Megamart Complete Final 22

7/30/2019 Megamart Complete Final 22

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A PROJECT REPORT

ON

A STUDY OF MARKETING AND PRICING STRATEGY WITH

REFRENCE TO MEGAMART.

SUBMITTED TO

THE UNIVERSITY OF PUNE

FOR THE PARTIAL FULLFILLMENT OF THE DEGREE

BACHELOR OF BUSINESS ADMINISTRATION

YEAR 2010-2011

CERTIFICATE

Date: 24/03/2011


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1. INTRODUCTION


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SCOPE OF THE PROJECT


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The purpose of this project is to acquaint withmarketing and different managementfunctions. The center of this study ismarketing function as well as approach of

Mega mart towards its customers. The mainobjective behind this study is to find the salesand marketing tools of Mega mart.

This project offered an opportunity to get real-timeand firsthand experience of field work. Thisstudy also helped to gain knowledge about thedifferent departments and their working and

working of the organization as a whole.

This study provided an opportunity to get the realwork experience and also taught to deal withbusiness obstacle

And difficulties. This experience has helped toimprove my academic and business skills.

2. OBJECTIVES


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2. OBJECTIVES OF MY STUDY ARE AS FOLLOW:


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To study the working of Mega mart

To study the marketing strategy of Mega mart

To study the pricing strategy of Mega mart

To study advertisement policies of Mega mart.

To study the buying process of Mega mart.

To study the various functions of Mega mart.

3. PROJECT METHODOLOGY3. PROJECT METHODOLOGY


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3. PROJECT METHODOLOGY

Project methodology is the process of collecting theinformation and helps to find out solution tothe topic selected by the researcher.

Project methodology starts with selection of topicwhich shows the introduction of the students.

I have selected the topic of "A STUDY OFMARKETING AND PRICING STRATEGY OFMEGAMART". For preparation of projectgenerally four methods are followed:

1. Interview:

2. Questionnaire:

3. Library Work and Internet:

4. The observation method:


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Collection of Data

Primary Secondary

Internet Reference booksInformationSurveys from

customers


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4. CONCEPTS


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4.1 MARKETING

The concept of marketing has evolved from a simpleexchange transaction to a complex andcomplicated one, involving a number ofinterconnected and interrelated variables.

The earlier definitions of marketing emphasized the flowof goods from the seller to the buyer. In thistraditional sense Marketing is said to consistof such efforts as effect the transfer inownership of goods and physical distribution.

The emphasis was later shifted to an economicapproach. Economists stressed upon utilities andinterpreted marketing as a creator of time, placeand possession utilities. In the subsequentstages the emphasis was once again shifted tothe customer.

Marketing today is so basic that it can oriented beconsidered as a separate function. It is really thewhole business as seen from the point of view ofthe final result i.e. from the point of view of thecustomer.

The latest definition of marketing can be given as

Marketing is the creation and delivery of a standard ofliving to society.

The marketing philosophy has undergone a gradualthorough change since the industrial revolution.This change in the philosophy of marketing canbe compartmentalized into four stages ofmarketing. the first two are the traditionalconcept and the last two are the new concept ofmarketing.


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Product oriented marketing

Sales oriented marketing

Consumer oriented marketing

Socially oriented marketing.

In this modern age of information coupled withglobalization and increased awareness,marketing has become highly challenging and atthe same time seems to offer wider and greateropportunities, not only at the local and nationallevel but also internationally. To cope with thesemodern developments and trends, marketing canbecome more effective and result oriented withthe use of proper connectivity with the rightmarket connections, segments and people-theconsumers and now the global consumers haveaccess to everything through the net and itsportals. But marketing and advertising throughthe internet is yet to blossom to its full capacity

in India. In the mean time, a conceptualunderstanding and familiarization in thetechniques of expanding connectivity throughmass communication specially what we can asmarketing is the need of the hour.

4.2 PRICING

There are a good many variables affecting the price of aproduct namely its nature, nature of the market,cost of manufacture, cost of marketing, salespolicies and methods, channels of distributionand competitors prices. The basic price variablesrelate to: The pricing policies, terms of credit,and resale price maintenance.


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Pricing policies and strategies:

The price policies and strategies are the guidelines and

frames within which management adjusts pricingso as to match the market needs. Giving varioustypes of discounts is one of the pricing policiesused by companies to attract buyers or to meetcompetitive pressures.

Discounts:

Discount is the price difference that reduces the quotedprice so that the buyer pays much less than thequoted price. Discounts are the reductions fromthe price list given by a seller to a buyer, whoeither gives up some marketing functions orprovides the functions himself. In deciding thediscount policies the marketer has to carefullyfind out exactly which function the buyer isgiving up or providing when he gets each of the

following discounts.The need and importance of a proper pricing strategy

arises because of following reasons:

Price is essential to marketing,

Price allocates resources,

Price regulates demand,

Price is a competitive weapon,

Price is a determinant of profitability.


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5. COMPANY


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5A. ARVIND MILLS

5A.1 ENRICHING LIFESTYLES

Styles may be short lived, but for well over sevendecades Arvind has been defining and shapingmany a collection and trendsetting styles acrossthe ramps and retail outlets of the fashioncapitals of the world. Arvind is todaysynonymous with a vast range of lifestylesproducts - be it fabrics or brands. Time and againwe have been called to produce some of the

finest fabrics and exacting dresses for some of


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the world's most quality conscious brands - whileevolving our own extensive brand portfolio.

Arvind Mills is India's largest integrated textile company

and operates across the entire value chain fromdesign to fabric to brands. Arvind was the firstcompany in India to bring international brandswhen they brought Arrow to India. Arvind nowhas licensing relationships with manyinternational brands like Arrow, GANT US Polo &Cherokee. JV's with VF Corporation with brandportfolio of Lee, Wrangler, Nautica, Jansport,Kipling, and Hero by Wrangler & Lee Riders,Tommy Hilfiger and most recently a JV withDiesel.

In addition Arvind also owns a number of successfulIndian brands: Flying Machine, Newport andExcalibur among others. Arvind also own &operates India's largest 120 outlet strong valueretail chain under the name 'Megamart'.

5A.2 The Evolution1930 was a year the world suffered a traumatic

depression. Companies across the globe beganclosing down. Mahatma Gandhi at this timechampioned the Swadeshi Movement and at hiscall, people from all India began boycotting fineand superfine fabrics, which had so far beenimported from England. In the midst of this

depression one family saw opportunity. TheLalbhais exploited this opportunity by studying &understanding the demand for fine and superfinefabrics. And any Indian company that met thisdemand would surely prosper. The threebrothers, Kasturbhai, Narottambhai andChimanbhai decided to put up a mill to producethis superfine fabric. Next they looked around forstate-of-the-art machinery that could producesuch high quality fabric. Their search ended inEngland. The best technology of that time was


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acquired at a most attractive price. And acompany called Arvind Limited was born.

Arvind Limited started with a share capital of Rs

2,525,000 ($55,000) in the year 1931. With theaim of manufacturing the high-end superfinefabrics Arvind invested in very sophisticatedtechnology. With 52,560 ring spindles, 2552doubling spindles and 1122 looms it was one ofthe few companies in those days to start alongwith spinning and weaving facilities in additionto full-fledged facilities for dyeing, bleaching,finishing and mercerizing. The sales in the year1934, three years after establishment were Rs45.76 lakh and profits were Rs 2.82 lakh.Steadily producing high quality fabrics, yearafter year, Arvind took its place amongst theforemost textile units in the country.

The national focus paved way for international focusand Arvinds markets shifted from domestic toglobal, a market that expected and acceptedonly quality goods in 1987-88.

Year 2005 was a watershed year for textiles. With themuliti-fiber agreement getting phased out andthe disbanding of quotas, international textiletrade was poised for a quantum leap. In thedomestic market too, the rationalizing of thecenvat chain and the growth of the organizedretail industry was likely to make textiles andapparel see an explosive growth.

Arvind has carved out an aggressive strategy toverticalize its current operations by setting upworld-scale garmenting facilities and offering aone-stop shop service, by offering garmentpackages to its international and domesticcustomers.

5A.3 POLICY


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At Arvind, it is firmly believed that a successfulcompany must play an active role in thedevelopment of the society from which itsprings. Besides pursuing its business goals, it

should also be responsible corporate citizen. It isbecause of these beliefs that Arvind is always onthe forefront of extending a helping hand for theneedy, downtrodden and for the society at large.

Arvind has always been actively involved in theeducational institution, hospitals and researchinstitutions of Ahmedabad, its hometown. It co-pioneered the world renowned Indian Institute ofManagement, Ahmedabad (IIMA), and helped setup the Ahmedabad Textile Industry ResearchAssociation (ATIRA), and The Kasturbhai LalbhaiTextile Training Center to develop and enhancethe skills of textile workers. The NarottambhaiLalbhai Rural Development Fund and The LalbhaiGroup Rural Development Fund where foundedto undertake special programs for theeconomically deprived. It also assists the nearbyvillages, through nutritional programs, foodcamps and the harnessing of solar energy.

5B. MEGAMART

The retail space is buzzing, and so its time for somereforms in traditional retailing concepts.Megamart is one of the Retailing concepts of

modern Business world. Arvind mills planned toenter in retail market with an objective topresent across the entire spectrum - value retail,to premium retail to luxury retail. Thus with allplans they launched Megamart which is theirfirst leg of retail expansion.

Megamart, an emerging value retailing and the retail

arm of Indias largest integrated textilemanufacturer and a leading branded apparel &
http://www.infibeam.com/Apparel/http://www.infibeam.com/Apparel/


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retailer is launched by Arvind mills limited on 14DEC 1994 at Maladevapura, Bengluru. From thanMegamart now have 120 stores all around Indiawithin 71 cities.

A Pioneer in the value retail business, Megamart comeswith a rich Arvind Heritage, a name held in highesteem among India's fashion and retail circles.Over the last 15 years Megamart has emerged asa strong chain of 120 stores across 71citiesoffering many Big Brands like Arrow, Lee,Wrangler, Flying Machine, Ruggers,

Excalibur,Cherokee etc at big Discounts.Its profitfigures have become the industry benchmark.

Megamart a chain of retailing stores launched way backhas successfully grown into a full servicemarketing & research agency noted for itsflexible approach and quick response to clientrequirements. Megamart is a companycommitted to serving and addressing the needs

of our customers in the most professionalmanner possible. Our professionalism stemsfrom our team of highly qualified staff which hasthe right blend of a strong academic backgroundcoupled with an equally powerful wealth ofpractical experience. Together we are dedicatedto satisfying clients' needs.

Megamart plans to establish 500 small and large formatstores across the country - out of which 20 to 25will be Megamart Outlet Centres in top 20 cities -over the next 3 to 4 years at an investment ofabout US$ 100 million

Megamart store will be one of the largest value malls inthe country. Keeping in mind Indias valueconscious and discerning consumers Megamart ishappy to dedicate their third Outlet Centre to thepeople of Bangalore. Megamarts already have 23

stores in Bangalore and 120 stores across the


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country (with an area of 2,000 to 4,000 sq ft)

Megamart also has a very unique concept called TheMarketplace. At the Marketplace the consumeris sure to find the best deals and the cheapestbranded products and accessories in the city.

Aimed at bringing together a great combinationof international shopping experience at valueprices along with ambiences at par with some ofthe best retail chains of the world, the MegamartOutlet Centre is all set to be a complete delightfor its customers.

6. SECTORS

Megamart is divided in two sectors:

Megamart outlet center ( mall )

Megamart stores

Both having same objective of retailing

Megamart outlet center ( mall ) :

Megamart outlet center is a mall like concept whichincludes many things like men women and kidswear, accessories, luggage, footwear, mobiles,food courts, entertainment centers, play station.Etc

With all men & women wear consisting of more than 150brands.

Megamart outlet centers up till date have beenintroduced only in three cities viz. Chennai,Bangalore and Pune.

Megamart has launched its outlet centers in 3 cities viz.Chennai, Bangalore and Pune, whereas it is

planning to launch around 10 such outlet centers


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on different cities of India by the end ofNovember 2009.

Megamart stores :

Megamart stores are nothing but just a store smallenough in comparison with Megamart outletcenter. Megamart stores include items likeclothing for both men and women, clothingaccessories like wallets, socks, belts etc,mobiles, simcards etc.

Megamart stores have around 30 40 brands and aresmall in comparision with Megamart outletcenters.

Megamart stores have been introduced in over 42 citiesof India with around 120 stores.

MEGAMART OUTLET CENTRE

Arvind Mills, a pioneer in value-based retail space,launched the country's first savings mall'Megamart Outlet Centre' at chennai, and wouldbe opening 30 such large outlets and 200 smalloutlets to achieve a targeted turnover of onebillion Dollars by 2012, With outlet centresalready opened in Bangalore and Pune.

The Chennai store is the largest value mall in the city.

Keeping in mind Chennai's value conscious anddiscerning consumer MEGAMART is very happy todedicate their first outlet centre store to thepeople of Chennai. MEGAMART already have 12stores in Tamil Nadu, of which seven ofMegamart stores are in Chennai.

Megama


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rt Outlet Centre will offer fantastic value across a rangeof categories across the year. And that too withinternational standard shopping experience andservice. The store has been designed by JHP, an

award winning design consultancy firm fromLondon

Over a period of time Megamart was is discussion withseveral of the top brands in the country and ishappy to announce that over 130 brands havepartnered with it.

The Megamart Outlet Centre will house a gamut ofcategories including men women and kids wear,

accessories, luggage, footwear etc. from leadingbrands such as Allen Solly, Addidas, Arrow,Citizen, Color Plus, Dockers, Titan, Giodorno,Indian Terrain, Lee, Levis, LouisPhillipe, Nike,Park Avenue, Reebok, Scullers, Van Heusen,Wrangler and several other brands will beavailable at the Megamart Outlet Centre, all ofwhich will be available at unbelievable valueprices.

Apart from these, the Outlet Centre also has a multi-cuisine food court St. March, Caf Coffee Day, aMarketplace and several other value-addedservices like a kids play area, a mama's corner,services for utility payments among manyothers.

Aimed at bringing together a great combination ofinternational shopping experience at value pricesalong with ambiences at par with some of thebest retail chains of the world, the MegamartOutlet Centre is set to prove itself to bea complete delight for the Chennai customers.

MEGAMART STORES NASHIK

Megamart is a pioneer in value retailing and the retail

arm of Indias largest integrated textilemanufacturer and a leading branded apparel &


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retailer. Megamart belongs to Arvind mills Ltd.Before coming up with an outlet in NASHIK theyhave established themselves in the many otherIndian cities, namely, Chennai, Pune, Bangalore,

Chandigarh, Aurangabad, Ghaziabad, Jaipur,Bhopal etc. Megamart has a network of 120Megamart stores spread across 71 cities in India.

The store with 8 employees is really big! Spread across2 floors with an area of 3,200 sq ft of retailspace. This outlet certainly has the widest rangeof categories including men, women and kidswear, accessories, electronics, mobiles, simcardsand lot more. I learned from the store info guidethat the premises has over 35 top Indian andinternational brands to delight the customers.Some of the prominent brands I could spot in thisoutlet include like Allen Solly, Arrow, Color Plus,Dockers, Ruggers, Auburn hills, Lee, Levis, LouisPhillipe, Park Avenue, Excalibur, Van Heusen,Wrangler, Flying machine, Newport and manymore international brands with Karigari andCherokee introduced recently at unbelievableprices and offers. As the mall has its strategy,they offer mega discounts for all festivals andthrough out the year. These discounts arecertainly crazy and goes on from offers like buy 1get 1 free on most of the jeans wear to buy 5 get5 free on branded clothes of Newport, flyingmachine etc.

With over 35 of the best brands on fabulous discounts,

the new Megamart Outlet Centre is all set tocompletely delight the trendy and valueconscious Indian customers.

Megamart is also running fantastic festival offers acrossthe week and other fabulous purchase basedfreebies like a free Cherokee watch, an attractiveRuggers travel bag and also a chance to win a

Maruti Swift.


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7. MEGAMART PRODUCTS:

SPECIALITIES:

MEN COLLECTION:

Silk Collection,

Formal ShirtCollection,

T-shirts,

Jeans,
http://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?location=All%20Cities&style=Formalhttp://www.infibeam.com/Apparel/search?location=All%20Cities&style=Formalhttp://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?location=All%20Cities&style=Formalhttp://www.infibeam.com/Apparel/search?location=All%20Cities&style=Formal


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Track suits,

Kurtas,

Jackets,

Sweaters

Apparels andAccessoriesCollection :

Wallets,

Socks,

Handkerchiefs,

Perfumes.

WOMEN COLLECTION:

Fashion Collection:

Jeans,

Tops,

T-shirts,

Track suits,

TraditionalCollection:

Chaniya Choli

Collection,

Dress MaterialCollection,

Salwar KameezCollection,

SAREES:

Latest SareeCollection

Fashion Saree

CollectionSilk Saree

Collection

Georgette SareeCollection

Chiffon SareeCollection

Crepe SareeCollection

Apparels andAccessoriesCollection:

Wallets,

Socks,

Handkerchiefs,

Cosmetics,

Perfumes.

Other items:

Bed sheets,

Pillow,

Pillow covers

.
http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?style=Traditionalhttp://www.infibeam.com/Apparel/search?style=Traditionalhttp://www.infibeam.com/Apparel/search?bodyType=Chaniya%20Cholihttp://www.infibeam.com/Apparel/search?bodyType=Chaniya%20Cholihttp://www.infibeam.com/Apparel/search?bodyType=Dress%20Materialhttp://www.infibeam.com/Apparel/search?bodyType=Dress%20Materialhttp://www.infibeam.com/Apparel/search?bodyType=Salwar%20Kameezhttp://www.infibeam.com/Apparel/search?bodyType=Salwar%20Kameezhttp://www.infibeam.com/Apparel/search?bodyType=Sareehttp://www.infibeam.com/Apparel/search?bodyType=Sareehttp://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?fabric=Georgettehttp://www.infibeam.com/Apparel/search?fabric=Georgettehttp://www.infibeam.com/Apparel/search?fabric=Chiffonhttp://www.infibeam.com/Apparel/search?fabric=Chiffonhttp://www.infibeam.com/Apparel/search?fabric=Crepehttp://www.infibeam.com/Apparel/search?fabric=Crepehttp://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?style=Traditionalhttp://www.infibeam.com/Apparel/search?style=Traditionalhttp://www.infibeam.com/Apparel/search?bodyType=Chaniya%20Cholihttp://www.infibeam.com/Apparel/search?bodyType=Chaniya%20Cholihttp://www.infibeam.com/Apparel/search?bodyType=Dress%20Materialhttp://www.infibeam.com/Apparel/search?bodyType=Dress%20Materialhttp://www.infibeam.com/Apparel/search?bodyType=Salwar%20Kameezhttp://www.infibeam.com/Apparel/search?bodyType=Salwar%20Kameezhttp://www.infibeam.com/Apparel/search?bodyType=Sareehttp://www.infibeam.com/Apparel/search?bodyType=Sareehttp://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?style=Fashionhttp://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?fabric=Silkhttp://www.infibeam.com/Apparel/search?fabric=Georgettehttp://www.infibeam.com/Apparel/search?fabric=Georgettehttp://www.infibeam.com/Apparel/search?fabric=Chiffonhttp://www.infibeam.com/Apparel/search?fabric=Chiffonhttp://www.infibeam.com/Apparel/search?fabric=Crepehttp://www.infibeam.com/Apparel/search?fabric=Crepehttp://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/http://www.infibeam.com/Apparel_Accessories/


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BRANDS

Arvind is amongst a few organizationsworldwide with a portfolio of brands

that are distinctive and relevantacross diverse consumers. At Arvind,brands work across multiplechannels, price points and consumersegments.

Own Brands

MainstreamExca

liburFlyingMachinePopularRuff

&TuffNewPortUniversity

Licensed

Brands

Bridge toLuxu

ryGan

t,U.S.A.1949HartShaffnerMar

xPremiumUSPASansaBeltIzod

PierCardinParis

Arrow

PopularCherokee

Joint VentureBrands

Bridge toLuxuryTommy

Hilfiger

Nautica

PremiumLee

Wrangler

PopularWrangler

Hero

Riders


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8. MARKETING STRATEGY:


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8.1 PUBLICITY:

Publicity is the need of the hour. Publicity isconsidered as one of the mostimportant factor for making anycompany highlighted in the minds ofgeneral public. Publicity is a meansof promoting the mass market & issimilar to advertising, except that, it

is free e.g. News release,Photographs & Feature Stories.

Every company tries to gain momentum bydoing some publicity for itself whichpositively helps to increase thebusiness for company.

Megamart also many a times does somepublicity for launching any of itsoutlet centers/stores to highlight itin the minds of general public.

Megamart has launched its Pune outletcenter with the beautiful hands of ExMiss India Neha dhupia.

The new look store; offers customers abigger and better value shoppingexperience. With over 150 bestbrands spread across 55,000 sq ft ofretail space, Megamart will delightits customers with its proposition ofmega discounts throughout the year.

Ms. Dhupia also flagged off the MegaSavings bus which will ply at all


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important routes around Pune topick up and drop customers wantingto shop at the Outlet resulting insignificant savings in time and fuel

costs for customers. This is for thefirst time that Megamart has startedthis unique initiative for the benefitof its customers.


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Megamart also uses other formats ofpublicity like:

Publicity through window display,

Outdoor publicity,

Publicity literature through use of circulars,coupons, folders etc.

Publicity through interior display.

Sponsorships.

Smart cards.

8.2 ADVERTISEMENT STRATEGY:

Advertising is defined as Any paid form ofnon-personal presentation andpromotion of ideas, goods andservices by an identified sponsor.

Advertising is the powerful element of thepromotion mix. Advertising though

impersonal in character createsprofound influence in persuading


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prospects to become customers.Essentially advertising meansspreading of information.

Megamart is very concerned about itsadvertisement policies. It properlyplans its advertisement policies andrevises it time to time according tothe conditions and need of market.Megamarts market share is prettyhigh in south regions like Karnataka,Tamilnadu etc whereas it is less incentral and northern states of Indiain relation to southern states, soMegamart spends more onadvertisement in southern parts ascompare to other parts throughdifferent means of advertisement.

The various means of advertisement usedby Megamart are as follows:

Television advertisement:

Megamart uses television format ofadvertisement mostly in southernstates and selected parts of the

country as they are the most costlyform of advertisement. Megamartgives the advertisement of its outletcenter/stores mainly in localtelevision channels or regionalchannels to catch its customers.However Megamart does not muchconcentrates on televisionadvertisement; it uses it only for alimited range.


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Newspaper advertisement:

Megamart uses newspaper format ofadvertisement but that too on alimited scope with equivalentamount with that of Telivisionadvertisement. Megamart presentsits advertisement on newspapersmainly in southern states and fewimportant other cities around India.

As newspaper advertisement areless expensive than that of television they are more affordable.

Radio advertisement:

Radio advertisements are also one of thekind of advertisement Megamart

concentrates on. They give radioadvertisements mainly in southernparts of the country and a few timesin important cities but on a limitednote.


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010

20

30

40

50

6070

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North


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SMS service:

Megamart concentrates highly on this

format of advertisement. SMSservices are one of the cheapestforms of advertisement andultimately the most effective.Megamart through SMS directlyreaches to every customer.Megamart through SMS gives itscustomers updates about newarrivals, discounts, season sale,

bumper offer etc.

SMS department of Megamart is located inBangalore and all the SMS aresended from Bangalore throughcomputerized system. Whenever acustomer arrives in Megamart theauthorities of Megamart takeshis/her details, suggestions and

contact number and then they keepin touch with him through SMSservices, this facility thus pleasesevery one. Megamart thus uses thisadvertisement form on a large scale.

Carry bags:

Carry bags are the cheapest and one of themost effective forms of advertisement. Almost everyclothing company/stores uses this

format of advertisement and same isthe case with Megamart. Whenever


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any purchase is made in stores it ismandatory on the part of theauthorities of stores to give thecustomer a polythene/carry bags to

carry the articles home. So manycloth stores exploit this opportunityby providing customers withattractive polythene/carry bags withthe name and logo of theirshop/company so that it makes amark on the minds of customersabout the shop/company. Megamartalso provides its customers with

attractive big size red bags withMegamart as the name and itslogo MM on it.

SMART ONE


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- Indias first saving and earning program.

Megamart has introduced the concept ofsmart one - Indias first saving and

earning program, as a membershipprogram to increase the sales bytargeting those customers who shopvery often.

This unique rewards program helps acustomer to earn points each timehe shops at Megamart. Thats notall; the customer who avails themembership of Megamart by the

smart one program becomes the firstto know about the special offers,promos, previews and many otherexciting shopping opportunities atMegamart. This program keeps trackof points as well as the customerssaving through the SMARTONECARD. This card can be used by theentire family of the customer.

BENEFITS OF SMARTONE CARD:

Earn points on every purchase,

Exclusive preview of new introductions

Smart deals and offers

Exciting gifts on reaching milestones.

SmartOne

Indias first shopping and saving card. Aunique loyalty program that helpsyou saves more as you shop.


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9. FUNCTIONS OF MEGAMART:


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Following is a briefed introduction of thespecialized services offered byMegamart

Sales function:

Sales are undoubtly the reason behindevery business. So sales function isconsidered as the most importantfunction for every business. Theauthorities of Megamart are very

concerned about the sales ofMegamart. Sales function is given


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utmost priority in Megamart and it isnever considerd as secondaryfunction. The employees inMegamart are trained properly how

to deal with different customers withan impressive attitude. The displayof all types of cloth articles are setup in an attractive manner so that itcatches the eyes of customersimmediately. The authorities andemployees of Megamart put a lot ofefforts to increase and maintain thesales of their business.

Exchange function:

Exchange function can be said assupporting function to salesfunction. Exchange function is justabout exchanging the clothes ofcustomers if not liked by them. Every

cloth stores has to play the functionof exchanging clothes and Megamartis no exception, infact Megamartcompletes this function veryeffectively.

Finance function:

This function is to be performed in everybusiness weather small or big,national or International etc.Maintenance of all financialhappenings of business is veryimportant. The authorities ofMegamart complete the work offinancial maintenance of theirbusiness with accuracy. The

authorities of Megamart work hardfor the preparation and maintenance


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of all kinds of financial statements,balanc sheets, accounting/auditreports etc as & when required.

Discounting function:Megamart is directly controlled by Arvind

mills ltd in all over India and theyhave appointed managers for everyoutlet center/stores for itsmanagement and maintenance.Though Megamarts are handledaccording to the specifications ofArvind mills ltd the branch manager

of every outlet center/stores hassome rights which he can utilize if hefeels that it is going to benefit thecompany even though if they are notassigned by Arvind mills ltd.

E.g. If Megamart is running an offer bygiving discount of flat 40% on aparticular brand of jeans and acustomer comes and buys 4 pairs ofjeans but demands 5 more percentdiscount on each pair of jeans; Inthis case if the manager feels thatthere is no problem in increasingdiscount and the company is notgoing to suffer any loss he can thandefiantly adjust that 5 more percentof discount for the customer to keephim happy unless the companysuffer any loss. On other hand if byproviding customer with 5 morepercent of Discount Company suffersa loss than the manager does notadds more discount to the customer


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9. STRENGTHS OF MEGAMART

Strengths of Megamart are as follows:

Huge satisfied and loyal customer base.

Experienced and qualified work force.

Team work.

Quality service.

Professional management.

Research

Megamart success in marketing research

stems from a number of factors.Most importantly it has access to ahighly qualified and experiencedteam of trained project managers,moderators, field managers,interviewers and recruiters. Itsclients are given the satisfaction ofhighly professional and insightfulstudies that are handled in complete

confidence.


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. As Megamart predicted, their initiativewas met with enthusiasm fromIndian consumers and producers andhas experienced great prosperity

ever since its introduction inDecember of 1994 where productsales have noticeably increased.

On the one hand, MEGAMART has been ableto reach out to a large segment ofIndian consumers by giving them anextremely convenient service. Thisconvenience can be attributed to thefeatures that we offer as a part ofour service. First and foremost, weoffer a wide range of top qualityproducts Secondly, at highdiscounted prices, where many ofthe items available are exclusive toMEGA MART.

Initially, Megamart was a unique method ofselling and promoting products of

Arvind mills ltd for hundred ofconsumers in a highly competitiveretail market.

10. COMPETITION


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In modern business world two factors are

always present in every kind ofbusiness.

Risk

Competition

Risk factor includes all about the amount ofinvestment done, the stock storedetc.


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Competition is also an important part of riskbut in a different way.

MEGAMART also faces competition fromother originations.

Arvind mills ltd. Supply its brands in twosectors for selling purpose.

MEGAMART outlet counters/stores.

EXCLUSIVE Showrooms franchisee takenby different people.

Now the formula of Megamart outletcenter/stores marketing strategy isto give high discounts throughoutthe year on every brand.

Whereas EXCLUSIVE Showrooms never givepriority to discounts on these itemsbecause:

They dont have discount scheme as therepart of marketing strategy.

They dont have high margins so that theycan give high discount.

EXCLUSIVE Showrooms do give discount butonly twice a year in the months ofaround June July & Feb.-Marchwhen they want to clear the seasonstock.


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Now the relation and competition betweenMEGAMART outlet center/stores andEXCLUSIVE Showroom is that bothsectors keep every brand of Arvind

Mills Ltd from which one give highdiscount on every article throughoutthe year and the other sector givesvery limited discounts that too in theend of season.

In this case any customer would nodoubtlyprefer to by cloths from MEGAMART

outlet center/stores because of highdiscount and no one would prefer toby from EXCLUSIVE Showrooms, butit is not always applicable because offollowing two reasons:

Fashion/Stock difference:

Arvind Mills Ltd. Manufactures garments forboth MEGAMART and EXCLUSIVEShowrooms but in different manner.Arvind Mills Ltd. Manufacturesdifferent garments for EXCLUSIVEShowrooms with different fashiontrend and different for MEGAMART

with different fashion trend.

As also 20% of stock required byMEGAMART is provided byEXCLUSIVE Showrooms which isunsold garments at the end ofseason.


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This factor makes an impact on customersmentality.

It then forces a person to either go for thefashion trend of MEGAMART outletcenter/stores or for the fashion ofEXCLUSIVE Showroom.

High class status:

Many people of high class have adifferent kind of mentality: a uniquementality of status. They feel a bituncomfortable to buy garments fromMEGAMART outlet center/storesbecause of high discounts and theyfeel comfortable to buy garmentsfrom EXCLUSIVE Showroom because

there are no discounts.

These two factors show the kind ofrelationship in competition whichMEGAMART shares with EXCLUSIVEShowrooms competitors


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11. SECRET OF HIGH DISCOUNT:

Megamart has a distinct identity for its highdiscounts.

Every customer when enters Megamartstores for first time just becomessurprised by looking to the kind ofdiscount Megamart offers on everyarticle they keep. Every one question

the authority of Megamart that howthey afford to give such a highdiscounts on every article they have.

There are three reasons behind the secretof high discounts by Megamart on allits articles which are as follows:

Manufacturing by company itself,


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Export import procedure for internationalbrands,

Unsold stocks of exclusive showrooms.

Manufacturing by company itself:

As per the title suggests the main reasonbehind Megamart affording to givesuch a high discount on all clothingarticles it offers is home production.Megamart is owned and managed byArvind mills ltd. Arvind mills ltd doesthe work of manufacturing all

clothing of each and every domesticbrand it sells either throughexclusive showrooms (Franchises) orMegamart (owned by itself).

Now if a company itself manufactures andsells articles it will defiantly affordto give discount more than itscompetitors who do not manufacturearticles on their own.

Export import procedure for internationalbrands:

Arvind mills ltd deals with both domestic aswell as international brands. It has avery important role to play in

bringing and selling internationalbrands in India. Arvind mills ltd itselfmanufactures brands like Karigari,Indian terrain, Newport etc on itsown in its Ahmedabad and Bangaloreplants. Whereas it provide rawmaterials to its international brandslike Lee, Wrangler, Arrow etc andbrings finished articles of thesebrands like Jeans, Shirts etc in Indiato sell in its outlets.


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These international brands are also sold inexclusive showrooms of thesebrands through Franchises but asthese brands are provided raw

material by Arvind mills ltd they getrelatively high margin than otherfranchises and showrooms.

Unsold stocks of exclusive showrooms:

There are two ways through which clothesreaches to Megamart showrooms for

its selling purpose.

Through factories of Arvind mills ltd:

Clothes manufactured in the factories aredirectly supplied to Megamart outletcenters/stores for its sellingpurpose. Factories fulfill almost 80%of stock required by Megamart forits selling purpose.

Through exclusive showrooms:

Exclusive showrooms/Franchises who keepbrands of Arvind mills ltd for its salealways have some stock left at theend of season. These stocks ofclothes are shifted to Megamartoutlet centers/stores all over India

where ever it is needed.Thus the surplus unsold stocks of exclusive

showrooms are thus shifted toMegamarts where they are sold onhigh discounts so that they do notbecome much outdated so that noone buys it. These exclusiveshowrooms fulfill around 20% ofstock requirement of Megamart.


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All these factors are the reason behind thehuge discounts of Megamart.


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12. DATA ANALYSIS


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Information from Megamart stores, Nashik.

Distribution of sale of various brands oftrousers in Megamart, Nashik.

56%

16%

15%

13%

Percentage sale of Trousers

ruggers

cherokee

elitus

others

Trousers are one of the largest selling itemsin Megamart, Nashik.

Ruggers lead the race here followed byCherokee and than Elitus.

Others here include brands like Lee,Wrangler, Colt etc

Distribution of sale of various particulars ofgarments in Megamart, Nashik.


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From the above pie chart we can find outthat pants cover the highest portionof total sales in mens garment,pants here consist of trousers 20%and jeans 18%

38%

35%

21%

6%

percentage sale of men garments

pants

formal shirts

t-shirts

accessories


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Pants are followed by formal shirts and t-shirts, accessories come last inmens department.

Accessories here are consisted of belts,caps, socks, handkerchiefs etc.

Information from surveys from customers


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25%

5%

45%

25%

What is unique feature about Megamart?

Price

Quality

Promotional offers

Brand availibilities

From the above pie chart we can summarizethat maximum customer of Megamart feel that the promotionaloffers made by Megamart is itsunique feature (45%), than followedby price and Brand availability (both25%) and only a few feel quality as

its unique feature (5%).


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From the above graph we can study thatmany customers are attracted by thein store layout of Megamart, Nashikas 80% of customers have given it 5or above 5 marks.


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From the above pie chart we can study thatmaximum customers are attractedby various promotional

activities of Megamart, Nashik as it consistof 70%. Whereas only a fewcustomers (30%) are not muchattracted by the promotional

activities of Megamart stores,Nashik.


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13. OBSERVATIONS AND FINDINGS


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13. OBJECTIVES AND FUNCTIONS

Megamart has unique marketing strategy toattract various customers.

Megamart is quite serious about measuringcustomer satisfaction regularly.

Megamart has a varied range of products tocater to various class of class ofcustomers.

The pricing policy is very unique and new tothe market.

Megamart has a very good customerrelationship management program.

There feedback programs from customerhelps them to improve their service.

Megamart has captured a good share ofmarket with various brands onboard


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14.1 RECOMMENDATONS

Megamart needs to work more on theirstock.

They should maintain a range of variousproducts.

They should primarily focus on youngstersand maintain latest fashionablegarments.

The womens collection needs to beupgraded as there is very little stockof collection.


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14.2 CONCLUSION

CONCLUSION BASED ON PROJECT WORK

By this project study, we can conclude thatin todays competitive worldcustomer satisfaction is the key tosuccess and this success can beachieved and maintained throughproper marketing strategy. Becausethe ultimate aim of marketing is toincrease sales.

CONCLUSION BASED ON LEARNINGBENEFITS

Marketing and promotional activities arethe most important tools to sufficethe purpose of customersatisfaction, as also inputs areneeded in terms of quality i.e. aftersales service etc. also to satisfy thecustomer it is not only the

responsibility of marketing or salesdepartment, but a joint and


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collective effort of all thedepartments is needed. Morecustomizedquality service is thestepping stone for good customer

relationship management.

Megamart from its incorporation had givenutmost importance to customersatisfaction not only through itsmarketing and pricing strategy butalso through its services and thatswhy today Megamart enjoys theloyalty of huge satisfied customerbase. Megamart has became abenchmark for others in terms ofpersonalized attention i.e. customercare and quality service.

15. BIBLIOGRAPHY


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15. BIBLIOGRAPHY


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To obtain more information regarding thepresent study and to substantiate itwith theoretical proof, the followingreferences were made.

Text book on Marketing Management, ICMRPublication Hyderabad.

Principles of marketing, Dr. Shaila bootwala

Principles of management.

Web sites Visited

www.megamartstores.com

www.arvindmills.com

www.google.com

QUESTIONNAIRE:

Name :

Age :

Sex :

Occupation :


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Where you aware of Megamart beforevisiting it?

Yes No

From where would you like to buy brandedapparels in Nashik?

Megamart

B. The loot

Franchises/Flagship storesD. others

What do you think is the unique feature ofMegamart?

A. PriceB. Quality

C. Brand availabilityD. Promotional offers

How would you rank the in store layout ofMegamart? (out of 10)

>2 ; 2 5 ; 5 8; 8 10

Are you happy with the staff services?


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YesNo

What do you think about the prices of items

available in Megamart?

HighAverage

Low

Are you attracted towards promotionalactivities of Megamart?

YesNo

Are you attracted by the discount schemes

of Megamart?

YesNo

What are your expectations from Megamart

regarding price?


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Discounts throughout the year

Steady low prices than competitors

Reasonable prices throughout the year andhigh discounts duringfestivals/occasions

High discounts on heavy purchases

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