value fashion’ in the country, thereby offering the discerning shopper a vast choice with international fashion & quality.  It offers apparel, footwear & accessories that are of the latest fashion trends at a great price, making it affordable to many. Max has its own label merchandise of in house designs and planned colour palettes for the season. Every season Max introduces a fresh collection of international designs specially customized to the Indian market. The brand adapts to the changing needs of the shopper every season and accordingly introduces new designs, silhouettes & fabrics.  In India, MAX was established in the year 2006 with its first store in Indore. Now, Max has around 105 stores across 45 cities with over 3500 employees  The target audience for Max India is primarily is contemporary middle class family and young working couples within the age group of 25 to 35 yrs. As Max has positioned itself as a youth brand, it also targets teenagers and college students within the age group of 18 to 24 years. Max is reaching out to customers in Tier II towns through brand initiatives like Max Fashion Icon which addresses the aspirations of the stylish youth of the city and Max Little Icon which captures the interest of family oriented markets.  ‘Landmark Rewards' in a unique loyalty program, with current membership base of over 3.8 million customers, has emerged as one of India's leading loyalty programs offering customers rewards and exclusive benefits. It helps the loyal customers to get more value every time they shop at Landmark Group outlets.  Max has its footprints in Mumbai, Delhi/NCR, Bangalore, Chennai, Kolkata, Hyderabad, Pune, Bhopal, Indore, Kochi, Lucknow, Bhubaneswar, Jaipur, Jabalpur, Nagpur, Raipur, Surat, Vadodara, Gangtok, Ranchi, Siliguri, Agra, Allahabad, Amritsar, Bareilly, Chandigarh, Dehradun, Varanasi, Calicut, Coimbatore, Hubli, Kannur, Madurai, Mangalore, Mysore, Pondicherry, Thrissur, Trichy, Trivandrum, Vizag, Jammu, Vijayawada, Kanpur & Udaipur. The brand plans to have a network of 120 stores by the end of the financial year.  Details of the store:

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MAX Fashion: Oasis Centre Mall (Koramangala)

Address: 

Oasis Centre30, Salarpuria Tech Point, Inner Ring Road Koramangala560034 Bangalore / Bengaluru

Mission, Vision, Core valuesOUR VISION

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TO BE AMONG THE TOP THREE RETAIL PLAYERS IN THREE OF THE FASTEST GROWING RETAIL

MARKETS IN THE WORLD (MIDDLE EAST, INDIA AND CHINA)

 

OUR MISSION  

CAREFULLY LISTEN CONSTANTLY ADAPT ALWAYS DELIVER

 

OUR VALUES  

Passion for Excellence

Integrity in everything we do

Empowering people to strive and deliver

Adapting to change market and customer needs

3.4 Leadership structure

The leadership structure followed is democratic. Every decision to be taken by the store manager is taken through the participation of all the staffs of the store starting from the lowest level staff. Personal grievances are heard while allocation of targets and the manager guides them in achieving it through constant motivation techniques. The job hierarchy can be represented as below:

• STORE MANAGER• ASSISTANT STORE MANAGER• DEPARTMENT MANAGERS• SR. CUSTOMER RELATION EXECUTIVE• CUSTOMER RELATION EXECUTIVE

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3.5 Organisation Chart

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3.6 PRODUCTS AND SERVICES

MAX Fashion is a apparel based company providing apparels, shoes and accessories for men, women and children

3.7 Awards and Recognitions

Max was awarded the ‘CMO Brand Excellence’ award during the 6th CMO Asia Awards for Excellence in Branding & Marketing. 

Max was also bestowed with the ‘People’s Choice Retailer of year’ at the BOC- Retail Brilliance Awards in November 2014.

3.8 Competition

Pantaloons Reliance trentds Westside

Fashion at big bazar

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3.9 Departments

There are 14 major departments in the Organisation.

1. Buying and Merchandising

2. Distribution & Logistics

3. Quality Assurance

4. Business Development

5. Store planning & Projects

6. IT Department

7. Marketing and Communication

8. HR Department

9. Administration

10. Finance and Accounts

11. Legal

12. Operations

13. Customer Service Department(CSD)

14. Stock Controller

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3.9 Functional Department structure

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3.10 Functional Analysis

FUNCTIONAL DEPARTMENT ANALYSIS

OPERATIONS TEAM Plan store wise budgeting and quarterly updation based on potential to achieve overall targets. Drive SPD (Sales per Day) and ROS (Rate of Sale) for each department. Ensure adherence to store operations SOP’s. Ensure compliance to audits and audit reports as per SOP’s. Ensure required resources, training and infrastructure is in place prior to store launch. Ensure product presentation and continuous updation of the same is done as per planogram. Collaborate with the marketing team to improve walk ins and conversion for the season. Ensure store level profitability is achieved.

MARKETING TEAM Understand market dynamics and be informed about market trends. Be aware of the products sold by competitors and the product categories that are new. Undertake competition benchmarking (in terms of product, pricing and process). Present strategy for the region/ store with holistic and long term perspective. Proactively present ideas for business growth. Ensure competitive pricing.

PLANNING TEAM Finalize OTB planning. Analyze the product mix performance and project the demand for fulfilment. Undertake bottom up planning and project next year growth by analyzing existing store sales,

opportunity lost and new store sales mix.

The planogram brief across categories and ensure implementation of the same as per standards defined.

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Align the product profile to the catchment potential. Audit and sign off on the range presentation every season. Review the product and category performance, identify product gaps & opportunities and take required

actions. STORE MANAGER & ASSISTANT STORE MANAGER Take active initiatives to achieve the store targets. Ensure the Key Performance Indicators of a store is achieved and all in order. Ensuring stock cover and keeping shrinkage level as low as possible. Review and analyze the visual merchandise and planogram and control basic customer service standards. Engagement and training off employees and keeping a check on the attrition rate. Ensuring all staffs of a store are working and fulfilling their responsibilities as per their checklist. Ensure all the activities in the store are as per the SOP’s standards and audit parameters. Take corrective actions in case of deviations from standards.

INVENTORY To ensure all inventories related process at store is as per the internal audit parameters. To ensure control on outward and inward discrepancy at store. To minimize the loss in transit. Keep control on all inventory related documents both in physical form and in systems. Monitoring and reporting and control on the negative stock on fortnightly basis. To control on damage stock and maximum recovery on damage stock. Carry bags, staff uniforms, hangers etc are recorded as and when they are issued and keep a check on

them. To publish monthly inventory with the targets. To ensure maintaining safety standards in the stores. To keep proper record of the goods exchanged and altered. To minimize and control cases of shop lifting and theft.

CUSTOMER RELATIONSHIP EXECUTIVES AND SENIOR CUSTOMER RELATIONSHIP EXECUTIVES

Ensure sales target is achieved on daily basis and monthly basis both in terms of value and quantity. They are properly groomed. Maintaining floor discipline within a store. Follow the visual merchandise and planogram in arranging the merchandise. Damage control and clearance. Basic customer service standards are followed as per the store norms. Keeping a track of without bar code garments and merchandises.

VISUAL MERCHANDISING Focus on the focal point and the window outside the store. It should be according to the planogram

given by the planning team. Focussing on wall props for the wall look.

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To ensure everything in the floor is as per the planogram. It includes floor fixtures, displays, signages, and mannequin displays. This should create a attractive look for the store.

To check all signages are as per plan. It includes product signage, price signage and best deals signage.

PRICE SIGNAGE PRODUCT SIGNAGE

BEST DEALS SIGNAGE

All floor fixtures properly arranged. Fixtures used in MAX stores are: Wall fixtures

1. Feather wall2. Techno wall3. Slat walls (having slots for detachable pegs)

Browsers 1. Six way browsers (having 6 sides to hand garments).2. Four way browsers3. Sixteen way browsers

Rails 1. A rails2. D rails

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WALL PROPS

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3. Mannequines rails Tables

1. Cluster tables2. Wooden tables3. Double sided tables4. Nesting tables

Arms 1. Straight arms2. T arms3. Step arms

Other fixtures 1. Gondolas2. towers

HEAD CASHIER & CASHIERS Ensure till amangement activities are as per order. It includes float amount is given to all tills before

opening the billing counter. Collection of 100% collection of proceeds. Ensure correctness of all activities related to employee discunts, gift vouchers credit note and issues related to membership rewards.

All SOP’s related to cash is adhered to. Petty cash expenses are recorded as per order and vouchers maintained with proper signatures for audit

purpose. To undertake all the banking and cash deposit activities of the store in correct order. To maintain all documents for the cashieing process including the back ground verification of the

cashiers, all cash memos and other documents.

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Chapter 4- MODELS FOR ANALYSIS

4.1 7’s Framework

STRATEGY

Low priced merchandises targeting youths.30

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Landmark reward membership programme. Customer gets reward points on their purchases which can be encashed.

Gift vouchers on special occasions to drive sales Fashion shows on MAX Apparels at colleges and stores before season launch. Selfie contest sporting MAX apparels. Find your size (If a customer does not get the size, max promises to deliver it at door step within 48

hours without any extra charges). Various spot offers at stores. Bundled merchandise offer (buy 2 get 1 free).

SYSTEM

Various systems are used in MAX store. They are as follows:

RAMCO IT TOOL: This is used for the attendance of employees in entire Landmark Group. IBM iConnect: Used as a mailing tool for interdepartmental and intraorganisational communication

purpose. ORPOS: Orpos stands for Oracle Point of Service. It is used for cash management and cash related

issues. STYLE

Complete democratic style of leadership is followed. The store targets and all other decisions are taken through discussion across all levels of staff starting from customer relation executives to the managers. Personal grievances of employees are considered while decision making.

SHARED VALUES

Passion for excellence: we are committed to setting benchmarks, be it our products or practices. Our doctrine is to strive and excel and maintain the lead in whatever we do with strict adherence to quality and delivering value for money.

Adapting to changing customer needs: We keep ourselves abreast with industry trends and dynamic consumer preference. Our offerings keep evolving to address changing and growing consumer trends.

Empowering people to strive and deliver: Our core strength is our employees. We believe in giving our personnel the opportunity that is integral to the professional development & our group success.

Integrity in everything we do: Our whole business success depends on the integrity of knowledge and hard work in everything we do.

STAFFS

All employees are given induction training on their joining. They are also trained if management finds their actions or behaviour not at par with the organisation needs. Managers and department managers give regular briefings as and when required to keep all employees informed about their targets and actions to be taken. Staff motivation techniques used are:

Month wise birthday celebration.

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Productivity score are maintained for each employee based on sales, punctuality, floor discipline, grooming, winners are given gift vouchers based on their results.

Annual rewards and recognition programme organised. Mediclaim facility for employees. Staff outings are organised.

SKILLS All employees are trained at regular intervals through professional trainers for best customer service. Written and psychometric test conducted before recruitment. Training is given on English Language. Concept of MGD (M: meet, G: greet, D: direct). It should be done within 30 seconds a customer

enters a store. Product training given during new product launch Human resource team reviews and audit these skills at regular intervals.

4.2. SWOT ANALYSIS

STRENGTHS Value for money products. Quality goods at economical prices. Customer friendly staffs. Shop is centrally located so foot fall even on week days stays

quite high. The pricing strategy helps to attract to youth segment of the

society. The shop achieves its sales target very easily due to large customer base. Majority of the customer visiting the store re members of the loyalty programme which is a good

sign. WEAKNESS

Now-a-days customers prefer single stop stores where they can find everything at a single place. So MAX lacks in that feature.

Formal wears for men lacks collection. Women ethnic wear is very less. Now people prefer brands. Only one brand is available here is MAX. So it can be a weakness. Ambience of the store is not so good compared to other stores.

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Although the staffs are customer friendly, numbers of available staffs are less. So during rush times customers are found searching for staffs in order to find correct product.

The store runs out of stock most of the times for the merchandises. OPPURTONITIES

More formal collections can be added to the stock to attract the customers looking for customers. The ambience of the store can be improved by proper designing of the store layout and efforts of the

visual merchandising team. More marketing can be done compared to the present scenario; this can increase the customer base. The footwear section although have a good number of collection but has a very low conversion rate.

So efforts can be made to increase its sales. THREATS

All the major competitors like Pantaloons, Westside; Shoppers stop is present just some hundred meters away from the store. This is a very big threat.

As the store is located at the back side of the mall, new customers may not catch attention of the store.

Location wise the store has problem since there is only one sided traffic. Customers coming from Ejipura side, finds it difficult as U turn is not allowed in near about Kms. Stretch.

4.3. SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY

Reaching out to 40,000 Young Adults for undertaking Free Random Blood Glucose Tests and creating awareness about healthy Lifestyle Management amongst them.

Building capacity of 1,000 Urban Women Slum Dwellers in Bangalore to be the ‘Health Champions’ for managing the Family and Community Health by inculcating Lifestyle Management Practices.

Facilitating more than 1 Lakh individuals across 08 Cities in India to undertake Free Random Blood Glucose Tests during the month of November 2015.

Supporting the Diabetic Retinopathy (Surgical & Medication) Expenses for 300 Individuals. Beat Diabetes Take the Test Initiative was conducted in Lifestyle and Max stores across 8 cities. More

than 42000 people took part in the test. Beat Diabetes Get Active Program at Acharya Group of Institute, Bengaluru will be held on 19th

November, 2015 ‘Beat Diabetes Get Active’ Program was held at Christ university, Bengaluru will be held on 9th

November, 2015. Beat Diabetes Get Active Program at AMC Engineering College was held on 3rd November, 2015. Conducted Tests for more than 7,500 Young Adults till October 15, 2015 under Get Active Program.

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4.4. CORPORATE GOVERNANCE

‘Leading with Respect’ is the way people at Landmark Group put Company Values into action. By leading with respect, we create an environment where people feel free to our suggestions and contribute ideas to be part of the organization’s success. Leading with respect creates an environment where people genuinely care about each other and work well together to reach their full potential. The ‘Leading with Respect’ principles are:

Communicate : Express ideas clearly and simply; listen to others; create an environment where people are comfortable expressing their thoughts; promote timely and ongoing flow of information to and from others.

Give and seek feedback : Develop people at Landmark Group by giving and seeking constructive, specific feedback, by providing direction and helping people stay on track and motivating positive changes and inspiring exceptional work.

Value unique contributions : Value and recognize the contributions and good work of others; respect individuality; involve others when making decisions and establishing priorities. Valuing people for their individual differences is the key to building and sustaining success in business now and in the future.

Promote teamwork : Create a commitment to common goals; resolve conflicts in a positive way and build a culture of camaraderie.

Set an example : set a positive example for conducting business in an ethical manner, for managing your personal behaviour and for creating a pleasant and balanced work environment.

Landmark Group’s Code of Conduct serves as a guide for our daily business interactions, reflecting our standard for appropriate behaviour and our corporate values. The Code clearly conveys to each of us that the manner in which we achieve our business results matters just as much as achieving them. Most importantly, each employee is responsible for demonstrating integrity and leadership by complying with the provisions of the Code of Conduct, Standard Operating Procedures, Company policies and all applicable laws. By fully including ethics and integrity in our ongoing business relationships and decision-making, we demonstrate a commitment to a culture that promotes the highest ethical standards. Complying with the Code is easiest to ensure by using good judgment and seeking guidance when questions arise. Each of us is responsible for our decision-making and for our compliance with the Code.

RELATIONSHIP WITH EACH OTHER Dealings with each other should be based on mutual trust and dedication. We are responsible for treating each other with respect and dignity.Strive to have healthy work relationships

Landmark Group treats each and every employee equally When we are communicating / passing information (casually or not), we need to do so in a manner that

ensures that the message heard by those listening, is as accurate as possible. We must avoid acts of personal indiscretion or socially unacceptable behaviour, for example:

Getting drunk in a party or a social function or misbehaving in public Using abusive, expletive infested language (swearing/cursing) Inflicting verbal or non verbal abuse on anyone (including employees) Loud and irresponsible behaviour in public which causes discomfort and embarrassment to

surrounding people Manhandling or physical assault on any one Unreasonable criticism Undue show of authority Reporting to work in an inappropriate dress or presenting oneself in a shabby manner

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We strive to eliminate potential hazards from the workplace and to comply with all applicable occupational safety and health laws and standards.

We do not use child labor. Child labor is defined as employing any person younger than the minimum age prescribed by law in the jurisdiction in question

Equal Opportunity EmployerLandmark Group is an equal opportunity employer and does not discriminate on the grounds of race, religion, nationality, ethnic origin, color, gender, age, citizenship, sexual orientation, veteran status, marital status or any disability not affecting the functional requirements of the position held. Selection, recruitment, placement, training, compensation, promotions and other conditions of employment of the employees shall be strictly on the basis of qualification and competences and competence required to be successful in current and future assignments. It shall be the responsibility of the Managers to ensure that the workplace climate is conducive for all persons irrespective of race, religion, sex or other characteristics and that the employees have the opportunity to grow in the Organization.

RELATIONSHIP WITH THE COMPANYAs part of the Landmark Group, we strive to adhere to the Landmark Group’s policies, while making our best efforts to improve the Company’s performance. We recognize the trust and confidence placed in us and acts with integrity and honesty in all situations to preserve that trust and confidence. We avoid conflicts of interest and other situations that are potentially harmful to the Company.

Avoid Conflicts of Interest : Your judgment is one of your most valuable assets. You should avoid any activity, interest or association that conflicts with or appears to compromise your exercise of independent judgment in the Company’s best interests. Conflicts can arise in many situations. It is impossible to cover them all here, and it will not always be easy to distinguish between proper and improper activity. When in doubt, consult your manager or Human Resource representative before taking any action. The following guidelines apply to the most common conflict situations:

Family : Notify your manager and obtain approval from your Division or Function head before doing business on Landmark Group’s behalf with any company in which you or a close family member has an interest such that you or they may in any way benefit from your or their actions. No two members of the same family can work in the same department / function / concept. Please intimate the HR department as soon as you come to know of such information as prior approval is required to be obtained from the HR department before employing members of the same family. Family for this purpose means the employee’s spouse; parent, brother, sister, or child, or a spouse of such a child.

Other Work : Do not work for a competitor of Landmark Group while working for the Landmark Group or do any work for or provide assistance to any third party (dealer, customer or supplier) that may adversely affect your performance or judgment on the job. Do not use Company time, facilities, materials, brands or logos for outside work that is not related to your job at the Landmark Group without authorization from your Function head or HR.

Personal : While we recognize and respect the rights of people in the Landmark Group to freely associate with those they encounter in the work environment, we must also use good judgment to ensure that those relationships do not negatively impact job performance, the ability to supervise others or the work environment. Favouritism, Nepotism or making business decisions based on emotions, allegiances or friendships rather than the best interests of the Company is prohibited. Individuals who find themselves in a personal relationship or friendship should use tact, good judgment and sensitivity.

Boards : Obtain approval from the MD / HR before agreeing to serve on a Board of Directors or a similar body for an outside business or government agency. Serving on the Board of Directors for a professional or work-related non-profit organization must be approved in advance by your Division or Function head.

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RELATIONSHIP WITH OUTSIDEBUSINESS ENTITIESEach of us is responsible for how we are perceived by the suppliers, dealers and competitors. It is essential that we maintain our reputation for honesty and fair dealing with these groups. Deal Ethically with Suppliers and Customers: Our aim in conducting our purchasing operations is to ensure continuing and reliable sources of supply. Honest dealing with customers and suppliers is essential to sound, lasting relationships. Thus, we view our suppliers as partners and expect them to make a reasonable profit. We give all potential suppliers fair and uniform consideration. Decisions are based on objective criteria such as price and quality, as well as a vendor’s reliability and integrity. Giving or receiving any kickbacks, bribes or similar payments of any sort is prohibited. We cannot appoint or terminate a dealer or supplier at the urging of other dealers or suppliers. We extend no personal favours to our customers on prices, promotional allowances, marketing assistance or the like; we treat all customers on the same business basis.

RELATIONSHIP WITH GOVERNMENTAND LAWWe obey all laws that regulate Landmark Group’s business. It is our policy to go beyond the letter of the law and comply with its spirit. Always consult the Human Resource Department whenever you are in doubt. Do not Give or Accept Inappropriate Gifts: It is unacceptable to give or receive gifts, payments or other personal benefits to influence or that may appear to influence, any business decision. If you intend to give or receive a gift, payment or other benefit that is more than the nominal value (1500 INR), you must contact the Human Resource Department for approval before doing so. Do not use your position at the Company to privately enrich yourself or others (such as family or friends). Never ask for a gift or favour from an individual or organization that does business with the Company, or is actively seeking to do Business with the Company. Never accept any of the following types of gifts or favours from an individual or organization that does business with the Company, or is actively seeking to do business with the Company:

Cash, gift certificates, or a gift of packaged alcohol (including beer or wine) Tickets to any event that involves adult entertainment when you are on Company business. A loan, unless it is from a regular financial institution on normal terms Discounts on goods or services, unless the supplier makes them generally available to all employees in

the Company.

CHAPTER-5 FINDINGS

5.1. FINDINGS

5.1.1. TARGETS

MAX Fashion’s business concept is to offer fashion and quality at the best price. It targets men, women, children jeans and dividends since India is very strong in niche segment and short run fashion garments.

5.1.2. STORE AMBIENCE AND ANALYSIS

Total floor area: 13000 sq ft. Wall colour: white

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Lighting: Bright Employee Uniform: Based on rank hold, bright and attractive

5.1.3. PRICING STRATEGY

Value pricing: Best products with most reasonable price. Promotional pricing: Psychological discounting, Special event pricing

Contribution or profit on garments according to the departments:

Western wear department 20%Ethic wear department 14%Footwear department 7%Men’s wear department 21%Accessories department 4%Kid’s wear department 22%

5.1.4. KNOW YOUR CUSTOMER ANALYSIS

Note: The consumer analysis is based on the sample of 50 successful customers who made purchases.

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20-2740%

28-3534%

35 & ABOVE26%

AGE COMPOSITION OF CUSTOMERS

14-2020-2728-3535 & ABOVE

From the graph showing the age wise distribution of the customers, we can see that majority of the customers are of the youth sector, who want to go for ‘value for the money’ product. 40% of the customers are of the age group of 20 to 27 years, while 34% of them are of 28 to 35 years. Thus youths are considerably more attracted to the products. The low price range is a major reason for this.

MEMBER OF TIC74%

NOT A MEMBER

OF TIC26%

MEMBER OF INNER CIRCLE

MEMBER OF TICNOT A MEMBER OF TIC

If we consider the Membership, 74% of the customers who have visited the store are members of the Landmark Loyalty Points programme. Thus majority of the customers visiting the store are the members, which shows they are the regular customers. The store targets to achieve 80% mark for this programme. So it is very close to its target.

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FORTNIGHTLY4%

ONCE IN A MONTH

46%ONCE IN 3 MONTHS

35%

2 TIMES IN A YEAR15%

FREQUENCY OF CUSTOMER VISIT

FORTNIGHTLYONCE IN A MONTHONCE IN 3 MONTHS2 TIMES IN A YEAR

From the viewpoint of the frequency of visit, about 46% customers visit the store once in a month, and 35% of them visit once in 3 months. Thus the customers visit frequently. The low pricing strategy keeping the standard quality of the product can be a reason for this. This show the customers get value for what they purchase and this drives them to the store frequently.

MEN'S WEAR26%

WESTERN32%

ETHNIC13%

KIDS24%

ACCESSORIES5%

TYPES OF PRODUCTS PURCHASED

MEN'S WEARWESTERNETHNICKIDSACCESSORIES

Coming to the types of product purchased, 32% of the customers prefer western wear, and 26% prefer men’s wear and 24% opted for the kids wear. From this we can conclude that the other sections, i.e. the ethnic, accessories and the footwear section needs some more attention to be given by the staffs. This can be done by adding more variations to the merchandises.

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Some technical terms used in MAX Stores:

1. Basket size: sold quantity/no. Of bills2. Average bill size: total sales/ no. Of bills3. Contribution: (department sale/ store sale)*1004. Till: it refers to the systems at the billing counter5. WBC: Merchandises without Bar Code.6. SOH: Stock on hold.

. GENERAL FINDINGS

As window display is the face of the store, it must be changed on regular basis. This store have thematic window.

Visual display in store changes as per season and latest arrival in the store Some apparel available in display was not available due to stock out. So stock should be maintained. Music was not so happening to attract customer moods. Assortment planning needs improvement. The products which are not moving are also kept on the store.

This reduces place for the stocks which are selling out fast. Fast moving products were found to be out off stock. So planogram could not be followed due to less

stock. This hampered the attractiveness to some extent. Inventory management and assortment planning in store from corporate office is poor. Like in kids and

men’s department people were looking for more ethnic and party wear dresses. MAX lacks in men’s ethic wear. This section is not present in MAX. No resting area in the stores, which is major problem. Department maps should be placed for consumer convenience. They have to ask the sales person to help

out in finding what i there in part of the store. Accessories and footwear departments are very slow moving. Very few customers make purchases from

these departments. Designs and colour style are monotonous. There is very few variations in the merchandises.

5.2. RECOMMENDATIONS

Stores should be made much more appealing visually to create brand image in the mind of the customers.

There should be proper relation between the season and the products displayed. The store environment should be warm, welcoming and friendly giving a customer a memorable shopping experience.

Number of customer relation executives on floor should be present during rush hours. Music is played in the retail store not with the objective of entertainment but for influencing customer

buying pattern. This should be taken care of.

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The store should be organised logically like proper groups and categories should be mentioned so that all merchandise of one type, color and size is positioned together helping the customer to make a clear choice.

Do proper assortment planning from corporate to store level as per trend and past sale. Max running stock in many categories, on moving stock stored in stock. It needs improvement. In accessory department introduce more variations. Improve consumer and sales people interaction. Way

of interaction must be different from shopping basket. There can be some fabric knowledge, washing pros and cons how to improve life of garment, something

interesting. Introduce resting area in the stores for aged people visiting the store.

5.3 Conclusion

The Indian customer is still very need oriented.

In emerging markets, selling and keeping the customers happy is more challenging.

They are targeting only higher middle class & higher level customer so they left people from lower middle class.

ANNEXURE AND BIBLIOGRAPHY Store financials have been used to collect data. SOP manual have been used to understand and gather knowledge about the functioning of the stores and

its various processes. Websites include:

www.landmarkgroup.com www.wikipedia.com www.maxfashionindia.com

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