Layout and interior and exterior design

Prepared byM.Karthik chinnarajaM.Sabarish kumarGowthamAthithanManoj kumar

Royal AgenciesHISTORYThe proprietor is K.Subramanium.One of the un organized players in the market.Perceived as South Indias largest retailer at the time of starting.Started in 1965 in Nanjappa roadStarted as multi storey building at that timeHouse and office needs, furniture items covering all the segments in the market.

LOCATION Having two shops in Coimbatore ( one in Avinashi road and Nanjappa road).

Head Office is at Nanjappa road with 3 floors.

Branch office started in 1999 at Avinashi road

No of employees are 12 in both units in showroom

LocationHead office located in the mid of the city where the traffic of the customers is very highMany Steel furniture Whole sale shops are located near by so that customers who are owning small shops looking for suppliers will prefer royal, which has more variety than other dealersThe branch office is located in Avinashi road covering the resident areas

Manufacturing facilitiesThere are three units for manufacturingEach unit manufactures particular product categoryHead office is owned buildingBranch office is rental building

CUSTOMERSTarget all segments from below to above of the poverty line.Targets both home, institutions and industrial usersSince the product range starts from Rs 500 and aboveIt focus on all segments

Average daily footfall is 15 customers per day

Average buyers varies from 3-4. per day

Products 20 % items are from Nilkamal and supreme furniture in plastic items70% items are private label manufactured by Royal agencies10 % items are imported from china and Malaysia(wooden and luxury items)Strictly followed policies includes no replacement and no exchange

Pricing Follows multiple pricing strategyPrice vary for well known customersIncrease in government taxes are charged from customers along with the billMark ups vary from 10-15%(apart from discounts)

PRODUCT PROMOTIONSPromotional activities are done in local exhibitions.No other forms of advertisement are doneStandard price with nominal discounts throughout the year is their strategy

Store design and layoutElements of store designExterior design-products showing entrance.

Straight front

Larger Parking Area

Entrance showing Products

Window display. Where you can see the products from outside.

Gardens which gives attractiveness

Exterior design

Name boards for royal is provided by branded goods like Godrej and Supreme furniture

Safety measures

Sand and water buckets present outside showroom

Inside the shop water line with compressor is present near godownLayout - free form layout

Space Planning

In this store large number of space is allocated to wooden cots and beds

40% allocated to cots

25% allocated to sofas

5% for plastic furniture

5% for admin purpose

15% for dressing tables office tables

5% for bureau cupboards

5% for store room and other purpose

Interior designLighting is much important in furniture store.White color light is used for display in order to provide accurate color of the goodsFloors are tiles. I.e. in light color. Which suits to the roof of the store.Yellow color is painted in walls which is attractive Large Mirrors are attached to the walls in the end of showroom in order to project there are more products in the showroomVisual Merchandising

FIXTURES

Steel racks are provided by branded company Godrej for displaying their lockers.

Only their branded items are allowed to display in that shelfs

Visual merchandising

Products are arranged in a coordinated wayPlano gram depends on the managing director and store managerCustomers may see all the products irrespective of price

Problems

Since all product categories are closely arranged the customer feels distracted

Sometimes cluster of products becomes less attractiveLogistics and Supply chainSupply Chain FlowDistributors Distributors are located in Chennai who imports goods and distribute to various outlets Each product category has different distributorsNilkamal and supreme furniture agent comes to showroom and check for stock, based on store manager decision number of units are decidedPrivate label products are ordered immediately after each unit sale and sent for displayStock keeping & Display Each manufacturing units have plenty of place to stock goods that are manufacturedBased on availability of place stocks from other units are also storedShowroom in Avinashi road also have space for stocking goodsAll new models manufactured are immediately displayedThree manufacturing units goods are displayed in two showrooms only no catalogue provided

Delivery to Customers Ordered goods are delivered to customers from godown stocks to avoid transportation costsPlastic items and small items involving low cost are transported from showroom itself If the product is not availableLead time depends on 15- 20 days for imported goodsLead time for private labels will be 1-10 days.

Logistics Goods are transported through trucks . It is the responsibility of supplier in Chennai to bear the costGoods are delivered from showroom to customers through hired vehicles and the charge is collected from customersHired vehicles are booked on situational and on day basisThe company has three owned vehicle

Logistics contd..No returns are accepted by dealers in ChennaiDamaged items are re worked and sold by royal itselfDamaged items from nilkamal and branded items ate taken by agents of the company itself during his next visitMerchandisingMerchandise planning Demand analysisSales forecast- past year sales units + 10% -15% stockSeasonal consideration- increase the stock during festivalsFor office segment and commercial institutions mainly they increase the production volume units by the month of April, May and June.Customers feedback and opinionCompetitors models

Budget considerationThey invest 15% extra amount in buying new models and design(imported and branded goods)For Private labels budget is allocated during each month end thereby avoiding less stockIn private labels they invest much less in new models

Types of Merchandise ProductsTypeof MerchandisePlastic Chairs , Steel tables officetablesSteadydemandWooden sofas ,cots , cupboards lockersSeasonal-festivalsMerchandise hierarchyMerchandise hierarchy contdKey components of merchandise planPlanned markdowns are not done in Royal If the product quality is bad in imported goods they are not returned backThe defect goods are sent to manufacturing unit and it is corrected and soldEmployee discounts are given in Royal. The margin is very low for employees, some case they dont collect margins from employees

Contd..Imported goods are ordered once in 3 months mostlySome times distributor calls Royal when the stock has arrived from China and MalaysiaThe models are selected by Managing director and the quantity of the product is decided by himRegarding private labels inventories are checked at the end of the monthDuring festival season inventory is checked weeklyFor branded items at end of every months company agents come and take orderAssortment planningThis is done by the store manager of two branchesModel stock plan is prepared and shown to managing director and shown for approvalNumber of units to be purchased are decided by managing director Merchandise procurementRoyal has a list of standard dealers and distributors in ChennaiThey evaluate the suppliers by the years of experience in businessThey avoid new suppliers who are unknownRaw materials for private labels are procured as whole sale in various parts of Chennai, Coimbatore

Negotiations Payment terms are negotiated during managing director visitAdvance is given initially Remaining amount is paid within 15- 20 days after the delivery of goodsAmount is paid in two or three installments sometimes

Private labelRoyal agencies has 70% of its product as private labelIt sells its product in many outlets across Tamil naduThe difference between price of branded and Royal product is 25% They make their own product through their own units

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