MAX RETAIL ORGANISATIONAL STUDY

AN ORGANISATION STUDY AT “MAX FASHION RETAIL”

CHAPTER 1 INTRODUCTION & INDUSTRY PROFILE

1.1 INTRODUCTION TO STUDY: Background of the study Organisation is set of people working together for accomplishment of a common objective. The roles and responsibilities are stated clearly without any ambiguity. The positions occupied by different individuals are presented in the form of organisation chart. Organizational structure is essential for continuity of the mission & co-ordinates & controls the business activities. Organization helps management to perform its actives effectively, optimum use of technological improvement growth & diversification, creatively, effective use of physical resources & HR. Need for the Study: This study is taken up to full fill the requirement of M.B.A degree course of Bangalore University. The training is undertaken during July 2012 to August 2012 and the main purpose of the training is to know the application of the theoretical aspects in our course in the corporate environment and gain first-hand experience and expose ourselves to corporate policies, ethics, culture, practices, procedures, facts about the work culture and policies of the company. Objectives of the study: To understand the organization structure or hierarchy of the company.  To understand the working of the various departments.  To enable us to gain an insight into the corporate world.  To understand the various responsibilities and duties carried out by each department.

RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 1.2 ABOUT INDUSTORY Retailing in India is one of the business enterprises of its economy and accounts for 14to 15 percent of GDP. The Indian retail market is estimated to be US$450 billion and one of the top 5 retail markets in the world. India is one of the fastest growing retail markets in the world. India‟s retailing industry is essentially owner mannered small shop accounts for more than 90%.

In 2010, larger format convenience store and super markets accounted for about 4 % of the industry, and these were only in large urban centres.

Until 2011, Indian central government denied foreign direct investment (FDI) in multi brand retail, forbidding foreign groups from any ownership in supermarkets, convenience store or any retail outlets. Even single brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India‟s Central government announced retail reforms for both multi brand stores and single brand stores. These market reforms paved the way for retail innovation and competition with multi brand retails such as Wal-Mart, Carefour and Tesco, as well as single brand majors such as IKEA, NIKE and APPLE. The statement flickers intense activism, both in opposition and support for the reform.

In December 2011 under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus.

In January 2012, India approved reform for single brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership but imposed the requirement that the single brand retailer source 30% of its goods from India. Indian government continues the hold on retail reforms for multi brand stores. India has a large and aspirational middle-class of 75 million households or 300 million individuals. Middle-class consumers want products which are value-driven. India also has 500 million Indians under the age of 25. Young Indians are driving purchases in mobile phones, fashion, accessories, food and beverages, quick service restaurants, etc. Young Indians have access to more money than before and with this RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” have come independence, aspirations and a demand for products. According to the 2010 World Wealth Report by Capgemini and Merrill Lynch Wealth Management, the rise in the total number of millionaires (or Indians with investible assets, excluding main residence and consumer durables, of more than US$ 1 million) grew almost 51%, the second fastest in the Asia Pacific region.

The earliest form of retail merchandising was the exchange of food and domestic goods. Later came traders and peddlers, and by 3000 BC shops had become common. During the Greek and Roman period, stores, including many specialty shops, developed in the form of open booths, attracting large cosmopolitan crowds. After the decline of the Roman Empire, barter became more important, but by the 14th century, retail trade again assumed importance. Merchants, who in early times were viewed with suspicion, rose in the social scale. Small stores, each carrying its special line of goods, reached their peak in the 18th century. The wholesale business developed, and travelling salesmen and standard prices came into general use. In the late 19th century, the department store came into being, a large-scale general store or a combination of single-line stores in which each line of merchandise is operated as a separate department. Such stores provided the convenience of easy accessibility to a large variety of goods. Modern department stores have been vital to the development of shopping centres and malls, huge retail developments that contain a wide variety of stores and services. Chain stores, though known in earlier times, first developed their modern form in 1859, when the Great Atlantic and Pacific Tea Company (A&P) standardized the quality and price of all merchandise sold in its stores. Through central management, quantity purchasing, standardization of business methods, and limited individual service, the chains are often able to sell their goods well below prices charged by independent stores. Chain stores were once typified by five-and-ten-cent stores (e.g., F. W. Woolworth Company, which operated such stores until 1998), but the most common forms now are discount superstores (e.g., WalMart; see Walton, Sam), bakeries, tobacco stores, drugstores, groceries, and department stores. Consumers' cooperative stores (see cooperative movement) have been established in Europe and the United States. Discounting merchandise became widespread after World War II, and stores specializing in discounted merchandise have become the fastest growing segment of the retail industry. RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” The "discount club," where shoppers must pay a fee to become members and namebrand products are sold at a discount (often packaged in multiples or very large containers), became popular in the 1990s.

INDIAN RETAIL INDUSTRY The India Retail Industry is the largest among all the industries, accounting for over 10 percent of the country 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. The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behaviour, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centres, multistoried malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organised retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favourable and the emerging technologies facilitating operations.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organised retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013. India is the country having the most unorganized retail market. Traditionally it is a family livelihood, with their shop in the front and house at the back, while they run the retail business. More than 99% retailers function in less than 500 square feet of shopping space. Global retail consultants KSA Techno-park have estimated that organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is estimated at around Rs 900,000 crore, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. There is no doubt that the Indian retail scene is booming. A number of large corporate houses Tata, Raheja, Piramal and Goenka have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category. The Indian retail RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies, or having a well thought out branding strategy.

1.3 TYPES OF RETAIL SHOPS

Department store: A department store is a retail establishment which satisfies a wide range of durable goods and products to the consumer's personal and residential needs and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting goods, do it yourself, paint and hardware and additionally select other lines of products such as food, books, jewellery, electronics, stationery, photographic equipment and baby and pet needs. Certain department stores are further classified as discount stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.

Discount stores: A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewellery, electronic equipment, or electrical appliances. Discount stores are not variety stores, which sell goods at a single price-point or multiples thereof. Discount stores differ from variety stores in that they sell many name-brand products, and because of the wide price range of the items offered. Currently Wal-Mart, the largest retailer in the world, operates more than 1,300 discount stores in the U.S. Target and Kmart are WalMart's top competitors. Wal-Mart as of 2004, owns 90% of the Asda chain of supermarkets in the UK. As of 2008, the main rival to Asda is Tesco.

Warehouse stores: A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns and RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” villages. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce.

Variety stores: A variety store or price-point retailer is a retail store that sells inexpensive items, often with a single price for all items in the store. Typical merchandise includes cleaning supplies, toys, household goods and gardening equipment. Formerly many variety stores had lunch counters for inexpensive meals. In India example of variety store is Usha product store.

Demographics: Demographics are current statistical characteristics of a population. These types of data are used widely in sociology (and especially in the subfield of demography), public policy, and marketing. Commonly examined demographics include gender, race, age, disabilities, mobility, home ownership, employment status, and even location. Demographictrends describe the historical changes in demographics in a population over time (for example, the average age of a population may increase or decrease over time). Both distributions and trends of values within a demographic variable are of interest. Demographics are about the population of a region and the culture of the people there. Here it includes retailers that aim at one particular segment.

Mom-And-Pop: It is a retail outlet that is owned and operated by individuals which focuses on a range of products that are very selective and few in numbers. These stores are seen in local communities and often are family-run businesses. The square feet area of the store depends on the store holder.

Specialty stores: RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Specialty stores are a typical specialist store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

General store: General store a rural store that supplies the main needs for the local community Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: Vast self-service warehouse-cum-retail

outlet

that

combines

the features of

a supermarket, department store, discount store, and specialty store in one location. Also is called hyper mart. In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.

Supermarkets: A supermarket, a large form of the traditional grocery store, is a self-service shop offering a wide variety of food and household products, organized into aisles. It is larger in size and has a wider selection than a traditional grocery store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box shop.

Malls: The Malls has a range of retail shops at a single outlet. They are loaded with products, food and entertainment under a roof. In such type of retailer customer can get a lot of products in a single shop. It is beneficial for the customer in term of time saving and in term of money saving.

Category killers or Category Specialist: RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Category killers or Category Specialist are supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.

E-retailers: E-retailers customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non-secure credit card transaction. Example: Amazon, Pennyful and eBay.

Vending Machines: This is an automated piece of equipment wherein customers can drop the money in the machine andacquire the products. It is more user friendly for the customer then other types of the retails. In this customer can achieve his product easily. For Example on the railway station by putting the coins and you can check your weight. And by putting money in machine and get soft-drink product. Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.

Other types of retail store include:

Automated Retail stores: Automated retail is the category of self-service, standalone kiosks in heavily trafficked establishments such as airports, malls and resorts. The kiosks are usually a turn-key solution with the necessary hardware, technology and services required to maintain an automated, small-footprint retail store. Consumers select products using a touch screen interface, pay for purchases using a credit or debit card and then the product is dispensed, sometimes via an internal robotic arm in the machine. RV Institute of Management

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Big-box stores: A big-box store (also supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store. The store may sell general dry goods in which case it is a department store, or may be limited to a particular specialty (such establishments are often called "category killers") or may also sell groceries, in which case some countries use the term hypermarket.

Convenience store: A convenience store, corner store, corner shop, or bodega (in Spanish-speaking areas of the United States), is a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, and newspapers. Such stores may also offer money order and wire transfer services. They differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores. A convenience store may be part of a gas/petrol station. They may be located alongside busy roads, in urban areas, or near railway stations or other transportation hubs. In some countries, convenience stores have long shopping hours, some being open 24 hours. Convenience stores are usually more expensive than regular grocery stores or supermarkets, which they make up for with greater convenience by existing at more locations and having shorter cashier lines.

General store: A general store, general merchandise store or village shop is a rural or small town store that carries a general line of merchandise. It carries a broad selection of merchandise, sometimes in a small space, where people from the town and surrounding rural areas come to purchase all their general goods. The store carries routine stock and obtains special orders from warehouses. It differs from a convenience store or corner shop in that it will be the main shop for the community rather than a convenient supplement.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 1.4 PLAYERS IN MARKET

AV Birla Group: Currently, there are over 575 supermarkets and 12 hypermarkets. All the supermarkets are branded 'More.' and the hypermarkets are branded 'More Megastore'. The company has over 11,000 employees and has a pan-India presence more supermarkets are neighbourhood stores with the core proposition of offering value, convenience and trust to the customers and averaging 2,500 square fit areas. The hypermarkets are selfservice superstores offering value and range in food and non-food products and services at a single location. Hypermarkets are located in large catchment areas and encourage mass consumption with discount prices and substantial depth of assortment with an average store size of 55,000 square fit shopping area. Within a short span of less than three years, more has more than one million members as part of its loyalty programme. More has also launched a huge range of private labels in food and grocery, staples and apparel which have already obtained a significant share of category as well as salience with the consumer. It has a strong presence in apparel retail and owns renowned brands like Allen Solly , Louis Phillipe , Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of Rs 10000 – 12000 crores till 2014.

Trent: It is a subsidiary of the Tata group it operates lifestyle retail chain, book and music retail chain, consumer electronics chain etc. Trent is a retail operations company that owns and manages a number of retail chains in India. Established in 1998, Trent runs lifestyle chain Westside, one of India‟s largest and fastest growing chains of lifestyle retail stores, Star Bazaar, a hypermarket chain, Landmark, books and music chain, and Fashion Yatra, a complete family fashion store. Westside, the lifestyle retail chain registered a turnover of Rs 4.58 million in 2014.

Landmark Group: Founded in 1973 in Bahrain, the Landmark Group has successfully grown into one of the largest and most successful retail organizations in the Middle East and India. An international, diversified retail and hospitality conglomerate that encourages


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” entrepreneurship to consistently deliver exceptional value, the Group operates over 1300 outlets encompassing over 20 million square feet across the GCC, India, Egypt, Turkey, Jordan, Lebanon, Yemen, Sudan, Kenya, Libya, Nigeria and Pakistan. The Group employs over 40,000 people and invested Rs. 400 crores to expand Max chain, and Rs100 crores on Citymax 3 star hotel chain. Lifestyle International is their international brand business. Landmark Group has successfully grown into one of the largest and most successful retail organizations in the Middle East and India.

K Raheja Corp Group: The K. Raheja Corp Group is recognized as one of India's biggest retail houses. The group‟s flagship brand Shopper‟s Stop is spread across the country and has more than 10n branches. Shopper‟s Stop is the only member of the Intercontinental Group of Departmental Stores (IGDS). The IGDS is an organisation that consists of 30 experienced retailers from all over the world. K Raheja has a turnover of Rs8.75 billion which is expected to cross US$150 million mark by 2014. Segments include books, music and gifts, apparel, entertainment etc.

Reliance: Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited under Mukesh Ambani is Reliance Group‟s foray into organized retail. RRL is based on the growth strategy of backward integration, and it generates inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers. RLL is the second largest retailer in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company‟s outlets also provide vegetables, fruits, and flowers. Reliancehas more than 300 Reliance Fresh stores, they have multiple formats and their sale is expected to be 120,000 crores.

Pantaloons: Pantaloons Retail has 450 stores across the country and revenue of over Rs. 20 billion and is expected to touch 30 million by 2010. Segments include Food & grocery, etailing, home solutions, consumer electronics, entertainment, shoes, books, music & gifts, health & beauty care services. RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Provogue: Provogue was incorporated on November 1997 as Acme Clothing. It is engaged in retailing of apparels and accessories in men and women segment. The company launched its brand „Provogue‟ in March 1998.The name was changed to present one on March 2005. Company‟s brands are retailed through leading national chain stores such as Shopper's Stop, Lifestyle, Globus, and Westside etc. Total Income - Rs. 5842.972 Million (year ending Mar 2011) Net Profit - Rs. 334.054 Million (year ending Mar 2011).

Raymond Limited: Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of global conglomerate Raymond Group. Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron wool. Total Income - Rs. 19590.372 Million (year ending Mar 2012).

Arvind Limited: Arvind Limited started 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 fullfledged facilities for dyeing, bleaching, finishing. Total Income - Rs. 36724.9 Million (year ending Mar 2012).

Arrow Textiles: Arrow Textiles was incepted in 1983 as Arrow Webtex. It has been manufacturing elastic and non-elastic tapes. The company has grown steadily and gradually, expanding its capabilities as a garment trim supplier by adding woven labels and printed labels in 1992. Merchandisers require that suppliers of trims have many qualities. To witness quick turnaround of samples, perfect colour matching, colour fastness. Total Income - Rs. 296.647315 Million(year ending Mar 2011) .Net Profit Rs. 13.745621 Million (year ending Mar 2011).


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Subhiksha: Subhiksha is a Chennai based decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq. ft. with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs. 300 Cr. to ramp up its operations to 1200 stores by 2008.

Bharti-Walmart: In Bharti WalMart plans include US$ 7 billion investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Wal-Mart. Wal-Mart will do the cash & carry while Bharti will do the front-end.

RPG group: RPG group is One of the first entrants into organized food & grocery retail with Food world stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencer‟s Hyper, Super, Daily and Express formats and Music World stores across the country. RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 5.5 billion in 2012. It is planning to venture into books retail, with the launch of its own bookstores “Books and Beyond” by the end of 2013. An IPO is also in the offering, with expansion to 450+ Music World, 50+ Spencer's hyper outlets covering 5 million sq. ft. by 2012.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 1.5 INDUSTRY VOLUME The Indian retail industry is valued at $450 billion, with organized retail cornering 4.5 %. The organized pie is expected to see a growth at a CAGR of 37 %.

Size of the industry: By 2014 the organized Retail Sector in India is expected to triple its size. The food and grocery retail sector is expected to multiply five times in the same time frame. The market size of Indian retail industry is about US $450 billion presently. Output per annum With growing market demand, the industry is expected to grow at a pace of 25-30% annually. Position in world market Today India is the fifth largest in the world in terms of Retail Industry Market capitalization In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of the Indian retail market is estimated to be around Rs. 22, 00,000 crore ($450 billion) and the annual growth rate is 5.7%.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 1.6 CURRENT SCENARIO The real GDP is expected to grow at 8 to 10 per cent per annum in the next five years. As a result, the consuming class with annual household incomes above Rs 90,000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Consequently, the retail business in India is estimated to grow at 13 per cent annually from USD 322 billion in 2006-07 to USD 450 billion in 2011-12,” The study also shows that the unorganized retail sector is expected to grow at about 10 per cent per annum with sales rising from USD 309 billion in 2006-07 to USD 496 billion in 2011-12. The turnover for retail trade measured in current prices increased by 1.8 percent from July 2011 to July 2012. Retail trade for consumables (such as goods sold in department stores and specialized grocery stores) showed an increase of 2.4 percent while durables (such as clothing stores, furniture stores, second-hand goods stores and mail order houses) increased by 1.2 percent. The retail trade sales volume increased by 0.3 percent from June 2012 to July 2012. During the last three-month period (May to July), the sales volume decreased by 0.1 percent compared to the previous three-month period (February to April). FDI in retail The government has cleared the most awaited reforms allowing up to 51 per cent in Foreign Direct Investment (FDI) in multi-brand retail, paving way for the international multi-brand retailers interested to set up shop in India.


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CHAPTER-2 ORGNISATION AND PRODUCT PROFILE

2.1 Company History About land mark group: 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, Libya, Nigeria and Pakistan. The Group employs over 40,000 employees. The Landmark Group provides a value-driven product range for the entire family through a diverse portfolio of core retail brands. Centrepoint (a destination bringing together the Group‟s core retail brands), Babyshop (one-stop destination for kids between 0-16 years) Shoe Mart (multi-brand footwear and accessories store) Splash (multi-brand fashion retailer) Lifestyle (home décor, fashion accessories, beauty products, gifts and much more) Beautybay (beauty, health and well-being store); Iconic (fashion, art, make up, salon, café, and gadgets); Home Centre (a complete home experience) Q Home Décor, (premium home ware, furniture and home accessories store), Candelite (snacks and confectionery store) and Emax (large format electronics store). Landmark International (a division that includes international franchise brands New Look, Koton, Reiss and Lipsy) Shoe Mart International Footwear Division (a division that includes franchise footwear brands Kurt Geiger, Ecco, Pablosky, Dumond, Nose, Radley, Foot Solutions, Steve Madden and Carpisa). The Group also includes value retail brands such as Max (value fashion and footwear store) and Shoexpress (value footwear and accessories store). The offerings have evolved to be the preferred choice for consumers and positioned as „category killers‟. An international retail company that grows with its customers, the Group continues to capture greater market share in the Middle East. As it ventures into new markets, the company remains focused on the needs of its customers. Quality for Landmark is not a question of price. Across its retail concepts, the company strives to provide value at RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” every price point, a strategy that has helped the Group achieve a consistent annual growth rate of 23 per cent. The Group was awarded the Retail Company of the Year at the Arabian Business Awards in 2010, Business Excellence award in the Re-export category at the Mohammed Bin Rashid Al Maktoum Business Awards 2008 & 2010, Retailer of the Year at the Retail City Awards 2008, the Middle East Retailer of the Year at the Retail Middle East Awards in 2007 and 2008, the Most Admired Middle East Retailer of the Year and the Most Admired Retail Company of the Year at the Retail Middle East Awards 2011. Besides retail, the Group has also diversified into leisure, food and hotels segments with Fun City (chain of indoor entertainment centres for children and teens); Foodmark (a division that includes franchise and joint venture brands such as Mango Tree, Mango Tree Bistro, Carluccio‟s, Chi‟ Zen, Max‟s, The Meat Company, Tribes, La Gaufrette, Bazerkhan and Ushna; as well as the home-grown brand Wild Ginger and Zafran), Spaces (grooming and relaxation centres), Balance Wellbeing 360 (includes holistic Wellness

Club and Balance Café), Citymax Hotels (comfortable budget

hotels) and Fitness First (fitness and wellness centres) and iCare Clinics (Primary healthcare clinics for the family).The Landmark Group has also created a comprehensive infrastructure including its own logistics and distribution division to support its retail operations. Landmark‟s Logistics and Re-distribution Centre is one of the largest privately owned and operated re-distribution centres in the Jebel Ali Free Zone. It handles up to 56,000 containers on an annual basis and is spread across a sprawling 3.1 million square feet, equipped with state-of-the-art systems. A company that is founded on sound ethical fundamentals, the Group also seeks opportunities to contribute to the societies and communities where it operates Responsibility (CSR) is not merely about charity, but also about playing a more responsible part in the society, be it within the organisation or towards its stakeholders, environment, society and the world at large. In 2009, the Landmark Group adopted diabetes awareness as part of its long term CSR initiative. An initiative that aims to increase awareness amongst people regarding the condition, Beat Diabetes was kicked off in the UAE. Today „Beat Diabetes‟ has a presence seven countries namely UAE, Kuwait, Oman, Qatar, Bahrain, KSA and India In 2011 over 35,000 people walked with the Group for the cause and free blood glucose tests were conducted for over 40,000 people. In

India,

the

Group‟s

Chairman, Micky Jagtiani initiated the LIFE Trust programme (Landmark RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” International Foundation

for

Empowerment)

in

2000.

LIFE

focuses

on

rehabilitating the less fortunate through various programmes and initiatives such as delivering non-formal education in rural areas, setting up health centres in urban slums as well as training centres for the underprivileged youth and imparting life skills training.

ABOUT MAX FASHION RETAIL

MAX is the international value fashion brand of the Dubai based Landmark Group. The brand was launched in the UAE in May 2004 with a unique concept of delivering international fashion & value to the discerning shopper. Max was introduced in India with its 1st store in Indore in 2006 offering apparel, footwear & accessories for the entire family; for women, men, children including a fashionable range for infants. With a great range of western & ethnic wear for the young shopper, it makes a perfect shopping destination for people for all age groups. At MAX, shoppers can expect the latest in international fashion from around the globe & an excellent range to choose from; all of this offered at great prices in a world class shopping environment. Max retails its own label merchandise of in house designs and planned colour palettes for the season. Every season it 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. Today, MAX is the largest value fashion brand in the Middle East with over 200 stores across 15 countries. In India, the brand in the next 2 years, will take its current store count of 40 to 75.Max offers fashion clothing, footwear, accessories and household products at amazing value, all


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” under one roof Launched in UAE in May 2004, Max is today the largest value fashion retail chain in the Middle East. Max caters to the mid-market section of the population. With 114 stores across UAE, KSA, Jordan, Kuwait, Bahrain, Qatar, Oman, Turkey, Egypt, Yemen & India, MAX plans to expand its network in more potential markets within the Middle East & beyond. With stores that typically measure 18,000 - 30,000 sq. ft., Max retails private label clothing for men, women and children as well as footwear and home accessories. A great shopping experience with fashionable products at superb value is an assurance that makes Max customers "Look good. Feel good."

CSR (Corporate Social Responsibility) Max along with its parent company (landmark) come together as and force, to make a difference in people‟s live, supporting landmark group sponsorship at breast cancer awareness campaign across its entire store in UAE. Max retail helped spread the message providing details of tree screening. While raising money for a local breast cancer support group. A gesture that sow max and landmark group bond with the local community while doing its share for global awareness about breast cancer. Adding support and individual level, every staff member on the shop floor as well as the corporate office supported breast cancer badges and pushed the sale at the badges to raise as much money and increase awareness of the campaign.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Max India Proposition

Key Facts about MAX India: 

Landmark Group (Dubai) launches the first Max Store at Indore in March 2006



Contemporary fashion at affordable prices.



International design & ambience.



Average Store size 18,000 sq. ft.



Family store with core Target audience between 18- 35 yrs.



22 stores functional

2.2 VISION AND MISSION OF THE COMPANY Vision To create a truly global brand that provides growth opportunities for the company and its employees, whilst achieving its goal of becoming the number one value fashion retailer across the Middle East & India. RV Institute of Management

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Mission 

Be a market leader in the field of value retailing.



Provide fashionable products at affordable prices.



Be innovative, cost effective and globally competitive.



Exceed our customer‟s expectations.



Provide opportunities of growth for our employees.

Core Values 

Constant focus and development on the product & value offered.



Continuous improvement of the customer‟s shopping experience.



Commitment towards staff training & development.



Encouraging open work culture.

2.3 MILE STONES OF COMPANY

IN YEAR 06-07 Max started and in that year the sale was 27 cr and from then to now in YEAR 11-12 the sales are estimated to be Rs. 650 cr. 

One Million Sq. Ft (Retail Space)



Rs. 1,057 Cr. Sales



Sell thru 92% (Post EOSS)



LFL Target 30%



Sales Mix 93% from fresh season



8 new stores in Andhra –Karnataka Region



4 each in Andhra & Karnataka


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 2.4 PRODUCT AND SERVICE PROFILE

Max Retail operation area is Retail in garment product like Western wear collection, Ethnic collection, Kids Wear collection, Means Wear collection, Foot Wear collection, Accessory and Concessionaires items are available in max retail store. In Max Retail 4th block Jay Nagar total products are arrange according to the customer need and according to the Marketing Department product promotion and strategy. 

WESTERN WEAR DEPERTMENT



ETHINIC DEPARTMENT



KIDES WEAR DEPARTMENT



MEANS WEAR DEPARTMENT



FOOT WEAR DEPARTMENT



ACCESSORIES



CONCESSIONAIRIES

According to these department products are arrange in sub department. And these categories are also helpful for the customer selection of the product.

WESTERN WEAR DEPERTMENT In western Wear department items available are: 

SPORTY (Sports T-shirts and Track pants) these are product of Max, Jockey, Kappa, FAME and Denizen Company.



YOUNG/SLIM (T-shirts/shirts, Trousers & Skirts) for the young age group from 16 to 26 years. And Company is max.



CORELINE/COMFORT (T-shirts/shirts, Trousers & Skirts)



LINGERIE ZONE (Inner Wear) (Bra & Panty)



NIGHT WEAR (Gowns, Sets, Knit Top, Chemise)



DENIM ZONE (Denim Bottoms, T-shirts, Shirts)

ETHNIC DEPARTMENT In Ethnic wear department products are regard to the festival and tradition. And on the time of festival season product sales are generally higher then rest of period.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 

FUSION (Zone) - Skirts (long and short),Kurti, Short Kurta



TRADITIONAL (Zone)medium kurta , long kurta , salwar ,chudidar

KID’SWEAR DEPARTMENT In kids wear department have one of the best collections of garment. Many times this department has been appreciated by the higher authority of Max Retail. And kids wear department always have attraction point for the customer. In kids wear department products are arranged based on the not on the size but on base on the age group. Age group is starting to 0 to 3 month infant to 8 to 14 years boys and girls. These products are presented through planogram and in planogram product are based on story like sporty and angel story. These product are belongs to Max brand product. 

INFANT BOYS (ZONE)

T-shirts, Shirts, Trousers, Denims



2-8 BOYS

(ZONE)




8-14 BOYS

(ZONE)




INFANT GIRLS(ZONE)



2-8 GIRLS



8-14 GIRLS (ZONE)

T-shirt, Shirt, Trousers, Skirts, Denims

(ZONE)

T-shirt, Shirt, Trousers, Skirts, Denims T-shirt, Shirt, Trousers, Skirts, Denims

MENS WEAR DEPARTMENT 

Formals (zone)



Semi formals (zone) shirts and trousers



Casual non denim (zone) t-shirts/shirts/trousers/cargos



Denim (zone)



Inner wear



Active wear/sports wear shorts/jackets

shirts & trousers

denim jeans/t-shirts/shirts, jackets briefs and vests

FOOT WEAR DEPARTMENT In foot wear department products are from Max company product and some of less popular brand like 360 company product. 

MENS



LADIE

Shoes (Formal, Casual, Sports) Sandals, Slippers High Heel, Medium Heels & Flats, Sports & Casual Shoe


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 

KIDS



HOSIERY Socks / Shoe Polish / Shoe Brush Shoe Horn

Infants, Girls & Boys Shoes and Sandals

ACCESSORIES Accessories mainly comprise of: Necklace

Bracelet

Earring

Anklets

Clutches

Clips

Caps

Gift Items

Bags

Albums

Photo Frame

Ties

Leather

CONCESSIONAIRES These are brands like Peter England, John Players, Bossini, Levis, Jockey, Etc., which form part of MAX stores offerings.

MAX SUB DEPARTMENTS Men’s Wear: Men‟s Wear department is placed on third floor, and here all types of man‟s items are available. Formals, Semi Formals, Fashion Formals, Casual Non Denim, Denim, Active Wear, Inner & Sleep Wear Kid’s Wear: Kid‟s wear department is placed on second floor and all kids and infants are available on this floor (2 – 8 years (Boys & Girls). Women’s Wear: Women‟s Wear department is placed on ground floor and all types of women‟s items available on this floor. Core, Slim, Denim, Sports, Night Wear Women’s Ethnic Wear: Ethnic Wear department is placed on first floor and all ethnic garments, Kids, Menes, Ladies, Traditional, and Fusion available there.


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2.6 COMPETITORS ANALYSIS Comparisons among the Retail Stores:

(Reliance, big bazaar and life style) Reliance retail limited: (RRL), a subsidiary of Reliance Industries Limited under Mukesh Ambani, is Reliance Group‟s foray into organized retail. RRL is based on the growth strategy of backward integration, and it generates inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers.

RLL is the second largest retailer in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company‟s outlets also provide vegetables, fruits, and flowers.

Subsidiaries & division under Reliance Retail are: Reliance Fresh - Retail Outlets of fruits, Vegetables & Groceries Reliance Digital - Consumer Electronics retail Store Reliance Jewels – Jewellery Reliance Time Out - Lifestyle store of Books, Music, Movies, Toys, Gaming, Fragrances, Stationery Reliance Trends - Apparel and Clothing During the year 2011, RRL opened 51 new stores pan India, taking the total to 100 stores across key markets in the country. Across India, Reliance Retail serves over 2.5 million customers every week. Its loyalty programme, "Reliance One", has the patronage of more than 6.75 million customers. RLL has employee strength of above 5001


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Big Bazaar: Type-hyper market Discount Store Value Segment Founded in 2001 HeadquartersJogeshwari, Mumbai Industry-retail Promoter-kishorebiyani Parent-Pantaloon Retail India Ltd Punchline- “Issesastaauracchakahinnahin” Currently 106 outlets India‟s first hypermarket retail outlet Approx. 50000 sq. fit One stop shopping at discounted prices Provides best products at best prices Targets price-conscious majority segment of customers Classless destination Big-sized Indian “Mandi”- Big Bazaar. Started purely as a fashion format including apparel, cosmetics, accessory and general merchandise First Food Bazaar format was added as Shop-InShop within Big Bazaar in the year 2002 Big Bazaar and Food Bazaar -blend the look, feel and touch of Indian bazaars with modern retail concepts of choice, convenience and quality.

Wills lifestyle: The ITC-owned premium apparel brand that has registered strong growth in metropolitan and tier I cities, is now eyeing the smaller towns, especially the tier II and III cities. The apparel brand plans to open 20 stores in cities such as Mangalore, Mysore and Jodhpur in the next 12 months. The company has entered 10 new cities including Jalandhar, Coimbatore and Guwahati in the last year-and-a-half.Currently, Wills Lifestyle has around 80 stores, of which 30 were set up in the last 18 months. “Our plan is to make Wills Lifestyle products easily available to the customer,” Atul Chand, divisional chief executive of ITC‟s Lifestyle Retailing said.The company also plans to develop different collections for different cities, bearing in mind the tastes and preferences of customers in the cities they are set to enter.


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Comparisons: Parameters

1. Parking

2. Parking fee Refundable

Big bazaar

Insufficient space

Yes

Reliance

Wills Life style

sufficient space

Multi-level parking Creates a lot of Space for parking.

Yes

No

3. Brands

Excellent collection of brands

Average number of brands

Large number of brands

4. collection Within brands

Updated collection of merchandise

Outdated Collection

Not a Wide verity of Merchandise

5. Information Store layout

Layout blueprint Display on each floor

Not available

Detailed blueprint is displayed at Various Points

6. Layout

Plenty of space Unutilized

Service escape is not properly Designed

Layout been Utilized well both Inside and outside of the mall

7. Lighting

It is excellent

Average

It is excellent

8. Billing counters

Are many Avoid the waiting time

Not a Many counters its leads to queuing

Are many which avoid the waiting time

9. Security

Efficient security Personnel with thorough checking of bags

Efficient security Personnel

Efficient security Personnel


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 2.7 POLICIES OF THE ORGANIZATION Customer service

Return policy: 

To ensure that the return of the purchased items is a smother process, we request our customer to comply with the following terms.



Product will be valid within 14days of the purchase date of respective store.



Bar code should be attached at the time of returning of product.



In within 14days product quality should like resale.

Policy for the employee: In max fashion company have many policies to directing and managing the total entire organisation. 

Working hours and weekly offs



Leave policy



Compensatory offs



Salary advance



Punctuality & attendance



Dress code



Separation



Employee gifts



Employee discounts



Medical claim policy



Personal accident policy

The total working hours for all employees is 48 hours per week. The weekly off for the store employee is one day every week by rotation from Monday to Friday. 

Shifts Per Day:

2 Shifts



Working Hours:

8 Hours



Lunch Break:

45 minutes



Tea Breaks (2):

15 Minutes each


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Leave policy: All Employees in employment at the store level irrespective of the grades are eligible to: 

Casual leave



Sick leave



Earned Leave



Maternity leave

Compensatory offs: 

In case any of the employees had to work on his Weekly Off day/ National & Paid Holiday, he will be given a compensatory off on the day convenient to both the company and the employee.



This compensatory Offs cannot be accumulated more than 3 and has to be availed in the same month or in case of emergency in the following month.



Compensatory Offs will not be enchased.



No Leave can be merged with Compensatory offs.

Salary advance: All employees who have completed their specified period of probation and are on the permanent rolls of the organization are eligible for salary advance. In case of emergencies, the employees can be paid salary advance up to a maximum of 75% of their last drawn net salary (take home pay) and the same will be recovered from their salary within the next two months from which the advance is taken. Employees must fill in the salary advance requisition form [available with ASM / SM] The salary advance form has to be approved by the immediate superior and by the concerned Store Manager, then should be forwarded to the H.R. dept for processing at least a day ahead of the actual requirement.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Punctuality & attendance: Attendance has to be marked through Access Control Card and the muster roll Repeated late attendance and absence from work would be considered unsatisfactory performance. Continuous absenteeism for more than 10 days without prior approval or information would be considered as voluntary resignation from the organization.

Dress code: All the employees are expected to be formally dressed (R5 & below who are given uniforms are to be in the same)

Separation: An employee who wishes to resign from service may do so through a letter of resignation to the Store Manager. The letter of resignation must be dated and should cite reasons for the resignation and desired effective date of resignation. The employee should give the organization the notice period or salary in lieu of notice as applicable to their grade given below. 

M1:

2 Month or 2 Month Gross Salary in lieu



R5 & R6:

1 Month or 1 Month Gross Salary in lieu



R1 - R4:

During Probation 15 Days or 15 Days Gross Salary in lieu/ On

Confirmation 1 Month or 1 Month Gross Salary in lieu 

The services of an employee shall be terminated by the Organization with immediate effect on grounds of violating organization‟s code of conduct in which case no notice or salary in lieu of notice shall be given

Employee gifts: When a confirmed employee is getting married or is blessed with a child, he/she will be presented a gift worth Rs.500/- by the company.

Mode of Operation: Keep the HR informed about your upcoming marriage at least a week ahead and the arrival of the new tiny entrant in your family within a week


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Employee discounts: All probationary & permanent employees of our organization will be eligible for the 15% discount on the purchase of merchandise at any of our stores. 

The discounted value cannot exceed beyond the stated limits given below.



Store Manager will be recording the same.



Employees must show their identity cards or record their employee code at the cash counter when the bill is being prepared.

Grade M1 R6 R5 R4 R3 R2 R1

Amount 180000 100000 65000 30000 25000 11000 10000

Medical claim policy This policy aims at assuring best treatment in reputed hospitals without paying cash and thereby reduces the financial burden of the employees o R1- R5- Cover for Self and Spouse up to Rs 50,000 o R6 - M2 - Cover for self and dependents up to Rs 1,00,000 

Dependents include Spouse, Children and Parents only


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Personal accident policy: This policy aims at extending financial assistance to the families of the employees at time of distress such as accidents. 

The Group personal Accident policy covers only accident related health Insurance / death. The following are the sum assured for different category of employees.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 2.7 COMPANY STRUCTURE / CHART


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 2.8 MANAGEMENT OR BOARD OF DIROCTOR

Mr.Vasant Kumar Executive Director

Mr.C.S.Shekar Senior VP Operations

Mr. Ramnath VP Supply Chain

Mr. Utkarsh Mohan Head Sourcing

Mr. Nilesh Joshi Head Projects

Mr. Raghu Rajagopalan AVP Finance


Page 35

AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 2.10 ACHIVEMENT AND AWARDS 

Mr. Micky Jagtiani is chairman of the Landmark Group has won the "Entrepreneur of the Year" award at a ceremony held by Middle East Business Achievement Award in November, 2008.



Lifestyle wins “The Most Admired Retailer Award” Department Stores, Images Retail 2008



Landmark Group wins “Retailer of Year” honor at Retail City Awards for 2008

FUTURE PLANS OF COMPANY To be among the top three retail players in three of the fastest growing retail markets in the world (Middle East, India and China) And in India open new 200 stores till 2014 is next plan.


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Max store location in India

Delhi – Laxminagar & Rajouri Noida Unitech Mall Agra – Taj Nagari Lucknow – E City Ahmedabad – Satellite town Indore – MG Road

Mumbai - Vashi & Kharghar& Bhyander,Ghatkopar, Mulund, Goregaon Pune Kalyaninagar Hyderabad – Banjara Hills & Begumpet

Bangalore – Commercial Street & SPAR, Oasis Centre, Indiranagar

Franchisee Store: Calicut


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.1 HUMAN RESOURCE DEPARTMENT

Human Resource in Max Retail, among the various factors of retailing, which are used in the organization, human resource is the most important. This is because the efficient use of physical resources ultimately depends on how the human factor is put to good use on various operations. Human resource management is a process of bringing people and organizations together so that the goals of each one are met, effectively and efficiently. It is responsible for people dimension of the organization. The entire scope of functions relating to HR in MAX FASHION has been organized under three levels, viz. Corporate, Regional and Project levels. The responsibilities vary from level to level depending on the tasks assigned, accountability and implementation criteria. An overview of these functions is hereby given in this section. Human Resource Department of MAX fashion is very dynamic. Employees are the biggest strength and asset of any organization and the HR dept. realizes this very well. This is very evident from the way the HR department handles all its employees. They take utmost care to select, train, motivate and retain all the employees. They have continuous developmental programmers for all the employees. Currently MAX fashion Jay Nagar is employing 100 full time and 50 part time employees. There are two shifts for the employees. The first shift employees arrive at 10.00 am in the morning and leave at 5.00 pm in the evening, while the second shift employees report at 2.00pm in the afternoon and leave at the time of Store closing (10pm). Sources of Recruitment The following are the main sources through which MAX fashion recruits its employee.

Consultancy Services: For top level management, employees are recruited through private consultants. They are usually appointed as Departmental Managers.

Walk-ins: This is the main source through which MAX fashion recruits its employees. People seeking job usually themselves approach the HR department for job vacancy. Employees usually selected from this source are appointed at the entry level as team members. RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Employee Referrals: This is the other main source through which employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behavior and performance in the job. If they receive a positive opinion from their previous employer they are selected.

Campus Recruitment: Young people bring new ideas and fresh enthusiasm. Therefore MAX fashion visits some of the reputed educational institutions to hire some of the most talented and promising students as its employees. Selection Procedure The following is the selection procedure that the HR department practices to hire its employees.

Interview: For entry level jobs, the candidates are interviewed by a HR person. They are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidate‟s ability to communicate freely and also other skills.

Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few questions which basically test their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done as Managers are required to work under stress all the time and still maintain a cool head to make some vital decisions.

Group Discussion: In campus recruitment students are involved in a Group Discussion, where they will be given a topic on which the group has to deliberate, discuss and arrive at a solution or a decision which is accepted by the whole group. Along with the G D they are also given a written aptitude test. Finally a formal interview will be conducted to assess the overall skills of the student. Induction: New employees selected will be given a 13 day induction and training program. They will be given information about the company‟s business, different departments etc. They will be informed of their roles, duties and responsibilities. They will also be informed about the HR policies and rules of the company. The new employees will be RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” on probation for a period of 6 months. After this period the HR period along with the department manager will review. The performance of the employee if the employee‟s performance is good and encouraging, the employee‟s services will be confirmed. Compensation & Rewards: The employees are rewarded suitably with attractive pay packages. The salary of an employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. The employee dependents are also entitled for medical treatment in recognised hospitals with cashless hospitalisation with which the company has tie-ups. If a hospital is not recognised, the amount spent by the employee will be reimbursed. Along with these all the employees are given a card known as „EmployeeDiscount card‟ (EDC) through which they can buy any product MAX FASHION

at a special discount of 15-20%. Leaves and other rules: An

employee during his probationary period is entitled for 7 days of leave. A confirmed employee is entitled for 30 days of leave in a year. There is only one type of leave the employees can take which is known as All Purpose Leave (APL). All the employees will be given identity cards which they have to wear and also swipe while at the time of entering and leaving the Store.

Performance Appraisal: The HR department conducts performance appraisal of all the employees annually in the month of April. Based on their performance increments will be given in their pay. In addition to this if an employee achieves or exceeds the target given to along with their team members will be provided with attractive cash and other incentives.

Culture at MAX FASHION: At MAX FASHION, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years our skilled & qualified professionals work in an environment where change is the only constant. Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers‟ lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at max fashion and living with the change, a habit. Leadership is a value that is followed by one and all at max fashion RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. The quest of creating an Indian model of retailing, max fashion Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the future, but create it. At max fashion Retail you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards. At max fashion you will work with some of the brightest people from different spheres of industry. We believe it‟s a place where you can live your dreams and pursue a career that reflects your skills and passions.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.2 MARKETING DEPARTMENT

Marketing Department marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. For a firm in order to implement the marketing concept it has to focus its attention on the consumer, ascertain his/her needs, discuss and wants before Every Brand appeals to individual customers in different ways. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. This maintaining good relationship with the customers is the key to business success and hence the concept relationship marketing. Traditionally, marketers have located their target market segments, presented their offer, and made the sales. It's always been a single step process. Relationship marketing looks at customers and clients over a longer term. It takes into account the lifetime value of a customer. Many experts think it costs anywhere from six to ten times as much, to find a new customer, than to sell to an existing one. With those financial realities in mind, the approach makes some sense, and some real dollars. Relationship marketing is based on the idea that people prefer to do business with people who they know and like. After all, it's easier to buy from a friend, than from someone you've never heard of before. It's a matter of building trust. It's said that people need to hear an offer at least seven times before they buy. That concept certainly works against the single step marketing method. The Marketing department is responsible for marketing of Max retail‟s products through different media like TV, radio, newspapers, banners, placards etc. The marketing department has to decide and identify the most effective medium to attract the customers to Max retail thereby increasing the sales. The department has to design creative and attractive advertisements through which the company‟s products can be promoted to the customers. The company has to visit different companies and has to enter in tie-ups for all its advertisement campaign. The marketing department also consists of another separate department which is known as „Visual Merchandising. Visual merchandising is an art by which a retailer makes the store talk to its customers. The colours, signage, lights, look and feel, everything is taken into account. It is very important to figure out what is the story, the picture, the idea that is being sold to the customers. Another concept that was incorporated in Max retail from RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” the beginning was that of „Category management‟ as opposed to the brand merchandising practice that is followed by many retailers. Category management is based on the belief that a customer walks into a store looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store is designed according to the categories like men‟s formal wear, women‟s western wear or a casual wear, kids wear etc. Within the organisation too, teams were divided according to the categories that they managed, rather than the brands. Max retail wanted to have a complete bouquet of products in each category at different price-points, design, fabric, size and colour. The objective was to create „traffic drivers‟ within the Store rather than make brands compete with each other. Focusing on categories also helped to achieve a level of perfection within the specific segments. This department is responsible for the attractive product arrangement in the Store with respect to their nature. The basic function of this department is it divides the Store into some departments based on the nature of the product and also within the department it decides how the products should be arranged keeping in mind the customers taste. It also arranges the products to attract the customers and also ensure easy availability of products.

MARKETING FUNCTION IN MAX RETAIL

Product management: Product management is also an important strategy in MAX RETAIL. In the MAX RETAIL each and every product are useful and run able product in the market. Product would be changed if those are not sold on the market.

Brand management: Brand management is also important strategy in the way of which brand should be for sale in the store, because it is gives impact on the customer. Every brand has its market value and it is also gives impact on the store image.

New product development: understanding the market demand and based on that selection of new product according to customer and according to the session demand.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Promotion: Promotion is one of the market mix elements. The specification of five promotional mix promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. 

To present information to consumers as well as others.



To increase demand.



To differentiate a product.

Advertising: Advertising for existing product is one of the important functions for the marketing department. Adverting of product is done through internal or external in social way. Internal advertising is done by the product promotion and product awareness for existing customer. And external advertising is take place through by external media promotion. Such as TV, RADIO, HORDING, BANNER, PAPER, etc.

Marketing communications: Marketing communications is the process of the filling the gap between customer and organisation. In MAX RETAIL such types of activity is followed for Inner member circle customer. Those customers are benefited through session offer and awareness of upcoming offer information, which is provided by the MAX RETAIL.

Retail Planning: Team is responsible for monitoring and executing the retail plans, budgetary control to ensure the performance of the store are via a via the business target and to report performances of products.

Visual Merchandising: Team is responsible for planning, developing, establishing and maintaining efficient display, signing and merchandise presentation program for the retail / service activities within the stores. Concessionaire team is responsible for handling all brands in MAX stores.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Sales and sales promotion: Sales and sales promotion is also marketing strategy for which is give a positive result. Showing the higher sales report makes brand value in customer. And customers are also gives attention on those types of retailor.

Services marketing: Providing service for customer is also a marketing function .Which makes customer satisfaction and attracts the customer for next time coming in the store.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.3 STORE DEPARTMENT

In any retail sector store department is very important department to maintained whole entire outlay. Max retail outlay store department have many importance, total shop is depend on the support of the store department. Store department control the flow of the supply.

Functions of Stores Department:

Material Planning: This consists of ascertaining the need of the various departments in the matter of materials and stores and devising such policies that all the materials which have constant demand and also some critical non-wearing materials are constantly available so that they are supplied to the user departments without delay. This includes classification / categorization of items, codification, designing of recoupment policies, taking `make or buy' decision and also preparation of stores budget.

(b) Procurement of Stores: This includes purchase of materials of required quality and quantity at reasonable prices. This activity also includes development of sources of supply with due emphasis to development of ancillary industries, small scale industries and indigenous sources for imported items (import substitution). This also includes, maintaining constant touch with the market to ensure steady flow of materials.

(c) Receipt & Inspection of Stores: This includes taking delivery of materials from carrier, checking of quantity and quality and their account. RV Institute of Management

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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” (d) Store Keeping: This includes stocking of materials in the wards, their handling, issuing on demand by inventors and maintaining proper records.

(e) Distribution of Stores: This includes timely dispatch and distribution of materials to various users by adopting quick and right mode of transportation.

(f) Collection and disposal of scrap: This activity is main revenue earning activity of Stores Department these days.

(g) Inventory Control: Inventory control means keeping the overall costs associated with having inventory as low as possible without creating problems. This is also sometimes called stock control. It is an important part of any business that must have a stock of products or items on hand. Correctly managing inventory control is a delicate balance at all times between having too much and too little in order to maximize profits.

(h)Cost Reduction: Management Department can contribute a lot on cost reduction. Some of the techniques used for this purpose are:

1) Variety Reduction 2) Standardization 3) Value Analysis 4) Forecasting.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” ORGNISATION STORE STRUCTURE

Store Manager

Asst. Store Manager

Department Manager

Cashiering /IT / Inventory/VM

Senior C R M

CRE


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.4 FINANCE DEPARTMENT

Finance department is the backbone of Max. In Max finance department plays an important role starting from procurement of material till the sales is made. Finance department tries to ensure that adequate funds are for the resources that are required to help achieve the organisational objectives. The department also ensures that the costs are controlled, that there is an adequate cash flow, and also that it establishes and further controls all profitable levels. A lot of transaction takes place every day at Max. Some of it he important functions performed at Max by finance department includes:

Obtaining needed inventory: To satisfy customers, Max maintains inventories that involve a sizable expenditure of funds. Finance department receives the trends and forecasted demand from marketing department and budget the expanses and then make spending on it.

Financial planning & control: At Max finance department involves in analyses short-term and long-term money flows to and from the company. It helps the company to optimize profit and make best use of money. In controlling process company compares its actual revenues, costs, and expenses to those projected. Max holds at least monthly financial reviews as a way to ensure financial control. Such controls provide feedback to help reveal which accounts are varying from the financial plans.

Managing accounts receivable: Operating funds are very much essential to carry day to day business operations which are collected from sales. Max sells various products every day, some on cash and some on credit for which payment is made through credit cards. Max tries to in cash those transactions as quick as possible. In some cases company use some of its available funds to pay for the goods or services already given to customers. In order to collect that money as soon as possible, financial managers plans to offer such as cash or quantity discounts to purchasers who pay their account by a certain time. Max in order to overcome these circumstances provides special discount to Visa holders.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Tax management: Financial managers also handle tax management, the analyzing of tax implications of various managerial decisions in an attempt to minimize the taxes paid by the business. As tax laws change, finance manager carefully analyze the tax implications of various decisions in an attempt to minimize taxes paid. Max also takes help of external parties in various decisions in order to minimize taxes.

Meeting other departments need: The other departments of Max are also depends on finance department for various needs. Purchase department writes to finance department and finance department allocate funds to purchase department. Marketing department does so many activities including add campaign for which they depends for money to finance department. Likewise all other departments depend on finance to fulfil their needs.

Organizational finance department structure

FINANCE MANAGER

SENIOR ACCOUNTANT

CASHIER


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.5 INFORMATION TECHNOLOGY DEPARTMENT:

Information Technology provides the technological support to help meet the business objectives while taking into account the functional needs. IT integrates the entire organization and the business activities and also helps to network all the resources to ensure we keep ahead in the Industry. The importance of information technology in retail stems from the importance of data. Data is nothing but information that aids decision making. The right data, in the right form to the right setoff people at the right time, is one of the greatest tools in the hands of the retailer. Information is always with reference to a particular time frame. After selecting some goods he proceeds towards the billing counter. Here the billing clerk scans each product at the POS (Point of sale) terminal the total number of items and the bill amount is added up. While doing so he has so checked with the customer if he is a member of the store‟s loyalty program. The customer confirms that he is, gives him the store card for entry makes the payment by way of credit card and exits the store with his purchases. While to the customer it is just a routine purchase, let us look at the information that the store has gathered from this transaction and how the information helps the retailer

Collection of Data: The use of technology aids data collection. Data can be collected about consumers, their purchases the frequency of their buying and the typical basket size. This information helps the retailer distinguish the customers who shops at his store frequently and also reward them. For example information gathered about a customer may reveal preferences for certain brands; this may be used for further communication with the customer regarding promotional offers etc. The data on purchase made is also passed on to the credit card organization for payment to the merchant establishment and also for billing the customer.

Efficiency in Operations: The items purchased provide information on merchandise sold in the store; this is the basis of sales analysis and decisions on replenishment re-ordering and merchandise planning.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” Helps Communication: Communication within the organization can be faster with the use of software like Lotus Notes. Retail stores can also communicate with each other and with the warehouses. This can be done 24 hours a day and seven days a week. Electronic Data Interchange (EDI) can also be used for communication with suppliers and vendors.

Efficient Stocking of merchandise: The items purchased provide information on merchandise sold in the store; this is the basis of sales analysis and decisions on replenishment re-ordering and merchandise planning. If this information is passed on to the manufacturer; it can help reduce production time. This is particularly true in case of fashion items, which have a very short life cycle. For example data gathered in this manner may indicate youngsters buying certain styles in Jeans or colours, in the tee shirts from the store. To service this section of the audience the retailer may need replenishments faster. The use of technology aids the collection and transmission of information. The trends in sales can be analyzed. This helps avoid situations of stock out helps spot merchandise or products timely markdowns and higher inventory turns.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 3.6 QUALITY ASSURANCE DEPARTMENT:

Quality Assurance team is responsible for sourcing of vendors for product capability, internal procedures, social compliance and related activities for Max retail. They take care of fabric development and sourcing as per the design team requirement.Quality control is a process that is used to ensure a certain level of quality in a product or service. It might include whatever actions a business deems necessary to provide for the control and verification of certain characteristics of a product or service.The main role of a quality assurance analyst is to develop and put in place quality assurance standards, processes, tools and evaluation methods for the information technology services of an organization.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 4.1 Strengths 

Demographic favor:



Employee support: In Max Retail employee support is very good. Employees are giving those best efforts.



Shopping convenience: In max retail have a lot of product for the customer which are convenience.



Changing consumer habits and lifestyles of the customer.



Plastic card revolution: Max retail is not allowing less than 40 micron plastic.



Greater availability of quality retail space.

4.2 Weaknesses 

Limited consumer insight: Max Retail target to the specific customer in the market



Inadequate human resources.



Underdeveloped supply chain-underdeveloped logistics infrastructure.



Lack of adequate utilities.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 4.3 Opportunities Potential for investment: Max can also invest in other retail format. 

Location advantage



Sectors having high growth potential



Fastest growing formats



Rural retail



Wholesale trading: Max can do Wholesaling trading for general store.



E-retailing: Max can do Its business through E-retailing process.Max is a global retail having store in 11 countries worldwide.



Good collection of almost all apparels(ethnic wear,children collection,men‟s collection etc)



Medium range product affordable to most.



Attractive visual merchandising.



Beautiful ambience


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 4.4 Threats (External) 

Government policy



Growing Inflation



Stiff competition



More promotional efforts by other brands



Local retail stores can give competition in near future.



Future threats from players like Reliance which is adopting penetration strategy to lure customers.



Membership cards under loyalty programmes are starting late. Other brands have started and implemented it successfully.



Price wars among key competitors.



Decrease in consumer demand.


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AN ORGANISATION STUDY AT “MAX FASHION RETAIL” 5.1 FINDINGS 

Max appeals not only customer from higher income group but also customer with lower income. Different products line starts with the base prices of 200, 250 and so on.



Max strictly follows the planogram which helps them to plan how store is going to look.



Max has a unique product line for kids. In the product line different sizes clothing line is available from 1 month to 12years.



Max does not have proper inventory management, due to which many times stock are not placed in adequate numbers.



In foot-ware section product are not from well-known brands.



Max does not have its own cafeteria for employees working there.



Max does not have adequate office space for conducting meetings.



Customer profiling has shown that there is a significant relationship between itself and the marketing strategies adopted by the retailers in the retail stores as the strategies are formulated according to the needs and preferences of the customers.



MAX is considered as one of the best brand in by the customers.



The competitiveness of the MAX is moderate as compared to the similar stores.


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5.2 Conclusion The India retail currently stand at USD $450 billion and likely to go further at 12 % to Increase to triple size by 2014. Retail sector (including both organised an unorganised) is the second largest employer after retail sector in India. Many international retail brand is also putting theirs steps in Indian market. Max is also one of them. Max fashion in JayNagar 4th block Bangalore has the second highest turnover. It provides a wide range of product in clothing, accessory, cessionary and footwear. Being environment conscious, max used more of paper back and other biodegradable materials. Max lack in adequate work force as per the present requirement. In this growing market Max is trying to expend its product line coming further.


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5.3 Suggestion Max needs to spend more on advertisement so that brand becomes popular in minds of customer. Max needs to install efficient ERP tool for inventory management and control. It would help the company to have a smooth flow of inventory. Max need to put efforts in foot-ware section. In order to compete with other retail brands Max need to have well-known brands in foot-ware section. Proper facilities like cafeteria will help the company to increase employee motivation and reducing the time taken during recess. The company need to have a separate meeting hall for conducting various meeting. The proper training and development program for sales executive team will help to build more efficient & effective sales personal.


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BIBLIOGRAPHY Books Kothari C R- Research Methodology Methods and Techniques (New Age International Publishers), Kotler Philip-Marketing Management (Prentice Hall of India)

Edited Volume Michael Levi M and Weitz BW- Retailing Management (Tata McGraw Hill) Luck and Rubin- Marketing Research (Prentice Hall of India).

Journals Marketing journal “winning in India‟s Retail sector”.

Reports and Gazettes Retail Industry global report 2010

Newspapers and Magazines Business Line, Economic Times, Business Today, Times of India, Frontline, Business India, .

Websites www.maxfashionindia.com/max.asp www.landmarkgroup.com/retail/fashion/max/ www.landmarkgroup.com/downloads/landmark_group_corporate_overview.pdf www.indianjournals .com www.indianjournalsofmarketing.com www.landmarkgroupme.com


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MAX RETAIL ORGANISATIONAL STUDY

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