Submitted by: Oozema Zafar Almira Naz Butt Shifa Anum Nasir Fatima Khan Sidra

RETAIL MANAGEMENT

Imtiaz Super Market

Retail Management

4/21/2014

Introduction and History

Imtiaz Store started in the year 1955 in Bahadurabad, with a very small one room general store. The shop was hardly known by anybody then since it was located in a very narrow lane having very few houses Owned by the Late Haji Hakim Khan, and its a family-owned business. Now owned by his son, Haji Imitiaz Khan. Began gaining attention in 1957 and by year 1973 it became the city's biggest general store serving around 35,000 customers a day.
Retail Management 4/21/2014

Introduction and History

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In year 1983, it actually converted into a complete supermarket and is now serving more than 72,000 customers per day Their vision is to serve as Pakistan's highest selling hypermarket Imtiaz Super market presently has three outlets in Karachi; Bahadurabad (also known as Chota Market/Bazaar) Awami Markaz, Shahra-e-faisal Nazimabad near board office DHA Phase 1
Retail Management 4/21/2014

RETAIL FORMAT
Store Location: Imtiaz Store is situated in a high-street location with very high customer traffic, large array of retail stores in small sizes having clusters in the same product category It has an advantage with huge (surrounding) space Employee type and density: minimum qualification of the employees is matriculation. Dress code is blue shalwar kameez. Usually 4-5 employees are Retail Management 4/21/2014 working in each aisle.

Merchandise Type and Density: Very dense merchandise. It has approximately 1,000 pieces per sq ft. Huge assortment of all kind of products. Fixture Type and Density: The fixtures at Imtiaz Store include blue plastic racks that carry all items. Number of fixtures per square foot of space at Imtiaz is 40.

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Visual Type and Factors: Bright White lights have been used to: propel the customers to buy more, highlight impulse merchandise, help customers to easily inspect and select the items they want to buy.

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VISUAL MERCHANDISE AND DISPLAY

Freezers and kiosks placed outside the store. Shop displays: Live Displays (used by suppliers), Counter Displays (including bubble gums, chocolates, cigarettes lighters etc.) Proper sections have been maintained for each product category so that consumers conveniently find the products they want.

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Space Mix at Imtiaz

Sales

The selling area at Imtiaz Store Structure The back area includes the godown The 30% non-selling area also includes the aisles and the staircase that leads to the warehouse. The selling space is further divided in terms of size and location of different groups of merchandise such as staples, convenience and impulse items. The staple goods constitute about 50% of the store and are placed at the deeper end Retail Management of the store.

Circulation 10%

Back Area 20% Selling Area 70%

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Retail Space Management

The best part of Imtiaz Store is its effective space management Easy Walkway for Customers- Basic commodities like wheat, rice and other staples are kept in the deeper end of the store, which forces the customer to walk through the entire store Best technique to make customers buy stuff that is not even on their Shopping list Haji Imtiaz Khan is very critical about the space management in his store as he believes that, 80 out of 100 customers follow the silent guide that we provide them; if we don't provide the right way to walk, our sales can go down drastically.
Retail Management 4/21/2014

Impulse goods are kept at the cash counter Ice creams and some local chocolates are kept near the cash counter as it not only attracts the kids waiting at the cash counter but also catches the attention of the passers by.

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Layout / Circulation Plan

Inside Store - Placement of Product catches eyes and enables them to get exposed to entire store offering Special Lightning and Display StrategyCosmetics, Household and chocolates are strategically placed along the aisles which pulls the customer from section to section. The width of each aisle is planned according to the product type and density and the traffic pattern in that particular area. The main aisle is 5 ft wide, which then goes into 8 more aisles each for a different product category. Retail Management 4/21/2014

Two entrances

Main store - for kids and women Goes directly towards sweets section and house-hold allow traffic to move easily to destination The circulation pattern followed by Imtiaz Store is "Grid Circulation". Here the aisles and fixtures are at right angles to each other.

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Floor Space Management

To make sure that the customers frequently visit Imtiaz Store and become permanent buyers, the storeowner The employees work really hard on floor space management.
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Gross Margin on Footage

Each month merchandise selling and the customer traffic is checked per square foot in accordance with fixture type per square foot.

The Hot spots constitute the rice and staples area

Cold spots include the household items area but they are working effectively to convert it into a warm spot by adding more variety of merchandise and imported goods.
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Merchandising
a.

Hierarchy Serving more than 70,000 customers per day, Imtiaz Store caters an assortment of more than 35,000 product variations and options.
Soaps,lotions,cream s, Hair care products Dental care Beauty products largest category Confectionary category Chocolates,bicuits ,chips Food groceries, rice, noodles, etc Tea, coffee Soft drinks, juices, tetrapacks Beverages category Other categories Pharmaceutical s Sanitary and plastic items Sundry Cosmetics, garments, accessories Animals foods crockery

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b. Buying function

Open to buy (OTB) plan, which enables them to achieve strategies and benchmark standards of customer deliveries. Forward planning: forecasting sales and end of month (EOM) inventories for specific periods. They pre-plan stock a week in advance and store a week's worth of stock. OTB helps to fix the ideal amount of stock that should be available at the beginning of any month and quantify new merchandise to be received during the month. The purchase of different products is the responsibility of the buying function. The buying function of Imtiaz store is segmented into packaged goods and perishable goods. The function is structured to meet the needs of the store in managing a wide range of products: Fresh Produce, frozen foods, non food items, merchandise/apparel Retail Management 4/21/2014 or packaged grocery.

Markup / Mark down

No special markups at Imtiaz Store as they follow a low price strategy but there are often mark downs on merchandise like biscuits and sweets. Their markdowns are seasonal, like during December, when it's the wedding and Eid season.
d) Shrinkage Control this by keeping a constant manual check on all the employees as well as the customers. Their employees are given special uniforms, which they change while they arrive at work and keep their wallets and other things at the counter. Their uniform has no pockets so it lessens the chances of employee shrinkage as the employee leaves the store after changing his clothes and going through Retail Management 4/21/2014 a proper check by the mid-level management of the store.

Supply chain management

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Supply chain management

Imtiaz Store has a very good supply chain management system. It is linked with large number of suppliers not only in Pakistan but also covers few foreign countries. Its major suppliers within Pakistan are: Unilever Procter & Gamble National Foods Ashrafi Flourmills Colgate Palmolive Jodiya Bazaar Merchants
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Supply chain management

a. Warehousing Imtiaz store has a warehouse within their store, which makes it easy for them to deliver goods whenever their customers want. Normally customers demand goods in bulk.

Warehousing
ITN (Inter Transfer Notes): Once the goods are ready to move from warehouse to retailers, warehouse ITN is signed. If, there are any defective or expired items, the ITN is reversed.

As compared to other department stores like Agha's, Imtiaz Store has a large warehouse. Their employees GRN (Goods Return Notes): signs perform all the calculations and the GRN as it receives goods at their prepare all the receipts warehouse manually and then they use a computer system for calculations and storing records. Retail Management 4/21/2014

Supply chain management

Transportation Due to increased use of distribution centers by Imtiaz Store, the management of outbound transportation from distribution center to store becomes complex. That's why Imtiaz Store does weekly planning to overcome the complexity of transport system. In addition to weekly planning, they have a sophisticated routing and scheduling computer system. This system considers customer service levels, road conditions and transportation operating constraints to develop the most efficient routes possible. As Imtiaz also imports goods, they receive direct shipments from Dubai. They have contracts with reliable transportation companies. The goods are also transported in Imtiaz Store through trucks, depending upon the amount of goods.
Retail Management 4/21/2014

Supply chain management

Receiving and Checking Imtiaz Store makes payments when they receive goods and in case they do not give payment at the time of receiving goods then they set a future date of payment. Imtiaz Store has assigned certain people to check the orders manually. Their employees perform all the calculations and prepare the receipts manually and then use a computer system for calculations and storing records. Vendor Management Imtiaz Store has sophisticated vendor management. They stock a week's worth of stock at the outlet.

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Retail Marketing Strategies

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a. Brand

Imtiaz Store brand - Rice and Spices: Imtiaz Store has been popular for providing excellent quality rice under their brand named 'Ponam' rice. Besides rice, Imtiaz store has also provided spices with its brand name. It has own factories located in Karachi, in Korangi and the Super Highway, and also exports to other countries.
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b. Store positioning
Target market
Includes people from lower to upper classes. traffic on weekends, as it's filled with families who come to the store especially for their weekly grocery and other items.

Retail positioning and reputation of the firm Customer Service

positioned itself in the target market by its excellent wide assortment of merchandise. According to the owner, Imtiaz Store covers most of the customers in Tariq Road and Bahadurabad. The store is also known for its unique attribute of having a warehouse located within the store.

facility to place orders in advance, making sure that the product reaches the customers safely and quickly. According to their owner, they also deliver goods late at night to their loyal customers.

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Store Location

One of the main reasons for the success of Imtiaz Store is their location.

Located adjacent to other retail outlets like poultry shop, spices shop, thus giving the passing-by pedestrian an opportunity to buy other items.
Spacious outlets at Korangi and Awami markaz

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c. Retail Marketing Mix

Product Quality standards are well recognized. Most of their products are brought from recognized companies like Unilever Private brands are placed like rice, sugar, pulses.

Price Low pricing strategy. Their products are priced on low markups. Different prices for imported products and sell local products at reasonable rates. Offer promotional pricing on certain occasions, such as Eid, New Year etc.

Place Imtiaz Store's location targets customers from all areas of the city.

Promotion In-store Promotions on special occasions, they give free cards and gifts etc. to their customers every time when they make a purchase Website promotions, facebook promotions, weekly magazines.

People Employees are well trained and well mannered and serve the customers in an efficient way. The employer treats the employees well. They are provided with free accommodation by the management

Presentation very good fixtures; it provides a comfort to the customers by providing them with various varieties of single product under one roof. well lighted in order to make their display more prominent and visible

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E-Tailing

Official website: promotions, brands, offers. http://www.imtiazsupermar ket.com.pk/

Today Imtiaz Super Market has stepped into the digital world, just so your buying experience does not end when you leave the store.

Weekly magazine online and offline

Now Imtiaz Super Market is able to talk https://www.facebook.com/ imtiazsupermarket to you, find out what's on your mind, and let you know what it has in store for Retail Management 4/21/2014 customers.
Interactive facebook page

d. Direct Marketing

Imtiaz Store only concentrates on direct marketing through direct mail. It provides a key-differentiating factor to their customers by providing them a detailed form, which mentions all their products and their prices. The customers can easily get the form from their counter and later fill it. The items marked in the form are delivered to their homes with their bills to be paid in cash. This way, the customer feels a sense of ownership and belonging for the store.
Retail Management 4/21/2014

Research

Research is carried out at Imtiaz Store for the sake of expanding their business and to test the position of current business running.

It tells whether the business is running smoothly or not.

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Research
Quantiative survey To check the number of products taken and the feasibility of the shelf management and floor management. Helps in assessing the viability of the store by determining the concept's appeal and measures how well that translates into potential. Test the demographics of the store which includes all age sectors; mostly housewives along with their husbands and children. Qualitative research Helps them identify the most promising positions in the target area. It observes and studies the customer's shopping style and preferred ambience. It strengthens their strategies later in order to attract the Peripheral target. Observational research To observe the customer's buying patterns and style. No questionnaires are passed to them.

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Observational research findings

Price: Most of the time, customers do not look into price tags because when they come to Imtiaz Store, they know the prices are low. They are concerned about the quality.

Traffic flow: Approximately 1,200 customers pass a fixture per day and 72% of them stop to select a brand or a product.

Ease of Purchase: Customers usually find it hard to shop due to high customer traffic.

Own-label: Store brand products attract special attention.

Daily/hour: Peak days are weekends and peak timings are mostly 6:00 to 8:00 in the evening and at 10:00 in night.

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Recommendations

Focus on structure of Bahadurabad main branch to improve its cleanliness and atmosphere Ample parking space must be made available so as to facilitate the increasing number of customers Shelving at Awami markaz and main branch should be improved as mishandling affects the product quality Install an Air conditioning system at the main Retail Management 4/21/2014 branch and maintain the one at awami markaz

More cash counters should be added. Add Express counters at the main branch specially Counters closed should work atleast in the peak hours or peak days of the month to lessen the traffic and delays More employees should be hired to facilitate customers to take the trolleys to their car Inventory of items which have high sales must be increased so as to reduce customers inconvenience increase the size of the outlet of the main branch where there is too much congestion
Retail Management 4/21/2014