RETAIL MANAGEMENT PROJECT

RETAIL STORE ANALYSIS

ADMIN GROUP 7 - HASTKALA

H032 KEVIN DESAI

HO33 AMAN JAIN
HO34 SARGAM JAIN
H035 SITANSHU CHHEDA
Vision -

Our vision to preserve the beautiful Indian art of clothing, and to make
Hastkala the leading name in women’s ethnic wear.

Mission -

Being a customer’s delight

By being a beacon for innovation

By taking care of every stakeholder’s interest

By being a pioneer in the retail industry

Founders -

Pravin Chheda founded Hastkala back in 1994, and has overseen its growth
through the years. Today, the brand has 14 outlets, spread over Thane, Vashi,
Malad and very soon in Ghatkopar.

Since a young age, he has been passionate about art, fashion and design. This
passion of his has translated to him creating Hastkala. Image – The image of
Hastkala always been one of a semi-premium/luxury brand that has one of the
most unique, authentic products which are distinctive because of their rich
elements of design.

Target customer – Women between the age of 28-50 primarily, who belong in
the upper middle and upper income class brackets.
Marketing Mix

Product –

Hastkala has 4 broad product categories: Sarees, Lehengas, Salwar Kameez and
Costume Jewellery.

Most of the products are sourced directly from weavers and artisans from
across the country. What sets Hastkala apart from it’s competitors is its focus
on products which use pure, natural materials instead of synthetic/mixed
materials.

Another thing which Hastkala focuses on is having designs which are unique.
This is possible because by sourcing straight from the actual weavers who
make the products, it is easier to demand exclusivity of designs for a little
premium.

In a world of constant design evolution and a shift towards more modern

clothing and fashion, Hastkala makes it money by sticking to the true culture
and tradition that has made Indian Ethnic wear such a success.

Price –

As products are sourced direct from artisans, the distribution channel becomes
very small, eliminating all middlemen and distributors/traders. This helps to
source products at a much more cost effective rate, allowing Hastkala to pay a
premium for customised unique designs. Also, since the products are very very
authentic and materials used are also pure, the cost increases comparatively.

Hastkala marks up its products and has a gross profit margin anywhere
between 35-55%.

Place –

Hastkala has 14 retail locations spread across Thane, Kalyan, Dombivali, Vashi,
Malad and now Ghatkopar.
Initially all it’s stores were on high streets. But with the changing times and
changing consumer preferences, the strategy going forward is to increase its
presence in malls, with very few expansions on high streets.

Hastkala already has stores in Viviana Mall (Thane), Inorbit Mall (both Vashi
and Malad) and would be soon launching its store in R city Mall (Ghatkopar)

The company does not sell online as of now, but plans to very soon.

Promotion –

Apart from using the basic modes of advertising like hoardings, social media,
newspapers and radio, Hastkala spends a lot of time and effort on
personalised, one-to-one promotions with its customers.

Every customer of Hastkala gets a personalised letter, which has custom made
offers/products for the said customer. These letters are actually signed
personally by Pravin Chheda, the Chairman of the company.

This has helped Hastkala build a very loyal customer base. Because of the
personal touch, the sense of belonging with the brand has increased.

The personalised letter activity happens on a daily basis. During special

festivals like Diwali, Marriage seasons, etc.is when special campaigns are run
using both offline and online media. Even then catalogs/brochures are sent to
existing customers, which helps in getting in touch directly with customers.

Positioning –

Hastkala has positioned itself as a semi premium, semi luxury brand, known for
its traditional Indian ethnic fashion.
 LOCATION ANALYSIS OF THE STORE

We have evaluated the store location based on the following criteria:

1. Trade area
2. Accessibility
3. Visibility
4. Competition
5. Occupancy costs
6. Traffic flow

Hastkala is located inside Inorbit Mall in Malad West.

Trade Area:
Inorbit has a large trade area. It attracts lots of customers daily, especially on
weekends. Increased customer traffic is a great advantage for this particular
branch of Hastkala as more people are likely to enter the store.
Accessibility:
Inorbit is easily accessible by all modes of transport as well as by pedestrians.
Public transport like buses, cabs and autos are always available in large
numbers. They have ample parking space for customers’ vehicles.
Visibility:
Hastkala is located on the first level of the mall. One of the benefits of the site
of Hastkala is that it’s located very close to an anchor store- Shoppers Stop.
With its broad appeal, Shoppers Stop attracts a significant number of shoppers
and once these customers walk out of Shoppers Stop, they have to go through
this aisle to exit the mall. This is how all the retailers of that aisle, including
Hastkala attract a lot of customers to their stores because more customers are
likely to stop and shop.
Visibility is moderately visible.

Competition:
The whole aisle has been given to retailers that sell traditional Indian apparel.
Hastkala doesn’t have any direct competitors. There are no other stores that
sell saris. But a lot of known brands like BIBA, Global Desi, Fusion Beats and
Jashn are present that target the same set of customers. Similar or
complementary retailing activities have a higher drawing power than free
standing or isolated stores.
Occupancy Costs:
The monthly rental of stores located in malls and shopping centres is relatively
higher than free standing stores or even stores located in a district or street.
The rent is Rs. 5 lakhs for 800 square feet not including the electricity and
other costs. This is higher than the other branches of Hastkala that are not
located inside a mall or shopping centre.
Traffic flow:
The store attracts 10-12 customers on weekdays and around 20 customers on
weekends. This information clearly shows that the footfall for this particular
branch is not very high. Inspite of this, they generate a sales of around 20-25
lakhs in a month this is mainly because the price of each product goes upto
Rs.2,50,000.
Evaluating the Site Location
Hastkala is in a located in a high trade area with a good level of accessibility,
high customer traffic and good visibility. It benefits from a anchor store located
next to it and generates high sales.
Even the negative points of the location such as competition is turning out to
be favourable for Hastkala as the competitors are not selling the exact same
product but related products of a similar target market.
High occupancy costs are the only negative point that Hastkala is dealing with.
Keeping in mind all these points, overall this particular branch location is good
compared to the other branches.
 SUPPLY CHAIN MANAGEMENT

Procurement and Ordering process at Hastkala is independent for each store.

The Store Manager has autonomy to place to orders and select designs and
patterns. They have adopted pull system for supply as it is best suitable for
fashion merchandise and they can easily respond to customer demands and
changes in trends. The Store Manager travels to various cities across India,
such as Kolkata, Coimbatore, Jaipur, Bangalore, etc. to source new designs,
patterns, trends and materials every 2-3 months to keep up with the dynamic
fashion in Indian Sarees. The orders are placed then and there and the product
reaches the store within 2-3 days after placing the order. There is no need for
VMI or CPFR systems as the ordering is completely in the hands of the store
manager. They don’t maintain EDI systems because each store acts
independently for ordering and selecting the range of products to offer and the
store manager knows what kind of customers are there in their particular area,
and hence selects the range accordingly. RFID systems are not required
because there is no need for warehousing or tracking their product.

CRM SYSTEMS

Hastkala offers Privilege Program for their valuable customers. It has a lifetime
membership and there are no joining fees. They provide such service to
customers who are loyal to the brand and shop frequently. With a Privilege
Card, one can get 7% off at any of their stores.
The store’s exterior has a very Indian look, with mannequins on display which
catches your eye. The mall’s corridor consists of all Women Indian Traditional
wear but the stores bright lighting stands out as other stores are dim lit and
have an open entrance, whereas Hastkala has an appealing and bright exterior
look. The customers inside the store can enjoy their privacy and is very
spacious hence customers can feel comfortable and in tune with the store
experience. All the stores have the same look and feel so customers feel
habituated to the store and brand. The customers enjoy one to one experience
throughout the store experience. This adds with the store’s spacious set up
which makes customers feel that their needs are attended personally.

LEGAL REQUIREMENTS
The store meets legal requirements through the plans enforced by the mall.
There is a wheelchair ramp at the entrance of the mall and there is an efficient
security measure at the entrance with minimum four security guards with
metal detectors and X-Ray scanner. All stores are equipped with security
cameras, fire extinguishers, fire alarms and sprinklers with a detailed fire exit
plan and emergency exit on every floor. There are sufficient signboards guiding
towards the exit.

Utilization of atmospheric elements:

1) Color Scheme: The colour scheme is white,blue and pink,which perfectly

encapsulates the theme of the store which is to make it more feminine looking
as Hastkala only caters to the female audience.

2) Lighting: The designers of the store have kept it simple with bright white
lights so as to facilitate the probable customers to check the embroidery and
the art work more precisely.

3) Music: The managers and workers start off with tradition prayer related
songs, but as the day progresses it focuses more on folk music, mostly from
parts where their merchandise is from.

4) Scent: They have a wonderful collection of incense sticks which they light in
every couple of hours, which gives it a wholesome and homely touch, which
resonates with the female audience which is their target market.

ENVIORNMENTALLY FRIENDLY STORE DESIGN:

1) The use of energy efficient LED lighting in the store, cuts costs and also the
responsible behavior of the brand resonates with the customers in a highly
positive way.

2) Use of paper recyclable bags which are biodegradable and leave a lesser
carbon footprint than plastic bags.

FIXTURES, SIGNAGES AND SPECIAL EFFECTS:

The store has the furniture fitted with protruding flower designs which add to
the overall ambience of the store.
Their display signage on their loyalty card shows an elerdly woman elegantly
dressed in traditional wear which relates with the brand so it is effective. The
card design is flexible while the store furniture isn’t.

TYPE OF STORE LAYOUT:

They use a U shaped store layout which is perfect for Hastkala as all its
merchandise is displayed all across the store with the probable customers
having enough time to look around. They have female mannequins dressed in
ethnic wear which draws their target audience which are females to the store.
At the entrance there are mannequins, they don’t have a dressing room as
sarees are free sizes and can be draped around what the women are wearing
currently, the store does have a mirror in the middle of the store with an
elevated platform so the women can look at the outfit from head to toe.

The walls are embossed with designs which capture the theme perfectly.

SPACE MANAGEMENT:

Due to the use to U shaped layout Hastkala has very efficiently used its store
area, at the entrance they have mannequins, as you walk ahead to the left you
have the cash counter and few drapes hung behind it, next to the counter
starts the horizontal line of product displays guarded by salesmen, in the
middle there is the mirror with the pedestal, also the products which the
salesmen are ahead of rests on planograms, they are the visual
representations of the store.

Merchandising Techniques:

The store practices both vertical and horizontal merchandising techniques,

which gives it the best of both worlds and attracts customers to buy more,
explore more and nullifies the drawbacks of the two methods because both
are employed at the store