BATA Summer Internship
BATA Summer Internship
BATA Summer Internship
ALLOTTED STORE BATA, CONNAUGHT PLACE (20th June 2011-20th August 2011)
MBA-RETAIL
SUBMITTED BY: ALAN MILLER Roll Number 105273038 Future Innoversity, DELHI
ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factor to achieve the desired goal. Those must be supplemented by the guidance assistance and cooperation of experts to make it success. At the outset, it is my duty to acknowledge with gratitude the generous help that I have received from BATA Team. A project of this magnitude is a great learning and selfdevelopment opportunity. I find myself very lucky and honored to be a part of this, and to have so many great people guide me through to the completion of this project. With profound pleasure, I extend my sincere sense of gratitude and indebtedness towards my mentor Mr Anil Malhotra (District Manager of Bata,CP (DELHI) for extensive and valuable guidance that was always available to me ungrudgingly and instantly, which help me complete my project without difficulty. I would also like to thank Mr. Inderpreet Singh (Retail Manager North),Mr S.K. Banga, (Store Manager-CP2) and his team, for extending their support, for providing me firsthand knowledge and sharing their experiences by taking out time out to hear, guide, and keep me on the correct path constantly. And finally I would like to thank Future Innoversity for providing such a great opportunity and my parents & friends for their constant encouragement and support.
Alan Miller
DECLARATION
I , ALAN MILLER , hereby declare that the project title - INCREASING SALES OF LADIES HANDBAGS prepared and submitted by me , under the guidance of Mr. Anil Malhotra (District Manager) , is my original work and has not been submitted to any other organization or/and university before.
INDEX
Chapter 1
Introduction ........................................................................................................................ Situation Analysis (current situation) ................................................................................. Key Management Profile (management structure) .................................................................
Chapter 2
Profiling of the Store Manager ............................................................................................ Store Analysis .......................................................................................................................
Chapter 3
Objectives of the study ........................................................................................................ Scope of the study ............................................................................................................... Methodology (Methods of collecting data) ........................................................................ Survey................................................................................................................................... Observation..........................................................................................................................
Chapter 4: Analysis of Data .............................................................................................. Chapter 5: Recommendations and Suggestions .............................................................. Chapter 6: Bibliography/References ANNEXURE(S)
Questionnaire
CHAPTER 1
I. Introduction II. Situation Analysis III. Key Management Profile
Introduction
Bata - Indias favorite footwear brand Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization. Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Batas operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification. The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India has established itself as Indias largest footwear retailer. Its retail network of over 1200 stores gives it a reach / coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns Batas smart looking new stores supported by a range of better quality products are aimed at offering a superior shopping experience to its customers. The Company also operates a large non retail distribution network through its urban wholesale division and caters to millions of customers through over 30,000 dealers.
SITUATION ANALYSIS
The situation analysis is concentrated on the current scenario/situation of the BATA, Connaught Place. Store has grown in customer services, now every member is taking care for their customers by their good behaviour and good service. At present store fixture has been changed of the sections:-ladies, mens, kids, etc. Team members are going for various trainings programmes for their development No of new recruitments has been done in store for team members
Dec '10
Dec '09
Dec '08
Dec '07
Dec '06
12 months
12 months
12 months
12 months
12 months
Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 598.57 32.75 176.83 485.43 28.82 168.31 458.74 28.22 173.22 441.63 25.74 184.06 370.96 24.03 184.86 1,277.58 19.5 1,258.08 12.55 22.77 1,293.40 1,112.85 16.64 1,096.21 0.92 -11.76 1,085.37 1,012.82 22.86 989.96 1.63 -10.69 980.9 891.34 23.58 867.76 12.45 29.28 909.49 795.38 24.45 770.93 14.68 1.56 787.17
23.21
25.51
21.46
20.96
24.82
234.9
199.06
170.98
137.55
107.92
32.79
30.02
24.17
14.85
2.53
12 months
12 months
12 months
12 months
12 months
Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
0.37
1.49
4.03
-3.64
0.52
0 25.71 4.19
0 19.28 3.28
0 16.07 2.73
0 12.85 2.18
0 0 0
642.64
642.64
642.64
642.64
642.64
14.84
10.46
9.45
7.38
6.25
40
30
25
20
56.57
46.39
39.44
32.91
28.55
Dec 2010
Product Name
Unit
Quantity
Value
Other Materials
Not Reported
NA
59.57
Chemicals
Thousands Kgs
4,224
48.01
Leather
Thousands KVT
6,293
41.33
Rubber
Thousands Kgs
1,833
24.01
Textiles
Thousands Sq Metres
4,964
15.8
Raw Hides
Thousands Kgs
1,279
4.27
Total
192.99
Dec 2010
Product Name
Unit
Installed
Production
Sales
Sales
Quantity 14,384.00
Quantity 23,695.00
Value 893.34
42,500
8,040.00
15,771.00
240.56
Plastic Footwear -
NA
NA
8,797.00
102.29
NA
NA
NA
39.33
NA NA
NA NA
NA NA
1.34 0.5
Other Services
NA
NA
NA
0.24
1,596
129
NA
Total
1277.6
MANAGEMENT STRUCTURE
STORE MANAGER
TEAM LEADERS
TEAM MEMBERS
CHAPTER 2
I. Profiling of the Store Manager II. Store Analysis
The ability to lead and motivate a team Excellent communication and 'people' skills A strong commitment to customer service The ability to work under pressure and handle challenging situations Confidence, drive and enthusiasm Decision-making ability and a sense of responsibility The ability to understand and analyze sales figures Sound business sense An understanding of retail laws, security and health and safety.
1. BRIEFING Store Manger should give proper briefing to his team every day and discuss
sales report with the team members .During the meeting the store manager discusses the various points related to sales, stock etc. Briefing also defines a day plan for all the team members and team leaders
2. REPORTING- Store Manager should take proper reporting from his team member and team
leaders every day.
3. TARGET PLAN-- Store Manager makes target plan and give target to the team members on
daily basis and weekly basis.
5. MERCHANDISE GAP FINDING-- Store Manager checks merchandise gap on regular basis and
send mail for availability to category or HO.
The Store Analysis is sub-divided into following parts: 1. Measurement of the Data 2. Analysis and Interpretation of the Data
Margin =
Interpretation: The margin is the profit as a percentage of Selling Price (SP). It is normally used in percentage terms only. Here CP is the Cost Price.
Conversion =
Interpretation: It is used to know how many customers in the store have actually shopped. In other words, its a measure to identify how many of the customers who have walked into the store has purchased something from the store. Conversion is a result of effective selling skills a sales staff possesses, good collection and availability of merchandise and good price offered.
Interpretation:
Ticket Size =
It is also called the average bill amount or basket size that a customer buys on an average. In other words, it is the average number of money each buyer has spent inside the store in one visit. More variety of merchandise, right choice of merchandise, and availability of sizes will
increase the ticket size of the store. Selling higher valued products by the sales staff will also help increase the ticket size.
Interpretation: It is an indicator of the type of merchandise available in the store. If the average value per piece in a store is falling it indicates either the store is selling lower priced products only or higher value product is not selling, or there is no stocks of higher value products on the floor. Hence sales staffs need to convert higher value products into sale and increase the overall sale of the store.
COMPETITORS ANALYSIS
USP Old trustworthy brand , Pocket friendly prices Latest Design, International Quality, Sporty,Trendy,Youthful Rugged and tough design,Swede polishes
WOMEN
MEN
KIDS
ACCESSORI ES
INTERPRETATION FOR THE ABOVE DIAGRAM: The above diagram is for Bata Store the area of which is about 4000 sq. feet. The store is sub-divided into 3 parts which are shown above Ladies ware, Men wear, Kids wear. . The star product for: Ladies section is TAPLO Mens section is SADIDA,ROMANO,ABBA,ALBA Kids section is BUBBLEGUMMERS
CHAPTER 3
I. II. III. IV. V. Objectives of the study Scope of the study Methodology of collecting data Survey Observation
INTRODUCTION
1.1 ABOUT THE PROJECT
The project is all about how the customers decisions affect the sales of the Bata Store, CP2. What are the basic decision drivers i.e. what are the reasons that affect the most in their buying behaviour . Also what is the pattern observed in customer buying behavior given a particular income level. Various types of customers depending upon their location, culture, demographics etc.. are taken into account for exploring the diversity in the purchasing pattern and thus affecting the sales of the store.
1.4
With the help of primary data given by the respondent during survey and secondary data, study is done to suggest ways and measures to increase sales of ladies handbags at Bata. CP , also to understand the customer preferences and, potential customers and current market position of Bata in that area.
o o o 1. 2. 3.
The study is limited to the Customers of the BATA ,Connaught Place-2, DELHI. Targeted Customer includes those who enter the store. Assumptions included are : Customers behave rationally Offers are the main criteria for increasing the sales Innovative ideas thus can lead to positive response from the customers.
1.5
RESEARCH METHODOLOGY
The study is relied on primary as well as secondary data. The primary data is collected through personal interviews using structured Questionnaire. The Secondary is collected from management of the Bata Retail Ltd, various books, journals and Internet. Sampling Methods: Probability sampling method or simple random sampling Sample Size: Sample size was 200.
Research Instrument: For this study, for the collection of various data requirement, structured questionnaire is used. This questionnaire contains qualitative and quantitative information of the customers. The questionnaire contains of both open-ended and close ended questions, which would help to know the situation prevailing in the market.
1.6
TIMELINE
The project duration 20th June 2011-20th August 2011. The main focus is made to increase sales during no sales promotion (from 20 June 2011 till 19 August 2011 excluding sales promotion days as mentioned ) and during sales promotions (1-8 July 2011 & 10-15 August 2011 , all and weekends included from 20 June 2011 to 20 August 2011)
Here the sample size of 200 customers( in total) were approached by using the Direct Personal Investigation technique and the Questionnaire method.
By using the Direct Personal Investigation technique, the investigator is able to extract the proper information from the respondents by talking to them regaring the promotional offers available benefits, store envirnment, customer satisfaction etc. The Questionnaire method was basically used to know where the customer come from i.e. their location, their taste & preferences, affect of the schemes on their buying decision etc. The specimen copy of the questionnaire has been provided in ANNEXURE (S) at the end.
An idea about the precision aimed at is extremely helpful in deciding about the method of the data collection and the size of the sampleas the enquiry is based on sampling method.Although errors do erupt due to human errors, non availability of accurate & exact figures in the collection of the data through the method thus adopted etc. but a reasonable degree of precision is enough to draw valid conclusions.
The necessary degree of accuracy in counting or measuring depends upon the practical value of accuracy in relation to its cost. - Riggleman and Frisbee
The enquiry here is done in two months from 20th June 2011 to 20th August 2011 by applying the DIRECT ENQUIRY. An enquiry is termed as direct if the phenomenon under the study is capable of quantitative measurement such as quantities purchased, total expenditure made, number of quantities bought, number of customer entry, total number of bills, average price per bill etc.
1UNIT
The following are the ANALYSIS done on the basis of information collected:
Most of the customers hail from the following locations: Paharganj Gole Market Minto Road Tilak Marg
Societies in the Primary Catchment: Laxmi Nagar Mayur Vihar Patel Nagar Dhaula Kuan Barakhamba Road Karol Bagh Gole Market
Types Of Catchment Areas: The Primary Catchment can be defined as the main customers coming from near about areas like within 5-6 kilometers. The Secondary Catchment is the customers who quite often pass through this area may be because their offices are on this way and are than visiting the store. The Tertiary Consumers who rarely visit the store.
Age group
7%
27%
11%
18-25 25% 30% 26-35 36-45 46-55 Above 56
Inference: From the Pie chart depicted above, Out of 200 respondents who answerd the questionnaire, 11% people fall in the age group 1825 years, 25% people fall in the age group 26-35 years,30% people fall in the age group 36-45 years, 27% people fall in the age group 46-55 years and 7% people fall in the age group 56+ years. From the above analysis, it is observed that majority of the residents fall in the age group 18-25 and 26-35
Education Level
11% 7% 15%
38% 29%
Others
Inference: From the pie chart depicted above, Out of 200 respondents who answered the questionnaire, 7% people belong to S.S.C. category education level, 15% people belong to Inter category education level, 29% people to Graduate category education level, 38% people belong to Post Graduate category education level and 11% people belong to others category education level.
From the above analysis, it is observed that majority of the respondents are post graduates.
Occupation
12% 8% 10% Student 28% 42% Housewife Service Business Others
Inference: From the pie chart depicted above, On this basis of 200 respondents who answered the questionnaire, 42% people belong to Service category, 12% people belong to Business category, 10% belong to Student category, 28% people belong to House Wife category and 10% people belong to Others category.
From the above analysis, it is observed that majority of the respondents are into Service.
Frequency of Visit
First Visit Every month Several times a month Several times a week Weekends 0% 20% 40% 40% 32% 60% 60% 80%
18%
50%
Inference:
From the bar graph depicted above On this basis of 200 respondents who answered the questionnaire, 60% people visit the store on weekends, 32% visit several times a week, 40% visit the store several times a month, 50% visit once every month, and 18% of persons visited the store for the first time. From the above analysis, it is observed that majority of the respondents like to visit on weekends.
Ticket Size
35% 30% 25% 20% 15% 10% 5% 0% 33% 21%
25%
12% 9% Ticket Size
Inference: From the bar graph depicted above On this basis of 200 respondents who answered the questionnaire, 33% people spend between Rs 0-500 , 21% spend between Rs 501-1000, 25% people spend between Rs 1001-1500 , 12% spend between Rs 1501-2000, 9% spend more than Rs 2000.
From the above analysis, it is observed that majority of the respondents spent between Rs 0500.
Inference: From the pie chart depicted above, On this basis of 200 respondents who answered the questionnaire, 41% people are not aware of non-footwear being available at Bata. 59% of people are aware of non-footwear being available at Bata. From the above analysis, it is observed that majority of the respondents are aware of nonfootwear being available at Bata.
Visual Merchandise
40% 35% 30% 25% 20% 15% 10% 5% 0% 34% 13% 33% 13%
7%
Inference: From the bar graph depicted above, On this basis of 200 respondents who answered the questionnaire, 7% people are very dissatisfied with visual merchandise 13% are dis-satisfied with visual merchandise, 34% feel that it is average, 33% are satisfied while 13% are very satisfied. From the above analysis, it is observed that majority of the respondents feel that the visual merchandise is average.
Sales Staff
30% 25% 20% 15% 10% 5% 0% 27% 21% 12% 7% 23%
Inference: From the bar graph depicted above, On this basis of 200 respondents who answered the questionnaire, 7% people are very dissatisfied with the sales staff 12% are dis-satisfied with the sales staff, 21% feel that it is average, 27% are satisfied while 23% are very satisfied. From the above analysis, it is observed that majority of the respondents are satisfied with the sales staff.
Store Ambience
30% 25% 20% 15% 10% 5% 0% 23%
Inference: From the bar graph depicted above, On this basis of 200 respondents who answered the questionnaire, 23% people are very dissatisfied with the store ambience, 19% are dis-satisfied with the store ambience, 27% feel that it is average, 19% are satisfied while 12% are very satisfied. From the above analysis, it is observed that majority of the respondents feel that the store ambience is average.
Store Location
50% 40% 30% 20% 10% 0% 43% 37%
3%
7%
10%
Inference: From the bar graph depicted above, On this basis of 200 respondents who answered the questionnaire, only 3% people are very dissatisfied with the store ambience, 7% are dis-satisfied with the store ambience, 10% feel that it is average, 43% are satisfied while 37% are very satisfied. From the above analysis, it is observed that majority of the respondents are satisfied with the store location.
Purchase Decision
28% 48%
24%
Inference: On this basis of 200 respondents who answered the questionnaire, 48% people purchase on the arrival of fresh stock., 24% people purchase when there is a discount sale going on. For the rest 28% it doesnt make any difference. From the above analysis, it is observed that majority of the respondents purchase goods on the arrival of fresh stock.
Store Awareness
30% 25% 20% 15% 10% 5% 0% 25% 20% 21% 28%
6%
Inference: On this basis of 200 respondents who answered the questionnaire, 6% persons got to know about the store through advertisement on TV/Radio, 25% through friends/Relatives, 20% through their Company/Colleagues while 21% are casual walk-ins and 28% consider it a family brand. From the above analysis, it is observed that majority of the respondents got to know about Bata as a Family brand.
Bata Home
Aware and satisfied 17% 31% Aware and not satisfied Not aware, willing to try
21%
15%
Inference: On this basis of 200 respondents who answered the questionnaire,15% are Aware about Bata Home and are satisfied with it. 17% are aware but not satisfied with it. 31% are not aware and not willing to try while 21% are neither aware nor willing to try it out. From the above analysis, it is observed that majority of the respondents do not to know about Bata Home delivery.
CUSTOMER INITIATIVES
Generations have gone to school and grown up on Bata. Now the footwear major is reinventing itself to appeal to a younger generation..
KEY FACTS
1. Bata is on a front foot. Seventy-nine years old and still running strong, the age-old footwear brand has marched a long way from its early Back-to-School shoe days to now. 2. Bata Serves over 120,000 customers every day, sells over 45 million pairs of footwear every year through over 1200 retail stores 3. Bata 2011 2Q net sales up 22 % to Rs. 429 crores 4. Bata has opened 68 new stores until June 30 this year. These are based on its new large format and all are above 3000 sq ft. 5. Marie Claire, Hush Puppies, Comfit, Scholl, North Star, Weinbrenner, Reebok and Power are amongst the various brands that are sold in Bata showroom 6. Though Bata did not exactly go in for rebranding, it decided to relaunch its image as the most trusted footwear brand and enhance it with a contemporary look be it in the product offerings or at the stores. 7. Opened a new store in South Delhi at DLF Place Mall, Saket. Spread over 3,000 sq. ft 8. Bata also has options ranging from the formal to the casual to the funky and fashionable, not to mention the sturdy 9. Bata is considered a value-for-money footwear brand. Bata is committed to providing quality footwear at great prices to its customers and we have shoes for every foot and every social class to suit every member of the family. Brand building exercises should be initiated so that customers are aware and accept the premium offerings such as Marie Claire, Naturaliser and Hush Puppies.
Handbags Date Total Sales amount No of articles 22/06/11 256118 7495 5 23/06/11 242599 12291 9 24/06/11 258838 6095 5 25/06/11 424641 17387 13 26/06/11 385062 15888 12 TOTAL 1567258 59156 44
% of sales = Average article C/B*100 price 2.926385494 1499 5.06638527 1365.666667 2.354754711 1219 4.094517487 1337.461538 4.126088786 1324 3.774490224 1344.454545
The bags have not been highlighted by Bata as the main stream of business. There are many deficiencies. 1. 2. 3. 4. 5. 6. No articles made of jute, cloth ,etc Preference of Display to Shoes Costly items Less promotional strategy for bags No clutches/ hand purses. Less Variety in designs
SUGGESTIONS
1. Proper Visual Merchandise for Bags like shift display of bags to the window, putting attractive signages 2. Promotional Offers and Discount like BOGO, Flat 50% off, etc 3. Introduction of Cheaper cloth bags to attract college students 4. Increase promotional activities of bags 5. Play soft music ,to help set in a unique shopping experience for the customers 6. Increase advertising expenses
Bibliography
Books:Marketing Management (13th Edition) - By Philip Kotler, Keller, Koshy and Jha Principles of Marketing (11th Edition) By Philip Kotler and Gary Armstrong Research Methodology The Art of Retailing -- C.R. Kothari - A.J. Lamba
ANNEXURES
QUESTIONNAIRE
1) What is your age group? i) 18-25 ii) 26-35 iii) 36-45 iv) 46-55 v) 56+
2)
3)
4)
5)
What is your monthly income? 1. < 5000 2. 5000-10,000 3. 10,000 - 20,000 4. >20,000
6) How often do you visit our store? a) Every day b) Several times a week c) Several times a month d) Every month e) First visit
7) Did you find what you were looking for? a) Yes, I found exactly what I was looking for b) Yes, but not the exact brand /size/color, etc. c) Found a related product, but not what I was looking for d) No, I did not find what I was looking for 8) How much did you spend today? a) Rs 0-500 b) Rs 501-1000 c) Rs 1001-1500 d) Rs 1501-2000 e) More that Rs 2001
9) Are you aware of the non-footwear products being available at Bata? a) Yes b) No
10) If you did not buy this time, why not? a) Will buy elsewhere b) Not enough time c) No Variety /desired size/color d) Poor service e) Will buy later f) Others 11) How much satisfied are you with the Very Dissatisfied Visual Merchandise Sales Staff Ambience Store location A A A A Very Satisfied e e e e
Dissatisfied b b b b
Average c c c c
Satisfied d d d d
12) Thinking of all the retail stores in the area, where are you most likely to shop for Big Bazaar e e e e e e e
Bata Men formal Men casual Children Ladies formal Ladies casual Handbags Accessories A A A A A A a
Liberty B B B B B B B
Adidas c c c c c c c
Nike d d d d d d d
13) How did u get to know about our store? a) Advt. on TV/Heard on radio b) Friends/Relatives c) Company/Colleagues d) Passing by and saw randomly 14) When are you most likely to make a purchase? a) On the arrival of fresh stock b) During sale c) Doesnt not make a difference 15) Are you aware of Bata Home a)Yes, I have tried it & am satisfied b) Yes, I have tried it but not satisfied c) No , I am not aware , but willing to try it d) No , I am not aware & not willing to try