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RETAIL MARKETING LBS

R ETAIL A UDIT O F

R AINBOW C ASH & C ARRY

SUBMITTED TO:

SIR WAQAR-UL-QAYYUM

SUBMITTED BY:

UMAR BIN SOHAIL (BBA02113256)

FAHAD MUNIR (BBA02113257)

AOUN HAIDER (BBA02113018)

UMER JAVED (BBA02113075)

JAWAD ALI ARSHAD (BBA02113148)

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EHTSHAM QURESHI (BBA02113225)

T ABLE O F C ONTENTS

1) Executive Summary………………………………………………………..032) Introduction………………………………………………………………...043) Vision………………………………………………………………………044) Mission……………………………………………………………………..045) Objective…………………………………………………………………...046) Store Analysis……………………………………………………………...057) Location Analysis…………………………………………………………..078) Store Layout………………………………………………………………..089) Category Management……………………………………………………..1010) Relationship with the Store Brand…………………………………………1111) Pricing…………..……………………………………..…………………...12

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E XECUTIVE S UMMARY

Rainbow Cash & Carry is a departmental store having multiple lines of products ranging from household to FMCG’s. Rainbow cash and carry store is located at Rehmat Chowk, Wapda Town Lahore. It does not offer any retailing services to its customers and there is no banking facility available there. The frontline space is encroaching by the vendors and there is no proper car parking space anywhere near the store. Being a departmental store, RAINBOW had nurtured itself in assorting different categorical product under one roof and successfully managing it. From Everyday product to cosmetics they have it all. They follow the straight floor planning because they want customer to easily access every corner of the store and do not want their interest to be lost while searching for a certain product. They have captured large amount of audience by giving them the same market commodities at relatively cheaper price and due to this they have a high competitive advantage over other retail departmental store.

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I NTRODUCTION

Rainbow Cash & Carry is a spunky, ingenious super market shackle aimed at offering high-quality, moderately priced, occasionally unusual products using lofty shopper heed. They view themselves as cronies with their customers, their employees, their community and their environment. They aim to become a regionally recognized brand name, capitalizing on the sustained interest in Pakistan Super Market field. Their goal is moderate growth, annual profitability and maintaining their sense of heed towards their shopper. As Rainbow Cash & Carry is a departmental store so they have quite some variety to offer their customers at one place. They believe in self-sustenance and have their ethical retail values highly towards entertaining their customers with a number of products as well as offering indemnity over the loss of a customer. Rainbow Cash & Carry has been offering an assortment of products to its precious customers. From grocery to crockery, garments to jewelry, toys to kids wear, kitchenware to ornaments, electronic gadgets to fitness equipments, beauty products to health care accessories our valuable customers find each and every product of the best quality under one roof.

V ISION

Bringing excellence to the surface

M ISSION

We view our selves as cronies with our customers, employees, our communities and our environment.

O BJECTIVES (COMPANY)

Offering high quality of own goods. Moderately priced commodity. Occasionally unusual products using lofty shopper heed.

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Moderate growth Annual profitability

S TORE A NALYSIS

U TILIZATION O F A REA

Maximum utilization of per square feet area is done brilliantly and magnificently which in turn results in substantial amount of profit generation for the store.

S ALE S TRATEGY

In order to generate sales they are focusing on reducing their profit margin and selling the products relatively cheaper than any other departmental store.

O BJECTIVES (MANAGEMENT)

The basic objective of RAINBOW store is to maintain high customer satisfaction. For this purpose they provide after sales services, discounted markups on their products and in case of any certain mishap a total redemption of their purchase.

T ARGET M ARKET

The fundamental target market of rainbow store is upper middle and moderate middle class.

P ROMOTION

They promote their store through different set of channels i.e. promoting their brand name by advertising its name with other product on signage board, low pricing promotion and giving out information of store through social sites.

S.W.O.T A NALYSIS

STRENGTH: Low Price, MIS system and product promotional personnelWEAKNESSES: Services and parking facility

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OPPORTUNITY: Expansion of store in bakery and pharmacyTHREAT: Rivalry of local market

P OSITIONING

The basic positioning which is done by the Rainbow Cash and Carry is of low pricing strategy. They have captured large amount of audience by giving them the same market commodities at relatively cheaper price.

R ETAIL M IX

The store location is convenient for all the customers residing nearby. Almost every daily usage item is equipped under one roof and merchandise is assorted in a proper manner. They have a low pricing strategy. They believe in satisfying the customers need and giving proper heed to their complaints. Their store agents are always there to help your queries. Their store advertises different brands which in turn results in the incoming cash flows.

A SSORTMENT

Being a departmental store, RAINBOW had nurtured itself in assorting different categorical product under one roof and successfully managing it. From Everyday product to cosmetics they have it all.

M ARKET S HARE

The manager of RAINBOW store is moderately satisfied with their market share as they believe that they have the potential to grow more and expand more.

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L OCATION A NALYSIS

C ATCHMENT A REA:

Rainbow cash and carry store is located at Rehmat Chowk, Wapda Town Lahore. It does not offer any retailing services to its customers and there is no banking facility available there. It does not have any proper parking facility and people usually face a lot of distress in finding the space to park their car. It is highly dense populated area having diverse integrated background of different social classes.

M ERITS

There is a proper system of transportation for the families residing in the area as Rainbow store is located in urban area. A proper municipal facility is available and they have their own ways of advertising the store.

D EMERITS

The major demerit of Rainbow store is the parking space due to which customers get annoyed and that the expansion they have done had been very costly and due to having their store in a commercial area the taxation rate is quite high. The major setback for Rainbow is that the pathway is relatively congested and the cost of labor is high as well.

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S TOR E L AYOUT

H OUSEKEEPING

Creates a good “first impression” of workplace environment and reflects well on the quality of work. Make the workplace neat, comfortable and pleasant – not a dangerous eyesoreImprove your company’s image; good housekeeping reflects a well-run business. An orderly workplace will impress all who enter it – employees, visitors, customers, etc.Check list of every housekeeping duty that must be completed. It involves:

Chase those dust bunnies away. Vacuum daily. Yes

Clean the lights. Weekly basis

Dust the shelves. Weekly basis

Get rid of the tape on the windows. Yes

No dust. No grime. Twice a week

No smudges. No grease. Yes

Polish the chrome. Monthly

Remove the clutter behind the cash counter. Yes

Tidy up the back room. No

L IGHTENING

Lightening helps to define the overall store image, it highlights products and makes them visible so customer can easily walk into the store. If a store is properly lighted and the visual displays are eye catching then it affects the purchasing power of customer. The lightening creates a desire which leads the customer into the store and it gives them a sense of joy while shopping.

Any Burnt out lights. No

Use of best bulbs, tubes. Yes

Use of Cheaper bulbs. Yes

Make use of spot lights, preferably halogen to highlight key selling areas. No

Make the front of store glow with good light. No

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M USIC

Rainbow Cash and Carry do not use music as they believe the customers get irritated, annoyed and atrocious but the significance of music cannot be denied as it is a major source of mood swings for the customers.

W INDOWS

There are no proper windows in rainbow cash and carry which makes the customer hard to depict the actual essence of the store. There is encroachment at the front of the store which makes the outlook of the store dull and unattractive.

S IGNAGE

No properly visible signage of Rainbow Cash and Carry is present which makes it hard to identify for those customers which are not of that particular area. The only signage which they have up fronted are their promotional signage linked with the Meezan Cooking Oil & Prema Milk.

S HELVING A ND D ISPLAYS

Rainbow Cash and Carry put the products of those companies at the horizon level which pays the most amount of money for their product to be displayed at front. They place their products and byproducts which are complementing each other. They change the shelf space twice a month so that it does not create a sense of monotony amongst the customers.

Changing the product on the shelves to display Twice a monthFocus on best selling items YesIntegration of advertisement into displays YesKeeping the display simple YesShowing complementary items together Yes

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F LOOR L AYOUT P LAN

They follow the straight floor planning because they want customer to easily access every corner of the store and do not want their interest to be lost while searching for a certain product.

C ATEGORY M ANAGEMENT

The range of products purchased or sold by rainbow store is broken down into discrete groups of similar or related products.

C ATEGORY M ANAGEMENT P ROCESS 1) Defining the category (what products are)2) Category Role3) Category Assessment4) Category Performance5) Category Strategy6) Category Tactics7) Category Implementation8) Category Revision

S TOCK K EEPING U NIT (SKU) & R OLE O F

S KU W ITHIN A C ATEGORY

Every item in the Rainbow Store has a SKU. It keeps them updated about the products which are about to end, so that they can re-order that particular item which is about to end. This system allows retailer to track records of merchandise.

C ATEGORY M ANAGEMENT S TRATEGIES

T RAFFIC B UILDING

Rainbow store does an effective strategy in building traffic by promoting their store the e-advertisement & giving the customers relatively low prices.

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T URF P ROTECTING

Rainbow Store defends their category sales & market share against their competitors through their low pricing techniques.

I MAGE E NHANCING

Rainbow Store enhances their image before customers by giving them high quality products at relatively cheaper prices & has multiple variety products under one roof.

T RANSACTION G ENERATION

Rainbow Store reduced their prices & they sell their products below market price to generate more transaction & to keep traffic flow constant.

R ELATIONSHIP W ITH T HE S TORE B RAND

S TAGES O F D ISTRIBUTER'S B RAND

F IRST S TAGE R EACTIVE Rainbow store have identified a major gap in the market they charge minimum

prices of the commodities they are selling i.e. taking minimum profits and reducing

the inventory cost.

S ECOND S TAGE I MITATIVE Rainbow store have imitated major super market techniques i.e. purchasing items

in bulk but selling single unit rather than selling the item as a whole package.

T HIRD S TAGE I DENTITY Rainbow store have positioned them as a low pricing departmental store where

vast variety of items are available. Rainbow store had not launched its own store

brand yet.

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P RICING

I NTERACTIVE P RICING D ECISION

Rainbow store fallow the Interactive pricing decision according to these variables.

1) Merchandise2) Location3) Promotion4) Credit5) Customer services6) Store image7) Legal constraints

M ERCHANDISE:

Rainbow store set the price of the merchandise minimum according to their store policy.

L OCATION:

Rainbow store location is convenient for the walk-in customers.

P ROMOTION:

In Rainbow store different companies representative give the promotional campaigns to their customers to achieve their sales target.

C REDIT:

Rainbow store do not give the credit facility.

C USTOMER S ERVICES:

Rainbow store does not compromise on customer services, they give the personal services to customers but also other company representative also facilitates the customers according to their need.

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S TORE I MAGE:

Rainbow store image is very strong because they give discounted prices to the customers.

L EGAL C ONSTRAINTS:

Mostly in Ramadan government set the limits so rainbow store follow these legal constraints according to government decision.

S ALES O RIENTED O BJECTIVES:

The objectives of rainbow store are totally based upon their sales. Most of their products are sold below market price so that their sales could be enhanced. By selling the products at low price they maximize their profit and do not need to hold inventory for a longer period.

P RICING P OLICIES O F R AINBOW S TORE:

P RICING B ELOW T HE M ARKET :

Rainbow cash and carry is selling the products below average market price just as Metro or hyper-star is doing but they have a competitive edge over the local retail stores as they are selling single units of products rather than selling them in bulk.

H IGH L OW P RICING:

Rainbow store uses this strategy as they allocate low prices to a well known product and charge a bit high price to that product which is not commonly used.

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