Summer internship on:-“Factors Affecting

KPI’s of U.S. Polo Assn. (Retail Store)”

Undertaking at Arvind Lifestyle Brand l.t.d.

1

Submitted to:- Submitted by:-Mr. utkarsh shrivastava Manas saraf(senior executive HR)

C E R T I F I C A T E

Arvind Lifestyle Brand l.t.d.(DELHI)

This is to certify that MANAS SARAF a regular student of Post Graduation Diploma of Management at Indore Indira Business School, Indore has worked under my guidance in the sincere preparation of his dissertation entitled:-FACTOR AFFECTING KPI’S . I am fully

2

satisfied with this project report which is truly eligible and acceptable for the partial fulfillment of the degree of Post Graduation of Diploma in Management.

DATE : 29/01/2015 UTKARSH SHRIVASTAVA

ACKNOWLEDGMENT

I would like to record our sincere gratitude for giving us a wonderful opportunity to do a project on FACTOR AFFECTING KPI’S for our Curriculum project.

I also Express our sincere gratitude to my project guide Mr. UTKARSH SHRIVASTAVA for guiding us all throughout the Project.

3

I also thank the People who helped us whenever I needed guidance & help during our curriculum Project.

Last but not the least I were heartfelt gratitude to all those people who knowingly & unknowingly supported us & boosted our morale to make this project a reality.

4

DECLARATION

I, the undersigned MANAS SARAF student of POST GRADUATION DIPLOMA IN MANAGEMENT 1st year hereby declare that the project work presented in this report FACTORE AFFECTING KPI’S. Is our own work and has been carried out under the supervision of UTKARSH SHRIVASTAVA (SR. HR EXCUTIVE).

This work has not been previously submitted to any other university for any examination.

DATE:29/01/2015 STUDENT SIGNATURE: MANAS SARAF

PLACE: DELHI

5

Table of contentsSR.NO PARTICULARS PAGE.NO

1. Introduction about the Arvind lifestyle 6

2. History 7

3 Founding father 9

4 Journey 13

5 Board of director 15

6 Introduction of USPA 18

7 HIstory oF USPA 20

8 What is KPI’s 23

9 Current position of store 26

10 Factors affecting KPI 27

11 Conclusion 35

12 Learning 36

13 Strength 38

14 suggestions 40

6

INTRODUCTIONOF

Arvind Lifestyle Brand l.t.d.Arvind Limited (formerly Arvind Mills) is a textile manufacturer and the flagship company of the Lalbhai Group. Its headquarters is in Naroda, Ahmedabad, and Gujarat, India.

It has units at Santej (near Kalol). It manufactures cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It has also recently ventured into technical textiles when it started Advanced Materials Division in 2011.It is India's largest denim manufacturer apart from being world’s fourth-largest producer and exporter of denim.

Sanjay Lalbhai is the Chairman & Managing Director of Arvind & Lalbhai Group. In the early 1980s, Sanjay Lalbhai led the 'Reno-vision' whereby the company brought denim into the domestic market, thus starting the jeans revolution in India.

Today it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.

7

HISTORY OF

Arvind Lifestyle Brand l.t.d.The year 1930 was when the world suffered the great depression. At about this time, Mahatma Gandhi championed the Swadeshi Movement and at his call, people from all across 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 reasoned that the demand for fine and superfine fabrics still existed. And any Indian company that met this demand would surely prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai, decided to set up a mill to produce superfine fabric. 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. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.In the mid 1980’s the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Yet that period saw Arvind at its highest level of profitability. There could be no better time, concluded the Management, for a rethink on strategy. The Arvind management coined a new word for it new strategy – Reno vision. It simply meant a new way of looking at issues, of seeing more than the obvious and that became the corporate philosophy.

The national focus paved way for international focus and Arvind’s markets shifted from domestic to global, a market that expected and accepted only quality goods. An in-depth analysis of the world textile market proved an eye opener. People the world over were

8

shifting from synthetic to natural fabrics. Cottons were the largest growing segments. But where conventional wisdom pointed to popular priced segments, Reno vision pointed to high quality premium niches. Thus in 1987-88 Arvind entered the export market for two sections -Denim for leisure & fashion wear and high quality fabric for cotton shirting and trousers. By 1991 Arvind reached 1600 million meters of Denim per year and it was the third largest producer of Denim in the world.In 1997 Arvind set up a state-of-the-art shirting, bottom weights and knits facility, the largest of its kind in India, at Santej. With Arvind’s concern for environment a most modern effluent treatment facility with zero effluent discharge capability was also established.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 worldscale garmenting facilities and offering a one-stop shop service, by offering garment packages to its international and domestic customers. With our growing global footprints, Arvind has carved a niche with brand names like

Arrow, Flying Machine, USPA, New Port, Mega Mart and The Arvind Store.

Today, Arvind has diversified into other major segments like Fabrics, Garments, Advanced Materials, Chemicals & Dyes, Retail, Engineering, Real Estate, Sustainable Agriculture and Telecom.

9

FOUNDING FATHER'SThe Lalbhais –A Historical Perspective

The Lalbhais can trace their descent from Seth Shantidas (c.1590-1659), who was a dominant figure in the business and civic life of the city. He enjoyed the patronage of the Moghul emperors to whom he was a trusted jeweler. Shantidas was amongst the prominent financers of his time as well. He played an influential role amongst the Jain community of his time, and it was because of his influence at the Moghul court that Shah Jehan confirmed the rights of the Jains over the ancient shrines of Shetrunjaya. His grandson, Khushalchand, (1680-1748) too occupied a place of prominence in the business and social life of the city. He saved the city of Ahmedabad from the marauding Maratha army in 1725 by paying a ransom of Rs. 5 Lakh on behalf of the whole city. For this act the grateful “mahajans” promised in perpetuity, a small amount collected as town duties on goods entering the city to Khushalchand and his family, and the title of Nagarsheth was bestowed upon him.The current surname, Lalbhai, is derived from Lalbhai Dalpatbhai the great great great grandson of Khushalchand. Lalbhai was born around the time when the first textile factory in the city went into production. The first manufacturing company of the Lalbhai family, Saraspur Manufacturing Company was established in 1897. It started with producing cotton yarn. During the intensifying Swadeshi movement the second company Raipur Mills was established in 1905. Due to untimely death Lalbhai Dalpatbhai the reins of his

10

businesses were handed over to his young sons including a seventeen-year-old Kasturbhai Lalbhai. Kasturbhai started the first large scale textile mill under the name of Asoka Mills in 1920 with a capital of Rs.12 Lakh at a time when the largest mills in the region were built with not more than Rs. 5 Lakh. 1930-31 saw the resurgence of second Swadeshi movement coinciding with the great depression. While different entrepreneurs reacted to the situation differently Kasturbhai saw this as the decade of prosperity and growth and established the flagship Arvind Limited in 1931 with an authorized capital of Rs. 25.25 Lakh. Kasturbhai had also floated mills for families of his three sisters under the name of Aruna Mills in 1928 and Nutan Mills in 1931 and Ahmedabad New Cotton Mills in 1938.With the expansion Kasturbhai came to occupy the position of the biggest textile magnate in the country. Few groups could claim to have made such great strides during one of the worst periods in India’s industrial history. After a continuously successful period of four decades in the pre-independence era, the group entered into other fields such as dyes, pharmaceuticals, chemicals, etc. The first diversification started in 1939 with Anil Starch Limited. Atul Products Limited was established in 1952 for manufacturing textile-related chemicals and dyestuff. Atul formed joint ventures with Ciba-Geigy called Cibatul, with American Cynamid called Cynamid of India and with ICI of UK called Atic Industries. As time progressed the JV partners separated amicably and these companies exist in India today as full representatives of these global giants.With the retirement of Kasturbhai and his younger brother Narottambhai from active business, the role of the patriarch fell on the shoulders of Arvindbhai. He along with his brother Niranjanbhai and his cousins Ashokbhai,Ajaybhai, Chinubhai and Vijaysinhbhai looked into the running of the textile mills, Siddharthbhai headed Atul Products, and Shrenikbhai, Anil starch. The group took over a sick company called Ahmedabad Laxmi Cotton Mills Co. Ltd. and merged with Arvind Limited and the unit was renamed as Ankur Textiles. The unit currently under Arvind Products Limited is today the country’s largest organized player in the voiles market. The group also invested in Anup Engineering Limited engaged in fabrication and set up Amol Dicalite in collaboration with General Refractories Limited, U.S.A for manufacturing filter aids and perlite products. With the third generation of Lalbhais retiring from business Sanjay, Sunil and Samveg Lalbhai, the fourth generation of Lalbhais, now oversee all the businesses.

11

 Apart from the field of business the Lalbhais over generations have contributed to education, social and religious causes. Their contribution to education starting from Gujarat Vernacular Society in late 1800’s to the formation of Ahmedabad Education Society, (1936), which governs 11 leading colleges and 6 schools, and 4 other educational programs. Kasturbhai Lalbhai played a key role in establishing the Physical Research Laboratory (1948), ATIRA (1947) and the famed IIM Ahmedabad (1961). The Lalbhai family has been closely associated with the Jain trust called Anandji Kalyanji Trust, which is involved in propagating and maintaining Jain temples in western India. Shri Kasturbhai Lalbhai headed the trust for 50 years, followed by Shrenik Lalbhai for 30 years, and now, Samveg Lalbhai heads the trust. Sanjay Lalbhai heads Sharda Trust – Arvind’s CSR vehicle. Arvind is committed to upgrading the standard of municipal schools in Ahmedabad and work towards building a pool of bright employable youth.

Management Committee

The company was incorporated in the year 1931. Since then, the workforce has grown to more than 25,000 employees with a management team that represents some of the most experienced professionals from the Lifestyle Brands & Retail industries. J. Suresh

(MD & CEO - Arvind Lifestyle Brands Ltd & Arvind Retail Ltd)

Venkatachalapathy KE (CEO- Arvind Retail Ltd)

S Kannan12

Chief Financial Officer, Brands & Retail

Alok Dubey COO – Sportswear & Denim / Youthwear

V Nagaraj Chief People Officer, Brands & Retail

Anindya Ray Sr. VP - Sourcing & Technical Services

Venkatramani K

COO - Heritage Brands

13

Journey2014 Buys 49% stake in Calvin Klein in India Set up joint venture (JV) with Goodhill Corporation of Japan for launch of formal suits.

2013 Signs agreement for licenses of Hanes Enters long term licensing agreement with Iconix Lifestyle India.

2012 Signs distribution agreement with Billabong Arvind acquires India operations of Debenhams, Next, Nautica.

2011 Set up joint venture for marketing Tommy Hilfiger brand

2010 Launched The Arvind Store and its first major Real Estate project

2008 Arvind expands its presence in the brands and retail segment by establishing MegaMart – One of India’s largest value retail chains.

2007 Started Organic farming with Fairtrade Cotton Project

2003-04 Arvind Brands Limited made subsidiary company of Arvind

14

2000 Garments Exports Division ‘Lifestyle Apparels’ established

1998 Established Santej Unit on 450 acres of land - shirting facility

1996 Set up Arvind Cotspin Ltd., an export oriented unit at Kolhapur, Maharashtra

1992 Increased the production of denim by modernising the Ankur Textiles plant located at Khatraj

1990 Nagri Mills acquired and renamed as Arvind Intex Ltd and Saraspur Mills renamed as Arvind Poly coat

1989 Started its Telecom Division with the production of RAXs at Pune

1987-88 Arvind enters the export market for Denims with an export oriented unit named Arvind Exports

1985-86 Sanjay Lalbhai led the ‘Reno-vision’ Commission and implemented first Denim plant and issued debentures

1939 Diversification with Anil Starch Limited followed by Atul Products Limited in 1952 for producing textile-related chemicals and dyestuff

1931 Laid the foundation of Arvind Mills raising a share capital of Rs. 25.25 lakh, Shri Kasturbhai Lalbhai,Shri.Chimanbhai Lalbhai,and Shri.Narottambhai Lalbhai

15

BOARD OF DIRECTORSMR. SANJAY S. LALBHAI(CHAIRMAN AND MANAGING DIRECTOR)Mr. Sanjay S. Lalbhai, 60 years, is the Chairman and Managing Director of the Company. He is a Science Graduate with a Master's degree in Business Management and has been associated with the Company for more than 35 years.

MR. JAYESH SHAH(DIRECTOR AND CHIEF FINANCIAL OFFICER) Mr. Jayesh K. Shah, 54 years, is the Wholetime Director with the designation of Director and Chief Financial Officer of the Company. He is a Commerce Graduate and a Chartered Accountant and has been with the company since 1st July, 1993.

MR. PUNIT LALBHAI(EXECUTIVE DIRECTOR & SUSTAINABILITY CHAMPION)  Mr. Punit Lalbhai, 32 years, is an MBA from INSEAD (France) specializing in Strategy and General Management, along with Post-Graduate degree in Masters of Environmental Science from Yale University, and a Bachelors degree in Science (Conservation Biology) from University of California, USA.

MR. KULIN LALBHAI (EXECUTIVE DIRECTOR) Mr. Kulin Lalbhai, 28years, is an MBA from Harvard Business School (USA), along with a Bachelors degree in Science (Electrical Engineering) from Stanford University, USA. He has held several leadership positions during his academic role

16

 

OTHER DIRECTORS

Dr. BAKUL H. DHOLAKIA(Non-executive and Independent Director) 

Ms. RENUKA RAMNATH(Non-executive and Independent Director)

Mr. DILEEP CHOKSI(Independent Director) 

Mr. VALLABH BHANSHALI(Independent Director) 

Mr. SAMIR MEHTA(Independent Director) 

17

Associated brands with Arvind mills

Gant Ed-hardy Izod Geoffrey beene Wonder bra Hanes Arrow Flying machine Elle U.S. Polo assn. Mega mart Next Debenhams Cherokee Excalibur Nautica

18

INTRODUCTION TO THE COMPANY

About USPAU.S. Polo Assn. brand products are authentic and officially sanctioned by the United States Polo Association, the governing body for the sport of polo in the United States since 1890. Today, our products are sold through our licensing program in over 135 countries at independent retail stores, department stores and U.S. Polo Assn. brand stores.

The U.S. Polo Assn. brand carries clothing for men, women and children, as well as accessories, luggage, watches, shoes, home furnishings and more.

U.S. Polo Assn. brand products are authentic and officially sanctioned by the United States Polo Association (USPA), the governing body for the sport of polo in the U.S. since 1890.USPA Properties, Inc., a wholly owned, for-profit, tax-paying subsidiary of the USPA, manages its licensing program in over 135 countries through independent retail, department, online and U.S. Polo Assn. brand stores.

19

Primarily featuring sportswear for men, women, and children, the product offering has expanded to include accessories, luggage, watches, shoes, home furnishings and more.

As the steward of the Association’s marks, Properties’ mission is to develop a long-term source of revenue to help underwrite numerous programs for education about and promotion of the sport of polo in the U.S., from memberships and handicaps, to clubs and tournaments; from interscholastic programs to Team USPA mentoring; with particular concern for equine welfare and player safety throughout.

Established in 1890, the USPA provides resources to over 4,500 individual members and 250 polo clubs across the U.S. and Canada, including promoting the game of polo, coordinating the activities of its Member Clubs and Registered Players, arranging and supervising polo tournaments, competitions and games and providing rules, handicaps and conditions for those tournaments, competitions and games, including the safety and welfare of participants and mounts.

In 2012, “60 Minutes” aired a special feature on polo’s resurgence in America and included several interviews with dedicated players and ambassadors in the United States. The segment highlighted one of the USPA’s specialty programs, Work to Ride, which is dedicated to helping inner-city youth in Philadelphia through polo and other equine activities.

20

History 1890 - 2012Polo is perhaps the oldest organized sport of any kind, according to some historians, as written references indicate that Alexander the Great (356 – 323 BCE) knew of the game. It was first played in the United States in 1876, introduced by James Gordon Bennett, Jr. (May 10, 1841 – May 14, 1918), who had first observed the game played in England. Bennett came to be known as father of American polo as it was he who assembled the players, knowledge, equipment and Texas horses to play the first loosely structured matches in the United States. During that winter of 1876, the first game was held indoors at Dickel’s Riding Academy in New York and the first formal U.S. club was established, the Westchester Polo Club.The first USPA headquarters was appropriately located in New York, the center of polo at that time. The Association began operations on a voluntary basis of committee structure and continues as such today with a small office staff. Elected Officers and Governors serve annually along with appointed Committee Members.

USPA membership originally included seven clubs and, the following year, 142 players registered and there were five new clubs. In its early days of organization, the Association initiated changes in the number and length of time periods (chukkers) in a match. Equipment became standardized and pony training improved significantly. This prestigious international polo tournament was played at the time when the Kentucky Derby, Wimbledon and the British Open were all new events in a sparse sporting calendar. Though the British won that first match at Westchester easily, the Americans would use the defeat as a

21

catalyst to improve their game strategy and the quality of their horses. The Association continued the series and the United States won nine of the next eleven matches including the 1939 competition, when the tournament was played for the last time at Meadowbrook before a crowd of 40,000. The Cup was not played again until 1988, when the United States defeated an Australasian team in Lexington, Kentucky. The U.S. won again against England in 1992 and later lost to the British in 1997.In 1904 another important tournament evolved, the United States Open. The first Open was won by the Wanderers, who scored 4-1/2 to the Freebooters 3. The tournament resumed in 1910 and continued every year with the exception of 1911, 1915, 1917, 1918, and 1942-1945. The U.S. Open Polo Championship® would become polo’s most prestigious tournament still played annually and most recently at the International Polo Club – West Palm Beach, Florida.During these early years of the USPA, one of the more famous players in polo was Foxhall Keene, handicapped for 14 years at 10 goals, and then 16 years at 9 goals. Though there were many other greats, four players stood out in the 1890s and early 1920s. They were: Harry Payne Whitney, the Waterbury brothers, Larry and Monty and Devereux Milburn. These four players were known as the original “Big Four” and won the Westchester Cup in 1909, 1911, and 1913. Milburn would go on to play in seven international matches and established a reputation as one of the most outstanding players of all time. Credited with creating and leading the “Big Four”, Harry Payne Whitney played a pivotal role in the sport by helping develop a more fluid open form of play integrating better teamwork.By 1913, Circuit Cup play began with the first USPA Inter-circuit Cup held in 1916. The USPA claimed 1,407 members and began registration of the ponies as well though pony registration would later be dropped in the 1920s. College polo came of age and indoor polo grew in popularity championed by George Sherman and Robert A. Graviss.

22

Contributing to the growth of polo during this period was the U.S. Army, who after joining the USPA in 1902, encouraged their members to participate in polo to improve their riding ability. From that time until World War II, the military would play a significant role in growing and sustaining the sport of polo by adding significant numbers of players and polo ponies.Polo’s greatest era began in the years between the first and second World Wars. The sport not only survived the Great Depression, but expanded into the 1930s with increased international competition. The number of registered clubs had increased to 88 and playing membership was 2,889, of which 1,276 were military players. Louis Stoddard, a ten-goal player and member of two Westchester Cup Championship teams served as Chairman from 1922 to 1936. By 1928, another international match, The Cup of the Americas, was initiated between highly rated teams from the U.S. and Argentina. The U.S. Team won the first two competitions; however, from 1936, Argentina would go on to be the victor in future matches. The 1930s also saw women creating an impact on the sport, though they would not become official USPA members for years to come.During polo’s heyday it was only fitting that Hollywood would become involved with this great sport. With a wonderful climate for the game and the appeal for movie stars and moguls, California polo expanded. The geographic spread of polo led to the first East-West match up in 1933, with the West winning two of three matches, proving the Westerners were a force with which to be reckoned. Humourist Will Rogers, a talented player and supporter of polo was thrilled. He is still remembered today as saying, “The hillbillies beat the dudes and took the polo championship right out of the drawing room and into the bunkhouse”.The USPA completed two major strategic planning efforts (2005 and 2011) that resulted in many new and

23

innovative programs and services that were designed to grow and sustain the sport. Polo continues to grow stronger, with current membership exceeding 4,500 members, many of whom are women players. Over two hundred fifty clubs and intercollegiate and interscholastic schools are registered with the USPA. Continued growth at the collegiate level assures a bright future as polo’s strength depends on these young players of tomorrow.

What is KPI’s ???

A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.),

and sometimes success is defined in terms of making progress toward strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organization. 'What is important' often depends on the department measuring the performance - e.g. the KPIs useful to finance will really differ from the KPIs assigned to sales.

Since there is a need to understand well what is important, various techniques to assess the present state of the

24

business, and its key activities, are associated with the selection of performance indicators. These assessments often lead to the

identification of potential improvements,

so performance indicators are routinely associated with 'performance improvement' initiatives. A very common way to choose KPIs is to apply a management framework such as the balanced scorecard.

Management uses performance measurement primarily for monitoring purposes,

and many performance indicators have been developed to support operational decisions.

These indicators are, at best, descriptive signals that some action needs to betaken.

To make them more useful, put in place decision rules, which are compatiblewith organizational objectives.

This way, you can determine your preferred courseof action based on the indicators’ values.

To clarify trends when the activity level may vary over time, or when comparingorganizations of different size, you can use indices to measure maintenance perfor-mance.

Campbell classifies these commonly used performance measures into threecategories, based on their focus:

1. Measures of equipment performance25

(eg, availability, reliability, and over-all equipment effectiveness)

2 Measures of cost performance (eg, O&M labor and material costs)

3 Measures of process performance

(eg, ratio of planned and unplanned work,schedule compliance)

KPI’sThere are 5 kpi of U.S. POLO ASSN. (E.B.O.)

1. A.S.P(Average selling price):-it is the selling price of per article sold.

Formula= sale/quantity sold

2. A.T.V(average transaction value):-it is the value of per bill or transaction made.

Formula=sales/no. of bills

26

3. U.P.T.(unit per transaction):-it is the units or no.of article sold on per transaction.Formula=Quantity sold/no. of bills

4. Conversion(walk-in into sales):-it is the transformation of people who visited store to people who buy something.

Formula=(No. of bills/walk-ins) *100

5.PSFPD:-(Per square feet per day) saleFormula=sale/area

Current position of the store

(all the figures are real ,from 1 jan till 19-jan-15)

27

Target achieve %achieve

ASP 1900 2252 119ATV 3500 3773 108UPT 1.90 1.68 88Conversion

45 30 68

PSFPD 250 247.7 99

For the month of janurary(U.S.P.A. saket)

Store target =1 crore

Achieve=5482481

Achieve%=54.82

Balance=4517509

Factors affecting K.P.I.s28

There are various factors which influence the performance of the store.

These factors always have some impact on K.P.I.

Some factors have direct & some have indirect impact.

Some of the factors can be controlled but for some factors you cannot do anything.

For better understanding we divided the fctors in 2 categories:-

1. External factors:- which can’t be controlled at this level.Store or its staff cannot do any thing to manipulate these factors.

2. Internal factors:- which can be controlled at this level.Store or its staff can do

29

any thing to manipulate these factors.

Types Factors affecting K.P.I.s

Factors

External factors Internal factors

External factors

Internal factors

Walk-in Staff motivationBrand image Area occupiedCompetition Stock

availabilityClimate Stock varietyOccasions After sales

services30

Consumer Trends

Store display

Pricing Behaviour

External factors1.Walk- in:- The total no. people who came inside your store. Or people who visited our store.It has direct relation with the ratio of Conversion Walk-in conversionEx. 200 people walk in & 70 people buy(i.e. conversion rate is 35%).

31

2.Brand image:-image means our position in customers mind or your reputation in the market.good brand image sale

Ex. For rich:- uspa is affordable & normal brand

For poor:-uspa is expensive & premiumbrand

3. competition :- the more will be the competitiors ,the more frequent change in KPI. & vice versa.day by day it is increasing.

Ex. In 2013:-louis phillp,zara etc.In 2014:- Beverly hills,polo ralph laurenetc.

4. climate :- climate have direct impact on demand & sale.if winter is getting heavier day by day then,

32

demand will automatically keeps on increasing.Ex. In winters :- demand for winter wearsIn summers:-demand for summer wearsIn rainy:-no demand.

5.Occasions/weekends :- during Occasions & weekends there is increase in sale.

weekends saleEx. Monday: 150,000Saturday:350,000Diwali:550,000

6.Consumer trends:- it is also known as “trend flirting”.as we all are humans,so your trend or fashion keeps on changing.”trend which makes us look distinctive ”

33

Earlier: bell bottom denimsNowdays: narrow or slim fit denims

7.pricing:- pricing is a very vast term here it means M.R.P. of the articles.because all the discounts ae calculated on this MRP only.it must be affordable by targeting class along with recovery of all costs with some ratio of profit also.

34

Internal factors1.Staff motivation:- it has direct impact on kpi. The more the staff is motivated,then there are more chances of increase in sales.

motivation performanceEx. Staff can be motivated by incentive,stick or carrot method,estimulating greed.

2.Area occupied:-more the carpet or work area of store,the more will be variety & more will be the output & vice versa.

Ex. Saket store(630sq.feet)-1 crore revenueStore in shoppers stop(200sq.feet)-10 lakh

35

3.stock availability:- it simply means different sizes of stock in hand in front of the customer.or the goods your are holding.Ex. more sizes in hand=more revenueless sizes in hand=less revenue

4.stock variety:- it simply means variety of stock in hand in front of the customer.or the diversification of goods your are holding. more style in hand=more revenueless style in hand=less revenue

variety choicesEx. We have 8 colour in polo teesWe have 3 colour in polo tees

36

5.After sales services:-last but important factor in the process of marketing.how you behave with our customer once the sales is done.

Ex.if your after sale services are satisfied then customer will never hesitate in coming to your outlet next time & vice versa.

6.Store display:-to some extent it is visual merchandising.it is the physical look-out of the store, from piling of clothes to front look of the store.different stores adopt different strategies.Ex. Size wise , colour blocking, category wise.Attractive store walkins

37

7. Behaviour :- “how you behave with others will reflects your personality”.It means your response to customers, welcoming, patience, smile, confidence make them comfortable etc.

sometimes customer comes not by brand name but how you welcome or behave with them.

CONCLUSIONWe conclude by keenly observing the factors which affect the kpi’s of USPA retail outlet(E.B.O) :-

38

Factors can external or internal,but it always have some impact on KPI’S.

Some of them you can control, but for some you cannot do anything.

There is correlation between the external & internal factors.

any change in factor will change your KPI’s for sure.

Different plans & strategies need to be follow with every factor.

First the internal factor needs to be changed,then external.

Any Change in external or internal factors directly or indirectly manipulate the other factors.

LEARNING

39

Retailing is not numbers, retailing is people, who are working with you,for you,above you.

You are dealing with people who have emotions, not with the robots.

USP is created by you, maximum times it is not there.

Being F.C.(fashion consultant) one should understand person emotions ,without getting emotional.

Little bit visual mechandising. Setting & distribution of targets. Now I understood how “Take care of

small things, makes big things fall down into places.”

Application of science of Kinesics & proxemics in real world.

Working in voyager(sotware). What are KPI’S & factors affecting it.

40

Piling of clothes is a art.(logo must be visible,all buttons must be close etc).

Behaving in corporate world although it is front end work.

Real value of time & money.(till now which I was killing).

With great power comes great responsibility(from rajiv sir).

Lead from behind & let them think they are leading(from rajiv sir).

41

Strength or appreciation

The following points are the USP’s of my store.which makes it distinctive from others

Customers are assets of the retail business and the retailer can’t afford to lose even a single customer(employees understand this things very well).

Every one Greet customers with a smile.

Assist them in their shopping.

all sales representatives help the individuals buy merchandise as per their need and pocket.

42

They Give the individual an honest and correct feedback. If any particular outfit is not looking good on anyone, they tell him the truth and suggest him some better options.

Never compromise on quality of products. They always tries to satisfy customer because it will brings five more individuals to the store. Word of mouth plays an important role in Brand Promotion

They are Never rude to the customer, instead help him to find something else

43

the signage displays all the necessary information about the store and it is installed at the right place visible to all.

Suggestions & recommendations

In my store(USPA,selct city walk), there is literally a scarcity of stock(in this period of sale).

Store is in need of some new strategy.

For best,Renovation can be done(The furniture, walls and the mannequins need to be changed

carpet area needs to be increased(The customers should be

44

able to move and shop freely in the store).

More trial rooms(I observe,in sale, customer just left the product just because of rush in trial rooms)

The store give a cluttered look. Choose light and subtle colours for

the walls to set the mood of the walk-ins.

more merchandise should be displayed at the entry or exit of the store.

Each and every merchandise should have a security tag.

Install a generator for power backup and to avoid unnecessary black outs.

Choose light and subtle colours for the walls to set the mood of the walk-ins.

The store manager must conduct frequent training programs for the sales representatives, cashier and

45

other team members to motivate them from time to time.

46